Clare [Post 1 of 2…..] Article: “Delete zeros and evaluate the dinar” Quote: “In a newspaper column a while ago, we explained the concept of deleting zeros, and today we are talking about the concept of currency revaluation, which means a calculated upward adjustment of a country’s official exchange rate…revaluation is the opposite of devaluation. In a fixed exchange rate system (the system followed by Iraq), only a decision from the state (the central bank) can change the official value of the currency…In a flexible exchange rate system, revaluation occurs on a regular basis, as evidenced by the noticeable fluctuations in the foreign exchange market…The United States maintained a fixed exchange rate until 1973, when President Richard Nixon decided to abandon the gold standard and switch to a flexible exchange rate system...”
Clare [Post 2 of 2] “China…revalued its currency in 2005, which was linked to the US dollar. After the revaluation, it was linked to a basket of global currencies…The book values of assets held abroad may have to be adjusted to reflect the effect of the change in the exchange rate. For example, suppose a foreign government has set 10 units of its currency to equal one US dollar. To revalue its currency, the government might change the rate to 5 units per dollar…If the value of the asset held in a foreign currency was previously valued at $100,000 based on the old exchange rate, the revaluation requires a change of $200,000. This change reflects the new value of the foreign asset in the local currency by adjusting the revaluation of the relevant currency.“
