[Response to Clare Article below] This guy’s only got 1/2 the picture…CBI won’t just remove 3 0s without adjusting the nominal exchange rate and then adding purchasing power to the dinar — a rate change to you and me, we might call it an RV, though their end game is reinstatement…This guy is just referring to swapping out currency for Iraqis only. He’s not taking into account what happens to the dinar internationally…To an Iraqi, removing 3 0’s is just taking old dinar out of circulation and replacing it with smaller bills/digital payments. That’s why this guy is talking about a partial peg. The CBI is talking about a pure float. He’s only looking at half the process. This article is addressed to Iraqis only. IMO of course.
Above mentioned Post is below
Clare Article: “What would happen to the Iraqi dinar if the zeros were removed? Comment by Dr. Mahmoud Dagher” Quote: “Economist Mahmoud Dagher pointed out that deleting zeros will not change…the purchasing power of the dinar…Instead of carrying a bundle of 50,000 dinar notes, it will be possible to compress them into a smaller number of notes after removing the zeros, and this will not change their purchasing power. The amount of money on offer…is equal to 105 trillion dinars, and after removing the zeros, the amount will be 105 billion dinars, which is exactly the same amount, and the exchange rate will change from 1320 dinars per dollar to 132 dinars per dollar.“
