Demonetizing: meaning, definitions and examples
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demonetizing
[ ˌdiːməˈnɛtaɪzɪŋ ]
financial term
Demonetizing refers to the process of stripping a currency unit of its status as legal tender. This can be done for a variety of reasons, including the need to combat counterfeit money, reduce inflation, or implement a new currency system. The act often leads to the withdrawal of certain banknotes or coins from circulation. Demonetization can have significant economic impacts, affecting businesses, consumers, and overall market stability.
Synonyms
delegalize, discontinue, invalidate
Examples of usage
- The government announced demonetizing a large denomination banknote.
- Demonetizing has led to a temporary cash shortage in the economy.
- Experts debated the potential effects of demonetizing against inflation.
Translations
Translations of the word "demonetizing" in other languages:
🇵🇹 desmonetização
🇮🇳 डिमोनेटाइजिंग
🇩🇪 Demonetarisierung
🇮🇩 demonetisasi
🇺🇦 дедоларизація
🇵🇱 demonetyzacja
🇯🇵 デモネタイズ
🇫🇷 démontisation
🇪🇸 desmonetización
🇹🇷 demonetizasyon
🇰🇷 디모네타이징
🇸🇦 إزالة العملات
🇨🇿 demonetizace
🇸🇰 demonetizácia
🇨🇳 去货币化
🇸🇮 demonetizacija
🇮🇸 demonetization
🇰🇿 дедоларизация
🇬🇪 დემონეტიზაცია
🇦🇿 demonetizasiya
🇲🇽 desmonetización
Etymology
The term 'demonetize' comes from the prefix 'de-' meaning to reverse an action and the word 'monetize' which is derived from the Latin word 'moneta', referring to currency or money. The practice itself has a long history, with notable instances occurring in various countries, particularly during times of economic crisis. Demonetization is often considered a drastic measure as it can disrupt the economy and create a shock among citizens who rely on cash transactions. Countries like India have implemented demonetization policies which stirred debate over the effectiveness and impact on the economy. Throughout history, the act of demonetizing has been closely linked to efforts to modernize monetary systems and address issues like tax evasion and black market transactions.