Denomination (currency)
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When dealing with money, denomination is the value of the individual currency.
For example a one dollar bill, a 100 dollar bill, a penny and a quarter are all different denominations of money. A one dollar bill and a one dollar coin are the same denomination as they are the same value.
[change] Monetary union
When countries form a monetary union, redenomination may be required and the conversion ratio is often not a nice even number, or even less than 1.
| New unit | = | x | Old unit | year | Monetary union |
|---|---|---|---|---|---|
| Austro-Hungarian krone | = | 0.5 | gulden/forint | 1892 | Latin Monetary Union |
| euro | = | 0.787564 | Irish pound | 1999/2002 | Eurozone |
| euro | = | 40.3399 | Luxembourgish francs | 1999/2002 | Eurozone |
| This table is not exhaustive. | |||||
[change] Decimalisation
In many countries where an £sd system (£1 = 20 shillings = 240 pence) is used, the process of decimalisation was carried out. While they were at it, some chose to change the main unit as well. By defining 1 dollar = £0.5 = 100 cents, 1 shilling would conveniently turn into 10 cents. This is also a prime example where the ratio is less than 1.
| New unit | = | x | Old unit | year |
|---|---|---|---|---|
| South African rand | = | 0.5 | South African pound | 1961 |
| Australian dollar | = | 0.5 | Australian pound | 1966 |
| New Zealand dollar | = | 0.5 | New Zealand pound | 1967 |
| This table is not exhaustive. | ||||
