In the News

Bonfire of the Rupees - De-monetisation in India

Geoff Riley

19th November 2016

It is one of the most dramatic policy decisions in recent years. Last week, Indian Prime Minister Modi announced that from midnight all 500-rupee (£6) and 1,000-rupee notes would cease to be legal tender. His argument was that this reform would help to erase a lot of black market money and help rid India of counterfeit notes used by terrorists. It is not a surprise that there has been a wealth of comment - some supportive, some highly critical - of this move.

Wall Street Journal

This article in the Guardian is highly critical - they claim that "the two cancelled notes account for 86% of all the currency in circulation; over 90% of all transactions are conducted in cash, and over 85% of workers get their incomes in cash."

This Guardian editorial is highly critical of Modi's shock therapy for the Indian economy - read Modi has brought havoc to India

The Financial Times reports that "Until December 30, the notes, worth $7.50 and $15 respectively, can be deposited in bank accounts or exchanged in small quantities over the counter for new currency."

The Times of India is running a live blog on reaction to the decision and the initial fall-out.

Al Jazeerah News - Anger intensifies over India's demonetisation move

India rupee ban: Rural communities hit hard

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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