Small Exchange: India currency woes and the Trump effect
The week's currency news rounded up.
India's note withdrawal causes concern
Last week, Indian Prime Minister Narendra Modi declared India's 500 and 1,000 rupee banknotes, the country's largest cash denominations, would be withdrawn from circulation.
The cessation is part of his government's crackdown on corruption and counterfeit currency.
People have 50 days to exchange the abandoned currency, with valid identification required to complete the transaction. New 500 and 2,000 rupee notes will eventually be issued.
ATM withdrawals have been restricted to INR 2000 per day, while bank withdrawals will be limited to INR 10,000 a day and INR 20,000 a week.
With India heavily cash-dependent, the sudden deactivation of a large base of funds has caused lonq queues and consternation.
What effect has President Trump had on currencies?
Following Trump's White House victory, the Mexican Peso fell nearly 12% on the back of the President-elect's promise to impose a 35% tariff on Mexican exports to the United States - one of the worst weeks for the Peso since the economic crisis and currency devaluation of 1995.
The Canadian dollar lost about 1.5%, while most Asian currencies fell 0.5-2%, with the exception of the Japanese Yen, which rose more than 3%.
Britain's Pound Sterling also registered gains and broke the $1.26 barrier against the US dollar last week.
The Aussie dollar lost almost 2% against the US, while the dollar itself fell 1-3% against major currencies.
Trump's election and the current market volatility was predicted by Australian and international analysts.
How can Australians send money to Christchurch?
A powerful 7.8 magnitude earthquake hit New Zealand's South Island today, triggering tsunami warnings across the country and killing at least two people.
Aid workers from Save the Children will mobilize staff to assist affected families. You can donate funds to support their actions. You can also donate money via the New Zealand branch of the Red Cross.
Sending funds overseas has traditionally been an expensive affair plagued by hefty bank fees. However, it's possible to send money to New Zealand without incurring too many fees and poor exchange rates.
Each week Small Exchange sums up currency news from around the globe and looks at how it impacts exchange rates and options.
- Small Exchange: Guyana considers bolstering foreign exchange, Sydney fintech develops SME FX platform and T&T supports local manufacturers
- Small Exchange: G20 still against competitive forex devaluations, Malaysia’s liberalisation and Westpac and ANZ fined for market misconduct
- Small Exchange: Iceland lifts capital controls, Nigeria’s forex reserves keep climbing, Barbados tourism blamed for foreign exchange leaks
- Small Exchange: China has ample forex reserves, Canada reforms rates data, Egypt’s gold rises
- Small Exchange: India is vacuuming cash, UK’s new £1 coins and Mexico hedges forex reserves