Former Indian PM Manmohan Singh Criticizes Cash Crackdown

Former Indian Prime Minister Manmohan Singh has rubbished the government’s move to ban two major currency notes, calling it “monumental mismanagement”.

Mr Singh, the architect of economic reforms in the 1990s, said GDP would fall “by about 2%” because of the move.
Earlier this month Prime Minister Narendra Modi announced that 500 and 1,000 rupee notes had become illegal as part of a crackdown on corruption.

But scarcity of new notes has brought the economy to a virtual standstill.

Mr Singh, who is credited with opening up India’s economy when he was finance minister in 1992, told MPs the move “can weaken and erode our people’s confidence in the currency system and in the banking system”.
He said it amounted to “legalised plunder”.

Earlier, the rupee fell to almost 69 to the US dollar, a record low.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza