The cancellation of 3 zeros of Banknotes

[Darin]

Keep and dalite, What are your professional and educational backgrounds? Everyone understands your position on the rv,ri, rd etc... Why do you feel the need to constantly defend your position? I think that anything "could" happen and you both make valid statements. my concern is that you force feed your LOP opinion in so many threads, I wonder what your agendas are?

Not sure what their backgrounds entail, but when they convinced me to sell my IQD back to dealers

For one shipment I entered "ucanKEEPM" in the coupon code and got 10% above what I was expecting.

For another shipment, I entered "inowcDALITE" and also got an additional 10% above what I was expecting.

Weird, right??

LOL!!!

[teddyruxbin]

The cancellation of 3 zeros of Banknotes

Date: Sunday 31-07-2011 08: 27 PM

Baghdad-Nasir Al-Hassun

The Iraqi Central Bank declared انتهاءه to prepare a plan to replace the current banknotes following the cancellation of 3 zeros,

Includes 30 trillion dinars (26 billion dollars) is the value of the cash block expected, confirming that the timing will be determined by the government and the parliament. The expert explained the first at the Central Bank of Iraq the Mohammed Saleh, the replacement of the currency, and responded to fears of the big corruption during the operation. He said: "The current problem lies in the issue of the timing of the replacement should be chosen as the date for the implementation of the project work without obstacles," he said.

Earlier, the central bank has announced his intention to raise three zeros of the Iraqi dinar, after suffering from inflation and in nineties of the last century as a result of economic sanctions, فتراجعت of the world to today about 1120 dinars to the dollar. The central bank was adopted in 2003 after a new mechanism to maintain the exchange rate of the dinar, lies in the development of the foreign exchange auction to sell quantities of dollars, resulting from the sale of oil on the international market, to the development fund for Iraq, which, in turn, would convert bank for sale in local currency, which helped to raise the value of the dinar in the last few years by more than 2000 points.

"Saleh estimated the size of the money in circulation or the volume of cash flow of more than 30 trillion Iraqi dinars, which is equal to 26 billion US dollars," he said. He said: " The system of cash transactions in Iraq a year after 2003, he became مدولرا, that is, the market deal dinar and the dollar as well, which means that there is a critical mass circulated in the market but foreign currency." Saleh said: " We have in the digital divide that the Iraqi or the the money in circulation inside, which will be replaced after the cancellation of الاصفار will be in the range of 30 trillion dinars, but value against foreign currencies to be stable for the rest. Any that the exchange rate of the Iraqi dinar would equal 1200 dinars to one dollar, " he said. On the most important variables that will be following the adjournment of الاصفار, between the appearance that " the central bank firm to draw up a plan to rearrange the currency to reduce the number of banknotes in circulation, this is positive. Here would be the Iraqi payments easier."

Economists had warned that the process of replacing the Iraqi currency, following the adjournment of الاصفار by ستشوبها the corruption of the great due to inaccurate Iraqi banks. They stressed that the replacement of the former currency were accompanied by the big corruption cost the Iraqi economy a lot. But the appearance of Saleh answers by saying that "the process of replacing the currency in 2004, have taken place in exceptional circumstances, and the country is under occupation by the US civilian governor, and this was a successful operation," he said.

The central bank sells through مزاده, daily of between 150 million and $190 million on a daily basis to its customers of private banks, money, go to a large proportion of كحوالات to foreign trade foreign trade.

The Central Bank expert said that " the application of the new draft to lift three zeros of the Iraqi dinar and the replacement of the currency, will take place according to Hierarchical mechanisms and in the form of not felt by the citizen, are the amounts in the market and is in the governmental banks of the replacement, and only available to the citizen's daily circulation, and can conduct transactions currencies i.e., current and new, فسلعة the current price, for example, 1000 of customers will be able to give the seller the present paper the 1000 Dinars as well as be able to give him new cash currency the dinar one."

He pointed out that "central" used by countries adopted the same procedure such as Turkey and Romania, as well as experts from the IMF.

http://www.almowatennews.com/news_view_24131.html

I swear....do they put the same article into an article spinner and come up with 10 different versions to purposely confuse people.

[Dalite]

Keep and dalite, What are your professional and educational backgrounds? Everyone understands your position on the rv,ri, rd etc... Why do you feel the need to constantly defend your position? I think that anything "could" happen and you both make valid statements. my concern is that you force feed your LOP opinion in so many threads, I wonder what your agendas are?

I have no agenda, other than sticking around until the end of the ride.

I have no special educational advantage, other than enjoying learning about economics so I can better understand and predict trends or eventualities.

I mostly try to answer questions, to the extent of my ability.

I don't have to defend anything, other than the value of education and the need to remain rooted in reality enough to understand the possibilities.

Shabibi and the CBI are creating the press releases. no one here is writing them for the CBI.

I have grown fond of the site, and as one who hosted Dial Up BBS information exchanges from the mid 80 s through mid 90 s, I can appreciate a healthy discussion forum.

I have been involved in online discussion forums in a myriad of different subjects since the days of CompuServ.

As long as there so many misconceptions about ReDenomination, I will probably try to answer any questions that I am able to.

It is a fairly simple concept, involving math and a few basic concepts of economics, and reading what the CBI says they are going to do.

I will let KeepM answer for himself.

And, FWIW, I pass on hundreds of chances to respond to the wide range of comments by those who have shown no interest on understanding the basic concepts.

As the CBI continues the education campaign, I imagine there will be a lot of discussion......

The folks that were promised that a RD would never happen are having a real hard time with this.

I never promised anyone anything...

Maybe some of the angst should be directed to the cause.... I'm not that guy.....

[Darin]

Dalite,

A R/D will happen. Any introduction of new bills is considered a form of R/D.

New denominations = re-denomination.

just looking to clarify on that

[teddyruxbin]

Of course it changes the value of the dinar. Right now, one dinar is worth $.00085. After RD, 1 dinar is worth $.85. The value of the dinar has increased! One dinar is worth 1,000 times more. That's exactly what they've said (repeatedly) they intend to do! But the value is meaningless. It's only a relative measure compared to other currencies. What people can't seem to comprehend (or simply choose to deny) is that purchasing power DOES NOT CHANGE regardless of the value compared to other currencies. One dinar after RD is worth the same as 1,000 dinar now. Most importantly to everyone here, the purchasing power of their dinar doesn't change. It doesn't increase. It doesn't decrease. I know it's not what people want to hear but people aren't going to make any money on their dinar. Those that continue to think so are devious or delusional. Their adament denials don't make it less true. Sorry to be the bearer of bad news but by applying just a little bit of logic this should instinctively make sense to most people.

Awesome.

Since dinar is wortless I guess not means you no longer have to waste time posting on this board amirite?

Good job...I'm sure we're all off to sell our Dinar just as soon as we log off

Dong forums...here I come!!!

[Dalite]

Dalite,

A R/D will happen. Any introduction of new bills is considered a form of R/D.

New denominations = re-denomination.

just looking to clarify on that

I accepted that possibility a week or so after joining and starting to do the research.

It took a few months to shift from the forum facts to a historical perspective

I wish you could get Marcus Curtiss' possible outcomes ported to Shabibi.

I would like to see a different outcome as much as anyone else.

BTW, don't wear out that buyback code....

[Up North]

Dalite, Thanks for the info. You present yourself as a well rounded smart individual, but by your own admission you are no expert and your opinions should be taken as such.

I try to base my opinions from the info provided to us through various Iraqi media outlets and I realize that in every article there are elements of truth and deception, the hard part is to separate the two.

I do not take any news coming out of Iraq as gospel, and I believe that this is much bigger than simply placing a value on the IQD.

I respect your position and think anything could happen, and I pray for a small rv.

[matthew6:19-21]

Remember to read the news that comes out of iraq as if you were an iraqi in iraq. They don't write their news for americans. Sometimes it puts a different spin on the article.

[Buckeye Pilot]

Keep....is correct. This will be a RD then RV.

Ummm

NO he is Not..........

So if this happens next Mo lets say, Iraq is going to just chop the Nuts off of the Banks/Currency buyers who have purchased 100,s of Millions of Dinar?????

REALLY....?!?!?!

You And Keepmlost are Simply....... "Stuck on stupid"

[Dalite]

Dalite, Thanks for the info. You present yourself as a well rounded smart individual, but by your own admission you are no expert and your opinions should be taken as such.

I try to base my opinions from the info provided to us through various Iraqi media outlets and I realize that in every article there are elements of truth and deception, the hard part is to separate the two.

I do not take any news coming out of Iraq as gospel, and I believe that this is much bigger than simply placing a value on the IQD.

I respect your position and think anything could happen, and I pray for a small rv.

I think we are at the same place.

With sectarian news outlets, representing at least 3 tribes, you can almost expect 3 versions of every event. Add the possibility of a morning and evening paper, and there can be as many as 6 takes on the same event.

I have almost 3 years of Journalism when pursuing a broadcast degree. The journalists of Iraq violate most every tenant of Journalism, and usually qualify more as editorial.

I have a technique where the articles can be printed, similarities highlighted, contradictions placed on hold. The repetitive articles produce the fastest path to consolidation, and then it only represents what the interviewed wanted to be printed.

It is a guessing game from there, but the CBI numbers help factor it down a bit more.

I would really, really, really like to see a small RV, without the RD first.

What it does boil down to, is that it's not over until it's over...

[keepmwlknfny]

Ummm

NO he is Not..........

So if this happens next Mo lets say, Iraq is going to just chop the Nuts off of the Banks/Currency buyers who have purchased 100,s of Millions of Dinar?????

REALLY....?!?!?!

You And Keepmlost are Simply....... "Stuck on stupid"

Its still quite clear you are unaware of whats going on around you.......and you still dont even understand what a RD does.....poor fella.....I told you I would be more then happy to teach you so you have a better idea before you open your mouth and show everyone your ignorance....

[PD46]

I think I see what your getting at.....to put it simply, if they were to create millionares out of the iraqis then yes inflation would seem to rise dramatically because I think the basic def of inflation is too much money chasing too few goods correct? I can't remeber right now lol.....

You do have a point though if iraqis holding USD wait until the lower denoms are released during the RD they will have the same rate as the old bills and they could buy a crap ton of the lower denoms and wait till the RD is over and they raise the value of the new bills which would give them a nkice hefty chunk of change while we would be luckhy to break even cause we don't know if we will even have access to the lower bills for exchange.....

Here is a thought....IF we are able toget access to the lower denoms during the RD process while they are at the same exchange rate as the old bills, then that would be the time to buy as much as possible and just wait for the new bills to get the new value.....if that could potentially happen then we could make some bank on the RD....

Keep, thanks for responding so quick. I had not thought about getting our hands on the LDs; if there is to be a RD and there is time to do so. Interesting thought, if possible. I had always assumed if a LOP was to come, then a RD on the current currency & RV on the lower currency would have to occur at the same time. Otherwise, the Iraqis with USDs would be made into Iraqi millionaires overnight; which would stem more inflation through a supply and demand shortage in currency; assuming the Iraqis truly plan to reduce the levels of currency in circulation.

I'm not one who believes in a LOP; and at the same time, I'm trying to remember this whole investment hasn't made much sense from the moment I bought dinar in early 2007. Anything can happen with this, and it probably will.

[keepmwlknfny]

I have no agenda, other than sticking around until the end of the ride.

I have no special educational advantage, other than enjoying learning about economics so I can better understand and predict trends or eventualities.

I mostly try to answer questions, to the extent of my ability.

I don't have to defend anything, other than the value of education and the need to remain rooted in reality enough to understand the possibilities.

Shabibi and the CBI are creating the press releases. no one here is writing them for the CBI.

I have grown fond of the site, and as one who hosted Dial Up BBS information exchanges from the mid 80 s through mid 90 s, I can appreciate a healthy discussion forum.

I have been involved in online discussion forums in a myriad of different subjects since the days of CompuServ.

As long as there so many misconceptions about ReDenomination, I will probably try to answer any questions that I am able to.

It is a fairly simple concept, involving math and a few basic concepts of economics, and reading what the CBI says they are going to do.

I will let KeepM answer for himself.

And, FWIW, I pass on hundreds of chances to respond to the wide range of comments by those who have shown no interest on understanding the basic concepts.

As the CBI continues the education campaign, I imagine there will be a lot of discussion......

The folks that were promised that a RD would never happen are having a real hard time with this.

I never promised anyone anything...

Maybe some of the angst should be directed to the cause.... I'm not that guy.....

Honestly I dont think I have much else to add to that.......I love learning about as much as this stuff as possible.....its like a second hobby almost......

Its interesting to me to learn and watch a country come up from almost absolutely nothing and get back on their feet and into the global marketplace again.....

There are some very intelligent people on this forum that I have learned alot from (and some from other sites) and I enjoy debating almost anything to get down to the bottom of it and to try and get the real facts and seperate them from the "forum facts"

I dont claim to know what Iraq will do.....If I knew I wouldnt be here.....just putting the pieces together as I see fit and cutting all hype and emotion out of it as to keep my train of thought clear with the most logical explanations....

PS- Darin, my dealer told me that he can no longer give you any more buyback discounts.....you are cutting into his bottom line!!! LOL

[GameChanger]

UGGGGGHHHHHH!

What, who, when, where and why to believe.

Opinions are truth?

Facts are Opinions?

It seems what we read in the article (on face value) is not what we want.

It also seems what we read in the article is not what we are going to consider a matter of fact... so... we wait.

It is kind of amuzing to watch people's blood boil over with their "Opinions Of Fact" (OOF)

Again... we wait and get frustrated.

GO RRRRVVVVVV!

[Babosa]

someone please explain to me how this works, If this is how the theory of the lop works, and how the two currencies co-exist like this.

$25000=$25

$10000=$10

$5000=$5

$1000=$1

$500=$.5

$250=$.25

$50=$.05

Can you only lower the value of the bills that have three zeros on them or do all the currencies issued have to follow the same value trend? If so they will have to have ALL NEW Denominations printed as well as coins minted. If i am wrong please tell me how.

[Darin]

Honestly I dont think I have much else to add to that.......I love learning about as much as this stuff as possible.....its like a second hobby almost......

Its interesting to me to learn and watch a country come up from almost absolutely nothing and get back on their feet and into the global marketplace again.....

There are some very intelligent people on this forum that I have learned alot from (and some from other sites) and I enjoy debating almost anything to get down to the bottom of it and to try and get the real facts and seperate them from the "forum facts"

I dont claim to know what Iraq will do.....If I knew I wouldnt be here.....just putting the pieces together as I see fit and cutting all hype and emotion out of it as to keep my train of thought clear with the most logical explanations....

PS- Darin, my dealer told me that he can no longer give you any more buyback discounts.....you are cutting into his bottom line!!! LOL

Wuhhhh?? Nooooo!!!

So much for maximizing my profits on selling back...

[JTMagones]

Go RV!!!!!

[Nelson0528]

The cancellation of 3 zeros of Banknotes

Date: Sunday 31-07-2011 08: 27 PM

Baghdad-Nasir Al-Hassun

The Iraqi Central Bank declared انتهاءه to prepare a plan to replace the current banknotes following the cancellation of 3 zeros,

Includes 30 trillion dinars (26 billion dollars) is the value of the cash block expected, confirming that the timing will be determined by the government and the parliament. The expert explained the first at the Central Bank of Iraq the Mohammed Saleh, the replacement of the currency, and responded to fears of the big corruption during the operation. He said: "The current problem lies in the issue of the timing of the replacement should be chosen as the date for the implementation of the project work without obstacles," he said.

Earlier, the central bank has announced his intention to raise three zeros of the Iraqi dinar, after suffering from inflation and in nineties of the last century as a result of economic sanctions, فتراجعت of the world to today about 1120 dinars to the dollar. The central bank was adopted in 2003 after a new mechanism to maintain the exchange rate of the dinar, lies in the development of the foreign exchange auction to sell quantities of dollars, resulting from the sale of oil on the international market, to the development fund for Iraq, which, in turn, would convert bank for sale in local currency, which helped to raise the value of the dinar in the last few years by more than 2000 points.

"Saleh estimated the size of the money in circulation or the volume of cash flow of more than 30 trillion Iraqi dinars, which is equal to 26 billion US dollars," he said. He said: " The system of cash transactions in Iraq a year after 2003, he became مدولرا, that is, the market deal dinar and the dollar as well, which means that there is a critical mass circulated in the market but foreign currency." Saleh said: " We have in the digital divide that the Iraqi or the the money in circulation inside, which will be replaced after the cancellation of الاصفار will be in the range of 30 trillion dinars, but value against foreign currencies to be stable for the rest. Any that the exchange rate of the Iraqi dinar would equal 1200 dinars to one dollar, " he said. On the most important variables that will be following the adjournment of الاصفار, between the appearance that " the central bank firm to draw up a plan to rearrange the currency to reduce the number of banknotes in circulation, this is positive. Here would be the Iraqi payments easier."

Economists had warned that the process of replacing the Iraqi currency, following the adjournment of الاصفار by ستشوبها the corruption of the great due to inaccurate Iraqi banks. They stressed that the replacement of the former currency were accompanied by the big corruption cost the Iraqi economy a lot. But the appearance of Saleh answers by saying that "the process of replacing the currency in 2004, have taken place in exceptional circumstances, and the country is under occupation by the US civilian governor, and this was a successful operation," he said.

The central bank sells through مزاده, daily of between 150 million and $190 million on a daily basis to its customers of private banks, money, go to a large proportion of كحوالات to foreign trade foreign trade.

The Central Bank expert said that " the application of the new draft to lift three zeros of the Iraqi dinar and the replacement of the currency, will take place according to Hierarchical mechanisms and in the form of not felt by the citizen, are the amounts in the market and is in the governmental banks of the replacement, and only available to the citizen's daily circulation, and can conduct transactions currencies i.e., current and new, فسلعة the current price, for example, 1000 of customers will be able to give the seller the present paper the 1000 Dinars as well as be able to give him new cash currency the dinar one."

He pointed out that "central" used by countries adopted the same procedure such as Turkey and Romania, as well as experts from the IMF.

http://www.almowatennews.com/news_view_24131.html

If this reads correctly, the expected cash in circulation after the change will still be 30 Trillion IQD, very close to the current value. So, it would seem to indicate that the new currency will be lower denoms at an equivalent value per dinar. Sounds like good news to me...

[nemesis760]

If this reads correctly, the expected cash in circulation after the change will still be 30 Trillion IQD, very close to the current value. So, it would seem to indicate that the new currency will be lower denoms at an equivalent value per dinar. Sounds like good news to me...

30 trillion Dinar = 26 billion dollars, isn't that an exchange rate of 1153.85 dinar to 1 dollar... that is suprisingly close to the current rate, so I would have to agree with you.

[imgesing]

GUESS WHAT?

We will see when we see. They can play this out many different ways and they are the ones who are holding all the cards.

As for those who think the USA isnt heavily involved, I say YOU ARE WRONG!!!! Yet, I am at least willing to admit that I have no definitive clue how this will unfold.

It will be to the benefit of IRAQ and it is something which is set up already. They know what they are doing in this reguard. I do not believe they will RD because I feel that this move would not benefit them on so many levels. I KNOW YOU THINK I am thinking of myself. NO! Of course I want it to do well. BUT the truth of the matter is they do not need to RD. They can swap out the currency value with out any RD. They can simply raise the rate the same way they lowered it. They do not need nearly as much to support this move as so many think.

It is not valued in rate simply by how much they hold monitarily. There is so much more in RVing.

ALSO, consider that the trade is equal. Once they RV the trade in is the same as the pay out. I keep trying to express this but few really grasp this. If you give them the currency which is now valued at a higher rate they get that back. They own it. SO it is an even trade. All those who try to say other wise are missing this point.

Lets all be patient and of course the SPECULATIVE reasons everyone gives for this to RD and then RV is interesting but there really are other potential outcomes.

PEACE and thanks for the insight all of you give.

[Dalite]

someone please explain to me how this works, If this is how the theory of the lop works, and how the two currencies co-exist like this.

$25000=$25

$10000=$10

$5000=$5

$1000=$1

$500=$.5

$250=$.25

$50=$.05

Can you only lower the value of the bills that have three zeros on them or do all the currencies issued have to follow the same value trend? If so they will have to have ALL NEW Denominations printed as well as coins minted. If i am wrong please tell me how.

I don't know about a LOP, but a redenomination of 3 zeros would mean all existing notes would be divided by 1000, so your numbers are correct.

Also correct on replacing all the currency with new bills or coin bearing the correct denomination.

In this case, they are adding the Kurdish language to comply with Article 140 of their Constitution.

There has also been menttion of adding a 100, and possibly a 50 Dinar note to more closely match the US structure.

[2fast4u2c]

Buckeye...from one Buckeye to another....I have been in this investment for over 4 years. I have reviewed every document out of Iraq monetary policy and history and so on....based on everything I have reviewed this is what I truly believe. If it offends you, my apologies but it won't hurt you to at least consider this as a possibility. Shab's is going to do what is best for Iraq, that is his background. I would love to ne a mill. soon but I can't imagine that as an option.

Let's hope we are wrong...but it would be healthy for you to at least consider this as a possibility.

Go Luke Fickell!

Buckeye..if your not an Ohio Buckeye...my apologies...lol

[estewart]

Of course it changes the value of the dinar. Right now, one dinar is worth $.00085. After RD, 1 dinar is worth $.85. The value of the dinar has increased! One dinar is worth 1,000 times more. That's exactly what they've said (repeatedly) they intend to do! But the value is meaningless. It's only a relative measure compared to other currencies. What people can't seem to comprehend (or simply choose to deny) is that purchasing power DOES NOT CHANGE regardless of the value compared to other currencies. One dinar after RD is worth the same as 1,000 dinar now. Most importantly to everyone here, the purchasing power of their dinar doesn't change. It doesn't increase. It doesn't decrease. I know it's not what people want to hear but people aren't going to make any money on their dinar. Those that continue to think so are devious or delusional. Their adament denials don't make it less true. Sorry to be the bearer of bad news but by applying just a little bit of logic this should instinctively make sense to most people.

That's right, and my view for what it's worth (which is, admittedly, technically, zip) is that a primary purpose of a lop will be mainly to align the Dinar to the Dollar, the current World's Reserve Currency.

And IF a lop does occur, that is, a removal of three zeros, 20 Dinar will be comparatively close 20 USD in purchasing power. Only a little lower. And I now believe achieving that is what they most want and need to do. At least, that's my guess.

And after such a lop does occur the value of the Dinar will then, most likely, be allowed to float just as most other currencies do--and that's it. No special RV. There'd be no logical need or reason for it. At least, I can't think of any.

Me, I don't want to see it work out like this, but I now do see this as the most likely future scenario. And it's fairly plain, too. At least it is to me. So, I'm feeling quite disappointed now, but won't later on. I'll then be focused on other things.

[2fast4u2c]

estewart...I agree. I mention the RV after a RD because I think they want to be more in line with Kuwaut, maybe not even but closer than dollar for dollar.

I don't claim to know for sure, it's just my opinion.

[estewart]

estewart...I agree. I mention the RV after a RD because I think they want to be more in line with Kuwaut, maybe not even but closer than dollar for dollar.

I don't claim to know for sure, it's just my opinion.

A close alignment of the Iraqi Dinar with the Kuwait Dinar would serve Iraq best, locally, but on the World's Stage of international trade, an alignment with the World's Reserve Currency would serve Iraq best.

Edited August 2, 2011 by estewart