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Venezuela also does what India has done a month ago, Bans own currency!!

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GANESH65

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Venezuela pulls highest-value banknote 'to strike against mafia'


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The Venezuelan government has announced it will remove the country's highest-denomination banknote from circulation within 72 hours to combat contraband.
Central bank data suggests there are more than six billion 100-bolivar notes in circulation, making up almost half of all currency.
Venezuelans will have 10 days from Wednesday to exchange the notes for coins and new, higher-value bills.
President Nicolas Maduro said the move would stop gangs hoarding the notes.
But in India, a similar move to scrap high-value bank notes last month has caused major disruption.



'Mafia hoarding'

In a surprise announcement, Mr Maduro said on Sunday that the 100-bolivar note, worth about 2 US cents (£0.015) on the black market, would be taken out of circulation on Wednesday.

The president said the aim was to tackle transnational gangs which hoard the Venezuelan notes abroad, a move he has in the past described as part of the "economic war" being waged against his government.
He said the gangs held more than 300bn bolivares worth of currency, most of it in 100-bolivar notes.
President Maduro said there were "entire warehouses full of 100-bolivar notes in the [Colombian cities of] Cucuta, Cartagena, Maicao and Buaramanga".



Border closure

He said part of the plan was to block any of the 100-bolivar notes from being taken back into the country so the gangs would be unable to exchange their hoarded bills, making them worthless.
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Image copyrightTWITTER
Image captionThe governing PSUV party published photos of what it said were warehouses where bolivars were being hoarded"I have given the orders to close all land, maritime and air possibilities so those bills taken out can't be returned and they're stuck with their fraud abroad," he said speaking on television.
Venezuela's currency has fallen dramatically amid skyrocketing inflation.
On the black market, its value dropped by 55% against the US dollar just in the past month, and the International Monetary Fund estimates that next year's prices will rise by more than 2,000%.
Gangs can therefore buy up Venezuelan banknotes cheaply on the black market in exchange for dollars or Colombian pesos.
They then use the Venezuelan currency to buy subsidised goods in Venezuela, which they in turn sell at a profit in neighbouring Colombia.
Many Venezuelans living near the border buy Colombian pesos to purchase goods in Colombia which they cannot get in Venezuela due to chronic shortages.



Cash crunch?

President Maduro blames both the shortages and Venezuela's record inflation on "imperialist forces" he says are trying to bring down his government.
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Image copyrightEPA
Image captionPresident Maduro made the surprise announcement during his weekly TV showHe said the aim of these "forces" was "to destabilise out economy and our society, to leave the country without 100-bolivar notes".
Analysts say the move is likely to worsen the cash crunch in Venezuela, where people have already been limited in the amount of cash they can take out at automated teller machines.
Venezuelans have only been given 10 days to exchange their 100-bolivar notes for new coins and bills ranging from 500 to 20,000 bolivars due to be introduced from 15 December.
Critics of Mr Maduro have predicted chaos and doubt that the facilities will be in place for people to exchange all their 100-bolivar notes.
"When ineptitude governs! Who would possibly think of doing something like this in December amid all our problems?" opposition leader Henrique Capriles wrote on Twitter (in Spanish).

http://www.bbc.com/news/world-latin-america-38297927
 
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GANESH65

GANESH65

Well-known member
[h=1]Venezuela closes border with Colombia 'to destroy mafia'[/h]


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Image copyrightAFP
Image captionThe main crossing links Cucuta in Colombia to San Antonio de Tachira in VenezuelaVenezuela has closed its border with Colombia for 72 hours in the latest measure to combat smuggling gangs.
President Nicolas Maduro says the "mafia" operating on border zones are causing huge damage to the economy.
Many items subsidised by Venezuela's socialist government, including diesel and petrol, are sold at a huge profit over the border in Colombia.
On Sunday, he announced that the country's highest denomination bank note would be taken out of circulation.
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Image copyrightAFP
Image captionShops are warning customers they will no longer accept 100-bolivar notes[h=2]'Destroy the mafia'[/h]President Maduro said the move would stop gangs hoarding the currency.
"Let's destroy the mafia before the mafia destroy our country and our economy," he said on national television.
"This measure was inevitable, it was necessary," he added. "The mafias will go bust."

Venezuela last closed most border crossings with Colombia in August 2015. The border was partially reopened a year later.
In 2015, the Colombian government complained that it had not been consulted or informed.
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Image copyrightREUTERS
Image captionPresident Maduro said the measure was "inevitable and necessary"But both sides eventually reached an agreement to cooperate on tackling crime and smuggling along the 2,200km (1,370 miles) border.
The measure caused huge disruption for the people who live and work on border cities.
This time, Mr Maduro said the borders would be reopened after 72 hours, once the 100-bolivar notes ceased to be valid.
[h=2]'Warehouses full of notes'[/h]Central bank data suggests there are more than six billion 100-bolivar notes in circulation, making up almost half of all currency.
Venezuelans will then have 10 days to exchange the notes for coins and new, higher-value bills, but only at the Central Bank.
In India, a similar move scrapping high-value bank notes last month has caused major disruption.
_92944030_036866107-1.jpg
Image copyrightEPA
Image captionThe value of a 100-bolivar note has dropped to just 2 US cents on the black marketMr Maduro said the gangs held more than 300bn bolivares worth of currency, most of it in 100-bolivar notes.
President Maduro said there were "entire warehouses full of 100-bolivar notes in the [Colombian cities of] Cucuta, Cartagena, Maicao and Buaramanga".
"I have given the orders to close all land, maritime and air possibilities so those bills taken out can't be returned and they're stuck with their fraud abroad," he said on Sunday.
Critics of Mr Maduro have predicted chaos and doubt that the facilities will be in place for people to exchange all their 100-bolivar notes.
"When ineptitude governs! Who would possibly think of doing something like this in December amid all our problems?" opposition leader Henrique Capriles wrote on Twitter (in Spanish).
http://www.bbc.com/news/world-latin-america-38297927


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arjun

Member
the reason for Venezuela's action is far far different from the reason why demonetisation was carried out in India. History alone will reveal why the PM ordered what he did on November 8 th.
 
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