<p>Before the redenomination, 1,000,000 of the currency = 1 USD.</p>
<p>After the rednomination, 1 of the currency = 1 USD.</p>
<p>All the prices have 6 0's taken off, including the price of 1 USD.</p>

CC BY-SA 4.0
2023-07-24T12:04:14.767Z
2023-07-24T12:04:14.767Z
Criticize SE actions means ban
<p>When a currency is redenominated, for example 1,000,000 = 1, which is done in response to hyperinflation due to government abuse of moneyprinting, do the people with a lot of the currency lose?</p>
<p>For example, if someone holds 1 billion of the currency at the original rate, supposing that 1,000,000 = 1 of another currency like USD, then the person would have the equivalent of 1,000 USD.</p>
<p>But when it is redenominated 1,000,000:1, will they now only hold 1,000 currency, equivalent to 1 USD? Or will the currency they hold still be worth the same amount?</p>

CC BY-SA 4.0
2023-07-21T15:03:27.480Z
It's just a bunch of zeros taken away from the number.when Germany introduced the EUR, 1 EUR = 1,95583 DM. It's a different currency in this case but swap EUR to DM and you have your example. You just need "less" to buy 1 USD now. People with a lot of currency do lose money in a hyper inflation though, just not because of redenominations.
AKdemy
CC BY-SA 4.0
2024-01-22T11:35:58.527Z
Although in a situation like this, anyone holding the currency probably already lost purchasing power as the exchange rate per USD  increased rapidly in the run up to the redenomination. .
dm63
<currency><money>
When a currency is redenominated, do people with a lot of it lose?
economics
# When a currency is redenominated, do people with a lot of it lose?

(Asked by: username_0 on 2023-07-21)

When a currency is redenominated, for example 1,000,000 = 1, which is done in response to hyperinflation due to government abuse of moneyprinting, do the people with a lot of the currency lose?

For example, if someone holds 1 billion of the currency at the original rate, supposing that 1,000,000 = 1 of another currency like USD, then the person would have the equivalent of 1,000 USD.

But when it is redenominated 1,000,000:1, will they now only hold 1,000 currency, equivalent to 1 USD? Or will the currency they hold still be worth the same amount?

**Tags:** currency, money
> **Comments:**
> **username_1**: It's just a bunch of zeros taken away from the number.when Germany introduced the EUR, 1 EUR = 1,95583 DM. It's a different currency in this case but swap EUR to DM and you have your example. You just need "less" to buy 1 USD now. People with a lot of currency do lose money in a hyper inflation though, just not because of redenominations.  
> **username_2**: Although in a situation like this, anyone holding the currency probably already lost purchasing power as the exchange rate per USD  increased rapidly in the run up to the redenomination. .  

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## 1 answers

### Answer by username_3 on 2023-07-24. Score: 0

Before the redenomination, 1,000,000 of the currency = 1 USD.

After the rednomination, 1 of the currency = 1 USD.

All the prices have 6 0's taken off, including the price of 1 USD.


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