New Currency - Again

Just about the time we were getting used to the new bills, the Treasury Department announced the introduction of a new $20 bill in late March.

The new currency will have some "subtle" color in the background, meaning that for the first time in modern history a U.S. bill will have a color other than green on it.

The last series of redesigns started in 1996 with the $100 bill. The $50 came in '97, the $20 in '98 and the $5 and $10 in 2000.The reason for the $20 being introduced is because it is the most commonly counterfeited and accepted. Many merchants will not take $50 or $100 bills, but will take the $20's. According to the Secret Service, digitally produced counterfeits have gone from 1% of all counterfeit bills produced in 1995 to 40% in 2002. The process is much too simple. In some cases, good currency is washed clean and digitally printed over in larger denominations. In those cases the water mark will not match the portrait.

Secret Service sources say the best defense against accepting counterfeits is careful examination of the bill. The watermark, the security strip, and the green/black ink will all be on the new currency. One Special Agent, Philip Elston, in an interview by the Philadelphia Inquirer said, "The only way to spot a fake is to look and feel."

Copyright © 2003 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 12, No. 12, 3/03