Pimpy [Post 1 of 2] The Iraqi central bank wants to remove the zeros off the Iraqi dinar. We spoke about this at least 5 billion times…They’re talking about the removal of the zeros, the deletion of the zeros. He’s talking about a redenomination…A 1,000 dinar note becomes a 1 dinar note. Get it? Deletion of the zeros. Removing the zeros only affects the nominal value not the actual value. “Nominal” is the way the bank note looks. So instead of it being 1,000 dinars, it’s a 1 dinar. That’s the only value that changes. Not the actual exchange value. That will remain the same.
Pimpy [Post 2 of 2] So let’s say they didn’t delete the zeros. You have a 25,000 dinar note. Times the current exchange rate .00076 comes out to $19 [25,000 X .00076 = $19]. If they delete the zeros your 25,000 dinar becomes a 25 dinar…You take the 25, now the zeros are going, multiply the exchange rate, which they took the 3 zeros off, which is .76 is still $19 [25 X .76 = $19]…With the zeros, $19. Without the zeros, $19…..The nominal value will change, but not the actual value…They need to change the old bank notes for the new bank notes…You’re going to exchange your 25,000 dinar straight across for 25. That’s what’s going to happen…You’re not going to be able to exchange 1,000 for 1,000.
