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Just to add to your comment, the highest denomination note in India is worth just $1.5USD. According to the Global Findex by the World Bank [1] 47% of the Indi
by josu 10y ago
Just to add to your comment, the highest denomination note in India is worth just $1.5USD.
According to the Global Findex by the World Bank [1] 47% of the Indian population doesn't have a bank account. And only 22% of the population have debit cards.
I don't know, this seems too extreme to me. Certainly 500 euro notes or 100 dollar bills are very useful in dark markets, but the Rs 1000 note was just worth $15USD. This may end up being just a temporary recall and they will reissue 500/1000 notes in a couple of years.
[1] http://datatopics.worldbank.org/financialinclusion/country/india http://datatopics.worldbank.org/financialinclusion/country/i...
- amzpix 10y agoThe highest denomination note of INR 1,000 is worth about USD 15.
- tgokh 10y agoAnd they'll be introducing a new Rs. 2000 note, worth about $30
- Retric 10y ago> "but the Rs 1000 note was just worth $15USD" So, I think he agrees with you and is just pointing out without the 500 or 1000 note's the 100 is only worth $1.5USD.
- 7Z7 10y agoMaybe I'm misunderstanding, but there is no "without". The new Rs 500 and Rs 2000 notes will cover the difference.
- Retric 10y agoThe new bills have yet to hit the streets, and the old bills don't count as long term stores of value. So, for a little while India is arguably 'without' Rs 500 and Rs 2000 notes. Basically, they are no longer bills but checks with expiration dates.
- intended 10y agoSo I spoke to economists friends asap - and while I share your views, the point added was that wealth is not stored as cash by most people, but as jewelry, assets, cattle and so on.