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Switzerland should be wary of “well-meaning” international pressure to withdraw its 1,000-franc ($1,007) note, according to the central bank’s former president.
Concern has mounted globally that big banknotes make life easier for criminals and should therefore be scrapped. While officials in the euro area have announced plans to phase out their most valuable note, the Swiss National Bank has stated its intent to retain its most valuable bill. “It is an illusion to think that criminality or tax evasion will be reduced by withdrawing high-denomination banknotes, because other means of settlement or alternative forms of dissimulation will be found,” former SNB President Jean-Pierre Roth wrote in an opinion piece published on the website of BCGE, where he now is chairman. “We should, however, be wary of the risk of significant political pressure being brought to bear on the National Bank for it to follow the ECB’s example.”
The European Central Bank will stop producing its 500-euro.
By Catherine Bosley (Bloomberg)