Darin

For them to re-denominate and remove the zeros from the note, to correctly do so they will have to do the same with the rate. I.e., 25,000 becomes 25 While the 0.00086 becomes $0.86 Could you imagine if they didn't apply the balance to both sides and only did it with the notes? Your new shiny note of 25 with an exchange rate of $0.00086 would basically be taking 1,000 times the wealth of everyone away. So yes, even with suggesting that the nominal rate has 3 zeros removed, the balance would likely follow with the notes. However, as much as this appears to be a bad thing (which it is....) articles have been blooming starting to show they have other intentions. I.e., the value can be backed at 2.5 times as of now, bright promising future for Iraqis and so forth, and international institutions moving on in. All "GREAT!" signs we may see some better resolutions to this... Is the R/D appearing to be out of the question? No.. but it does appear to be becoming less & less of a threat... Even thought the R/D articles still do exist, but other articles seem to be appearing that contradict that scenario. Could the R/D articles be used to suppress speculation? I sometimes feel so, but either way I wouldn't make that assumption with 100% as I could be severely disappointed.

In reality, I don't like what they have done. They should of still allowed the dinar to slowly PIP up in value instead of vastly increasing the money supply. Stability? There is no stability in the market place. I doubt they will ever see stability when it comes to market pricing. I also think that they will always prefer dollars over dinars until the make necessary changes. Think about this, would we invest in a stock that we know that the value would never increase past a certain point? With that said, why would we do the same with cash? The dollar is more accepted and more desired in that region. I feel that the average Iraqi is not stupid and sees that as well. They don't care to hold something that will never have a value higher than 1166, and they know that their 1166 won't turn into a dollar magically as only the CBI does exchanges at that rate. They'll have to pay their own mark-up of fees & %s during any exchange. Accepting payment in dollars will provide the benefit of those people as they can turn around and spend those dollars easier and faster than dinars.. I feel the same issue in that regard will exist even after a re-denomination. The lack of 3 zeros will not solve that issue, how it is exchanged by the CBI will maybe change that... With all the foreign investors likely to soon pour in, would it not make sense to start charging more for dinar to beat that mad rush? Demand may start to go up - therefor they should do something before they expand their M2 even further. We have seen that the dinar is back by 2.5 times its value, so maybe start by raising the value 2.5 times (1166/2.5 = new rate). Maybe from there, provide a more managed float and let it appreciate.. Give reasons for the people to desire & demand dinars (instead of dumping them). Let the value appreciate over time as it will be a great way for others to look at even the currency as a factor of their economic health. The 3 zero articles may or may not have any merit, but I think it also seems that they appear more frequently when dinar hype goes up. Dinar hype goes up when great accomplishments are made (i.e, economic sanctions removed back in 2010 or so). The 3 zero lop articles really seemed to start making their presence back than. I think too much foreign demand was occurring and the CBI would rather have the dinars in hands of the people who would not immediately seek exchange for dollars due to increase in value vs. the foreign speculators who would cash out. Runs on the bank are not good for banking. A lop is simply an economic band-aid. Its really not so much even that, its like an overweight person getting liposuction versus losing weight the hard way by eating right and working out. A lop could simply mean that even the new dinars slowly lose their value all over again. As a foreign investor, I would rather appeal to seeing the gradual rise or appreciation in their currency as a way of showing their economic growth and strength versus their band-aid fix. But I guess I just don't see the feasible reasoning behind changing the currency via re-denomination when just the lack of 3 zeros really has anything to prove...? Yes, their m2 is reduced by a 1,000, yes their money supply is reduced by 1,000, and now they don't have to calculate three 000s into their equation when calculating balances, etc or may even ease accounting. But my argument is other countries do fine with a few zeros on their currency, and it isn't like the 1950s anymore as we have computers and electronics that easily account for us. A re-denomination doesn't reduce the amount of bills you would have to carry to make purchases. It may have a short-term psychological effect on the people that their money is actually worth more when in reality it isn't. Than factor in the nuisance that everyone has to trade in their old 000s for new re-denominated notes, go through a period of time where 000s, new LDs,, and USD all exist for a certain duration of time (Talk about an extreme annoyance) all to fix a problem that may re-occur. Also, looking at it from another point of view, what a way to get every dinar in existence outside of their country to seek an exchange due to basically being forced to. Soon as we see that a R/D is confirmed, now all of us will be seeking ways to jump off this ride... We will want USD or other hard currency (most likely not new dinars as we will not see the potential ROI% as we hoped). If I were to make a prediction of a negative result.. They set themselves to begin re-denomination at the beginning of 2014. Lets say they allow 90 days for exchange. All foreign held dinars (whether it be by individuals, banks, or money exchangers) have to ship their dinars back to the CBI - some may seek out USD, others may look for new lower-denoms.... Will they have enough cash of either on hand to handle the situation? What will that do to their reserves?? I think that their reserves would take a hit regardless of nearly any scenario, but unless they do not honor foreign held dinars, they will have to accept exchanging them. They'll also have to fork over the money to print new LDs, distribute new LDs, & so forth. They've kicked this can down the road for so long, the money itself has likely been spread all over the globe. What can benefit them by slowly raising the rate? No runs on banks, higher velocity of exchanges which leads to more profits from exchangers(banks) and CBI. The return of some of our uncirculated bills may very well flow into their economy nicely as it it'll prevent printing high amounts to replace battered amounts. Slowly release newer lower denominations as needed. And gives them historical data of how well the economy functions as the value slowly rises. It is not the overnight scenario we hope & wish for, but it provides us with great opportunities w/ patience. Maybe some of us determine a cash-out value (whether it be when they are at a $0.01, $0.05, $0.10 or higher). We depart when we as individuals are ready..

I feel like I am in the Twilight Zone while you post your optimistic posts. *Que Twilight Zone them song* Anyways - the comments on this article that are obviously intriguing "The near future will be a surprise" "Great leaps forward in the future" Hinting at International banking institutions opening branches Turn Iraq into an Arena of Investment So, near future? Is that another way of saying "Soon"? God I hope not, as we know that "soon" has shown us in the past. I like how they used the word surprised, as it really makes me hope & think that a surprise is indeed a surprise... Like waking up tomorrow and seeing a larger appreciation in value... I would rank that as a nice surprise. Great leaps forward in the future? I think this may be related to more about how the economy in itself is about to shoot off like a rocket. As investments pour in, businesses will follow. JOB Creation is what I think this may be referring to. Reducing unemployment, putting more money into the people's pockets, etc. etc. The International banking institutions... I hope this means that they're setting themselves up to have an internationally trade currency. If investments pour in, it may be wise to allow the dinar to be more easily traded for ease of investments. Why not, right? Who would want to go through the hassle of having a hard time converting. This could be a nice way to help foreign businesses convert to dinar to pay their employees or pay for services in the area. Turning Iraq into an arena of investment? This is note worthy - as they must be expecting money to be blowing in... Another reason for a guy like Turki to plan accordingly.... In conclusion, I think it may be wise for Turki or the CBI to make necessary changes prior to this huge rush of foreign investments. Look at the banks coming in, other businesses & services will soon follow (maybe even Tourism will start to flourish). All that money going in, one would have to think the demand for dinar would rise, right? I hope they have some new crisp bills to exchange for the newcomers so they don't feel like they're working with an outdated country. Here's a thought... "If you went to a foreign country, and for this example we will use "Mexico." Lets say you go with $1,000 and you convert it to Pesos. How would you feel if the bank handed you Pesos that felt like they had been circulated so much that they should of been destroyed (Soiled) 2 years ago and replaced? I'd be worried the bills themselves are fake, may not be accepted in certain places, or worse easily rip and be worthless or something.

Did someone hack your account? Your usually good about seeing negativity in an article, which does help keep most of us grounded (even though we don't wish to hear negative news). Well, if they're smart enough to raise the rate versus expanding the supply, than we are working with a great recipe. CBI must have some sort of freakish love for the #1166 as it never does seem to change.

Who let you out from underneath the bridge?

Probably something like DT that they're referencing.. I'm sure if any other site existed, we would know about it.

I always find it interesting how the R/D (lop) articles start to come out more frequently during high moments of hype on their currency. We see some good articles come out about their currency, than it is followed by opposing articles referencing r/d (lops). They must like to keep speculative heads spinning, and try to suppress foreign speculation....

Sort of weird to think about, but it appears their global ranking always changes. I've seen them as 2nd, 3rd, and 4th.. And predictions that they could be #1 on proven reserves.

A good way to view this is simple... The duration of their hard currency may be very short (18 months) or so, which I do recall articles stating that claim. However, the CBI vaults may easily have pallets printed from back in 2008 that have not yet been released to the public. With that said, they may not have printed for years as they have a surplus of new crisp notes. They may not have printed anything new since than, but, they may have a lot in storage not marked as a liability.... I wonder how much of their over-stock is starting to dwindle though as surely something will need to occur on a time-frame as they run out of hard currency to distribute. I recall recently from a personal experience pulling out some $20s from an ATM. They were very crisp, felt brand new, felt like they were sticking together, an had the new uncirculated smell to them. I was quite shocked when I read that their creation date was 2008... That likely meant that the bills i had received were in some sort of storage for years before even being introduced. Could have been in a bank vault, or who knows. Maybe a knowledgeable banker can further explain how some of that works.

I never really can figure out why the CBI is on such a kick of pegging the rate. Does a dollar buy the equivalent today that it did when the CBI began the pegged rate? I would doubt it... Therefor, the dinar itself, does not buy the equivalent it did when the pegged rate began present day from when it started. Factor in the variable of inflation within the Iraqi markets, and you have a situation where the dinar even buys less. Why would the pegged rate benefit the people? They know that the value of their currency would have a point that it can not surpass (1166).

I've always tried to tell myself, a R/D albeit a neutral event, it is not a hard one that could easily be done. Why the hold up on that if that was their true intentions? My theory was that the CBI had the intentions to appreciate the value, but they felt that too many dinars fell into speculators hands that would only hurt them down the road upon when the speculators exchange backed to a different currency. If too many buy cheap and sell high for profits, than the CBI loses... So, what works best for them? Hold the value at a stable rate for an extended period of time to suppress foreign speculation, throw out R/D articles all the time, and hope they draw in foreign held dinars to reduce the speculation. I believe this would make sense.. If my theory were to be right, I think their next move would be to move 1000:1... As this would simply appear to be as they're preparing to R/D and have a more 1:1 rate after a R/D. But if we play a "what if game" What if they decided to move it to 1000:1, wait a bit, than change to a float type system... Also, if they ever reach a rate of 500-600:1, I think they'll ride the appreciation train to where ever it brings them and a R/D is likely to be less seen.

w I believe you may have misinterpreted the phrase. I believe he meant the Japanese Yen, but neglected the Yuan as he claimed their cheating & their value is low which means they may not be a good move at the moment.

Thank you, as that will likely be helpful for many whether this things pops or not as it is great general advice. I bought my car with 2,500 miles on it. A normal sticker price for the car new was $22,900, as I only paid $18,900 for it just due to the $2,500 miles. Car felt like it was extremely brand new as it had no flaws on it. I would imagine that some new cars can get a lot of miles just from simple test drives and still hold sticker value. If this were to go the route we dream of, I would be looking to buy a house, nothing special or fancy as it would be something reasonable. I would actually prefer it to be in a newer development as they tend to start cheap and if you live in that development, I would believe that over time the value could go up. Great if your young and look to move in the future. I would also say after you made your simple or fun purchases (boats, houses, cars, paying off debts), that you prepare to live comfortably that you invest the money in safe and reliable areas that provide returns. Never touch the principle and try to live off the interest for living expenses. If your younger, I would say still expect to work, if your older - maybe cut your hours or work part-time, if your pushing retirement you could likely take early retirement and call it good.

Not going to find much love from people who feel that they will wait another 2.5 years.. So much can happen in that period, even dreadful events... All their R/D talk for example would potentially come to fruition prior to WTO membership. That would be a buzz kill for many here. But another way to look at it, maybe for proper free trade they members may want to see that their currency remains stable after some changes and therefor would want to see some data for a duration of time after a change of their exchange regime. For example, if they switched to how they backed their currency to a different style, maybe some sort of float, I would imagine they would want to see that the rates of exchange don't fluctuate and be quite volatile over a 1-2 year span.

I think its how you look at the statement.. I would believe, that if I lived in Poverty and was unemployed, someone could say that I don't have dollars. Why? It is likely that I would be spending any cash that I do have as soon as I receive to acquire food or whatever sources I need to survive. But, there is no reason to really sit back and nitpick statements.... Sort of a waste of energy while it can better be used to educate ourselves in more meaningful ways. I think you were put here, or at least I would believe it was more on your delivery of the posts you had more-so than the idea that you are arguing against a large appreciation of value. I've seen many get dumped into the tank, and it usually appears to be because they're "trolling" so to speak as in stirring the pot.. I remember once back when I was way younger, I went to a Go-Kart place with a friend when the place was rather dead. What I recall doing was basically playing bumper cars with the karts with my friend. We were warned if we continued to do it, we would be kicked out... We decided to abide to their demand by no longer racing in bumper cart mode, but we still acted out by driving the Go-Karts roughly like driving in a harsh zig-zag motion. Needless to say, we were kicked out soon after. We argued that we were not bumping into each other as they asked, but what we did they saw as disruptive.

Thank you for your contributions Amos, we appreciate your input and hope you share much more in the future. I've always felt that this would not be an overnight scenario.. As many of would love for it to work out that way, I think we will see adjustments in our favor over time. The real question at hand is, how long is the "over time." The currency itself used to appreciate quite frequently upon its induction, however, in recent years it stopped and remained constant. The dinar seemed to be much more popular back than, as we found that many were optimistic, gullible to the word of some gurus, and so forth. In recent years, many of us have started to become more grounded as we have sat back and learned what the potential outcomes may be. In a R/V // R/D debate, it has been beaten to death.. We see articles and so forth, but they sure like to talk a lot without taking action. I think a general appreciation in value is a good possibility, while not discounting the idea of a more worse-case scenario. It really does no good to argue why you believe one will occur over the other, because no one really knows.. Its all just speculation, but at Iraq moves forward in a positive light, I think the longer this drags out the better the possibilities. Some may ask why, and my response is simply that as time moves forward, they'll fix many of their on-going issues. What are some of their issues? Dependency on energy (Crude oil & Natural gas)... Now, there is no doubt that is what makes up the largest percentage of their paycheck... Other sectors are growing, from either within or the assistance of foreign investments moving in. But that same ratio percentage will likely remain the same simply because oil production will continue to rise while the private sectors will rise as well. In reality, if the private sector was booming to a larger percentage, I would feel that Iraq is not boosting their crude exports to their fullest potential. Other precious metals & minerals can help boost their economy... It will help in playing a factor, but it will never take up a large % of their potential over crude... In the way future, I would believe their % of crude dependency will reduce as other markets flourish. The dinar, in due time will likely show more promise whether it R/Ds or R/Vs... I would imagine that it'll go up in some sort of significant value due to demand.. If the citizens of the country start to move away from the dollar, their domestic currency will likely be higher demand... If foreign deals and trades increase, this should also be a big boost for them.. Job creations and so forth.. I imagine in the near future that the govt of Iraq may eventually start taxing their citizens for government projects (i.e., maintaining or building infrastructures)

Fib used to make some large bets that they won't change their value to anything better than 499 by the end of the year. Your math + this article + Fib making that comment, makes taking the bet a little bit less risky LOL

Interesting... I look at this from two different sides at the moment... One, if they still have a provision under Ch. 7 that creates an obligation to remain under 7 w/ that provision, I could see the misinterpretation. With that said, if that is all that held the full release of Ch. 7, if moving many provisions from 7 to 6 allowed access to frozen funds, why not just use some of the DFI or other frozen funds and pay their entire balance and be done with the issue, right? If the entire full release isn't until 2015 as the last payments are made, than isn't Iraq only shooting themselves in the foot so to speak by delaying paying the balance by only submitting 5% of their funds? No one likes bills, and if you have the ability to pay them off in full, why not, right? Granted payments are nice, but in this scenario, the payments come with a hitch. On the other side, I wonder if what some are interpreting is simply a miscommunication. Are we entirely sure that the obligations by Iraq are no longer under Ch. 7 as they have moved to Ch. 6, yet still remain an obligation? Maybe the articles have simply referenced the Ch.7 provisions and called them out as such as a reference point and maybe did not do a full or clear job of stating they were moves to a Ch 6. And on another side note, if it could be done, if the Ch. 7 issue really did remain.... Why not make a pre-arranged agreement w/ Kuwait to become completely removed from Ch. 7 and acquire seized funds and pay in Full as any Ch. 7 sanctions that were to remain to have the country viewed negatively. I can see how some argue the point from both sides of the fence, but I feel that from what I have viewed that I would be leaning more towards that 7 is a thing of the past. Otherwise, the numerous articles and even celebration seem to be overly immature and the provisions that were truly moved from 7 to 6 do not seem to be anything to significantly be excited about. I think we're viewing another case of the conflicting articles... We've seen it in the past... (i.e., Blah blah is dead, no he is alive, no he is dead, no he is in a hospital..) Just a matter of which you believe... But it appeared many members here actually listened/watched the UN broadcast and have formed their own opinions.

One of my bigger fears was whether this speculation pops or poops, is how to convert it back to USD. As many banks have continuously claimed "They do not deal with it.." I was hoping that in the future they may change their mind. Whether it be due to a nice exchange rate boost or simply to provide a service for the customers they have. I know that I recall back in the day how many people were told by the Banks they no longer deal or do not deal with currencies from Sanctioned countries (I.e., Iraq) which was a nice thing to hear about how Ch. 7 is no longer a reason... Now their best excuse is to claim it as an exotic currency.

I think another article said it best... Or basically described it better. The removal of Ch. 7 is more of a milestone that will bring more external or foreign countries to be interested in dealing with Iraq. If some recall some certain negative bank stories, some of the responses that they heard about why they do not deal with their currency was due to sanctions. (keep in mind, this was after the 2010 lifting of the economic sanctions). Therefor, banks willingness to deal with their currency may be higher, thus a slightly higher external demand.

The way it appear that it was presented to her was that it was more of a common thing over in that region. Therefor, I doubt it would require high-level access.. This information may simply be what people are spending to acquire dollars from banks. Weird how their market rate is better than the official rate and while the CBI posts market rates of higher than the official rate. Makes you wonder if sometimes we are simply misled.

Hey! A re-denomination is a possibility. I would believe that a majority of us here understand that. It can even be discussed and debated properly on the site. I think what some of the people who post negatively go beyond that though. They seem to continuously bring negative comments over and over. Basically to the point that it becomes annoying. Therefore, some people start giving negatives, reporting, or complaining. Sometimes, it isn't so much the content as it is the delivery that matters. Some posters, seem to attempt to stir the pot so to speak with their negativity. It is one thing to argue about how one thing may or may not work, it is another to bring forth a way to annoy people. You deliver your posts in such a manner that it appears your hear to cause trouble, I would bet your stay will not be very long. Just my $0.02

IIRC, without looking back, I believe this article is like a year old. If that is the case, if the events were to truly be taking place, that we would of seen more recent articles regarding that. It appears that on the anniversary date of many articles from Iraq, they tend to resurface. So what we're likely reading is an article from over a year ago. It resurfaced on its anniversary date. That is how we get a lot of old articles (Makes you wonder how many Remove 3 zeros articles have come up over and over).

They can have a 70 trillion M2 and re-value. They could have a 700 trillion M2 and re-value. The M2 would play a rate in the exchange rate, but the question that we all want answered is simply this.. "If the exchange rate changes in our favor, how much will it be and when will it happen? Does it go to 1000:1, 500:1, 100:1, 10:1 or even 1:1. Obviously, logic says the probability of a smaller increase outweighs a higher increase, but we can all hope... Is anyone here familiar with scratch off lotto tickets? Its like we all bought a winning ticket and saw that we matched the #s to have the winning ticket, but we hold off on scratching off the amount we won.... It is like we've been in that event for an extended amount of time. We can scratch the value and find that we won our money back or more... We're all just hoping we win more back.

The world and the dinar community has lost a good one. It took me awhile to finally post in here, because I was really sad & shocked about his passing. In recent weeks, SWFG was posting frequently and providing us with great information. The guy shows some amazing class, as he truly does appear to do his research. Granted, some may not always agree with his opinions or how he formulated his thoughts, but we all can have differing opinions at one time. Through Google searches, I was able to find a site that mentioned him as they sort of thought negatively of him and his postings. Looking back, I am kind of sad with that site and their approach, however, if it wasn't for that site I would of never found another site he frequented and called home. The other site he frequently posted on, I was able to contact him via private message and let him know how I've formulated my opinions or spoke with.. We had a chance to shoot a few private messages back and forth. I was really excited to get a chance to speak with him more on a one-on-one level anything IQD related. I noticed he hadn't posted for a few days, and suddenly woke up to find that he had passed from DV. Wasn't the best thing to wake up to on a Monday. Sometimes, it appears starting off with a bad day can really continue on, as it did for me that day. The greediness of me will miss his insightful post, however, the sadness outweighs my greed as he will never get a chance to see the conclusion of this ride. He has inspired many, he has brought optimism to a lot of us, and he has helped educate us. No doubt, this is truly a sad event and he will truly be missed.