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Bank of Baroda issues $8.2 billion note for sale

The Bank of India on Thursday issued a $8 billion note worth Rs. 1.9 lakh for sale in the national currency market, making it the country’s second-largest note issue in two months.

The note, issued by the bank in the interest of improving liquidity, was the biggest ever issued in the currency market in India and was pegged to the dollar.

The central bank said the issue was “an indication of the strength of the economy” and the economy is “unaffected” by the demonetisation move.

“The government has taken appropriate measures in the economy for the good of the people,” said RBI governor Raghuram Rajan.

The bank will issue another note in the next three days.

The Reserve Bank of Pakistan also issued a note in a similar vein.

It was pegged at the dollar and sold in the rupee.

“It was the highest note issue of the central bank in recent times and the largest denomination note in circulation,” said Rohit Prakash, head of currency research at ICICI Securities.

“It was also the highest denomination note issued in Pakistan.”