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 ?
If a country chooses to leave the Eurozone, we can identify two main scenarios: The country will repay its debt in euros or it will choose to redenominate its liabilities in the new national currency.
Such understanding consists of understanding over the government plan to redenominate and its socialization, the change of value may occur after redenomination, as well as its stages.
It sought to reduce the possibility that euro-zone countries would split off and redenominate domestic debt in new currencies ("redenomination risk") and it hoped to stabilize dysfunctional segments of the bond market, a problem called "market segmentation." In addition to affecting redenomination risk and market segmentation, the ECB's actions may also affect the default risk for sovereign bonds by changing market expectations of fiscal transfers and via lower redenomination risk and market segmentation lowering borrowing costs and thus default risk.
Earlier this month, Depa announced that it will redenominate its listing currency to UAE dirhams and unwind its Global Depository Receipt programme by the end of February 2018.
Many Italians blame German-inspired fiscal austerity for their country's economic malaise; and opposition parties such as the right-wing Northern League and the anti-establishment Five Star Movement want Italy to leave the euro, redenominate, and devalue to regain competitiveness.
many churches developed covenantal relationships, only to see the denominations and their local churches redenominate, or re-fragment, around views about sexual orientation, political ideology, theology, race, or culture, but in the end, mostly about power and who should be in and who is to be excluded." (43) There are real and urgent challenges to this work of ecumenical dialogue on moral matters.
In this way, the depositors and banks making the funds transfers protected themselves against "redenomination risk," that is, the risk that a peripheral country would leave the Eurozone and redenominate its bank deposits in a new, depreciated national currency.
Its government would redenominate contracts and bank deposits into devalued local currency, in a kind of 'confiscation by redenomination'.
Its government would redenominate contracts and bank deposits into devalued local currency, in what would represent a kind of "confiscation by redenomination".
"If you have a contract with a Greek supplier, if they were to redenominate in drachmas, would your contracts become significantly less profitable?"
Mulled by the government since 2007 and announced by President Mahmoud Ahmadinejad in January 2010, the plan was originally to redenominate the rial by knocking three zeros to recover the value it has lost in recent years.
North Korea's government has reportedly sparked panic buying by its citizens after it announced plans to redenominate the won.