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Why they still print $2 bills – bonus from The Two Dollar Bill Documentary

The $2 bill is one of the least printed notes that are made, but the fact is they’re still printing them! You can go to the bank and purchase them brand new. I’m always surprised that the Bureau of Engraving, when I hear they’re printing more $2 bills, I wonder why. The Federal Reserve definitely is the one who decides when it’s the right time for the Bureau of Engraving and printing to do another printing of the twos. They make the decision which Federal Reserve banks need how many of each denomination. As an example for this two – this is an Atlanta district F is the Atlanta bank and so the Federal Reserve actually is the one who determines based on the data that is collected what are the notes that we would produce and then where we will actually ship those notes to – which district bank.

Notes are ordered by the Federal Reserve based upon a number of factors. There’s the overall money supply that the Federal Reserve wants to maintain in circulation. That factors in along with demand. There are many people who love the two-dollar bill and the government is happy to provide it for them.

There’s a passionate collector base. Right now it’s probably more than half the demand is for collectors. Probably there is some hoarding factor in the two-dollar note which also contributes to demand. People have a tendency to want to hold them and hoard them because that misconception that they’re so rare. So if they’re being held onto they’re not out there in circulation and therefore there’s a demand to print more. In addition to that the government has to replace worn out bills.

Generally if it’s old and worn out they’re going to send that back to the Fed and have a new one printed up for them. I would imagine that anything that is marked on a note would be grounds to withdraw it from circulation, so as notes are removed from the circulation pool, new notes have to go in. That and the money supply that I mentioned will allow the Federal Reserve to come up with a figure for how many notes they order from the Bureau. You know if they print a lot and people don’t demand them they can just hold them in inventory and you know it’s not a large inventory cost so people will eventually demand them and then they can just ship out their inventory.

But the only way that a $2 note which has not been in active circulation will become more of a general circulation note is for people to start asking for them, and if there’s a demand, the supply will increase and they will be out there in circulation. you
Why they still print $2 bills – bonus from The Two Dollar Bill Documentary