Was it burned or stored? Where do out-of-print banknotes go?

Who hasn’t picked up a stained, cut, or even torn note? Money made from cellulose has an expiration date and must one day go to the “trash”. It is the duty of the Central Bank to put new banknotes on the market and remove those that no longer serve them.

First, the banknote is produced at the Casa da Moeda and then issued by the Central Bank to Banco do Brasil, which is contracted to distribute the money among other banks. In the branches, ballot papers are drawn and distributed among the people until they are completely worn out.

Which banknotes are out of circulation?

According to BC, stained, dirty, deformed, frayed or shattered banknotes may be withdrawn from circulation; by signs, doodles, symbols or drawings. Banknotes with cuts or tears on the edges or inside are also not circulated; burned or damaged by the action of liquids, chemicals, and explosives.

Are all damaged banknotes discarded?

Only banknotes that have worn out with use are still valuable and can circulate normally. What happens is that when they come to a bank, they don’t come back to the public. This analysis of banknotes that are (or may not) be in recirculation is also done automatically in machines at the Central Bank.

Where do discarded banknotes go?

BC states that currently, 92% of all banknotes not suitable for circulation are recycled. The raw material of banknote fibers serves as an energy input in kilns for cement production by coprocessing.

This recycling business is done in Curitiba, São Paulo, Rio de Janeiro, Belo Horizonte, Brasília, Salvador, Recife and Belém. Only in Fortaleza, the remains of banknotes are still dumped in landfills.

What is the banknote recycling process like?

Banknotes deemed unsuitable for circulation are shredded and compressed into brick-shaped volumes to facilitate storage and transportation. The Central Bank then undertakes to remove the banknotes from its facilities and prepare them for use as energy input.

The future

According to BC, the recycling process of a banknote helps reduce the use of non-renewable natural resources and reduce carbon dioxide emissions, as well as eliminating waste in landfills.

Despite this, the Central Bank states that it is exploring new ways to increase the useful life of banknotes and reuse alternatives as part of its Sustainable Logistics Management Plan.