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Damaged dollars and pesos: in which cases can they be exchanged and how to do it for free

2021-08-12T09:47:06.923Z


Even if they have stains, breaks, burns or missing parts, they should not be considered lost. What about the fake ones.


Martin Grosz

08/12/2021 6:01 AM

  • Clarín.com

  • Services

Updated 08/12/2021 6:01 AM

Accidents and

oversights

of all kinds often end up with ruined bills that will later be very

difficult to use

to pay.

"This I do not accept", will say who receives it.

It occurs with the national currency and especially with dollars, where any defect - or even that they have a "small face" - is usually an excuse for

rejection

or to apply a

lower price

.

Stains

, burns,

scribbles

, perforations, worn parts,

tears patched up

with tape,

missing pieces

and even rodent bites are just some of the anomalies that can

put

the value of banknotes

in doubt

.

In the case of

weights

, a very frequent cause is

forgetting them in the clothes

that have been

put in the washing machine

.

And another culprit is inflation itself, which accelerates the deterioration of higher-value notes by making them increasingly have to be used for day-to-day payments.

In the case of

dollars

, their great enemies are

bad

home

hiding places

and the

lack of

basic

precautions

so that they do not end up with

dirt

, humidity, rust and

fungi

stains in a

short time

, as experts explained in this note.

Weights tend to get damaged with use.

And the dollars, for hiding them badly.

Photo: Archive.

In any case, the important thing is to know that a bill in trouble, whether in

pesos

or

dollars

, should not always be considered lost.

Since, except in very serious cases, there are ways to

exchange them for new copies

.

In which cases are the broken and damaged weights exchangeable?

In each country, the institution that

issues the

national

currency

is also in charge of regulating the process through which

banknotes in poor condition

are

removed from circulation

, in order to replace them with new ones.

In our country, the Central Bank of the Argentine Republic (BCRA) allows anyone to

exchange for free

 the

peso

bills

that are 

damaged 

or

fragmented

, whatever their value.

This right is

guaranteed as

long as

at least 60%

of the ticket

can be collected and identified

.

Rule that is established to prevent someone from trying to get rich by cutting bills in half and then exchanging both parts for new bills.

The bills can be changed even if they are very stained.

The problem is if they are missing too large a part.

Photo: Archive.

Where can peso bills in bad condition be exchanged?

By order of the BCRA,

all banks in

the country

must accept and exchange

damaged or broken peso bills that people bring them.

They must do so at the request of any citizen,

whether customer or not

, and then send the paper money in poor condition to the BCRA for

destruction

.

They can only reject them if they don't meet the

60% rule

.

If more than 40% of a peso bill was unrecognizable, then is it already lost?

No. There

is

still

a chance

to save him.

It consists of taking all the fragments to the Central Bank (in Reconquista 266), together with

evidence

 that the deterioration was

accidental

(for example, a document stating that the house caught fire).

The monetary entity submits these

doubtful cases

to laboratory tests and finally its experts determine whether or not the exchange can

be admitted

.

Can dollars in bad condition also be taken to the Argentine Central Bank?

No

.

All of the above applies only to peso bills.

"The BCRA only changes damaged bills of Argentine legal tender, it

does not change foreign currency,

" the Argentine monetary entity warns on its website.

The Central Bank can take pesos in poor condition to exchange, but they do not receive dollars.

Photo: Marcelo Carroll.

In the United States, can damaged dollars be used to pay or exchange for new ones?

Yes it is

.

Using or exchanging damaged dollars 

in the United States

is as much or easier than doing an exchange of damaged pesos here.

Any traveler may notice that, on American soil, dollar bills in poor condition that no one would accept in Argentina can be used without problems to

pay

in 

stores

.

Or change them at

any bank

.

And, for the most

serious

deterioration cases

, there is a

free

official program

of "Mutilated Currency Exchange", implemented by an organism of the Treasury Department of that country.

They receive dollars of any value and age, even if they were 

cremated

or almost 

destroyed

.

And, after subjecting them to the rigorous expertise, they are exchanged for impeccable specimens.

In the United States, even dollars chewed by dogs can be exchanged.

Photo: AP / File.

But of course, not all those who save in dollars in Argentina have the

chance to travel

 more than 7 thousand kilometers to change damaged tickets, and perhaps they do not know someone who can do them a favor.

The big question is, then,

what can be done in Argentina

with a handful of dollars fallen from grace.

And the good news is that, although they are not simple,

there are ways

to get the free trade.

Are Argentine banks obliged to receive bad dollars?

To "get rid of" stained or damaged banknotes, many savers first try to go to the bank where they

have a savings account

in dollars and deposit them at the counter or at the cashier, to finally come back another day and extract a good banknote.

Sometimes it works for them.

But more than once they

bounce: they are rejected

.

And, despite the discussions that this brings in the branches, the banks do not give in.

Basically -they propose-, because then

no client will accept to

 receive those tickets;

and the entity will only have to take them to the US for their exchange, which has

 associated

logistics costs

.

In Argentina, stained dollars are not usually accepted, or they are taken at a lower price.

Photo: Archive.

"If it has 

minimal details such

as a slight wear, a spot or a cut we take them. But if they left them in a damp place and they are

all yellow

or stained, no.

In poor condition they are not accepted,

" explained sources from a first-rate bank line.

Even if customers protest, financial institutions can impose their own rules for accepting dollars, since no rule requires them otherwise.

"Banks

can reject broken

foreign currency

bills

," they confirmed to

Clarín

 this Wednesday at the Central Bank.

Can banks charge a fee for accepting badly impaired dollars?

Yes it is

.

In fact, there are banks and exchange agents

in Argentina

that

offer

to exchange dollars and other foreign banknotes that are in poor condition.

The

Piano Bank

, for example, has been doing this for years and still has the service available.

There are people who also turn to the informal market -

the

caves

- to solve these problems.

How does it usually work?

The depositor will their damaged notes and receive

on the spot

dollars in perfect condition or deposit them

in your account.

But the entity, which will then have to

export 

the paper money to the US to process its exchange, will

charge a part

for taking the job.

These

commissions

, explained in the BCRA,

are not regulated either

.

Currently in the formal market they can ask for 

20%

 of the amount exchanged.

There are entities that charge commissions for receiving dollars in poor condition and then managing their exchange in the United States.

Photo: AFP.

How to exchange badly damaged dollars from Argentina and without paying commissions?

If a common bank does not accept the dollars for being in

very bad condition

, it is not possible to travel and you do not want to pay any commission, there is one option: to try a

free official exchange

 in the United States, but

at a distance

, by

post

.

This chance is available not only for companies in Argentina, but also for private savers, although it can be somewhat complex and 

take a long time

.

Depending on the level of deterioration and the skills required, the resolution of the case usually takes between 

six months

and 

three years

.

How do you do it?

The dollars must be mailed to the United States Bureau of Engraving and Printing, located in

Washington DC

, along with a redemption request form - 5283 - which must be 100% complete, printed, dated and

signed

.

More instructions and details, here.

What bills do they accept there?

 Those that have a

very serious

level of deterioration

, to a level such that their value is in serious doubt.

What generally happens due to the effects of

fire

, water, humidity, chemicals, explosives, insects, rodents or because they have been

buried

without adequate protection.

For light stains, tears and wear this channel is not available.

The US Bureau of Engraving and Printing receives 22,000 exchange requests each year, sometimes for incinerated banknotes.

Photo: AP / File.

To what extent can they be deteriorated

?

They analyze all kinds of serious situations.

But if

less than 50%

 of a banknote is identifiable,

evidence

capable of convincing the evaluators that the missing part has been destroyed must

be included in the postal item

.

How do you pack them for shipping?

If they were very fragile or prone to cracking, they recommend sending them

wrapped in cotton

.

And if they suffered the damage inside a bag, box or other container, they can be sent in that same container to avoid that when removing the fragments they deteriorate even more or are lost.

What mistakes to avoid?

If the banknotes were damaged while flat, they do not need to be folded for shipping or laminated.

Also, do not put 

adhesive tape

, glue or other substances that can alter the paper.

And if the bill deteriorated folded or rolled, you should not try to extend it, as they advise.

They carefully attempt to reconstruct each ticket to determine if it is redeemable.

Photo: AP / File.

If the exchange is approved, how is it charged?

 By email, the agency informs the applicant of all the progress of the management.

And if the resolution is favorable, they send the recognized amount with an 

electronic

transfer

.

Not a minor detail: the payment can only be received in a US bank account.

And what can be done with a fake bill?

In the event of having an apocryphal bill, whether in pesos or dollars, 

there is no possible salvation

 since no bank or government entity will ever deliver a real bill in exchange for one that is not.

The only thing that can be done is to

avoid receiving them

, knowing in depth all the signs of authenticity and the security measures of the banknotes that circulate, both in Argentina and in the United States.

In the case of

pesos

, the characteristics of each current issue can be consulted on this BCRA website.

And for

dollars

, all the details to take into account are explained

in Spanish

on the site www.uscurrency.gov/es.

MG

Look also

Dollar Savings: 5 Very Common Mistakes That Ruin Your Banknotes And Make Them Worthless

Dollars with "small face": why they cause arguments in the banks and the keys to make them worth 100%

From chests to cryptocurrencies, five effective methods to protect the dollars that are in the "mattress"

How is the only savings bank that "shields" your money against inflation

How to buy gold in Argentina: three ways to invest and their requirements

Source: clarin

All news articles on 2021-08-12

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