Unlike coins each banknote is unique as it has its very own serial number that can never be repeated. If banknote is damaged during the printing process it needs to be replaced. Since the printing process has become very efficient only a very small number of banknotes require replacement, making replacement banknotes rare.
Replacement banknote is printed as a separate printing run to replace banknotes damaged during the printing process. They are printed consecutively in a very small printing run usually with star like symbol prefix in front of the serial numbers. The replacement banknotes are inserted into the paper money bundle replacing the damaged and discarded banknote.
Banks do this to avoid reprinting banknotes with the same serial number and to ensure the number of banknotes printed remain the same throughout the printing process. Since banknotes should have unique serial numbers, replacement notes have their own unique serial numbers.
Some countries have different standards in marking replacement notes. The most popular method is to use a star either before or after the serial number. Notes with this symbol are usually called “star notes”. Earlier Philippine banknotes used the star symbol but in the 1960’s it was changed to an asterisk symbol.
These replacement notes sell for a higher premium than the face value. Banks usually reserve some star notes for local coin dealers and people who know the rarity of these banknotes usually keep them.
|10 Pesos, 1933 Bank of the Philippine Islands Note|
|10 Pesos, 1921 Philippine National Bank|
|1 Peso, 1936 Treasury Certificate|
|2 Pesos, 1944 Treasury Certificate VICTORY Note|
|20 Pesos, 1944 Treasury Certificate VICTORY Note|
|10 centavos fractional note, English Series|
|20 centavos fractional note, English Series|
|10 Pesos, English Series|
|1 Peso, Pilipino Series|
|RARE Solid Number and Replacement Banknote. 2 Pesos, Ang Bagong Lipunan Series|
|There is a higher demand for overprint on replacement banknote. 10 Pesos, New Series|
|500 Pesos, New Series|
|20 Pesos, New Generation Series|
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Sources: Barya at Perang Papel blog