Fnu Lnu [Post 1 of 2] Question: “Inside Iraq the deletion of Zeros means a 25k note becomes a 25 note. OUTSIDE of Iraq the 25k note will retain its face value. Would not the locals start traveling outside the country to exchange? What would prevent abuse of this system?” It’s real simple. First, they issue the new specie (zeros deleted) and require everyone to exchange their three zero notes within a short period of time…say a month. They are not a free country like we are. The government will tell them that after 30 days, their three zero notes will be worthless.
Fnu Lnu [Post 2 of 2] Currency holders outside the country will then be told the RV has happened and they need to exchange their currency and then that program will start. The rate will be exactly the same. Lets say it is $3.00. The guys with the new currency in the country will have a 25 Dinar note that is worth $75 in USD. The rate outside the country will be $3.00 and the 2500 Dinar note will be exchanged for $75,000.00, USD. The rate is the same inside and outside the country only the value of the currency will differ. The Iraqi will have a windfall especially since that 25,000 dinar note is worth about $26 USD now. HAPPY!
