Redenomination

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Redenomination

A reduction in the face value of a currency that a government or central bank makes because of hyperinflation or chronic weakness as a currency. For example, a country may declare that a "new" dollar is worth 1,000 "old" dollars and print new denominations reflecting this change. This may or may not stem the tide of inflation, depending on how the redenomination is approached and what other steps are taken.
References in periodicals archive ?
8) The process of redenominating domestic euro deposits into domestic currency, which would then lose value against the euro, would trigger a system-wide bank run, at times that the ECB would be reluctant to provide the lender-of-last-resort support.
But the scheme, which involved redenominating the North Korean won, reportedly lead to widespread panic and unrest as many North Koreans saw their savings wiped out.
In January 2008, the Venezuelan Government adopted the "bolivar fuerte" as its new currency, effectively redenominating the previous currency, the "bolivar," by removing three zeroes (1 bolivar fuerte=1,000 bolivars).
Board is also considering redenominating the Company into Euros.
Before the formal announcement, party sources said the coalition considered redenominating the yen by chopping two zeros off it, but that was left out due to opposition within the ruling bloc.
In addition, it leaves open the possibility of redenominating the legal instrument into euros should the parties so choose.
Redenomination - downloadable redenominating tool for instant conversion updates.
The money will be spent on developing roads, redenominating its currency and overhauling commercial legislation--all aimed at making the country a more investor-friendly destination.
In addition to profit-taking, reports that the ruling coalition plans to call for redenominating the yen, which came shortly before the end of trading, stirred last-minute sell-offs, dealers said.
North Korea informed its citizens and foreign embassies on Monday that it would be redenominating its currency.
The Liberal Democratic Party (LDP) and its two ruling coalition partners said Thursday they have begun detailed studies of redenominating the Japanese currency in January 2002 to remove two zeros and make 100 of today's yen into 1 yen.