Definition, Meaning & Synonyms

demonetize

verb

/ˌdiːˈmɒnɪtaɪz/

Definition

To remove the status of being legal tender or currency from a certain form of money.

Examples

The government decided to demonetize the old currency notes to curb black money.
After the demonetization process, many people found it challenging to exchange their old currency.
Some countries have demonetized coins that are no longer in use.

Meaning

Demonetization is when a currency unit ceases to be accepted as a medium of exchange. This usually happens when a government decides to withdraw its banknotes or coins from circulation.