For Immediate Release

Old and New $20s Are Legal Tender -- Now and Forever

SAN FRANCISCO, November 4, 1998--Comments on a Bay Area radio station this morning have caused some confusion about the newly designed $20 note and the older series $20 notes. The purpose of this advisory is to remind the media that older series $20 notes will never be recalled or devalued. In fact, the United States has never recalled or devalued its currency, and will not do so. Older series $20 bills will continue to be accepted and recirculated as long as they remain in good condition.

Over time, as older series $20 notes wear out and are returned to the Federal Reserve, they are replaced with new $20s. The process is a gradual one, as the average lifespan of a $20 bill is about two years, and old notes in good condition will continue to be circulated along with the new $20s.

The new $20 note entered circulation in late September. It is commonly used in daily commerce and is the bill most often dispensed by automated teller machines (ATMs). The $20 note is the third in the U.S. currency series to include new and modified security features to deter counterfeiting. The Series 1996 $100 note was issued in March 1996, and the redesigned $50 bill was issued in October 1997.