(Posting from Qcsquality at OOMC)
Federal Reserve Explains Devaluation & Revaluation
Paragraphs 4 & 5 of full article on NY feds website
(Begin) Under a fixed exchange rate system, only a decision by a country's government or monetary authority can alter the official value of the currency. Governments do, occasionally, take such measures, often in response to unusual market pressures. Devaluation, the deliberate downward adjustment in the official exchange rate, reduces the currency's value; in contrast, a revaluation is an upward change in the currency's value.
For example, suppose a government has set 10 units of its currency equal to one dollar. To devalue, it might announce that from now on 20 of its currency units will be equal to one dollar. (this happened to the Iraqi Dinar in the early 90’s)This would make its currency half as expensive to Americans, and the U.S. dollar twice as expensive in the devaluing country. To revalue, the government might change the rate from 10 units to one dollar to five units to one dollar; this would make the currency twice as expensive to Americans, and the dollar half as costly at home. (end)
For the naysayers that believe a revaluation of the Iraqi Dinar (IQD) is not possible, this is the written evidence from the “Federal Reserve” that a revaluation is absolutely possible and not only possible but more than probable in the case of the IQD. The above scenario reflects exactly what has happened in Iraq (devaluation) and what remains to take place in Iraq (revaluation), which we all believe is very close and imminent for the country.
Notice the term above; “this would make the currency twice as expensive to Americans”. In this scenario whatever monies you held in your possession would be worth “Twice as Much” as before the revaluation! The difference here is that the IQD currently has a value of roughly 1/10th of a penny to the USD therefore what we hold in our hands would be worth far more than double.
Even if the IQD only revalued at .01 (one cent) to the USD, IQD investors would stand to make ten times their initial investment. If the IQD revalues at the rate (USD 3.30) as spelled out in the state department document “The Future of Iraq Project” (page 14), this will certainly be the investment of the century and become one of the greatest transfers of wealth that our world has ever seen!
God bless you, God bless this investment and GOD BLESS AMERICA!
Full Fed Article Here: