Federal Reserve Orders 5.2 Billion Banknotes for 2020

The pace of U.S. currency production in 2020 will slow to its lowest level in at least a decade, approaching 5.2 billion notes valued at almost $146.4 billion, according to a Federal Reserve order submitted to the Bureau of Engraving and Printing (BEP).

As in recent years, most of the banknotes produced will be $1s, $20s and $100s. The order lacked $2 notes as the amount made in 2019 is expected to meet demand for several years. The smaller bills were produced in 2019 for the first time since 2016.

The figures come from a print order approved and submitted by the Board of Governors of the Federal Reserve, the issuing authority for U.S. banknotes. It reflects the board’s estimate of net demand for currency in FY 2020 from both domestic and international customers.

Most of the notes produced in 2020 will be replacements for those taken out of circulation because their condition no longer meets the criteria for recirculation or because they are of older designs. A replacement estimate was not offered in the 2020 order. Replacement estimates totaled 90% in FY2019; 75% in FY 2018; 71% in FY 2017; and 70% in FY 2016.

The Fiscal Year 2020 order total represents declines of 26.7%; 30.2%; 27.3%; and 31.9% from orders placed in 2019; 2018; 2017; and 2016.

"Currency in circulation, which is the direct measure of demand for Federal Reserve Notes (FRNs), continues to increase year after year. The intentional use of accumulated unissued inventory explains much of the decrease in the order relative to FY 2019," the Feb Board said in its latest order statement. "In addition, policy and technology changes continue to result in fewer notes that are prematurely destroyed."

Cost of Making Federal Reserve Notes

The BEP’s cost of making money varies by banknote. For example, government figures for 2019 show production costs per note at:

• 5.5 cents for $1s and $2s — down from 5.6 cents in 2018.
• 11.4 cents for $5s — up from 11 cents in 2018.
• 11.1 cents for $10s — down from 11.7 cents in 2018.
• 11.5 cents for $20s — up from 10.8 cents in 2018.
• 11.5 cents for $50s — down from 12.9 cents in 2018.
• 14.2 cents for $100s — up from 13.2 cents in 2018.

Late last year, the Fed approved a currency budget of $955.8 million for 2019, up $94.1 million, or 10.9%, from operating expenses of $861.7 million in 2018.

Banknote Orders by Denomination

The following table shows how the Fed’s latest order breaks down by denomination, number of notes and dollar value:

FY 2020 Federal Reserve Note Print Order

The BEP operates on a fiscal year that begins on Oct. 1 and ends on Sept. 30. They agency produces all U.S. banknotes, and the order for 2020 includes currency set aside for numismatic products.

For reference, this table shows the banknote order totals placed for fiscal year 2019:

FY 2019 Federal Reserve Note Print Order

Lastly, this Fed chart shows orders from FY 2011 to FY 2020:

The Bureau of Engraving and Printing produces banknotes at facilities in Fort Worth, TX and Washington, D.C. According to government data, there was approximately $1.7 trillion in circulation as of Jan. 31, 2019. This figure includes Federal Reserve notes ($1,655.2 billion), U.S. notes ($0.2 billion), currency no longer issued ($0.2 billion), and coins outstanding ($47.2 billion).