Sunday, July 03, 2016 4:16:43 PM
The "deleted zeros" folks are talking about is nothing more than a proposed redenomination put on hold back in 2012. It is not a revalue. A 25,000 dinar "old" note will be worth a 25 dinar "new" note if it goes through. Kind of like "reverse split" in penny stock land speak. 
Zimbabwe did the same thing...many many times.
Anyone who thinks their old notes are going to increase in value relative the the American $ because of a redenomination, assuming there is ever a mechanism to exchange then, is in for a disappointment. It is more likely that at some point the old currency will be phased out if they ever did that...and hold little more than novelty value.
It would be smart of the Iraqis to do this. In one fell swoop over time they can essentially wipe out any currency liabilities for the billions in the old notes that are outside Iraq and not "turned in" or "converted". However the process of introducing and converting to new notes would likely be expensive and complicated.
Zimbabwe did the same thing...many many times. Anyone who thinks their old notes are going to increase in value relative the the American $ because of a redenomination, assuming there is ever a mechanism to exchange then, is in for a disappointment. It is more likely that at some point the old currency will be phased out if they ever did that...and hold little more than novelty value.
It would be smart of the Iraqis to do this. In one fell swoop over time they can essentially wipe out any currency liabilities for the billions in the old notes that are outside Iraq and not "turned in" or "converted". However the process of introducing and converting to new notes would likely be expensive and complicated.
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