0158 GMT April 22, 2019
On the second anniversary of demonetization, former prime minister Manmohan Singh Thursday said the scars and wounds from 2016 are only getting more visible with time, adding that the consequences of the note ban are still unraveling. The Congress is holding nationwide protests Thursday and has demanded an apology from Prime Minister Narendra Modi for “ruining and wrecking” the economy.
Singh said, “I urge the government to restore certainty and visibility in economic policies… Today is a day to remember how economic misadventures can roil the nation for a long time and understand that economic policymaking should be handled with thought and care.”
He explained that as small and medium businesses are yet to recover, it has had a direct impact on employment for youth, financial markets, and infrastructure lenders and non-bank financial services firms.
“The financial markets are volatile as the liquidity crisis wrought by demonetization is taking its eventual toll on infrastructure lenders and non-bank financial services firms. We are yet to understand and experience the full impact of the demonetization exercise. With a depreciating currency and rising global oil prices, macroeconomic headwinds are also starting to blow now,” he added.
“It is therefore prudent to not resort to further unorthodox, short-term economic measures that can cause any more uncertainty in the economy and financial markets,” Singh said.