RE-ALIGNING AND RE-DENOMINATING CURRENCIES GLOBALLY

WE HAVE BEEN TALKING ABOUT THE RE-ALIGNING OF THE FINANCIAL SYSTEM WELL INCLUDES THE RE DENOMINATING OF MANY CURRENCIES GLOBALLY. SO LET’S TAKE A LOOK AT THIS BUT BEFORE WE DO LET’S REFRESH OUR MEMORY ON WHAT EXACTLY BLACK MONEY IS.

What is ‘Black Money’
Black money is money which is earned through any illegal activity controlled by country regulations. Black money proceeds are usually received in cash from underground economic activity and, as such, is not taxed. Recipients of black money must hide it, spend it only in the underground economy, or attempt to give it the appearance of legitimacy through money laundering.
http://www.investopedia.com/terms/b/black-money.asp#ixzz4N5PeDXST

THIS BLACK MONEY IS VERY COMMON IN COUNTRIES THAT STILL HAVE NOTES WITH MANY 000’S ON THEM SO THIS IS ONE OF THE THINGS THAT IS BENG CLEANED UP AS PART OF THE ANTI MONEY LAUNDERING LAWS AND IN A BID TO CURB CORRUPTION AND MAKE EMERGING ECONOMIES MORE ATTRACTIVE TO THE INTERNATIONAL FINANCIERS THAT ARE TRYING TO PUT PRIVATE CAPITAL TO WORK.

ALL CURRENCIES HAVE TO BE ON THE SAME PAGE AND FOLLOWING THE SAME LOOK. SO HERE WE HAVE INDIA BEING ADDED TO THE LIST OF OTHER CURRENCIES THAT HAVE RESTRUCTURED THEIR NOTES. LET’S LOOK AT THIS AND IN DOING SO IT WILL HELP US UNDERSTAND HOW THE REMOVAL OF THESE NOTES WILL BE HANDLED. SO FAR ALL HAVE BEEN FOLLOWING THE SAME RULES AND II THINK INDIA WILL BE NO DIFFERENT.

Black money: RBI set to scrap Rs 1,000 currency note?
http://www.financialexpress.com/industry/banking-finance/black-money-rbi-set-to-scrap-rs-1000-currency-note/416223/

It was almost two years back that the Reserve Bank of India (RBI) had announced its plan to phase out all currency notes issued before 2005. The central bank gave three-month time to exchange old notes for new, after which all such kind of exchanges, particularly for larger denominations, would need address proof and identity. The step was taken apparently to block fake notes, as they were mostly from pre-2005 vintage. However, did black money have anything to do with it?

PERHAPS SOME SARCASM IN THAT LAST LINE BUT SEE THEY ARE ALSO ENFORCING THE “WHERE DID YOU GET THIS” RULE AS A PART OF THE ANTI MONEY LAUNDERING ACT.

Since it was a pre-election season, there was always a fear about the large flow of illicit money during polls. RBI had the pressuring of going easy. It extended the deadline to turn in old notes beyond 2014 general elections. Certainly, the central bank would have denied any connection of its deferral to polls.

Currency notes are the preferred mode for moving of illegal money. During election time, money spend in India is far more than prescribed official limits, the issue which the Election Commission has raised time and again, the opinion added.

In most countries, the role of cash is diminishing. Instead of it, Credit and debit cards, prepaid cards, digital wallets, online money transfers are being encouraged. In India too, most transactions are now done electronically.

INDIA IS A BIT MORE ADVANCED IN DIGITAL WALLETS AND ALONG WITH THE CURRENCY RESTRUCTURING WE WILL BE SEEING THE DIGITAL WALLETS COMING ONBOARD IN EMERGING NATIONS.

According to an opinion that appeared in the live mint website, the granting of payments bank licenses along with the coming up of Internet will lead to speedy proliferation of digital and mobile payments, and a smaller role for cash. Even microfinance companies in India have moved to cashless disbursal and collection.

The opinion, therefore suggest that both Rs 500 and Rs 1, 000 notes be phased out from the country. It argues that discontinuation of the Rs 1,000 rupee notes will surely make an impact on the black money stock. Therefore, It is time has come to bid adieu to the big note.

YES VERY GOOD SO WE CAN ALL KEEP OUR EYES OPEN FOR WHO ELSE IS RESTRUCTURING THEIR NOTES. THIS WILL HELP US TRACK THE PROGRESSION OF THE MONETARY RE-ALIGNMENT.

13 thoughts on “RE-ALIGNING AND RE-DENOMINATING CURRENCIES GLOBALLY

  • Ron

    Wouldn’t ypu think Vietnam would be changing their notes soon?

    • MY LADIES

      I DON’T KNOW ABOUT SOON BUT FOR SURE THEY WILL ALSO FOLLOW EVERYONE ELSE.

  • Ricahrd

    Thanks for framework of info.

  • Trident704

    India is certainly on the leading edge of progress; I believe, as BREXIT affected the pound, other currencies are in the process of finding their realistic value, especially those originating in emerging markets. All part of the new global financial reality, unfolding right in front of us, at what sometimes seems to be a dizzying pace.

  • Joseph Toner

    Well My ladies one of the big reductions or deletions was the Euro. The 500 Euro note. The BBC reported this story last May 2016. Although the note has still not been withdrawn as legal tender the issue of new 500 notes has stopped. This all revolved around crime and how the proceeds of crime were easier to move around in larger size notes.

    There is an example out on the web if you search to see the size of a suitcase needed to transport say 1 million Euros using 500 notes and 1 million USD using $100 notes. The simple arithmetic is either 2,000 Euro notes or 10,000 USD bills. The crooks know the logistical answer.

    Now it appears the authorities are finally catching on.

    European Central Bank to withdraw €500 note http://www.bbc.co.uk/news/business-36208146

    In the UK the separate countries do have the freedom to select the banknote size. The largest denomination bank note is the £100 note. These are used In Scotland and Northern Ireland. Though in England the Bank of England only produces the £50 note as the highest denomination.

    So as the currencies become realigned it makes sense to reduce the value size, to combat possible nefarious dealings in currency.

    Finally with the advent of digital currency it surely will curtail the potential for dealing in large quantities of cash and attempting to evade government authorities through money laundering. Cash business will continue for years to come but the days for crooked cash dealing are surely numbered.

    As the digital monitoring of cash develops and accountability for even a single dollar can be traced through multiple transactions then that will allow the authorities to better police the flow of money and assist in the identification of sourcing the flow of funds. Thus allowing for peace of mind in all of our financial transactions.

    • MY LADIES

      EXCELLENT WORK JOSEPH, IF ECONOMIES ARE TO BE SUSTAINABLE THEY ALL NEED TO BE PROPORTIONATE TO EACH OTHER. THANK YOU FOR BRINGING BACK THE EURO PIECE.

    • MY LADIES

      THANK YOU JOSEPH FOR BRINGING THIS BACK, THIS IS A GOOD EXAMPLE OF ECONOMIES GETTING THEIR CURRENCIES PROPORTIONATE TO EACH OTHER IN ORDER TO BE MORE SUSTAINABLE.

      GOOD JOB.

  • Joseph Toner

    Here is another story that I remembered after I had posted the previous post.

    It makes for interesting reading and a few folks have attempted to claim ownership, but it almost beggars belief the amount of cash just sitting on pallets in a Moscow airport remaining unclaimed.

    Is Saddam Hussein’s fortune in a warehouse in Moscow? Mystery over £16.75bn piles of cash left at airport for six years

    http://www.dailymail.co.uk/news/article-2437208/Is-Saddam-Husseins-fortune-warehouse-Moscow-Mystery-16-75bn-piles-cash-left-airport-years.html

    • MY LADIES

      HHAHAHAA..THANK YOU JOSEPH AND I APPROVE THIS POET FOR 2 REASONS, THE FIRST REASON IS TO SAY WHEN WE READ THINGS BEWARE OF SENSATIONAL HEADLINES, DROP THE HEADLINE INTO GOOGLE AND SEE IF THERE IS ANY THING ELSE PRINTED ON THE SUBJECT. IN THIS CASE THIS WAS PRINTED IN 2013 AND I’M SURE IT’S JUST SENSATIONALISM.

      THE SECOND REASON I APPROVE THIS IS TO MAKE THE POINT THAT THIS IS A GREAT EXAMPLE OF “BLACK MONEY”

      THANK YOU AGAIN JOSEPH FOR PARTICIPATING, IT IS APPRECIATED.

  • Joseph Toner

    More from the Indian sub Continent:

    Will India’s tax evasion amnesty scheme curb ‘black money’?
    Who knows but at least they are attempting to address a very big and real issue.
    http://www.bbc.co.uk/news/world-asia-india-37640399

    • MY LADIES

      THANK YOU JOSEPH LET’S DO A POST ABOUT THIS OK? THIS IS A GOOD TOPIC TO EXPLAIN.

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