Removing zeros and revaluing the Iraqi dinar

Removing zeros and revaluing the Iraqi dinar
⁠link to My FX Buddies Blogpost ⁠ https://www.myfxbuddies.com/2024/10/removing-zeros-and-revaluing-iraqi-dinar.html

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Transcript at https://rss.com/podcasts/myfxbuddies/

The concepts and scientific names in economics differ according to the specialization and the branches derived from it. When talking about the exact specialization, economic variables must be named by their scientific names. One of these names is the term redenomination, or as it is called (removing zeros from the currency). Countries usually resort to it to address rampant inflation and the decline in the value of the local currency, as the old currency is replaced with a new currency at a fixed price by removing at least 3 zeros from the old currency.
Currency revaluation becomes necessary when it comes to hyperinflation because it takes a very large number of old banknotes to facilitate trade, especially in local markets, and small banknotes become useless, as an individual needs millions of banknotes to buy simple or necessary household or food needs, an example of this is what happened in 2006 when Zimbabwe renamed its currency at a rate of (1000 old Zimbabwe dollars) for a new Zimbabwe dollar.