Bank Note Withdrawal Fuels Diamond Frenzy

By John Jeffay / May 25, 2023 / www.idexonline.com / Article Link

(IDEX Online) - The withdrawal of the 2,000 rupee bank note is expected to fuel a consumer spending frenzy in India on diamonds, gold and other luxuries.The Reserve Bank of India announced on 19 May that its highest-value note - worth around $24 - will no longer be legal tender after 30 September.The notes can be deposited or exchanged, but economists say many people will be wary that the tax authorities will be alerted to their undeclared income. So those with a stash of cash have started spending it instead, prompting a short-term in prices of gold, in particular.The pink 2,000 rupee note, with a picture of Mahatma Gandhi, was only introduced in 2017, to replace 500 and 1,000 rupee notes.

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