Replacement of a currency by a new one. This may be done br convenience, because inflation has made the value of units of the old currency inconveniently small. For example, the new Turkish lira replaced the old Turkish lira in 2005 at a rate of 1 new = 1 000 000 old. Currency reform also be used to take money out of circulation when the holders wish to avoid bringing the size of their assets to the notice of the tax authorities or the police, by imposing a limit on the amount of new money any individual can obtain.
|Reference: Oxford Press Dictonary of Economics, 5th edt.|