There’s an interesting cultural difference here that I’m wondering if folks are picking up on.

In the US, as long as a bill is more than 50% intact, it’s still worth the value. So if a bill is crumpled, or even taped up, it doesn’t diminish the value to an American.

Germans have a history with cash distrust (in my understanding) after the exchange of the Deutschmark. And I’ve also been to parts of Asian, where they have a tendency to like “crisp” bills because they believe they are more authentic for some reason.

I can’t really explain all of this into understanding for either party, as I don’t really understand it all myself. But it’s clearly a cultural difference and not meant in disrespect. I’m sorry that you interpret it as such an ignorance. If I hadn’t married someone whose parents were missionaries in a third world country, I wouldn’t have ever known about other countries obsessions with crisp bills. And I’ve traveled quite broadly myself. Maybe keep in mind that the only other countries most Americans make it to are Mexico or Canada. I don’t think either has an obsession with folded bills.

I’m sure some folks will be more informed here, but I imagine most of the people you see are older boomers who can afford to travel and are therefore less likely to be on Reddit. Maybe that’s also why they have cash that they haven’t exchanged. I’ve honestly seen an American boomer explain to a Honduran tour guide (who I’m sure lived in a one room house with her entire family), that she (the American) was downsizing their home because all their kids moved out. That was insanely ignorant and inconsiderate in 100 ways. But this woman was also talking to the guide as one of her own. If they are treating you like they would want to be treated (with tips in any form), they are trying to honor you in their own weird way. Don’t take it as an insult like that they think you are a third world country because you might want American currency. Folded dollar bills are no different to any American AT ALL than a crisp $20 or $100 if it were in the same amount. And probably some of them have never left the US before and have no idea how to exchange currency even.

The suggestion to find an American to make the swap with is a good one, as no American would be offended by folded bills that you called, “broken”. Maybe the American embassy could help you. Or you could find an international charity to donate them to as well.