Hubbry Logo
DecimalisationDecimalisationMain
Open search
Decimalisation
Community hub
Decimalisation
logo
7 pages, 0 posts
0 subscribers
Be the first to start a discussion here.
Be the first to start a discussion here.
Contribute something
Decimalisation
Decimalisation
Decimalisation
View on Wikipedia
from Wikipedia

Decimalisation or decimalization (see spelling differences) is the conversion of a system of currency or of weights and measures to units related by powers of 10.

Most countries have decimalised their currencies, converting them from non-decimal sub-units to a decimal system, with one basic currency unit and sub-units that are valued relative to the basic unit by a power of 10, most commonly 100 and exceptionally 1,000, and sometimes at the same time, changing the name of the currency and/or the conversion rate to the new currency.

Today, only two countries have de jure non-decimal currencies, these being Mauritania (where 1 ouguiya = 5 khoums) and Madagascar (where 1 ariary = 5 iraimbilanja): [1] however, these currencies are de facto decimal as the value of both currencies' main unit is now so low that the sub-units are too small to be of any practical use, and coins of these sub-units are no longer used.

Russia was the first country to convert to a decimal currency when it decimalised under Tsar Peter the Great in 1704, resulting in the silver ruble being equal to 100 copper kopeks.[2][3][page needed]

For weights and measures, this is also called metrication, replacing traditional units that are related in other ways, such as those formed by successive doubling or halving, or by more arbitrary conversion factors. Units of physical measurement, such as length and mass, were decimalised with the introduction of the metric system, which has been adopted by almost all countries (with the prominent exceptions of the United States, and, to a lesser extent, the United Kingdom and Canada). Thus, a kilometre is 1,000 metres, while a mile is 1,760 yards. Electrical units are decimalised worldwide.

Common units of time remain undecimalised. Although an attempt to decimalise them was made during the French Revolution, this proved to be unsuccessful and was quickly abandoned.

Currency decimalisation by region

[edit]
See also: List of circulating currencies

Decimal currencies have sub-units based on a power of 10. Most sub-units are one-100th of the base currency unit, but currencies based on 1,000 sub-units also exist in several Arab countries.

Some countries changed the name of the base unit when they decimalised their currency, including:

Examples of currency decimalisation
New unit = × Old unit Year
German gold mark = 1⁄3 Vereinsthaler 1873
Danish krone = 1⁄2 Danish rigsdaler 1875
South African rand = 1⁄2 South African pound 1961
Australian dollar = 1⁄2 Australian pound 1966
New Zealand dollar = 1⁄2 New Zealand pound 1967
Fijian dollar = 1⁄2 Fijian pound 1969
Nigerian naira = 1⁄2 Nigerian pound 1973

Europe

[edit]

In 1534 the kopek of Novgorod was equated to 1/100 of the ruble of Moscow, thus making the Russian ruble Europe's first decimal currency. In the 18th century were introduced the coins grivennik (10 kopeks) and imperial (10 rubles). This was not quite decimal currencies as they are known today, as there were smaller units beneath the kopek itself: the denga (half a kopek, or 200 to the ruble) and the polushka (half a denga, one-quarter kopek, or 400 to the ruble). After the October Revolution, the Soviet Union transitioned to a purely decimal model by eliminating the non-decimal subdivisions of the kopek.

France introduced the franc in 1795 to replace the livre tournois,[4] abolished during the French Revolution. France introduced decimalisation in a number of countries that it invaded during the Napoleonic period.

The Dutch guilder decimalised in 1817, becoming equal to 100 centen (instead of 20 stuivers = 160 duiten = 320 penningen), with the last pre-decimal coins withdrawn from circulation in 1848.

Sweden introduced decimal currency in 1855. The riksdaler was divided into 100 öre. The riksdaler was renamed the krona in 1873.

The Austro-Hungarian Empire decimalised the gulden in 1857, concurrent with its transition from the Conventionsthaler to the Vereinsthaler standard.

Spain introduced its decimal currency unit, the peseta, in 1868, replacing all previous currencies.

Cyprus decimalised the Cypriot pound in 1955, which comprised 1,000 mils, later replaced by 100 cents.

The United Kingdom (including its overseas territories) and Ireland decimalised sterling and the Irish pound, respectively, in 1971. (See £sd and Decimal Day.)

Malta decimalised the lira in 1972.

The Americas

[edit]

North America

[edit]
United States
[edit]

Decimalisation was introduced into the Thirteen Colonies by the American Revolution, and then enshrined in US law by the Coinage Act of 1792.

Canada
[edit]

Decimalisation in Canada was complicated by the different jurisdictions before Confederation in 1867. In 1841, the united Province of Canada's Governor General, Lord Sydenham, argued for establishment of a bank that would issue dollar currency (the Canadian dollar). Francis Hincks, who would become the Province of Canada's Prime Minister in 1851, favoured the plan. Ultimately the provincial assembly rejected the proposal.[5] In June 1851, the Canadian legislature passed a law requiring provincial accounts to be kept decimalised as dollars and cents. The establishment of a central bank was not touched upon in the 1851 legislation. The British government delayed the implementation of the currency change on a technicality, wishing to distinguish the Canadian currency from the United States' currency by referencing the units as "Royals" rather than "Dollars".[6] The British delay was overcome by the Currency Act of 1 August 1854. In 1858, coins denominated in cents and imprinted with "Canada" were issued for the first time.

Decimalisation occurred in:[6]

Date Notes
Province of Canada 1 August 1854
Nova Scotia 1 July 1860 Ordered its first coinage in 1860, but the coins were not shipped by the Royal Mint until 1862
New Brunswick 1 November 1860 Like Nova Scotia, the coins were received in 1862
Newfoundland 1866 Took effect in early 1865 and had different coinage from 1865 to 1947
Vancouver Island 1863
British Columbia 1865
Manitoba 1870
Prince Edward Island 1871

The colonial elite, the main advocates of decimalisation, based their case on two main arguments.[7] The first was for facilitation of trade and economic ties with the United States, the colonies' largest trading partner; the second was to simplify calculations and reduce accounting errors.[8]

Mexico
[edit]

The Mexican peso was formally decimalised in the 1860s with the introduction of coins denominated in centavos; however, the currency did not fully decimalise in practice immediately and pre-decimal reales were issued until 1897.

Bermuda
[edit]

Bermuda decimalised in 1970, by introducing the Bermudian dollar equal to 8 shillings 4 pence (100 pence, effectively equal to the US dollar under the Bretton Woods system).

Caribbean

[edit]

Central America

[edit]

South America

[edit]
  • The Venezuelan peso decimalised in 1843.
  • The Colombian peso decimalised in 1847 (became equal to 10 décimos instead of 8 reales, later became equal to 100 centavos).
  • The Chilean peso decimalised in 1851 (became equal to 10 décimos or 100 centavos instead of 8 reales).
  • The Uruguayan peso decimalised in 1863.
  • The Peruvian sol decimalised in 1863 (equal to 10 dineros or 100 centavos).
  • The Paraguayan peso decimalised in 1870 (became equal to 100 centésimos, later centavos, instead of 8 reales).
  • The Ecuadorian peso decimalised in 1871.
  • The Argentine peso decimalised in 1881.

Africa

[edit]
  • The Ethiopian birr decimalised in 1931 (became equal to 100 metonnyas instead of 16 ghersh).
  • The Ghanaian cedi decimalised in 1965. The new base unit was worth eight shillings and four pence, making one penny equal to one pesewa (1⁄100 cedi).
  • The Zambian kwacha decimalised in 1968.
  • The Rhodesian dollar decimalised in 1970.
  • The Gambian dalasi decimalised in 1971. Unusually, the new base unit was worth four shillings (1⁄5 of a pound).
  • The Malawian kwacha decimalised in 1971.
  • The Nigerian naira decimalised in 1973.

South Africa

[edit]

The rand was introduced on 14 February 1961. A Decimal Coinage Commission had been set up in 1956 to consider a move away from the denominations of pounds, shillings and pence, submitting its recommendation on 8 August 1958.[9] It replaced the South African pound as legal tender, at the rate of 2 rand = 1 pound or 10 shillings to the rand. Australia, New Zealand and Rhodesia also chose ten shillings as the base unit of their new currency.

Oceania

[edit]

Australia and New Zealand

[edit]
1964 ABC report describing the design of the soon to be introduced Australian decimal coins

Australia decimalised on 14 February 1966, with the Australian dollars replacing the Australian pound. A television campaign containing a memorable jingle, sung to the tune of "Click Go the Shears", was used to help the public to understand the changes.[10] New Zealand decimalised on 10 July 1967, with the New Zealand dollars replacing the New Zealand pound.

In both countries, the conversion rate was one pound to two dollars and 10 shillings to one dollar.

Conversion between £sd and $c, Australia and New Zealand
£sd $c
£50 $100
£10 $20
£5 $10
£1 $2
10/– $1
5/– 50c
2/– 20c
1/– 10c
6d 5c
3d 2.5c
1.2d 1c
1d 5⁄6c

To ease the transition, the new 5-cent, 10-cent and 20-cents coins were the same size and weight, and the new $1, $2, $10 and $20 banknotes (and the new $100 banknote in New Zealand) were the same colour, as their pre-decimal equivalents. Because of the inexact conversion between cents and pence, people were advised to tender halfpenny, penny and threepence coins in multiples of sixpence (the lowest common multiple of both systems) during the transition.[11]

Rest of Oceania

[edit]

Asia

[edit]

King Chulalongkorn decimalised the Thai currency in 1897. The tical (baht) is now divided into one hundred satang.

Baht Feuang Att Bia > Decimalization > Baht Satang
1 8 64 6,400 1 100
1/8 1 8 800
1/64 1/8 1 100
1/6,400 1/64 1/100 1

Iran decimalised its currency in 1932, with the rial, subdivided into 100 new dinars, replacing the qiran at par.

Saudi Arabia decimalised the riyal in 1963, with 1 riyal = 100 halalas. Between 1960 and 1963, the riyal was worth 20 qirsh, and before that, it was worth 22 qirsh.

The Yemen Arab Republic introduced the coinage system of 1 North Yemeni rial = 100 fils in 1974, to replace the 1 rial = 40 buqsha = 80 halala = 160 zalat system. The country was one of the last to convert its coinage.

Japan historically had two decimal subdivisions of the yen: the sen (1/100) and the rin (1/1,000). However, they were taken out of circulation as of December 31, 1953, and all transactions are now conducted in multiples of 1 yen.[12]

Rupee-anna-pice-pie to Rupee-paisa conversion

[edit]

India changed from the rupee, anna, pie system to decimal currency on 1 April 1957. Pakistan decimalised its currency in 1961.

In India, Pakistan, and other places under British colonization where a system of 1 rupee = 16 anna = 64 pice (old paisa) = 192 pie was used, the decimalisation process defines 1 rupee = 100 naya (new) paisa. The following table shows the conversion of common denominations of coins issued in modern India and Pakistan.

  • Bold denotes the actual denomination written on the coins
Rupee Anna Pice Pie Paisa/Naya paisa
1⁄192 1⁄12 1⁄3 1 pie 25⁄48 ≈ 0.5208
1⁄128 1⁄8 1⁄2 pice 1+1⁄2 25⁄32 = 0.78125
1⁄64 1⁄4 1 pice 3 1+9⁄16 = 1.5625
1⁄32 1⁄2 anna 2 6 3+1⁄8 = 3.125
1⁄16 1 anna 4 12 6+1⁄4 = 6.25
1⁄8 2 annas 8 24 12+1⁄2 = 12.5
1⁄4 rupee 4 annas 16 48 25
1⁄2 rupee 8 annas 32 96 50
1 rupee 16 64 192 100

Burma (now Myanmar) decimalised in 1952 (predating the Indian case) by changing from the rupee (worth 16 pe, each of 4 pyas) to the kyat (worth 100 pyas).

Ceylon (now Sri Lanka) decimalised in 1869, dividing the rupee into one hundred cents.

Mauritania and Madagascar

[edit]

Mauritania and Madagascar theoretically retain currencies with units whose values are in the ratio five to one: the Mauritanian ouguiya (MRU) is equivalent to five khoums, and the Malagasy ariary (MGA) to five iraimbilanja.

In practice, however, the value of each of these two larger units is very small: as of 2021, the MRU is traded against the euro at about 44:1, and the MGA at about 4,600:1. In each of these countries, the smaller denomination is no longer used, although in Mauritania there is still a "one-fifth ouguiya" coin.

Non-currency cases

[edit]

Securities

[edit]

In the special context of quoting the prices of stocks, traded almost always in blocks of 100 or more shares and usually in blocks of many thousands, stock exchanges in the United States used eighths or sixteenths of dollars, until converting to decimals between September 2000 and April 2001.[13]

Similarly, in the United Kingdom, the prices of government securities continued to be quoted in multiples of 1⁄32 of a pound (7+1⁄2 d or 3+1⁄8 p) long after the currency was decimalised.

Metrication

[edit]
Main article: Metrication

The idea of measurement and currency systems where units are related by factors of ten was suggested by Simon Stevin who in 1585 first advocated the use of decimal numbers for everyday purposes.[14] The Metric system was developed in France in the 1790s as part of the reforms introduced during the French Revolution. Its adoption was gradual, both within France and in other countries, but its use is nearly universal today. One aspect of measurement decimalisation was the introduction of metric prefixes to derive bigger and smaller sizes from base unit names. Examples include kilo for 1,000, hecto for 100, centi for 1/100 and milli for 1/1,000. The list of metric prefixes has expanded in modern times to encompass a wider range of measurements.

While the common units of time, minute, hour, day, month and year, are not decimalised, there have been proposals for decimalisation of the time of day and decimal calendar systems. Astronomers use a decimalised Julian day number to record and predict events. Decades, centuries, and millennia are examples of common units of time that are decimalised.[15] The millisecond is a decimalised unit of time equivalent to a thousandth of a second, and is sometimes used in computing contexts.[16][17]

The gradian or grade is an angular unit defined as one hundredth of the right angle (approximately 0.0157 rad), further divided into one hundred centigrades.

In computer science, there are several metric prefixes used with units of information. For example, a kilobit is equivalent to 1,000 bits.[18]

Abbreviations for large amounts of money

[edit]

Decimal abbreviations are sometimes used for large amounts of money. For example, the letter K (standing for kilo-) can be used to indicate that a sum of money ought to be multiplied by 1,000 i.e. $250k means $250,000. The letters M or MM can be used to indicate that a sum of money should be multiplied by a million i.e. $3.5M means $3,500,000. The letter B similarly stands for a billion.[19][20]

See also

[edit]

Further reading

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

Decimalisation

View on Grokipedia
from Grokipedia
Decimalisation is the process of reforming a national from a non-decimal subdivision system—such as the traditional pounds, s, and pence (where 1 pound equaled 20 s and 1 equaled 12 pence)—to a decimal-based system, typically dividing the primary unit into 100 subunits to simplify arithmetic, , and in everyday transactions and . This reform has been adopted by nearly all countries worldwide to align with modern economic practices, facilitate , and reduce errors in calculations, particularly as and mechanized became prevalent in the 20th century. The origins of decimal currency trace back to early modern Europe, with Russia becoming the first nation to implement it in 1704 under Tsar Peter the Great, who reformed the to equal 100 kopecks. The pioneered decimalisation among English-speaking countries through the , establishing the as equivalent to 100 cents and setting a precedent for simplicity in a growing industrial . By the 19th and early 20th centuries, countries like (post-Revolution in 1795 with the divided into 100 centimes) and several Latin American nations adopted similar systems during independence movements, often influenced by ideals of rational measurement. In the mid-20th century, former British colonies accelerated the shift amid decolonisation and globalisation, with introducing decimal currency in 1961, following on 14 February 1966 (known as "C-Day," when the Australian dollar replaced the pound at a 2:1 ratio, saving an estimated £11 million annually in administrative costs), and in 1967. The , after decades of debate dating to 1824 proposals and influenced by examples, enacted the Decimal Currency Act 1967 following James Callaghan's announcement on 1 March 1966; "" arrived on 15 February 1971, with new coins (5p, 10p, and 50p) introduced from 1968 and a six-month transition period to phase out old pence by August 1971, marking a largely smooth logistical operation overseen by the . Today, exceptions like and persist with non-decimal divisions (5 subunits), but decimalisation remains a cornerstone of global monetary standardization.

Core Concepts

Definition

Decimalisation refers to the process of restructuring numerical systems, such as currencies, weights, and measures, to align with a base-10 framework, replacing non-decimal subdivisions like those based on 12 (e.g., duodecimal) or 60 (e.g., sexagesimal) with divisions using powers of 10. This reform facilitates simpler arithmetic by leveraging the human hand's ten fingers as a natural basis for counting and calculation. The scope of decimalisation extends to various domains, including currency where a primary unit is typically divided into 100 subunits—for instance, one pound equaling 100 pence—or measurements where one is subdivided into 100 centimetres. It also encompasses notations, such as shifting from fractional representations to points for precision in and . The term "decimalisation" employs spelling, distinct from the American "decimalization," though both denote the same concept. It differs from full , which specifically adopts the (SI), and from inherent base-10 arithmetic, which has been used informally since ancient times without systemic reform. Etymologically, "" originates from the Latin decimus, meaning "tenth," derived from decem ("ten"); the noun form "decimalization" emerged around in contexts discussing monetary reforms.

Principles and Benefits

Decimal currency systems are founded on the base-10 , which organizes values through powers of 10—such as 10, 100, and 1000—enabling straightforward multiplication and division by simply shifting decimal places. This contrasts with non-decimal systems like the (base-12), where subdivisions rely on factors of 12, or the (base-60), which complicates basic operations due to less intuitive divisors beyond 2, 3, 5, and 10. The base-10 structure allows fractions like one-tenth (0.1) to be represented directly and intuitively, whereas equivalents in base-12, such as one-tenth of a unit, require recurring or complex fractions—for example, 0.1_{10} = 0.1249\overline{7}_{12} (with "2497" repeating in notation)—increasing computational effort. A primary benefit of decimalisation lies in its simplification of arithmetic, as operations align with familiar methods derived from human anatomy—specifically, the 10 fingers used for tallying since ancient times—which reduces and minimizes errors in everyday calculations. For instance, dividing a sum into tenths or hundredths is more accessible than handling irregular divisions in systems like the pre-decimal British £sd (pounds, shillings, pence), where conversions often involved multiplying by 12 or 20. This inherent ease promotes accuracy in mental and written computations, with studies on decimal representations in highlighting how examples reinforce conceptual understanding of place value and fractions. Practically, decimal systems enhance by streamlining teaching of numerical concepts, as base-10 aligns with standard curricula and tools like abacuses or aids. In , they expedite transactions and , lowering error rates in —evidenced by the reduced in pricing and change-making post-adoption. Additionally, decimalisation integrates seamlessly with technologies such as computers and calculators, which process decimal inputs efficiently for financial software, avoiding the conversion overhead of non-decimal formats. To illustrate conversion complexities, consider the following comparison between the pre-decimal British system and its decimalized form:
AspectNon-Decimal (£sd System)Decimal (£p System)
Basic Structure1 pound = 20 ; 1 = 12 pence; total 240 pence per pound1 pound = 100 pence
Example Conversion1 pound 5 6 pence = (20×5 + 6) = 106 pence (requires multiple steps)1 pound 5 pence = 105 pence (direct )
Division Example1 pound ÷ 3 ≈ 6 8 pence (irregular factors)1 pound ÷ 3 ≈ 33.33 pence (simple )
Error-Prone OperationMultiplying by pence often involves Shifting decimal point suffices for scaling
This table demonstrates how decimalisation eliminates multi-step conversions, directly supporting faster and more reliable arithmetic in currency handling.

Motivations and Challenges

Reasons for Adoption

Decimalisation of currency systems was primarily driven by economic incentives that promised to streamline commercial activities. By aligning monetary units with the base-10 system, decimalisation simplified arithmetic operations in trade, banking, and accounting, thereby reducing the time and potential for errors in calculations such as those involving interest rates, exchanges, and insurance premiums. This efficiency lowered transaction costs, particularly in retail environments where frequent mental or manual computations were common, fostering greater productivity in industrial and trading economies. For instance, historical analyses indicate that decimal systems facilitated quicker processing in financial institutions, minimizing labor-intensive bookkeeping that characterized non-decimal currencies like the pre-1971 British pounds, shillings, and pence. Educational benefits further propelled adoption, as decimal currency aligned seamlessly with the base-10 arithmetic already emphasized in school curricula. Teaching non-decimal systems required instruction in complex "compound arithmetic," including rules for duodecimal divisions that were extraneous to standard mathematics, consuming significant classroom time—estimated at 5% to 10% of primary mathematics instruction for children aged 6 to 11. With decimalisation, educators could eliminate these specialized lessons, simplifying textbooks and reducing early student frustration with mathematics, thereby enhancing overall numerical literacy across populations. Proponents argued that this reform would democratize financial understanding, making monetary concepts more accessible without the need for additional computational skills. International alignment exerted considerable pressure, particularly in the post-World War II era, as global trade expanded, creating normative expectations that non-adopting nations risked isolation in international commerce and exchanges. By the mid-20th century, the majority of major economies had adopted currencies. This mimetic diffusion encouraged countries to emulate peers for legitimacy and in global markets, where uniformity reduced conversion errors and facilitated cross-border transactions. Technological advancements provided an additional impetus, as the rise of calculators and early computers in the favored base-10 inputs and outputs for accuracy and speed in financial . Non-decimal systems complicated machine compatibility, leading to inefficiencies in automated and , whereas decimalisation ensured seamless integration with emerging computational tools. This alignment supported the broader industrialization of economies, where decimal currencies enhanced the performance of monetary machines and reduced adaptation costs for business equipment. Specific drivers included colonial influences, where imperial powers imposed or encouraged systems on dependencies to standardize administration and , and post-independence reforms, during which newly sovereign nations often pursued decimalisation as part of modernization efforts to assert economic autonomy and align with global norms. These reforms capitalized on the momentum of , viewing decimal currency as a symbol of progress detached from imperial legacies while promoting internal efficiency.

Obstacles and Resistance

Implementing decimalisation presented significant logistical challenges, particularly in producing and distributing new coins and notes while managing a dual-currency system. In the , the production of new denominations required substantial investment from the Royal Mint, with secure transportation of coins to banks across the country posing a major operational hurdle. Businesses faced high costs for equipment upgrades; for instance, F.W. Woolworth incurred £5 million in expenses, including £200 per for 20,000 tills and the replacement of over 20,000 stamping machines for dual pricing. Retraining the was equally demanding, with Woolworths dedicating three hours of training per employee for its 60,000 staff to handle the transition. The planned 18-month dual-system period was shortened, with old currency withdrawn by August 1971, but banks still closed for four days prior to on 15 February 1971 to prepare systems and educate customers. Cultural resistance stemmed from deep-rooted attachment to traditional non-decimal systems, often viewed as integral to national heritage. In the UK, the pounds, shillings, and pence (lsd) system, tracing its origins to (libra, solidus, ), evoked nostalgia and familiarity, particularly among older generations who struggled to adapt to the new pence. This sentiment manifested in the enduring phrase "How much is that in ?" even years after the changeover, reflecting a broader reluctance to abandon a system embedded in everyday language and custom. Such resistance highlighted decimalisation as a perceived erosion of rather than mere . Economic disruptions during the transition fueled public anxiety over and pricing fairness. Shopkeepers and small businesses were accused of exploiting by rounding prices upward, leading to widespread suspicion; a 1973 survey found 52% of respondents attributing rising prices directly to decimalisation. Although no direct evidence of activity emerged, the dual-pricing requirement strained small retailers, who had to relabel goods and manage conversion errors, exacerbating fears of opportunistic amid broader pressures. These concerns underscored the short-term economic friction, with consumers feeling vulnerable to manipulation during the adjustment phase. Political hurdles prolonged the adoption process through repeated debates and electoral sensitivities. In the UK, discussions dated back to 1824, when rejected Sir John Wrottesley's motion for decimalisation, followed by the formation of the Decimal Association in 1841 to advocate for reform; subsequent proposals in 1853, 1856, and beyond faced similar defeats due to concerns over disruption and tradition. The issue lingered across governments, with no decisive action until the 1963 Haynes Committee report and the Decimal Currency Act of 1969, delayed further by parliamentary debates and the need for cross-party consensus amid economic uncertainties. These delays exemplified how political inertia could stall monetary modernization for over a century. Examples of failures or delays illustrate the risks highlighted in cost-benefit analyses. During the , replaced the non-decimal with the decimal in , divided into 10 decimes and 100 centimes. Despite economic instability and public confusion, the decimal system was retained and not abandoned. Similarly, in the UK, multiple 19th-century proposals were shelved after evaluations deemed the transition costs—estimated in labor, minting, and public education—outweighed immediate benefits, contributing to the 150-year postponement until 1971. Such cases underscore how fiscal and administrative burdens often derailed ambitious reforms.

Historical Overview

Ancient and Early Examples

One of the earliest known uses of decimal systems in measures and numerals emerged in ancient during the around 2000 BCE, where numerical notation and weights were based on powers of ten, facilitating trade and administration. By the in 221 BCE, Emperor standardized weights, lengths, and capacities on a decimal basis, with units like the chi (foot) divided into ten cun (inches); these decimal principles in measures influenced later economic practices, though bronze coinage (banliang) did not feature decimal subdivisions. This system persisted through dynasties, as seen in the Han period where silver taels (liang) served as a weight-based unit, with higher denominations like the yi representing about 20 taels, underscoring scaling in economic exchanges though not formal decimal . These early decimal systems in measures and numerals laid groundwork for later currency decimalization, though formal adoption in coinage occurred in the 18th century onward. In ancient , weights and measures predominantly employed a (base-60) system originating from Sumerian city-states around 3000 BCE, as evidenced in tablets for calculating areas and volumes in trade. However, decimal-like elements appeared in certain balance pan weights from sites like , where factoring included binary and ratios alongside sexagesimal for practical commerce, allowing flexibility in shekel-based transactions. Similarly, developed a numeral system by 3000 BCE, using hieroglyphic symbols for powers of ten in script for administrative records, with weights like the deben (approximately 91 grams) employing decimal elements for and exchanges in the economy, though subdivisions were not strictly 100-based. These systems, while not purely decimal in all subdivisions, integrated base-10 principles for unit fractions and practical , influencing regional trade networks. The medieval Islamic world, from the CE onward, incorporated decimal structures in calculations through the adoption of Hindu-Arabic numerals, which enabled efficient decimal accounting for commerce across the . Merchants in centers like used these for accounting dirhams and dinars, with weight standards like the mithqal (4.25 grams) applied in market practices, as documented in mathematical treatises that transmitted Greek and Indian knowledge to via . This use of decimal calculations in Islamic trade, blending with existing ratios, facilitated long-distance exchanges and profoundly shaped European numerical practices by the 12th century, though currencies themselves were not decimalized. Pre-1700 saw limited local experiments with coinage amid dominant systems, particularly in where the equaled 20 and 240 denari, but trials in places like incorporated decimal-inspired valuations for ducats in . These efforts reflected emerging rationalist thought, setting the stage for broader reforms. The transition to modern drew from Enlightenment ideas of rationality and uniformity, with late 17th-century thinkers like advocating standardized measures and currencies to promote economic efficiency and scientific progress.

18th and 19th Century Developments

In 1704, of implemented a that established the as equivalent to 100 kopecks, marking the first major adoption of a decimal currency system in . This reform, part of broader efforts to modernize the Russian during the early , replaced the previous complex system based on silver grivnas and coins, introducing copper alongside silver and denominations for practical circulation. The change facilitated trade and administrative efficiency in the expanding , though implementation faced challenges from and counterfeiting in the initial years. The followed with the , which formalized the as the national currency unit divided into 100 cents, influenced by advocates of decimalization such as . Jefferson, in his earlier reports on weights and measures, had proposed a decimal-based system to simplify accounting and align with emerging scientific principles, drawing from colonial experiences with Spanish dollars. The act established a federal mint in and defined coin standards in silver and gold, with the pegged to the Spanish silver peso's weight, promoting economic independence post-Revolution. This made the U.S. the second nation to enact a comprehensive decimal currency law. France introduced its decimal system amid the Revolution, with the Law of 7 Germinal, Year III (April 18, 1795) defining the as equal to 100 centimes, building on the decimal division decreed in 1793. Tied to the metric system's adoption, the replaced the and was based on a silver content of 4.5 grams pure, aiming for uniformity in a nation undergoing radical fiscal overhaul. Despite wartime disruptions, this reform laid the foundation for stable coinage under , who standardized production in 1803. In the , decimalization spread to through post-independence reforms, often adopting peso-based systems. Mexico's 1863 monetary law divided the peso into 100 centavos, replacing the older real subdivision during a period of civil strife and aligning with needs. enacted a similar reform in 1881, establishing the peso moneda nacional at 100 centavos to stabilize the after decades of provincial coinage variations. Following German unification in 1871, the Reichsmünzgesetz of 1873 introduced the mark equivalent to 100 pfennigs across states, unifying disparate thalers and groschens into a gold-backed decimal standard that supported industrial growth. These adoptions reflected Enlightenment ideals of rationalization, influencing colonial and independent economies in , where dollar-like pesos facilitated commerce with the U.S. and .

20th Century Global Spread

The 20th century marked a rapid global expansion of decimalisation, particularly after World War II, as decolonization and increasing economic globalization prompted newly independent nations in Africa and Asia to adopt modern, simplified currency systems. This wave was driven by the desire for alignment with international trade practices and ease of calculation, with many countries introducing decimal subunits upon or shortly after gaining sovereignty. For instance, India decimalised its rupee in 1957, dividing it into 100 naye paise, a decade after independence in 1947. Similarly, Ghana transitioned to a decimal cedi in 1965, eight years following its 1957 independence from Britain. Other examples include Pakistan's 1961 adoption of the rupee with 100 paisa and Zambia's 1968 kwacha with 100 ngwee, reflecting a broader pattern among post-colonial states seeking efficient monetary frameworks. By the mid-1970s, this diffusion had resulted in near-universal adoption worldwide, facilitated by normative pressures for scientific rationality, coercive influences from colonial legacies, and mimetic imitation among nations. Within the British Commonwealth, decimalisation gained momentum in the 1960s, influencing several member states to align with emerging global standards. led this shift by introducing the rand—equal to 100 cents—on February 14, 1961, replacing the pound-shilling-pence system to modernize its economy. followed on February 14, 1966, launching the Australian dollar divided into 100 cents, equivalent to 10 pre-decimal shillings, as part of a nationwide "Changeover Day" campaign. implemented its decimal dollar on July 10, 1967, also comprising 100 cents, supported by extensive public education efforts including the iconic "Mr. Dollar" promotions. The and culminated this trend with "" on February 15, 1971, when both nations transitioned from pounds, shillings, and pence (£sd) to a decimal pound divided into 100 new pence. In the UK, the reform preserved the pound's value while eliminating the complex 240-pence structure, with new coins entering circulation amid a coordinated national rollout. Ireland synchronized its changeover to maintain parity with sterling, introducing punt notes and coins in decimal form. Among late 20th-century adopters, decimalised its lira on May 16, 1972, subdividing it into 100 cents (or 1,000 mils initially) to replace the non-decimal system inherited from British rule. In the Pacific, several island nations followed suit in the and later, such as 's introduction of the decimal on January 13, 1969, and 's launch of the vatu—officially divided into 100 centimes—on March 22, 1982, coinciding with its recent .
YearCountry/RegionKey Details
1957Rupee = 100 naye paise
1961Rand = 100 cents
1965Cedi = 100 pesewas
1966 = 100 cents
1967New ZealandDollar = 100 cents
1969 = 100 cents
1971 & Pound/punt = 100 (new) pence
1972Lira = 100 cents
1982Vatu = 100 centimes
By 2000, decimalisation had achieved virtually complete global coverage, with over 190 countries using currencies based on powers of 10 for subunits, transforming international commerce and eliminating archaic fractional systems.

Currency Decimalisation by Region

Europe

Decimalisation in began in the late , driven by Enlightenment ideals of rational measurement and economic simplification, with leading as an early adopter. In , during the [French Revolution](/page/French Revolution), the was established as the national , divided into 100 centimes, replacing the complex system based on 20 sous and 12 deniers. This reform, part of broader initiatives, aimed to standardize weights, measures, and for trade efficiency. Switzerland followed suit in 1850, adopting the federal subdivided into 100 rappen (or centimes in French-speaking regions), unifying the cantonal currencies that had previously varied in subdivisions, some non-. This change facilitated national economic integration after the 1848 constitution. achieved unification in currency with the in 1861, defined as 100 centesimi, extending the Sardinian lira's decimal structure across the new to replace diverse regional coins like the scudo. In the German states, pre-unification currencies were inconsistent, with many using non-decimal divisions such as the into 24 . Following the 1871 unification, the introduced the mark in 1873, divided into 100 pfennigs, standardizing the economy and aligning with international norms. The and delayed decimalisation until the , transitioning on February 15, 1971, from the imperial system of pounds, shillings, and pence (where 1 pound equaled 20 shillings or 240 pence) to the decimal pound equaling 100 new pence. This "D-Day" involved extensive public education campaigns, including television broadcasts and school programs, to ease the shift from the duodecimal-based old system, which had persisted since medieval times. adopted the same change simultaneously, aligning its pound with the UK's for continuity. Scandinavian countries decimalised in the 1870s as part of the Latin Monetary Union influence and . Sweden introduced the krona in 1873, divided into 100 öre, replacing the riksdaler. and followed in 1875 with their respective kroner, each subdivided into 100 øre, promoting regional monetary stability. In , the had been decimalised since 1704 under , divided into 100 kopecks, though the system underwent inflationary reforms in the 1920s under Soviet rule without altering the decimal base. Post-communist states largely retained these structures with minimal updates. Since the UK's 1971 reform, no major European currency decimalisations have occurred, but the introduction of the in 1999 for 11 initial member states preserved decimal divisions (1 euro = 100 cents), building on existing national decimal systems to foster EU economic integration.

North America

In , decimalisation of currency was adopted early in the post-colonial period, establishing stable systems that integrated with emerging trade networks and avoided the disruptions seen elsewhere. The led this trend through the , which formalized the dollar as the monetary unit divided into 100 cents, drawing on proposals from and to create a decimal-based system aligned with practical commerce. This framework has remained largely unchanged since its inception, with no major reforms to the decimal structure, reflecting its effectiveness in supporting economic growth without the need for later overhauls. Canada followed a similar path, introducing decimal currency in the Province of Canada in 1858 with the issuance of coins denominated in dollars and cents (1 dollar = 100 cents), which facilitated alignment with U.S. trade practices. Full standardization across the Dominion occurred in 1871 via the Uniform Currency Act, which replaced lingering provincial pounds, shillings, and pence systems and established the as the uniform decimal unit nationwide. This transition ensured seamless integration into North American markets, minimizing conversion complexities for cross-border exchanges. Mexico's decimalisation emerged amid political upheaval during the Second French Intervention, with the peso redefined in as equivalent to 100 centavos, a reform influenced by the conservative regime and later formalized under Emperor Maximilian to modernize the economy. Despite the intervention's collapse in 1867, the decimal peso-centavo system persisted and remains in use today, providing continuity in through subsequent economic shifts. In Danish territories like , decimal currency was introduced with the adoption of the krone in the mid-1870s, replacing earlier non-decimal units and aligning with Denmark's monetary reform, which subdivided the krone into 100 øre for consistent use across the . This early implementation supported administrative stability in remote areas without significant alterations since. The enduring stability of North American decimal currencies stems from their timely adoption during formative national periods, which preempted entrenched non-decimal habits and promoted efficient trade integration, particularly between the U.S. and where shared decimal systems reduced transaction barriers and bolstered economic interdependence.

Central America

Central American nations, emerging from Spanish colonial rule and the brief in the 1820s, generally transitioned to systems in the mid- to late , adopting the peso subdivided into 100 centavos as a standard unit. This structure replaced the traditional Spanish real-based system (where 1 peso equaled 8 reales), facilitating easier arithmetic in and accounting amid post-independence economic fragmentation. The adoption reflected influences from neighboring Mexico's 1863 decimal reform and the growing international demand for standardized silver-based currencies compatible with global markets. In , the decimal peso of 100 centavos was established in the 1860s, with silver coins issued from 1869 onward to support domestic commerce and exports like . The system endured through political upheavals, evolving into the in 1925 at a rate of 60 pesos per quetzal, while maintaining the 100-centavo subdivision. Similarly, introduced its decimal coinage in 1892, issuing the first centavo coins as part of the colón system (1 colón = 100 centavos), which stabilized the economy after years of using the Central American real. This reform aligned the currency with U.S. , aiding remittances and . Costa Rica pioneered regional decimalisation in 1865 by linking its colón (initially equivalent to the peso) to 100 céntimos, coinciding with adoption for measurements to promote scientific agriculture and exports. Honduras followed suit in 1871, decimalising the peso into 100 centavos after initial post-1862 retention of the real subdivision, which supported and trade growth. Nicaragua established its peso as 100 centavos in 1878, replacing and providing a national currency amid civil strife; 20th-century stabilisations, including the 1912 (12.5 pesos = 1 córdoba, still 100 centavos), preserved the decimal framework despite episodes in the and . Panama, upon independence from in 1903, adopted the U.S. in 1904 as alongside the balboa (pegged 1:1 to the and divided into 100 centésimos), inherently incorporating the system to attract U.S. investment for the . This dollarisation ensured monetary stability without independent issuance, contrasting with neighbors' volatility. Throughout the region, decimal structures proved resilient despite frequent currency reforms driven by wars, revolutions, and inflation—such as Nicaragua's 1988 new córdoba (1,000 old = 1 new) and El Salvador's 2001 full dollarisation—retaining the 100-subunit division to simplify transactions in unstable economies.

Caribbean

Decimalisation in the was shaped by colonial legacies, with British, French, and Dutch influences leading to varied timelines for adopting decimal currency systems across the islands. In British territories, the transition from the imperial pound-shilling-pence system to dollars and cents occurred primarily in the and as part of post-independence economic reforms. implemented decimalisation on September 8, 1969, introducing the subdivided into 100 cents, where one dollar equaled two old pounds to facilitate the shift from the non-decimal sterling-based currency. Similarly, adopted its decimal dollar on December 3, 1973, with the Central Bank of Barbados issuing notes in denominations of 1, 5, 10, 20, and 100 dollars, each divided into 100 cents, marking the end of reliance on external issuers for . The Eastern Caribbean islands shared a unified approach through the , established in 1949 as a equivalent to four shillings and two pence, subdivided into 100 cents, which replaced the non- pound system across participating territories. coins in this system were first issued in 1955, and the evolved into the in 1965 under the Eastern Caribbean Currency Authority, maintaining the 100-cent subdivision and serving eight islands including , , , , , , and . French and Dutch Caribbean territories adopted decimalisation earlier through their metropolitan currencies, which had transitioned to base-10 systems by the late 18th and early 19th centuries. In French colonies like and , the —introduced in 1795 and divided into 100 centimes—served as the standard unit from the revolutionary period onward, with local coins and notes aligning to this decimal structure by the early 1800s. Dutch islands such as and used the , decimalized in the in 1817 with subdivisions into 100 cents, and the was formally introduced in 1940 already in decimal form, pegged to the . Cuba's decimalisation predated independence, with the Cuban peso established in 1869 during the Ten Years' War and defined as 100 centavos, issuing the first notes in this subdivision to support revolutionary finances and later becoming the national currency post-1898 . Following the 1959 revolution, the peso was nationalized under the , retaining its decimal structure without subdivision changes. In , the gourde—introduced in 1813—underwent revaluation in 1870 to establish the second gourde at a rate of 10:1 against the first, firmly adopting a system of 100 centimes per gourde through issuance by the Banque de la République d'Haïti, which stabilized the currency after earlier inflationary pressures. This structure persisted into the third gourde from 1872, forming the basis of Haiti's modern monetary system.

South America

In South America, decimalisation of currencies largely occurred during the , as newly independent nations transitioned from colonial monetary systems based on the (subdivided into 8 reales or 8 ) and the Portuguese réis (a non-decimal unit of 960 réis per mil-réis). These reforms aligned with broader Latin American efforts to modernize economies post-independence, establishing base-10 subdivisions like centavos or céntimos to facilitate trade and accounting, often pegged to . By the mid-20th century, most South American currencies retained this decimal structure despite frequent redenominations due to . achieved full decimalisation in 1881 with the introduction of the peso moneda nacional, equivalent to 100 centavos, replacing earlier provincial currencies like the peso and the patacón (a short-lived emergency note issued at 25 pesos per patacón). This unified national currency ended the lingering use of the non-decimal real system, where 1 peso equaled 8 reales, and supported economic integration following federal unification. Brazil transitioned to a decimal currency in 1942 by introducing the cruzeiro, defined as 100 centavos and replacing the mil-réis (1,000 réis) at parity, simplifying the cumbersome non-decimal réis system that had persisted since colonial times. Despite multiple redenominations—such as the cruzeiro novo (1,000 old cruzeiros) and later variants—the decimal subdivision into centavos was maintained through periods, providing continuity in fractional units. Chile adopted decimalisation in , subdividing the peso into 100 centavos via a that reformed the post-independence inherited from Spanish rule, where the peso had equaled 8 reales. This stable system, backed initially by silver, endured with minimal changes until the , aiding Chile's export-driven economy in and nitrates. Venezuela established the bolívar in as its decimal unit, divided into 100 céntimos, under a by President Antonio Guzmán Blanco that replaced the short-lived venezolano and aligned with the . This reform ended the fragmented real-based system, promoting monetary uniformity across the federation. Peru introduced the sol in 1863 as a decimal currency equivalent to 100 céntimos, completing the shift from the colonial real (1 sol = 10 dineros, with reales worth 1/10 sol from 1858 onward) through legislation that modernized the monetary system for the republican era. Bolivia followed a similar path in 1864 with the boliviano, also divided into 100 centavos (initially centécimos), replacing the sol de and equivalent to half a scudo in prior units, though in the 20th century led to redenominations while preserving the base-10 structure.

Africa

Decimalisation in African currencies largely occurred during the mid-20th century, often as part of decolonisation processes that transitioned from imperial systems like the British pound-shilling-pence or to decimal-based local units. Many African nations adopted subdivisions of 100 smaller units to align with global trends, facilitating and simplifying calculations, though colonial legacies influenced the timing and structure. Two exceptions persist, reflecting unique cultural and historical preferences for non-decimal divisions. In southern Africa, introduced the rand in 1961 as a decimal currency, replacing the pound at a rate of two rand per pound, with one rand subdivided into 100 cents. This shift was recommended by a Decimal Coinage Commission established in 1956 to modernise the economy and ease arithmetic in commerce. The rand's adoption extended influence through the , a with , , and (formerly Swaziland), where these countries use their own currencies pegged to the rand at fixed rates, promoting regional . In , the , established in 1945 for French colonies, was decimalised from inception with one equal to 100 , a structure retained post-independence by 14 nations in two zones ( and ) under the Central Banks of West African States (BCEAO) and Central African States (BEAC). This system ensured stability through a fixed peg to the (later ), but centime coins are rarely issued due to low value, with transactions typically in whole francs. The retention reflects continued French monetary ties, despite calls for reform to enhance . East African countries transitioned from the shared , introduced in 1921 under British administration and subdivided into 100 cents from inception, to independent currencies in the . adopted the in 1966 at par with the East African shilling, subdivided into 100 cents, issued by the to assert national identity while maintaining economic continuity. Similar changes occurred in (1966) and (1966), with each also divided into 100 cents, supporting local monetary policies amid post-colonial diversification. In , Egypt's pound has been decimal since 1834, when a decree under introduced it as the primary unit equivalent to 100 s (or qirsh), based on a bimetallic gold-silver standard to unify the economy beyond Ottoman-era piastre subdivisions. This early adoption predated many global shifts and persists today, managed by the . followed in 1960, reintroducing the post-independence to replace the Moroccan at 1 dirham = 100 francs, subdivided into 100 santimat (centimes), as issued by to symbolise sovereignty and align with decimal international norms. Exceptions to decimalisation include , where the ouguiya, introduced in 1973 replacing the , divides into 5 khoums rather than 100 subunits, a non-decimal structure influenced by ic traditions emphasising divisions by five, as in the five pillars of , and local cultural practices. Similarly, Madagascar's ariary, reintroduced in 1966 after , subdivides into 5 iraimbilanja, drawing from traditional Malagasy counting systems that favoured quintal divisions over decimal ones to preserve amid colonial influences. These rare non-decimal systems highlight Africa's diverse monetary paths, contrasting the continent's broader decimal adoption.

Asia

In the Indian subcontinent, decimalisation of the currency marked a significant shift from the longstanding non-decimal system inherited from British colonial rule. Prior to 1957, the Indian rupee was subdivided into 16 annas, with each anna further divided into 16 pies, resulting in 1 rupee equaling 192 pies; this complex structure complicated arithmetic in trade and accounting. On April 1, 1957, India introduced the decimal system, redefining 1 rupee as 100 naya paise (later simply paise), with the conversion rate set at 1 anna equaling 6.25 paise to align the old and new units seamlessly. This reform, enacted through the Decimal Coinage Act of 1955, simplified everyday transactions and facilitated integration with international financial systems, though initial public resistance arose due to familiarity with the anna-pie denominations; over time, it boosted economic efficiency by reducing calculation errors in commerce. Pakistan followed with its own decimalisation on 1 January 1961, redefining the rupee as 100 paisa to align with global standards. China's currency system has featured decimal subdivisions for centuries, rooted in ancient monetary practices that evolved from coins and notes during the Tang and dynasties, where units like the wen were divided ly in weights and values. The modern (RMB), or yuan, was formalized in December 1948 by the amid the , establishing 1 yuan equal to 10 jiao and 100 fen, building on earlier reforms that introduced the yuan as a silver-based unit in 1903. This 1948 standardization replaced fragmented wartime currencies and hyperinflationary notes, stabilizing the economy post-1949 by promoting uniform accounting across the newly formed ; it has since supported China's global trade dominance, with the yuan's structure aiding digital transactions and international reserves. Japan adopted decimalisation as part of the Meiji Restoration's modernization efforts, promulgating the New Currency Act on May 10, 1871, which replaced the feudal ryō-gold and mon-copper systems with the yen as the base unit, subdivided into 100 sen and further into 1,000 rin. This reform, influenced by European models, standardized coinage production at the newly established Imperial Mint and aligned with global trade standards, ending the proliferation of domain-specific currencies that had hindered economic unification. The yen's decimal framework facilitated rapid industrialization during the late , enabling precise in emerging industries like and shipping, and remains integral to 's position as a major economy today. In , decimalisation reflected a mix of colonial legacies and post-independence reforms. Indonesia introduced the rupiah on November 2, 1949, following provisional use during the 1945 independence struggle against Japanese occupation, defining 1 rupiah as 100 sen to replace the non-decimal gulden system; this structure, issued by , streamlined amid nation-building efforts and supported economic recovery from wartime devastation. Similarly, the established its peso on decimal terms in 1857 under Spanish decree, subdividing 1 peso into 100 centavos (previously centimos) as part of the Isabeline , which replaced the earlier real-based system and integrated the archipelago's silver coinage with global Spanish colonial standards; this enduring decimal division has underpinned financial stability through American and independent eras. Across the , decimalisation advanced despite regional variations in monetary traditions. launched the on February 24, 1980, replacing the hyperinflated at a rate of 10 pounds to 1 shekel, with 1 shekel subdivided into 100 new (equivalent to 1,000 old agorot); this reform, managed by the , curbed annual exceeding 400% and restored public confidence in currency through decimal simplicity. In , the riyal was formalized by royal decree in 1928, evolving to a decimal subdivision of 100 halalas by the under the Saudi Arabian Monetary Agency, which overcame initial hesitations tied to traditional accounting practices and aligned the kingdom's oil-driven economy with international norms.

Oceania

Decimalisation in Oceania was predominantly shaped by mid-20th-century transitions in British-influenced territories, aligning with Australia's shift to a decimal system and facilitating easier trade within the . Most nations replaced the imperial pound, , and pence with currencies divided into 100 subunits, emphasizing standardization and simplification for . This wave of change, occurring mainly in the , reflected broader global momentum toward decimalization while incorporating local cultural elements in currency naming and design. Australia pioneered the regional adoption by introducing the on 14 1966—"Decimal Currency Day"—at a conversion rate of one dollar equaling 10 shillings (or half a pound), subdivided into 100 cents. The Currency Act formalized the process, building on recommendations from the 1963 Decimal Currency Committee report, which advocated for a base-10 system to reduce calculation errors in commerce. Extensive public campaigns, orchestrated by the Decimal Currency Board from 1963 to 1966, included educational films, jingles, and school programs to familiarize citizens with the new coins and notes, ensuring a smooth two-year transition period during which both systems coexisted. New Zealand implemented its decimal currency shortly after, launching the on 10 July 1967 at a rate of two dollars per pound, also comprising 100 cents. The National government announced the change in , with preparations overseen by an under-secretary and involving widespread publicity efforts in English and te reo Māori to promote adoption among diverse communities. This alignment with Australia's model minimized disruptions in , and the transition featured new coin designs reflecting national symbols, supported by media jingles and educational materials. Among Pacific island nations, adopted the on 15 January 1969, converting at two dollars to the Fijian pound and introducing cents for subunits alongside denominations like 50-cent and 1-dollar notes. , having used the decimal since 1966, established its independent currency with the kina on 19 April 1975, divided into 100 toea and initially equivalent to two Australian dollars, to assert national identity post-independence. In contrast, —under French oversight—had already decimalized earlier with the in 1945, pegged to the and structured as 100 centimes, providing stability amid aftermath concerns. Samoa aligned its transition with New Zealand's timeline, introducing the tala on 10 July 1967 at two tala per pound, subdivided into 100 sene, with commemorative coin edges inscribed to mark the shift. Tonga similarly decimalized on 3 1967 by launching the pa'anga—named after a historical Tongan term for value—at a rate of two pa'anga per pound, consisting of 100 sene, deliberately avoiding "dollar" to preserve cultural resonance. By the early , every Oceanic country had completed full adoption, eliminating non-decimal holdovers and integrating seamlessly into global financial systems.

Other Applications

Measurement Systems

The originated in during the 1790s amid the , as scientists sought a universal, decimal-based framework to replace inconsistent local measures. The was defined as one ten-millionth of the distance along the Earth's meridian from the equator to the , passing through , establishing a rational, decimal progression for length units such as the (0.1 ) and (1,000 metres). Similarly, the emerged from the same effort, initially as the mass of one cubic (later ) of pure water at 4 °C (its of maximum ), with the gram serving as one-thousandth of a to enable decimal scaling in mass measurements. The system's international expansion accelerated with the of 1875, signed by 17 nations in , which established the International Bureau of Weights and Measures (BIPM) to standardize and preserve metric prototypes. This treaty facilitated global adoption, evolving into the (SI) by 1960, with decimal relationships integral to units like volume (e.g., subdivided into 1,000 millilitres). All of the world's countries have officially adopted the (SI) as their legal framework for measurement, primarily through the Metre Convention, though the extent of its use as the primary system in daily life varies, with it being essential for , science, and most national standards. In the United States, metrication has been partial since the of 1975, which promoted voluntary adoption of SI units as the preferred system for federal agencies and trade while retaining customary units like inches and yards in many sectors. The initiated its transition in through a government policy endorsing metric standards for industry and education, with examples including the shift from miles to kilometres in road signage and speeds, though resistance from sectors like has delayed full implementation, leaving hybrid use in areas such as measurements. The decimal foundation of SI units offers significant benefits in scientific applications, enabling precise calculations and conversions without complex factors, as all base and derived units (e.g., metres for length, kilograms for mass) scale by powers of ten. This coherence reduces errors in fields like physics and , where experiments demand high accuracy, and supports global collaboration by standardizing data across borders.

Financial Securities

Decimalisation in financial securities involved the transition from quoting prices in fractions of a currency unit to decimal formats, particularly affecting stock and bond markets by standardising increments to cents or equivalent subunits. In the United States, this reform was driven by the Securities and Exchange Commission (SEC), which mandated a phased implementation starting in 2000 and culminating in full adoption by April 9, 2001, across exchanges like the New York Stock Exchange (NYSE) and Nasdaq. Prior to decimalisation, stock prices were quoted in fractions, with the final standard being increments of 1/16 of a dollar (equivalent to 6.25 cents), as in examples where $1 equated to 16/16 and prices like $10 4/16 became $10.25. This fractional system originated with the 1792 Buttonwood Agreement, which formalised trading among brokers and adopted divisions based on the Spanish dollar segmented into eighths, evolving to 1/8 quoting by the 1870s and persisting until a brief shift to 1/16 in 1997 as a precursor to decimals. Globally, securities markets aligned decimal pricing with national currency reforms where applicable. The London Stock Exchange transitioned to decimal quoting in tandem with the United Kingdom's currency decimalisation on February 15, 1971—known as —closing in preparation on February 12 to adjust trading systems from the pounds-shillings-pence (£sd) format to decimal pounds and pence. In , the , established in 1878 following the introduction of the decimal-based yen in 1871, has employed decimal quoting from its early operations, with significant refinements such as the 1998 adjustment to minimum tick sizes that further narrowed decimal increments for enhanced precision in trading stocks across price ranges. The impacts of decimalisation were profound, primarily boosting market efficiency and accessibility. In the US, the switch reduced bid-ask spreads dramatically— securities saw an average 50% narrowing—while increasing trading volume and liquidity, thereby lowering overall transaction costs and facilitating smoother . Conversion from fractions to decimals followed the simple [price](/page/Price)=numeratordenominator\text{[price](/page/Price)} = \frac{\text{numerator}}{\text{denominator}}, such as 18=0.125\frac{1}{8} = 0.125 dollars, eliminating computational complexities that hindered . Studies confirmed these benefits extended to quoted and effective spreads, though they also noted increased order fragmentation due to smaller tick sizes. Derivatives markets underwent parallel decimalisation to synchronise with underlying assets. options exchanges implemented decimal pricing as part of the SEC's 2000 phase-in order, achieving full conversion by April 9, 2001, which similarly tightened spreads and improved liquidity in options trading on equities and indices. This alignment reduced discrepancies in pricing mechanisms and supported more efficient hedging strategies.

Numerical Notations for Large Sums

In numerical notations for large financial sums, two primary systems have historically been used: the short scale, predominant in the where a billion denotes 10^9 (one thousand million) and a denotes 10^12 (one million million), and the long scale, traditionally used in much of and the where a billion denotes 10^12 (one million million). The short scale emerged in the U.S. during the , aligning with powers of 1,000 for simplicity in growing economic contexts, while the long scale, rooted in European traditions dating back to the , relied on powers of 1,000,000. A significant global shift toward the short scale occurred post-1970s, driven by American economic dominance and the need for uniformity in international transactions. In the , the long scale prevailed until 1974, when the government officially adopted the short scale for statistics and official use to mitigate ambiguities in global communications, particularly with the U.S. This transition addressed historical confusions, such as those arising in and where mismatched definitions could lead to errors in values or economic reporting; for instance, pre-1974 British usage occasionally sparked disputes in cross-border deals until (e.g., 1,000,000,000) became a recommended clarifier. To denote large sums efficiently, often employs SI decimal prefixes, such as mega- (M, 10^6) for millions and (G, 10^9) for billions, aligning with short scale conventions for precision in reporting. These prefixes, standardized under ISO 80000 for quantities and units, facilitate unambiguous scaling in financial contexts without relying solely on verbal names. For example, $ is universally abbreviated as $1M or 1 million, while larger amounts like $1,000,000,000 require explicit clarification as $1B (short scale billion) in international contracts to prevent misinterpretation as the long scale equivalent of 10^12. Today, major central banks and the (ECB) universally adopt the short scale for clarity in statements and disclosures, reflecting the post-1970s and reducing risks in global financial . This practice ensures consistent interpretation of figures like national debts or GDP metrics exceeding trillions, prioritizing decimal-based precision over regional naming variances.

References

  1. https://usma.org/conversion-to-decimal-currency
  2. https://hansard.parliament.uk/Lords/1967-01-30/debates/9229b811-a2fd-4c6f-9cec-97297b85f4af/DecimalCurrency
  3. https://www.moneymuseum.com/en/moneymuseum/archive/coin-catalogue?&id=90800
  4. https://www.uscurrency.gov/history
  5. https://www.napoleon.org/en/history-of-the-two-empires/articles/a-history-of-the-franc-the-key-moments/
  6. https://www.nma.gov.au/defining-moments/resources/decimal-currency
  7. https://www.royalmintmuseum.org.uk/journal/history/decimalisation/
  8. https://www.merriam-webster.com/dictionary/decimalization
  9. https://dictionary.cambridge.org/us/dictionary/english/decimalization
  10. https://www.oxfordlearnersdictionaries.com/us/definition/english/decimalization
  11. https://www.collinsdictionary.com/us/dictionary/english/decimalization
  12. https://www.etymonline.com/word/decimal
  13. https://www.etymonline.com/word/decimalization
  14. https://www.math.drexel.edu/~jsteuber/Educ525/History/history.html
  15. http://duodecimal.net/archives/duodecimal/duodecimal.html
  16. https://math.stackexchange.com/questions/8734/why-have-we-chosen-our-number-system-to-be-decimal-base-10
  17. https://www.cambridgemaths.org/Images/research-3-money-and-decimals-full.pdf
  18. https://www.natwestgroup.com/heritage/subjects/decimalisation.html
  19. https://hansard.parliament.uk/Commons/1855-06-12/debates/634f919e-eba5-42df-ab96-c92783f8cdc4/DecimalCoinage
  20. https://metrication.uk/shopping/decimalisation/
  21. https://www.sciencedirect.com/science/article/abs/pii/S1053535709001152
  22. https://www.woolworthsmuseum.co.uk/1970s-decimalisation.html
  23. https://www.historic-uk.com/HistoryUK/HistoryofBritain/Decimalisation-in-Britain/
  24. https://www.amsr.org.uk/inflation-decimalisation-and-metrication/
  25. https://coinweek.com/a-brief-history-of-decimalization-day-in-the-uk/
  26. http://news.bbc.co.uk/2/hi/europe/1569606.stm
  27. https://unesdoc.unesco.org/ark:/48223/pf0000081687
  28. https://www.math.uci.edu/~ndonalds/math184/notes.pdf
  29. https://www.academia.edu/2916303/Mesopotamian_Mensuration_Balance_Pan_Weights_from_Nippur
  30. https://fiveable.me/history-of-mathematics/unit-2
  31. https://mathshistory.st-andrews.ac.uk/HistTopics/Arabic_numerals/
  32. https://www.ias.edu/sites/default/files/sss/papers/econpaper96.pdf
  33. https://www.ceifx.com/news/history-of-italian-money-from-the-florentine-florin-to-the-european-euros
  34. https://plato.stanford.edu/entries/economics-early-modern/
  35. https://treasures.kreml.ru/en-Us/showcase-4/view/russkie-monety--xvi-xvii-vekov/
  36. https://www.usmint.gov/learn/history/us-circulating-coins
  37. https://www.monticello.org/research-education/thomas-jefferson-encyclopedia/currency/
  38. https://www.jstor.org/stable/43580427
  39. https://www.exchangerate.com/currency-information/argentine-peso.html
  40. https://new.coinsweekly.com/coins-medals-more/from-taler-to-mark-the-long-road-to-a-common-currency/
  41. https://founders.archives.gov/documents/Hamilton/01-07-02-0334-0001
  42. https://www.usmint.gov/learn/history/timeline
  43. https://www.bankofcanada.ca/wp-content/uploads/2010/07/1841-71.pdf
  44. https://thecanadianencyclopedia.ca/en/article/dollar
  45. https://www.bankofcanada.ca/wp-content/uploads/2010/07/dollar_book.pdf
  46. http://rochesternumismaticassociation.org/media/Meetings/IrickABeginnerSetofMexicoTypeCoins.pdf
  47. https://www.banxico.org.mx/banknotes-and-coins/d/%257BB8C0D87B-F55F-792A-A6C6-FC0F58CF2EA3%257D.pdf
  48. https://www.nationalbanken.dk/en/what-we-do/notes-and-coins/historical-coins
  49. https://www.cgai.ca/canada_u_s_trade_an_enduring_relationship_nafta_or_not
  50. http://www.chicagocoinclub.org/projects/PiN/ccp.html
  51. https://coinvarieties.com/index.php/El_Salvador_1892_centavo
  52. https://worldsilvermeltguide.com/coin-values/costa-rica-gold-and-silver-coins/
  53. https://24carat.co.uk/hondurashistory.html
  54. https://www.atsnotes.com/catalog/banknotes/nicaragua.html
  55. https://www.numismaticnews.net/world-coins/panamas-monetary-system
  56. https://boj.org.jm/core-functions/currency/currency-timeline/
  57. https://www.centralbank.org.bb/banknotes/past-banknotes
  58. https://www.cert-net.com/files/publications/conference/139.pdf
  59. https://www.eccb-centralbank.org/history-of-the-ec-currency
  60. https://en.numista.com/catalogue/guadeloupe-1.html
  61. https://dev.me/currency/info/ANG
  62. https://www.investopedia.com/terms/c/cup.asp
  63. https://www.atsnotes.com/catalog/banknotes/cuba.html
  64. https://www.gourde.com/
  65. https://en.numista.com/catalogue/haiti-2.html
  66. https://www.bcra.gob.ar/BCRAyVos/Exposiciones_permanentes_Sala3_i.asp
  67. https://www.bcb.gov.br/ingles/museu-espacos/refmone-i.asp?frame=1
  68. https://www.bcentral.cl/documents/33528/133329/eee_125.pdf
  69. https://www.bcv.org.ve/system/files/archivos-descargables/folleto_de_la_quiripa_al_soberano.pdf
  70. https://www.bcrp.gob.pe/docs/Publicaciones/Revista-Moneda/moneda-154/moneda-154-09.pdf
  71. https://currency-history.info/history-of-bolivian-currency/
  72. https://www.bis.org/review/r011127c.pdf
  73. https://www.bceao.int/en/content/history-cfa-franc
  74. https://www.centralbank.go.ke/currency-history/
  75. https://www.investopedia.com/terms/forex/k/kes-kenyan-shilling.asp
  76. https://www.cbe.org.eg/en/banknote/banknote-issuance/banknote-history
  77. https://www.bkam.ma/en/Banknotes-and-coins/Demonetized-notes-and-coins
  78. https://blog.remitly.com/currencies/malagasy-ariary/
  79. https://www.sbp.org.pk/finance/Coins.asp
  80. https://gazetteers.maharashtra.gov.in/cultural.maharashtra.gov.in/english/gazetteer/greater_bombay/banking.html
  81. https://www.thoughtco.com/brief-history-of-the-renminbi-chinese-yuan-688175
  82. https://insights.ebanx.com/en/resources/payments-explained/china-currency-yuan-renminbi/
  83. https://www.npb.go.jp/en/products/intro/ostu_history/osatsu_history2.html
  84. https://www.banknoteworld.com/indonesia-2-1-2-sen-1-000-rupiah-18-pieces-coin-set-1945-2000-km-56-315-mint-w-folder.html
  85. https://www.exchangerate.com/currency-information/philippine-peso.html
  86. https://www.boi.org.il/en/economic-roles/coins/new-agora-and-sheqel-series/
  87. https://www.sama.gov.sa/en-US/Currency/Pages/HistoricalInfo.aspx
  88. https://museum.rba.gov.au/exhibitions/the-decimal-revolution/a-new-currency/
  89. https://www.moadoph.gov.au/explore/stories/history/the-introduction-of-decimal-currency-how-we-avoided-nostrils-and-learned-to
  90. https://www.naa.gov.au/students-and-teachers/student-research-portal/learning-resource-themes/society-and-culture/public-education/decimal-currency
  91. https://www.australiangeographic.com.au/blogs/on-this-day/2017/02/australia-switches-from-pounds-to-dollars/
  92. https://www.rbnz.govt.nz/museum/currency/preparing-for-decimal-currency
  93. https://teara.govt.nz/en/coins-and-banknotes/print
  94. https://digitalnz.org/stories/666028cedcae54002fce8f37
  95. https://www.rbf.gov.fj/core-functions/currency-management/a-history-of-fijis-currency/
  96. https://www.bis.org/review/r081124e.pdf
  97. https://www.investopedia.com/terms/c/cfp-franc.asp
  98. https://collections.museumsvictoria.com.au/items/66702
  99. https://www.reservebank.to/index.php/banknotes/history-of-the-tongan-paanga
  100. https://americanhistory.si.edu/collections/object-groups/metric-system-demonstration-apparatus/the-origin-of-the-metric-system
  101. https://www.nist.gov/si-redefinition/kilogram/kilogram-past
  102. https://www.bipm.org/en/metre-convention
  103. https://www.nist.gov/blogs/taking-measure/busting-myths-about-metric-system
  104. https://www.nist.gov/pml/owm/metric-si
  105. https://ukma.org.uk/what-is-metric/uk-progress/uk-metric-timeline/
  106. https://www.nist.gov/pml/owm/metric-si/si-units
  107. https://www.investopedia.com/terms/b/buttonwoodagreement.asp
  108. https://www.sec.gov/news/testimony/052401tslu.htm
  109. https://www.latimes.com/archives/la-xpm-2001-jan-26-fi-17207-story.html
  110. https://www.nytimes.com/1971/02/13/archives/stocks-end-mixed-in-paris-market-frankfurt-moves-higher-london.html
  111. https://www.sciencedirect.com/science/article/abs/pii/S0889158305000560
  112. https://www.gao.gov/assets/gao-05-535.pdf
  113. https://www.sciencedirect.com/science/article/abs/pii/S1042957303000172
  114. https://www.sec.gov/news/testimony/ts092000.htm
  115. https://www.federalregister.gov/documents/2000/04/19/00-9789/order-staying-the-deadlines-for-decimal-implementation-and-notice-of-request-for-comment-on-revised
  116. https://www.antidote.info/en/blog/reports/millions-billions-and-other-large-numbers
  117. https://researchbriefings.files.parliament.uk/documents/SN04440/SN04440.pdf
  118. https://thebettereditor.wordpress.com/2014/04/19/the-long-and-the-short-of-the-british-billion-thousand-million/
  119. https://www.ecb.europa.eu/pub/pdf/scpops/ecbop153.pdf
Add your contribution
Related Hubs
Contribute something
User Avatar
No comments yet.