The cost of producing one US dollar note increased from $0.064 to $0.096 in 2010 due to a rise in cotton prices. The cost varies for different banknotes, and comparisons with other countries are difficult. The US Bureau of Engraving and Printing introduced a new budget in 2011, with the most expensive notes being the $20 and $50 bills. The largest denomination note currently in circulation is the $100 bill.
In 2008, the cost of making one US dollar (USD) was $0.064 USD, or 6.4 cents. In 2010, this increased by 50 percent to $0.096 USD per note. The cost of producing one type of US banknote does not necessarily apply to all banknotes. Factors such as the volume of each banknote produced can influence the average cost per finished banknote. Comparisons with other nations in paper money production is difficult, because many nations do not provide information on their production costs.
Learn more about paper currency production in the United States:
Although US banknotes are usually referred to as paper currency, the US dollar and other banknotes are actually made using cotton. A rise in the price of cotton is why the cost of producing US banknotes in 2010 soared to $0.096 USD per note.
Changes in currency production led to the creation of a new budget by the US Bureau of Engraving and Printing that went into effect in 2011. Under the new plan, the $1 USD and $2 USD bills should cost $0.055 USD per note on average, and $5 USD and $10 USD bills would cost $0.099 USD per note. The most expensive notes to produce, under this budget, are the $20 USD and $50 USD notes, with an estimated production cost of $0.109 USD per note.
While larger denomination notes have been produced in the past, the Treasury Department has not issued notes larger than the $100 USD note since the late 1960s.
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