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Efforts To Stop Illicit Money Flows Could Backfire

African Currency Reform

A recent paper has proposed that eliminating high-denomination notes would make it harder to make illicit transactions, forcing actors in illegal networks to use alternative payment mechanisms. OEF Research's Victor Odundo Owuor argues in response that, in Africa, this could have dire consequences for the livelihoods of many Africans who work for and use foreign exchange bureaus, and who still overwhelmingly prefer cash for its privacy, functionality, and interchangeability. He asserts this would also likely drive African traders to seek out other forms of currencies like the Yuan Renminbi, which has begun to penetrate African markets. Read the full article here