In Argentina, after the increase in the exchange gap between the official dollar and the “blue” or informal dollar, as a result of the taxes that the Government began to apply to the currencies: the bills have been classified as small face, medium face and large face.
Because this occurs in the parallel exchange market, where the blue or informal dollar comes and goes; many wonder why – despite having the same denomination – not all have the same value and some are worth more than others. For what is this? In the following paragraphs we explain it to you, as well as detailing what each of them is.
THE REASON WHY NOT ALL DOLLARS HAVE THE SAME VALUE
In the informal market, dollars – despite being of the same denomination – cease to have the same value as their designs vary over the years. His argument: due to their age they could be withdrawn from circulation and therefore would lose their value in the future, especially those with a small face.
WHAT DOES THE UNITED STATES THINK ABOUT THE SMALL FACE DOLLAR?
After learning about what is happening in various countries such as Argentina, where banknotes are categorized, he specifically referred to those with a small face.
“The Federal Reserve Board of Directors recognizes that in some countries there may be different exchange rates or currency acceptance policies. However, it is the markets and not the US government that control these prices. Older UScurrency designs remain legal tender regardless of when they were issued. No need to change them!”, They specified in an official statement.
THE SMALL FACE DOLLARS
Small-sided dollars are those that were printed in the United States until 1996. So we have that on US$100 bills, Benjamin Franklin is inside an oval frame, but comparing the bill with a more recent version, his dimension is smaller.
Not only that, because in the informal market it is ensured that they are more falsifiable, so they decide to pay less than their real value.
THE MEDIUM FACED DOLLARS
Medium-sided notes are the ones that predate the “blue” design and have the same drawback, as you pay less for them on the informal market due to supply and demand, a City trader tells iProfessional.
“The causes are multiple, but mainly it is that they are less and less accepted not only in Argentina, but in the world with the exception of the United States, since it is the issuing country. In addition, many importers do not accept them and neither do real estate transactions, so people who buy dollars do not want them (even when they withdraw them from the bank) and that means there is less demand for these bills, which is why they are accepted. at a lower price,” he said.
THE BIG FACE DOLLARS
They refer to the classic 100-dollar bills with a green hue and the large face of Benjamin Franklin, to which is added their anti-counterfeiting measures such as having a blue security thread.
It is the favorite of savers, which is why many seek to make transactions with it, especially in the parallel market.