Pimpy
Changing the exchange rate has a huge impact on inflation, imports and exports. I think Iraq can easily go up in increments. This will allow them to really monitor the inflation. This will also increase the quality of life for the Iraqi people.
People are getting confused…When they delete the zeros, they’ll change the currency. It’s not the exchange rate.That’s where the confusion is…If I have a 25000 dinar and I delete the zeros, now I have a new currency that comes out…They have the same value. The nominal value is a number...25000…the new one says 25, but the exchange rate between these two currencies stays the same - 1 to 1. What they’re saying is the 25000 dinar has an equal value of the 25 dinar. That goes on for a little time until people trade in all the notes. They’re not talking about against other currencies.
No comments:
Post a Comment