Re-denomination and revaluation do not mean the same thing…A re-denomination changes the numbers printed on the currency, usually by removing zeros…Your purchasing power does not automatically increase. If 1,000 old dinars equals one new dinar, your bank balances, prices, wages and debts would be converted using that same ratio…It does not automatically make you richer…A currency revaluation means the official exchange value of the currency is increased relative to another currency or benchmarks…Suppose one US dollar buys approximately 1300 units of a currency. If the CBI changes the official exchange rate so $1 bought only 1,000 units, that currency would have strengthened in value against the US dollar…When Iraq talks about deleting or removing zeros investors must ask, Are officials discussing a re-denomination…or are they discussing a change in exchange rate or monetary reforms involving both elements? Sandy Ingram
