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Restructuring of Iraqi Currency


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2 hours ago, ChuckFinley said:

Hey Wiljor congratulations. Hoping for a big August for you and your wife.   

 

Thanks Chuck, yep, can't complain,  everyday is a great day with this gal, especially after 4 kids and 2 are twins :P 

A super week out to ya brother :tiphat:

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On 8/14/2017 at 4:47 PM, SnowGlobe7 said:

OK this is funny. I am not one to visit psychics but they were giving free readings a the mall over the weekend.. They tried to get me to sit down but I  refused and went on my way...we came back and again they tried...I refused. Finally as I was walking away she yelled at me that when I get my money to finally after all these years in August to remember her. I turned around and she said AUGUST and I just turned around and kept walking. Frankly it was a little creepy but when I turned around and she looked me right in the eye and said AUGUST over her glasses I stopped breathing...and I do not get like that very often

 

No proof  I just remembered this tread right after she said that.

 

For what it is worth..there you go

Ok! Now that would have downright freaked me out. :lol::huh:

21 hours ago, Wiljor said:

This month happens to be our wedding anniversary, so an August RV works for me :twothumbs: 

:praying: to make it so. 

Mine too, and on the day of the e-clips no less. 

I pray that you and your beloved have the most wonderful anniversary ever. :tiphat:

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1 hour ago, ladyGrace'sDaddy said:

Ok! Now that would have downright freaked me out. :lol::huh:

Mine too, and on the day of the e-clips no less. 

I pray that you and your beloved have the most wonderful anniversary ever. :tiphat:

 

Back at ya LGD, Mrs Wiljor and me send you both the warmest and joyest wishes and may you be eternally blessed with love and happiness, in this life and the next 💞

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  • 1 month later...
On 8/7/2017 at 7:17 PM, ladyGrace'sDaddy said:

So if you wish to know if they intend to L O P all you need to do is research what the economic effect doing that had on other nations. 

It won't take you long to figure out that even a Arab isn't stupid enough to think that would be a good thing. 

 

I think the info below shows that another country thought it was a good thing.

Iraq's neighbor, Turkey cut off 6 zeros!

I spent some time investigating Turkey's solution to their 6 zeros problem:

 

Turkey's Money Loses Its Zeros

 

With the new year, Turkey got a new currency with a lot fewer zeros on it. The New Turkish Lira marks an end to decades of hyperinflation that, before the changeover, had a simple latte costing around four million.

default

Turkey's money has shed some of those pesky digits

The new money looks quite like the old. The colors of the bills haven't changed and a picture of the founder of the modern Turkish state, Mustafa Kemal Atatürk, still graces both notes and coins. But what's missing are the six zeros on every bill, which meant almost everyone in Turkey was a millionaire or billionaire, even if they weren't rich.

Währungsreform in der Türkei Premierminster Recep Tayyip Erdogan

Turkey's Prime Minister Recep Tayyip Erdogan

"We are very happy to have rid Turkey of such a shame, of multi-zeroed banknotes," Prime Minister Tayyip Erdogan told reporters after he drew some of the new currency from a bank machine. "We are happy to reinstate the dignity of the Turkish lira."

The sky-high denominations of Turkey's old money -- the smallest coin in general circulation was worth 50,000 -- was something of a national disgrace for the country, representing out-of-control inflation and repeated economic crises. During the 1950's, one dollar was worth 2.8 lira. But at the end of 2004, 1,350,000 lira were necessary to buy one greenback. In 2001, during one of Turkey's worst-ever economic meltdowns, inflation hit 70 percent.

"The Turkish lira has been like funny money … and now at least in cosmetic terms it will look like a real currency," Tevfik Aksoy, chief economist in Turkey for Deutsche Bank, told the Associated Press.

Währungsreform in der Türkei Neue Münzen Türkische Lira

Copies of Turkey's new coins

By chopping off the six zeros, coins, long almost worthless, will come back into widespread use. A small container of orange juice that once cost 1,900,000 lira will now put customers back 1.90 new Turkish lira.

Economic turnaround

While a new currency has been a Turkish goal for years, the government only put a transition program into effect last year, since for the first time in decades, the inflation level returned to single-digit territory, 9 percent.

Behind the change is Turkey's astonishing economic progress over the past few years, helped along by the country's sticking to a $16 billion (€12 billion) austerity plan put together by the International Monetary Union. It was one of the factors that helped convince EU leaders in December to open up accession talks with the mainly Muslim country this coming October.

Grappling with the new

Shoppers first got a taste of the new currency on New Year's morning, and many seemed amazed by the small denominations.

"I'm a little bit confused about the whole thing," said one woman. "I'm so used to the six zeros."

Währungsreform in der Türkei

Cooks prepare food under signs that show prices in both old and new Turkish lira.

But according to financial experts, the transition has gone over fairly smoothly. Prices in both the old and new lira will be posted in stores and consumers can still use the old-style money for a year.

While there aren't any firm accusations of price gouging yet, some sellers are using the transition to raise their prices. It recalls widespread perceptions in Europe that many retailers did the same during the transition to the euro in 2002. "Before we sold (these necklaces) for two and a half. Now we'll ask for three," said one grinning seller at an Istanbul market. "It's not a price hike, they were just too cheap before."

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4 hours ago, DWS112 said:

Turkey got a new currency with a lot fewer zeros on it. The New Turkish Lira marks an end to decades of hyperinflation

As has been discussed for many yrs here, this is something that is done when a country faces, "HYPERINFLATION". And then it will work perfectly as it is planned to. For Turkey it has been a good deal. 

But Iraq is not suffering from hyperinflation. In fact it has little inflation at all. 

 

https://tradingeconomics.com/iraq/inflation-cpi

 

Iraq Inflation Rate  2005-2017 | Data | Chart | Calendar | Forecast | News

The inflation rate in Iraq was recorded at 1 percent in April of 2017. Inflation Rate in Iraq averaged 11.62 percent from 2005 until 2017, reaching an all time high of 76.55 percent in August of 2006 and a record low of -6.37 percent in October of 2009.

While the rate of inflation for Turkey during the same period was 

https://tradingeconomics.com/turkey/core-inflation-rate

 

Turkey Core Inflation Rate  2004-2017 | Data | Chart | Calendar | Forecast

Core Inflation Rate in Turkey increased 9.60 percent in July of 2017 over the same month in the previous year. Core Inflation Rate in Turkey averaged 7.22 percent from 2004 until 2017, reaching an all time high of 12.09 percent in January of 2004 and a record low of 2.50 percent in October of 2010.

 

You delete the zeros when suffering from Hyperinflation and Iraq has almost no inflation at all. So comparing the two is like comparing apples and oranges.

I'm no expert by any means but I can say that in 2004, Turkey was suffering from severe inflation, and while the L O P may have been a good fix at the time it most certainly hasn't solved the issues with what originally caused the Hyperinflation to begin with. 

 

Imagine every year that you went to the store to buy groceries they would cost,"9.6%", more. Not good.

And that is just the very beginning of this kind of discussion, there are so many variations that are far more microbial in the understandings of Macroeconomics that would clearly show how that Iraq and Turkey have two entirely different economies. :tiphat: 

 

 

 

 

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28 minutes ago, ladyGrace'sDaddy said:

You delete the zeros when suffering from Hyperinflation and Iraq has almost no inflation at all

 

Thanks LGD

 

Iraq has been saying they are going to delete the zeros and they are not suffering from Hyperinflation. Hyperinflation is not the issue. The deletion results from Turkey's actions are the same as the CBI's results as it pertains to this post:

 

Turkey: " A small container of orange juice that once cost 1,900,000 lira will now put customers back 1.90 new Turkish lira."

 

Iraq CBI:  "As long as the amount of new smaller numbered money covers the trading of the same amount of products"

 

The result is the same. This fact is all I am trying to provide.

 

 


 

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7 hours ago, DWS112 said:

 

Thanks LGD

 

Iraq has been saying they are going to delete the zeros and they are not suffering from Hyperinflation. Hyperinflation is not the issue. The deletion results from Turkey's actions are the same as the CBI's results as it pertains to this post:

 

Turkey: " A small container of orange juice that once cost 1,900,000 lira will now put customers back 1.90 new Turkish lira."

 

Iraq CBI:  "As long as the amount of new smaller numbered money covers the trading of the same amount of products"

 

The result is the same. This fact is all I am trying to provide.

 

 


 

I see your point and it's a legitimate one at that. But then I see articles like this one and have to ask, 

if all they intend to do is delete the zeros and make the dinar one to one why is, "Hording", an issue? 

 

CENTRAL BANK TO TACKLE HOARDING OF IRAQI DINARS

I would love to read your thoughts on that. 

 

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3 hours ago, ladyGrace'sDaddy said:

I see your point and it's a legitimate one at that. But then I see articles like this one and have to ask, 

if all they intend to do is delete the zeros and make the dinar one to one why is, "Hording", an issue? 

 

CENTRAL BANK TO TACKLE HOARDING OF IRAQI DINARS

I would love to read your thoughts on that. 

 

And if all Iraq intends to do is LOP their currency, why haven't they done it years ago!!! They could have just done a lop easily years ago!!

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1 hour ago, GregHi said:

And if all Iraq intends to do is LOP their currency, why haven't they done it years ago!!! They could have just done a lop easily years ago!!

Exactly my point, with Turkey there were no studies, there was no educating the population. They simply decided one day to remove the zeros, six of them, from their currency. Such a thing requires no studies.

 

And while Iraq has said the same things as Turkey did in some articles, what they are more concerned about is their," chunky money" and the education of the population in what they're about to do.

 

For me, at least, this shows there is clearly something different in the intentions of the Central Bank of Iraq then that of Turkey.

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Just my opinion...but some country make loop step just for a nationality pride...such as my country indonesia, our inflation is under control but we did suffer hyperinflation before and make the currency even worst than iraqi dinar..now our government have a plan to do redenomination to make our currency looking good, sorry for bad english im not used to it

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  • 3 weeks later...
On 9/18/2017 at 12:57 AM, ladyGrace'sDaddy said:

CENTRAL BANK TO TACKLE HOARDING OF IRAQI DINARS

I would love to read your thoughts on that.

Hi LGD,

I've been musing about the issue after finding this post about the CBI restructuring the iraqi currency.

If I was the CBI Governor, how would I tackle the hoarding of the Iraqi dinars?

1. I would make the new lower denoms more valuable than the old 3 zero notes we hold.

2. The old would still be good to use for 10 years, but... "only in country.

3. The new currency would be the exchange / international currency

This is how I see a way to get the tons of currency back into the hands of the CBI.

 

I think I read an article about this happening, but I can't find it now. All this is just my opinion. Thanks for asking.

 

 

 

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1 minute ago, Botzwana said:

Well good.  It just seemed by your last summation that perhaps we were going to get lopped, or not have any value to our notes.

 

Sorry,

This post points to the strong suggestion that the currency will be lopped. The source is a CBI pdf dated back to 2012 and referenced on the new CBI website.

 

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  • 1 month later...
On 10/10/2017 at 9:19 AM, Starrider said:

Nan I'm looking for an update on the FLASH hows he doing I know you to talk on the side.  Just Wondering

Hi star, Im sorry for my delay in getting back to you.  I have been traveling and had no net to speak of and havn't logged in.   I tried to contact him multiple times and got no response...Hope he is ok miss him much

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7 hours ago, stangernan said:

Hi star, Im sorry for my delay in getting back to you.  I have been traveling and had no net to speak of and havn't logged in.   I tried to contact him multiple times and got no response...Hope he is ok miss him much

I just called his sister in Tennessee for an update and I was told that he blew his back out (L1,L2,L3 to L4 & L5 to S1) moving Dan's thing's out of the house so the family can maybe move on a little sooner with Holidays and all. His surgery (#5) will be December 7th. I know he hasn't even returned any of my emails or text. So I'll try to get in contact with his girls to see how he's doing after the 7th.

Dianne

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2 hours ago, Starrider said:

I just called his sister in Tennessee for an update and I was told that he blew his back out (L1,L2,L3 to L4 & L5 to S1) moving Dan's thing's out of the house so the family can maybe move on a little sooner with Holidays and all. His surgery (#5) will be December 7th. I know he hasn't even returned any of my emails or text. So I'll try to get in contact with his girls to see how he's doing after the 7th.

Dianne

Thank you for the update I had seen your post last month about what happened and Im heart broken for everyone :(  Im hoping him a speedy recovery after his surgery and praying all goes well

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