How Does Currency Trading Work
How Does Currency Trading Work
How does a bank get new currency?
I assume they have to buy it? A one-for-one trade? I wonder what the lead-time on bills is! Also- the government has to give vendors a sample, right? So they can program their machines to accept the nw bills? How does that work?
When banks receive money that have been “outdated” they ship it to the Federal Reserve. The amount of which they send to the Federal Reserve, will be shipped to them inturn. The Federal Reserve burns the outdated money to get rid of it. They then print “new money” which all it is, is replacement money with new dates, and that money gets sent to the bank. Money or “Federal Reserve Notes” are only good for a certain amount of years, I think its seven. When that experation date occurs, thats when this all takes place. Banks are also only allowed to have so much money in the bank at any given time, when the bank gets below that mark the Federal Reserve then sends there money back to them, new currency of course, because they would have destroyed any of the old currency they got from the bank. Thats why if you ever pay attention to the dates on them, u will hardly every see anymoney that is older than 1995.
