India: short term effects of rupee demonetisation could hit outbound market

On November 8, the government announced that the ₹500 and ₹1,000 notes – the two largest value bank notes in the currency – will no longer be legal tender, with almost immediate effect. “Eventually it’s going to be more positive. On the shorter term it’s going to be a little bit negative” The decision was made by Prime Minister Narendra Modi with the aim of ridding the country’s economy of ‘black money’, counterfeit notes, and corruption. A new ₹500 note and a ₹2,000 note will be introduced into circulation soon. India…

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