No, you have done the math correctly after they remove the zero's instead of being .00086 dollars per dinar it will be .86 dollars to the dinar. And not to say a dirty word here but that sounds like a L*P to me but I hope not.
If 1 divided by .00086 equals approximately 1166 dinars,
and if you take three zeroes from the .00086 to get .86,
then you would STILL have to divide the .86 into the dollar, to get:
$1 divided by .86 = 1.16
correct? Maybe I'm not getting it, but I never understood not having to still do the math if you took the 3 zeroes off in this way.