Скачать или смотреть Dinares: Update Iraq currency revaluation (redenomination)

CCTV/CNTV This News Broadcast Aired on Sept 8th, 2011

Revaluation means a rise of a price of goods or products. This term is specially used as revaluation of a currency, where it means a rise of currency to the relation with a foreign currency in a fixed exchange rate. In floating exchange rate correct term would be appreciation. The antonym of revaluation is devaluation. Altering the face value (nominal) of a currency without changing its foreign exchange rate is a redenomination, not a revaluation.
http://en.wikipedia.org/wiki/Revaluation

Redenomination is the process of changing the face value of banknotes (nominal) or coins used in circulating currency.
http://en.wikipedia.org/wiki/Redenomi...

In 2010, the Central Bank of Iraq announced their plans to redenominate the Iraqi Dinar to ease cash transactions. The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars. Although the announcement stated that the change would take place by the end of 2010, there has been no redenomination as of January 2011 and no further announcements have been made. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." For more information about the redenomination, read "Iraq Planning Currency Redenomination."
http://www.xe.com/currency/iqd-iraqi-...

Thursday, April 28, 2011
iraq plans to change currency printversion, Re-denomination
http://www.investorsiraq.com/showthre...


Dr. Shabibi's Speech at the US Chamber of Commerce in Washington D.C. on April 19th, 2011

Question:

I've heard a report in the last couple of days That Iraq is about to cut three zeros off the currency ...they call that re-denomination that may be the same question (revaluation) that you just received but I wonder if you had any information about that.

shabibi answer

Well, I mean .... I don't know whether if it is the same question (revaluation), I think this cutting of three zeros... shouldn't be exaggerated ... that is a problem...the question is ... just re-denomination and .... people writing a lot of articles in the news papers... criticizing the Central Bank...., that is going to devalue the Iraqi dinar... that is going to depreciate ... all kinds of talks. This is a question, just actually, to facilitated payment... ease of counting and all this things.... when you see a lot of figures, you see trillions and huge figures.... if you want to be precise and you see twelve figures or fifteen figures or digits ... So I think we have a plan on that.

If you remember ... there was not a government decree to add this zeros. It happened because of the course of development of the economy at the beginning of the eighties.... Inflation was very high ... Inflation was rampant and therefore... small denoms start not to be use ...so government started to add the three zeros.... and of course conditions are different now .

Inflation is under control, exchange rate is manage by the Central Bank.... when you have the zeros you could not manage ... not because of fault of the government or the Central Bank (only) ... which I think there was but because there were a lot of exogenous (external) factors.

I'm not saying that we are champions now... there were a lot external factors which affected and a lot of people did not know what to do, so they started to add three zeros and all this things.

So now the situation is completely different from that time, you had a high inflation, you have now a low inflation, you had actually something which is a stable macroeconomics situation . At that time the situation was not stable . So the only way to combat all of this things at the time was to increase the denomination and put three zeros. - Dr. Shabibi
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