While much of India is still debating the merits and demerits of demonetisation, the idea seems to be catching up in some other parts of the world. After Venezuela, now Australian government is planning to take the highest valued currency off circulation. In the case of Australia, the $100 notes.

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According to the Australian government, the move is in a bid to crack down on the “black economy”.

“The whole point of this crackdown on the black economy is to make sure we close down any potential loopholes,” Australian Revenue and Financial Services Minister Kelly O’Dwyer told ABC Radio.

Just like in the case of India there are currently 300 million $100 notes in circulation, and 92 per cent of all currency by value is in $50 and $100 notes.

ABC

According to the minister, the black economy accounts for 1.5 per cent of Australia’s GDP with many payments made in cash.

Last week, Venezuela too had announced the demonetisation of its highest valued bank notes, the 100-bolivar bills in an attempt to fight speculation and currency hoarding. The country is experiencing an unprecedented inflation of over 700 per cent.