How did Romania manage to save its currency in the 2000s by just dropping the last couple of zeros? Wouldn’t other countries be able to do the same?

Question

How did Romania manage to save its currency in the 2000s by just dropping the last couple of zeros? Wouldn’t other countries be able to do the same?

In: 138

Answer 1

>Wouldn’t other countries be able to do the same?

Other countries have done the same. Usually with a new name to inspire confidence (or minimise the loss of confidence).

Mostly you want to avoid needing to save your currency, though. Investors tend to avoid investing in countries that make their money worthless on a regular basis.

… unless you’re Greece. They were rather disappointed when they couldn’t just devalue their own currency after joining the euro.