31 Aug, 2007 - Hungary: As of tomorrow, some people in Hungary will suddenly find themselves cash poor, if only temporarily. As of September 1, the National Bank of Hungary's (MNB) decision to withdraw Ft 1,000 banknotes issued before 2006 will become final, meaning that only new Ft 1,000 banknotes, which feature two key security features, can be legally accepted by retailers.

The old Ft 1,000 notes are being withdrawn because of their vulnerability to counterfeiting. They can be exchanged for new banknotes at post offices, banks and savings associations for at least the next six months, and at the National Bank for 20 years.

The MNB recently announced that the gradual withdrawal of the old Ft 1,000 banknotes has gone according to plans, with few of the blue notes remaining in circulation. But they did report that some restaurants, cafés and similar businesses had prematurely stopped accepting the notes, leading the bank to send letters to these businesses reminding them that the pre-2006 Ft 1,000 bills had to be accepted until the end of the month, and that any firm that did not comply would face fines from the country's consumer protection authority.

The new banknotes feature a wavy, copper-colored stripe and an iridescent band on the front, and first entered circulation on April 10, 2006.

Extract from All Hungary News.