A re-denomination is a neutral event. Zero gain. If they did such an event, they could raise it incrementally thereafter which would be a increase in the exchange rate…but only minimal. There is no significant RV of the dinar. Only if they choose to float from the current rate will the dinar significantly rise, but it would be over time. Iraq is only worth about $16-$18 trillion dollars and they have well over 45 trillion dinar in circulation. That is a fact! The math does not work! Therefore, they either LOP the dinar reducing the dinar from 45 trillion to 45 billion and then incrementally raise it as the economy grows. Or, they float the dinar at the current rate and reduce the money supply gradually as the exchange rate rises.
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