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Delete the zeros and revalue the Iraqi dinar
Economical 10/23/2024
Ali Daadoush
Scientific concepts and nomenclature in economics vary according to the specialization and branches derived from it.
When talking about precise specialization, it is necessary to name economic variables by their scientific names, and one of these names is the term
renaming the currency (Redenomination) or as it is called
(deleting zeros from the currency), and countries usually resort to it
to deal with runaway inflation and the decline in the value of the local currency, as
it is replaced by Exchange the old currency into a new currency at a fixed price by deleting at least 3 zeros from the old currency.
Currency revaluation, when it comes to hyperinflation, becomes necessary; Because it requires a very large number of old banknotes to facilitate trade exchange, especially in local markets, and small banknotes become useless, as
the individual needs millions of banknotes in exchange for purchasing simple or necessary household or food needs, and
an example of this is what happened in the year. 2006 when Zimbabwe renamed its currency at the rate of old (1000 Zimbabwean dollars) to a new Zimbabwean dollar. In addition,
(deleting zeros from the currency) may also occur when a country joins a monetary union, as happened in the eurozone, and begins using a currency such as the euro instead of its local currency.
When the euro was introduced in 1999, member states used the new currency for the first time.
Once in electronic payments and accounting, it then switched from its local banknotes and coins to the euro in 2002.
There are several reasons behind renaming the currency (deleting the zeros), and they can be summarized as (
controlling inflation,
trade and economic facilitation,
political factors such as changing governance, for example, as well as technical considerations such as
modernizing financial systems, which are usually part of a larger project to modernize financial systems in the country. The state, such as
converting to new digital systems for dealing with currency). From what has been reported, we find that
(deleting zeros) is not carried out randomly, but rather
is implemented after a comprehensive study of the economy and the challenges it faces,
and must be accompanied by other economic and financial measures to protect the economy from financial fluctuations, and
therefore, renaming the currency is a complex decision that requires study. Comprehensive of the country's economy and politics, and must be implemented while minimizing potential negative impacts on the economy and citizens.
https://alsabaah.iq/104624-.html
Economical 10/23/2024
Ali Daadoush
Scientific concepts and nomenclature in economics vary according to the specialization and branches derived from it.
When talking about precise specialization, it is necessary to name economic variables by their scientific names, and one of these names is the term
renaming the currency (Redenomination) or as it is called
(deleting zeros from the currency), and countries usually resort to it
to deal with runaway inflation and the decline in the value of the local currency, as
it is replaced by Exchange the old currency into a new currency at a fixed price by deleting at least 3 zeros from the old currency.
Currency revaluation, when it comes to hyperinflation, becomes necessary; Because it requires a very large number of old banknotes to facilitate trade exchange, especially in local markets, and small banknotes become useless, as
the individual needs millions of banknotes in exchange for purchasing simple or necessary household or food needs, and
an example of this is what happened in the year. 2006 when Zimbabwe renamed its currency at the rate of old (1000 Zimbabwean dollars) to a new Zimbabwean dollar. In addition,
(deleting zeros from the currency) may also occur when a country joins a monetary union, as happened in the eurozone, and begins using a currency such as the euro instead of its local currency.
When the euro was introduced in 1999, member states used the new currency for the first time.
Once in electronic payments and accounting, it then switched from its local banknotes and coins to the euro in 2002.
There are several reasons behind renaming the currency (deleting the zeros), and they can be summarized as (
controlling inflation,
trade and economic facilitation,
political factors such as changing governance, for example, as well as technical considerations such as
modernizing financial systems, which are usually part of a larger project to modernize financial systems in the country. The state, such as
converting to new digital systems for dealing with currency). From what has been reported, we find that
(deleting zeros) is not carried out randomly, but rather
is implemented after a comprehensive study of the economy and the challenges it faces,
and must be accompanied by other economic and financial measures to protect the economy from financial fluctuations, and
therefore, renaming the currency is a complex decision that requires study. Comprehensive of the country's economy and politics, and must be implemented while minimizing potential negative impacts on the economy and citizens.
https://alsabaah.iq/104624-.html
