I would like to know what happens with our banknotes when we exchange them in other countries? When I go to Cuba for example and give a $20 bill to get the local currency, what do they do with those bills afterwards?
Stephane Loyer
In the era of electronic transactions, exchanges of banknotes are becoming increasingly rare. For travelers however, it is still very convenient to have a little money in local currencies when arriving at their destination or to pay for minor expenses.
Exchange offices are therefore not disappearing and financial institutions continue to offer foreign currency to meet these needs.
In Cuba or elsewhere in the world, a bureau de change or a financial institution that receives Canadian dollars in exchange for notes in the local currency can use the money it receives in different ways.
The establishment can keep this money in reserve to put it back into circulation when a customer needs Canadian dollars. He can also resell it.
This is what Desjardins does in its foreign exchange activities, explains its spokesperson Jean-Benoit Turcotti.
“At Desjardins, depending on the currency, the state of the cash and certain other criteria, it is possible that a portion of these notes will be kept, put back into circulation, withdrawn from circulation or sold to our supplier of foreign cash. »
“It depends on what currency it is,” he says. If the demand for a foreign currency that is exchanged for Canadian dollars is sufficient, as is the case for the euro or the American dollar, the changer will keep it in reserve to meet the needs of Canadian travelers who will need it before leaving for Europe or the United States.
If the currencies are less in demand, such as the Japanese yen, the changer can keep some of them or resell them to his foreign currency supplier.
Financial institutions all do business with a foreign currency supplier that centralizes the supply and demand for currency notes from all countries.
Tickets of all nationalities therefore travel between buyers and sellers, always using secure transport services, such as those offered by Brinks or GardaWorld.
Not all currencies are available at all times. If a client needs an infrequently requested currency, they should request it in advance, the Desjardins spokesperson said.
It also happens that a currency is difficult to find.
For example, Globex 2000, one of the major exchange offices in Montreal, warned its customers that the Brazilian real, the ruble and the rupees were out of stock last week.