10-16-12 SWFloridaGuy: This post is in response to a persisting rumor that a RV of the IQD (or any other currency) is more likely to happen on a Wednesday as opposed to other days of the week. In my opinion there is no basis for this rumor and my research shows it to be completely inaccurate.
The same "RV day" claim has also been made many times about Fridays. A large currency appreciation event is when the nominal effective exchange rate is revalued by at least 10% or more relative to the previous average level and not only includes the one-time step revaluation, but also a number of smaller appreciation steps that happen within a short time window.
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Whether a country revalues on a trade-weighted basis as a consequence of the appreciation of the anchor currency, the demise of an old system (bretton woods), the exchange rate regime being changed towards a more market determined rate or if the central bank revalues the central parity of the currency,
The one thing they all have in common is that they happened over a period of time which was determined by the details of the specific project and there is no predictable pattern.
For example: Algeria (1980-1982): The exchange rate of the Algerian dinar was pegged to a basket of currencies with a large USD weight.
Dollar strength during the early 1980s led to a strong 17.2% appreciation of the dinar on a trade-weighted basis.
Australia (1971-1973): The depreciation of the USD led to a 10.2% appreciation of the Australian dollar which was pegged to the British pound.
Ireland (1979-1980): After joining the ERM in 1979 triggered a 12.9% trade weighted appreciation.
Switzerland (1974-1976): The Swiss National Bank managed a 22.4% sustained exchange rate appreciation against dollar and DM.
Colombia (1993-1995): The central bank revalued the central parity of the currency 11.2%.
Czech Republic (2001-2003): An 11.2% appreciation was linked to the introduction of a new exchange rate regime framework (with a crawling band and Central Bank interventions).