This occurs when a country’s currency is readjusted due to high inflation and a weakened currency.
Additional meaning of Redenomination:
A recent example of redenomination is the introduction of the European euro. Likewise in 1985, Argentina moved from the peso argentine to the austral. An austral is worth 1,000 old pesos. With inflation, everyday purchases could cost hundreds of thousands of pesos. With the increase in prices, old currencies like the Argentinean peso would require hundreds of thousands of pesos for one purchase. In 1992, the current Argentina peso replaced the austral at a rate of 1 peso = 10,000 australes.