Episode 104: Demonetization 101

Otherwise?

In June 2019, the Central Bank of Kenya (CBK) announced that it would be phasing out the current generation KES 1,000 note by 1st October 2019. On that date, it will cease to be legal tender. This is in an effort to curb illicit financial transactions, including money laundering; address the problem of counterfeit notes; and fight corruption. They also announced new generation notes alongside the new KES 1,000 note (KES 50, 100, 200 and 500), but these do not have a deadline for exchange.

According to the CBK, we currently have in circulation 217.6 million pieces of KES 1,000, 30.8 million pieces of KES 500, 54.8 million pieces of KES 200, 126.4 million pieces of KES 100, 100.5 million pieces of KES 50 and 9.9 million pieces of KES 20. We’re joined by Ken Gichinga, the Chief Economist at Mentoria Economics, to discuss the demonetization process as it is planned in Kenya.

Resources

Kenya is introducing new banknotes in a bid to fight corruption

For demonetization to be successful, adequate remonetization necessary

Behind Central Bank move to change notes

Ensure roll-out of new currency does not hurt weak economy

There is more than meets the eye in demonetisation

Tedious journey to new currency that kicked off in 2010

Demonetization Of Currency Notes: Significance And Challenges

Demonetisation: The end of Zimbabwean dollar

What can you buy for $100 trillion in Zimbabwe? Not even a candy bar

Here's The Full Text Of Modi's Speech On The Discontinuation Of ₹500 And ₹1,000 Bank Notes

Demonetisation: What India gained, and lost

Two years of demonetisation: What did the fight against black money achieve?

Demonetization Anniversary: Decoding the Effects of Indian Currency Notes Ban

India election 2019: Did the ban on high-value banknotes work?

Despite hype, demonetization missed all goals

Few Hits and Many Misses From India's Cash Ban After 2 Years

Payments are a-changin’ but cash still rules

Image Credit: Nairobi Wire