Currency Conversion

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Currency Conversion

a change of the face value of paper money in which old banknotes are exchanged at a certain rate for new monetary units. Simultaneously, prices, tariffs, and wages and salaries are converted at the same rate. As a rule, currency conversion is a result of inflation and serves the purpose of regulating money circulation (in capitalist countries) but may also be connected with the simplification of accounting procedures (in socialist countries).

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