Redenomination
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Inmonetary economics,redenominationis the process of changing the face value ofbanknotesandcoinsincirculation.It may be done becauseinflationhas made thecurrencyunit so small that only largedenominationsof the currency are in circulation. In such cases the name of the currency may change or the original name may be used with a temporary qualifier such as "new". Redenomination may be done for other reasons such as changing over to a new currency such as theEuroor duringdecimalisation.
Redenomination itself is considered symbolic as it does not have any impact on a country'sexchange ratein relation to other currencies. It may, however, have a psychological impact on the population by suggesting that a period ofhyperinflationis over, and is not a reminder of how much inflation has impacted them. The reduction in the number of zeros also improves the image of the country abroad.
Inflation over time is the main cause for thepurchasing powerof the monetary unit decreasing; but there are a variety of political reasons for the government not reining in inflation or for not redenominating the currency when its value has depreciated significantly. There are some economic and social benefits of redenominating, including improved efficiency in processing routine transactions. Redenomination typically involves the substitution of new banknotes in place of the old ones, which usually cease beinglegal tenderafter the end of a short transition period.
Inflation
[edit]In general, redenomination is implemented in response tohyperinflation,which progressively increases the nominal prices of products and services, decreasing thereal valueof the monetary unit in the local market. Over time, prices become excessively large, which can impede routine transactions because of the risk and inconvenience of carrying stacks of bills, or the strain on systems, e.g. automatic teller machines (ATMs), or because humanpsychologydoes not handle large numbers well. Authorities may alleviate this problem by redenomination: introducing a new unit that replaces the old unit, with a fixed number of old units being converted to 1 new unit. If inflation is the reason for redenomination, this ratio is much larger than 1, usually a positive integralpowerof 10 like 100, 1000 or 1 million, and the procedure can be referred to as "cutting zeroes".[1]Recent examples of redenominations include:
New unit | = | × | Old unit | Year |
---|---|---|---|---|
Argentine peso(ARP) | = | 10 000 | Argentine peso ley(ARY) | 1983 |
Argentine austral(ARA) | = | 1 000 | Argentine peso(ARP) | 1985 |
Argentine peso(ARS) | = | 10 000 | Argentine austral(ARA) | 1992 |
New Polish złoty(PLN) | = | 10 000 | old Polish złoty (PLZ) | 1995 |
NewMozambican metical(MZN) | = | 1 000 | old metical (MZM) | 2006 |
Second Zimbabwean dollar (ZWN) | = | 1 000 | first dollar (ZWD) | 2006 |
Third Zimbabwean dollar (ZWR) | = | 10 000 000 000 | second dollar (ZWN) | 2008 |
FourthZimbabwean dollar(ZWL) | = | 1 000 000 000 000 | third dollar (ZWR) | 2009 |
This table is not exhaustive. |
Although the ratio is often a positive integral power of 10 (i.e., removing some zeros), sometimes it can bea×10nwhereais a single-digit integer andnis a positive integer. Partial examples include:
New unit | = | × | Old unit | Year |
---|---|---|---|---|
German Rentenmark | = | 1 000 billion | Papiermark | 1923 |
Chinese gold yuan | = | 3 million | old yuan | 1948 |
Chinese "silver" yuan | = | 500 million | Chinese gold yuan | 1949 |
New Taiwan dollar | = | 40 000 | old dollar | 1949 |
Azerbaijani new manat | = | 5 000 | old manat | 2006 |
This table is not exhaustive. |
Occasionally, the ratio is defined in a way such that the new unit is equal to ahard currency.As a result, the ratio may not be based on an integer. Examples include:
New unit | = | × | Old unit | = | Anchor currency | year |
---|---|---|---|---|---|---|
Brazilian real | = | 2 750 | cruzeiros reais | = | United States dollar | 1 July 1994 |
Yugoslav novi dinar | = | 10~13 million | 1994 dinara | = | Deutsche Mark | 24 January 1994 |
2nd Polish złoty | = | 1.8 million | Polish marka | = | Swiss franc | 1 April 1924 |
This table is not exhaustive. |
In the case ofhyperinflation,the ratio can go as high as millions orbillions,to a point wherescientific notationis used for clarity orlong and short scalesare mentioned to disambiguate which kind of billion or trillion is meant.
In the case ofchronic inflationwhich is expected to continue, the authorities have a choice between a large redenomination ratio and a small redenomination ratio. If a small ratio is used, another redenomination may soon be required, which will entail costs in the financial, accounting, and computing industries. However a large ratio may result in inconveniently large or small prices at some point in the cycle.
After a redenomination, the new unit often has the same name as the old unit, with the addition of the wordnew.The wordnewmay or may not be dropped a few years after the change. Sometimes the new unit is a completely new name, or a "recycled" name from previous redenomination or from ancient times.[citation needed]
New unit | = | × | Old unit | year | Nature of the new unit |
---|---|---|---|---|---|
Turkish new lira | = | 1 million | old lira | 2005 | "new" is an official designation and was dropped in 2009. |
New Taiwan dollar | = | 40 000 | old dollars | 1949 | "new" is an official designation and is still used in official documents today. |
Argentine austral | = | 1 000 | Peso argentino | 1985 | completely new name |
Yugoslav 1993 dinar | = | 1 million | 1992 dinara | 1993 | no official designation |
Brazilian real | = | 2 750 | cruzeiros reais | 1994 | recycled unit of Brazil before 1942 |
This table is not exhaustive. |
Decimalisation
[edit]All countries that previously had currencies based on pounds-shillings-pence (£sd) system (£1 = 20shillings= 240pence) have now adopted decimal currencies (currencies related bypowers of 10), with several changing the name of the main currency unit at the same time. As of 2020, only two currencies are non-decimal, being theMauritanian ouguiyaandMalagasy ariary,with one of each divided into five subdivisory units.
Currency union
[edit]When countries form a currency union, redenomination may be required. The conversion ratio is often not a round number, and may be less than 1.
New unit | = | x | Old unit | year | Monetary union |
---|---|---|---|---|---|
Danish krone | = | 0.5 | Danish rigsdaler | 1873 | Scandinavian Monetary Union |
Gulden österreichischer Währung | = | 20/21 | Gulden Conventions-Münze | 1858 | Wiener Münzvertragbetween the states of theGerman Customs Unionand theAustrian Empire |
This table is not exhaustive. |
List of Euro redenominations
[edit]The most notable currency union today is theEurozone.In 2002, euros in cash form were introduced.
Country | Old unit | Exchange rate (old units per €) |
Year |
---|---|---|---|
Belgium | Belgian franc | 40.3399 | 1999 |
Luxembourg | Luxembourgish franc | 40.3399 | 1999 |
Germany | Deutsche Mark | 1.95583 | 1999 |
Andorra, Spain | Spanish peseta | 166.386 | 1999 |
Andorra, France, Monaco | French franc | 6.55957 | 1999 |
Ireland | Irish pound | 0.787564 | 1999 |
Italy, San Marino, Vatican City | Italian lira | 1936.27 | 1999 |
Netherlands | Dutch guilder | 2.20371 | 1999 |
Austria | Austrian schilling | 13.7603 | 1999 |
Portugal | Portuguese escudo | 200.482 | 1999 |
Finland | Finnish markka | 5.94573 | 1999 |
Greece | Greek drachma | 340.75 | 2001 |
Slovenia | Slovenian tolar | 239.64 | 2007 |
Cyprus | Cypriot pound | 0.585274 | 2008 |
Malta | Maltese lira | 0.4293 | 2008 |
Slovakia | Slovak koruna | 30.126 | 2009 |
Estonia | Estonian kroon | 15.6466 | 2011 |
Latvia | Latvian lats | 0.702804 | 2014 |
Lithuania | Lithuanian litas | 3.4528 | 2015 |
Croatia | Croatian kuna | 7.5345 | 2023 |
List of currency redenominations
[edit]This table lists various currency redenominations that have occurred, including currency renaming where the conversion rate is 1:1, but excluding decimalisation and joining the Eurozone, already listed on the table above.
New unit | Exchange rate (old:new) | Old unit | Year | Country | Reason | Note |
---|---|---|---|---|---|---|
Hungarian forint | 4×1029∶1
|
Hungarian pengő | 1946 | Hungary | Hyperinflation | This is a theoretical conversion rate, using2×1021pengő = 1 adópengő. The total value of all circulating pengő notes was less than1⁄1000of a forint or1⁄10of a fillér. |
Rentenmark | 1×1012∶1
|
Papiermark | 1923 | Germany | Hyperinflation | |
Zimbabwean dollar(4th) | 1×1012∶1
|
Zimbabwean dollar(3rd) | 2009 | Zimbabwe | Hyperinflation | Subsequently abandoned and replaced withZimbabwean bond notesand theZimdollarin February 2019 after a period of time in which numerous foreign currencies were used |
Greek drachma(2nd) | 50,000,000,000∶1
|
Greek drachma(1st) | 1944 | Greece | Hyperinflation | |
Zimbabwean dollar(3rd) | 10,000,000,000∶1
|
Zimbabwean dollar(2nd) | 2008 | Zimbabwe | Hyperinflation | |
Yugoslav 1994 dinar | 1,000,000,000∶1
|
1993 dinara | 1994 | Yugoslavia | Hyperinflation | Lasted for 23 days. |
3rdKrajina dinar | 1,000,000,000∶1
|
2ndKrajina dinar | 1994 | Republic of Serbian Krajina | Hyperinflation | |
Chinese "silver" yuan | 500,000,000∶1
|
"gold" yuan | 1949 | China (Republic of China) | Hyperinflation | |
Hungarian forint | 200,000,000∶1
|
Hungarian adópengő | 1946 | Hungary | Hyperinflation | |
Yugoslav novi dinar | 13,000,000∶1
|
1994 dinara | 1994 | Yugoslavia | Hyperinflation | Anchor currency:Deutsche Mark |
Nicaraguan córdoba(oro, 3rd) | 5,000,000∶1
|
Nicaraguan córdoba(2nd) | 1991 | Nicaragua | Inflation | |
Chinese "gold" yuan | 3,000,000∶1
|
(old) yuan | 1948 | China (Republic of China) | Inflation | |
Nouveau zaïre | 3,000,000∶1
|
First Zaïre | 1993 | Democratic Republic of the Congo | Inflation | |
Polish złoty(2nd) | 1,800,000∶1
|
Polish marka | 1924 | Poland | Hyperinflation | Anchor currencies:Swiss franc(equal in value, but not pegged) andUnited States dollar(pegged $1 = 5.18 zł) To limit production costs of coins, only banknotes were printed until November 1924. To further limit such costs, 500,000-mark and 10,000,000-mark notes were cut in two and overprinted1 GROSZand5 GROSZYin red. |
Boliviano | 1,000,000∶1
|
Peso boliviano | 1985 | Bolivia | Inflation | |
Peruvian nuevo sol | 1,000,000∶1
|
Peruvian inti | 1991 | Peru | Hyperinflation | The "nuevo" designation lasted until 2015. |
Yugoslav 1993 dinar | 1,000,000∶1
|
1992 dinara | 1993 | Yugoslavia | Hyperinflation | no official designation |
2ndKrajina dinar | 1,000,000∶1
|
1stKrajina dinar | 1993 | Republic of Serbian Krajina | Hyperinflation | |
Georgian lari | 1,000,000∶1
|
Georgian kuponi | 1995 | Georgia | Hyperinflation | |
SecondKwanza | 1,000,000∶1
|
Kwanza reajustado | 1999 | Angola | Inflation | |
Transnistrian ruble(3rd) | 1,000,000∶1
|
Transnistrian ruble(2nd) | 2001 | Transnistria | Hyperinflation | |
Turkish new lira | 1,000,000∶1
|
Turkish lira | 2005 | Turkey | Inflation | The "new" designation lasted until 2009. |
Venezuelan bolívar(4th) | 1,000,000∶1
|
Venezuelan bolívar(3rd) | 2021 | Venezuela | Hyperinflation | |
Hryvnia | 100,000∶1
|
3rdUkrainian karbovanets | 1996 | Ukraine | Inflation | |
SecondCongolese franc | 100,000∶1
|
Nouveau zaïre | 1998 | Democratic Republic of the Congo | Inflation | |
Bolívar Soberano | 100,000∶1
|
Bolivar Fuerte | 2018 | Venezuela | Hyperinflation | |
4th Soviet ruble | 50,000∶1
|
3rd Soviet ruble | 1924 | Soviet Union | Hyperinflation | To stop hyperinflation, the new currency wasbacked by gold. |
New Taiwan dollar | 40,000∶1
|
Taiwan dollars | 1949 | Taiwan (Republic of China) | Inflation | "new" is an official designation and is still used in official documents |
United States dollar | 25,000∶1
|
Sucre | 2000 | Ecuador | Inflation | Fulldollarizationfor banknotes. Ecuador also issuescentavo coins. |
Hungarian pengő | 12,500∶1
|
Hungarian korona | 1927 | Hungary | Inflation | |
2nd Soviet ruble | 10,000∶1
|
1st Soviet ruble | 1922 | Soviet Union | Hyperinflation | A superunit, called achervonets(червонец) was also introduced that year. It was worth 10 rubles. |
Austrian schilling | 10,000∶1
|
Austrian krone | 1925 | Austria | Inflation | |
Second Renminbi yuan | 10,000∶1
|
First Renminbi yuan | 1955 | China (People's Republic of China) | Inflation | |
Peso argentino | 10,000∶1
|
Peso ley | 1983 | Argentina | Inflation | |
Yugoslav 1990 dinar | 10,000∶1
|
1966 dinara | 1990 | Yugoslavia | Inflation | |
Peso (convertible) | 10,000∶1
|
Austral | 1992 | Argentina | Inflation | |
4thPolish złoty | 10,000∶1
|
3rdPolish złoty | 1995 | Poland | Inflation | For 2 years after the redenomination, the old currency coexisted with the new one, so prices had to be denominated in both currencies. |
Romanian leu(4th) | 10,000∶1
|
Romanian leu(3rd) | 2005 | Romania | Inflation | |
NewGhanaian cedi | 10,000∶1
|
Cedi | 2007 | Ghana | Inflation | |
ThirdBelarusian ruble | 10,000∶1
|
SecondBelarusian ruble | 2016 | Belarus | Inflation | |
United States dollar | ~6,900∶1[2]
|
Indonesian rupiah | 1999 | United Nations Transitional Administration in East Timor | Start of UN administration | |
Azerbaijani new manat | 5,000∶1
|
Second Azerbaijani manat | 2006 | Azerbaijan | Inflation | |
Turkmenistani new manat | 5,000∶1
|
(old) manat | 2009 | Turkmenistan | Inflation | |
Real | 2,750∶1
|
Cruzeiro real | 1994 | Brazil | Inflation | Anchor currency:United States dollar |
Cruzeiro (antigo) | 1,000∶1
|
Real(old) | 1942 | Brazil | Inflation | The cruzeiro was an alternative name for one mil réis. |
Greek drachma(3rd) | 1,000∶1
|
Greek drachma(2nd) | 1954 | Greece | Inflation | |
Chilean escudo | 1,000∶1
|
First Chilean peso | 1960 | Chile | Inflation | |
Peso boliviano | 1,000∶1
|
Firstboliviano | 1963 | Bolivia | Inflation | |
Rupiah (new) | 1,000∶1
|
First rupiah | 1965 | Indonesia | Monetary unification[3] | |
Cruzeiro (novo) | 1,000∶1
|
Cruzeiro (antigo) | 1967 | Brazil | Inflation | |
Firstzaïre | 1,000∶1
|
First congolese franc | 1967 | Democratic Republic of the Congo | Inflation | |
Nuevo peso | 1,000∶1
|
Peso moneda nacional | 1973 | Uruguay | Inflation | |
Chilean peso | 1,000∶1
|
Chilean escudo | 1975 | Chile | Inflation | |
Argentine austral | 1,000∶1
|
Argentine peso(1983) | 1985 | Argentina | Inflation | |
Peruvian inti | 1,000∶1
|
Peruvian sol(1863) | 1985 | Peru | Inflation | |
Cruzado | 1,000∶1
|
Cruzeiro (novo) | 1986 | Brazil | Inflation | |
New Shekel | 1,000∶1
|
Shekel | 1986 | Israel | Inflation | |
Nicaraguan córdoba(2nd) | 1,000∶1
|
Nicaraguan córdoba(1st) | 1988 | Nicaragua | ||
Cruzado Novo | 1,000∶1
|
Cruzado | 1989 | Brazil | Inflation | |
Cruzeiro real | 1,000∶1
|
Cruzeiro (third) | 1993 | Brazil | Inflation | |
Nuevopeso mexicano | 1,000∶1
|
Peso mexicano | 1993 | Mexico | Inflation | "nuevo" was a temporary designation dropped in 1996 |
Moldovan leu | 1,000∶1
|
Moldovan cupon | 1993 | Moldova | Inflation | |
Peso uruguayo | 1,000∶1
|
Nuevo peso | 1993 | Uruguay | Inflation | |
Croatian kuna | 1,000∶1
|
Croatian dinar | 1994 | Croatia | ||
2ndUzbekistani soum | 1,000∶1
|
1stUzbekistani soum | 1994 | Uzbekistan | Inflation | |
Kwanza reajustado | 1,000∶1
|
Novo kwanza | 1995 | Angola | Inflation | |
SecondRussian ruble | 1,000∶1
|
FirstRussian ruble | 1998 | Russia | Inflation | |
Bulgarian new lev | 1,000∶1
|
Bulgarian lev | 1999 | Bulgaria | Inflation | Anchor currency:German mark |
Tajikistani somoni | 1,000∶1
|
Tajikistani ruble | 2000 | Tajikistan | Inflation | |
Surinamese dollar | 1,000∶1
|
Surinamese guilder | 2004 | Suriname | Inflation | Old coins denominated in cents were declared to be worth their face value in the new cents. |
NewMozambican metical | 1,000∶1
|
(old) meticais | 2006 | Mozambique | Inflation | |
Zimbabwean dollar(2nd) | 1,000∶1
|
Zimbabwean dollar(1st) | 2006 | Zimbabwe | Inflation | |
SecondSudanese pound | 1,000∶1
|
FirstSudanese pounds | 2007 | Sudan | Inflation | Currency unification (peace treaty) |
Bolivar Fuerte | 1,000∶1
|
(old) Bolivar | 2008 | Venezuela | Inflation | |
Zambian kwacha | 1,000∶1
|
(old) Kwacha | 2013 | Zambia | Inflation | |
São Tomé and Príncipe dobra(2nd) | 1,000∶1
|
São Tomé and Príncipe dobra(1st) | 2018 | São Tomé and Príncipe | Inflation | |
Sierra Leonean leone | 1,000∶1
|
(old) Sierra Leonean leone | 2021[4] | Sierra Leone | Inflation | |
Liberation đồng | 500∶1
|
Đồng | 1975 | South Vietnam | Fall of Saigon | |
Turkmenistani manat | 500∶1
|
7th Soviet ruble | 1993 | Turkmenistan | Break-up of the Soviet Union | |
Kazakhstani tenge | 500∶1
|
7th Soviet ruble | 1993 | Kazakhstan | Break-up of the Soviet Union | |
3rdHaitian gourde | 300∶1
|
2ndHaitian gourde | 1872 | Haiti | ||
2ndLatvian lats | 200∶1
|
2ndLatvian rouble | 1993 | Latvia | Recycling old currency | |
Kyrgyzstani som | 200∶1
|
7th Soviet ruble | 1993 | Kyrgyzstan | Break-up of the Soviet Union | |
Armenian dram | 200∶1
|
7th Soviet ruble | 1993 | Armenia | Break-up of the Soviet Union | |
3rd Soviet ruble | 100∶1
|
2nd Soviet ruble | 1923 | Soviet Union | Hyperinflation | |
3rdPolish złoty | 100∶1
|
2ndPolish złoty | 1949 | Poland | Monetary reform | All bank assets were revalued at a ratio of 100∶3. |
South Korean hwan | 100∶1
|
firstSouth Korean won | 1954 | Republic of Korea | Inflation afterKorean War(1950–1953) and independence from Japan (1945) | |
NewFrench Franc | 100∶1
|
French Franc | 1960 | France | Inflation | "New" was a temporary designation dropped in 1963 |
NewFinnish markka | 100∶1
|
Finnish markka | 1963 | Finland | Inflation | |
Yugoslav 1966 dinar | 100∶1
|
1944 dinara | 1966 | Yugoslavia | Inflation | |
Peso ley | 100∶1
|
Peso moneda nacional | 1970 | Argentina | Inflation | |
Icelandic króna | 100∶1
|
Icelandic króna | 1981 | Iceland | Hyperinflation | |
SecondUgandan shilling | 100∶1
|
FirstUgandan shilling | 1987 | Uganda | Inflation | |
Lithuanian litas | 100∶1
|
Talonas | 1993 | Lithuania | Inflation | |
SecondMacedonian denar | 100∶1
|
FirstMacedonian denar | 1993 | North Macedonia | ||
Tajikistani ruble | 100∶1
|
FirstRussian ruble | 1995 | Tajikistan | Break-up of the Soviet Union | |
SecondSudanese pound | 100∶1
|
Sudanese dinars | 2007 | Sudan | Inflation | Currency unification (peace treaty) |
North Korean won(2nd) | 100∶1
|
North Korean won(1st) | 2009 | North Korea | Inflation | Redenomination by state |
CFA franc | 65∶1
|
Guinea-Bissau peso | 1997 | Guinea-Bissau | monetary union | West African CFA franc |
Guatemalan quetzal | 60∶1
|
Guatemalan peso | 1925 | Guatemala | ||
1stLatvian lats | 50∶1
|
1stLatvian rouble | 1922 | Latvia | Approval of "Regulations on Money" | |
Yugoslav 1944 dinar | 40∶1
|
Independent State of Croatia kuna | 1944 | Yugoslavia | Reconstituted Yugoslav Federation dinar replacing currency in use in its constituents | |
Peso moneda nacional | 25∶1
|
Peso moneda corriente | 1881 | Argentina | Inflation | |
Yugoslav 1944 dinar | 20∶1
|
Serbian 1941 dinar | 1944 | Yugoslavia | Reconstituted Yugoslav Federation dinar replacing currency in use in its constituents | |
Nicaraguan córdoba(1st) | 12.5∶1
|
Nicaraguan peso | 1912 | Nicaragua | ||
2ndHaitian gourde | 10∶1
|
1stHaitian gourde | 1870 | Haiti | ||
5th Soviet ruble | 10∶1
|
4th Soviet ruble | 1947 | Soviet Union | Inflation | |
6th Soviet ruble | 10∶1
|
5th Soviet ruble | 1961 | Soviet Union | Monetary reform | |
South Korean won(2nd) | 10∶1
|
South Korean hwan | 1963 | Republic of Korea | Inflation | |
Guinean syli | 10∶1
|
Guinean franc(1st) | 1971 | Guinea | ||
Israeli shekel(1st) | 10∶1
|
Israeli pound | 1980 | Israel | Inflation | |
Talonas | 10∶1
|
7th Soviet ruble | 1991 | Lithuania | Independence (from the Soviet Union) | No coins denominated in talonas were issued. |
Estonian kroon | 10∶1
|
7th Soviet ruble | 1992 | Estonia | Break-up of the Soviet Union | |
Azerbaijani manat(2nd) | 10∶1
|
7th Soviet ruble | 1992 | Azerbaijan | Break-up of the Soviet Union | |
Sudanese dinar | 10∶1
|
FirstSudanese pounds | 1992 | Sudan | Inflation | Applied only to North Sudan |
Yugoslav 1992 dinar | 10∶1
|
1990 dinara | 1992 | Yugoslavia | Inflation | |
FirstBelarusian ruble | 10∶1
|
7th Soviet ruble | 1994 | Belarus | Break-up of the Soviet Union | When Soviet rubles were still in use in Belarus, Belarusian ruble denominations were implied to be ten times more than Soviet rubles. |
SecondMauritanian ouguiya | 10∶1
|
FirstMauritanian ouguiya | 2018 | Mauritania | Inflation | The redenomination was an opportunity for the central bank to introduce more secure polymer banknotes. |
United States dollar | 8.75∶1
|
Colón | 2001 | El Salvador | dollarization | |
1stHaitian gourde | 8.25∶1
|
Haitian livre | 1813 | Haiti | 8 livres and 5sous.1 sou was equal to1⁄20of a livre. | |
Peso moneda corriente | 8∶1
|
Real | 1826 | Argentina | ||
Ouguiya | 5∶1
|
CFA franc | 1973 | Mauritania | ||
Ariary | 5∶1
|
Franc malgache | 2005 | Madagascar | From 1961, banknotes were issued denominated in both francs and ariary. | |
CFA franc | 4∶1
|
Ekwele | 1985 | Equatorial Guinea | monetary union | Central African CFA franc |
CFA franc | 2∶1
|
Franc malien | 1984 | Mali | monetary union | West African CFA franc |
Ghanaian cedi | 1.2∶1
|
Old cedi | 1967 | Ghana | Decimalisation, change of government | This was an opportunity to removeKwame Nkrumahfrom every denomination. |
Hungarian korona | At par
|
Austro-Hungarian krone | 1919 | Hungary | Break-up of Austria-Hungary | |
Austrian krone | At par
|
Austro-Hungarian krone | 1920 | Austria | Break-up of Austria-Hungary | |
Mongolian tögrög | At par
|
4th Soviet ruble | 1925 | Mongolia | ||
First Guinean franc | At par
|
CFA franc | 1959 | Guinea | Independence | |
Franc malien | At par
|
CFA franc | 1962 | Mali | Independence | |
FirstUgandan shilling | At par
|
East African shilling | 1966 | Uganda | Independence | |
Peseta guineana | At par
|
Spanish peseta | 1969 | Equatorial Guinea | Independence | |
FirstKwanza | At par
|
SecondAngolan escudo | 1975 | Angola | Independence | |
Ekwele | At par
|
Peseta guineana | 1975 | Equatorial Guinea | ||
Guinea-Bissau peso | At par
|
Portuguese Guinean escudo | 1975 | Guinea-Bissau | Independence | |
Franc guinéen | At par
|
Syli | 1985 | Guinea | ||
Novo kwanza | At par
|
FirstKwanza | 1990 | Angola | seizure of money supply by government | Angolans could only exchange 5% of all old notes for new ones; they had to exchange the rest for government securities |
Cruzeiro (third) | At par
|
Cruzado Novo | 1990 | Brazil | renaming | |
7th Soviet ruble | At par
|
6th Soviet ruble | 1991 | Soviet Union | Monetary reform,money seizure | 50-ruble and 100-ruble notes were withdrawn from circulation. |
Croatian dinar | At par
|
Yugoslav 1990 dinar | 1991 | Croatia | Break-up of Yugoslavia | |
Slovenian tolar | At par
|
Yugoslav 1990 dinar | 1991 | Slovenia | Break-up of Yugoslavia | |
2ndLatvian rouble | At par
|
7th Soviet rouble | 1992 | Latvia | Lack of money supply | While Soviet roubles were still used in Latvia, it had to introduce its own currency to make its monetary policy independent. |
Moldovan cupon | At par
|
7th Soviet ruble | 1992 | Moldova | Break-up of the Soviet Union | The cupon was a temporary currency, no coins were issued. |
1stKrajina dinar | At par
|
Yugoslav 1992 dinar | 1992 | Republic of Serbian Krajina | Break-up of Yugoslavia | |
1stRussian ruble | At par
|
7th Soviet ruble | 1992 | Russia | Break-up of the Soviet Union | |
FirstMacedonian denar | At par
|
Yugoslav 1990 dinar | 1992 | North Macedonia | Break-up of Yugoslavia | The first denar was a temporary currency, no coins were issued |
3rdUkrainian karbovanets | At par
|
7th Soviet ruble | 1992 | Ukraine | Break-up of the Soviet Union | |
Georgian kuponi | At par
|
7th Soviet ruble | 1993 | Georgia | Break-up of the Soviet Union | Only banknotes were issued. |
1stUzbekistani soum | At par
|
7th Soviet ruble | 1993 | Uzbekistan | Break-up of the Soviet Union | |
Đồng(unified) | 0.8∶1
|
Liberation đồng | 1978 | South Vietnam | Unification | |
Austro-Hungarian krone | 0.5∶1
|
Austro-Hungarian florin | 1892 | Austria-Hungary | monetary union | Moving from silver to gold standard |
Iranian Toman | 0.1∶1
|
Iranian Rial | 1932 | Iran | Monetary reform |
Proposed
[edit]Indonesia
[edit]A long-running proposal to redenominate the rupiah has yet to receive formal legislative consideration. Since 2010, Bank Indonesia, as the monetary authority of Indonesia, In 2015, the government submitted a rupiah redenomination bill to the House of Representatives, but it has not yet been deliberated. In 2017,Bank Indonesia GovernorAgus Martowardojoreiterated the call, saying that if redenomination started immediately, the process could be complete by 2024 or 2025.[5]
Iran
[edit]This proposal was approved by the Iranian parliament in May 2020. The changeover is likely to be phased over a period of up to two years.[6]
Japan
[edit]Numerous proposals have been made since the 1990s to redenominate the yen by introducing a new unit or new yen, equal to 100 yen, and nearly worth one U.S. dollar. This has not happened to date, since the yen remains trusted globally despite its low unit value, and due to the huge costs of reissuing new currency and updating currency-reading hardware. The negative impact of postponing upgrades to various computer software until redenomination occurs, in particular, was also cited.[7]
Lebanon
[edit]Due toLebanese liquidity crisis,the Lebanese Pound Has Collapsed to nearly 90.000 for one dollar,[8]
Nigeria
[edit]Due to inflation Nigerian coins are all essentially worthless now, there are propositions to redenominate[9]
South Korea
[edit]There have been recurring proposals in theSouth Korean National Assemblyto redenominate the won by introducing a new won or new unit, equal to 1,000 old won, and worth nearly oneU.S. dollar.While proponents cite a more valuable currency unit better projects the strength of the nation's economy, a majority remain opposed to the idea. Reasons cited are: economic harm if done immediately, no issues on public confidence in the won and its inflation rate, limited cost savings, and the presence of more urgent economic issues.[10]
Vietnam
[edit]In response to increasing pressure on theVietnamese dongas a result of high inflation in the US Dollar, different proposals to redenominate[11]
Alternatives
[edit]Japanese invasion moneysuffered from heavy inflation. At the end ofWorld War IIgovernments of liberated countries and territories opted to simply declare them worthless.
In 2016, theColombian pesowas rated at around 3,000 per U.S. dollar, with banknotes up to 50,000 pesos. Instead of redenominating the currency, a new banknote design was introduced, with the last three zeroes replaced by the word "mil" (thousand), making the values easier to read.
See also
[edit]References
[edit]- ^"It's decided: 2005 talk instead of 1 Leu RON 10,000; Ziarul Financiar".Zf.ro. 2004-01-29.Archivedfrom the original on 2019-12-16.Retrieved2016-12-05.
- ^"Historical Rates Tables - IDR; 25 October 1999".Xe.Retrieved2 May2021.
- ^"Indonesia Pernah Lakukan Redenominasi pada 1965".4 March 2013.
- ^"Sierra Leone to cut three zeros from currency".12 August 2021.
- ^It is time for rupiah redenomination, central bank saysArchived20 September 2020 at theWayback Machine,Jakarta Post, 30 May 2017
- ^"Iran Parliament Approves Bill To Change Currency, Slash Four Zeros".en.radiofarda.com. May 4, 2020.Retrieved2023-10-01.
- ^"Coalition sets up talks on yen's redenomination. - Free Online Library".Archivedfrom the original on December 14, 2021.RetrievedDecember 14,2021.
- ^"A Severe Economic Crisis in Lebanon: The Lebanese Pound Has Collapsed".18 July 2022.
- ^"The Inevitable Choice Between N10,000 Note and Redenomination".24 October 2017.
- ^"Redenomination: boon or bane?".The Korea Times.15 April 2019.Archivedfrom the original on 2022-04-16.Retrieved2022-03-16.
- ^"Time for Vietnam to lop zeros off its currency".27 May 2019.