With a sudden ban of Rs. 500 and Rs. 1000 currency notes and an introduction of new notes worth 2000 and 500, India is coping with demonetisation.
India is not the only country that is adapting to demonetisation. There have been many other countries that have tried demonetisation.
However, there are several other countries that have embraced it in the past.
Though some of these countries have met the purposes, some of them have failed miserably. So, check out the list of countries that have tried demonetisation.
In 1984, during the government of Muhammadu Buhari, this nation introduced the new currency and banned the old notes. Since Nigeria was debt-ridden and inflation had also hit the country, the change did not go well and the economy collapsed.
During 1982, this nation ditched their 50 cedis note. This move was taken to tackle tax evasion and empty the excess liquidity. People were not supportive of this sudden move and, hence, they started investing in physical assets, which obviously made the economy weak.
Pakistan will phase out the old notes, as it will bring in new designs from December 2016. The government had taken this step a year and a half back and the citizens had time to get their currency notes exchanged.
Did you know that Zimbabwe used to have $100,000,000,000,000 note? Yes, a one hundred trillion dollar note! Wow! After demonetisation, the value of these notes has dropped to $0.5 dollar.
North Korea
The demonetisation that happened in this nation in 2010 left people with no food and shelter. This was done to banish the black market.
Soviet Union
The government had ordered a withdrawal of large-ruble bills from circulation to take over the black market. However, sadly, this move didn’t go well with the citizens and it eventually led to the Soviet breakup.
This was the first nation to introduce polymer notes. This was done to stop the widespread of counterfeiting. It did not have any side effects on the economy.
Myanmar’s military invalidated around 80% value of money in 1987. This step was taken to curb the black market. Sadly, this decision led to economic disruption and it also lead to mass protests that killed many people.