I read that redenomination leads to strengthening of national currency but I didn't find more details.

How is it possible?


  • 1
    $\begingroup$ Hi! Your current question format is something like this: "I read A. A is a very general statement that is likely not true in all circumstances, also I am not precisely quoting but paraphrasing it, but I 1. do not tell you where I read it 2. do not provide any context, so you have to guess how the statement is to be understood." Could you please name the source precisely (author, title, edition, page number) or provide a lot of context? $\endgroup$
    – Giskard
    Commented Jun 20 at 9:39
  • $\begingroup$ @Giskard it's Russian source: ru.wikipedia.org/wiki/… last string in the list of the first text block. $\endgroup$
    – Mike_bb
    Commented Jun 20 at 10:08

1 Answer 1


Your Wikipedia article links to its source, where you can read (quote below Google translated from Russian)

Strengthening the national currency. Due to denomination, the exchange rate of the national currency in relation to the currencies of other countries, in theory, should increase in the same ratio. That is, if \$1 costs ₽100, then with a denomination of 100:1 for \$1 they should give ₽1. But things don't always go according to plan. During the redenomination in Russia in 1961, which was carried out with a ratio of 10:1, the ruble to dollar exchange rate increased not tenfold, but only 4.45 times. Also, the correct application of the coefficient in the gold content of the ruble was not ensured. As a result, instead of strengthening, the ruble weakened.

So it is a very look quality statement, that is actually refuted in the source itself.

  • $\begingroup$ Big thanks! @Giskard $\endgroup$
    – Mike_bb
    Commented Jun 21 at 6:16

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