Sunday, October 05, 2008

We need the Rs.200 note

The Rs.200 note. Whatever happened to it? (Pic by PVGM)

Seen any 50 cents recently? (coins, not the rapper) I haven't either. They probably don't mint it anymore. If they did, that would be a subsidy for the guys who mint coins because the metal required to mint the coin would cost more than 50 cents. Like it's cousins 25 cents, 10 cents and 1 cent, 50 cents is dead.

That's what inflation will do eventually to all coins and notes under the fiat currency system we have. That's no big deal so long as inflation is moderate, but when you have inflation at about 30%, like we have, one small but irritating cost of inflation will be carrying costs.

Now that Rs.100 is worth piss, we have to carry more money to make up for it. So we have end up carrying more higher denominated notes (500s, 1000s) and less lower denominated ones (100s, 50s). This means when I try to pay my Tuk-Tuk fellow, or my AC-Bus guy, often times I end up having just 500 or 1000 notes and not enough 100s, and those chaps never have enough change. This becomes just plain inconvenient and on occasion a source of great annoyance. We need a note in between 100 and 500.

I think the government should re-introduce that Rs.200 note that we had in circulation for some time in a much more durable form than the plasticky-version we had earlier. That should help with the situation.

More on inflation at Deaned.


TheWhacksteR said...

you know what we should do? revalue the rupee like the chinese did their currency. stagnate the markets snd offer restricted access. or the combination of war and global capitalism will be the death of us.

Rine said...

I found a 1 cent, 10 cent and 5 cent coin and its now in my purse.. Im guessing it'll be very valuable soon as it gets considered as an ancient item. How abt the 1 rupee coin now becoming the size of a 50 cent coin... and the advent of the 2000 rupee note. Sigh... this country is going down the Zimbabwe road.