Iraqi Dinar Discussion Board

[Aerospace]

If they lopped the zeros right now and set the new exchange rate to 1:1 that would be an instant 20% increase. That would be a very substantial increase in value.
We've seen quite a few articles that talked about moving to 1000:1, then lopping the zeros. They could still do it that way. You could see another push like they did a year or so ago... where they move it down to 1000:1 over the next six months or so and then lop. We'll have to wait and see.

They did not do it before now because inflation was still high. If you had read the University of North Carolina paper that I have tried to get you guys to read... you would understand that the facts are that countries wait until inflation is under control before lopping. Instead you continue to believe what Internet dinar pumpers are telling you.

The UNC paper.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=27106003
Heres are a couple lines....
"As a result, redenominations often occur after economic crises, as governments attempt to convince citizens and markets that hyperinflation is a thing of the past"

"Redenomination is more likely following a period of high inflation and a subsequent stabilization"

"governments do choose to redenominate, but only after a sustained period during which inflation has been reigned in; the time between hyperinflation and redenomination, then, may stretch to over a decade."

The program rate doesn't really mean much. The IMF Stand By Arrangement is considered the program, it is within that program that the rate was set. The Stand by Arrangement can easly be described as an Economic Reform program. That also is talked about in the UNC paper.

"Currency redenomination, then, may come as part of a broad package of economic and political reforms "

"Furthermore, for those nations that do adopt redenomination as a strategy; and particularly those that redenominated at the end of an economic reform progress; there are substantial variations in timing.