Legal tender

demonetizeddemonetizationdemonetisedLegal Tender ActtenderFirst Legal Tender ActSecond Legal Tender ActcurrentdemonetisationThird Legal Tender Act
Legal tender is a medium of payment recognized by a legal system to be valid for meeting a financial obligation.wikipedia
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Coins and banknotes are usually defined as legal tender in many countries, but personal cheques, credit cards, and similar non-cash methods of payment are usually not.
A coin is a small, flat, (usually, depending on the country or value) round piece of metal or plastic used primarily as a medium of exchange or legal tender.


currenciesforeign currencycoinage
Coins and banknotes may cease to be legal tender if new notes of the same currency replace them or if a new currency is introduced replacing the former one.
Some currencies are legal tender in certain political jurisdictions.


euro areaeuro zoneeuro-zone
Euro coins and banknotes became legal tender in most countries of the Eurozone on 1 January 2002.
The eurozone, officially called the euro area, is a monetary union of 19 of the 28 European Union (EU) member states which have adopted the euro as their common currency and sole legal tender.


Legal tender is a medium of payment recognized by a legal system to be valid for meeting a financial obligation.
In general, the payee is at liberty to determine what method of payment he or she will accept; though normally laws require the payer to accept the country's legal tender up to a prescribed limit.


The closest historical equivalent in the US, other than Confederate money, was from 1933 to 1974, when the government banned most private ownership of gold bullion, including gold coins held for non-numismatic purposes.
It is related to numismatics proper (concerned with coins which have been legal tender), and many coin collectors are also exonumists.

Australian dollar

The Australian dollar, comprising notes and coins, is legal tender in Australia.
It is legal tender in Australia.

Withdrawal of low-denomination coins

withdrawn from circulationdemonetizeddemonetised
The 1¢ and 2¢ coins were withdrawn from circulation from February 1992 but remain legal tender.
In some countries, such as New Zealand, withdrawn coins are declared to be no longer legal tender; in other countries, such as Australia, they remain legal tender indefinitely.

Non-circulating legal tender

Medal-coinmedal-coinsdoes not circulate widely
Some countries issue precious-metal coins which have a currency value indicated on them which is far below the value of the metal the coin contains: these coins are known as "non-circulating legal tender" or "NCLT".
Non-circulating legal tender (NCLT) refers to coins that are theoretically legal tender and could circulate but do not because their issue price, and/or their melt value at the time of issue is significantly above the arbitrary legal tender value placed thereon.


Euro coins and banknotes became legal tender in most countries of the Eurozone on 1 January 2002.
The notes and coins for the old currencies, however, continued to be used as legal tender until new euro notes and coins were introduced on 1 January 2002.


In the People's Republic of China, the official currency renminbi serves as the unlimited legal tender for all transactions.
The renminbi is legal tender in mainland China, but not in Hong Kong or Macau.

History of the British farthing

farthingfarthing (¼d)one farthing
Individual coins or banknotes can be demonetised and cease to be legal tender (for example, the pre-decimal United Kingdom farthing or the Bank of England 1 pound note), but the Bank of England does redeem all Bank of England banknotes by exchanging them for legal tender currency at its counters in London (or by post) regardless of how old they are.
These pieces were made current by a proclamation of 14 November of that year, that made them legal tender to sixpence.

Iraqi Swiss dinar

Swiss dinarso-called Swiss dinar
When the Iraqi Swiss dinar ceased to be legal tender in Iraq, it still circulated in the northern Kurdish regions, and despite lacking government backing, it had a stable market value for more than a decade.
After the Gulf War, the Iraqi government disendorsed the old currency, favoring newly printed Saddam dinars, and the Swiss dinar ceased to be legal tender.

Canadian dollar

In general, Canadian dollar banknotes issued by the Bank of Canada and coins issued under the authority of the Royal Canadian Mint Act are legal tender in Canada.
This gold standard was introduced with the gold sovereign being legal tender at £1 = US$4.86 2⁄3.

2016 Indian banknote demonetisation

demonetisationdemonetizationdemonetisation of ₹500 and ₹1000 banknotes
On 8 November 2016, Prime Minister Narendra Modi announced that existing INR 500 and INR 1000 banknotes would no longer be accepted as legal tender with a view to curb counterfeiting, tax evasion and the parallel economy.
On 8 November 2016, the Government of India announced the demonetization of all ₹500 and ₹1000 banknotes of the Mahatma Gandhi Series.

Cash rounding

Swedish roundingroundeda rounding convention
Although some eurozone countries do not put 1 cent and 2 cent coins into general circulation (prices in those countries are by general understanding always rounded to whole multiples of 5 cent), 1 cent and 2 cent coins from other eurozone countries remain legal tender in those countries.
Cash rounding may be a compulsory legal requirement if such coins are no longer legal tender, or a voluntary practice where they remain in circulation but are scarce or impractical.

New Zealand dollar

The Act came into force in 1967 establishing as legal tender all New Zealand dollar five dollars banknotes and greater, all decimal coins, the pre-decimal sixpence, the shilling, and the florin.
The New Zealand dollar (sign: $; code: NZD, also abbreviated NZ$) (Tāra o Aotearoa) is the official currency and legal tender of New Zealand, the Cook Islands, Niue, the Ross Dependency, Tokelau, and a British territory, the Pitcairn Islands.

Indian rupee

The Indian rupee is the de facto legal tender currency in India.
On 29 January 2014, Zimbabwe added the Indian rupee as a legal tender to be used.


paper moneybanknotespaper currency
Coins and banknotes are usually defined as legal tender in many countries, but personal cheques, credit cards, and similar non-cash methods of payment are usually not.
National banknotes are generally legal tender, meaning that medium of payment is allowed by law or recognized by a legal system to be valid for meeting a financial obligation.

Swiss franc

CHFSwiss francsfrancs
The Swiss franc is the only legal tender in Switzerland.
The franc (Franken, French and Romansh: franc, franco; sign: Fr. (in German language), fr. (in French, Italian, Romansh languages), or CHF in any other language, or internationally; code: CHF) is the currency and legal tender of Switzerland and Liechtenstein; it is also legal tender in the Italian exclave of Campione d'Italia.

Central Bank of Ireland

Central BankGovernor of the Central Bank of IrelandCentral Bank and Financial Services Authority of Ireland
According to the Economic and Monetary Union Act, 1998 of the Republic of Ireland which replaced the legal tender provisions that had been re-enacted in Irish legislation from previous British enactments, "No person, other than the Central Bank of Ireland and such persons as may be designated by the Minister by order, shall be obliged to accept more than 50 coins denominated in euro or in cent in any single transaction."
British banknotes (British Treasury notes, Bank of England notes), and notes issued by Irish banks circulated (but only the first were legal tender) and British coins remained in circulation.


Kingdom of BhutanBhutaneseBootan
The Indian rupee is also legal tender in Nepal and Bhutan, but the Nepalese rupee and Bhutanese ngultrum are not legal tender in India.
The rupee is also accepted as legal tender in the country.

Gold standard

goldgold exchange standardbacked by gold
In 1914, the Banking Amendment Act gave legal tender status to bank notes from any issuer and removed the requirement that banks authorised to issue bank notes must redeem them on demand for gold (the gold standard).
In 1833 however, Bank of England notes were made legal tender and redemption by other banks was discouraged.

Kuwaiti dinar

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Two states, Kuwait and Bahrain eventually replaced the Gulf rupee with their own currencies (the Kuwaiti dinar and the Bahraini dinar) after gaining independence from Britain in 1961 and 1965, respectively.
After liberation, the Kuwaiti dinar was restored as the country's currency and a new banknote series was introduced, allowing the previous notes, including those stolen, to be demonetized.

Euro coins

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Euro coins and banknotes became legal tender in most countries of the Eurozone on 1 January 2002.
Unlike normal issues, these coins are not legal tender throughout the eurozone, but only in the country where they are issued (e.g. a €10 Finnish commemorative coin cannot be used in Portugal).

Reserve Bank of New Zealand

Reserve BankNew Zealand
In the same year the Reserve Bank of New Zealand was established.
The Bank by virtue of the Reserve Bank Act has the sole right of issuing New Zealand legal tender notes and coins.