Countries Have Tried Demonetisation

There are many countries have tried demonetisation, However from the several countries some of have met the purpose, and some have failed the purpose in the past.

1. Britain

Before 1971, pond, sheling and pens currency used to be circulate in Britain but to bring uniformity in currency government stopped circulation of old currency in 1971 and bought coins of 5 and 10.

2. Ghana

Due to sudden move by the government to tackle tax evasion and empty the excess liquidity but people were not supportive for step taken by the government and they have started investing in the physical assets and foreign currency and resulted country economy weak.

3. Nigeria

This nation introduced the new currency and banned notes in the government of Muhammadu Buhari, He issued new currency notes with the new colours so that old notes would be rendered unusable within a limited time frame which resulted the changed of currency did not met the purpose and the economy collapsed with the resign of Buhari from his position. It took long 21 years for him to become president again.

4. Australia

This was the first nation to introduce polymer notes, Since the purpose was to replace paper with plastic and only the material changed and it did not have any side effects on the economy.

5. Myanmar

In order to the curb the black market, the country’s military invalidated 80% of the currency, This decision lead to mass protest that killed many people and faces economy disruption .

6. Soviet Union

The Mikhail Gorbachev government ordered to withdrawal a large numbers of currency- Ruble from circulation to take over from the black market. However the step did not met the purpose resulted led to Soviet break up.

7. North Korea

To banish the black market government decided for demonetisation and resulted people with no food and shelter.

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