Is it true that currency re-denomination is usually done under conditions of hyper-inflation?
• Not necessarily. Indeed, countries that did it under such circumstances without complementary reforms ended up re-doing it again and again. • Re-denomination is most successful when a country has achieved a measure of price stability and restored confidence in the national currency. It then proceeds to remove the ‘zeroes of shame’ to get the currency properly aligned. This is the condition now in Nigeria.
