Straightshot

[ ” Salih stressed that “the process of deleting the zeros and the currency exchange is the process of administrative reform of the currency of the Iraqi monetary and therefore >> does not affect the lifting of the value of things or change the per capita income of Iraq,”<< adding that “fear of people from the deletion of zeros is the fear psychologically, as the process of deleting zeros and the currency exchange have been applied in 53 countries, including Turkey when he deleted six zeroes from the currency and Romania, which omitted four zeros. “] For the few Lopsters out there that still think there is need to fear the RD (as per an inherent " L O P " (of value), etc)... take it from the horse's mouth. Salih himself assures us in this paragraph ^between the arrows^ that the IQD will not change in value (by way of anRV/or other)... due to actions to print and distribute "smaller" denominations. Such a move (RD) is necessary if the IQD is to become a modern-money. Once the IQD has been modernized THEN they will RV. To RV on top on the RD might/probably would throw and monkey wrench into the deal... They will want the RD to be 90% complete before they RV IMO... CBI has said it will take six months to get new notes printed and 1 1/2 years to implement the change over. They have said too that old notes (our notes) will co-exist with the new notes. Finally, there is no recognized economic mechanism that would allow for (any country) Iraq to value/revalue out-of-country dinar (ours) at any different rate than the in-country (widely traded/liquid) supply. Whatever (value-wise) they do to it over there… it will enjoy that same increase in value, here in America…

xyzzy... You said "An RV is essentially instant and does not remove any zeros. " True... the RV is a (single) "instant" event... as compared to the RD... which is slated to take some months to complete. But it is NOT TRUE that the RV does not remove (THE OTHER) Zeros (ala .00086 to .86). The RV is represented by that shift of zeros in the rate (which conversely adds zeros to the value (RV etc.)) Most of this thread/post^^ is old news... and somehow that 3.33 reference is slightly suspect... not that I don 't want to believe it! GO RV!

~ There is a debate on-going in this forum that centers around the meaning of the term “LOP”. From day one, I have heard it muttered, whispered and spoken loudly and freely. It appeared as though the LOP was a dreaded worse-case scenario, that indicated our 25K dinar would become only 25 dinar, in value… a thousand-percent reduction in nominal value (value upon issuance, or as officially revalued/current rate of exchange, etc). I didn’t worry about this too much, myself as I heard it explained on a conference call or two, that the Iraqi IQD is a guaranteed currency (for twenty years from date of from issuance (2004-2024) . If this were not the case… US banks wouldn’t touch the IQD, let alone trade in it. It was also explained that the economics term for a “LOP” would be a DEVALUATION/or demonetization in some cases. I have consequently learned that the dreaded LOP, in the case of the Iraqi dinar, already happened… back in 2003, when the Iraq regional authority slashed the nominal value of the IQD by 3,000 percent… by adding the (negative-value)-zeros to the rate of exchange (hence 3.22 (old Sadam value) was reduced to .00086. (there-about/slightly less) etc.)… (So that we can now buy 1000 IQD for a dollar.) But then there seems to be a school of thought, that some (too many) are drawn to. There are those who, for some reason, misunderstand the redenomination process (removing the (thousandths-place/three) zeros from THE FACE of the note… I capitalized THE FACE because is critical to realize that this is a different set of zeros from the zeros in the nominal value/rate of exchange… Al Shabbibi himself has said that the “raising” of the zeros from the currency,(his translated term), will increase the value of the dinar (eventually)… but it certainly isn’t going to negatively effect its purchasing power (devalue/LOP, etc). It has been stated repeatedly: Removal of the (FACE) zeros WILL NOT effect its purchasing value… in and of itself… but should INCREASE the value of the dinar over time… This error in miss-identifying the redenomination (removal of (3) zeros from face of notes ONLY) as a devaluation (LOP) is causing way too much consternation in chat… as the “LOPSTERS”, as we call them, have tried to take over the RD debate, (whether, otherwise, it is a good thing or not) I have had several folks from the LOPSTER klan accuse me of having a one-track-mind, on the topic… simply because I am persistent on the point. So be it. Meanwhile, I would appeal to those who know better (that a rednomination/RD is not a LOP, etc) to say so loudly… so we can stamp out that dreaded mis-understood LOP talk for good … Peace out SS

A “LOP” must (does actually) mean a DEVALUATION… or otherwise why fear it ???? Back to my point… Redenomination will not/does not directly effect nominal value of the notes! You can’t have it both ways…

above ^^^ should be " B ) " (wouldn't allow edit ) (?)

Once again, It boggles the mind that some still don't understand that a redenomination has nothing to do with a LOP… which would be a DEVALUATION. The IQD was already LOPPED back in 2003 (by a value of 3,000 percent) DONE! Now we (they) are about the UN- LOPPING of the dinar … But probably NOT until they complete the redenomination (2-3 years). It is a tricky thing to get your mind around maybe… that there are several ways to manipulate the zeros in respects to a currency: A) LOP the zeros from the nominal value = (devalue) (already done in 2003 etc); remove the zeros from the face of a note without changing its nominal value = (redenomination/RD) (in progress... pending internal review); and C) Remove the zeros from the nominal rate = (revalue RV/RI) (.00086 to .86 ; example) (What we are waiting for!)… This post should be renamed… The news video (which also gets the RD and RV mixed up by the way) had nothing at all to do with a LOP… That an “advanced member” doesn’t know these things is curious… and I only blame the higher-ups for not making these things more clear (and removing the specter of so-many ill-informed LOPSTERS spouting nonsense in this forum. This JamieS post was moved for a good reason… the subject-line/title is misleading and way off base…

There has to be some official political push-back on any such ambitious and bold plan as the Iraqi IQD redenomination. The argument against redenomination here is technically very weak and reeks of political hyperbole. There is obviously no necessary increase in corruption or corruptibility indigenous to the process. But, just as a matter of formality, (and for political good-(counter)measure) someone has the dirty job of playing the part of the distracter. Note that Anbaky is a lone voice in opposition to the redenomination. No one else is in the position he is in where he can safely offer such unpopular criticism of the process. He knows his warning will go unheeded… but , in his line of work, somebody has to do it…

Texas Graany... thank you... I was following your instructions just fine until I got to "type in the instructions"... Which, of course prompts the question..."what instructions?" can you be a little more specific on that? Thanks again for all your good help...

I get so, so tired of folks trying to work the term "lop" into the impending redenomination of the IQD. They are completely different things, altogether... the RD will not and does not directly effect the value of the IQD notes... The dreaded "lop" happens in the case of a DEMONETIZATION... NOT a REDENOMINATION!!!!! that would be removing the 3 zeros from the nominal value of the notes... the redenomination doesn't do that at all... and I just repeated myself too... ^^ The RD is good because it does set the stage for the RV... now that the IQD has (will have) been "dollarized". RD to facilitate the RV. NO LOP involved!! It took Turkey two years (2003-2005) to RV after they redenominated their currency... etc.

<> It amazes me how many people are clueless as to the dynamics of an RV (including me)... but, I don't imagine they are going to RV at a "convenient" sounding rate... In fact, I might suggest that it is highly improbable that the IQD will RV ON TOP OF the USD... That's like picking a fight with the big kid on the block, right out of the gates... in the long run, though, the RV rate, when it happens, will not be written in stone... and is subject to further adjustments/RVs depending on market forces. The main thing is that the IQD be set free... even if they were to just let it grow right out of the box... loose the USD peg (?)... I have faith the dinar will grow big and strong... but I don't think it will pop up one to one with the dollar...

A so-called "lop" is (would-be), actually, a demonetization. It is not likely the IQD can be further devalued without being scrapped altogether. That would fly in the face of news that the IMF and WTO are both encouraging the IQD to grow into a world-tradable currency. Also, the IQD is gauranteed for 20 years (2023). There is effectively no danger of a further demonetization (lop) of the IQD.

Sorry my friend... but your understanding of the "lop", as compared to my understanding of it, is grossly different... and the information you are giving is misleading at best. I agree with you on the point that the on-going process toward redenomination will facilitate the dinars rise in value... though not immediately, in the form of an RV perhaps. But you try (futile effort) to explain a "lop" when apparently you missed that lesson in "dinar 1.01"... Since you never used the correct, economics term for what would be a "lop"... I doubt you even know it. The correct term for a would-be "lop" is "demonetization". Your post (above) suggests that you think a demonetization(devaluation/DV)/"lop" and a redenomination/RD are somehow relative to each other. If anything, a redenomination says "we are not going to be demonetizing (lopping) our money. And while your math is probably correct (with your denominations break-down, above) you application of the math is skewed to try to make a "lop" somehow co-existent with a redenomination. There are three ways to manipulate the zeros in respect to the dinar. a) demonetization (removal of zeros from the nominal value of a note/currency) redenomination (removal of zeros from the face of the note without changing it's nominal value of the currency) c) Re-valuation/ RV/RI (removal of zeros from the rate of exchange so as to increase the value of the notes/currency. These are three completely separate affectations. What we are hoping for is a scenario that includes b and c... redenomination (underway) and then an RV/RI. Also, the IQD is guaranteed for twenty years... will not be scrapped. So called "lop" (demonetization) happened already in the case of the IQD... in 2003 it was demonetized ("lopped") by 3,000 percent... that is why we can buy 1000 of them for a dollar in the first place... FYI/IMO/peace.

Adam, I checked on the definition of the term "demonetization": to divest (a monetary standard or the like") of value. Isn't that, essentially what happened to the dinar when the Sadam era notes were withdrawn and destroyed? The new bills were (in 2003) then "lopped" (demonetized/divested) of their face value. So couldn't we conclude the "l o p"/demonetization of 3000% etc. has happened already and is therefore not likely to reoccur? TY

It seems like it would be a simple enough thing... usually, I look for "contact us"... I wish to correspond with the DV administrative staff. Thanks for help here...

I have requested of several in-the-dinar-know types ( gurus?) about the different ways that the zeros can be manipulated, in reference to currency exchange. I am waiting for clarifications… but to the best of my knowledge, the following is true: Three ways to manipulate the zeros: 1) demonetize ("lop")= removing the zeros from the nominal value of a currency in a way so as to render the currency drastically reduced in nominal value (by a power of x 1000, in the case of the IQD). 2) RV/RI or ReValue/Re-Instate= "Dropping" the zeros from the exchange rate... as in the case of the IQD . (example RV=) 00086 to .86 = 1.17 IQD/$1.00. 3) Redenomination= “removing” the zeros from the face of the tradable currency in a way such as not to reduce the nominal value of the currency (usually as a measure to reduce the need for carrying and processing large numbers of notes ("Americanizing", in the case of the IQD)). It is possible to RV/RI and redenominate, which is expected to occur with the IQD (we hope). The IQD is guaranteed for 20 years from date of issuance (2003). Any nation that intends to lop/demonetize must publish intent to do so 6 months before such actions. The lop is a remedy for run-away inflation or stag-flation; niether of which applies to Iraq. If there is some notable error in this information, I, of course, invite knowledgeable correction. There has been much consternation regarding some of the terms associated with the zeros and how they might be played-with. I hope someone finds my post useful, or worthy some fine-tuning.