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 ?
The government had to impose capital controls to stop money from flowing out of the banking system because of the risk of redenomination into new drachmas.
Would such a system have triggered a redenomination from the euro to the drachma?
The 2007 redenomination that removed four digits made the Ghana cedi the highest denominated currency unit used in Africa, but that was short lived for some few months, as it started falling to today.
That said, the last thing any president wants is to risk redenomination and jeopardise the stability of the currency union.
On March 25, Bank of Korea Governor Lee Ju-yeol stated in an interview arranged by the National Assembly, "Our research team has carefully reviewed the effects of currency redenomination and concluded that its net benefit is sufficiently large.
A rise in redenomination risk premia of sovereign bond yields led again to a widening in the cost of funding for several stressed euro area countries.
The year 2007 saw the Ghanaian currency undergoing a redenomination exercise as well as the adoption of International Financial Reporting Standards (IFRSs) by Ghanaian listed firms for the first time and also marked the beginning of the global financial meltdown.
In the event of redenomination, the value of credit expressed in the new currency would increase.
The rise in T2 balances in 2011 and 2012 was accompanied by a sharp fall in eurozone periphery banks' external funding, suggesting a degree of perceived redenomination risk for the periphery.
"The executive branch, after evaluating the proposal, has agreed to reschedule the start of the currency redenomination for Aug.
SMC said proceeds of the P10 billion offering would be used for refinancing existing obligations including possible redenomination of its dollar denominated debt and investments of its existing subsidiary in its various businesses.