The Narendra Modi’s government shock move to scrap Rs. 500 and Rs. 1000 notes are not only dominating headlines in India but is also making ripples across the world. There were also reports of Pakistani news anchors discussing the issue and praising PM Modi’s move.
The move received support from several sections of the society but also caused massive problems for thousands of others. This is how the foreign media interpreted the demonetization move of the government.
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Few days after the decision, Forbes has published an article titled “India’s Great Bank Note Switch Appears to Be Working – $30 Billion in Rs Deposited in Banks.”
The article mentions that the move of this magnitude would result in “obvious chaos”, but points that “so far at least it looks as if it is working.” The article goes on to call the scheme “rather well done, a clever plan.”
New York Times:
“The plan, top secret until Mr Modi’s announcement, was hailed by financial analysts as bold and potentially transformational for India. It is also a high-stakes experiment.” New York Times has quoted.
“Cash is king in India. Many people do not have bank accounts or credit cards, and even those who do often must use cash because many businesses don’t accept other forms of payment. The change, however, has thrown the economy into turmoil, with many millions of people forced to line up at banks to deposit or exchange their old bills,” the article read.
BBC:
BBC was more critical in its coverage, carrying an article titled “How India’s currency ban is hurting the poor”. The article focused on the long queues at ATMs, and the problems small businessmen were facing with the sudden paucity of cash.
The Guardian:
“The rich will not suffer, as corruptly acquired fortunes have almost all been converted to shares, gold, and real estate. But the poor, who make up the bulk of the nation’s 1.3 billion people, will lose out. They don’t generally have bank accounts and are often paid in cash. For them, getting to a bank and queueing for hours will cost money and time they don’t have. In less than a week, the policy has reportedly claimed more than a dozen lives. The government says that it will take weeks to sort out the problems,” an editorial said.
“Mr. Modi’s scheme has more in common with the failed experiments of dictatorships which led to runaway inflation, currency collapse, and mass protests. While Mr. Modi campaigned to end corruption, it would have been better if the government had updated its antiquated tax system to realize such a task,” it added.
Herald:
“A currency note is a promise that must be kept, whatever the circumstances. Because this trust has been broken in India, queues have formed outside banks and ATMS, with banks closing down mid-way through the business day, saying they have run out of cash. But what is it that these hoarders could have done in a reasonable time frame that they are not doing now?” the Pakistani magazine said.
On the other hand, International Monetary Fund (IMF) spokesman Gerry Rice said: “We support the measures to fight corruption and illicit financial flows in India. Of course, given the large role of cash in everyday transaction in India’s economy the currency transition would have to be managed prudently to minimize possible disruption,”
Few days after the decision, Forbes has published an article titled “India’s Great Bank Note Switch Appears to Be Working – $30 Billion in Rs Deposited in Banks.”
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