Al-Daari reveals the secrets of the “Indian model” in dealing with financial crises
In an article that caught the attention of many, journalist Majed Al-Daari raised questions about India's experience in dealing with the inflation crisis and currency counterfeiting, and how it succeeded in withdrawing cash from circulation and reinjecting it into banks within just five months.
Currency restructuring:
Al-Daari reviewed the steps of the Indian economic reform program, starting with withdrawing the cash currency and replacing it with a new, lower denomination currency, and requiring citizens to transfer their money to their bank accounts to obtain its digital value.
Benefiting from the Indian experience:
Al-Daari wonders about the possibility of applying the Indian experience in Yemen, especially in light of the similar financial and banking situation.
Electronic connectivity and digital currency:
Al-Daari stresses the importance of linking Yemeni banks to a unified electronic link system controlled by the Central Bank, to guarantee the rights of citizens and encourage the shift towards digital currency.
Currency control:
Al-Daari refers to India's steps in controlling the currency, by printing a new currency, closing exchange companies, preventing commercial transactions in other than the national currency, and emphasizing not to take currencies out of the country.
Banking connection:
Al-Daari compares the Indian and Yemeni banking systems, pointing out India's success in linking more than 40 banks to one banking system, while Yemen lacks a unified linking system that includes Yemeni banks.
Specific experiences:
Al-Daari expresses his regret at the spread of currency speculation experiences in Yemen, and calls for reducing this phenomenon.
The shift towards digital currency:
Al-Daari stresses the importance of the culture of shifting towards digital currency, and conducting daily transactions via the barcode of citizens’ accounts.
Press investigations:
Al-Daari announces his intention to conduct qualitative economic journalistic investigations to find out various aspects of the Indian experience, and how to benefit from them in Yemen.
