In many countries of the world, steps like demonetization or demonetization have been taken decades ago.
Today it is 6 full years of demonetisation. On November 8, 2016, Prime Minister Narendra Modi took this historic step to curb black money, but do you know that India is not the only country where demonetisation was done. In many countries of the world, steps like demonetization or demonetization have been taken decades ago for many reasons like improving the economy, curbing black money. Demonetization first happened in America 149 years ago.
Demonetization of America 1873
This is called the first demonetization in history. At that time, silver coins were used in place of notes in America, but through demonetization, silver coins were discontinued and gold coins were made legal tender. This affected the money supply in the US economy. Later, due to pressure, the Bland Allison Act 1878 was introduced, which gave back the status of currency to silver coins.
India’s first demonetisation 1978
The demonetisation in 2016 was not India’s first demonetisation. Before this, the decision of demonetisation was taken in 1978 as well. In that era too, a decision was taken to ban notes of 500, 1000 and ten thousand to curb black money. But the then Governor of Reserve Bank of India IG Patel was not in favor of this decision. In that era, people were given one week’s time to exchange big notes. However, it did not have much impact on the economy due to low circulation of big notes.
America’s Demonetisation 1969
It is considered to be America’s second and most effective demonetisation. Then-President Richard Nixon declared all currency above $100 illegal. This decision was also to curb black money, which benefited America a lot. This is considered the beginning of the development of America’s strong banking system.
Ghana demonetisation 1982
The 50 Ghanian cedi was banned in Ghana to deal with problems such as tax evasion and excessive cash holding. However, it was a hugely unsuccessful attempt and had the opposite effect. The inclination of the people of Ghana towards foreign exchange increased, as well as people lost confidence in their banking system. Because of this another currency black market flourished.
Australia’s demonetisation 1996
Australia also closed all its paper notes in 1996 to curb black money and give proper direction to the economy. With this, Australia started printing new types of notes. These were made from polymer instead of paper, due to which the life of the notes also increased significantly. With this, Australia also came to be called a business friendly country.
Nigeria demonetisation 1984
In order to improve the economy, the government of Nigeria had decided to issue new notes by discontinuing the old notes. For this, the government started printing the old currency with a new color. However, the government failed in this.
Bengali