Member of Parliament for Barataria/San Juan, Dr Fuad Khan, is warning that the government’s decision to replace the current $100 bill could have unexpected consequences.
Dr. Khan said while the PNM is giving the assurance that both the new and old bills will coexist simultaneously, one can only imagine that the window for the phasing out of the soon to be obsolete currency will have to be short, otherwise, they run the risk of undermining the operation in its entirety.
He claims that the longer the current bill remains as a legitimate currency, the more time and opportunity criminals will have to effectively launder it.
He also pointed out what took place in India when a similar move was made by the Modi administration in November 2016.
Dr. Khan recalled that the Modi administration said the move would’ve curtailed the shadow economy and crackdown on the use of illicit and counterfeit cash to fund illegal activity, however, he said the sudden nature of the announcement and the prolonged cash shortages in the weeks that followed created significant disruption throughout the Indian economy.