Singapore and Brunei Darussalam have had a currency swap agreement since 12 June 1967. Under the terms of the agreement, Singapore dollars and Brunei dollars can be exchanged for free at face value in both countries. Thus, the currency of one country is accepted as a „usual tender“ in the other country. [31] Prior to the Civil War (1861 to 1865), silver coins were legal tender only up to a maximum of US$5. Before 1853, when American silver coins were weighed by 7%, the coins had exactly their value in metal (from 1830 to 1852). Two 50-cent silver coins had silver with an exact value of $1. An 1849 gold U.S. dollar had $1 worth of gold. With the influx of gold from California mines in the early 1850s, the price of silver rose (gold fell). For example, from 1840 to 1852, 50-cent coins were worth 53 cents when melted. The government could increase the value of (expensive) gold coins or reduce the size of all U.S. silver coins.

With the reduction of 1853, a 50-cent coin had only 48 cents of silver. This is the reason for the $5 silver coin limit as legal tender; Paying someone $100 in the new silver coins would give them $96 in silver. Most people preferred bank checks or gold coins for large purchases. Sometimes coins that are not legal tender in the United States sneak into the system unnoticed and are put into circulation. My husband recently stumbled upon a German coin from the 1940s in a place he never thought he would find it. Between 1861 and 1874, a number of other banks, including the Bank of New Zealand, the Bank of New South Wales, the National Bank of New Zealand and the Colonial Bank of New Zealand, were incorporated by Parliament and authorized to issue gold-backed banknotes, but these notes were not legal tender. Other usual trade restrictions impede the notion of legal tender, which must or cannot be accepted. The most commonly cited example is fines that refuse to pay, except from coin or retail companies that refuse to accept money above a certain amount, such as convenience stores that refuse to accept bills over $20.00. Whether these guidelines were established for reasons of convenience, simplicity of business, concerns about counterfeit bank notes or security, they have been repeatedly upheld by the courts when challenged. The history of banknotes in New Zealand was much more complex. In 1840, the Union Bank of Australia began issuing banknotes under British law, but these were not automatically legal tender. This note is legal tender (literal translation, money in payment of the debt) according to the law.

Maundy currency is legal tender but may not be accepted by retailers and is worth much more than its face value due to its rare value and silver content. Throughout the United Kingdom, the 1 pound, 2 pound and 5 pound sterling coins are legal tender in unlimited quantities. Twentypence coins and fifty pence coins are legal tender in quantities not exceeding 10 pounds; Fivepence notes and tenpence notes are legal tender up to £5; and the cent and twopence coins are legal tender up to 20 pence. [38] Under the Currency Act 1971,[39] gold sovereigns are also legal tender for any amount. Although not specifically mentioned on them, the face values of gold coins are 50p; £1; £2; and £5, a fraction of their value in gold bars. The five-pound coins, although legal tender, are intended to serve as souvenirs and are almost never seen in circulation. Demonetization is the act of stripping a monetary unit of its legal tender. It occurs whenever the national currency changes: the current form(s) of currency are withdrawn from circulation and withdrawn, often to be replaced by new notes or coins.

Sometimes a country completely replaces the old currency with a new currency. Council Regulation (EC) No 974/98 limits the number of coins that may be offered for payment to fifty. [24] The governments issuing the coins must establish the euro as the sole legal tender. Due to the different legal meanings of the term `legal tender` in different Member States and the possibility for contract law to prevail over legal tender, it is possible for traders to refuse to accept euro banknotes and coins in certain euro area countries (the Netherlands, Germany, Finland and Ireland). [25] National legislation may also impose restrictions on the maximum amounts that can be paid per coin or banknote. However, there are some exceptions. In 2018, in the face of devastating hyperinflation, Venezuelan President Nicolas Madura ordered all federal institutions to accept a new electronic currency, the Petro, as legal tender. The Venezuelan Petro is centrally controlled by the Venezuelan government based on its own assessment of the value of its natural resources.

It has been claimed that the Petro is backed by Venezuela`s natural gas, mineral and oil reserves. However, Venezuela`s experience with the Petro has not progressed much, and the Petro, despite its status as legal tender, does not generally circulate in the form of currency. Legal tender laws also determine which institutions create and manage money. In the United States, it is the Department of the Treasury and the Federal Reserve. The Department of Finance currently issues coins and coins in denominations: 1, 5, 10, 25, 50 and 100 cents and $1.2, $5, $10, $20, $50 and $100. Legal tender laws determine which currency is legally acceptable as payment of debts, fees or taxes. Legal tender laws deal specifically with the currency that must be accepted when paying a debt. In the United States, legal tender laws do not require companies to accept dollars as payment. For example, some businesses may not want to deal with high denominations and some businesses may only accept credit card payments. Sometimes monetary issues such as commemorative coins or transfer slips may be issued that are not intended for public circulation, but are still legal tender. An example of such a currency is the Maundy currency.

Some currency issuers, notably Scottish banks, issue special commemorative notes for normal circulation (although no Scottish or Northern Irish notes are legal tender in the United Kingdom). In addition, some standard coins are minted on higher-value dies as „non-circulating“ versions of the coin, which collectors can purchase for an additional fee. These documents are nevertheless legal tender.