Why exactly does the U.S. ship so many $100 Bills overseas?

Okay, I asked this in another thread, but I figured the issue might get more attention here.

Why exactly, does the U.S. ship so many $100 bills overseas? And do they do the same with most of our $50 bills? And what about lower denominations?

BUT, my MAIN concern is, WHY ship U.S. $100 Federal Reserve notes mostly overseas, when they have high denomination Euro notes over there? If they prefer lower denomination U.S. currency over higher denomination European currency, then, why aren't we printing at least $200 and $500 Federal Reserve notes and even possibly $1,000 FRNs to rival the Euro?

Doesn't the U.S. gain money by foreign countries hoarding U.S. dollars as a store of wealth?

And lastly, WHAT is the purpose of shipping so many of our $100 FRNs overseas? Who wants them the most over there?

 

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Some of your questions can be answered here...http://findarticles.com/p/articles/mi_m4126/is_n10_v82/ai_18786211/

 

Thanks for the link Steve!

 

I said in the other thread:

The $100 is the largest denomination of the de facto global standard currency.

Also see: "WILL JUMBO EURO NOTES THREATEN THE GREENBACK?":
http://commdocs.house.gov/committees/bank/hba51647.000/hba51647_0f.htm

 

That's really sad that most of our currency is outside the US. I guess thats the price we have to pay for our currency being the world exchange reserve. Overseas, you have to buy oil in dollars and other items too. So a company from Germany that wants to buy oil has to first buy dollars, than they can buy oil, so it does make sense that most of US currency is overseas... Its just a small price to pay is all.

 

I view it not as a price to pay, but an incredible amount of free interest we earn each year. This is an important asset that current administrations have been placing in danger, (plural, not an individual administration, not trying to be political). Every country on earth would love to have the distinction of being the world's reserve currency. I believe the Euro has intentionally tried to position itself as our replacement. It may have worked if not for their newfound troubles.

Btw, just so everyone is aware, overseas not all $100 are treated equally. If you plan on traveling always have the latest series on you, as they discount, (sometimes severely), older series of US $100 out of counterfeiting fears.

Chris

 

I've never thought of it that way, but that is true and an exceptional observation to make on the subject.
:thumb:
Wow, I never knew that! Thats really weird... Plus, I'd imagine that there are lots of older $100's out there because all the years of people spending biills there. Next time I go anywhere out of the country, I'll be sure to bring the most brand new series $100 I can take (or whatever denomination, for that matter).

 

It may also be pointed out that a large group of countries use the US dollar as it's currency as well. Even countries that have a currency of their own use dollars quite regularly. Every time I've been to Germany, for instance, I paid for everything in Deutsche Marks (I haven't been there since the into of the Euro) and nine times out of ten I'd receive dollars back in change. During a summer in Monaco, who has no official currency, I noticed they use dollars instead of Francs for everything.

US currency is used more widely around the globe than it is domestically.
Guy

 

I would suggest sir to take $100 exclusively if you plan on converting to the local currency, as smaller bills get discounted. If you will be paying in US currency, you are very correct to just have the latest series on you, as they will best be accepted.

Chris

 

I haven't really been around much yet but I would have never even thought to worry about the type of US currency I would be carrying on me. Thanks for the tips, Chris!

-Travis

 

Not only take the newest 100's you can find, but make sure they look new. No wrinkled bills. They want crisp ones without the wrinkles from usage.

Plan ahead, because many banks don't carry them except before Christmas, because that's when people buy them to mail to their family members overseas. You may have to special order bills.

 

Holy crap I never knew there were so many in's and out's to spending US currency overseas! I always pictured them getting on their knees and begging that I give them whatever dollars I had on me. I guess this all goes to show that times are indeed changing and dollar isn't what it used to be. Too bad. Hopefully it will all bounce back.

 

Most of our real estate is owned by foreign countries as well, so I guess it makes sense they have all of our money too.

 

Guess that depends on what services you use. In regular stores here in Germany you would hardly ever get US dollars back, even if you asked. But places that rely on US visitors will of course accept US dollars if the alternative is "no deal". And then they may also have US cash that they can give in change.

(It's pretty much the same as when people from overseas say they hardly ever see 1 and 2 cent coins here. Well, the payments they typically make do not require or involve such amounts. Unfortunately we "regulars" are still stuck with them ...)

As for Monaco, I have not noticed that they use "dollars for everything", but again different experiences may result from different payment habits. In the euro area (and Monaco has a monetary agreement with the EU) I will of course pay in euro, using cash or (since there is no currency fee) plastic. But I am fairly sure that, when you ask whether you can use US dollars, they will gladly accept them.

Oh, and ... yes, the oil deals mentioned in another reply are usually dollar based. But does anybody seriously believe that American $100 notes, or any other cash, would be used for them? Nah, but for individuals in various countries (especially those that have been hit by inflation) it makes sense to have cash available in a currency that is (1) common and relatively stable and (2) available in notes that do not "expire".

Christian

 

I was in my local village post office the other day, it has a Bureau de Change, the teller always saves me any old or unusual notes for face value exchange.
She always has wads of $100, $50 & $20 bills for people who are going on vacation and these are exchanged everyday.
If you imagine every major post office, bank, travel agent and airport has these facilities just in the UK then multiply it with every other country in the world where people do a lot of travelling, all of Europe, Russia, Asia, Australasia, Middle East, this explains where most of your paper dollars are.

This is also true of many other major currencies, my teller holds Euro`s, Aussie dollars, Swiss Francs just about any currency for anywhere in the world.

 

It really makes you think!

 

My experiences in both Monaco and Germany were over 20 years ago, so that may make the difference. At that time Germany still had tens of thousands of US military stationed there, and in fact, the areas I was in most were the homes of several large bases.
Guy

 

Having normal US currency isn't an issue in Canada, at least the parts of Canada that myself and my relatives have been to.

From what I've seen, it seems most tellers have plenty of $100s in relatively new condition. Pre-1995 and pre-1990 bills are rare enough that you can easily avoid them if you want to. (In 1990, they added microprinting and a security thread without changing the outward appearance.)

They're still using the design that was introduced with Series 1996; the 2009 redesign hasn't been released yet due to production problems.
Series 2006A is the most recent and hasn't circulated much in the US, but the Series 2006, the next-most-recent, has.

The US has never demonetized its old designs, whereas many other countries have. Confusion over that issue may be a factor in addition to older designs being easier to counterfeit.

 

As of today the 2006A $100's are now heavily circulated throughout the US. Or at least in Vegas and NorCal.

 

Good to know thank you. I will probably be traveling to SE Asia in a few months and always need to know what our newest bills are.