13 December 2010

C-Notes As An Export Commodity

Hundred dollar bills aren't widely used in ordinary commerce in the United States. Mostly, they are used abroad in places where foreign currencies don't have as much credibility.

In 2001 the Federal Reserve estimated that 90 percent of the $100 bills ordered by the Federal Reserve (which accounts for the overwhelming majority of C-notes ordered nationwide) were paid out to foreign banks "to satisfy foreign demand." The overseas share of $100 bills has slackened a little in the new century relative to domestic demand—probably because the C-note is becoming more popular with illegal immigrants here—but today 65 percent of all Benjamins are in foreign hands.

Large denomination Euro notes, such as the 500 Euro note, however, are starting to eat in to the American one hundred dollar bill's share of currency usage in the often illicit markets where large denomination currency is used. The five hundred dollar bill hasn't been printed since 1969.


Michael Malak said...

Large notes were last printed in 1945. 1969 is when they were last distributed.

Dave Barnes said...

Let's get Woodrow Wilson back into the game.