Redenomination

Redenomination of a currency is an act usually imposed by a country's government to adjust its currency to compensate for extreme inflation. A good example is the German hyperinflation in the early 1920's where the value of the German currency the Mark was replaced with a new currency called the Rentenmark. The redenomination of the German currency allowed the exchange of 1 trillion old marks to 1 Rentenmark.

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