Redomination and revaluation are two distinct concepts. Redomination involves removing three zeros from a currency, meaning a 25,000 dinar note would simply become worth approximately 25. This process is considered neutral in nature. It is sometimes colloquially referred to as a ‘lop’ because of the way the zeros are eliminated. In this scenario, no profit is generated. Currently, Iraq’s inflation rate stands at around 3%, while Kuwait’s is approximately 2.5%. If Iraq’s inflation were spiraling out of control, redenomination would likely be the chosen approach. However, if the intention was solely to remove the three zeros, this could have been easily accomplished over the past 23 years, yet it has not been done. This suggests that there has been a long-term strategy in place to ensure that the notes we possess hold significant value.
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