What is a denomination? Will there be a denomination of the ruble in Russia?

On the question of what a denomination is, you can answer this way: this is a reduction in the nominal expression of banknotes issued by the state. It so happened that the exchange of money - the process is not so rare and mostly unpleasant. Only after the Second World War over six hundred denominations were held worldwide. If the country's economy is in a normal state, then this concept is purely technical in nature. The more interesting the denomination of money becomes, if accompanied by hyperinflation.

Types of denomination

Note that in some cases this term refers to the substitution of one currency for another, while their nominal value remains unchanged. There are full and partial denominations. In the first case, all existing denominations are replaced, in the second case there are banknotes of one or several denominations. By the speed of implementation, the denomination process can be fast, slow, long and unlimited. The first type was extremely popular in Soviet times, and the latter is typical for the United States. On the impact on citizens of the country, reforms can be "tough" or "soft".

What is a denomination in Soviet

In 1913, the Russian ruble was a good and respected currency, based on the gold standard, but over time it had to go through a lot. In August 1914, the free exchange of paper money for gold was stopped. The state bank was allowed to issue paper money in unlimited quantities, but within reason. As a result, in circulation there was an amount of two and a half billion rubles, and by March 1917 it had increased to 9.9 billion. The provisional government, trying to stabilize the situation, increased the speed of the printing press, and the money supply doubled.

The Bolsheviks during this period were obsessed with the idea of a complete cancellation of money, but at the same time printed new, unsecured banknotes even faster than the interim government. But this was not enough. For this reason, the short-term obligations of the State Treasury were issued. There was a small hope that it would be possible at the expense of the measures taken to stabilize the economy, but the aspirations were not to come true: the civil war began. The situation improved slightly only with the proclamation of the NEP, a monetary reform was carried out, the ideologist of which was Sokolnikov G.Ya. Within the framework of this reform, as many as three denominations were carried out - in 1922, 1923 and 1924. Ruble eventually became cheaper by 50 thousand times! At the same time, it was decided to issue bank notes secured with gold - chervontsi. Despite this, the old money was in circulation until 1947.

Stalin's monetary reform

What is the Sokolnikov denomination, a few already remember, but the reform, held on December 14, 1947, is probably still alive in the memory of the older generation. The people were given only one week to exchange old money for new bills. At the same time the course was monstrous - 10: 1. True, bank deposits were exchanged at a more favorable tariff, but they were available to a few citizens. Along with the monetary reform, cards for basic foodstuffs were canceled. All goods could be bought freely, but at noticeably increased prices. The people were brazenly robbed, but at the same time the monetary circulation became stable.

The 1961 denomination

The reform carried out in 1961 was not particularly necessary from the economic point of view. It was just one of the periods of the "voluntarism" era. The coinage of new coins began in 1958, and new paper units began to be printed in late 1959. But what is the denomination of the USSR, the citizens of the country learned only on January 1, 1961, when the exchange rate was again predatory - all the same 10: 1. People, remembering the previous reform, rushed to the banks in the hope of making a more profitable exchange, but this time the preferential rate was not envisaged. Money managed to be changed by all, and the number of exchange symbols was not limited. However, those who exchanged them too much, the law enforcement agencies took note, but, in general, the reform went smoothly.

Monetary reforms in other countries

The meaning of the word denomination is known in all countries. The exchange of money was used as an instrument of the class struggle on the path of socialism. In the postwar period, reform was carried out in Poland and the Czech Republic. Each person could exchange not more than 500 monetary units. In the same years in Romania for one new leu it was necessary to give 20 thousand old nominal signs. There was also a denomination of the Belarusian ruble. In total, since independence, two monetary reforms have been carried out in this country - in 1994 and 2000. In 2011, the issue of the relevance of the third denomination was raised due to the rapid growth of consumer prices, but experts rejected such a need. In addition, the denomination is a complex and expensive project, and the economic situation in Belarus in no way contributes to this.

The Russian Reform of 1997

What is the denomination, the Russians learned in August 1997, when the state decided to cross out the scratch on the banknotes of zero zero. As a result, Russian citizens instantly turned from millionaires into ordinary poor people. Representatives of the Central Bank in the year of the denomination persuaded the people that there is no cause for concern, and reform is just a technical act to facilitate calculations in the economy, it has no quantitative or temporal limitations. Officials argued that changing the cost of bank notes would be a victory over inflation, but in reality it was too early to talk about stabilizing the economy. And it became clear already in August 1998 after the financial crisis. During this period, the ruble fell sharply, and inflation reached tens of percent per year.

After the reform, the first Russian president made a promise that there will be no more zeros on Russian money signs. But in 2006 this promise was partially violated with the appearance of banknotes in nominal value of five thousand rubles. Will the denomination of the ruble in Russia in 2014, can not be reliably said. Professional analysts are skeptical of rumors about a possible monetary reform in the country. They say that Russia is not interested in the denomination, because the event is expensive, and money in the budget after the cost of the Olympics is not enough to hold it.

Why there are rumors about a possible denomination

According to some sources, the rumor about the implementation of the monetary reform in 2014 is being dissolved by Russian bankers. This can be explained by the fact that as a result of removing extra zeros on banknotes, the inflow of bank deposits will increase, since in such institutions there is an exchange at the most favorable tariff for Russian citizens. But there is another opinion on this matter. Rumors could spread realtors, concerned about the temporary drop in the cost of housing. Experts say that many citizens still remember the previous reforms of the Soviet era, accompanied by defaults, and they will hurry to get rid of cash, investing it in the acquisition of real estate. This is a kind of strategic move in an effort to "revive" the real estate market in Russia. But all this is only a reasoning, to which one should be treated if not skeptical, then at least critically. Finally, we note that in the next two years, the denomination is not exactly foreseen, largely due to the lack of funds for its conduct. So we can sleep peacefully!