Wrinkled Banknote Devaluate Currency Rate?
When people are talking about the impacts the fall of Indonesian Currency rate (IDR) against USD, I did not take it seriously as my work is not directly related to the up and down of domestic currency rate against foreign currencies. But then I really feel like lost a sack of money when I exchanged my Indonesian IDR (RP) into Japanese Yen. I realized that it was not a better time to buy foreign currencies as the Indonesian IDR currency rate is still under pressure of USD at highest point. It is not only IDR but many other currencies face the same situation as well due to the changing of Chinese market policy. Well, whatever is it; I have no better option at the time to by Japanese Yen.
I actually hold some USD in my hand, yet I was afraid if the teller at the money exchange agency could accept it. It is because in mid August 2015 I have visited local money exchange agency in Jayapura, but the agency could not buy my USD in proper rate. The agency offer IDR 12.000 per 1 USD while some other bank notes they offer only IDR 9000 per 1 USD as they find the money is not in smooth condition. Of course, I did not accept the offers as yesterday the currency trading was closed with 1 USD = 14.250,- . I then went to Bank Central Asia (BCA) at the downtown of Jayapura. The bank teller there said that I have to wait for a moment, as the up date currency rate will be open at 10:00 in Local time. After currency trading is open, I than exchange some of my GBP and USD banknotes. Well, I could say that the Bank really offer competitive rate and really satisfied. Unfortunately, the bank also rejected some of my USD banknote with the same reason as the money exchange agency. The USD banknotes as they seems unsmooth and wrinkled. I would say the banknotes are really in good conditions nothing found really bad on the banknotes. But they could not accept it.
I withdrawal the money and keep it until I arrived in Tokyo, Japan. Fore sure, I feel worried when stand in front of money changer office, worried if they could not accept my USD banknotes which has previously rejected. However, when I tried to change it in Tokyo, then surprisingly they give me really up to date rate and accept all my USD banknotes without considering whether the banknotes is in smooth or unsmooth condition. I’m really happy with that. The question is, does the physical condition of banknotes could influence the currency rate? If it so, then why the money exchange agency at Tokyo Station could accept my USD banknotes in really satisfied rate, while the Bank and money exchange agency in Indonesia did not accept it. I might be wrong but what I would say that it is probably just a trick of money changer agency to reduce the value of the nominal rate, so they could gain more benefit from it.