What threatens the denomination of the ruble

The denomination is one of the economic terms, that people fear it like the plague. Because, to put it simply, the denomination is "cutting" excess zeros from banknotes. That is, it was a hundred rubles, was 10 or 1, depending on the extent of the problem. If you use professional terminology, a denomination is a change of the nominal value of banknotes to stabilize the currency after the hyperinflation and simplify the calculations.

Rumors about the upcoming denomination in Russia have been circulating for years. After 1998, when sharply devalued all savings of Russians, most of them citizens greatly fear a repeat of the situation.

Inflation of ' 98 was a bolt from a clear sky. No one had expected, and many kept the accumulated funds in rubles. But then there is a new trend to translate savings in currency which increased in price at least 3 times.

What threatens denomination

Denomination terrible in the first place, that instantly burned all the savings of people, including national. The cost of the stabilization Fund changes depending on the denomination of funds operating in the country. And this is a direct impact on the economy, General standard of living of citizens, industry, etc.

Special issue of denomination, is insurance. After all, all issued at the same price and tariffs, and was recalculated according to the new.

Denomination directly touches those who has credits in the Russian banks. In fact the cost is very very different. And how it will recalculate the bankers (and in fact always remains a loophole which they can turn for themselves, not paying attention to the signed agreement), is unknown.

In addition, in the case of the denomination of the ruble and the strengthening of the dollar or the Euro there was a fairly large problem for those borrowers who took out loans in dollars or another currency. Sharp denomination can lead to the fact that foreign currency credit more expensive, at least twice.

Of course, the denomination will bring problems to all because wage work is unlikely to increase. On the reduction of the nominal value of the ruble may also be heads of companies and their owners.

In addition to financial problems, the denomination brings more hundred psychological discomfort. So, you used to come to the store and buy a sausage for 200 rubles per kilogram. And now they say that it will cost about 20 rubles/kg. While all rebuilt , while accustomed, it will take time.

Why use a denomination

A denomination is a technical procedure that should reduce the denomination of the national currency. It is required to simplify economic calculations and is usually applied on the background of high inflation.

Resort to a denomination when no other measures are failing to curb rising prices. Then try to reduce the visibility of high costs, artificially turning them into small. After 10 rubles – this is not the same as 1000. However, improvements in production, or agriculture is absolutely not affected.