Nearly 82 billion drachmas ($320 million) in banknotes were unaccounted for when the deadline for withdrawal ended on March 1 by the Bank of Greece, said Kathimerini daily. Drachma coins had an acceptance deadline of March 2004.

Most of the higher-value banknotes that were worth 10,000 and 5,000 drachmas have been cashed in over the past 10 years, but many 50 and 100- drachma notes were kept as souvenirs by Greeks and millions of tourists who visited the country over the years, reported the newspaper Kathimerini daily.

On January 1, 2002 the euro replaces the drachma as Greece’s legal tender.

The drachma was first introduced by ancient Greeks, and was introduced by the modern Greek state in 1832 after the Ottoman Empire- the country’s war of independence.

Greece on Friday completed a deal with private creditors to erase 107 billion euro’s of it’s debt in a bond swap of unprecedented value that is crucial for its economic survival.

SOURCES:

France24: ‘Greek drachmas worth 240 ml euros unclaimed as swap deadline ends: report’

Business Report: ‘Millions of Greek drachmas unclaimed’

Kathimerini daily

According to the American Foreign Press (AFP), hundreds of people lined up at the offices of France’s central bank on Friday to exchange old francs for euro banknotes as it was the last day mandated by the bank to make the exchange.

When the country first instituted the euro in 2002, the Bank of France set up a three-year period in which citizens could exchange franc coins and old-series banknotes for euros. The exchange period for newer francs, however, lasted until this year – ending Friday.

The bank saw more than 1,000 people stop by its offices on Thursday, and by Friday a lineup to make exchanges spilled out into the streets of Paris “extending halfway down the block,” the AFP reported.

The exchange wasn’t instant either. Those who dropped off their old notes will have to wait until March to receive notification of when and where to pick up their new euros.

In order to remind people to make the final exchange, a series of advertisements aired in France in advance of the deadline and the Bank of France set up a website to help citizens locate their nearest central bank branch.

However, not everyone who wished to make the exchange was so lucky.

Restaurateur Didier Montanari, ventured to the central bank after hearing about the deadline on the news but left disappointed after his three 100-franc bills from the 1980s were deemed too old to exchange.

“They don’t exchange the Eugene Delacroix,” he told AFP, referring to the French artist whose likeness graces the bills.

It was estimated that at the end of 2010 there were still 50 million franc notes at large, worth the equivalent of 602 million euros, the AFP reported.

SOURCE:
AFP: “Hundreds Queue In Paris For Last Chance To Cash In Francs”

Instead of inserting debit cards into a slot, customers using the machines simply need to wave their cards next to a reader and enter their PIN code to withdraw cash. Some customers will also be able to use their cellular phone in lieu of a debit card. La Caixa said the new machines were the “fastest ATM cash withdrawal system on the market.”

Currently, several contactless machines have been installed in Barcelona, Sitges and Mallorca with plans in the works to install similar machines across Catalonia and the Balearic Islands in the coming weeks, according to an article published by AFP.

With the new ATMs will also come new contactless payment cards, though you will still be able to use your regular debit card with the machines as well.

“The bank last month announced it would send out 130,000 Visa-branded contactless cards in May, apparently unsolicited, to customers on the Balearic Islands, most in Mallorca,” reported an NFC Times article. “It would also install contactless point-of-sale terminals at 5,000 merchant locations on the islands. The bank has a total 10.3 million cards on issue throughout Spain.”

The contactless ATMs, however, have only been equipped to service withdrawals. The machines are not currently capable of processing other transactions such as deposits, but La Caixa said those option will gradually be included over time.

La Caixa has some 8,000 automatic teller machines, making it the largest cash machine network in Spain and the second largest in Europe, said the AFP.

SOURCES:
AFP: “Spain Gets World’s First ‘Contactless’ Bank Machines”
NFC Times: “Spanish Bank Installs ‘First’ Contactless ATMs”

To date, Czech authorities have already seized 5,245 banknotes varying in denomination and value, but the increase doesn’t necessarily translate to an increase in counterfeit notes throughout the country. According to Pavel Zúbek, spokesman for the Czech National Bank (ČNB), the increase in seized notes means police forces are conducting more successful investigations.

“Forgery statistics are usually influenced by successful police activities against counterfeiters,” Zúbek told The Prague Post, also pointing out that police completed “two big operations” over the past summer.

The counterfeit notes seized this year have ranged from US banknotes, to Euro banknotes, as well as Czech banknotes.

Czech banknotes contain many security features to prevent counterfeiting such as security fibres, printed areas visible only under ultraviolet light, colour-shifting ink and iridescent stripes.

The newest versions of the 500, 1,000, 2,000 and 5,000 Kč notes also have a windowed thread in the center, adding a special effect known as POLE that is visible only with a special devices available to businesses that handle cash.

The ČNB said the general public can also help cut down on counterfeit circulation by being aware of these security features, and is urging people to be more careful when accepting banknotes.

SOURCE:
The Prague Post: “Seizure of Forged Bank Notes On The Rise”

The movement sees grassroots protesters writing messages criticizing their government on banknotes to spread their message in an underground and widespread manner.

The Chinese banknote protests target the government, criticizing their harassment of the spiritual Falun Gong sect, whose followers must be actively sought out by police. The messages on the banknotes- typically written by Falun Gong supporters and followers – are what The Observers call “innovative ways to communicate their message without giving themselves away.”

Pictures on The Observers website show several photos of marked bills with message like “Falun Gong is good, the world knows it, the world condemns the [Communist Party of China]” and “Believe that freedom is not a crime, Falun Gong makes people better.”

Labeled “The Green Movement” in Iran because the messages were written in predominately green ink, the subtle protests there opposed the reelection of Iranian President Mahmoud Ahmadinejad in what many deemed a “rigged election” at the hands of the government.

As a way to combat this movement, the Iranian government deemed any graffitied banknote invalid and ordered citizens to exchange their “green” banknotes for “clean notes” by the beginning of 2010.

So far, the Communist Party of China (CCP) has issued no response to the pro-Falun Gong movement on banknotes though their history with the movement in the past has not been passive.

As a relatively new spiritual movement in China (emerging in 1992) the Chinese Communist Party banned Falun Gong in 1999 and deemed it an “evil cult” because its followers largely focused on meditative practices in public and opposed traditional Chinese spirituality.

SOURCES:
The Observers: “The Banknote Revolt Hits China”
“Falun Gong”
Global Paper Security: “Iranian’s Shift Protest Movement To Banknotes”
Global Paper Security: “Iran Deems ‘Green’ Banknotes Invalid”

Funny money: The wacky world of Asian currencies
by La Carmina @ CNNGo.com

#1- India: Thumbs-up and peace sign rupees

India’s one-rupee coin has an image of a hand giving the thumbs up. On the two rupee, the fingers form a peace sign. These coins were designed with the blind in mind, but they’re also useful for the numerically illiterate (just count the fingers.)

#2 – Hong Kong: Plastic dollars
Plastic money is no longer a nickname just for credit cards. In July 2008, Hong Kong issued bright, high-detail HK$10 bills made from polymer, potentially making dirty money a thing of the past: these notes can be washed with water and even soap.

#3 – China: Fake and real Chairman Mao yuan

In China, counterfeit bills sometimes slip into circulation, like the topmost 100-yuan bill. How to tell? Rub Mao Zedong’s jacket. The genuine note has ridges while the fake one is smooth. The black line is also more pronounced on the real deal.

#4 – Indonesia: Big money rupiahs

Quite a few visitors to Indonesia will have spread out their freshly-exchanged currency and rolled around in it, squealing “I’m rich!” It’s not unusual for locals to carry around millions of rupiah. Too bad a 50,000 bill is worth a paltry US$5.

#5 – North Korea: “The Eternal President” on three denominations

North Korean money lives up to the country’s topsy-turvy reputation. Visitors are issued a separate currency: Red banknotes for socialists and green ones for capitalists. The national system is just as confusing. The 100, 1,000 and 5,000 won bills have the exact same Kim Il-Sung design, only in different colors.

#6 – South Korea: Controversy over a historical armillary clock

In 2007, the Bank of Korea released 10,000 banknotes with a Joseon dynasty astronomical clock on the back. Historians went up in arms because the image depicted a similar invention, the Chinese honchonui, and not the 17th century Korean honchonsigye. The bank dismissed their demands for a re-design as nitpicking.

#7 – Macau: The Motherland stakes its claim

Macau was a Portuguese territory until it was handed back to China in 1999. Although Banco Nacional Ultramarino currency is still legal tender, China flexed its muscle by issuing four million 20-pataca banknotes that commemorate the 2008 Beijing Olympics. The press release explains: “In this way, citizens of the MSAR are able to share the joys of hosting such a magnificent international event by the Motherland.”

SOURCE:
CNNGo.com: “Funny money: The wacky world of Asian currencies”

North Korea's won has rapidly depreciated to Chinese traders

Nearly a month after North Korea redenominated its currency at a rate of 100 to 1 (read North Korea changes currency and rates 100 to 1), North Korea changes currency and rates 100 to 1), its international value has also begun to plunge.

Reports from South Korea’s Yonhap news agency this week stated the new North Korean currency was trading in neighboring China at a rate of 1,000 won for 1 yuan (the Chinese currency).

Shortly after the currency shift in early December, Chinese trade rates were steady around 50 to 1. Since then, the value of North Korean won has been rapidly depreciating.

The government of North Korea cited the country’s decade-plus run of economic hardship and increasing evidence of runaway inflation as their reason for redenomination, though many critics agree it was a direct attack on emerging private markets.

Citizens were only given one week to exchange their old currency for new currency in December, and were only permitted to exchange 150,000 won regardless of how much won they owned or had saved.

On New Year’s Day, North Korea banned the use of any international currency within its borders.

SOURCES:
AFP: “North Korea banknotes plunge in value: report”
Argentina Star: “North Korean banknotes find no favour with locals”

Estonia is on track to become the 17th country in the European Union

The European Union (EU) is set to introduce Estonia into the folds of the euro zone by mid-summer 2010.
Marek Belka, the International Monetary Fund’s head for Europe revealed last week that Estonia is on track to fully adopt the single currency.

“I hope and I think there is a high likelihood that the EU will give Estonia the green light for euro adoption in the first half of 2010,” Belka told Reuters in December.

Adopting the euro is not an easy task. Countries who wish to adopt the single currency must meet very specific criteria regarding low inflation, interest rates, debt and budget deficit, as well as currency stability. The decision also has to be backed by EU finance ministers.

Experts and government officials have said, however, that Estonia meets all the necessary requirements, putting them in position to begin the process of introducing the euro as early as July 2010, though a full currency switch probably wouldn’t occur until the beginning of 2011.

“The keyword for the year 2010 will certainly be the decision of adopting the euro and the relevant preparations,” said Andres Lipstokm, the Governor of the Bank of Estonia.

Should Estonia adopt the euro, they will be the 17th country to join the European Union.

SOURCES:
Reuters: “EU to okay Estonia for euro in H1 2010″
KMS Baltics: “Estonia likely to join euro in ‘first half of 2010’”
Baltic Business News: Lipstock: Estonia’s keyword in 2010 will be euro

Since the beginning of the Iranian Green Movement (the ink on the banknotes is often green, and the colour symbolizes the official colour of the opposition), the government has been struggling to deal with the rise of this covert protest movement.

At the beginning of December, The Pro-Democracy Movement of Iran deemed the Green Movement a success saying, “the Central Bank of Iran has tried to take these banknotes out of circulation, but there are just too many of them.”

The Central Bank is now telling people to exchange their graffitied banknotes for “clean” notes by January 8, 2010. After this period, any banknote with writing on it will be considered invalid.

The slogans on the banknotes oppose the recent reelection of Iranian President Mahmoud Ahmadinejad in what many, including Iranian reformist leader Mir Hossein Mousavi, have deemed a “rigged election” at the hands of the government.

Since June, banknotes have been in circulation with messages like “In this country, only the government has freedom of speech. Don’t believe anything you hear,” “Khanmenei the dictator, Ahmadinejad the puppet” and “Death to the Dictator.”

The Green Movement has also reverted to other subtle protest tactics like spray painting on walls and using a rarely observed religious holiday for a three-day strike.

SOURCES:
Bloodwars Magazine: “Iran Bans Graffiti on Banknotes
Banknote News: “Iran to Withdraw Notes with Opposition Slogans.”
Pro-Democracy Movement of Iran: “Iranian banknotes uprising”