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A new hearing from Norway on damaged coins and banknotes

January 13, 2011 – Opposite to what debit- and credit card enthusiasts would like, subjects concerning coin and banknote production have gained much attention from Scandinavian governments in 2010/11. Denmark is introducing a new series of banknotes with modern infrastructural motifs on one side and illustrations of artifacts on the reverse. In addition, the Swedish Central Bank is considering launching a new series of coins and banknotes.

Norwegian Banknotes. Photo: Wikipedia.

Norwegian Banknotes. Photo: Wikipedia.

Norwegian banknotes are still considered quite safe against counterfeits and it is not very likely to see a change in Norwegian banknote design the upcoming year. On the other side, several years with banknotes of the same design creates a question about what to do with the remains after years of circulation.

Since 1992 the Central Bank has compensated economically worn out banknotes or coins at delivery for destruction. Banknotes, which are holding 50 % or more of the original size are compensated fully. In some cases the bank also compensates even more worn out bills (ex gratia). Bad quality bills and “dimes” are imported by foreigners and foreign companies who are claiming the money is bought in Asia. The Central Bank in Oslo believes this is money laundering, and more over, the ex gratia payment for extremely worn out banknotes and coins is very expensive for the Norwegian Central Bank.

In a letter of December 1st 2010, the Norwegian Central Bank is proposing the idea that the bank can decide to reject so called China-coins and banknotes at delivery for destruction. Second, coins and banknotes, which have been damaged due to carelessness shall also be rejected by the bank. Third, money from criminality can be rejected.

The bank’s deadline for submissions was January 10th 2011.

by Marius Ringsrud, fil.mag.

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