Understanding the condition of banknotes is essential for collectors and dealers. Here’s an overview of the classifications:
Ranking of Banknote Conditions
How to classify banknote conditions?
UNCIRCULATED (UNC):
- A perfectly preserved note, never mishandled by the issuing authority, a bank teller, the public or a collector.
- The paper is clean and firm, without discolouration.
- Corners are sharp and square, without any evidence of rounding. (Rounded corners are often telltale signs of a cleaned or “doctored” note.)
- An uncirculated note will have its original natural sheen.
ABOUT UNCIRCULATED (aUNC or AU):
- It’s a virtually perfect note, with some minor handling.
- However, there may be evidence of bank counting folds at a corner or one light fold through the centre, but not both.
- An AU note cannot be creased, a crease being a hard fold that has usually “broken” the surface of a note.
- The paper is clean and bright with its original sheen.
- There are no rounded corners.
EXTREMELY FINE (EF or XF):
- It is a very attractive note with light handling.
- It may have a maximum of three light folds or one strong crease.
- The paper is clean and bright with an original sheen.
- Corners may show only the slightest evidence of rounding.
- There may also be the slightest sign of wear where a fold meets the edge.
VERY FINE (VF):
- It is an attractive note but with more evidence of handling and wear.
- It may have several folds, both vertically and horizontally.
- Paper may have minimal dirt or possible colour smudging.
- The paper itself is still relatively crisp and not floppy.
- There are no tears in the border area, although the edges do show slight wear.
- Corners also show wear but not full rounding.
FINE (F):
- It is a note showing considerable circulation with many folds, creases, and wrinkles.
- The paper is not excessively dirty but may have some softness.
- The edges may show much handling, with minor tears in the border area. The tears may not extend into the design.
- There will be no centre hole because of folding.
- The colours are clear but not bright.
- A staple hole or two would not be considered unusual wear on a Fine note.
- However, the overall appearance is still desirable.
VERY GOOD (VG):
- It is a well-used note, abused but still intact.
- The corners may have much wear and rounding, and tiny nicks and tears may extend into the design.
- Some discolouration may be present, staining may have occurred, and a small hole may be seen at the centre from excessive folding.
- Staples and pinholes are usually present, and the note itself is quite limp, but NO pieces of the note are missing.
- A note in VG condition may still have an overall attractive appearance.
GOOD (G):
- It is a well-worn and heavily used note.
- The typical damage from prolonged circulation includes strong multiple folds and creases, stains, pinholes and/or staple holes, dirt, discolouration, edge tears, a centre hole, rounded corners, and an unattractive appearance.
- No large pieces of the note are missing.
- Graffiti is commonly seen on notes in Good condition.
