It's All About The Zeros

When the Iraqi dinar investment scam began shortly after the IQD was introduced in late 2003, the anticipated revaluation was peanuts compared to what people were predicting five years later or more.  A dime was about all that most hoped for, but a few bold souls dared to argue for an RV to the value of Saudi Arabia’s currency at a little under 30 cents.

When the articles on “deleting three zeros” began to appear in 2009, the dinar dealers and dinar pumpers were in a tight spot.  How do we keep selling dinar when Iraq is talking about doing a redenomination?  The solution they came up with was devious but effective.  They would tell dinarians that “deleting three zeros” doesn’t mean redenomination.  It means that the three zero notes will be “deleted” (or removed) from circulation.  All the references to removing three zeros were referring to the larger denominations of 1K, 5K, 10K, and 25K notes that would be withdrawn from circulation after the RV.  (They somehow overlooked the fact that the 10K note actually has four zeros rather than three, but nobody seemed to notice.)  The new bills that they introduce will be lower denominations of 1, 5, 10, 20 … etc. just like the US dollar.  It also means that they will remove three zeros from the value of $.00086, which will produce a new value of 86 cents, again in a revaluation rather than a redenomination.

Although this explanation didn’t fly with some nervous dinarians, the vast majority seemed to embrace the idea, and the thought of experiencing a 100,000% increase instead of a measly 10,000% sent dinar sales into overdrive, increasing exponentially in 2010 and 2011 as a result.  Dinar dealers and pumpers were thrilled, and they decided that since this scheme worked so well with the dinar, they might as well use it for other currencies.

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https://iraqcurrencywatch.com/2016/10/03/its-all-about-the-zeros/

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