Pimpy
Community comment: "If the Iraqi government do something like deleted the zeros and devalue the 25,000 bank note down to 25, IMO this will hurt the trust of Iraqi government because they allowed the sale of the dinar understanding that this was an option in recuperation towards the Iraq government economy."
The Iraqi people don't give a shit if you bought their currency and invested in it. It doesn't look bad on them. The Iraqi government didn't make any promises about the Iraqi dinar...If you took that gamble, that's on you.
I would call it a devalue because they're not devaluing.
All they're doing is changing the way the bank notes look. So instead of 25,000 dinar, you now have 25 dinar. That's the nominal value. That's just the way the note looks...It's not being devalued, it's still the same...
Right now the exchange rate on 25,000 dinar is .00076...you get $19. When they delete the 3 zeros off the bank notes...they're going to take the 3 zeros off the exchange rate. So now it's going to be 25 x .76 which comes out to $19.
The value of the dinar stays the same. The bank note, the nominal value, is the thing that's going to change.