Why we can’t decrease the number on money easly?


Context i live in iraq there we have 1000 dinnsr and 250 dinnar 500 dinnar as our Currency but we use it as one dinnar half a dinnar quarter dinnar same concept same numbers so why not just remove the zeros? The transaction will be the same the about is the same why you can’t just simply remove zeros? If you act like they don’t? In the first place?

In: 1

It can easily be done, tons of countries have done it. But you need to design the new bills, get a new international code for that currency, update the banks’ databases, get new printers, etcetera.

Probably because everything is already using the actual amounts, banks, governments, thousands of different pieces of software, not to mention the physical money already out there. The real question though is why? It’s just a number, and as long as they’re consistent and relative, what’s it matter?

All the currency in circulation and everything in every bank account would need to be changed at the same time or you’d end up with problems. All of that changing is expensive so unless it’s causing problems there’s a high cost, high risk, and low reward.

Money can be swapped though. Look at the creation of the real in Brazil. There they were solving the problem of inflation so it was worth the cost and effort.

Not sure if I have your question understood but I’ll give it a shot…Because that currency is in a marketplace with other currency and if I want to by some dinnar with usd it needs to be priced correctly. Based on supply and demand. We printed a fuck ton of usd, and more than we can create services and products for. So, in essence we have a lot more money chasing fewer goods, inflation arrives. But countries and people still want usd, compared to donnar

I was studying in Russia in 1998 when they dropped three zeroes from the currency due to inflation. They basically just kept printing notes with the same design but different numbers. The 10,000 ruble note became a 10 ruble note. We often has two versions of the same note in our wallets at the same time.

The numeric value of the dollar isn’t the problem, it’s peoples faith in the dollar which drops the value.

It can be done! I was in Mexico on vacation about 20 years ago when they did just that. On Jan, the New Peso took effect, changing the exchange rate to the US $ from 5000:1 to 5:1. Old Pesos were accepted at 1/1000 face value, so a 20,000 peso bill was worth 20 New Pesos. People had like a year to swap out bills for the new ones before they stopped being accepted.

You can do that, and it does happen sometimes. It’s called “redenomination.” Last year Venezuela cut six zeroes off of their currency, for instance.

But lopping off a few zeroes doesn’t fix the underlying problems of inflation or lack of confidence in the currency, and nobody with a brain will be fooled into thinking the new currency won’t have the same problems as the old currency. A currency’s exchange rate is ultimately determined by the international demand for that currency, and there is almost no demand for Iraqi dinars because Iraq’s only major export is oil, which is traded in dollars.

Chopping off zeroes may make life a little more convenient for Iraqis (although I imagine it’s relatively low on your list of priorities) but it’s unlikely to be worth the hassle and cost of changing it.