The definition of the word demonetized seems a bit unclear to me at the moment. From what I understand and what's written in dictionaries, to demonetize is to withdraw a currency/banknote/coin from circulation and remove it as legal tender. However, two of my modification requests to change a currency to demonetized have been rejected because the referees understood the term as when banks no longer offered to exchange it for valid currency. I have been unable to find this definition of the term in a dictionary and this is where my confusion comes from.
I think we need to differentiate between demonetisation and withdrawal from circulation in the data base. I understand it as follows:
The out-of-circulation date is the date on which a currency is no longer commercially valid, although it can be exchanged at the central bank.
The demonetisation date is the date on which the central bank no longer accepts to exchange the currency. The currency therefore no longer has any legal value.
I apply the following: demonetisation date is the date on which the currency ceases to be legal Tender or if not Legal Tender, the date at which the central bank states that commercial banks are no longer are obliged to acccept the currency in lodgements, though the currency may still be redeemable at its face value at the central bank.
Ireland is a case in point, all pre-Euro Irish banknotes issued by the Joint stock banks or the Central Bank of Ireland are redeemable at their face value without time limit. The only Legal Tender Notes in Ireland pre-Euro were those issued by the Currency Commission and Central Bank of Ireland from 1928-2001.
Northern Ireland is also a (different) case in point, all banknotes issued by the joint stock banks in Northern Ireland are redeemable at their face value without time limit, but all paper notes ceased to be acceptable in any bank other than the bank of issue after a certain time limit (I would have to look it up) once polymer notes were introduced. Northern Ireland notes are not Legal Tender.
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Yes, this certainly has been discussed before but the incorrect definition is still widely used. Since some banknotes in general circulation are not or were never legal tender (Scottish and Northern Irish notes, for example), this cannot be part of the definition. As stated here and in earlier discussions, we need two dates (which could be the same), one for when a piece was withdrawn from circulation (for many this will be when it ceased to be legal tender) and one for when it could no longer be exchanged at face value by the issuer.
That earlier discussion is marked as “accepted” but nothing has happened, whilst other changes have been implemented since.
Former Numista referee for banknotes from Ireland, Northern Ireland, Scotland, Wales and Saint Helena.
My understanding, from a UK perspective, is that demonetisation means that the currency can no longer be exchanged for current currency at a bank.
If a bank will accept it then it is simply “Withdrawn from circulation”.
I believe, though might be mistaken, that only an Act of Parliament can demonitise currency. Whereas the Bank of England, Royal Mint, or an issuing bank in Scotland / NI, can withdraw “their” currency at their pleasure - under specific guidelines of course (e.g. issue notice of intent to withdraw, give a reasonable timescale for customers to exchange etc)
My understanding, from a UK perspective, is that demonetisation means that the currency can no longer be exchanged for current currency at a bank.
If a bank will accept it then it is simply “Withdrawn from circulation”.
I believe, though might be mistaken, that only an Act of Parliament can demonitise currency. Whereas the Bank of England, Royal Mint, or an issuing bank in Scotland / NI, can withdraw “their” currency at their pleasure - under specific guidelines of course (e.g. issue notice of intent to withdraw, give a reasonable timescale for customers to exchange etc)
That's mostly right. The only thing to correct is that the Royal Mint acts as a branch of the Government, so its coins are the ones affected by Acts of Parliament. This isn't just a UK perspective, the same applies everywhere. The biggest problem is identifying the equivalent terms to “demonetize” and "withraw from circulation" in the various laguages and legislations.
Former Numista referee for banknotes from Ireland, Northern Ireland, Scotland, Wales and Saint Helena.
Thanks for adding a little clarity on the RM. I wasn't exactly sure how it worked with coins because of the different relationship between the Government & RM, compared to BoE.
RM being a, technically, independent producer of coins albeit wholly owned by the state. I.e. It is not part of the government, but it is owned by the government.
I wonder what would happen if the Government decided to use a different company to manufacture coins instead. 🤔
But that's a theoretical question for another day.
That's happened before (e.g., the cartwheel penny and tuppence from the Soho mint, the H and KN pennies). The same laws applied. More broadly, it's not an issue that can be entirely ignored, particularly for bank tokens. These are essentially coins but issued by banks rather than governments. Getting all the details right for both dates will be a big job of research. That's why we need to make a start as soon as possible, before even more dates are added without us knowing which type they are.
Former Numista referee for banknotes from Ireland, Northern Ireland, Scotland, Wales and Saint Helena.
