4 ms·

I don't know about the US, but here in Canada, large EUR denominations (like 500 EUR notes) are exchanged at a lower rate than 100 EUR and smaller denominations

I don't know about the US, but here in Canada, large EUR denominations (like 500 EUR notes) are exchanged at a lower rate than 100 EUR and smaller denominations.

Scoundreller 6y ago
If you can even find someone to take them. My friend had me take them to EU and spend them. FNAC in France had no problem taking them on a large purchase.
- BrandoElFollito 6y ago
  The law in France is that the shop has to accept any bill provided that you pay the exact amount. Price is 534€, you give 500, 20,10, 2, 2 and they have to accept even if they illegally state that thry do not accept 500€ bills. You just say they you are calling the police now and it is over. There is a limit of 3000€ you can pay cash. Above must be card or cheque (or wire transfer).
refurb 6y ago
Do you know why? Is it counterfeit risk?
- hajimemash 6y ago
  Accept a fake $100, bad day. Accept a fake $500, bad week.
  - qwerty456127 6y ago
    $500 is not much for an exchange office, they make much more a day. Nevertheless a fake can cause you trouble as you can be legally obliged to report it and participate in a lot of paperwork. Even more trouble if you fail to detect it before you give it to somebody else.
- smnrchrds 6y ago
  The price gap I mentioned are for currency exchange shops. I am not sure if banks have similar policies. But banks' exchange rates are worse than forex shops anyway, so it may be a case of hidden margin. With that in mind, I think the reason is that people buying Euros are planning to travel to Europe and spend their banknotes. And they probably are buying a couple hundred Euros, not thousands and thousands, just a bit of cash for peace of mind. They wouldn't want to be stuck with such large denominations, because it would be hard to spend them. If anyone is planning to move to Europe or invest in a European company or anything like that, they would use wire transfers, not banknotes. Banknotes are generally just for small amounts used by travellers. Thus, the demand for large banknotes is lower, which causes their price to be lower. I wouldn't be surprised if forex shops have to send the majority of large EUR banknotes physically to Europe to deposit them into a bank account. That would explain the extra cost.
- gonesilent 6y ago
  500 Euro notes got removed from circulation because of money laundering concerns.
  - refurb 6y ago
    That makes sense. Denominations larger than $100 have been eliminated in a lot of currencies because of money laundering. I remember when I received a $1000 bill in Canada in the 90's. Only time I ever saw one. However, I did notice that some countries still have large denomination bills - Singapore (1000, until recently had $10,000 bills), Switzerland (1000), Brunei (10,000).
qwerty456127 6y ago
In some EU countries which run a currency of their own exchange offices would only accept € coins at a fraction of their actual value, only papers Euros are taken serious.

I don't know about the US, but here in Canada, large EUR denominations (like 500 EUR notes) are exchanged at a lower rate than 100 EUR and smaller denominations.

Scoundreller 6y ago

If you can even find someone to take them. My friend had me take them to EU and spend them. FNAC in France had no problem taking them on a large purchase.

BrandoElFollito 6y ago
The law in France is that the shop has to accept any bill provided that you pay the exact amount. Price is 534€, you give 500, 20,10, 2, 2 and they have to accept even if they illegally state that thry do not accept 500€ bills. You just say they you are calling the police now and it is over. There is a limit of 3000€ you can pay cash. Above must be card or cheque (or wire transfer).

refurb 6y ago

Do you know why? Is it counterfeit risk?

hajimemash 6y ago
Accept a fake $100, bad day. Accept a fake $500, bad week.
- qwerty456127 6y ago
  $500 is not much for an exchange office, they make much more a day. Nevertheless a fake can cause you trouble as you can be legally obliged to report it and participate in a lot of paperwork. Even more trouble if you fail to detect it before you give it to somebody else.
smnrchrds 6y ago
The price gap I mentioned are for currency exchange shops. I am not sure if banks have similar policies. But banks' exchange rates are worse than forex shops anyway, so it may be a case of hidden margin. With that in mind, I think the reason is that people buying Euros are planning to travel to Europe and spend their banknotes. And they probably are buying a couple hundred Euros, not thousands and thousands, just a bit of cash for peace of mind. They wouldn't want to be stuck with such large denominations, because it would be hard to spend them. If anyone is planning to move to Europe or invest in a European company or anything like that, they would use wire transfers, not banknotes. Banknotes are generally just for small amounts used by travellers. Thus, the demand for large banknotes is lower, which causes their price to be lower. I wouldn't be surprised if forex shops have to send the majority of large EUR banknotes physically to Europe to deposit them into a bank account. That would explain the extra cost.
gonesilent 6y ago
500 Euro notes got removed from circulation because of money laundering concerns.
- refurb 6y ago
  That makes sense. Denominations larger than $100 have been eliminated in a lot of currencies because of money laundering. I remember when I received a $1000 bill in Canada in the 90's. Only time I ever saw one. However, I did notice that some countries still have large denomination bills - Singapore (1000, until recently had $10,000 bills), Switzerland (1000), Brunei (10,000).

qwerty456127 6y ago

In some EU countries which run a currency of their own exchange offices would only accept € coins at a fraction of their actual value, only papers Euros are taken serious.