In addition, in the article that accompanies the tweet, it can also be read that “it is the policy of the US government that all federal reserve note designs continue to be legal tendereither legally valid for payments, regardless of when they were issued. This policy includes all denominations of Federal Reserve Notesfrom 1914 to the present day.
Impact on the Argentine market
The currency instability of Argentina is not a novelty, so the strategy of protect yourself by hoarding dollars neither is it. This means that in the local market there are several generations of banknotes in circulation. In this way, the famous “small face” bills appear, which are usually disdained.
In the Argentine market, the old ticket issues American are usually rejected or accepted at discount. But as indicated by the tweet, the entity makes no difference. Within this framework, the communiqué clarifies that “the Board of lThe Federal Reserve recognizes that in some countries there may be different exchange rates or foreign currency acceptance policies, but the markets, not the US government, control these rates.”
And this phenomenon, which has been taking place in Argentina for several years, cause problems in the banks. For example, during the 2022 World Cup in Qatar, stores in the host country only accepted the most modern banknotes, those with a “big face” and a blue security band. In that way, banks continue to stock banknotes that customers do not want and? even in some cases they are not valid.
Source: Ambito
