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posted by martyb on Friday March 01 2019, @12:43PM   Printer-friendly
from the think-global-act-local dept.

The amount of $100 bills in circulation is surging. And it's leaving some economists scratching their heads.

The number of outstanding U.S. $100 bills has doubled since the financial crisis, with more than 12 billion of them across the world, according to the latest data from the Federal Reserve. C-notes have passed $1 bills in circulation, Deutsche Bank chief international economist Torsten Slok said in a note to clients this week.

[...] "By eliminating high denomination, high value notes we would make life harder for those pursuing tax evasion, financial crime, terrorist finance and corruption," [former Standard Chartered bank chief executive Peter] Sands wrote.

The global illicit money flows were "staggering" and fuel crimes from drug trafficking and human smuggling to theft and fraud, Sands said. He estimated that depending on the country, tax evasion robs the public sector of anywhere between 6 percent and 70 percent of what authorities estimate they should be collecting. And despite "huge investments in transaction surveillance systems, and intelligence, less than 1 percent of illicit financial flows are seized.

[...] "The Federal Reserve and Treasury make 99 dollars for every $100 dollar bill they print and sell offshore," Colas said. "There's a natural desire to keep printing these things — the U.S. government makes a lot of money selling them."

https://www.cnbc.com/2019/02/27/theres-been-a-mysterious-surge-in-100-bills-in-circulation-possibly-linked-to-global-corruption.html

Superbills?
https://en.m.wikipedia.org/wiki/Superdollar


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  • (Score: 3, Informative) by dry on Sunday March 03 2019, @01:08AM

    by dry (223) on Sunday March 03 2019, @01:08AM (#809299) Journal

    From https://laws-lois.justice.gc.ca/eng/acts/c-52/page-1.html [justice.gc.ca] so actually the Canadian governments law,

    Limitation

    (2) A tender of payment in coins referred to in subsection (1) is a legal tender for no more than the following amounts for the following denominations of coins:

            (a) forty dollars if the denomination is two dollars or greater but does not exceed ten dollars;

            (b) twenty-five dollars if the denomination is one dollar;

            (c) ten dollars if the denomination is ten cents or greater but less than one dollar;

            (d) five dollars if the denomination is five cents; and

            (e) twenty-five cents if the denomination is one cent.

    Every time I pull out a penny now (I keep 2 cents worth in my pocket), cashiers laugh and refuse them.

    Seems America had something similar before 1965 and today stores are free to accept or refuse whatever currency they choose if they're upfront about it. https://www.snopes.com/fact-check/penny-whys/ [snopes.com]
    Here, you do see stores that post that they won't take a hundred. OTOH, American coinage is usually accepted at par.

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