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