Redenomination

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 ?
Not at last, there were mentioned certain crimes which within the context of the reform related to the criminal law either were not subject to any redenomination (which is the case of the embezzlement crime), or continued to be governed by special legislative deed not targeted or partially targeted by the amendments in the analysed legislative deed (which is the case of the crimes provided by Law no.
We note that the redenomination of contracts would have been much easier if this reform had been implemented during the convertibility period, as Hanke and Schuler suggest.
Redenomination of share capital The Chairman reported that with
This improvement reflects the fact that there is no longer a redenomination risk linked to the perception of a possible euro area break-up.
The ECB's non-standard measures I mentioned earlier are geared towards addressing primarily two types of premia: the liquidity risk and the redenomination risk.
In the event of a Greek exit from EMU, Fitch would treat the forcible redenomination of sovereign and private sector debt as a default event in line with its Distressed Debt Exchange rating criteria.
With that sentence, Draghi eliminated the perceived redenomination tail risk that was highest in the case of Greece, but that was driving up borrowing costs in Spain, Italy and Portugal as well.
Maintaining the value of deposits on redenomination is a crucial feature of this proposal.
Iraq's central bank hopes to make one dinar equal to $1 at some point through redenomination and central bank-induced appreciation.
The redenomination risk - which has deterred many investors from the region - is now reduced and this should allow investment decisions to be based more on fundamental merit than on the threat of a eurozone break-up.
Tail-risk perceptions surrounding currency redenomination have fueled a retrenchment of private financial exposures to the euro area periphery.