Parrot Reporters
No Result
View All Result
  • Home
  • Top Stories
  • News
  • Politics
  • Business
  • Economy
  • World News
  • Diaspora
  • Other Features
    • Crime
    • Entertainment
    • Tourism
    • Interviews
    • Editorials
    • Opinion
Parrot Reporters

Redesigning of Nigerian Currency ill-conceived

Reporter by Reporter
October 31, 2022
2
Redesigning of Nigerian Currency ill-conceived
Share on FacebookShare on TwitterShare on Whatsapp

Edited by Bola Babarinde
What happened after India eliminated cash
In 2016, India’s two highest-denomination currency notes (Rs 1,000 and Rs 500) were suddenly withdrawn from the market. The demonetization process was planned in secrecy and announced dramatically, as a masterstroke against black money.

The withdrawn notes, amounting to US$320 billion at the time, represented 86 percent of the total currency value in circulation in India. By making the notes worthless almost overnight, the government hoped to destroy large piles of black money hidden away by tax evaders and strike a major blow against corruption and counterfeiting

Two years after demonetization, India’s black money problem did not go away. The economy took a beating, huge financial losses were incurred, and the marginalized poor, least able to withstand adversity, were negatively affected.

Clearly, assumptions proved to be far from reality. Apparently, Indians did not stash away bundles of cash, but held their money in real estate, gold, and foreign currencies. Whatever was held in cash found its way back into the banking system easily. The wealthy sold their currency at discounted rates to money-laundering intermediaries, who then deposited the notes into the banking system through the accounts of low-income Indians.

The cost of printing new notes and managing the demonetization exercise put a sizeable dent in the central bank’s coffers, reducing its annual dividend to 46 percent of what it paid the government the previous year. There was very little counterfeit currency detected among the notes returned.

Demand for goods and services fell immediately after demonetization. Segments that relied on cash transactions — such as agriculture, organized and unorganized retail, and the micro, small, and medium enterprise (MSME) sector — suffered most.

In a largely informal economy where the most vulnerable people still have no access to digital payments, demonetization was an ill-considered, draconian measure that did a lot of damage to the Indian economy. At the end of two years, the benefits did not seem to have been worth the enormous financial losses and suffering.

Culled from strategy-business

More News...

She poured their tea, She swept their floors, And she listened to every word.

She poured their tea, She swept their floors, And she listened to every word.

Lagos and the Pride of Lawlessness: A Call for Responsible Citizenship

Lagos and the Pride of Lawlessness: A Call for Responsible Citizenship

We Are One Africa: A Call for Unity, Love, and Understanding

We Are One Africa: A Call for Unity, Love, and Understanding

LAGOS STATE TO RECRUIT 1,400 NEW KAI OFFICERS TO STRENGTHEN ENFORCEMENT

LAGOS STATE TO RECRUIT 1,400 NEW KAI OFFICERS TO STRENGTHEN ENFORCEMENT

US Cancelled Prof. Wole Soyinka’s Visa

US Cancelled Prof. Wole Soyinka’s Visa

Morgan Omodu: The measure of a life – Abiodun Komolafe

Morgan Omodu: The measure of a life – Abiodun Komolafe

Nigerian drug lords dominating the illicit drug trafficking business in South Africa

Nigerian drug lords dominating the illicit drug trafficking business in South Africa

Tinubu and the significance of yesterday (1) – By abiodun KOMOLAFE

Tinubu and the significance of yesterday (1) – By abiodun KOMOLAFE

About Us

Parrot Reporters is an independent and non-partisan news platform with special focus on Nigerians in Diaspora cum news within and outside the shore of Nigeria.


Our aim is to celebrate the exploits of Nigerians in diaspora particularly in Southern Africa and other parts of the world.

Categories

  • Business
  • Comic
  • Cover Stories
  • Crime
  • Economy
  • Editorials
  • Entertainment
  • Health
  • Interviews
  • Nigerians In Diaspora
  • Opinion
  • Other News
  • Politics
  • Sports
  • Tourism
  • Videos
  • World News

Follow Us

COPYRIGHT © Parrot Reporters
No Result
View All Result
  • Browse
    • Sports

© Parrot Reporters