After India, Venezuela demonetises 100-bolivar notes

Caracas: The Venezuela government on Monday officially demonetised their highest-denomination currency note of 100-bolivar and said that the banknote will be taken off from circulation within next 72 hours to fight contraband.

According to central bank's data, there are over six billion 100-bolivar notes in circulation right now, which makes up to around half of all currency of the country.

Venezuelans have been given 10 days starting from Wednesday to exchange the demonetised currency notes for coins and new, higher-value bills.

Venezuela President Nicolas Maduro hoped that the step would stop mafia gangs hoarding the highest denomination notes.

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Venezuela's decision to demonetise the highest currency notes is apparently an inspiration from India which scrapped Rs 1,000 and Rs 500 notes in a bid to eradicate black money and corruption from the country.

The president claimed that the decision was taken aiming to tackle transnational gangs which contraband the Venezuelan currency abroad. In the past, he had described the act as part of the "economic war" being waged against his government.

He claimed that the mafia gangs had hoarded more than 300bn bolivares worth of currency, most of which was in 100-bolivar notes.

"I have given the orders to close all land, maritime and air possibilities so those bills taken out can't be returned and they're stuck with their fraud abroad," he said speaking on television.