Quick Definition

Demonetization is the act of stripping a currency unit of its status as legal tender, typically to introduce new notes or coins, or to combat inflation and corruption.

Examples

• 1In 2016, India demonetized its 500 and 1000 rupee notes to curb corruption and black money.
• 2Several countries have demonetized their currencies to transition to the Euro.
• 3Zimbabwe demonetized the Zimbabwean dollar in 2015 to combat hyperinflation.
• 4When the UK switched to decimal currency, the old pounds, shillings, and pence were demonetized.

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