Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/336311 
Year of Publication: 
2020
Citation: 
[Journal:] Latin American Journal of Central Banking (LAJCB) [ISSN:] 2666-1438 [Volume:] 1 [Issue:] 1/4 [Article No.:] 100019 [Year:] 2020 [Pages:] 1-13
Publisher: 
Elsevier, Amsterdam
Abstract: 
Trinidad and Tobago executed a surprise demonetization of its largest currency note in December 2019 to address financial crimes. This evaluation of the outcome finds that the exercise was relatively well managed by the authorities within the short time frame established, facilitated by good coordination amongst the banks and widespread public communication. There were some avenues for leakages and sidestepping of the restrictions on conversions, including via an initially unplanned concession allowing low-value exchanges at the Central Bank for all individuals after the banknote was no longer legal tender. Nonetheless, there appears to have been an impact on "black money", with over 5 per cent of the demonetized notes not being presented for exchange. The early evidence suggests that the exercise affected the demand for cash for transactions and savings, but not digitization. It also contributed valuable information for the detection of tax evasion and money laundering.
Subjects: 
Black Money
Demonetization
Digitization
Trinidad and Tobago
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.