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Tuesday, May 9, 2017

DINAR IRAQ & DONG VIETNAM UPDATED, 9 MAY

Revaluation (Definition): A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency.
In a fixed exchange rate regime, only a decision by a country's government (i.e. central bank) can alter the official value of the currency.
Re-denomination has nothing to do with Re-valuation. When a currency is redenominated the central bank of that country will reissue notes at a decided ratio for both speculators and its citizens.
The old notes are given certain time period for exchange and then destroyed once they are returned to central bank. Note that, the purchasing power remains the same throughout the transaction except you are getting new notes for old notes.
Differences between Re-denomination & Re-valuation: For re-denomination, All the old notes must be replaced with new notes.
This is not needed for a re-valuation. Re-denomination does not change the net value (Purchasing Power) while Revaluation does that.
Bank should announce in advance for a decision of Re-denomination while banks will never announce in advance for Revaluation.
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Governor of the Central Bank of Iraq Ali Allaq on Sunday, revealed 70% of the currency outside the banking sector, while calling for educating citizens to protect the Iraqi currency.
He said for “Tomorrow ‘s Press,” that “the Central Bank’s mission is the financial and monetary organization policy in Iraq, during its monitoring of the volume of deposits in banks found that it does not fit a lot about what is in Iraq from the monetary bloc, where it was found that about 70% of currency outside the banking sector.”
Keywords pointed out that “not usually in other countries to be so large amounts of currency outside the banking sector must therefore banks to promote and educate citizens to deposit their money in banks,” asserting that “the central bank supports education towards this important issue, which can help to stimulate trade and economic movement.”
Alghad Press

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