Junk buck: banks refuse to accept non-ideal dollars
Banks have almost completely stopped buying dollar cash from the public if it is not, as they themselves put it, in perfect condition. If there is even the tiniest spot, scuff, wrinkle or water mark on the bill, the credit organization will refuse to buy it, even if it sold it to a client earlier. As explained in bank branches, the reason is that customers themselves do not want to buy non-ideal dollars after the mass refusals to accept old and damaged banknotes, which Russians faced abroad. Why the trend of cautious attitude to "aged" dollar cash is developing worldwide and what it threatens Russians who keep currency at home - in the material "Izvestia".
What has changed in the purchase of cash dollars by banks
Ekaterina before a trip to Turkey decided to buy a few hundred dollars. However, in the nearest branch of "Sber" she was told that there are only $50 in normal denominations. All other banknotes have some kind of flaw and may not be accepted abroad, especially in Turkey and Egypt. When asked what to do, she was recommended to either catch a moment when someone would bring in good banknotes to turn in, or go to another organization.
Nearby in the shopping center "Reutov Park" was a branch of the bank "Avangard", where theypromised to exchange the freshest crisp dollars for rubles. However, the customer reviews, which Ekaterina did not fail to read, were somewhat alarming. Some of them were indignant that they had bought dollars at this branch and then tried to hand them over here, but they were not accepted.
Here are two of the most typical responses: "Thecashier does not accept dollars, which she herself sold to me a few weeks earlier. She herself admits that the dollars are "correct", but something is supposedly rubbed off there". "I bought currency from them, and three months later I came to change it..... They did not accept it, despite the fact that it was bought from them. I will not go there again and do not recommend it.
In "Avangard" Ekaterina was indeed sold clean and crisp dollars, though at a rate two rubles more expensive than in the first bank. The girl still asked about the nature of the negative feedback. As the cashier explained, people now do not want to buy bills with the slightest flaw, even just crumpled ones, fearing that they will not be accepted abroad. At the same time, there are customers who buy in the branch clean and in good condition, then go to the resort, and there they carry in the back pocket of wet jeans, grab "greasy hands", salt water gets on the money, etc. "We sell clean bills and accept the same," the cashier summarized.
It turned out that this is not just a private case, but a trend. IIC Izvestia correspondents went around the branches of several major banks, and everywhere they were told that only perfect dollar bills are accepted.
Because of what banks may not accept cash currency
The same arguments were given there as in "Avangard". After mass refusals to accept old banknotes or banknotes with small defects in Turkey and Egypt, citizens began to approach the purchase of currency for travel very carefully. Therefore, if people do not want to buy tainted banknotes, there is nowhere to put them.
- Previously, our large credit organizations had direct contracts with the largest American banks. Therefore, they could accept spoiled bills with a commission, take them out and exchange them," explained cash circulation expert Alexei Voylukov. - Naturally, due to the sanctions, all these contracts have been suspended.
By the way, as Ekaterina was told in Sber, answering the question of what they do with non-perfect bills, they sell them to people who go to America. Apparently, at a more gentle rate, however, she did not specify this.
The VTB press service confirmed to Izvestia that Russian banks have indeed changed the rules for accepting damaged dollars and euros.
- Previously, they were accepted for sending them abroad for exchange. Now, due to sanctions, foreign markets for Russian banks are closed, and at the domestic market such bills are not in demand. Therefore, banks accept only high-quality banknotes for exchange, and damaged ones will eventually be withdrawn from circulation, - reported in the credit organization.
"Izvestia" sent requests to other major banks, they did not give a prompt comment.
Why all over the world refuse to accept flawed dollars
According to Alexei Voylukov, not only in our country, but all over the world to dollars now such an attitude - old and dilapidated banknotes will not be accepted in the store, send for exchange in the bank.
- Hence the trend that customers prefer to buy cash in perfect condition in order not to face problems during a foreign trip, - the expert emphasized.
One can only guess why the trend to refuse to accept non-ideal dollar bills is spreading globally, he said.
- There are two versions. The first - it could be a US campaign to get rid of dilapidated bills. Many countries, including ours, are fighting for the purity, so to speak, of banknotes. Our Central Bank prohibits banks from issuing old banknotes and even fines banks for this, - said Alexei Voylukov. - The second is a conspiracy theory, as it is commonly said. They say that the U.S. is trying to reduce its huge foreign debt in this way.
U.S. dollars are circulating in cash all over the world. And if local monetary authorities say that dilapidated, marked and other banknotes are unacceptable for acceptance into circulation, they must be surrendered to banks. For some countries, e.g. Russia, Iran, it is impossible to do this. Thus, the debt is reduced, recounted one of the versions of the expert.
- Of course, this is a conspiracy theory. Most likely, it is just a struggle for the purity of banknotes. By the way, for this reason in many points stopped taking though new, very crisp, but just ordinary white banknotes, not colored, not new issues, modifications. Although it has always been said that all dollars are the same as a means of payment, no matter what year of issue they are," said Alexei Voylukov.
What to do for owners of dollar cash reserves
It is clear that for tourists who exchange small amounts, even the refusal to accept is a problem, but not very significant. Another thing is that Russians have significant - about $95 billion - savings in cash currency. And for some of them the new trend may become critical. So, not everyone guesses, but if stored incorrectly (in cellophane, in places with poor ventilation and high humidity) cash dollars are infected with fungus and covered with mold. It is not visible to the eye, but when checking in exchange offices, spoiled places glow in ultraviolet light, so the bank will not accept them.
And no one can force it. According to the instruction of the Bank of Russia from 16.09.2010 № 136-I, authorized banks and branches of banks independently develop rules for accepting damaged foreign currency bills, reported "Izvestia" in the press service of the Central Bank. The regulator establishes the signs of solvency only for rubles, they said.
- This is also dedollarization. Banks are in their right - they can set their own rules for accepting foreign currency and refuse without any apparent reason. Sometimes, for example, it is impossible to hand over to the bank a gold bar or an investment coin bought from the same bank, even if they have not been taken out of the package," said Mikhail Khachaturyan, associate professor of the Department of Strategic and Innovative Development of the Finance University.
To keep unfriendly currencies in bank accounts is now unprofitable, as organizations have introduced virtually prohibitive conditions (commissions for deposit to the account, the minimum yield, etc.) on deposits in such money. But it is also not worth keeping in the direct sense in the bank (on the forums of victims of fungus on dollars there are such stories, when people keep currency in three-liter jars in the cellar).
Theideal place, according to Mikhail Khachaturyan, is a safe, which allows you to keep dollars in "commodity" form, so that they are accepted for exchange in the bank. However, the expert believes that taking into account all the circumstances, the function of accumulation of dollars for Russians is gradually losing, but retain the function of settlements.
Ilya Zharsky, managing partner of the Veta expert group, believes that for these purposes it is better for individuals to pay attention to non-cash settlements. For example, they should master the possibility of opening accounts and bank cards abroad. Most likely, it is easier to do it in the countries of the nearest foreign countries, added Alexei Voylukov. After all, even, for example, to credit substandard currency to an account, one should at least have that account. However, he admitted, a commission would have to be paid for this operation.
