. special emphasis was placed on the far - flung areas, in the northern and southern parts of the country, cognizant of the heavy use of cash in those regions. to identify any emerging concerns and facilitate their resolution, a robust feedback mechanism including some strategic surveys was also deployed. third, for the demonetization to be successful it was essential that existing measures on antimoney laundering ( aml ) and combatting financing of terrorism ( cft ) be applied fully. these measures ensured that illicit funds were filtered out, and not exchanged or enter the financial system. commercial banks, forex bureaus, and payment service providers ( psp ) have over the last few years strengthened their aml / cft screening, which proved a strong foundation for the demonetisation. additionally, reporting and monitoring was scaled up, with positive results — during this period cbk conducted 15 targeted inspections on financial institutions, and over 3, 000 suspicious transaction reports ( strs ) were reported for further investigation. fourth, a collaborative approach with other official entities was adopted to buttress the strategy. investigative agencies were brought on board to examine the available information for evidence of crimes. other central banks were also roped in to ensure that escape of counterfeiters and perpetrators of illicit funds through those jurisdictions was thwarted. this approach is akin to an army overwhelming the enemy by attacking on all flanks at once. as the sun set on demonetization on september 30, 2019, inflation, the exchange rate and other key macroeconomic indicators remained stable. there were no last minute panic queues outside banking halls — the awareness campaign had been effective and ordinary kenyans had exchanged their notes in good time. at midnight when the operation was concluded, old series ksh. 1, 000 notes valued at ksh. 7. 4 billion had not been exchanged and became worthless. demonetisation marks a single step in the fight against illicit finance and corruption more generally. sustained efforts are needed to deliver victory. the strong aml / cft filters that were applied will continue to be deployed. the information already gathered will also support further investigations by law enforcement agencies. but most importantly, we have created a launch pad for progress towards using less cash for transactions, as we increasingly embrace the readily available mobile and electronic channels. this will make it harder to launder ill - gotten funds, and for cash - based corruption to survive. the successful conclusion of demonetization is a testament to careful preparation by cbk and close

account of how we fulﬁl this special mandate. as i said, a ﬁrst step on the path towards more effective communication is listening better, observing better. physicist and writer georg christoph lichtenberg once said : " no one knows people as well as beggars, confessors and bankers ". this bon mot does not appear to ﬁt for central bankers so far. last year the bundesbank therefore conducted an online pilot study on the expectations of households in germany. the results are encouraging. they suggest that german inﬂation expectations are by and large aligned with our monetary policy aim. [ 10 ] as such, the data also provide no justiﬁcation for fears that households ’ inﬂation expectations might slide downwards or become unanchored. no doubt you will remember that some monetary policy makers have voiced these concerns in recent years, and they were a factor in justifying certain monetary policy decisions. the survey can help us to better understand how individuals form and adapt their expectations. as a result, the bundesbank has decided to survey the expectations of german households every month in future. a second step is to communicate more clearly. every text has its own level of [UNK] and therefore challenges the reader. the more complex the language in which a text is written, the fewer people will be able to understand it and the fewer people the text can ultimately reach. andrew haldane, the chief economist at the bank of england, has examined this more closely. unfortunately, a typical publication put out by his central bank is accessible to only around 10 % of the uk adult population. newspapers are accessible to as much as 30 %, and charles dickens novels to 40 %, of the population. 60 % of the us adult population understand songs by elvis presley, while donald trump ’ s campaign speeches are even accessible to 70 %, which may explain his popularity, at least in part. understandable language is also an important issue for the bundesbank. we note that many members of the public already stumble over technical terms that are common currency among us central bankers – such as “ ﬁnancial market participants ”, “ ﬁnancial stability ” or even “ monetary policy ”. if we want to reach people, we have to make efforts to communicate in clear and understandable language. you can let me know how well i have succeeded in doing so afterwards. given this topic, it would already be a success if we managed to come closer to charles dickens ’ s level