article from currency newshound

[R-ational V-isionary]

The Central Bank of Iraq is stressing that the deletion of the 3 zeros from the Dinar will not affect the exchange rate or price of the currency.

A Deputy Governor of Central Bank of Iraq, Ahmed Ibrihi that “the deletion of zeros from the Iraqi currency has nothing to do price and exchange rate.” Said Ibrihi told all of Iraq on Sunday, said: “Some people imagine that the state wants to influence prices or exchange rates (a reduction or lift ) by the deletion of zeros and this is not true. ” He added that “the deletion of zeros nothing to do with price and exchange rate and that the addition of larger groups of the currency does not require the deletion of zeros.”

pretty sure this is the outcome to an eight year investment..........awesome.

[JCOUTEE]

I believe he is just saying that there will be no lop !! I may be wrong but I think that its just saying that our 25,000 note will remain at that value regardless of what happens ..

[FarmersDaughter]

Usually when someone is denying something, it is because someone has accused them of something. Seriously, who is accusing Iraq of changing the exchange rate that is provoking them to write these articles? Who are they trying to convince that they are not going to RV? Are they following this forum? Freaky!

[Bjizzle30]

Usually when someone is denying something, it is because someone has accused them of something. Seriously, who is accusing Iraq of changing the exchange rate that is provoking them to write these articles? Who are they trying to convince that they are not going to RV? Are they following this forum? Freaky!

Nice observation

[menholt]

i wont believe its a lop untill Shabibi himself says it is or isnt....all these stories come from a deputy governor...per Shabibi--" re-valution depends on inflation and trade imports and exports and balance of payments and development part and then determine the exchange rate... ...

[Daddyduf]

Who is "Ahmed Ibrihi" ? I heard that when Kuwait revalued, they came out the day before and said they would not revalue. So who knows... Maybe thats whats happening here. I ve only heard from Saleh and Shabibi before and now all of the sudden this Ahmed guys says something on behalf of the CBI.. Im not goin for it.

[DinarDana]

According to Wikipedia Ahmed Ibrihi was a Kurdish writer, novelist and translater.

[dinarck]

Many are worried in Iraq that the removal of the 000 will devalue the currency and it will not. They are only trying to quell those fears with this article. They also state that they can introduce lower denoms and leave the 000 notes in circulation and nothing would change which is true as well. Both the new currency and the old will have the same value. What will really confuse many is when they said that prices will not be affected. Actually they would but not really. Same as when they say the exchange rate will not be affected. The easiest way to look at it is to look at what the items being purchased are worth in USD. Say an Iraqi is buying a cig lighter for 1000 dinar worth 1 USD. After RD he will buy that lighter with 1 IQD worth 1 USD so the price of the lighter didn't change. Or he could use a 1000 dinar note which is still worth 1 USD as well. This is what they mean by prices not being affected. Same with the exchange rate. Think USD. Now 1000 dinar can be exchanged for 1 USD. The new 1 dinar can be exchanged for 1 USD. No change. This is of course if they bring the exchange rate to 1. instead of .85. If not then the 1000 IQD can be exchanged for .85 USD or the new 1 IQD could be exchanged for .85 USD.

[sportfisher]

link?

[dinarck]

i wont believe its a lop untill Shabibi himself says it is or isnt....all these stories come from a deputy governor...per Shabibi--" re-valution depends on inflation and trade imports and exports and balance of payments and development part and then determine the exchange rate... ...

Yeah I hear ya. Shabs is the man and anyone else is unreliable info. Problem is Shabs said in his DC speech that they would do excactly what I wrote above. Sux

[dinarella-X]

Who is "Ahmed Ibrihi" ? I heard that when Kuwait revalued, they came out the day before and said they would not revalue. So who knows... Maybe thats whats happening here. I ve only heard from Saleh and Shabibi before and now all of the sudden this Ahmed guys says something on behalf of the CBI.. Im not goin for it.

He is a Deputy Governor of Central Bank of Iraq

[Bongalow]

He is a Deputy Governor of Central Bank of Iraq

No offense but how do you know. Have you met him?? Perhaps carrying his spawn. He is a pawn in a rather large cluster "F" at this institution of monetary dilusion called the CBI.

I have searched for pics of him with shabbs or saleh to no avail. 7 years ago I jumped. Facts over opinion anyday.

Just sayin!!

[dinarella-X]

No offense but how do you know. Have you met him?? Perhaps carrying his spawn. He is a pawn in a rather large cluster "F" at this institution of monetary dilusion called the CBI.

I have searched for pics of him with shabbs or saleh to no avail. 7 years ago I jumped. Facts over opinion anyday.

Just sayin!!

Here's where I got my info little man. Maybe you should quit looking at the pictures and READ

Date: Mon 06/27/2011 4:43

Follow-up / long

A Deputy Governor of Central Bank of Iraq, Ahmed Ibrihi that "the deletion of zeros from the Iraqi currency has nothing to do at the exchange rate and prices." Ibrihi said in a statement to the Agency all of Iraq on Sunday, said: "Some people imagine that the state wants to influence prices

Or exchange rate (a reduction or waiver) by the deletion of zeros and this is not true. "He added that" the deletion of zeros nothing to do with price and exchange rate and that the addition of larger groups of the currency does not require the deletion of zeros. "

He continued that "it is not expected to convene Officer in the state to promote a false consciousness about economic life and promote the illusions of the common disorder. "

It should be noted that the "plan of deleting three zeros from the Iraqi currency is one of the proposed projects. And confirms the economists that this project will facilitate cash transactions; because the handling of cash in Iraq is complex; due to the variation in currency exchange between the Iraqi dinar and the U.S. dollar, which could reach the cash transactions to the trillions it requires complex calculations to see the results of those transactions in the profit and loss, and others. "

The central bank Iraq has decided to restructure the local currency in order to develop the payment system in the country, and start execution of the strategic long-term, specialized to the restructuring of the local currency for the development of the payments system in Iraq.

The "International Monetary Fund calls Iraq a number of economic measures including the privatization of banks and raise the zeros three of the local currency and to meet debt and compensation is the responsibility of Iraq, if Iraq's desire to receive support the International Fund.

In the meantime, he saw an expert industrial Abdul Hassan Shammari that the deletion of zeros from the Iraqi currency is an achievement will go down to the Central Bank in the event was implemented, as announced Bank is ready to delete the zeros from the currency, and added that the step is one of the functions of strategic him.

Al-Shammari said the Agency news on Sunday: the restructuring of the currency will not affect the Industry and Trade of Iraq, but it is a good step from the central bank, which will add an achievement should the state have been implemented because they will ease a lot of effort to balance and commercial stores.

He Shammari: This topic is very important and was supposed to be implemented some time ago, indicating that we are not the only country that has raised the zeros, Turkey deleted six zeroes from the currency and has become a LL one.

The central bank announced in Earlier, his willingness to delete the zeros of the Iraqi currency, as he emphasized that this step is one of the jobs strategy of the bank, and pointed out that the new currency will contain the Kurdish language in addition to Arabic.

The adviser said the Iraqi Central Bank Governor appearance of Mohammed Saleh told Alsumaria News The "zeros that Added to the Iraqi currency during the last period, formed a cluster of large cash $ 28 trillion and 500 billion Iraqi dinars nearly five trillion paper money, "noting that" the Bank prepared the supplies all of the deletion of zeros from the currency. "

Saleh added that "the process is one of the jobs strategy of the Bank Central Iraq, "noting that" the Bank's monetary policy is based on the structure and reduce the volume of currency in a country moving to the stage of the economy. "

Salih stressed that "the project to delete the zeros have been completed and will be presented to the management of the Central Bank of Iraq during its next meeting, and then raise before the Council of Ministers to be presented to the House of Representatives for a vote, "pointing out that" the mechanisms of switching and changing the currency would be gradual preceded by campaigns to educate the citizens. "

Saleh continued that "the new currency that will be printed after the deletion of zeros will contain the Kurdish language in addition to Arabic, as well as for some pictures that refer to the heritage and cultures of Iraq and symbols of scientists and thinkers the Iraqis. "

The Iraqi Central Bank Governor Sinan Shabibi said at a meeting of independent bodies with Prime Minister Nuri al-Maliki, who held on 19 June current, ready to create all the supplies to replace the Iraqi currency.

in turn, said member the Finance Committee in the House of Representatives of Iraq, that the committee did not address so far to the question of changing the Iraqi currency.

and said Najiba Najib told the Kurdish news agency that he "had not been talking so far in the Finance Committee representative on the issue of changing the Iraqi currency, having met some time ago the Governor of Central Bank of Iraq and Minister of Finance, has not had discussions in this regard so far. "

She Najiba "The Iraqi dinar exchange rate compared with the U.S. dollar is stable at the present time, the central bank could maintain the stability of the Iraqi dinar exchange rate against the dollar."

"The change currency will not cause a rise in the value Aldenarabraghi, and there are a number of accounting measures should be taken by the central bank, in order to stabilize the dinar exchange rate, including the buying and selling bonds, and dealing with international banks in various countries

http://almadapaper.n...n=view&id=43137

[Bongalow]

Here's where I got my info little man. Maybe you should quit looking at the pictures and READ

Date: Mon 06/27/2011 4:43

Follow-up / long

A Deputy Governor of Central Bank of Iraq, Ahmed Ibrihi that "the deletion of zeros from the Iraqi currency has nothing to do at the exchange rate and prices." Ibrihi said in a statement to the Agency all of Iraq on Sunday, said: "Some people imagine that the state wants to influence prices

Or exchange rate (a reduction or waiver) by the deletion of zeros and this is not true. "He added that" the deletion of zeros nothing to do with price and exchange rate and that the addition of larger groups of the currency does not require the deletion of zeros. "

He continued that "it is not expected to convene Officer in the state to promote a false consciousness about economic life and promote the illusions of the common disorder. "

It should be noted that the "plan of deleting three zeros from the Iraqi currency is one of the proposed projects. And confirms the economists that this project will facilitate cash transactions; because the handling of cash in Iraq is complex; due to the variation in currency exchange between the Iraqi dinar and the U.S. dollar, which could reach the cash transactions to the trillions it requires complex calculations to see the results of those transactions in the profit and loss, and others. "

The central bank Iraq has decided to restructure the local currency in order to develop the payment system in the country, and start execution of the strategic long-term, specialized to the restructuring of the local currency for the development of the payments system in Iraq.

The "International Monetary Fund calls Iraq a number of economic measures including the privatization of banks and raise the zeros three of the local currency and to meet debt and compensation is the responsibility of Iraq, if Iraq's desire to receive support the International Fund.

In the meantime, he saw an expert industrial Abdul Hassan Shammari that the deletion of zeros from the Iraqi currency is an achievement will go down to the Central Bank in the event was implemented, as announced Bank is ready to delete the zeros from the currency, and added that the step is one of the functions of strategic him.

Al-Shammari said the Agency news on Sunday: the restructuring of the currency will not affect the Industry and Trade of Iraq, but it is a good step from the central bank, which will add an achievement should the state have been implemented because they will ease a lot of effort to balance and commercial stores.

He Shammari: This topic is very important and was supposed to be implemented some time ago, indicating that we are not the only country that has raised the zeros, Turkey deleted six zeroes from the currency and has become a LL one.

The central bank announced in Earlier, his willingness to delete the zeros of the Iraqi currency, as he emphasized that this step is one of the jobs strategy of the bank, and pointed out that the new currency will contain the Kurdish language in addition to Arabic.

The adviser said the Iraqi Central Bank Governor appearance of Mohammed Saleh told Alsumaria News The "zeros that Added to the Iraqi currency during the last period, formed a cluster of large cash $ 28 trillion and 500 billion Iraqi dinars nearly five trillion paper money, "noting that" the Bank prepared the supplies all of the deletion of zeros from the currency. "

Saleh added that "the process is one of the jobs strategy of the Bank Central Iraq, "noting that" the Bank's monetary policy is based on the structure and reduce the volume of currency in a country moving to the stage of the economy. "

Salih stressed that "the project to delete the zeros have been completed and will be presented to the management of the Central Bank of Iraq during its next meeting, and then raise before the Council of Ministers to be presented to the House of Representatives for a vote, "pointing out that" the mechanisms of switching and changing the currency would be gradual preceded by campaigns to educate the citizens. "

Saleh continued that "the new currency that will be printed after the deletion of zeros will contain the Kurdish language in addition to Arabic, as well as for some pictures that refer to the heritage and cultures of Iraq and symbols of scientists and thinkers the Iraqis. "

The Iraqi Central Bank Governor Sinan Shabibi said at a meeting of independent bodies with Prime Minister Nuri al-Maliki, who held on 19 June current, ready to create all the supplies to replace the Iraqi currency.

in turn, said member the Finance Committee in the House of Representatives of Iraq, that the committee did not address so far to the question of changing the Iraqi currency.

and said Najiba Najib told the Kurdish news agency that he "had not been talking so far in the Finance Committee representative on the issue of changing the Iraqi currency, having met some time ago the Governor of Central Bank of Iraq and Minister of Finance, has not had discussions in this regard so far. "

She Najiba "The Iraqi dinar exchange rate compared with the U.S. dollar is stable at the present time, the central bank could maintain the stability of the Iraqi dinar exchange rate against the dollar."

"The change currency will not cause a rise in the value Aldenarabraghi, and there are a number of accounting measures should be taken by the central bank, in order to stabilize the dinar exchange rate, including the buying and selling bonds, and dealing with international banks in various countries

http://almadapaper.n...n=view&id=43137

Ok so here it goes. CALL ME PEE WEE since imma lil man

Anyone can find an article 2 days before supposed RV. It smoke honey. When have you ever heard of this man before.

Unfortunate that this person was just cited as speaking. How many articles have been recycled this week in reguards to dropping 3 zeros and Rd or RV.

I can appreciate your stance and will fight for you to say it. but believe I will not!!

Now. Be careful who you provoke because being a lil man (as you so politely put it) I will pull a congressman wiener on your a$$ so fast , it will fill all your INBOXES on 7 email adress's ,then we can talk about PEE WEE!!!! OK??

;d

[Midx1]

Many are worried in Iraq that the removal of the 000 will devalue the currency and it will not. They are only trying to quell those fears with this article. They also state that they can introduce lower denoms and leave the 000 notes in circulation and nothing would change which is true as well. Both the new currency and the old will have the same value. What will really confuse many is when they said that prices will not be affected. Actually they would but not really. Same as when they say the exchange rate will not be affected. The easiest way to look at it is to look at what the items being purchased are worth in USD. Say an Iraqi is buying a cig lighter for 1000 dinar worth 1 USD. After RD he will buy that lighter with 1 IQD worth 1 USD so the price of the lighter didn't change. Or he could use a 1000 dinar note which is still worth 1 USD as well. This is what they mean by prices not being affected. Same with the exchange rate. Think USD. Now 1000 dinar can be exchanged for 1 USD. The new 1 dinar can be exchanged for 1 USD. No change. This is of course if they bring the exchange rate to 1. instead of .85. If not then the 1000 IQD can be exchanged for .85 USD or the new 1 IQD could be exchanged for .85 USD.

This is what I think they are referring to in all the news articles.

What worries me about some of them is they keep using Turkey as an example of how this will change.

In which there was no RV and the higher notes were just pulled from use after a time period.

Turkey had really high inflation so maybe Iraq is different and we will make some money from this.

Still hoping.

[Brisco]

Why is anyone trying to answer this NEWBIE with no link anyway.

What a waist of time this NEWBIE has started with a nobody anyway.

[TQueezy]

Many are worried in Iraq that the removal of the 000 will devalue the currency and it will not. They are only trying to quell those fears with this article. They also state that they can introduce lower denoms and leave the 000 notes in circulation and nothing would change which is true as well. Both the new currency and the old will have the same value. What will really confuse many is when they said that prices will not be affected. Actually they would but not really. Same as when they say the exchange rate will not be affected. The easiest way to look at it is to look at what the items being purchased are worth in USD. Say an Iraqi is buying a cig lighter for 1000 dinar worth 1 USD. After RD he will buy that lighter with 1 IQD worth 1 USD so the price of the lighter didn't change. Or he could use a 1000 dinar note which is still worth 1 USD as well. This is what they mean by prices not being affected. Same with the exchange rate. Think USD. Now 1000 dinar can be exchanged for 1 USD. The new 1 dinar can be exchanged for 1 USD. No change. This is of course if they bring the exchange rate to 1. instead of .85. If not then the 1000 IQD can be exchanged for .85 USD or the new 1 IQD could be exchanged for .85 USD.

Are you reading what nonsense you are typing? "The new 1 dinar can be exchanged for 1 USD. No change. This is of course if they bring the exchange rate to 1 instead of 0.85" They just said in the article that this move isn't affecting the exchange rate or the value, so... there goes your LOP theory. To LOP you have to change the exchange rate, which will affect how the new denominations will be used also. The whole point they are making is that this is a currency replacement that in and of itself doesn't affect the exchange rate or value of the bills, meaning the old bills retain their face value of what the notes say and the new one retain their value also. So... you can still use a 1000 dinar note to buy a coke, or you can use 100 10-dinar notes. But, it's likely they'll up the exchange rate, SEPARATELY from the currency replacement, which means that the old bills will be harder to use because they'll be too big to use for daily transactions now, but could still be used for things like buying a car. Hey, 25,000 dinar note? Go buy a 25,000 car with it! Yeah, it makes sense. Stop crying that you don't understand it and just start understanding it...

[dinarella-X]

Ok so here it goes. CALL ME PEE WEE since imma lil man

Anyone can find an article 2 days before supposed RV. It smoke honey. When have you ever heard of this man before.

Unfortunate that this person was just cited as speaking. How many articles have been recycled this week in reguards to dropping 3 zeros and Rd or RV.

I can appreciate your stance and will fight for you to say it. but believe I will not!!

Now. Be careful who you provoke because being a lil man (as you so politely put it) I will pull a congressman wiener on your a$$ so fast , it will fill all your INBOXES on 7 email adress's ,then we can talk about PEE WEE!!!! OK??

;d

I believe the question at the beginning was "Who is Ahmed Ibrihi"? All I did was answer. There was no need to jump all over me and as for the little man comment I meant that intellectuality not anatomically. So as far as being like your idol, that is up to you, it didn't work to well for him. Have a nice day.

And oh by the way anyone can give themselves a +1.

[R-ational V-isionary]

Why is anyone trying to answer this NEWBIE with no link anyway.

What a waist of time this NEWBIE has started with a nobody anyway.

hey brisco,

the link was given in f'in header.... "CURRENCY NEWSHOUND!" so here's what you do. go to CURRENCY NEWSHOUND!!

idiot

[dinarck]

Are you reading what nonsense you are typing? "The new 1 dinar can be exchanged for 1 USD. No change. This is of course if they bring the exchange rate to 1 instead of 0.85" They just said in the article that this move isn't affecting the exchange rate or the value, so... there goes your LOP theory. To LOP you have to change the exchange rate, which will affect how the new denominations will be used also. The whole point they are making is that this is a currency replacement that in and of itself doesn't affect the exchange rate or value of the bills, meaning the old bills retain their face value of what the notes say and the new one retain their value also. So... you can still use a 1000 dinar note to buy a coke, or you can use 100 10-dinar notes. But, it's likely they'll up the exchange rate, SEPARATELY from the currency replacement, which means that the old bills will be harder to use because they'll be too big to use for daily transactions now, but could still be used for things like buying a car. Hey, 25,000 dinar note? Go buy a 25,000 car with it! Yeah, it makes sense. Stop crying that you don't understand it and just start understanding it...

Seems like the one who doesnt understand it is you.

Again here is how it works so you will no longer be confused. The exchange rate will not change because the new currency as well as the exsiting will be exchanged for what they are now. 25,000 can be exchanged (ok lets use actual instead of making it easy) 21.00 USD. The new 25 note will be able to exchange for 21.00 USD. Now please explain to me how the exchange rate changed since I am posting nonsense.

What I was saying about bringing it to 1 is what was hinted at by a recent article and if you knew anything about redenominations you would know that it only makes sense for them to bring it to 1 to make transactions easier. Would that change the exchange rate? Yeah. Does that mean they wont do it? No.

Anyother things you dont understand please feel free to ask.

[coolbeans]

hey brisco,

the link was given in f'in header.... "CURRENCY NEWSHOUND!" so here's what you do. go to CURRENCY NEWSHOUND!!

idiot

He's Not an idiot Currency Newshound should be in rumors as stated on the pinned post -Pinned Currency Newshound Posts 1 2

Post them in rumors The newbies have to learn the hard way. No link(s) is equal to or less than a rumor which equals rumorhound news, where Not to go for news

[TQueezy]

Seems like the one who doesnt understand it is you.

Again here is how it works so you will no longer be confused. The exchange rate will not change because the new currency as well as the exsiting will be exchanged for what they are now. 25,000 can be exchanged (ok lets use actual instead of making it easy) 21.00 USD. The new 25 note will be able to exchange for 21.00 USD. Now please explain to me how the exchange rate changed since I am posting nonsense.

What I was saying about bringing it to 1 is what was hinted at by a recent article and if you knew anything about redenominations you would know that it only makes sense for them to bring it to 1 to make transactions easier. Would that change the exchange rate? Yeah. Does that mean they wont do it? No.

Anyother things you dont understand please feel free to ask.

Good try, but...

They would never allow two freely circulating notes with different values printed on them number-wise to be worth the same amount in exchange with another currency, that would be plain ridiculous. They can't hold two exchange rates for the same currency. And saying a 25,000 dinar note IS a 25 dinar note makes no sense. They would be required to put a ban on using the 25,000 as legal tender and require those with possession of those notes to bring them in to a bank to exchange for a 25 dinar note. That's the only way a 25,000 dinar note would "BECOME" a 25 dinar note. The translation is wrong, that's not how they are doing it. By "become" they mean it will "REPLACE" over time. That's why the deadline of next May for the project to be completed. Both currencies will exist simultaneously. At different values and with the same exchange rate. If you change the currency exchange rate from 0.00085 to 1.17 against the dollar, then the 25,000 IQD note would be worth $29,250 USD.

[greenarrow]

I believe he is just saying that there will be no lop !! I may be wrong but I think that its just saying that our 25,000 note will remain at that value regardless of what happens ..

Yea, I'm with ya....5000 5 dinar notes should be worth as much as 1 25k dinar note. Wouldn't it be in the same vein as saying 100 1 dollar bills won't equal a 100 dollar bill? I definately understand wanting to get the big notes out of peoples pockets on the street......easier to buy an iraqi Big Mac & make change........(yea, I get it about BigMacs, Im just sayin')

[dinarck]

Good try, but...

They would never allow two freely circulating notes with different values printed on them number-wise to be worth the same amount in exchange with another currency, that would be plain ridiculous. They can't hold two exchange rates for the same currency. And saying a 25,000 dinar note IS a 25 dinar note makes no sense. They would be required to put a ban on using the 25,000 as legal tender and require those with possession of those notes to bring them in to a bank to exchange for a 25 dinar note. That's the only way a 25,000 dinar note would "BECOME" a 25 dinar note. The translation is wrong, that's not how they are doing it. By "become" they mean it will "REPLACE" over time. That's why the deadline of next May for the project to be completed. Both currencies will exist simultaneously. At different values and with the same exchange rate. If you change the currency exchange rate from 0.00085 to 1.17 against the dollar, then the 25,000 IQD note would be worth $29,250 USD.

UUUMMM....What? It has been done before without a hitch. Remove three zeros means just that. The three zeros on the 25,000 note are gone making it a 25 note. Doesn't seem so difficult unless your mind is telling you that your 25,000 note has a value of 25,000 something which it doesn't, it has a value of 25 USD the same as the new 25 will. You say they can't hold 2 exchange rates for the same currency and I agree. They are not the same currency but will have the same worth when the zeros are removed. The only exchange rate that will matter is that of the new note which will be either .86 or 1.00 depending on which way they go. The old note will retain it's exchange rate of .00085 or .001 until it's removal from circulation. The bottom line is what the IQD is worth and it aint worth crap. At least when the zeros are gone it will seem to have worth.

Look, we have seen articles in the past talking about the pyscological effect a RD will have on the population but I think the Iraqi population knows better than any that their 25,000 notes are not worth any more than 25 USD. Us investors cannot wrap our GO RV minds around them being worth only 25 USD even though that is how much we paid for them because we have been brainwashed into believing that someday they will be worth 25,000 USD.

Look up Venezuelas redenomination. They did excatly what you are saying is impossible.

Edited July 6, 2011 by dinarck

[TQueezy]

The only exchange rate that will matter is that of the new note which will be either .86 or 1.00 depending on which way they go. The old note will retain it's exchange rate of .00085 or .001 until it's removal from circulation.

Okay, again... that's impossible and makes no sense. You can't take a note that has legal tender in the country at the current exchange rate of 0.00085 and change the exchange rate to 0.85 for all new bills introduced and expect people to only be able to exchange the old bills, 250 and above (which is everything people have they are using right now), at the old exchange rate of 0.00085. It's not possible, or legal. You can't do that. You can only have one exchange rate worldwide for your country's currency, and if they change it to 0.85 from 0.00085, then it affects all bills, including the old ones, until they are drawn out of circulation by being exchanged at the banks. That means their face value will hold the same value, which is what they say in those articles, that the removal of the three zeros will not affect the value of the notes in any way. Read the articles again. They are telling you straight up that they will have two currencies in circulation until next May, 2012, and the value will not change on them. That doesn't mean they can't separately change the exchange rate, it just means the project to remove the 3 zeros doesn't itself change the exchange rate, which means they are introducing new currency that will co-exist with the old notes, and all the notes will hold their values. If they then up the exchange rate, which they said they would... it would affect all bills equally. They would never be allowed to keep the same old exchange rate for the old bills and a new exchange rate for the new bills. That would be impossible and no one would allow that. You're delusional if you think that's what's going to happen, and this Loss of Profit re-denomination is going to chop everyone's current standing wealth by 1000 times. No F-ing way mister. Go hide in your delusional hermit crab shell of misunderstanding if that's what you think is going to happen.