Demonetized: meaning, definitions and examples

financial context

The term demonetized refers to the act of stripping a currency unit of its status as legal tender. This process often occurs when a government or central bank decides to invalidate old currency notes or coins, making them no longer acceptable for transactions. Demonetization can be part of a broader economic strategy, such as combating inflation or implementing new currency designs. The removal of legal tender status can create confusion and disruption among the public, especially if not properly communicated.

decommission, invalidate, revoke

Examples of usage

• The old notes were demonetized last year.

• Many businesses were affected when the currency was demonetized.

• After the demonetization, people rushed to exchange their old bills.