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New Currency, New Code?


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I don't start many topics, but I wanted to help shed some light on an issue that seems to be confusing people. I believe we all agree that any dramatic increase in the value of the dinar will require them to issue a new currency. I'd rather not debate at this point whether or not Iraq could conceivably support a revaluation to $.86. For the sake of argument let's assume that they can. If they go this route they will issue new lower denominations within the same currency series with the same currency code of IQD. If they re-denominate they will also need new lower denominations but from a new currency series with a different currency code. So the issue isn't whether or not a new currency means a new value. The issue is whether that value will be applied to the dinar that investors hold or to a new currency that investors will have to exchange to. If Iraq does what other countries like Russia, Romania, Mexico, Venezuela, Brazil, Turkey, Zimbabwe, and Afghanistan have done they will apply the value to the new currency with a new currency code in a re-denomination. If they apply it to the IQD it will be a revaluation rather than a re-denomination and it would be the first revaluation ever carried out in this manner. Essentially the key here is the currency code. Does it stay or does it go when they issue the new currency? If it stays the gurus are right. If it goes the loppers are right. So actually the only thing we should be watching for is news about a change in the currency code.

Edited by doctor robbins
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I don't start many topics, but I wanted to help shed some light on an issue that seems to be confusing people. I believe we all agree that any dramatic increase in the value of the dinar will require them to issue a new currency. I'd rather not debate at this point whether or not Iraq could conceivably support a revaluation to $.86. For the sake of argument let's assume that they can. If they go this route they will issue new lower denominations within the same currency series with the same currency code of IQD. If they re-denominate they will also need new lower denominations but from a new currency series with a different currency code. So the issue isn't whether or not a new currency means a new value. The issue is whether that value will be applied to the dinar that investors hold or to a new currency that investors will have to exchange to. If Iraq does what other countries like Russia, Romania, Mexico, Venezuela, Brazil, Turkey, Zimbabwe, and Afghanistan have done they will apply the value to the new currency with a new currency code in a re-denomination. If they apply it to the IQD it will be a revaluation rather than a re-denomination and it would be the first revaluation ever carried out in this manner. Essentially the key here is the currency code. Does it stay or does it go when they issue the new currency? If it stays the gurus are right. If it goes the loppers are right. So actually the only thing we should be watching for is news about a change in the currency code.

Exactly.

Zambia are due to redenominate on 1st Jan, they had the new code created on 31st Aug.

Question didn't they change the code when the changed from Saddam notes ?didn't it b ecome the IQD at that time ?

we have not heard any talk about changing the code at this time so lets GO RV!!!!

No it didn't. The last amendment to the IQD code was in April 1999.

It will be a new currency Code for it's new currency all together, but both will be good old and new for 1 to 2 years till the old is all brought in to be destroyed.

Not necessarily, you can have a new 'issue' without changing the code. A new code is only required if there is a redenomination, effectively the only way to have two exchange rates.

In my lifetime the British pound has changed its appearance more times than I care to remember.

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