The Bank of Portugal (BdP) recovered almost 29,000 banknotes, after having returned 1.4 million euros to citizens who had degraded banknotes, according to the 2023 Monetary Issuance Report.
The BdP has a service in charge of valuing degraded banknotes and coins (for example, in fires, floods or having been buried). After appreciation, a value is given to the holders.
In the 2023 report, the BdP states that last year it valued 28,768 banknotes and returned €1.4 million to its presenters. In 2022, the value had been 1.6 million euros.
Any citizen who has destroyed or mutilated banknotes (damaged by humidity, burned, eaten by animals, among other reasons) can send them to the Bank of Portugal for valuation. To value a euro banknote it is necessary to reconstruct more than 50% of the surface of the banknote, so that the security elements can guarantee its authenticity (in the case of banknotes in shields it was 75%).
If the degraded banknote is valued, it is destroyed and the amount is given to citizens. equivalent.
If the banknotes are unrecognizable, they are considered lost, destroyed and the owner does not receive any compensation.
All cases of destroyed banknotes that arrive at the Bank of Portugal for recovery are reported to the Financial Information Unit of the Judicial Police (PJ) and the Central Department of Investigation and Criminal Action (DCIAP), to prevent possible crimes.
When the 2008 banking crisis hit and there were fears of bank collapse and loss of savings, many people withdrew money and kept it at home. A few years later, they went to look for the saved notes and realized they were destroyed. In 2022, on the island of São Jorge (Azores), the fear that the volcanic eruption would destroy homes (as happened in the Canary Islands, in Spain) led many people to look for money saved at home to deposit it in the bank. Then, they realized the condition of the banknotes and many turned to the Bank of Portugal to have them valued.
In addition to the destroyed or mutilated banknotes handed in by citizens, the The Bank of Portugal also values inked banknotes, for example, by accidental shots at automatic bill distribution boxes (known as ATMs) or cash transport bags. The suitcases used by cash transport companies to transport banknotes have intelligent devices that neutralize the banknotes against any strange movement, painting them with ink.
This area of the Bank of Portugal also values coins, although they are much more resistant, and it is also necessary to certify their authenticity and verify that the damage was not intentional.
Source: Observadora
