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"Three Zeros"

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"Three Zeros" Empty "Three Zeros"

Post by AK Trucker on Sun Apr 29, 2018 2:55 pm

I have been learning about the dinar a little over three years.  One consistent thread of discussion has been the project to remove the "three zeros".  I find no discussion which explains what three zeros everyone is talking about.

Most commentators propose the three zeros are the three zeros on the face of the 50,000, 25,000, 10,000, 5,000 and 1,000 notes.  I am not convinced that is correct.  It seems the more rational definition is that which removes the three zeros from the mathematical result of dividing 1 USD by the market number of dinar.

For example:

1 USD/1190 dinar =  .00084

1 USD/.00084 = 1190.48

Following this analysis, reducing the "three zeros" by gradual reduction renders this result (examples):

1 USD/.0084 = 119.048 Dinar (One zero removed)
1 USD/.084   = 11.9048 Dinar (Two zeros removed)
1 USD/.84     = 1.19048 Dinar (Three zeros removed)

This is what I call the "exchange-value" approach.

Removing zeros from the face value of the notes renders a slightly different result (face-value approach):

Removing three zeros from the currency face value shifts automatically to a 1:1 ratio.

This analysis renders a .19048 difference in the exchange rate analysis.  Using this approach, exchanging 1 million dinar, the following analyses render these difference:

1,000,000 Dinar x .80952 =  809,520 USD (exchange-value approach)

1,000,000 Dinar x 1 USD = 1,000,000 (face-value approach)

The difference in exchange rates using these different approaches displays a nearly 20 percent difference.  I'm not a banker, but I'm thinking that no banker would use the "face-value" approach to the "three zeros" project.

If anyone out there has some authoritative resource that defines the "three zeros", please let me know.

AK Trucker
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"Three Zeros" Empty Re: "Three Zeros"

Post by RamblerNash on Sun Apr 29, 2018 3:59 pm

Removing the "Three Zeros" is the redomination project they have talked about for years.

A 25,000 IQD note is worth approximately $21 USD.

When they remove the "Three Zeros" the new notes (which nobody has) will be 25, if that's the number on the note they choose to use. It may be a 20 + 5.

So...The old "Three Zero" notes, which folks have, will still be worth approximately $21 USD and the new notes, that nobody has, will be worth approximately $21 USD.

The CBI has said that they will use both types of notes for 10 years after the new ones come out.

You won't see the new ones until they start the campaign introducing them. i.e. Let the Iraqis know with news articles...

Thinking that the old notes are going to be worth more, is a bunch of horse hooie from the Gurus and spread throughout Dinarland.

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