And by a reset on currency I mean a reset on the value of their currency. Take Iranian rial for example, their exchange rate is 371,992 to a single U.S. dollar. Could a rial ever have a 1:1 ratio without ever collapsing? I obv not a finance bro
In: Economics
Yeah, redenomination/revaluation. Happens occasionally in countries with high/hyperinflation…. Zimbabwe did it three times, knocking off like 29 zeroes.
Turkey did in 2005. https://en.wikipedia.org/wiki/Revaluation_of_the_Turkish_lira
Often it will be called the ‘new dollar’, ‘new lira’, ‘new rial’, etc.
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