Banknotes are paper issued by the central or issuing bank and are legal tender, but are not usually considered to be part of the FX market. However banknotes can be converted, in some counties, into FX. Banknotes are normally priced at a premium to the current spot rate for a currency.

generic nickname for the stamps of 1870-94 produced by the National Bank Note Co., Continental Bank Note Co., and American Bank Note Co. They are sub-divided into Large Banknotes and Small Banknotes. Begins with Scott 134.

Central banks are responsible for the issuing of banknotes and oversee design and printing. This also applies to coinage. The bank withdraws notes and coinage when they are being replaced or, simply, worn.