Which countries follow the footsteps of India for demonetization?

Demonetization at global level.

You can either call it the “Modi” effect or the need for different nations and countries to follow the footsteps of India to curb black money in the form of demonetization. Neither India was the first to opt for it, nor the last one to go for it.

After 8th November (day of announcement):

Venezuela has opted for this policy and under this, 100 Bolivar note will be de-commissioned as announced by the President of Venezuela, Nicolas Maduro. The reason behind them to opt for this is hyper-inflation (high and consistent increase in prices of goods) and thus, the value of the Venezuelan currency is devaluing day by day and also to curb smuggling. Venezuela is also suffering from acute shortage of goods and services in their country which again raised the prices.

Australia is also going to opt for this and will demonetize $100 notes. $100 currency consist of about 300 million out of the total currency and it consist abut 85-90% of its currency. The reason behind such an adoption is that 1.5% of Australia’s GDP consist of black economy but they face low or mild inflation. However, Australia had opted for plastic money in 1996.

Also, many countries that have already opted for this scheme are as follows:

  • Pakistan: Opted for this in June 2015 and demonetized Rs.5 and Rs.500 but the result has messed up the situation and made it worse than what it was before demonetization.
  • Nigeria: Opted for this in 1984 and the result was a big failure for the country.
  • North Korea: Opted in 2010 and failed miserably due to dictatorship of Jim Yong kim, bad harvest and high inflation.
  • USA: Opted for this in 1969 and the result is a big success as even today $100 bill is used widely. And many more.
Which countries follow the footsteps of India for demonetization?
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