The Bank of Canada announced that in its 2018 budget, the government
will ask Parliament for the power to revoke the legal tender status of
bank notes that are no longer being produced, and to remove them from
circulation. The bank is not currently authorized to do this.
Analogous to all U.S. paper currency issued since 1861, all notes
issued by the Bank of Canada since it opened in 1935 are still legal
tender and can be spent anywhere. The bank says that the notes will
not lose their face value. While they may no longer be spent in a
store, redemption will be available at financial institutions and the
Bank of Canada itself.
Canada would be the newest addition the roster of countries that
withdraw legal tender status from their currency. The bank mentions in
a press release that central banks in many countries have been doing
this for years, including the Bank of England, the Sveriges Riksbank
(Sweden), the Swiss National Bank, the Reserve Bank of New Zealand,
and the European Central Bank. In many countries that have switched to
the euro, the legacy currencies can still be redeemed by the national
bank, under varying terms and conditions, far into the future.
Canada’s current circulating denominations are $5, $10, $20, $50,
and $100. The ones proposed for withdrawal are the $1, $2, $25, $500
and $1,000 notes from the Series of 1935, 1937, 1954, 1969 to 1979,
and 1986. Not all denominations were printed for each series.
The bank added that the $1 and the $2 notes stopped being issued in
1989 and 1996 when they were replaced by coins. The $25 note of 1935
was a commemorative note. That one, along with the $500 note of the
same year, was discontinued soon after they were issued. The $1,000
note was not issued after 2000.
Connect with Coin World:
up for our free eNewsletter
Like us on
us on Twitter