In addition, all legal-tender laws should be abolished, and all contracts should be redenominated
in USD at the appropriate conversion rate.
renewal, has been redenominated
to US$100m and[euro]46m.
This was redenominated
in 2007 to make it easier to transact business generally.
FSA Chairman Adair Turner said Britain's banks needed to think about problems arising from their assets and liabilities being redenominated
into another currency, even though the likelihood of this happening was still small.
If there is any hint that other countries may follow in the wake of Greece, agents would become unwilling to make contracts that may be redenominated
and we would expect bank runs in the other vulnerable economies.
If there were to be an exit, a redenominated
Greek currency would likely trigger a default in Greece that "would materially weaken" the solvency of Cyprus' banks, Moody's said.
If Greece leaves the monetary union, its banks will have to be forcibly redenominated
into the new national currency (presumably a new drachma)," UBS added.
Such a move by Athens could cause bank customers in other countries to fear that their money could one day be redenominated
in a much weaker currency.
Claims on entities within partner countries would be redenominated
in weaker currencies - or the borrowers would default on them.
If, say, Greece were to decide to leave and reintroduce the drachma, what you would probably find is that immediately people would take money out of Greek banks, the Greek bank system would be in great difficulties, businesses would find some of their assets and liabilities would be redenominated
in drachmas while some would stay in euros, they could well find themselves going bankrupt.
c) there is no limit on the number of shares which may be redenominated
to each share class, and
In late November 2009, North Korea redenominated
its currency at a rate of 100 to 1.