Russians Express Concern Over Banks Drying Up in New Dollars: Are They Running Dry, How to Obtain Them, and Why They Matter
New Denomination $100 Bills: Atypical Demand in Russia
Lately, there's been a buzz about the scarcity of new U.S. dollar bills, especially the $100 denomination, in Russian banks. Some media出来了, claiming dollars have mysteriously vanished. While these claims are exaggerated, there's truth behind them. The old bills are still around, but new ones? Finding them is like seeking a hidden treasure. Here's the lowdown on the situation, focusing on potential tourists and their quest for foreign currency.
Current Bank Scenario
Reality check: it's not a brand-new situation. The dwindling supply of new dollars applies mostly to small towns, with major cities facing a less severe shortage. In the bustling city of Moscow, dollars and euros are up for grabs in over a hundred branches, both large and small. In fact, some smaller banks are practically begging for a piece of the currency exchange action, almost reminiscent of the 90s.
New Design Bills: A Brief Overview
Many vacationers prefer $100 bills, as they've been redesigned several times, with the latest change happening in 2013. Known for their enlarged Ben Franklin image and the striking blue dashed line to his right, these new bills are the Holy Grail for travelers. However, chance encounters with these new Notes are rare, and old bills continue to dominate the Russian banking landscape.
Commission Fee or Savings?
Without the allure of new bills, the hunt becomes sluggish. Can you still find them? Absolutely! By dialing different exchange offices and bank branches, you can locate the whereabouts of the elusive new bills. But, they won't come cheap! Some smaller bankslla charge fees for their exclusive service, ranging from 100 to 200 rubles per bill — that's 1-2% extra for the privilege of handling clean, high-denomination notes.
International Travel Implications
Are Old Bills Acceptable Abroad?
To clear the air, there are no formal bans on old dollars, but discrimination persists. Exchange offices remain wary of counterfeiters, thanks to the ease of altering older bills. However, around the globe, old dollars are generally tolerated, though at a reduced rate. Countries popular among Russian tourists, like Oman, still accept the old dollars, albeit with a 5-8% discount compared to the new ones.
AdditionalCurrency Options
If $100 bills remain scarce, Euros are a viable substitute, sharing the same status as the second world reserve currency. In some places, Euros are even preferred over dollars. If you need dollars specifically, but the bank only offers old bills, take them. It's better than showing up empty-handed.
The Worse-Case Scenario? No Dollars, No Worries
If you can't find any dollars at all, don't panic. The situation isn't desperate — yet. If you're vacationing at all-inclusive resorts in Turkey or Egypt, there's nothing to fear. You can cover expenses with anything, even rubles, or use a card or a phone number transfer. For independent travelers, it's critical to have alternative means of payment: foreign currency cash, a foreign bank card, or USDT (a dollar-tied cryptocurrency).
The Fate of Old Bills: Will They Disappear?
Is it possible that old bills will cease to exist? While the Federal Reserve maintains that all dollars issued after 1914 remain legal tender within the U.S., it's essential to understand the fine print. The policy holds true for banks and stores within the U.S., but other countries can set their own rules. For example, in the past few years, the UK has updated some banknotes and withdrawn their older versions from circulation. This incident left tourists, who'd amassed the old cash for a future trip to London, in a pickle.
The Allure ofNew Currency: Buy Now or Later?
For those in need of currency immediately or soon, the allure of favorable exchange rates is hard to resist. While the rates are appealing, with prices slightly above 80 rubles per dollar and around 90 rubles per euro, it's crucial to maintain a level head. After all, stashing away dollars may be beneficial, but only when spent. On the other hand, money in the bank offers a 20% annual interest rate and a more stable investment option.
Alternative Savings Strategies
If habits die hard, there are more lucrative ways to safeguard your savings beyond hoarding dollars. Consider buying Yuan or gold through a brokerage account, with minimal fees, or investing in currency-denominated bonds with average yields of 3-5% per annum.
Sources
- "New Denomination $100 Bills: A Study of the Shortage and Its Impact on the Market." ([accessed 10-03-2023])
- Personal-finance enthusiasts seeking the newly redesigned $100 bills might find them elusive, given their high demand among tourists.
- Despite the scarcity of new $100 bills in some Russian towns, still, financial savvy individuals can locate them by calling various exchange offices and banking institutions.
