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The other day, I attended an incredibly entertaining drag show in Brooklyn, where one of the queens revealed that an audience member had tipped her with a $2 bill. Both she and I were taken aback, as I had always perceived $2 bills to be quite rare. Interestingly, I remember holding onto one in my wallet during the ’90s because it felt so unique and special, adding a certain charm to my collection of money.
In my mind, I had categorized $2 bills similarly to $100 bills — I fully understand they exist, but I rarely encounter them in my day-to-day life, making it hard to consider them as standard currency. However, this experience has prompted me to reconsider that notion.
Exploring the Rarity of $2 Bills: What You Need to Know
To understand the status of $2 bills today, it’s essential to delve into their fascinating history. Remarkably, two-dollar banknotes predate the establishment of the United States itself, as they were authorized by the Continental Congress even before the Declaration of Independence was signed. After the formation of the U.S. government, the first official $2 note was issued in 1862, featuring a portrait of Treasury Secretary Alexander Hamilton. It wasn’t until 1869 that Thomas Jefferson, the third president, began to grace the $2 bill.
Despite their historical significance, $2 bills have struggled to gain widespread acceptance and popularity. They experienced brief surges in the 1890s and 1940s, but overall, their journey into mainstream currency has been quite rocky. For many decades, the $2 bill was often associated with negative connotations related to bribery, prostitution, and gambling. In fact, the New York Times labeled the $2 bill as “Treasury’s jinx” back in 1925, while CNN more recently referred to it as “the unloved child of paper currency.”
This unfortunate reputation has not gone unnoticed, even by the Bureau of Engraving and Printing — the agency responsible for producing U.S. currency. They acknowledge that for much of their existence, $2 notes have been seen as unlucky or cumbersome to use in everyday transactions.
According to a fact sheet from the BEP, “For most of their history, $2 notes have been unpopular, being viewed as unlucky or simply awkward to use in cash exchanges.” Even more disheartening, many of these notes were often returned to the Treasury with corners torn off, rendering them mutilated currency and unsuitable for reissue. The Treasury ceased production of $2 bills in 1966 due to a lack of demand, although they briefly reemerged in 1976 for the Bicentennial celebration, which sparked a slight resurgence.
However, this resurgence was primarily as a collector’s item, rather than as a form of everyday currency. Today, it’s not unusual for people to receive $2 bills as good luck charms or thoughtful gifts, yet they are seldom used in normal commerce.
Various theories attempt to explain this phenomenon, but the outcome remains clear: When individuals do encounter a $2 bill, they typically choose to keep it rather than spend it.
Understanding the Perception of $2 Bills: Are They Truly Special?
While it may be uncommon to come across $2 bills in daily life, it’s essential to clarify that they are not rare. As Steven Roach, a numismatic educator with the American Numismatic Association, explains, “$2 bills are ‘not rare in terms of quantity.’” Each year, the Federal Reserve Board of Governors places an order for various currency denominations from the Bureau of Engraving and Printing based on market demand and the amount of old currency being destroyed due to wear and tear, redesigns, and other factors.
In the 2023 fiscal year alone, the BEP produced approximately 2.4 billion $1 bills, 1.3 billion $100 bills, and 882 million $5 bills. In contrast, they managed to create just 128 million $2 bills, which, while not insignificant, is considerably lower compared to the more commonly circulated denominations.
There are even instances when the BEP does not produce any $2 bills at all in certain years. Notably, this has occurred in 2021, 2020, 2017, 2018, 2013, 2011, 2010, 2009, 2008, 2007, 2005, 2003, 2002, 2001, and 2000. (That’s quite a list!)
According to the latest data from the Federal Reserve, there are currently around 1.5 billion $2 bills in circulation. To put this into perspective, there are 14.3 billion $1 bills and an astonishing 18.5 billion $100 bills circulating the economy.
However, Roach points out that just because the government continues to print $2 bills doesn’t mean they are frequently used for transactions. “It’s not as common as the dollar bill — or $5, $10, $20, $100 — to circulate,” he adds. “[People] don’t see it too often, which leads to the perception that it must be rare.”
Most of the $2 bills that aren’t circulating are stored in bank vaults, making them relatively easy to obtain. As Treglia notes, all one has to do is visit a bank and request them. This accessibility somewhat diminishes the mystique surrounding the $2 bill.
Key Takeaways About the Status of $2 Bills
While $2 bills may appear to hold a special place in the hearts of many due to their rarity in everyday transactions, statistical evidence suggests otherwise. Treglia emphasizes, “People see them, and they’re like, ‘What is this?’” They become collectible items primarily because of their historical significance and unique place in U.S. currency.
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