Venezuela follows India’s footsteps in demonetization scheme

The Venezuelan government has declared it would eliminate the nation's highest-denomination banknote from circulation shortly to counter mafia hoardings.

The central bank data suggests there are more than six billion 100-bolivar notes in circulation, making up almost half of all currency.

Venezuela, which operates an economy that is crumbling down in debt and hyperinflation, announced the demonetization of 100 Bolivar Fuerte (Bf) banknotes effective in the next 72 hours. Until the central bank releases higher denomination bills, an India-like panicky situation is presumed to occur.

Since mid-2016, the Venezuelan economy worsened, as hyperinflation continued to lessen the value of its national currency that was already virtually worthless. By September, simple products like eggs or bread were sold at USD 150 to the general population which in Venezuela was equivalent to stacks of cash.