Hi,
How are newly printed US dollar bills shipped around the world?
I look forward to your feedback.
davidmich
In some cases, apparently they load them on pallets to ship by army cargo plane to Iraq and Afghanistan.
The US mint sells them directly to banks and dealers, I believe at face value. Regular people that order directly from the mint pay at minimum 50% over face, but as much as 20-25X face value.
So, if I ordered a $100 bill from the mint, it would cost me $2,000? :eek:
Nitpick: the Mint makes coins, the Bureau of Engraving prints notes. I understand that the BoE’s only customer is the Federal Reserve, but I could be wrong on this.
I’ve often wondered about countries that use US currency in lieu of their own (Panama and Ecuador do this, I believe) get fresh bills to replace their worn ones. Do they have special couriers or do they just not worry about them?
The Mint doesn’t make Federal Reserve notes. The Bureau of Engraving and Printing does, and it sells them at the cost of production to the Federal Reserve, not at face value to banks. (The Fed pays face value for coins, but not its own notes.)
I’m trying to understand how that makes sense. So banks pay $ 90 for 1. If I walk into a bank abroad and get a spanking new 1 bill, the bank has payed 90 for that. Presumably banks make their money back on other transactions. Please explain the justification for 90 a $ 1. Thanks.
davidmich
No. I’d imagine that if you asked your local US bank for a $100 dollar bill, and handed over five $20 bills, you’d get one. Dollar for dollar.
umm…dont try too hard…it doesnt make sense.
WHOOSH! 
(The link is from TheOnion. Which, in case you don’t know, is a humor site, not a news site.)
I see!
Satirical Article In The Onion Nails The Problem With The Economy Right Now
JOE WEISENTHAL 25 JUNE 2013 5:42 AM Share Discuss Bookmark
You have to hand it to The Onion, their satirical economics coverage has more than a grain of truth to it.
The title to this piece is: Markets In Turmoil As Price Of Money Skyrockets To $90 A Dollar.
Of course that’s silly, but actually, when the price of the currency is surging, that’s deflation, which actually is the big concern right now, as gold, commodities, and equities are all tumbling.
The fact that central bankers seem to be throwing their hands in the air, not inclined to do anything more to stoke the economy only adds to the deflation concern.
Markets In Turmoil As Price Of Money Skyrockets To $90 A Dollar
So I take it that cutting out the middleman isn’t always the best option.
Steve Wozniak takes scissors with him and cuts off bills from uncut sheets. Looking at prices on e-bay, this doesn’t look like a prank for the non-wealthy.
A low-cost alternative…get a bunch of fresh bills from a bank ($2 notes may be best for this, since they are uncommon, but singles would work).
Then hit up a print shop and have them glued up into a tear-off notepad (they just put glue on the edge of a neat stack).
Then hit the store, and you can just peel off however many bills you need in front of the cashier. Similar effect as cutting from an uncut sheet of bills for next to nothing.
Mint will sell to the public a 25-roll of $1 coins for $32.5 plus shipping.
The Federal Reserve Bank of New York has a page about how cash gets into circulation.
If you’re wondering how it actually gets physically transported overseas, evidently they use air freight like any other business.
At the BoE store, apparently $80 costs $116.
http://www.moneyfactorystore.gov/20currencysheetsbeptestsheet.aspx
Thank you Lord Feldon for those links. I was just about to ask if there had been any known heists during such currency shipments. Thanks again.
davidmich
I’m trying to figure out what you mean by the Fed doesn’t pay face value for its own notes… You mean it doesn’t pay the Bureau of Engraving, right?
Plus, when you buy coins from the mint, you’re buying them Uncirculated – which adds to their numismatic value.
(Not to mention the higher-quality Proof coins that some of the mints also sell, which cost even more.)