US Set To Reject Dollars Printed Before 2021 From January?

FACT CHECK

There were reports published on some news websites (not this newspaper) that the United States has concluded plans to to stop the acceptance of dollars printed before 2021.

The information containing the planned rejection was also shared among social media platforms such as WhatsApp, Facebook and other platforms.

THE CLAIMS

The report had claimed that following the conclusion of an extraordinary meeting held in Washington DC on November 2nd 2022 between the United States Federal Reserve Bank, Office of the Comptroller of Currency, International Monetary Fund, World-Bank and Governors of Africa’s Central Banks, the United States Government has set date for restriction on acceptable legal tender note of US Dollar which will commence on January 31st 2023.

It claimed further that the restriction implies that any US Dollar note below 2021 printed date will no longer be accepted or be a legal tender anywhere in the world.

Those pushing the narrative claimed that this effort is to curb billions of illegal monies in dollar bills warehoused around African continent emanating from drug related, terrorism, kidnapping and money from corrupt politicians.

It stated further that as part of the enforcement of the strict action plan, African Central Banks will be assigned with a special agent from the Office of the Comptroller of Currency, Administrator of National bank United States of America to checkmate all inflows and outflows of dollar transactions.

The report also has it that the US President, Joe Biden had also written to the British Government and European Union to follow same line and redesign their currencies accordingly to frustrate those with ill-gotten money in US dollar, British Pound Sterling and Euros.

It claimed that should this action be implemented from January 2023 as reported, Nigerian corrupt politicians will be worse hit.

Interestingly, the information is coming at a time when the Central Bank of Nigeria is implementing a currency redesigning project aimed at mopping up over N3.2trn cash that is outside the Nigerian banking system.

The CBN Governor, Mr Godwin Emefiele had late in October announced during an emergency meeting that it will redesign N200, N500 and N1,000 notes.

According to the lender, the new currencies will begin circulation December 15, 2022, while the existing notes will cease to be legal tenders by January 31, 2022.

The CBN had said N3.2trn currency are in circulation out of which 85 per cent is out of bank vault.

THE FACTS

Expectedly, coming at a time when Nigeria is redesigning it’s currency, the information about the US plan to restrict the acceptance of dollars printed before 2021 will naturally gain traction.

However, unlike Nigeria’s currency which is the Naira, the US dollar is a global currency used in global trade and its acceptance cannot be easily stopped or restricted.

The dollar remains the world’s reserve currency today. Central banks hold around 59 per cent of their reserves in U.S. dollars, according to the International Monetary Fund (IMF).

Many of the reserves are in cash or U.S bonds, such as US Treasuries. Dollar-denominated debt outside the U.S. continues to rise, with levels reaching $13.4trn as of mid-2022.

The Federal Reserve Board currently issues $1, $2, $5, $10, $20, $50, and $100 notes.

According to information obtained from the website of US Currency Education Programme, the first $1 Federal Reserve note was issued in 1963, and its design—featuring President George Washington and the Great Seal of the United States—remains unchanged.

The current design $100 note is the latest denomination of US currency to be redesigned, and it was issued on October 8, 2013.

The current design of $100 note features additional security features including a 3-D Security Ribbon and color-shifting Bell in the Inkwell.

The $100 note also includes a portrait watermark of Benjamin Franklin that is visible from both sides of the note when held to light.

Each note includes security and design features unique to how the denomination is used in circulation.

The US government periodically redesigns Federal Reserve notes to make them easier to use, but more difficult to counterfeit.

It is US government policy that all designs of US currency remain legal tender, regardless of when they were issued. This policy includes all denominations of Federal Reserve notes, from 1914 to date

CONCLUSION

Going by these facts, the reports being published in various platforms about the restrictions of the US dollar printed before 2021 is FALSE. CONTINUE READING…

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