Iraq planning to revamp currency

[blonde_minx]

from another sire

Currency** News** Hound

BAGHDAD: Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said yesterday.

Central Bank deputy governor Mudher Kasim said he expected the new currency to be used in the market in three years and it would have no impact on inflation.

“This will facilitate the payments system … instead of carrying a lot of money, we will carry less. This is an important reform,” Kasim said.

[easyrider]

theres that word again for the past 3-4 articles they are now saying nominal value not exchange rate. What is the difference someone help me out here?

Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said yesterday.

if what i think this means the rate would more than likely be .86 cents.

.00086=nominal value then knocking off the three zeroes for easier transaction makes perfect sense to me.

Edited August 9, 2011 by easyrider

[Theflyingbird]

Man these articles that are coming out lately are so confusing.

[2fast4u2c]

Easy....nominal value; is the value of the dinar itself. Unfortunately this verbiage is pushing me over the edge with RD then RV

[easyrider]

Easy....nominal value; is the value of the dinar itself. Unfortunately this verbiage is pushing me over the edge with RD then RV

i understand but you really cant read too much into these articles i am so confused as how they are wording them now they are using nominal instead of exchange rate. Something is very fishy.

[2fast4u2c]

I would love to be wrong....

I agree it is fishy.

[tim5400]

3 years......ill be back in three years.......

[Francie26]

I pray this is right. Right today, that is. lol At .86 I'm cashing in and moving on. I'm sick and tired of being glued to this computer. I still have a life to live, and I need to get started as soon as I can afford to do it, and .86 would do that just fine.

[tim5400]

cant wait im back

[Retiredofficer]

Someone gave someone a thesaurus over there; and now we have to pay the consequences of deciphering some think smoke.

[tim5400]

im sure these journalists over there are just rewriting articles from the previous week cuz there is NO NEWS there JMO

[sassytexan]

from another sire

Currency** News** Hound

BAGHDAD: Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said yesterday.

Central Bank deputy governor Mudher Kasim said he expected the new currency to be used in the market in three years and it would have no impact on inflation.

“This will facilitate the payments system … instead of carrying a lot of money, we will carry less. This is an important reform,” Kasim said.

The distinction between real value and nominal value occurs in many fields. From a philosophical viewpoint, nominal value represents an accepted condition which is a goal or an approximation as opposed to the real value, which always is actually present. Often a "nominal" value is "de facto" rather than an exact, typical, or average measurement.

In measurement, a nominal value is often a value existing in name only[1]; it is assigned as a convenient designation rather than calculated by data analysis or following usual rounding methods. The use of nominal values can be based on de facto standards or some technical standards.

All real measurements have some variation depending on the accuracy and precision of the test method and the measurement uncertainty. The use of reported values often involves engineering tolerances.

One way to consider this is that the real value often has the characteristics of an irrational number. In real-world measuring situations, improving the measurement technique will eventually begin yielding unpredictable least significant digits. For example, a 1 inch long gauge block will measure to be exactly 1 inch long until the measuring techniques reach a certain degree of precision. As techniques improve beyond this threshold, it will become clear that 1 inch is not the real value of the gage block length, but some other number that is always out of reach.[

In economics, nominal value refers to a value expressed in money terms (that is, in units of a currency) in a given year or series of years. By contrast, real value adjusts nominal value to remove effects of price changes over time. For example, changes in the nominal value of some commodity bundle over time can happen because of a change in the quantities in the bundle or their associated prices, whereas changes in real values reflect only changes in quantities.

Real values over time are a measure purchasing power net of any price changes over time. They are often used for restating nominal income to real income, thus adjusting that part of income changes that merely offset inflation (a general increase in prices). Similarly, for aggregate measures of output, such as gross domestic product (GDP), the nominal amount reflects production quantities and prices in that year, whereas real amounts in different years reflect only changes in quantities. A series of real values over time, such as for real GDP, measures relative quantities over time expressed in prices of one year, called the base year (or more generally the base period).

In a related fashion, the real value of a commodity bundle in a given year may be derived from its nominal value by replacing then-current prices of commodities in the bundle with prices that prevailed in the base year. Real values in different years then express values of the bundles as if prices had been constant for all the years, with any differences due to differences in underlying quantities.

The nominal value of a commodity bundle in a given year may be expressed in prices and quantities, namely, as a sum of prices times quantities for the different commodities in the bundle. In turn nominal values are related to real values by the following arithmetic definition:

nominal value / real value = P x Q / Q = P.

Here P serves as a price index, and Q serves as a quantity index of real value. In the equation, P is constructed to equal 1.00 in the base year. Alternatively, P can be constructed to equal 100 in the base year:

(nominal value / real value) x 100 = P.

The nominal/real value distinction can apply not only to time-series data, as above, but to cross-section data varying by region, for example a cost-of-living index.

[mrref]

cant wait im back

The distinction between real value and nominal value occurs in many fields. From a philosophical viewpoint, nominal value represents an accepted condition which is a goal or an approximation as opposed to the real value, which always is actually present. Often a "nominal" value is "de facto" rather than an exact, typical, or average measurement.

In measurement, a nominal value is often a value existing in name only[1]; it is assigned as a convenient designation rather than calculated by data analysis or following usual rounding methods. The use of nominal values can be based on de facto standards or some technical standards.

All real measurements have some variation depending on the accuracy and precision of the test method and the measurement uncertainty. The use of reported values often involves engineering tolerances.

One way to consider this is that the real value often has the characteristics of an irrational number. In real-world measuring situations, improving the measurement technique will eventually begin yielding unpredictable least significant digits. For example, a 1 inch long gauge block will measure to be exactly 1 inch long until the measuring techniques reach a certain degree of precision. As techniques improve beyond this threshold, it will become clear that 1 inch is not the real value of the gage block length, but some other number that is always out of reach.[

In economics, nominal value refers to a value expressed in money terms (that is, in units of a currency) in a given year or series of years. By contrast, real value adjusts nominal value to remove effects of price changes over time. For example, changes in the nominal value of some commodity bundle over time can happen because of a change in the quantities in the bundle or their associated prices, whereas changes in real values reflect only changes in quantities.

Real values over time are a measure purchasing power net of any price changes over time. They are often used for restating nominal income to real income, thus adjusting that part of income changes that merely offset inflation (a general increase in prices). Similarly, for aggregate measures of output, such as gross domestic product (GDP), the nominal amount reflects production quantities and prices in that year, whereas real amounts in different years reflect only changes in quantities. A series of real values over time, such as for real GDP, measures relative quantities over time expressed in prices of one year, called the base year (or more generally the base period).

In a related fashion, the real value of a commodity bundle in a given year may be derived from its nominal value by replacing then-current prices of commodities in the bundle with prices that prevailed in the base year. Real values in different years then express values of the bundles as if prices had been constant for all the years, with any differences due to differences in underlying quantities.

The nominal value of a commodity bundle in a given year may be expressed in prices and quantities, namely, as a sum of prices times quantities for the different commodities in the bundle. In turn nominal values are related to real values by the following arithmetic definition:

nominal value / real value = P x Q / Q = P.

Here P serves as a price index, and Q serves as a quantity index of real value. In the equation, P is constructed to equal 1.00 in the base year. Alternatively, P can be constructed to equal 100 in the base year:

(nominal value / real value) x 100 = P.

The nominal/real value distinction can apply not only to time-series data, as above, but to cross-section data varying by region, for example a cost-of-living index.

THANKS FOR THE POST, BUT COULD YOU LIKE EXPLAIN WHAT YOU JUST SAID IN LAYMEN TERMS????? THANKS

[Maserati]

You mean my boy Tarik Aziz. He was the best at what he did.

He could give the White House lessons on how to spin something dull and make it sound explosive.

"If the U.S. attacks Iraq your children will drown in a pool of blood!" or something like that.

Gotta give him credit on his creative descriptions!

Didn't they hang him???

[Alex38]

I don't like "IN 3 YEARS".... that part is what bothers me.

[Dalite]

The Program Rate of 1170:1 is an artificial rate that the CBI uses to manage inflation.

I think everyone believes the Dinar is, or should be worth Much more..

Nominal would refer to Program Rate that Shabibi has successfully used to balance inflation, based on the amount of Dinar the CBI is responsible for.

But the actual rate has been projected to rise in value as the money supply is contracted..

We are all hoping that Shabibi manages that process to everyone's benefit..

Edited August 9, 2011 by Dalite

[pureau79]

theres that word again for the past 3-4 articles they are now saying nominal value not exchange rate. What is the difference someone help me out here?

The NOMINAL value is not necessarily the REAL value, just as the REAL value may not be the exchange rate. It's rather like saying that nominal wages are up, but the real value of those wages is down because inflation has outpaced the growth of your income. Your buying power is less but you're making more money than ever before...

[Realdinar]

Iraq is planning.....evidently thats all they know how to do. 8 years of it.

I guess their legacy will go down as ...

" I contributed to the rebuilding of the great Iraq, by planning....for 8, 9, 10 years, by god. Nothing was accomplished, but I can really plan."

[4Horsn2]

[Biker]

RI RV who gives a good Dump, just rv or ri allready.

[rv_hunting]

doesn't look promising. RD then RV it is....

[DrSC]

Traldinar,sond very much like Obama!

[HopefulTxn]

theres that word again for the past 3-4 articles they are now saying nominal value not exchange rate. What is the difference someone help me out here?

Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said yesterday.

Nominal value is simply the face value of the note (ie. 25,000, 10,000, etc). When they say remove three zeros from the nominal value, it is basically the same as saying 25,000 would be 25.

nominal value - 1 of 1 thesaurus result

Main Entry: face value

Part of Speech: noun

Definition: apparent worth of something

Synonyms: face, maturity value, nominal value , par value, stated value

http://thesaurus.com/browse/nominal+value

If they were to say remove three zeros from the market value or something along those lines it would be far more encouraging.

[Zelda]

I'll take .86!!!!

[eileen]

theres that word again for the past 3-4 articles they are now saying nominal value not exchange rate. What is the difference someone help me out here?

Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said yesterday.

if what i think this means the rate would more than likely be .86 cents.

.00086=nominal value then knocking off the three zeroes for easier transaction makes perfect sense to me.

Me too, I will take .86 cents allllllllllll day longggggggggggggg! Hurry-up and RV!