Grading Banknotes

Grading Standards

Banknote Grading

Banknote Grading is a subjective topic, that will vary from person to person. While there are grading companies that can break this dilemma, there will still be some doubts. The grading firms still rely on the perspective of the person assessing the banknote, this is subjective to his/her own perspective following their company standards.

While there is no “gold standard” for grading banknotes, we can at least agree on obvious observations. As such, when you see folds or creases, or some repair done to the banknote, the grading scale becomes clearer. In this example the banknote can fall between Good to Fair (see chart below). Whereas the new released notes from a bank, will notably be between Uncirculated to About Uncirculated.

Below is a good measure to grade banknotes. While these are also subjective, they pretty much follow the IBNS (International Banknote Society) standards.

	Edges	Corners	Folds & Creases	Paper & Color	Tears	Holes	Missing Pieces
UNC Uncirculated	Sharp Edges must be maintained.	Sharp Corners must be maintained.	Paper must be smooth and crisp. No wrinkles or creases allowed.	Paper must be clean with original sheen. Colors must be fresh and unfaded.	No tears allowed.	No holes allowed.	No missing pieces allowed.
AU About Uncirculated	Sharp Edges must be maintained.	Sharp Corners must be maintained.	No creases allowed. May have either 1 slight bend in center, OR 1 counting fold.	Paper must be clean with original sheen. Colors must be fresh and unfaded.	No tears allowed.	No holes allowed.	No missing pieces allowed.
EX/XF Extremely Fine	There may be the slightest sign of wear where a fold meets an edge.	Very slight corner rounding.	2 slight bends or 1 crease allowed. Slight wear where a fold meets the edge.	Minimal dirt and color smudges. Paper must be relatively crisp.	No tears allowed.	No holes allowed.	No missing pieces allowed.
VF Very Fine	Edges may show slight wear.	Corners may have wear but not be fully rounded.	Moderate creases are typical	Minimal dirt and color smudges. Paper must be relatively crisp.	Edge tears must not enter the border of the design.	No holes allowed.	No missing pieces allowed.
F Fine	Excessive handling on edges and corners typical.	Will typically show rounding on corners.	Many folds, creases and wrinkling.	Not excessively dirty. Colors dull. Paper has some softness.	Minor tears into the border area, but may not extend into the design	No center holes allowed. 1-2 Staple holes may be allowed.	No missing pieces allowed.
VG Very Good	Much wear along edges evident.	Will typically show rounding on corners.	Many folds, creases and wrinkling.	Some discoloration and stains present. Paper may be quite limp	Minor tears may extend into the design.	Small center hole allowed. Staple and pin-holes are usually present.	No missing pieces allowed.
G Good	Much wear along edges evident.	Will typically show rounding on corners.	Multiple folds and creases found throughout.	Paper probably quite limp. Colors may be faded. Writing on note is common	May have several tears.	Center hole may often present at intersections of creases. Staple holes may be present.	Small pieces may be missing.
F Fair	Much wear along edges evident.	Will typically show rounding on corners.	Many folds, creases present	Paper probably quite limp. Colors may be faded. Writing on note is common	May have several edge tears.	Center hole may often present at intersections of creases. Staple holes may be present.	Larger pieces may be missing.
P Poor	Edges may have been trimmed.	Corners rounded, may be torn off	Many folds, creases present	Paper totally limp and dirty. Colors usually faded and design hard to see. Writing on note is common.	May have several tears.	Center hole may often present at intersections of creases. Staple holes may be present.	May have large pieces missing. May have tape.