November 19, 2003 -- The greenback has a new front. The new US $20 bill will got a bit of a "Queer Eye" makeover last month, trading in its somber green look for peach and blue pastel accents. Those interested in details should check www.moneyfactory.com.
The first new bills hit the street on Oct. 9, and at this point we're assuming most people have seen them. The new cash goes first to big banks in major metropolitan areas, then to smaller banks and finally into ATMs. The reason for change isn't aesthetics, but security. Color "adds complexity" to the bill, making it more difficult to counterfeit, according to the Bureau of Engraving and Printing, the government agency responsible for designing US bills. The BEP expects to change the designs of $50s and $100s within the next two years, adding different colors to what will become a rainbow of cash.
Why should travelers care? More than 60% of US currency is held abroad, according to the Treasury Department. A few countries, such as Ecuador and Panama, use dollars as a legal second currency. Merchants in Russia, Peru, Turkey and Argentina price many items in dollars and may accept dollars as payment. (You'll usually get a better price if you can pay the local currency, though.) Then there are countries such as Iran and Burma, where you can't get their local currency at a decent rate outside that country, and must bring in dollars to exchange.
If you're traveling to an exotic land, we suggest you check out the money page of the appropriate Frommer's destination guide on this site for more information and that you get in touch with the tourist board for your destination to find out what kind of currency to bring. (to find any tourist board, go to this worldwide directory at www.towd.com.
Some general tips on the new currency:
- Travelers to Europe, Australia, Northeast Asia, Canada, Mexico and places with solid economies and banking systems shouldn't be bringing dollars anyway. Instead, convert a bit of money (say, $100) to local currency before you leave the US, and use cash machines in your destination country to get most of your foreign currency. You'll get a better rate from an ATM than from a moneychanger.
- Travelers to Latin America (excluding Mexico) should avoid the new $20s, says Judy Martin of the Eucadorian tourist board. Ecuadorians and Peruvians are very picky, and will refuse crumpled, damaged or unfamiliar bills, she says. Fernando Carbone, one of the US's premier Argentina specialist travel agents (www.1800argentina.com) agrees. He just got back from a trip to Argentina, he says, and the Argentinians he spoke with had no idea the color of money was changing. Stick with the slightly older greenback design, he says.
- Travelers to Russia should bring $100 bills, not $20s, according to a spokeswoman for the Russian tourist board in New York. While Russia is "aware" of the changes in the $20, you'll get a better rate on $100s and avoid the controversy, she said.
We'd advise that travelers to other destinations stay away from the new $20s for six months or so, until public education campaigns get a chance to run their course. If you must bring US cash, bring new $50s or older $20s.
- If you absolutely need to change the new $20s and are finding them refused, look first for Travelex (www.travelex.com/usa), a currency exchange firm with offices in 31 countries. They're working with the US government to get the word out on the new money. Branches of Citibank (www.citibank.com/locations) in 46 countries are also excellent bets for converting your new cash. Finally, offices of central or national banks overseas are more likely to know about the new cash than individual merchants are.
- If you're a foreign tourist coming to the US with older bills, don't fret. Your old money will still be usable. US bills never become obsolete; they're just taken out of circulation and replaced with new ones as they're returned to banks in the natural course of their "lives." But keep your eyes out for the new $20s -- they make great collector's items!
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