Cash withdrawal limits

Quote: Pacomartin

We can probably agree that there were more intelligent ways to behave for our hapless Swede.

I don't think a bank in Mexico would have acted any differently. But options include using a credit card (I assume your Swede didn't have one), getting a friend or relative to wire money (plenty of ways to do that in an instant in Mexico, including via ATMs without a card required), cashing a check (I do have a check book still. It's tied to the debit/deposit account, but I can use it if the card expires, or is reported missing/stolen).

I wonder if a friend sent him Bitcoin, whether he could have cashed it somewhere.

Quote: Dalex64

Really? I'm quite happy with the $20. It works well for me, and I don't like carrying around a 50. I hardly make any cash purchases, so while the purchasing power of $20 has gone down, so has my need for cash.

I'm not saying that someone shouldn't have the right to withdraw five $20 banknotes (probably the most popular ATM withdrawal) and must withdraw two $50 banknotes. All I am saying is that it is ridiculous when you see signs that say you have to limit your withdrawal to $800 as some machines can only handle 40 banknotes per withdrawal.

There should be more options, and the newer ATMs can handle two denominations. It is a waste of money to produce six $20's for every $50.
It's kind of ridiculous that we circulate 122 banknotes per person in the USA. That's several times any other nation.


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Now the 2009 series of $1 banknotes was produced between Feb 2010 - Oct 2014 (56 months) and they made over 9 billion of them (~28 times the population). So in comparison. Which actually seems much worse, but the $20 banknote has more security features and is more difficult to produce.

The British are introducing a new coin since the coin's introduction on 21 April 1983 . The Royal Mint estimated in 2014 that about 47 million were counterfeit.


Mexico circulates 38 banknotes per person. They have trouble accepting the 1000 peso banknote (~$50).
Banknotes per capita in Mexico
4.2 :20 pesos (polímero)
4.4 :50 pesos (polímero)
5.3 :100 pesos (Familia F: papel y polímero)
7.4 :200 pesos
15.3 :500 pesos
0.6 :1000 pesos
37.9 :Circulación de billete

Quote: Pacomartin

there should be more options, and the newer ATMs can handle two denominations. It is a waste of money to produce six $20's for every $50.
It's kind of ridiculous that we circulate 122 banknotes per person in the USA. That's several times any other nation.

In Mexico ATMs typically can dispense 100, 200 and 500 peso notes. Some also spit out 50s.

But you know what I like? the TITO Redemption/Change machines at Vegas casinos. Those things are so handy! They have all denominations up to $20, including coins (hundreds, too, but these aren't given as change). Vegas is the one place I'm rarely short on change. Typically before settling down for a VP session, I'll get $5 in singles for tips.

Quote: Nareed

In Mexico ATMs typically can dispense 100, 200 and 500 peso notes. Some also spit out 50s.

I had one in Tijuana spit out 20's (possibly 50's as it was a while ago). The pile was so thick I couldn't even fold it.

Quote: Nareed

But you know what I like? the TITO Redemption/Change machines at Vegas casinos.

Well most locations can't afford such a high priced machine.

If you had to think of environmental hazard, then cathode ray tube monitors with cadmium in the phosphors. and leaded glass would be right up there.

So the production of 2 tonnes of $1 banknotes per year may at first glance seem relatively harmless compared to other products like CRTs. But all those banknotes must be distributed in trucks, then they all have to be gathered up in trucks, sorted through for notes that must be destroyed and notes that are good enough to be put back in circulation. They have to be counted and recounted and circulated again.

The reduced cost of not having to deal with cash pay for those credit cards that return 1% back to the buyer.

Quote: Pacomartin

I'm not saying that someone shouldn't have the right to withdraw five $20 banknotes (probably the most popular ATM withdrawal) and must withdraw two $50 banknotes. All I am saying is that it is ridiculous when you see signs that say you have to limit your withdrawal to $800 as some machines can only handle 40 banknotes per withdrawal.

There should be more options, and the newer ATMs can handle two denominations. It is a waste of money to produce six $20's for every $50.
It's kind of ridiculous that we circulate 122 banknotes per person in the USA. That's several times any other nation.

I'll often only pull $40 or $60.

Quote: Pacomartin

I had one in Tijuana spit out 20's (possibly 50's as it was a while ago). The pile was so thick I couldn't even fold it.

It must have been 50s. They're offered as a convenience, so you can withdraw 450 rather than 500 if that's what you need.

Quote:

Well most locations can't afford such a high priced machine.

Sure, but also few locations run so much on cash money circulating all over a very large floor.

You can put a $100 on a nickel VP (are any still around??), play only $20 max loss, then take the ticket and cash it. But you're less likely to lose $100, at least on that session, if you break the C note first and feed the machine a $20.

I'd also hit one on the way to the buffet for tip money.

Quote:

The reduced cost of not having to deal with cash pay for those credit cards that return 1% back to the buyer.

Sure. But we're very likely to still have cash 100 years from now.

Quote: Nareed

Sure. But we're very likely to still have cash 100 years from now.

As I said before, many countries are increasing electronic transactions and discouraging cash usage. But only Sweden is actually decreasing the amount of cash available (of wealthy countries). It's of particular interest because cash is vanishing at rate far quicker than predicted.

Mexico increases cash measured in pesos, but is losing value measured in US dollars.


Timeline Sweden
1 Jan 1995| Austria, Finland and Sweden join European Union (EU) : 50% of Swedish Krona in largest denomination over US$100
14 Sep 2003 | Sweden votes not to adopt the Euro in violation of EU policy (based on a technicality in rules)
March 2006| Added security ribbon to largest denomination 1000 kr banknote (very few produced)
31 Dec 2007 | Swedish cash peaks
1 Feb 2010 | Sweden considering producing new currency and introducing new coin (~ 2 cents) and new banknote (~ $20)
2012 | Central bank says cash will be reduced by 20% to 50% by year 2020
31 Dec 2013 | First large scale demonetization of largest denomination banknote without security ribbon
1 Oct 2015 | new banknotes introduced
1 July 2017 | Last of old banknotes and coins will be demonetized
2018 | Deliberations on whether or not to introduce digital currency

2007 : 0.0% - Peak Swedish currency in circulation
2008 : -1.8%
2009 : -4.6%
2010 : -8.5%
2011 : -13.0%
2012 : -16.2%
2013 : -25.7%
2014 : -27.2%
2015 : -36.6%
2016 : -45.4%

Decisions made in the next 4 months will determine how radically the cash in circulation is reduced by the end of 2017.
If a digital currency is introduced in the next 2 years, it might reduce cash to almost nothing.


The krona slumped against the USD after the US election as it was feared that Trump's protectionist policies would damage Swedish exports. But it recovered quickly.

The elimination of about half the physical currency will make it very hard to easily move money out of the country in the event of a Greek style crash. It may be used to combat illegal immigration in the country.

Quote: Pacomartin

If you look at coins you can see how inefficient the system of our coins is. Over 300 billion zinc pennies since 1982 to be thrown in trash.

I see how inefficient fiat money is for the people, but it is working swell for the fed. If we were using constitutional money, you wouldn't see any gold or silver laying in the bottom of trash cans. And it's totally recyclable.

Quote:

The nickel is very costly because of the price of nickel.

It's costly in fiat, it will last a very long time while fiatsco's rot away.

Quote:

The 50 cent piece and the dollar coin are never used. Basically it is dimes and quarters that are worthwhile,

Gasoline is still .10 per gallon measured in silver dimes.

The bimetal throw away pennies is proof of Gresham's law, as are the FRN's.


We are producing a ridiculous number of $100 banknotes, and facing huge production problems as we try to develop a note which is both cheap to produce and extremely difficult to counterfeit.

Quote: petroglyph

Two one gram rounds or ingots of gold takes up very little room in a pocket or purse. Authenticity's are easily proved.

One gram of gold is similar to the weight of a banknote which is only about a gram. But gold is only selling for $40 a gram so it is 2.5 times as heavy as c-notes.

There are 4.58154213 billion grams of gold in Fort Knox (or 4.58154213 thousand tonnes) worth about $183 billion USD. There is $224.60 billion in fiat currency in the small denominations of $1, $2, $5, $10, and $20. So there is not enough gold in Fort Knox to cover the small bills in the United States, let alone the large denominations which constitute 85% of the value of USA's cash.

The value of circulating US federal reserve notes was increased from $4 billion to $23 billion from 1938 to 1945 to finance the war. Although technically currency was backed by gold until Nixon administration, even in WWII the specie dependence was effectively destroyed.

Quote: Pacomartin

There are 4.58154213 billion grams of gold in Fort Knox (or 4.58154213 thousand tonnes) worth about $183 billion USD. .

A laughable amount these days. Instead of
spending a fortune protecting it, sell it and
save millions a year.