Denomination - a change in the value of money after withdrawal of the old and the introduction of new means of treatment.The most common cause of this process becomes inflation.Let us examine this phenomenon.
word "denomination" - a term that has come from Latin.Translated from the language it means "rename".Denomination currency value changes.This process is not just touched the CIS countries and more developed states.As a rule, first the national currency strong, inflation attains.As a result of these or other reasons, the money is too much, which leads to their depreciation.At some point, the inflation rate reaches a critical.After that, the government has no choice but to take the decision to hold monetary reform.The old banknotes are withdrawn from use.Citizens and various agencies rent them.One unit of new money take a certain amount of old.All prices, wages and prices are adjusted at the same time.They are now calculated in the new currency.Actually, the process is the denomination.This measure, which is designed to eliminate hyperinflation, to strengthen confidence in the national currency.
In simple terms, the denomination - a reduction in the number of zeros of a separate treatment unit.One can cite as an example of a currency reform in Turkey, carried out in 2005.A million old lira became one new.Denomination leads to a severe reduction in the number of funds in the state turn.For example, in Turkish lira in 2005 it was less a million times.With the reduction of the money supply to ensure the currency with gold increases.For the population it is convenient, because much easier to pay bills less dignity.This makes it easier and accounting, since there is no need in operating huge, but in no way justified by numbers.
worth remembering denomination examples from the history of Russia.After the collapse of the Soviet Union sharply devalued the ruble.Salaries steel counted in the millions.Some improvement in the economic and political situation in Russia enabled the fight inflation decisive measures.The denomination of the ruble took place in 1998.This process was preparing six months.In the summer of 1997, it was signed a special decree on the future change of nominal value of Russian money.That same year, the Central Bank of Russia won the printing of new bank notes.And now, at the beginning of 1998 they have appeared in circulation.Ruble, released in 1997, consistent with thousands of old.The currency reform was carried out gently and not hit the public finances.Rubles old model can be used in circulation before the end of 1998 and exchanged for new until 2002.In the course of this reform was withdrawn more than six billion banknotes.Naturally, it was beneficial not only to accountants, who are tired of the set of zeros, but also the population.No longer be "millionaires", people have become more rational to treat the waste of his blood.
Currently sometimes rumors of the impending new monetary reform.Many not so long ago believed that the denomination of the ruble in 2013 is possible.However, at the moment there are no objective reasons for such a reform carried out.Inflation still has room to grow, and to remove one toe with banknotes there is no point.
