The real Indian currency crisis: things you don't hear in the news...

Jayant Bhandari writes: On November 8, 2016, Indian Prime Minister Narendra Modi dropped a bombshell. In a televised address at 8:00 pm, he declared that after midnight—four hours later—banknotes with face values of INR500 (US$7.50) and INR1,000 (US$15) would no longer be legal tender.

These bills comprised 86% of the monetary value of currency in circulation, so to say that panic ensued would be an understatement. The market stayed open all night as people rushed to buy gold, Rolex watches, and anything else they could get their hands on to use up their cash.

During the next two weeks, gold traded for as much as US$3,000 per ounce, a premium of almost 100% to the international price. Foreign currencies traded at similar premiums.

Soon, Indian tax authorities descended on the gold market, confiscating security camera recordings to identify any transaction that might have bypassed taxation. They were raiding people’s houses with abandon. Full story...

Related posts:

1. Price of gold skyrockets in India after currency ban...
2. India's Modi calls for move towards cashless society...
3. What do the cash queues tell us about India?
4. India's currency debacle...
5. India wants people to turn in their gold...
6. The criminal who inspired a new currency...
7. Indian economy grinds to a halt after cash-ban: "Faith in system shaken"