Desde Investopedia

TERM OF THE DAY

Demonetization Demonetization is the act of stripping a currency unit of its status as legal tender. Demonetization is necessary whenever there is a change of national currency. The old unit of currency must be retired and replaced with a new currency unit.  The opposite of demonetization is remonetization where a form of payment is restored as legal tender.

Breaking it Down: There are multiple reasons why nations demonetize their local units of currency. Some reasons include to combat inflation, to combat corruption, and to discourage... Read More