9-8-2012 Hame55: SIGR report implies that the "dropping of the zeros" may mean taking them off the exchange rate, not the nominal (printed) value on the notes.
If the new value would have been just less than a dollar if they had they not postponed the rate change, then it makes sense it implies the .86 rate, or as some have said around $1.17, more or less.
What I am getting at here, is if they LOP, they would have to raise the value after the LOP three to four times, in order to raise the absolute, real value at all and give people some sense their currency has reached its former value before the war and sanctions.
Therefore, the SIGIR report implies a "redenomination" in the form of a revalue, with issuance of new lower denom notes (hence the technical term redenomination") Let's hope they honor 3-zero notes - there is little precedence otherwise. Just my thoughts.
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9-8-2012 Kaperoni: My facts come from CBI symposiums held in Iraq, as well as the SIGIR report issued just this last April where they stated the dinar was about to rise in value to just less than the USD.
They did not say lop. The word redenomination is mis construed as a bad thing when in fact, that is what they are doing. By shear definition of changing from a larger currency to a smaller currency, that is a redenomination. That is not the issue.
The issue is what is Iraq going to do with the old 3 zero notes? In this case, we believe they will honor at face value.
Partytime Reply To Kaperoni: "In this case, we believe they will honor at face value."
key word is you BELIEVE they will honor at face value.
That is certainly the HOPE that they will, but the TRUTH is, nothing has ever come out stating whether or not they will honor the 3 zero currency at face value.
This is the $1 million dollar MYSTERY question NO ONE has the answer to!
The issue is not whether they will increase the value of dinar, the issue is, how will they TREAT the current 3 zero notes when they do increase the value?