On TV today, the 25, 50 and 100 dinar notes – reintroducing…could help facilitate everyday transactions…However their issuance alone would not confirm that the CBI is about to delete the zeros. Deleting the zeros – This would be a redenomination, changing the face value of the currency…It would not by itself increase the dinar’s purchasing power. They say the coexisting period will allow the old notes and the new notes to circulate together for several years…it would give the banks time to exchange and adjust their currency. The CBI governor also stated issuing or redesigning denominations falls within the bank’s authority while deleting zeros requires legislation. As for the exchange rate there’s an important mathematical distinction. If Iraq removed three zeros while maintaining the existing rate of 1310 old dinars per US dollar, the resulting would be 1.31 new dinars per dollar. That is not the same as setting the new dinar’s value at a dollar. :Omar
