MAS destroys millions of new S$2 notes after each Chinese New Year as they exceed circulation demand

[Yueming]

Why don’t give ppl?

just distribute to old folks can liao

 

[BHills]

I am in this thread to laugh at some kum gong kias who erroneously think that millions $ of wealth is destroyed when millions of $2 notes are destroyed by MAS.

Anyone who understands the monetary system would know that destroying the $2 Dollar Notes by MAS are actually only destroying a stash of printed papers and the loss is very little (i.e. the total cost of printing the stash of $2 notes).

Add :
People usually only carry at most a few $2 notes in their wallets. More than 10x $2 notes make the wallet too bulky.

So, after Chinese New Year, people will go to banks to deposit most of the new $2 notes received from CNY Ang Bao into bank accounts (either theirs or their children's).

However the banks cannot give $2 notes for cash withdrawals from their ATMs or branches. For e.g. if a customer withdraws $2000 at a branch, the customer wouldn't want 1,000 $2 notes or any $2 note.

As a result, the banks find themselves with tons of $2 notes which the banks have no use but occupy lots of physical space. Moreover, the tons of $2 notes cannot be left laying around in cabinets or drawers, pose security risk and incur security costs.

As a result, it makes sense that the banks "return" most of the $2 notes to MAS (Board of Commissioners of Currency was merged into MAS) which eventually destroys them because MAS also has no use for the $2 notes which would occupy lots of space and incur security costs if kept. The tons of $2 notes also cannot be used for next CNY because people want only brand new notes to put in Ang Bao. The tons of $2 notes are effectively taken out of circulation when banks are credited in the monetary system with the amount of $2 notes they return and the tons of $2 notes are destroyed. The loss is the printing and distribution costs of the $2 notes and environmental costs.

Currency notes are issued by MAS and therefore are liability of MAS (Currency board or central bank) balance sheet. When the currency notes are returned by a bank to MAS, the bank's account with MAS is credited with the amount. MAS can then destroy the notes and as a result, deduct this amount from its liability from currency issuance. No wealth is lost because it is just a conversion from 1 monetary form (currency notes) to another (credit in bank's account with MAS).

 

[shawntyq]

high chance wont have visiting with this new virus spreading.

why worry?

 

[hound297]

Why need to destroy?? Cannot just keep and reuse for the next year? Then next year no need print mah...

Dollar bills got expiry date one meh? Print how much, also no one knows...

Space constraints probably.

 

[soaresb]

Why need to destroy?? Cannot just keep and reuse for the next year? Then next year no need print mah...

Dollar bills got expiry date one meh? Print how much, also no one knows...

Exactly. Seems that they planned wrongly, then now blame the easiest target. Typical modus.

 

[Goh Chai Fatt]

walao why destroy when i accept them openly?

 

[SmokeBomb]

Exactly. Seems that they planned wrongly, then now blame the easiest target. Typical modus.

I would suspect that...

Because for the past 2 years, the standard reply from banks are, each branch is allocated certain quantity of new notes each day. So finished, means finished... Even for the 'as-good-as new' ones, also limited quantity.
So frankly... there was some form of control already, and I am just a low ses dude, so I am not even talking about changing in the thousands...

I suspect MS may have over-do the whole article giving it like a SJW spin... since there are tons of those SJW terms used.

 

[whuttt]

Space constraints probably.

What space? My pockets always have extra space. Don't tell me so many atm no space to put?
Even they set up those temporary atm machines for new notes also got limitations. Limited withdrawal. Limited timing. Locations so far

 

[soaresb]

I would suspect that...

Because for the past 2 years, the standard reply from banks are, each branch is allocated certain quantity of new notes each day. So finished, means finished... Even for the 'as-good-as new' ones, also limited quantity.
So frankly... there was some form of control already, and I am just a low ses dude, so I am not even talking about changing in the thousands...

I suspect MS may have over-do the whole article giving it like a SJW spin... since there are tons of those SJW terms used.

Yeah, it's funny really once you put them side by side. First they ownself restrict the amount of new notes they will distribute to people because of [favourite reason], next they turn around and blame your festival for making then produce excess notes and harm the environment. Real funny.

 

[mechagnome]

$2 note is plastic, if removed from circulation can put in storage for years. y they destroy something tt can use later? r they toopid?

 

[Optrex]

test balloon lai liao
same pattern as when they tell u don't use straw is good for the environment when in fact it is a cost cutting measure ...
now trying to ask u don't use new notes cos bad for environment
waiting for the day they start to charge us for the cost of printing notes.....
cost of currency shld be borne by the issuer. but nowadays, all trying to put the cost on the users. all these crap started when they start to push ppl to use digital currency...which started with the stupiak ezlink cards....
why shld the ppl pay for the cost of the currency?


Read HWZ Forum Rules!

 

[orhneeorh]

Add :
People usually only carry at most a few $2 notes in their wallets. More than 10x $2 notes make the wallet too bulky.

So, after Chinese New Year, people will go to banks to deposit most of the new $2 notes received from CNY Ang Bao into bank accounts (either theirs or their children's).

However the banks cannot give $2 notes for cash withdrawals from their ATMs or branches. For e.g. if a customer withdraws $2000 at a branch, the customer wouldn't want 1,000 $2 notes or any $2 note.

As a result, the banks find themselves with tons of $2 notes which the banks have no use but occupy lots of physical space. Moreover, the tons of $2 notes cannot be left laying around in cabinets or drawers, pose security risk and incur security costs.

As a result, it makes sense that the banks "return" most of the $2 notes to MAS (Board of Commissioners of Currency was merged into MAS) which eventually destroys them because MAS also has no use for the $2 notes which would occupy lots of space and incur security costs if kept. The tons of $2 notes also cannot be used for next CNY because people want only brand new notes to put in Ang Bao. The tons of $2 notes are effectively taken out of circulation when banks are credited in the monetary system with the amount of $2 notes they return and the tons of $2 notes are destroyed. The loss is the printing and distribution costs of the $2 notes and environmental costs.

Currency notes are issued by MAS and therefore are liability of MAS (Currency board or central bank) balance sheet. When the currency notes are returned by a bank to MAS, the bank's account with MAS is credited with the amount. MAS can then destroy the notes and as a result, deduct this amount from its liability from currency issuance. No wealth is lost because it is just a conversion from 1 monetary form (currency notes) to another (credit in bank's account with MAS).

oredi got the gurka-guarded maximum security currency house huat.. don't use to store notes, used to store gold meh..

and huai burn and not recycle? just print paper and not plastic notes for $2 rah

 

[fatboi666]

notch sure if MAS trying to haolian they can destroy millions of notes, or hinting a certain race being wasteful every CNY need to print new notes

 

[ECyClone]

Add :
People usually only carry at most a few $2 notes in their wallets. More than 10x $2 notes make the wallet too bulky.

So, after Chinese New Year, people will go to banks to deposit most of the new $2 notes received from CNY Ang Bao into bank accounts (either theirs or their children's).

However the banks cannot give $2 notes for cash withdrawals from their ATMs or branches. For e.g. if a customer withdraws $2000 at a branch, the customer wouldn't want 1,000 $2 notes or any $2 note.

As a result, the banks find themselves with tons of $2 notes which the banks have no use but occupy lots of physical space. Moreover, the tons of $2 notes cannot be left laying around in cabinets or drawers, pose security risk and incur security costs.

As a result, it makes sense that the banks "return" most of the $2 notes to MAS (Board of Commissioners of Currency was merged into MAS) which eventually destroys them because MAS also has no use for the $2 notes which would occupy lots of space and incur security costs if kept. The tons of $2 notes also cannot be used for next CNY because people want only brand new notes to put in Ang Bao. The tons of $2 notes are effectively taken out of circulation when banks are credited in the monetary system with the amount of $2 notes they return and the tons of $2 notes are destroyed. The loss is the printing and distribution costs of the $2 notes and environmental costs.

Currency notes are issued by MAS and therefore are liability of MAS (Currency board or central bank) balance sheet. When the currency notes are returned by a bank to MAS, the bank's account with MAS is credited with the amount. MAS can then destroy the notes and as a result, deduct this amount from its liability from currency issuance. No wealth is lost because it is just a conversion from 1 monetary form (currency notes) to another (credit in bank's account with MAS).

Oh...

 

[neutralph]

MAS chief is a Singaporean.

Don't anyhow.

Lets give him the benefit of the doubt huh. *wink

 

[AZE]

That's huai I always said, reduce the cash denominations in circulation.

Only leave
10c coin
$1 coin
$10 note
$100 note

Force the hassle onto the ppl to carry tons of small notes/coins for changes or that they will just use digital payment instead.
Physical cash will also still be available for circumstances that requires it.

 

[wei2008]

Since that hate small notes, why not make a place for retail shops and hawker and restaurant to change with small fee? Every time take out $50 they black face already. Sometime take out $10 note also black face. Think it is hard to get $2 notes for them easily.

 

[icezombie]

y cannot keep and reissue next year?

 

[SmokeBomb]

test balloon lai liao
same pattern as when they tell u don't use straw is good for the environment when in fact it is a cost cutting measure ...
now trying to ask u don't use new notes cos bad for environment
waiting for the day they start to charge us for the cost of printing notes.....
cost of currency shld be borne by the issuer. but nowadays, all trying to put the cost on the users. all these crap started when they start to push ppl to use digital currency...which started with the stupiak ezlink cards....
why shld the ppl pay for the cost of the currency?


Read HWZ Forum Rules!

Maybe in the near future....

MAS....
MAS will imposed additional charge on banks requesting for new notes.

Bank....

Dear Customer, wef from XXXX, the bank will impose a fee for new notes changing.
Every $200 of new notes changed, there will be a fee of XXX imposed.

This is due to increased cost in the managing, processing and administering the changing of new notes due to various external factors that are not within the control of the bank.

 

[ECyClone]

Maybe in the near future....

MAS....
MAS will imposed additional charge on banks requesting for new notes.

Bank....

Dear Customer, wef from XXXX, the bank will impose a fee for new notes changing.
Every $200 of new notes changed, there will be a fee of XXX imposed.

This is due to increased cost in the managing, processing and administering the changing of new notes due to various external factors that are not within the control of the bank.

Like coins deposit / exchange also not free for adults.