Currency cut

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Currency cut is the introduction of a new currency with a fixed accounting unit for the old currency, usually in a decimal ratio. The old currency is taken out of the course and exchanged for the new currency in the fixed ratio. A currency cut makes sense if inflation results in oversized sums, so that an under-currency would no longer make sense, or if a new currency is introduced. If there is a change in the share of assets, this is not just a currency cut, but also a currency reform . So was z. For example, with the Israeli currency average of July 4, 1985, only those book money stocks that were reported to the tax office were exchanged. With the introduction of the new currency, large stocks of book money were eliminated, which amounts to a currency reform: The money supply was reduced at the expense of tax evaders and inflation was reduced.

Historical examples


Individual evidence

  1. ^ The time of March 14, 1980
  2. ^ The time of June 13, 1986
  3. Handelsblatt dated September 30, 2004

To be distinguished from