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Public Finance

Monetary Policy

Research Note

Currency Chaos: Managing Effective Demonetization and Currency Swaps

Stephen Cofie 

February 1, 2023

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Demonetization and currency swaps are powerful economic tools used by governments to address diverse policy challenges from inflation to terrorism and illicit economies. However, past experiences have demonstrated that the improper management of these measures can result in currency chaos and unintended consequences.


This policy brief examines lessons learned from failed attempts at managing effective demonetization and currency swaps. Such failures highlight the importance of adequate preparation and planning, seamless exchange mechanisms, consideration of the informal economy, and robust communication and public outreach.


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Publication File

PDF Document | 426.6 KB


S, Cofie (2022). Currency Chaos: Managing Effective Demonetization and Currency Swaps. Center for Emerging Economies, Washington DC.

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