Check your wallet: Rare paper bills to lose legal tender status
A Canadian $1,000 bill will soon be worth a lot less – or potentially a lot more – than its face value under the 2018 federal budget.
A line in the budget shows the Liberals are planning to strip legal tender status from outdated Canadian bank notes, so $1, $2, $25, $500 and $1,000 bills will no longer be valid in cash transactions.
The government does not currently have the power to revoke legal tender status, but it plans to change that in order to remove outdated bank note denominations from circulation. The legacy bills will no longer be usable in day-to-day transactions, although banks will accept them at full value, the Bank of Canada (BoC) says.
No timeline has been set for the change, but the BoC says it will not happen “overnight,” and nothing can happen until the necessary legislation is passed on Parliament Hill. It says banking institutions will continue to accept the affected bills for a period of time, after which they’ll need to be sent directly to the BoC for redemption.