everyday some coins and notes get old and need to be taken out of circulation (i imagine). how does a central bank (?) manage this flow of new and old cash? how do they know how much new cash is needed? how do they take some out and put new in? what do they do with old money that cant be used?
i was curious 🤷🏼♂️ happy for any and all feedback.
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It is actually bought and sold like any other product. The normal process is that retail banks that take in old cash, collect it and then basically exchange the old cash for new cash from the Treasury or Mint. (not the Central Bank).
Alternatively, if the banks need paper notes and coins, they just buy it (from the same place). Basically exchange electronic money for physical money.
The Mint/Treasury then burns or disposes the old notes.
It is actually bought and sold like any other product. The normal process is that retail banks that take in old cash, collect it and then basically exchange the old cash for new cash from the Treasury or Mint. (not the Central Bank).
Alternatively, if the banks need paper notes and coins, they just buy it (from the same place). Basically exchange electronic money for physical money.
The Mint/Treasury then burns or disposes the old notes.
The Mint sends out a notice that you can physically exchange banknotes of the old currency for an equivalent value of the new currency at a bank.
It then destroys banknotes of the old currency.
The Mint also sends out a notice after an expiration date, banknotes of the old currency will be no longer enforced as being accepted as legal tender.
The Mint sends out a notice that you can physically exchange banknotes of the old currency for an equivalent value of the new currency at a bank.
It then destroys banknotes of the old currency.
The Mint also sends out a notice after an expiration date, banknotes of the old currency will be no longer enforced as being accepted as legal tender.
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