ASIA’S HIGHEST DENOMINATED BANKNOTES

A quirky way to examine the development of Asia’s many and varied economies is to take a glance at its banknotes. Quite apart from the staggering array of art and pomp on display, there is also a correlation with the value of their respective economies. I’m not aware of any scientific study that relates high denomination banknotes to the wealth of an economy, but as the chart below suggests, wealthy Asian countries such as Japan (USD97) tend to have higher value denominated banknotes than poorer ones such as Bangladesh (USD12). That is quite a disparity, and reflective of the higher costs of products in Tokyo as opposed to Dhaka.

Although that can be a given, the banknote disparity between the ASEAN nations and China is also of interest. China’s highest value banknote is worth just US$16, and the nation continues to print braille on its currency to allow its high proportion of cataract-affected citizens to read the currency. If ever a symbol of a wealth gap existed, it is found in the fact that against the backdrop of Shanghai’s gleaming billion dollar spires, China’s currency is still marked so that those with eye disorders can actually read it.

Interestingly, India’s highest value note is also worth about the same as China’s, at a little under US$17, while ASEAN’s emerging Asian Tigers provide a mixed set of examples – Malaysia’s highest value note is worth three times more than that of Indonesia, US$31 against just under US$9. Yet Indonesia’s economy is worth far more, at US$878 billion over Malaysia’s US$305 billion. Further, the Indonesian population of 252 million is the fourth largest in the world, and over eight times higher than Malaysia’s 30 million. Based on banknote diversity, wealth it seems is more concentrated amongst a smaller number of Malaysian citizens. While cities such as Kuala Lumpur and Jakarta may be equal in costs and expense, out in the sticks Indonesia remains significantly poorer for large swathes of the population. It would be pointless having large denomination banknotes for a populace who cannot afford to use them, expect those living in the primary cities.

The Philippines and Vietnam are almost at parity in their highest value banknotes, at US$23 and US$24 respectively, while Thailand’s inherent wealth is demonstrated by its denomination of a US$30 equivalent note – nearly double that of China and India. Again, wealth concentration dictates the need for higher value notes, although I am sure there are many in Thailand’s countryside who may disagree.

To read the complete article, see:
The Curious Case of Asia’s Highest Denominated Banknotes (www.asiabriefing.com/news/2014/09/asias-bank-note-value-diversification/)

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