India Removing 2,000 Rupee Note May Spur Gold, Property Rush
- Consumers may use the currency note for high-value purchases
- Consumption will get a temporary boost, economists say
An Indian 2,000 rupee banknote
Photographer: Brent Lewin/BloombergIndia withdrawing its highest value currency notes from circulation may push some consumers to buy precious metals and real estate, giving a temporary boost to Asia’s third-largest economy.
In a bid to quickly spend the 2,000 rupee ($24) notes that will be withdrawn over the next four months, Indians could snap up gold, properties and household items like air conditioners and refrigerators, according to economists. This is in contrast to the 2016 exercise, which removed almost all cash from circulation and led to long queues outside banks and automated teller machines.