Asked the bank of Canada why don't they bring back the 1 and 2 dollars notes

This is in response to your email in which you suggested bringing back the $1 and $2 dollar bank notes.

The $1 note was replaced by a coin on 30 June 1989 and the $2 note was replaced on 16 February1996. Like all bank notes ever issued by the Bank of Canada, they are still legal tender.

The $1 and $2 notes were replaced with coins to save money. Because the $1 and $2 notes changed hands so frequently, they lasted less than a year.

$1 and $2 coins cost about 16 cents each to produce whereas the $1 and $2 notes cost about 6 cents. However, the coins last about 20 years so even though they are initially much more expensive to produce, in the long run they are more cost-effective. As a result of the change to coins, Canadian taxpayers will save about $250 million over 20 years with the $2 coin and $175 million over 20 years with the $1 coin.

Only Parliament has the authority to add new or delete existing denominations of coins and bank notes. Such decisions are made in consultation with the Royal Canadian Mint (which issues coins) and the Bank of Canada (which issues bank notes).

The Bank of Canada has no plans to introduce the $1 or $2 bank note back into circulation.

I hope this information is helpful and thank you for your interest in Canadian currency.


Now the first thing I wonder if the 16 cents includes the cost of the machinery, electricity or time spent and pay for that time spent on each coin for the workers which they probably don't care about. So then another question way she said the coin lasts 20 years and the bill lasts less than a year but that is taken from the paper money. Now with the new plastic bills production cost will be lower AND it is way more durable than the paper bill.

 

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Okay, several flaws in your argument here. First of all, machinery for both coins and paper money costs money and both are fairly complex. I would argue that the machinery alone for paper money would cost more since there are many layers of paper and features that need to be added whereas circulation coins simply need to be punched. Many of these processes are automated, and the individuals that do work for them are federally employed and have excellent benefits beyond the average of similar workers in the private sector. Also, coins cost 2.7 times more to make then paper money, but if your factor in the cost over 20 years, coins are cheaper by 7.5 times! According to the Ottawa Sun (Canadian newspaper: http://m.ottawasun.com/2012/05/02/bank-of-canada-unveils-new-polymer-20) polymer notes cost 19 cents to manufacture so they are 3.2 times more expensive than paper bills, but they last 2.5 times longer so in the end the lifetime cost of paper notes compared to polymer is negligible. In conclusion, it costs 6.8 times more to produce a polymer bill than a coin, and 7.5 times more to produce a paper bill than a coin. So...coins are a much better choice economically speaking.

 

now, if only, the usa would follow suit...

 

But we love our paper notes down here! :yes:

 

If you love something, set it free...

 

I like to keep it and stare creepily at it all day long. My precioussssss!

 

NO! If I love something, I want to love it, and hug it, and pet it and squeeze it, and call it "George"

(Kind of ironic how this reference relates to "George" Washington being on the $1 bill :devil: )

 

I think a better question to ask them is when they will next produce a commemorative note.