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Re: WayneC777 post# 258

Tuesday, 02/23/2010 1:28:04 PM

Tuesday, February 23, 2010 1:28:04 PM

Post# of 607
"You can not have two currencies on the market at the same time with different values."

That is so absolutly wrong.
EVERY redenomination/lop does exactly that.
They issue a new currency. There is a given exchnage period. some as short as as a week, some as long as a year. During that exchnage period BOTH currencies are valid. Both currencies have a different exchnage rate.
In this case the current dinar will still be worth .00085.
The new dinar will exist side by side with it but will have a rate of .85

Say you go to the market to buy a loaf bread. That bread will either cost you 5000 current dinars, or 5 of the new dinar.

So imagine you pay with a 25,000 dinar note for that loaf of bread. You will get either 20,000 of the currenct dinars or 20 of the new dinars as change.

As the exchange period ends, all currennt dinar will have to be exchnaged for the new dinars, at a rate of 1000 current for 1 new. The currenct dinars will become invalid the day the exchange period is done.
that is why it is described as gradually removing the zeros. It would be a nightmare and probably impossible to do it overnight.

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