addin

THIS IS NOT ABOUT SITUATION........ THIS IS REDENOMINATION RULE....

for more enjoyable read..click the link i give... link> http://www.thestatesmanonline.com/pages/news_detail.php?newsid=1602&section=9

hye back...this is also gonna be in iraq....nigeria redenominate it currency from 2000= 20 ........and it 50 = 50 cent...enjoy it.....for more enjoyable read click the link i give link > http://www.cenbank.org/redenomination/newpolicy.asp FAQ's On The New Naira Policy Especially The Naira Re-Denomination The new ‘Strategic Agenda for the Naira’ announced by the Central Bank of Nigeria on August 14, 2007 is generating a healthy national debate. Before we undertake a nation-wide enlightenment programme, (beginning September 2007) to educate the public on the new policy, it is important to clarify some of the issues/questions that are emerging. The CBN announced a 4- point agenda designed to make the Naira the “Reference Currency in Africa”, as part of the Financial System Strategy 2020 (FSS2020) and the elements of the agenda are: Currency Re-Denomination Adoption of Inflation-Targeting Framework for the conduct of monetary policy Sharing part of the Federation Account funds in US Dollars to Deepen the Forex Market and for Liquidity Management Current Account liberalization/convertibility and accession to Article VIII of the IMF Needless to emphasize that to appreciate the full impact of the new policy on the Naira/national economy, we need to take the 4-point agenda as a package. As a package, the new agenda will: better anchor inflation expectations, strengthen public confidence in the Naira, make for easier conversion to other major currencies, reverse tendency for currency substitution, eliminate higher denomination notes with lower purchasing power, reduce the cost of production, distribution and processing of currency, promote the usage of coins and thus a more efficient pricing and payments system, promote the availability of cleaner notes, deepen the Forex market, ensure more effective liquidity management and monetary policy, convertibility of the Naira and hence greater confidence in the national economy and lead to greater inflow of foreign investment position the Naira to become the ‘Reference currency’ in Africa. However, most of the questions so far pertain to only one aspect of the agenda i.e. Currency Re-denomination. We have monitored the reactions so far, and note that the concerns/questions raised so far are similar to the ones raised in all the countries that have undertaken re-denomination, including Ghana that is still implementing it now. We clarify some of the concerns as follows: What Is Currency Redenomination? Currency redenomination is the process where a new unit of money replaces the old unit with a certain ratio. It is achieved by removing zeros from a currency or moving some decimal points to the left, with the aim of correcting perceived misalignment in the currency and pricing structure, and enhancing the credibility of the local currency. How Will The Naira Be Redenominated? It is by dropping two zeros from the currency or moving two decimal places to the left. The name of the national currency will still be the Naira. However, during the transition period, the existing Naira will be referred to as the “Old Naira”, and the new one to be called the “New Naira”. After the transition period, the word “New” may be dropped. For example, the following equivalents will obtain as we re-denominate: Old Naira (i.e, Existing Naira as at today) New Naira (as from August 1, 2008) 50 kobo Half kobo** N 1 1 kobo coin N 2 2 kobo coin N 5 5 kobo coin N 10 10 kobo coin N 20 20 kobo coin N 50 50 kobo coin or note*** N 100 N 1 note N 200 N 2 note** N 500 N 5 note N 1000 N 10 note N 2000* N 20 note * Not issued ** Will not be issued *** Some commentators have come up with a suggestion that we should keep all the Kobo in coins and all the Naira in Notes. We will consider the suggestion. Is The Redenomination Policy A Re-Valuation Or Resort To A Fixed Exchange Rate Regime? No. Redenomination is not the same as revaluation. A revaluation entails an official adjustment of the exchange value of a country’s currency (usually an upward change in value) relative to other currencies by fiat under a fixed exchange rate regime. CBN will continue to maintain a market determined exchange rate regime. In his August 14, 2007, speech the CBN Governor used N1.25 to US$1 as an illustrative figure. It does not mean that the exchange rate will be fixed at that figure. The exchange rate may appreciate or depreciate depending on market forces. Is The Currency Redenomination The Same As Currency Decimalization? No. In the management of currencies, decimalization is the process of converting from traditional denominations to a “decimal” system, usually with two units differing by a factor of 100. For example, Nigeria adopted the decimal system on 1st January 1973, changing from Pound, Shillings and Pence to Naira and Kobo. We also changed our system of weights and measures into the decimal system (i.e. from Ounce and Pounds to grams kilograms; or miles to kilometres; Inches and Feet to centimetres and Metres). More specifically, the CBN Act (Section 15) prescribes a decimal system by stating that “The unit of currency in Nigeria shall be the Naira which shall be divided into one hundred kobo”. The currency is already structured in decimal system. The policy thrust is a re-denomination. The fact that we are removing two zeroes does not make it a ‘decimalization policy’. It could have been one, two, or three zeros. When Will The Re-Denomination Take Effect? August 1, 2008. There will be a ‘transition period’ of five months (August 1 – December 31, 2008) during which both the ‘old Naira’ and ‘new Naira’ will be legal tender. During the period, prices, salaries, etc can be quoted in both the new and the old Naira. Thus, the current Naira will still be legal tender until December 31, 2008. After December 31, 2008, the ‘old Naira’ will cease to be legal tender, but can still be exchanged at the commercial banks. How Will It Work? The ‘new Naira’ coins and notes will be different from the existing ones i.e. in design, appearance, security features, etc. All Naira assets and liabilities (including bank deposits), prices, fees, rents, and contracts (including salaries and wages) will be re-denominated by dropping two zeroes or moving two decimal points to the left. During the ‘transition period’ prices will be quoted in both the ‘new Naira’ and the ‘Old Naira’ and everyone will choose whether to pay in the new or old Naira. These five months will be allowed so that everyone will get familiar with the conversion, and it will become self-evident to everyone why he/she would prefer to transact in the ‘new Naira’ rather than the ‘old Naira’. For example, if a bag of garri sells for N2,000 (old Naira), the price in ‘new Naira’ will automatically be N20. The customer will choose to pay either N2000 in old Naira or N20 in the ‘new Naira’. In the supermarkets and formal markets, prices will be displayed in both ‘old’ and ‘new’ Naira. In the informal markets where prices are negotiated, the negotiation could be done in the ‘old Naira’ as usual and converted into the ‘new Naira’ if the customer wishes to pay with the ‘new Naira’. This will ensure that prices do not rise due to rounding-up. The five months are also needed for everyone (formal and informal sectors) to become fully familiar with the conversion. It will become obvious to everyone that N50,000 of the ‘old Naira’ has the same purchasing power as N500 of the ‘new Naira’. The question then would be: why carry N50,000 of old Naira when N500 of the new Naira will buy you the same thing? Consequently, if you have N50,000 in your bank account, it will automatically become N500 in the ‘new Naira’ i.e. if you want to withdraw in the ‘new Naira’ or you can still withdraw N50,000 in ‘old Naira’ during the transition period (August- December 2008). Similarly, someone whose monthly salary is N50,000 can choose (during the transition period) whether to withdraw and spend the N50,000 in ‘old Naira’ or N500 in the ‘new Naira’. Both would buy him/her the same value of goods and services. Examples of price equivalents in the new and old Naira could be: Commodity/Service Price in “Old Naira” Price in “New Naira” Fuel price per litre N70 70 kobo Price of one bag of garri N2,000 N20 Price of a bus drop N20 20 kobo House rent (e.g. a flat in some parts of Nigeria) N5000 per month N50 per month Stock price of a company Assume it is, say: N20 or N80 20 kobo or 80 kobo Airline ticket for domestic flight N12,500 N125 Exchange rate: N to US$ Assume it is say: N125 Or N130 Or N100 to US$1. N1.25 = US$1 Or N1.30 = US$1 Or N1 = US$1 Therefore, nobody will lose any value in terms of his or her money. What Are The Benefits Of The Re-Denomination? The medium and long-term benefits can only be appreciated when redenomination is seen in the context of the other three policy initiatives. The specific benefits of re-denomination include: Making pricing more efficient. Given the level of prices and low purchasing power of the coins, prices generally adjust in discrete jumps of five or ten Naira, rather than in Kobo. Under the new regime, one kobo will have relative value. We can see the price of fuel go up from say, 70kobo to say, 71 or 72 kobo instead of the current jumps of N65 to N70 to N75, etc. Correcting this distortion in pricing structure can have enormous impact on the national economy, especially as we commit to low inflation. cultivating the habit of using coins and reinforcing the on-going currency reforms. Promoting a more efficient payments system e.g. making ATMs part of our payment culture and de-congesting banking halls. Instead of withdrawing N50,000 from an ATM machine, N500 of the ‘new Naira’ will command exactly the same value. As we aspire for an international financial status and to become Africa’s financial hub by 2020, re-denomination will make for easy conversion to other currencies. As a ‘Reference Currency’, it will be easy for citizens of West Africa and other countries to convert to their national currencies and other currencies Reducing the risks associated with carrying large physical cash as we eliminate large denominations with very little value Discouraging currency substitution and addressing the perception that the domestic currency is weak despite its stability. Reducing the cost of printing, distribution and processing of currency Discouraging the abuse of the Naira as each Naira note under the ‘new Naira’ will have relatively high value, and coins will dominate transactions at the lower end of the market. Will The New Naira Policy Or The Re-Denomination Solve All Of Nigeria’s Economic Problems? No. The new policy (as a package of 4-point agenda) will only deliver the things outlined at the beginning of this Note. Mr. President has outlined a 7- point agenda needed to create wealth and jobs, reduce poverty, and ensure security of lives and property. The new Naira policy will help to create the macroeconomic stability, efficient payments system and confidence, which constitute an important building block to enable Mr. President’s programme work well. All stakeholders in the Nigerian economy--- public and private sector institutions and individuals--- will have to do their respective parts under the able leadership of Mr. President for the Nigerian economy to boom and endure. Does The CBN Have Adequate Plans To Enlighten/Educate Nigerians, Especially The Villages/Rural Areas About The Change? Yes. This is why we have announced the policy one year in advance. Specifically: o We have designed a mass education/enlightenment programme. The programme will be translated into several of Nigerian languages. o We plan to collaborate with mass organizations including labour unions, religious organizations, NGOs and Civil Society organizations, schools, professional organizations and trade unions, market associations, transport unions, organized mass mobilization agencies such as the National Orientation Agency, state and local governments, military/paramilitary organizations, council of traditional rulers, the mass media, etc to reach and educate every Nigerian on the change. o We shall embark on two phases of enlightenment programme: first (September – December 2007--- a general nation-wide enlightenment on what the policy is all about; second (February- July 2008)—nation-wide education on the operations of the programme, especially on pricing/conversion from old to the new Naira. What Will Be The Level Of Involvement Of Other Agencies/Organizations In The Implementation Of The Policies? The support and involvement of everyone will be needed. • More specifically, we will set up a Steering Committee and an Advisory Technical Committee to drive the process. The goal is to ensure that there will be no unintended effects, and to minimize the adjustment costs (if any) of the exercise. Is It True That Currency Re-Denomination Is Usually Done Under Conditions Of Hyper-Inflation? Not necessarily. Indeed, countries that did it under such circumstances without complementary reforms ended up re-doing it again and again. • Re-denomination is most successful when a country has achieved a measure of price stability and restored confidence in the national currency. It then proceeds to remove the ‘zeroes of shame’ to get the currency properly aligned. This is the condition now in Nigeria. Which Other Countries Like Nigeria Have Successfully Undertaken Such Reforms? Country Year 1. Ghana 2007 2. Croatia 1994 3. Finland 1963 4. Poland 1995 5. Uganda 1987 Several other countries have undertaken currency re-denomination including Israel, Turkey, Germany, South Korea, China, Brazil, etc. Nigeria is not imitating any country. We are re-denominating because the fundamentals of our currency structure require the new direction. We would also implement it in a way that takes our peculiarities into account. • We have learnt from the experiences of those who did it before us and would strive to make ours the most successful (just as we did with the banking sector reforms). New Lower Denomination Currency Notes And Coins Have Just Been Launched Into Circulation. Why Currency Redenomination At This Time? The CBN has proceeded with reforms in measured steps. The first was to re-build the basic financial infrastructure that would facilitate effective implementation of monetary policy and improved payments system (ie, reforms of the banking system). It was followed by gradual liberalization of the Forex market. The third is the currency reforms which are proceeding in two stages: first, re-design of the lower denominations, re-introduction of coins, and experimentation with the polymer substrate. Typically, countries re-design their currencies after 6- 8 years but our lower denominations were re-designed about 23 years ago (1984). The essence was to streamline the security features to combat counterfeiting and safeguard the integrity of the currency, as well as achieve cost savings. We have learnt a lot from these reforms, including the fact that the effective cost of printing currency notes and minting coins has been reduced by an average of about 50 percent. Currency re-denomination and deeper currency reforms are most successful under conditions of price stability and confidence in the currency/economy. Single-digit inflation has only been sustained for a year now. The convergence of the official and bureaux de change exchange rates have only recently been achieved. These are some of the pre-conditions we needed before deeper reforms. With the demonstrated commitment of President Umaru Yar’Adua (GCFR) to maintaining macroeconomic stability and deepening the institutional and structural reforms, the time has become auspicious to take currency reforms to the next higher level. Aside from the fact that the economic fundamentals (as the CBN Governor listed in his speech) support deepening the reforms, the most important driver of the new focus is the President’s commitment to macroeconomic stability/reforms. The new Naira Policy is thus part of the larger agenda to achieve Mr. President’s vision of economic prosperity. Furthermore, the new policy is part of the Financial System Strategy 2020 (FSS2020) designed to make Nigeria an international financial centre and the hub of the Africa’s financial system by the year 2020. Will Currency Redenomination Not Entail Enormous Costs? No. The new policy will not translate to high costs. Indeed, it will lead to much lower costs of printing, processing and management of currency over time. The following points are illustrative. First, most countries typically stock-pile 2-3 years of buffer stock of currency and when they embark upon currency re-design or re-denomination, such buffer stock is lost. In our case, we have no buffer stock. The ‘old Naira’ notes to be used in 2008 are just the ones currently under printing/minting. The life span of these notes is short, and there will be no waste. No new order will be placed for printing the ‘old Naira’ in 2008. Second, even without re-denomination, CBN would typically still incur costs in printing/minting the currency. Third, because the new currency structure will be dominated by coins (which last an average of 10 - 20 years) compared with currency notes which last a few months, the total cost of currency issuance and management will drastically be reduced over time. On cost considerations alone, the new policy is a winner. Will The Redenomination Policy Undermine The Proposed ECOWAS Common Currency? No. It is consistent with the proposed ECOWAS common currency and Nigeria is committed to the sub-regional goal. Ghana has just embarked upon a re-denomination exercise (by dropping four zeroes) and it is also part of the common currency agenda. Our policy agenda will provide leadership in the process of monetary integration

hye...this is gonna be in iraq.....i take this redenomination plan from ghana currency that slash 4 zero...in 2006....enjoy it.... link= http://www.thestatesmanonline.com/pages/news_detail.php?newsid=1602&section=9 The new Ghana Cedi . , 04/12/2006 By Kwaku Kwarteng, Ministry of Finance & Economic Planning Some time next year, the new cedi will be here. Until all the old cedi notes get phased out of the system, the new cedi will be called the Ghana Cedi (GH¢). Very soon, we will all see it with our eyes. When I say soon, I am talking about in eight months' time. The Bank of Ghana says it is going to be in July 2007. That is not really much time because, speaking with people about the conversions, I realise we would need close to that time for the education. And I think the country will also need that time to neutralise the prayers of those who want the change-over to become problematic. I am referring to the politicians. I heard one of them say on radio that the change to the new cedi is a ploy by the NPP Government to steal people"s money. I couldn’t believe it. Politicians are really strange people. WHY THE CHANGE? Well, apart from a few opposition politicians, people generally support the redenomination. And there are good reasons for that. These days, you cannot put ¢5,000,000 in your pocket without people noticing that there is something in your pocket, especially if it is in ¢5,000 or ¢2,000 notes. If you are one of those who deal in large sums of money, like ¢100 million upwards, then you always have to carry your money in a small sack or in a car boot. Which brings me to a point I forgot to make earlier on. In addition to opposition politicians, the other group of people who are uncomfortable with the change are the thieves, pick-pockets and the armed robbers. Carrying money on you so visibly helps their trade. But besides the risks and the inconvenience of carriage, the current denominations make book-keeping rather difficult. If you are writing a hundred billion cedis you have to write as many as eleven zeros (¢100,000,000 000). The zeros have become too many in our money. For those who deal with national revenues and expenditures, they are always dealing with trillion or billions or millions of cedis. It becomes so hard to write all the zeros. As a way out, these days, you see people writing Tr, Bn or M for trillion, billion and million respectively. The appearance of these shortcuts in our books and in our writing itself suggests that we are sick and tired of the many zeros. The only way forward is to redenominate. We thank the Bank of Ghana for understanding our problems. SO, WHAT IS REDENOMINATION? So, what is redenomination? Well, it is simple. Bank of Ghana is going to do something to our money so that instead of using say, ¢500 000 to buy something, we would now use fifty Ghana cedis (GH¢50) to buy that same thing. And that GH¢50 would be a single note! So you walk to the shop, pull out your wallet or purse, remove a single note of GH¢50 to buy that something, and off you go; no counting of money, no nothing. You just pay with your single note and walk away. The other time when I explained this to somebody, the person asked me an interesting question. Why won’t we just make ¢500,000 notes and other big notes so that when you go to buy something worth (say) ¢500,000, you just pull out one of the ¢500,000 notes, buy the thing and go away without any counting of money? Good question. We can do that, and the problem of plenty counting of money would be reduced, but because the money would still be written as ¢500 000, the plenty zeros would still be there in our writings and in our accounting books; which is not good enough. So, to solve the problem well, we have to reduce the zeros on the new notes. Thus, in the redenomination, ¢500 000 will become 50 Ghana cedis (GH¢50). The broader rule is that, ¢10 000 will be equivalent to one Ghana cedi. Which is to say, ¢20 000 will be equivalent to two Ghana cedis. ¢50 000 will be equivalent to five Ghana cedis. ¢100 000) will be equivalent to ten Ghana cedis, etc. For the purpose of doing the conversions, just remove four zeros (0000) from the cedi (¢) amount and you would get the equivalent Ghana cedi (GH¢) amount. PESEWAS (p) AND GHANA PESEWAS (GHp) Converting amounts that are more than ¢10,000is fairly straightforward. But we need to be more careful in dealing with amounts less than ¢10 000. We all remember what we learnt in primary school that ¢1is equivalent to hundred pesewas. Which means half cedi (¢½) is equivalent to fifty pesewas (50p). Now, let’s say you have ¢6000 to convert to the new denomination. First, I would try and change this money to pesewas, which would be 600 000 pesewas. I just multiplied the 6000 by 100 since one cedi is the same as a 100 pesewas. Then, in the same way that we removed four zeros from the cedi to get the equivalent Ghana cedis, we can remove four zeros from the pesewas to get the equivalent Ghana pesewas (GHp). So, our 600 000 pesewas will become 60 Ghana pesewas. That means, the ¢6000 (which is the same as 600 000 pesewas) is equivalent to 60 Ghana pesewas or 60 GHp. It is as simple as that. ANOTHER PESEWA EXAMPLE Take a sachet of water costing ¢300. If we want to convert it into the new denomination, we would start by remembering that ¢300 is the same as 30,000 pesewas. Again, I just multiplied the 300 by 100 since one cedi is the same as a hundred pesewas. Actually, right now, if you manage to gather enough pesewas up to 30 000 pesewas, you can go and buy sachet water with it, and it would be accepted. If the water seller says he or she would not accept it, you can report the person to the police. Now, to get the equivalent of ¢300 or 30,000 pesewas in the new denomination, we drop four zeros from the 30,000 pesewas to get 3 Ghana pesewas. So, when we start issuing the new money, a sachet of water, which now sells for ¢300, will sell for 3GHp. THE TRICK The trick is that when you have to convert a cedi amount of ¢10,000 or more, just remove four zeros to get the equivalent Ghana cedi amount. If the amount in cedis is less than ¢10 000, multiply by 100 to turn it into pesewas before removing the four zeros to get the equivalent in Ghana pesewas. Simple.

arghh.my 1m dinar will be 1 k dinar....how i gonna buy what i dream....

dont selfish...just accept what will come....iraq is iraq,they will do anything for their country....open your mind did you see any country use 1000,5000,10000,25000 exchange rate 0.1-6.00 usd and will get more money when they change their currency....wow.... if have show to me.....that country must be rich....they must do redenomination to get the power value of dinar....

that mean exactly true....i think you should read the latest news.....http://wp.me/pZC7o-7Ef they delete the zero to raise the dinar....they not lop but they redenomination the currency... just ready to reach the end

KEY WORD: Stated it iraq want people carry less money and keep purchasing power 1. Definition. Redenomination:iqd 25,000 would be iqd 25 and the iqd 25,000 value will be same value iqd 25 and the price item was also down and it does not affect the purchasing power 2. Effect of the community. In the Redenomination, no loss because the purchasing power remains the same. 3. Objectives Redenomination aims to simplify the breakdown of money for a more efficient and comfortable in transaction. enter into the next, preparing the economic equivalence of Iraq with countries in the region. 4. Value for money for item. On the currency redenomination of the item does not change, because the only way of pronunciation and writing are the adjusted fraction of the money. 5. Current condition is. Redenomination done when stable macro economic conditions. Economic growth and inflation under control. 6. Transition Redenomination thoroughly prepared and measured to the community is ready, so as not to cause civil unrest. HERE IS LOP...WHAT TRUE MEANING LOP???? DEFINITION: Were LOP will cut 25,000 to be 25 and the price item not down and it affects the purchasing power for example: the price of rice iqd 10000 if LOP happen the price item still remain iqd 10000 eventhough has LOP their money and this mean people will loss..money already LOP but the price item not drop and lose purchasing power EFFECT OF COMMUNITY: In the LOP, cause a lot of purchasing power losses due to decreased drastically. OBJECTIVE LOP aims at reducing the amount outstanding due to the surge of prices. Done because of the hyperinflation (inflation is very high) VALUE FOR MONEY FOR ITEM In the LOP, the value of money against item became smaller, because the cut is down CURRENT CONDITION IS: LOP is the macroeconomic situation is not healthy, very high inflation (hyperinflation) TRANSITION: LOP no transition period and made a sudden

1. Definition. Redenomination is moderate denominations (fractional) fractional currency becomes a little more by way of reducing the number (zero) without reducing the values ​​of the currency. Example IQD 10,000 to IQD10. The same is also done simultaneously on the prices of item, so that purchasing power remains unchanged. LOP is cutting consumer purchasing power by cutting the value of money.example iqd 10000 to iqd 10 and The same was not done in the prices of item , so consumers' purchasing power declined. 2. Effect of the community. In the redenomination, no loss because the purchasing power remains the same. In the LOP, cause a lot of purchasing power losses due to decreased drastically. 3. Objectives Redenomination aims to simplify the breakdown of money for a more efficient and comfortable in transaction. enter into the next, preparing the economic equivalence of Iraq with countries in the region. LOP aims at reducing the amount outstanding due to the surge of prices. Done because of the hyperinflation (inflation is very high). 4. Value for money for item. On the currency redenomination of the goods does not change, because the only way of pronunciation and writing are the adjusted fraction of the money. In the LOP, the value of money against goods became smaller, because the cut is down. 5. Current condition is. Redenomination done when stable macro economic conditions. Economic growth and inflation under control. LOP is the macroeconomic situation is not healthy, very high inflation (hyperinflation). 6. Transition Redenomination thoroughly prepared and measured to the community is ready, so as not to cause civil unrest. LOP no transition period and made a sudden.

im not think iraq will lop..........as i said redenomination and lop just the same thing but lop is suck..im not scare any people because im in this investment too......and like i said pray for iraq not delete the three zero just raise the value of the dinar..

sorry...but you must keep doing your research ..you must know all country do the process redenomination?? you must research about indonesia redenominate because they in process delete three zero(redenomination)...

you all just pray for iraq not delete three zero and pray for their just raise the value of the dinar

just read and understand it

1.Specifically about the redenomination vs Lop redenomination and the Lop is about the same Stated it iraq want people carry less money and keep purchasing power in this case redenomination:iqd 25,000 would be iqd 25 and the iqd 25,000 value will be iqd 25 and the price item was also down and it does not affect the purchasing power for example: the price of rice there iqd 10000 if redenomination price of rice will be iqd 10 and they will pay the money iqd 10 (This is the meaning iraq people want to carry less money and keep purchasing power) Were LOP will cut 25,000 to be 25 and the price item not down and it affects the purchasing power for example: the price of rice iqd 10000 if LOP happen the price item still remain iqd 10000 eventhough has LOP their money and this mean people will loss..money already LOP but the price item not drop and lose purchasing power

1.Specifically about the redenomination vs Lop redenomination and the Lop is about the same Stated it iraq want people carry less money and keep purchasing power in this case redenomination:iqd 25,000 would be iqd 25 and the iqd 25,000 value will be iqd 25 and the price item was also down and it does not affect the purchasing power for example: the price of rice there iqd 10000 if redenomination price of rice will be iqd 10 and they will pay the money iqd 10 (This is the meaning iraq people want to carry less money and keep purchasing power) Were LOP will cut 25,000 to be 25 and the price item not down and it affects the purchasing power for example: the price of rice iqd 10000 if LOP happen the price item still remain iqd 10000 eventhough has LOP their money and this mean people will loss..money already LOP but the price item not drop and lose purchasing power

by the way i learn from my master

from what i learn Redenomination is moderate denominations (fractional) fractional currency becomes a little more by way of reducing the number (zero) without reducing the values of the currency. The same is also done simultaneously on the prices of goods, so that purchasing power remains unchanged. LOP is cutting consumer purchasing power by cutting the value of money. The same was not done in the prices of goods, so consumers' purchasing power declined. In redenomination, no loss of purchasing power remains the same because, while in the LOP cause a lot of purchasing power losses due to decreased drastically. In addition it seeks to simplify fractions redenomination money for more efficient and comfortable in transaction.purpose enter into the next, preparing the economic equivalence of Iraq with countries in the region, while the LOP to reduce the outstanding amount due to the surge of prices. Done because of the hyperinflation (inflation is very high). In redenomination value for money of goods does not change, because the only way of pronunciation and writing of the adjusted fraction of the money alone, while in the barrel, the value of money against goods became smaller, because the cut is down. Redenomination is usually done when the macro-economic stability. Economic growth and inflation under control, while the LOP is the macro economic situation is not healthy, very high inflation (hyperinflation). Redenomination thoroughly prepared and measured to the community is ready, so as not to cause turmoil in society, while the LOP there is no transition period and made a sudden

i just want to know how about about our dinar that we hold after delete three zero it gonna be like this 10000 iqd = 10 new iqd or 10000 iqd = 10x1000 new iqd

HELLO..this is my first time post to this forum...so dont get angry with me.........in the xe.com said The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars.....so 1000 iqd=1 new iqd.....so the old and new currency still legal in iraq until the old currency remove from the world...so in iraq they gonna use dual pricing system...i think this situation gonna be same like turkmenistan currency...turkmenistan also use the same word knocking off the zeroes to stable and get powerful economy Turkmenistan has redenominated its national currency, the manat, cutting off three zeroes while also removing the image of its autocratic former leader, Saparmurat Niyazov, from all coins and all but one banknote. The government says the procedure will strengthen the manat and promote foreign investment. Some Turkmen, however, are anxious about the move, saying any currency change will create more uncertainties in markets and could drive prices up. Turkmenistan's central bank officially entered the redenominated manats into circulation on January 1. President Gurbanguly Berdymukhammedov, speaking on national television, sought to assure his people that, unlike the old currency, the new manats will have a stable value. "Our stable and powerful economy guarantees it," Berdymukhammedov said. Despite huge deposits of natural gas -- it possesses the world's fourth-largest reserves -- Turkmenistan is one of the poorest of the ex-Soviet states. Poverty is widespread, and the country has suffered from years of official neglect of public woes. Since assuming power following Niyazov's death in late 2006, Berdymukhammedov has taken tentative steps toward reducing Turkmenistan's international isolation, promising to carry out economic and financial reforms, while also dismantling Niyazov's bizarre personality cult. The redenomination of the manat could be seen as one more step in that direction. Niyazov's Portrait Replaced In the redenominated currency, one new manat equals 5,000 old ones. Niyazov's portrait has been replaced on all but one banknote with historical figures, including poets, philosophers, and monarchs. Long queues outside currency exchange offices and the recent surge of the currency black market show that the denomination process is going badly. A lack of openness in society is making it go badly. Niyazov is still featured on the highest-value banknote, a 500-manat bill, which equals 2,500,000 old manats. Turkmen will receive their next salary in new manats. However, old banknotes will remain in circulation alongside the new ones until the end of the year. Markets and shops have already introduced a dual pricing system. The government has ordered all banks to exchange people's old banknotes with new manats without any restrictions. The Turkmen government expects the redenomination will strengthen the manat and stabilize the currency exchange system in the country. Until last year, the currency exchange market was under strict government control. The government had fixed the official exchange rate for the Turkmen currency at around 5,200 manat per dollar. However, such exchange rates in Turkmen banks were not available for all. For ordinary Turkmen, the only option to obtain foreign currency was the black market, where the national currency was more realistically priced at around 24,000 manats per dollar. During the last year, the government introduced a so-called commercial rate, which helped to lower the massive difference between the black market and the official exchange rate. At the end of the year, the currency exchange rate on both the black market and at banks was about 14,000 manats per dollar. Turkmen President Gurbanguly Berdymukhammedov It is hoped that the new manat will eliminate the black market and create a single-system currency exchange rate. However, government critics doubt that the currency redenomination will have a beneficial impact on the Turkmen economy and the country's finances. Khudaiberdy Orazov, the former head of Turkmenistan's central bank and now an exiled Turkmen opposition leader, told RFE/RL's Turkmen Service that the currency change will only make people more anxious about the state of the economy and the value of their savings. "Long queues outside currency exchange offices and the recent surge of the currency black market show that the denomination process is going badly," Orazov said. "A lack of openness in society is making it go badly. People are not aware of what is going on and how things work at the government level. People are concerned because of their negative experiences in the past. So, such situations are not good for people." Mixed Reactions The currency redenomination has brought mixed reactions among ordinary Turkmen. Some people are concerned that the currency reform will add to uncertainties in markets and drive prices up. Shortly after redenomination plans were initially announced last year, many Turkmen rushed to black markets to exchange their manats for dollars and euros. Former Turkmen President Saparmurat Niyazov However, some people are happy that at least the new currency will simplify pricing and accounting. Besides, with debit and credit cards barely used in Turkmenistan, it will spare them from having to carry hundred of thousands of manats in their wallets for a simple shopping trip. For instance, a bunch of flowers in an Ashgabat market used to cost up to 1,000,000 old manats. Now, that will be 200 new manats. Atageldi Garaev, an Ashgabat resident, said he hasn't noticed any differences in prices, yet. "People do not have many concerns about the denomination, unlike during the currency change in Niyazov's time [in 1993]," Garaev said. "Prices so far remain the same. Markets use two price tags, both the old manat value and the new one." Time will tell whether the redenomination is a serious step toward financial reform or -- as some suspect -- the mere replacement of old banknotes and coins to get rid of a former leader's tarnished image. http://www.rferl.org/content/Turkmenistan_Redenominates_Currency_Further_Dismantles_Niyazov_Personality_Cult/1365812.html