The reason the 50 note was pulled is the CBI is going to lift the 3 zeros…A 5000 note will become 50. Make no mistake they are going to lift the 3 zeros from the nominal value of the currency.
So the value with lifting the 3 zeros would be as such…a 25,000 note is .00086 or $21.50 usd…lifting the zeros the note is 25 at .86 and equal to $21.50 usd.
Now to go to 56 cents is a 30 cent devaluation and a 25 BECOMES $14.00 usd (a loss of $7.50). The argument is…They are not going to take away the 3 zeros from the currency…BUT the fact is they are! They will! AND they have said as much in ink.
BUT…The new currency must come first as a prelude to the removal of the 3 zeros.
So the 25k notes and three zero notes will see a value because the lower denoms will be out…but the new currency with the new value will be only a short time before they lift the 3 zero accounting off 3 zero notes.
The governments supporting this will never allow this value of money to be floating around for long. It requires a short exchange window time period.
WE know they are eliminating corruption and accounting in the trillions with adding 3 zeros makes it easier. They are going to lift the 3 zeros and need to do so before/start of 2016.
And by the salary ladder they have announced…it works to values around $2.66 per dinar.
That being said: In what world does 10 cents or 56 cents work on new currency without 3 zeros.
The hype about what the IMF says is being read through IQD speculator goggles…the IMF will never give a hint to more value coming to currency…
AND it appears that even political groups in Iraq don’t have a clue as they demonstrate over the new salary ladder. Watch the retirement pay scale adjustment.
The Iraq citizen in the USA getting 1 million IQD per month on QI card…the adjustment coming to around 325 thousand IQD..which when exchanged equals the same $860 usd (if valued at $2.66)…this is why the salary ladder and retirement law and rescaling of payments is so positive that change is coming in the value.