Tuesday, May 1, 2018


.The fundamental problem in all this is the interpretation of the term "revaluation". 

  Revaluation is a recognised term in respect of an upward change in the value of a currency on a fixed exchange rate. Currencies on a floating exchange appreciate rather than revalue.

 Revaluation can also be used as the overall outcome of a redenomination, in this case it is a revaluation of the monetary unit and not the currency itself.  

Under certain circumstances the term can be used when the price of something changes value. It is just financially impossible for the Iraqi dinar to move from the current rate to around $4 in a currency revaluation per se. If there is to be any significant return on the dinar it has to come from a different direction.  

...As far as Iraq is concerned, the redenomination could be the end of monetary reform, not the beginning...

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