has announced that the 500 ($7.60) and 1,000 ($15) rupee banknotes will be withdrawn from the financial system overnight. They can now only be converted to Rs 100 (~$1.50) or lower denomination notes, at bank branches or post offices.
The result was bank runs and people desperate to convert currency. India’s economy is based primarily in cash, and the liquidity crisis for the elderly or people not able to convert their currency because of logistical challenges has the potential to lead to a social crisis on a scale that is hard to predict.
Economists say the move will be beneficial in the long run, as it is targeted at weeding out tax evasion and corruption. Unaccounted money makes up nearly a fourth of the economy.
The banknote ban is very simply a way to facilitate negative interest rates in the future and to make taxation of every note in circulation much easier. It’s also the first step towards a cashless society.
Well CW you predicted another slide today that didn't happen so you were wrong again, you have predicted another one tomorrow there's a 50% chance you will be right, but if not have another go on Monday you may be right then.
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