Many people ask when the ruble will be redenominated in Russia. However, it is not at all easy to answer. Denomination is a phenomenon in economics in which extra zeros are removed from banknotes and on price tags in stores. In contrast, it does not depreciate. The word "denomination" is translated from Greek as "renaming." In this process, bills of the same value are assigned lower values, which greatly simplifies cash settlements. The article gives an approximate answer to the question of when the ruble will be redenominated in Russia.

Ruble denomination in 1998

A shining example of denomination national currency is the denomination of the ruble in 1998. The reasons why this was done were as follows:

• Very high rates of inflation, so-called hyperinflation. In this process, money quickly depreciates, which forces people to switch to higher denomination notes. In the 90s, inflation was catastrophic.
• Financial crisis 1998. It was the last severe crisis of the 90s, after which a gradual economic recovery began.
• The economic situation in the country begins to improve.

The last point is important because redenomination should be carried out only when the economy begins to improve, otherwise it may lead to a worsening situation.

During the 1998 redenomination, notes with six-digit values ​​were replaced with normal denominations.

Thus, the year of ruble denomination in Russia is 1998.

Why is currency denomination carried out?

The denomination of the ruble in Russia is associated with several reasons. The main goal is to curb inflation, as well as eliminate its consequences. Normal inflation rarely necessitates a redenomination, but when it is too rapid, a redenomination may be necessary. At the same time, the consequences of inflation can be largely neutralized. To achieve such results, you need a competent and thoughtful approach.

Another important goal is to simplify monetary transactions. In the 90s, payments had to be made using banknotes with a large number of zeros, and this, of course, complicated the life of both sellers and buyers. Simply put, it was completely inconvenient. Especially when it comes to buying expensive things.

The third goal is to optimize the amount of money produced. When hyperinflation occurs, there is an increase money supply associated with an increase in size and number banknotes. As a result, significantly more funds are spent on issuing money. And carrying out a denomination optimizes such expenses.

Another goal is to identify hidden cash income and general monetary status in rubles. When exchanging old banknotes for new ones, it will be clear how much ruble money a person had.

Thus, under a certain state of the economy, holding monetary reform in Russia (ruble denomination) is a necessary procedure.

Psychological aspect

Some people may experience tension associated with the subjective feeling of a decrease in personal income. Therefore, when carrying out a denomination, it is important to correctly inform citizens about the absence of negative consequences for their personal well-being.

What needs to be done when denominating?

If the decree on this procedure has already been signed, then you need to collect all your ruble savings and visit a special point for exchanging old currency for new. There is no need to be afraid of not having time and being left with nothing. After all, quite a lot of time is allocated for the denomination process. Thus, during the 1998 denomination exchange offices worked until 2002.

What about bank accounts and electronic money, they will be changed automatically.

Will there be a redenomination of the ruble in Russia?

Rumors about the imminent redenomination of the ruble leak from time to time. However, this information is not true. No bills are being prepared in this regard. The country is in a state of recession, and the authorities have so far refrained from making any radical decisions. The massive transition to electronic currency is also a hindrance.

As for paper money, one cannot help but note the fact that they have depreciated greatly in recent years. Just a few years ago, a banknote with a face value of 1000 rubles could provide quite a a large number of small purchases. Now you can buy very little with it. Everyone is increasingly expending money. But the situation has not yet reached a critical level, as it was in the 90s. This means that no special monetary reform will be required.

There will be no denomination of the ruble in Russia due to the large number of different banks. With such a number, it will be difficult for the state to monitor the implementation of the decree on currency denomination. Observed in Lately reducing the number of banking institutions can improve state control over them and speed up redenomination if the need arises.

The decline in inflation rates to low levels in recent years may be a reason to postpone the decision on currency reform. However, to ensure that prices continue to be stable, given the high dependence Russian economy no one can depend on world prices for raw materials. If the inflation rate is above 10% per year, then the state may decide to carry out a redenomination. Now it is about 4% per year, and oil prices are quite stable. In connection with all this, the likelihood of a denomination in the coming years is extremely small.

Should we expect a redenomination of the ruble in 2019?

Many people are interested in the question of in what year the ruble will be redenominated in Russia. Unfortunately, even economists don’t know the answer. Regarding 2019, we can say more definitely. The likelihood of a ruble denomination in 2019 is, of course, very low. The magnitude of the risk can be influenced by various factors, but so far they remain relatively stable.

• Fundamental factors. The main thing for our country’s economy now is the stability of oil and gas prices, due to high demand for raw materials in Asia and declining prospects for increasing shale production in the United States. Oil will remain in demand on world markets in the coming years, and therefore no disasters will obviously occur in the Russian economy. Currently, the price of a barrel fluctuates around $75, and in all likelihood, it will remain high in 2019.
• Dollar exchange rate. IN recent months it has grown noticeably, which is largely due to US sanctions, but so far the situation is far from critical. The US's ability to impose sanctions against Russia is quite limited.
• Geopolitical situation. Here, too, everything is quite stable so far. Relations with the EU are improving, trade ties with China are increasing. The situation in Ukraine is no longer as acute as it was 3-4 years ago.
• Possibility of recovery economic growth. Change economic course could improve the state of the Russian economy. It is likely that such measures will be gradually adopted by the Russian authorities. The main step could be to move away from focusing on the export of raw materials and increase the share of processing industries. Otherwise there will always be risks. The more stable the economy is, the lower the likelihood of hyperinflation and subsequent redenomination of the ruble.

When will the ruble be redenominated in Russia?

It’s really not worth waiting for the ruble to be redenominated in the next 2 years. However, expert opinions on the longer term are no longer so definite. The main threat to the Russian economy after 2020 will be its high dependence on raw materials. Now our country is benefiting because it has reserves of precisely those resources that are most in demand in the world. However, the range of resources in demand may change in the future.

Now main source Foreign currency receipts in our country come from the export of oil, gas and petroleum products. And if everything is in order with our natural gas reserves, then oil resources are quickly depleted. After 2020, the cost of crude oil production may increase, and its volume will begin to decline. As a result, it will decrease net profit from the export of this type of hydrocarbons.

The revolution in renewable energy sources and alternative modes of transport, which began in recent years, could bring oil and coal prices down to $10 per barrel. This is the opinion of the French oil company Engie. History shows that technical revolutions may occur with high speed, many times exceeding previously made forecasts. It is no coincidence that the largest oil companies the world is already planning to adapt to future changes. The Russians are not yet ready for this at all.

The decline in global gas consumption poses less of a threat to Russia, as global demand forecasts are more favorable there.

Declining dollar revenues will contribute to the development of the budget deficit. Gradual exhaustion reserve funds will increase the burden on the ruble and lead to a rise in the price of the dollar and euro. All this could cause a new surge in inflation, which means the risk of ruble denomination will increase.

Geopolitical risks

After the end of Donald Trump's presidency, the European Union may once again turn away from Russia and unite with the United States. Such a scenario could lead to the introduction of new collective sanctions and a subsequent weakening of the ruble. Such a situation will cause new round inflation and will increase the risk of denomination of the Russian currency.

Recovery of the Russian economy

To minimize all these risks, it is necessary now to move away from dependence on raw materials and reduce dependence on imported equipment. According to experts, the measures currently taken are not enough to achieve such goals. Oil and gas revenues still dominate, and the share of imports of foreign products is very high. The problem of overcoming technological backwardness also remains unresolved.

Conclusion

Thus, to the question of when the ruble will be redenominated in Russia, we tried to give the most complete answer. The most important conclusion is that there is no point in expecting a redenomination of the ruble in the coming years, but it is possible in the more distant future unless a radical change in the economic course is made. As for the date of redenomination of the ruble in Russia, no one knows it now.

Denomination has a lot of consequences that have a positive impact on the country's economy. But in 2015-2016 denomination was not carried out, and it is unlikely that it will happen in the near future. Why was the decision not made to change the nominal value of the ruble and reduce the money supply?

What is the denomination of the ruble?

At denominations the state gets rid of excess money supply. Current banknotes are replaced with money of lower denominations. In the words of ordinary people, when denominations The zeroes are removed from banknotes. In 1961, only one zero was removed; in 1997, three zeros were removed. Changes immediately occur in the payment of wages, pensions and scholarships. Prices in stores change, the cost of services provided changes, and tariffs are recalculated.

Denomination, as a rule, is produced after severe hyperinflation, when there is too much money in circulation (see: What is hyperinflation?). The state has to issue ever larger banknotes, small denomination money becomes unclaimed, but at the same time it cannot be removed from circulation. As a result, the money circulation process becomes complicated due to too large numbers.

denomination, it pursues several goals at once:

1. Reducing the cost of issuing new banknotes. Indeed, in addition to having to print new money of large denominations, it is necessary to constantly update small bills. And their number is growing every day.
2. Simplification of calculations. Let’s say a stick of sausage in a store costs 500,000 rubles. The buyer asks that about a third be cut off for him. The seller cuts it off, but he is unlikely to be able to cut off the strictly required weight. As a result, the piece weighs 347 grams - which is 173,500 rubles. That is, the buyer should have hundreds, thousand, 10 thousand and hundred bills in his wallet. Or the seller will have to count out such change. But in this example, the cost of sausage is expressed as a round number. What would happen to the calculations if the price for the stick turned out to be 575,350 rubles? As a result, confusion begins in payments.
3. Revealing hidden income. Since people have to exchange all their money, they are forced to take out all their savings to exchange.
4. Strengthening the national currency.

Denomination in Russia - what is needed to carry it out?

In order to carry out denomination, it is necessary that at least 2 conditions be met:

1. The country is about to experience hyperinflation. That is, the amount of money should increase so much that it becomes inconvenient to use it.
2. The crisis must pass. That is, the economic situation in the country should stabilize, inflation should not exceed 12% and banks should start issuing loans.

Only under these conditions can it be carried out denomination. Otherwise, it may negatively affect the country’s economy and people’s psychology. After all, if the government carries out denomination At the wrong time, inflation rates may increase again and again lead to the depreciation of the national currency.

When denomination carried out on time, it does not have any negative impact on the well-being of the population - on the contrary, it only has a positive effect on the country’s economy and the well-being of the population.

How does denomination happen?

When the government decides to carry out denomination, at the appointed time, new bills are thrown into the market and old ones are withdrawn.

This process can be carried out quickly, within a few weeks - in this case, during this period, the entire population should have time to come to the bank and exchange all their cash. Money in accounts is replaced automatically.

However, this method of exchanging money, although it happens quickly, is quite difficult to tolerate for most of the population. Therefore most often denomination lasts several years. For example, during the last denominations The decree on changing the nominal value of money was signed at the end of the summer of 1997, but old and new banknotes were simultaneously in circulation for 5 years. During this period, the same product in a store could be bought, for example, for 1000 old rubles or for 1 new one. But the country's population gradually got used to the new money.

Why was there no ruble denomination in 2015-2016?

For several years, from 2014 to the present, information continues to appear in the press about the possible holding of denominations. The value of the ruble is falling; coins in denominations of 1, 5 and 10 kopecks are practically no longer in circulation. It turns out that for denominations there were and are all the prerequisites, but the zeros on banknotes still remain. Why was it not carried out? denomination?

The main reason for this is the failure to fulfill the basic condition for its implementation. In order to carry out denomination It is necessary to first stabilize the country's economy, but the situation with this is still unclear. It is impossible to exchange money in such conditions, since it may turn out that in just a few years denomination will be needed again. And there was no hyperinflation in Russia - and all people hope that there will not be.

Another reason why it wasn't denominations in the past and current years, is the state’s lack of free Money. It’s already hard for the state to provide for public sectors. And issuing new banknotes is an additional cost, and a considerable one at that. And holding this event could seriously undermine the country's economy.

Should we expect a denomination in the near future?

Despite the large number of rumors about a possible denominations, the likelihood of it happening is low. Currently, a large number of transactions are carried out using non-cash payments. The amount of cash is decreasing every year, more and more customers pay in stores and banks using plastic cards. Many have accounts in electronic payment systems (WebMoney, Yandex.Money, etc.). It turns out that the increase in government spending on updating the money supply is not so great and the issued banknotes cope with their task quite well.

In addition, all banks, payment systems and organizations must change the number of zeros in accounts. Today there are so many of them that it is almost impossible to control everything. And if at least one finance company won't hold denomination their non-cash funds on the appointed day, an economic boom may occur.

For these reasons denominations there was none in 2015-2016, and there is little likelihood that it will happen in the near future. If inflation does not change its rate and does not exceed 10% per year, then in the next 50 years the state is unlikely to decide on such actions.

Sometimes, when it comes to the economy of a country, the term “denomination” may slip through. Not everyone is well aware of what it really is.

What is the denomination of the ruble

In this article we will try to talk about what a denomination is in simple words.

Denomination

Ruble denomination

• default.

The word denomination

The word denomination in English letters (transliterated) - denominatsiya

The word denomination consists of 11 letters: a d e i m n o c i

Meanings of the word denomination. What is a denomination?

Denomination

Denomination is a change in the face value of money in a certain ratio. Denomination can be carried out as a technical procedure, where the exchange of money is carried out over a long period of time, or as a confiscation reform...

Dictionary of banking terms and economic concepts

DENOMINATION (from lat.

Denomination and its consequences

denominatio - renaming) consolidation of the country's monetary unit without changing its name, carried out in order to facilitate money circulation and giving greater value to money.

Raizberg B.A. Modern economic dictionary. — 1999

Denomination is a change in the scale of prices by enlarging the face value of banknotes, with the exchange of paper money (“crossing out zeros”).

slovar-lopatnikov.ru

Denomination (from Latin denominátio - “renaming”) is a concept in religious studies that denotes a type of religious organization that is in the process of formation, religious formation.

en.wikipedia.org

DENOMINATION (from Latin denomi-natio - endowment with a special name) - in a general sense - a group of persons or objects united by one name. In religious studies, the term “D.” most often used to refer to re-leagues. associations...

Atheistic Dictionary. - M, 1986

A denomination is a religious group intermediate between a church and a sect. According to R. Niebuhr, the denomination does not claim the status of a leading or state church.

A brief dictionary of philosophical terms

Denomination of Shares

DENOMINATION OF SHARES is a change in the par value of shares previously issued by a company by exchanging them in a certain proportion for shares of a different par value of the same company.

Great Accounting Dictionary

Redenomination of Shares is a change in the par value of shares previously issued by a joint stock company as a result of exchange in the stated proportion for shares of a different par value of the same company.

Dictionary of business terms. — 2001

Protestant denominations

List of Protestant movements and denominations belonging to them. Currents are given by time of occurrence, denominations are listed in alphabetical order.

en.wikipedia.org

Russian language

Denomination, -i.

Orthographic dictionary. - 2004

What is a denomination?

Sometimes, when it comes to the economy of a country, the term “denomination” may slip through. Not everyone is well aware of what it really is. In this article we will try to talk about what a denomination is in simple words.

Denomination- This is a monetary reform, as a result of which banknotes are replaced with new ones with a lower denomination, that is, several zeros disappear. For example, now it would be possible to discard 3 zeros: 1 ruble would replace a thousand, and 10 kopecks would replace 100 rubles. At the same time, everything changes only visually - the purchasing power of money remains the same. The denomination is being carried out to stabilize the current financial system of the country and strengthen the exchange rate of the national currency. Sometimes this measure is necessary, especially if inflation is gaining momentum.

Default, devaluation and redenomination

Quite good indicator inflation is 3-5%. With such inflation there is no need to carry out any denomination - usually it is done after hyperinflation.

How is denomination carried out?

The denomination can take place in a few weeks or over a few years. In the first case, the government of the country offers citizens to quickly exchange their money in banks, and in accounts in the same banks the exchange takes place automatically. In the second case, payment for goods and services can be made with both new and old banknotes. Wherein financial institutions They confiscate all old banknotes they receive and issue only new ones.

Ruble denomination

Several dates of denomination in Russia:

• 1947 – replacement of banknotes after the abolition of the card system. Proportion: 10 to 1.
• 1961 – second denomination in the USSR. Proportion: 10 to 1.
• 1991 - denomination after the collapse of the USSR to combat counterfeit banknotes and “shadow” income.
• 1997 – denomination due to economic crisis in Southeast Asia, as a result of which prices for fuel and energy products fell sharply. Proportion: 1000 to 1. The decree was signed in the summer of 1997, at the same time, on August 17, it was announced default.

The meaning of the word Denomination according to Ephraim:

Denomination Changing the face value (face value) of banknotes in order to streamline monetary circulation and simplify settlements.

Denomination in the Encyclopedic Dictionary:

Denomination (from de and Latin nominatio name) is a change in the face value of banknotes in order to stabilize the currency or simplify payments. Upon denomination banknotes previous issues are exchanged for new, larger monetary units. prices, tariffs and wage.

Meaning of the word Denomination according to the Business Dictionary:

Lat denomination denomination
consolidation of the national monetary unit to simplify money circulation and give the national currency greater usefulness, reducing the volume of banknotes and coins in circulation. D. is carried out by exchanging old banknotes for new ones in the ratio declared by the state. Prices for goods and services, tariffs, wages, pensions, cash balances in bank accounts, and the balance sheet of enterprises and institutions change proportionally. As a result, D. also changes exchange rate monetary unit. At the same time, D. requires significant expenses for its implementation.

The meaning of the word Denomination according to Ushakov’s dictionary:

DENOMINATION
(de), denominations, w. (fr.

What is denomination, why is it needed and when is it carried out: a detailed analysis of the concept

denomination) (fin. economics). Renaming the value of paper banknotes.

Definition of the word “Denomination” according to TSB:

Denomination(from De and lat. nominatio name)
change in the nominal value of banknotes with the exchange of old banknotes for new currency units according to a certain ratio. At the same time, prices, tariffs, wages, etc. are recalculated in the same ratio. As a rule, this is a consequence of inflation and serves to a certain extent to streamline monetary circulation (in capitalist countries), but may be associated with simplifying calculations (in socialist countries ). See Currency Reforms.

Tell your friends what the Denomination is. Share this on your page.

The denomination of the ruble in Russia is a monetary reform of 1997-1998, which began in Russia on January 1, 1998. Preparations for the denomination began in August 1997. The exchange of non-denominated banknotes took place gradually, until 2002.

According to the official version, the denomination was carried out in order to simplify calculations and strengthen the position of the ruble. However, economists and historians believe that the change in the monetary system was also supposed to fulfill a number of other tasks that have not yet been disclosed by the government.

Firstly, the return of the ruble was supposed to help the country in an open “war” against the dollar - a 0.5% tax on the amount purchased was introduced on the purchase of foreign currency. After the denomination, the prestige of the national currency was supposed to increase.

Secondly, by changing the currency, the government wanted to track the routes of illegal cash - when exchanging old banknotes for new ones, shadow money would manifest itself in one way or another. This was a very urgent task, since at the end of the 1990s, about 40% of money in the country was not legalized.

The denomination also helped the authorities control inflation. During the currency exchange, it was not allowed not only to round up the cost of goods and services, but also to simply raise prices for no reason. A special committee was even created to control inflation.

Another reason for the 1998 redenomination was the desire of the state to increase the amount of money in the economy without inflation. Over the years since the collapse of the USSR, enterprises have become accustomed to paying with partners and employees through barter, and after the change in the monetary system, the government forced them to switch to cash payments.

Rumors about reform arose regularly and were denied several times. In June 1996, the head of the Work Center economic reforms under the government, Sergei Pavlenko announced the inevitable denomination. According to his calculations, it could be implemented no earlier than 1998, “when inflation in the country will be completely suppressed.” However, in September 1996, the Chairman of the Central Bank of Russia, Sergei Dubinin, stated that it was premature to carry out monetary reform in Russia: “We are not planning anything like that.”

Preparations for the monetary reform began approximately 6 months before its actual onset. On August 4, 1997, a presidential decree was issued Russian Federation Boris Yeltsin “On changes in the face value of banknotes and the scale of prices.” The exchange began on January 1, 1998 with a coefficient of 1000:1, that is, one new ruble corresponded to 1000 old ones (sample 1993 and 1995).

Banknotes were transformed as follows:

• 500 rubles – 50 kopecks;
• 1000 rubles – 1 ruble;
• 5000 rubles – 5 rubles;
• 10,000 rubles – 10 rubles;
• 50,000 rubles – 50 rubles;
• 100,000 rubles – 100 rubles;
• 500,000 rubles – 500 rubles;

After the denomination, the 1000 banknote appeared in circulation in Russia since 2001, and the 5000 banknote only since 2006 and is the largest banknote in the country.

During the redenomination, the currency code also changed; previously it was 810 (RUR), after the redenomination it became 643 (RUB).

Ruble denomination in Russia – concept, reasons, forecasts for 2018

It is noteworthy that the overwhelming number of banks still use the 810 code in their accounts. However, in accordance with Amendment 6/2003 to the OKV approved by the State Standard of the Russian Federation, code 810 for the ruble was replaced by the currency code according to OKV 643, that is, from 01/01/2004, the ruble code is 643.

Taking into account the negative experience of the three-day exchange of 50 and 100 ruble bills in the USSR in 1991, the exchange of non-denominated money took place gradually until 2002.

All non-denominated coins Central Bank Russia (1, 5, 10, 20, 50, 100 rubles and collectibles), contrary to the tradition of the two previous denominations, ceased to be legal means of payment. Appearance The value of new banknotes remained almost unchanged after the redenomination, only zeros were removed from the denomination.

Also introduced were penny coins with the image of St. George the Victorious (1, 5, 10, 50 kopecks) and ruble coins with the image of a double-headed eagle (1, 2, 5 rubles). There were coins with the year of minting 1997 and 1998, but they appeared in circulation precisely on January 1, 1998.

Conducted denomination Russian ruble to a certain extent had a positive impact on the state of money circulation: the nominal amount of money servicing the payment turnover decreased, the population’s payments for goods and services were simplified, and Accounting transactions carried out both in cash and in non-cash form. There was a return to the usual monetary system, the penny returned to payment circulation.

But it is worth noting the negative consequences:

• Prices skyrocketed and the purchasing power of citizens decreased significantly, which led to a decline in people's living standards.
• The value of the ruble against the dollar has fallen almost 4 times. All this led to default and difficult times of crisis.

5 signs that denomination is inevitable

Rumors that the ruble will be re-denominated in Russia in the very near future began to appear last year. Moreover, they were discussed so actively that even President Vladimir Putin considered it necessary to comment on the situation, saying that denominations in medium term will not happen. However, any of us can see with our own eyes that the smallest coins are already gradually being “washed out” from payment system. And this is just one of the signs that denomination may occur. There are other signs too. Let's talk about them.

1. The cost of producing 1- and 5-kopeck coins is already higher than their nominal value. Experts give different amounts, but everyone agrees that the production of a 1- or 5-kopeck coin costs the state 12 kopecks or more. But it should be the other way around. The state should receive income from the production of money, and not incur losses. By the way, there is information that the minting of coins in denominations of 1 and 5 kopecks has already been suspended. And this is denomination, only in a hidden form.

2. The existence of any monetary unit must be supported by a commodity equivalent. For example, in Soviet times, you could buy a box of matches or drink sparkling water without syrup with a 1-kopeck coin. What can you buy with 1 kopeck now? Nothing. And you can’t buy anything with 5 kopecks. And at 10.

What is ruble denomination in simple language

A box of matches costs 50 kopecks (and even then not everywhere). This coin has a commodity equivalent. Lower denomination coins do not. Why are they needed then? By the way, lately it’s quite common to see pennies just lying around on the street. They don't even get picked. Which once again shows the attitude of citizens towards these monetary units.

3. There are practically no goods in stores that have a price tag of a few kopecks. That is, goods costing, say, 10 rubles 50 kopecks are still available. There are also price tags - “10 rubles 60 kopecks”. But you won’t find “10 rubles 61 kopecks” or “10 rubles 62 kopecks”. The exception is advertising promotions: there you can still see the price of 99 rubles 99 kopecks. But that’s why they exist - advertising promotions - to display such price tags.

4. Kopecks are still found in bills public utilities, telephone bills, salary slips. However, during actual payments for the same utilities or telephone (and even when receiving a salary), the payment amount is already rounded up everywhere to at least 10 or 50 kopecks, or even to the ruble.

5. A purely psychological point: the value of the ruble is 24-35 times lower than the value of the world's main currencies - the dollar and the euro. If the dollar costs 2.4 rubles, and the euro costs 3.7 rubles, then this will somehow be more consistent with the place that Russia now occupies in the world.

There are, of course, arguments against denomination. The most important thing is the price of the issue. And the point is not even that the transition to new banknotes and coins is a costly process in itself. Goznak will handle it. But it will be necessary to redo a lot of documents, computer programs and so on, in order to remove extra zeros from them.

And one more thing, purely psychological: if the state announces the denomination, it will thereby confirm that inflation in Russia has not yet been defeated. And within 10 years, the kopeck introduced in 1998 (the last denomination in Russia was carried out in 1998) depreciated so much that it became unnecessary again.

Sergey SEROV.

Since 2015, the issue of denomination of the Russian currency has been actively discussed. Due to the crisis in the global economy, the Russian ruble has fallen quite significantly and reducing the money supply in the country would be a good solution. In this article we will look at what currency denomination is, and also talk about such a phenomenon as “the denomination of the ruble in Russia in 1998.”

What is a denomination

Denomination is a change in the value of money (in its nominal part) in a certain ratio. This procedure is carried out in two ways: either it takes a long period of time and is more technical in nature, or it is more reminiscent of confiscation, in which a temporary restriction is imposed on the exchange of national currency for foreign currency.

The denomination is not carried out because of any positive phenomena in the economy. So, most often it is carried out when adverse consequences hyperinflation, i.e. a sharp increase in prices, or due to other economic disasters in the country.

This procedure was carried out in Russia in 1947, when the law abolishing food rationing (wartime costs) came into force. In those days, the denomination was carried out quite weakly, the currency exchange rate was 10 to 1. Moreover, the denomination at that time did not affect deposits in banks, which exceeded 3 thousand rubles.

There were two more such monetary reforms in Russia, however, they were not confiscatory in nature, like the redenomination of 1947: in 1961 and in 1998. In the first case, the exchange was also made in a ratio of 10 to 1, in the second - 1000 to 1.

This phenomenon greatly simplifies monetary exchange, however, one should not assume that it will not affect prices in any way: after such an increase in the currency, sellers also increase the cost of their goods.

It is carried out not only in Russia. For example, we can single out two record countries for the ratio of new and old currencies during denomination: for example, in Germany in 1923 the exchange ratio was 1 trillion to 1, the same applies to Zimbabwe, which has the same denomination that is striking in its exchange ratio took place in 2009.

Second World War led to this phenomenon in some European countries: for example, in France, Poland, Greece. As you can see, this phenomenon only occurs after significant crises or collapses: for example, after the collapse of the USSR, many former Soviet republics re-denominated their currencies.

Currently active the federal law, which regulates the activities of the Central Bank of the Russian Federation (No. 86-FZ of July 10, 2002 - LINK), actually prohibits the implementation of “confiscation” monetary reforms, since when issuing new banknotes, a sufficient period of time must be provided for their exchange.

Why and how it is carried out

Any denomination pursues several very significant goals:

• reducing the cost of creating new money. Thus, banknotes of larger denominations are issued, which reduces the need to renew any small bills - they simply do not exist;
• simplification of calculations. For example, after completing the procedure, there is no need to count pennies, rubles, hundreds, and sometimes even thousands;
• identification of “gray” income. Citizens have to exchange all their money, otherwise it will soon lose its value. To exchange, she is forced to show all her income and savings;
• The country's currency is appreciably strengthening after the denomination.

The process starts after the government makes the final decision to carry out the denomination. At the same time, new banknotes are immediately put into circulation, and old ones begin to be withdrawn from circulation.

This process cannot be called fast. It takes weeks and sometimes months to complete a complete exchange of the old currency for the new one. Of course, money in bank client accounts changes automatically.

Most of the population is very difficult to bear such economic stress. Sometimes this process is carried out so difficult and long that it takes more than one month or even a year. In this case, each store sets special price tags: for example, you can buy a product for either 200 old rubles or 2 new ones.

Redomination of the ruble in Russia in 1998

The decree “On changing the nominal value of Russian banknotes and the scale of prices”, stating that it is time to change the nominal value of banknotes in Russia, was signed by the President of the Russian Federation on August 4, 1997 (link to document).

The very launch of the denomination process was scheduled for January 1, 1998 and provided that for some period of time the old and new money would exist in parallel and participate in internal circulation in the country.

Video - monetary reform in Russia in 1998:

Old-style money was withdrawn simply: through trade, through banks, and also through service sector enterprises. Banknotes in denominations of 5, 10, 50, 100, 500 rubles, as well as coins from 1 kopeck to 5 rubles, were introduced into circulation. The appearance of the new money remained virtually unchanged and was identical to the appearance of the old bills and coins. Since January 1, 1999, old-style money has lost its validity.

Unfortunately, this phenomenon in 1998 had quite negative consequences for the economy of the entire country. For example, prices skyrocketed and the purchasing power of citizens decreased significantly, which led to a decline in people's living standards.

Video - what happened to the ruble in 1998:

In 1998, the procedure was carried out by decision of the Russian government and there were several reasons for its implementation:

• high inflation that needed to be stopped. During the denomination process, strict price controls were established and any increase in prices was strictly punished. Moreover, sellers did not even have the right to “round up” the price;
• it was necessary increase the value of the ruble against the dollar;
• there was a need identify “gray” money in the country. It is worth remembering the dashing 90s and the fact that almost half of the funds at that time were shady;
• getting rid of barter. Many enterprises settled among themselves using barter, and the procedure in in this case was aimed at increasing cash in circulation.

Unfortunately, Russians remember that time only with negativity, because... this process coincided with the period of ruble denomination, when its value against the dollar fell by almost 4 times. All this led to default and difficult times of crisis.

Video - The other day about the redenomination of the ruble in Russia in 1998:

Forecasts about the upcoming redenomination of the Russian ruble worry fellow citizens, who associate the “cutting off of zeros” in 1997 with what followed and the ruble. Let's figure out what currency denomination is, why it is carried out, what negative and positive consequences it promises, and also remember the exchanges of banknotes carried out in the 20th and 21st centuries in Russia and foreign countries.

Denomination is...

The “Large Explanatory Dictionary” contains two homonyms for “denomination”, relating to different areas of activity.

A denomination in religion is a type of denomination or religious organization.

Denomination in economics is a reduction in the denomination of banknotes, carried out to simplify payments, strengthen the currency and streamline monetary circulation.

In simple words: denomination is the exchange of old banknotes for new ones with fewer zeros. Changes in the denomination of banknotes are often accompanied by the return into circulation of coins that had fallen out of use due to hyperinflation. Prices for goods and services and utility tariffs are reduced proportionally. As well as salaries, pensions, scholarships and other payments.

Denomination can be carried out in two ways:

1. gradual replacement of old banknotes with new ones over a long period of time;

2. monetary reform of a confiscatory nature, in which the population loses a significant part of their savings.

Goals of the denomination

When deciding to carry out a denomination, the government pursues certain goals and tries to solve several problems:

• reducing the cost of printing money by reducing the number of banknotes, increasing their quality and service life;

• simplification of payments, primarily cash;

• strengthening the state currency, sometimes accompanied by restrictions on the circulation of foreign currencies in the country (primarily USD);

• identifying hidden income, or rather “extra” money “from under the mattresses”

In practice, not all of the above succeed and not always. For example, in Russia in 1998 and later, the dollar continued to circulate, despite the denomination.

Consequences, pros and cons

Let's look at the pros and cons of denomination for national economy and the population of the country.

Positive sides:

• increasing the convenience and speed of cash payments;

• reducing the number of bills in the buyer’s pocket;

• simplification of financial reporting for business and personal/family budget planning for citizens;

• improving the quality and degree of security of banknotes;

• reducing the costs of the central bank and financial institutions for transporting money

Negative sides:

• rounding prices towards increasing the cost of goods and services. Those. if the product cost 147 thousand rubles, and after the strongest “trimming of zeros” - 14.7 kopecks, then the price will most likely be rounded to 15 kopecks;

• it is difficult to get used to new banknotes and changed prices;

• exchanging more cash for less is psychologically perceived as government robbery

The consequences of denomination depend on its conditions and position in the country’s economy.

If “cutting off zeros” is carried out at a time of economic growth, after overcoming hyperinflation, is non-confiscating in nature and is accompanied by a powerful explanatory campaign, the process is painless and the positive effect outweighs the negative.

Otherwise there is a high probability:

• panic among the population, causing excessive demand for foreign currency and certain goods;

• new rise in inflation;

• repeated depreciation of the denominated currency instead of strengthening

Denomination of the ruble in the USSR and Russia

Denomination in the USSR and modern Russia was carried out several times:

during the monetary reform of 1922-1924. The banknotes were exchanged three times. In 1922, two denominations of sovznak took place and a stable currency unit Chervonets - a 10-ruble banknote that had gold content. In 1924, the exchange of Soviet notes of the 1923 model took place for Soviet rubles in treasury notes 50,000: 1, Soviet small change coins came into circulation;

1. in 1947, banknotes changed 10:1 from December 16 to 29, coins remained the same, having risen in price tenfold;
2. in 1961, banknotes and coins changed 10:1, except for 1, 2 and 3 kopecks, which actually increased in price a hundred times over 14 years;

denomination of the 1997 ruble 1000: 1 - from January 1, 1998, old coins went out of circulation, and the exchange of old banknotes for new ones was completed only in 2003. The 1998 default was not caused by “cutting off zeros”, but by other factors




Will there be a denomination in Russia in the foreseeable future? Experts do not expect it for the following reasons:

• there is no obvious excess of cash;

• There has been no hyperinflation in the country in recent years; moreover, in 2016, Rosstat recorded the lowest inflation;

• mass replacement of banknotes requires considerable costs, for which the federal budget is not ready;

• the share of cash payments is constantly decreasing in favor of non-cash payments;

• the risk of costs is too high if electronic payment systems do not have time to “change the zeroes” on time.

Nevertheless, from time to time rumors about the denomination arise and are even sometimes accompanied on the Internet by samples of new money. For example, such conversations took place 10 years ago with publication in sources that did not belong to the “yellow press” - but they remained rumors.

Currency denomination: examples

Today we are hearing about the denomination in the Republic of Belarus in 2016, where 10,000:1 banknotes were exchanged with the release of seven new banknotes of 5-500 rubles and eight coins from 1 kopeck to 2 rubles. Coins will appear in the pockets of Belarusians, who are already experiencing their third denomination, for the first time since independence. The exchange of old banknotes for new ones will be completed in 2019.

The two largest denominations in post-Soviet space(both successful):

in Georgia in 1995 - exchange for new currency GEL 1,000,000: 1;

in Ukraine in 1996 - exchange of coupon karbovanets for hryvnia 100,000: 1

Examples of large denominations of world currencies:

in Turkey in 2005, the local lira was redenominated by 1,000,000:1, which did not lead to serious negative consequences, apart from some confusion with retail prices, often not in favor of traders;

the local dollar underwent three “cut off zeros” in four years – 1000:1 in 2006, 10 billion:1 in 2008 and 1 trillion:1 in 2009. All these measures failed to stop hyperinflation, and the government was forced to abandon the national currency in favor of the US dollar. Only after this did the country's economy somewhat stabilize;

in Hungary on August 1, 1946, the old currency Pengö, which fell under record hyperinflation, was exchanged for the forint with a ratio of 4x1029: 1 (400 octillion to one);

In Germany, which experienced a crisis after defeat in the First World War, in 1923 old Reichsmarks were exchanged for new ones 1 trillion: 1.