Singapore to Stop Printing S$1000 Banknotes from 2021

[Bimat]

Singapore to stop printing S$1,000 banknotes from next year

(Reuters) - Singapore will stop printing S$1,000 banknotes from Jan. 1 next year, its central bank said on Tuesday, to curb the risk of them being used for money laundering and to finance terrorism.

Existing notes will remain legal tender and banks can continue to re-circulate the notes, the Monetary Authority of Singapore said in a statement.

Countries around the world have been looking to phase out high denomination notes for years over concerns they are used predominantly for criminal activity. European authorities halted the printing of the 500 euro note last year.

(Reporting by Chen Lin; Editing by Himani Sarkar)

Source: Reuters

[Bimat]

Interesting to note that Singapore had a $10,000 banknote till 2014 (€6284 or US$7350 at current exchange rate) which I think has to be the highest denominated banknote (in terms of purchase value) issued ever. You have to wonder why was it issued at all?

Aditya

[chrisild]

Guess that in earlier years (1970s) cashless payment technology was not that advanced yet. So for some special purposes they had this 10,000 denomination.

Christian

[Figleaf]

There are USD banknotes with denominations of up to $100 000. The very high value notes were used for clearing between banks before that became an electronic business.

On Friday night, after closing, banks would calculate what they owed to other banks. Once the amount was agreed, an anonymous clerk or runner was sent out, usually on foot, with a suitcase full of high denomination notes in a flat suitcase, handcuffed to his wrist, covered by a sleeve. Exits and entries went through hidden doors.

There is a probably apocryphal story that on Singapore's occupation, Japanese troops liberated a stack of these notes and found to their dismay that they couldn't spend them. Since nobody used them, their faces would be remembered. Personally, I think guns and bayonets are quite persuasive in such situations.

Peter