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.

The Eurocrisis: muddling through, or on the way to a more perfect euro union?

Finance Undersecretary Rosalia de Leon, incoming National Treasurer, said positive investor perception of Philippine credit allowed the government "to achieve our objective of redenominating our debt into the local currency." For this issuance, Credit Suisse, Deutsche Bank, and HSBC acted as joint global coordinators as well as joint book runners--for this latter function working with Citi, Goldman Sachs, JP Morgan, Morgan Stanley, Standard Chartered Bank and UBS.

Gov't raises P30.8B from bonds

Therefore, redenominating the kwacha will be of great value to businesses and will reduce inputting errors.

Zambia redenominates the kwacha: Zambia has finally agreed to redenominate its currency, which, following periods of inflation, has become unwieldy. Nawa Mutumwena reports

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.

N Korea 'executes' top official

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).

Venezuela

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.

Coalition calls for monetary easing, price targets

In addition, it leaves open the possibility of redenominating the legal instrument into euros should the parties so choose.

The "Euro" has arrived

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.

Investment: Moz to make doing business easier

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.

Gov't bond futures prices fall on profit-taking

North Korea informed its citizens and foreign embassies on Monday that it would be redenominating its currency.

N Koreans worried over worth of won

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.

Coalition sets up talks on yen's redenomination

North Korea announced on Monday that it was redenominating its currency, the won, giving already-impoverished residents less than a week to change a limited number of old bills into new ones.