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What does face value mean?

Updated: 9/14/2023
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14y ago

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In banknote terms, the face value of the note is whatever is printed on it - so a 1 dollar note has a face value of 1 dollar.

The note could be worth more or less than this, depending on both devaluation and collectability. Many of the stable "hard" currencies like US Dollar and British Pound are still valid, regardless of age - so an English banknote for 100 pounds from 1776 has a face value of 100 pounds if you take it to the bank of England - the same note, however, would be worth a fortune to a collector. The opposite is true of say a Mexican Peso from 1980 - even though the face value could be 100,000 Peso, the currency has devalued since and the note is worth only 100 Peso if you took it to a Mexican bank and it's relative newness would make it worth only slightly more to a collector.

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