chas32

Kuwait Currency http://www.asiarooms.com/en/travel-guide/kuwait/kuwait-overview/kuwait-currency.html http://www.crnindia.com/currency/dinar.html http://www.google.com/search?q=kuwait+currency+history&hl=en#q=kuwait+currency+history+after+1990+invasion&hl=en&prmd=ivb&tbs=tl:1&tbo=u&ei=MGz1TNq2FovonQfH9NS2CQ&sa=X&oi=timeline_result&ct=title&resnum=11&sqi=2&ved=0CE0Q5wIwCg&fp=a6102fbb2289f1ce

You cannot help men permanently by doing for them, what they could and should do for themselves." — Abraham Lincoln A good place to start your study of the Dinar is: “A Qualitative Cost Benefit Assessment Of The Rednomination Of The Naira” and the “Letters of Intent” on the IMF web site. Links are provider below. Google Translate http://translate.google.com/#ar|en| What Does Rednomination Mean? http://www.investopedia.com/terms/r/redenomination.asp A Beginner's Guide to Exchange Rates and the Foreign Exchange Market http://economics.about.com/cs/money/l/aa022703a.htm Dropping Zeros, Gaining Credibility? Currency Rednomination in Developing Nations http://www.unc.edu/~lmosley/APSA%202005.pdf Effects of Rednominating the North Korean Won http://seekingalpha.com/article/176077-effects-of-redenominating-the-north-korean-won A Qualitative Cost Benefit Assessment Of The Rednomination Of The Naira Postscript: After writing this article, on August 22, 2007, the CBN published a FAQ explaining some aspects of the proposed denomination exercise. On August 24, 2007, the Federal Government announced the suspension of the planned re-denomination of the nation's currency for lack of due process. According to news report, “the Attorney General of the Federation and Minister of Justice, said the public pronouncement of the Central Bank of Nigeria (CBN) Governor, Prof. Chukwuma Soludo on the issue contravened a section of the CBN Act which requires the CBN helmsman to obtain a written approval of the President before embarking on such action…the plan remained suspended until the President gave written authorisation to the CBN.” “I as the chief law officer of the federation, hereby stop all actions on the re-denomination of the Naira. This is because the actions of the CBN governor violated Section 19 of the CBN Act 2007,'' the minister said. Let us hope that the suspension will not mean the end of the proposed redenomination. http://www.gamji.com/article6000/NEWS7367.htm Needless to emphasize that to appreciate the full impact of the new policy on the Naira/national economy, we need to take the 4-point agenda as a package. As a package, the new agenda will: better anchor inflation expectations, strengthen public confidence in the Naira, make for easier conversion to other major currencies, reverse tendency for currency substitution, eliminate higher denomination notes with lower purchasing power, reduce the cost of production, distribution and processing of currency, promote the usage of coins and thus a more efficient pricing and payments system, promote the availability of cleaner notes, deepen the Forex market, ensure more effective liquidity management and monetary policy, convertibility of the Naira and hence greater confidence in the national economy and lead to greater inflow of foreign investment position the Naira to become the ‘Reference currency’ in Africa http://www.cenbank.org/redenomination/newpolicy.asp At some point, usually after at least one year, the old currency ceases to be legal tender. From that point onward, it is in theory possible to drop the "new" prefix from the new currency. http://www.thejakartapost.com/news/2008/05/19/redenomination-rupiah.html Historical time frames for currency exchange http://www.scribd.com/doc/35281429/Redenominasi “First, the Iraqi government needs to restructure its economic bureaucracy—the vast Soviet-style apparatus that treats state-owned companies as mere sub-units of Iraqi ministries, Second, the jumble of overlapping, contradictory investment laws… Third, Iraqi workers need better (not more) social protection.” http://zunia.org/cat/monetary-and-fiscal-policy/geo/iraq/ Due to a lack of agreement between the Central Government of Iraq and the Kurdish Regional Government, Pletser said it was risky for MOL to invest in the block as the possibility for exporting the oil was uncertain. http://af.reuters.com/article/energyOilNews/idAFLDE6A70TY20101108 Tough government negotiations in wait in Iraq by Wamith Al-Kassab (Iraq)November 12th, 2010 or most Iraqis, and business people who want to invest in the country, it means that they must still wait for basic public services and infrastructure should be put in place. Power failure, water shortages, poor transport, high unemployment and lack of housing is helping to make life difficult for most people, while the country still ravaged by violence. http://www.mideastyouth.com/2010/11/12/tough-government-negotiations-in-wait-in-iraq/ Is There Ever A Good Time To Invest In War Torn Countries? Study Finds Out Nov. 5 2010 - 12:01 pm http://blogs.forbes.com/meghabahree/2010/11/05/is-there-ever-a-good-time-to-invest-in-war-torn-countries-study-finds-out/ Now that we have shown that the real value is only an approximation let us talk about the nominal value. Nominal means in name, and thus we have a standard established for discussion. Technically the term nominal value refers to both the former and current stated value. It generally presupposes a monetary standard that has changed such that the same denominations of money now have different meanings. The expression real value is generally used to translate the nominal value of a former point in time to the nominal value of the current time. http://www.freedomformula.us/articles/the-real-and-nominal-value-of-money/ D. Ahmed Al-Wazzan: Raising three zeros from the nominal value of the Iraqi Dinar http://www.alaalem.com/index.php?aa=news&id22=6468 http://translate.googleusercontent.com/translate_c?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://www.uragency.net/index.php%3Faa%3Dnews%26id22%3D4911&prev=_t&rurl=t ranslate.google.com&usg=ALkJrhgfJm50xLNZ38_eh2a5Cx R7e4pj4Q http://translate.google.com/translat...%26tbs%3Dqdr:d CBI confirms the success of his plans to keep the value of the Iraqi Dinar 26/11/2010 14:51 The stability of the Dinar is ready for access to the global economy http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://www.aknews.com/ar/aknews/3 Other links to study: An Economy in a Debt Trap: Iraqi Debt 1980-2020 http://www.thefreelibrary.com/An+Eco...020-a080966039 Five Types of Forex Brokers http://forextrading.about.com/od/typ...ertypes_ro.htm LEAD: Japan's money supply up 2.9% in January+ http://www.breitbart.com/article.php...show_article=1 http://blogs.ft.com/money-supply/201...e-rise-likely/ http://www.iraqwararchive.org/data/jun21/US/nyt02.pdf - Assets of Saddam Hussein Still Missing U.S. Hasn't Accounted For $4 Billion In Seized Iraq Cash http://www.albionmonitor.com/0311a/c...singmoney.html The Crude Wealth of Iraq http://www.auburn.edu/~thomph1/iraq.htm Reconstructing Iraq: Bringing Iraq's Economy Back http://www.meforum.org/736/reconstru...s-economy-back Reconstructing Iraq’s Economy http://www.twq.com/04autumn/docs/04autumn_crocker.pdf Oil in Iraq: The Heart of the Crisis Iraq Index - Tracking Variables of Reconstruction & Security in Post-Saddam Iraq http://www.brookings.edu/~/media/Fil...ex20100107.pdf How are Currency Values Determined? http://ezinearticles.com/?How-are-Cu...ned?&id=467643 Ministry of Finance Department of Economic Development http://translate.google.com/translat...le%26sid%3D736 Short Changed KURDISTAN http://baghdadbulletin.com/pageArtic...article_id=100 The Bank Notes of the Iraq Currency Board http://www.pjsymes.com.au/articles/Iraq-CB.htm HOW MONEY IS CREATED, DISAPPEARS, AND WORKS, AND THE VALUES INVOLVED IN THE PROCESS http://www.vantagequest.org/trees/money.htm Phoenix Odious Debt http://www.odiousdebts.org/odiousdebts/index.cfm Iraq’s Odious Debts http://www.cato.org/pubs/pas/pa526.pdf Iraq Is a Mess. But Germany Was, Too http://www.washingtonpost.com/wp-dyn/content/article/2008/04/04/AR2008040403215.html This chapter compares the results of the operations in the seven cases—Germany, Japan, Somalia, Haiti, Bosnia, Kosovo, and Afghanistan http://www.rand.org/pubs/monograph_reports/MR1753/MR1753.ch9.pdf Iraq War And World War 2 Comparison http://vanrcook.tripod.com/IraqWar.htm The last five are linked together…do you understand how? IMF http://www.imf.org/external/index.htm http://www.imf.org/external/country/IRQ/index.htm United Nations http://www.un.org/ http://www.un.org/en/aboutun/structure/ The World Bank http://www.worldbank.org/ The CIA https://www.cia.gov/index.html World Trade Organization http://www.wto.org/

Technically the term nominal value refers to both the former and current stated value. It generally presupposes a monetary standard that has changed such that the same denominations of money now have different meanings. The expression real value is generally used to translate the nominal value of a former point in time to the nominal value of the current time. http://www.freedomformula.us/articles/the-real-and-nominal-value-of-money/

Historical time frames for currency exchange http://www.scribd.com/doc/35281429/Redenominasi

An explanation on how Iraq can cover a RV of their currency (03-2010) When comparing ratios one must use a common ratio: USD, SDR, or the world currency that academia uses or the ratios are not comparing to any like units. You can not go from USD to Dinars to form a ratio and then say I am comparing a unit of one to .0008. Look for yourselves that currencies are converted to a common currency to do ratios or comparisons. The globe currency is done is USD and the M2 for the World is in USD. Below is just a model, only Iraq knows for sure what their M2 and reserves are. Just wanted to show that the need of a large money supply will go done after a RV. Takes less to buy the same items and extra money supply is disposed of when the IQD is returned back in for the new currency, by the CBI selling Treasury Securities (bonds) to reduce the money supply. In selling those Treasury Securities to the public (including commercial banks, other nations, financial institutions, and the average citizen/investor). The CBI gives you a piece a paper stating that they owe you a certain amount of money in 10 years or 30 years plus interest in exchange for your cash. They give you a slip a paper and take your cash, effectively reducing the amount of cash in circulation. The CBI can also reduce the money supply by raising what's called the reserve requirement. If the CBI raises the reserve requirement on banks, then banks cannot loan out as much cash, and this reduces the amount of cash in circulation and reduces the money supply. The CBI can also raise the discount rate, this is the interest-rate the CBI charge banks for their loans. Remember an excess of money supply is only inflationary if people spend it, and if that spending exceeds the economy's capacity to produce. “People seem to wrongly think that after the RV all of the Iraqi Dinar will be sent back to Iraq and that Iraqi will be required to exchange their own currency for some other nations currency. That is not how the world works. The Iraqi Dinar will be it’s OWN value. Backed by the wealth of Iraq. What do you think would happen if you were to walk into a US bank with a suit case full of dollars and demanded they exchange it for Euros? First off they would give you the same two options. There is no law or requirement that any nation do currency exchange and for good reason, it would destabilize the markets and would drain that nations foreign reserves. So what backs the IQD? The wealth of Iraq itself plain and simple. So there is nothing, to pay for, the IQD itself is the wealth. Hope that helps.” (22a) Saudi Arabia’s GDP is $581,300,000,000 GDP/M2 ratio is 4.33, Net Trade in Goods is $24,560,000,000 and Reserves/GDP ratio is .007 and currency to USD is .266. Iraq’s GDP is $96,600,000,000 GDP/M2 ratio is 3.70, Net Trade in Goods is -$1,389,000,000 and Reserves/GDP ratio is .45 and currency to USD is 1170. We can see that Iraq’s reserves are strong and Iraq’s Net Trade in Goods is in the negative, but with the right investment in oil and other trade related financial sectors by 2012 this figure should be in the positive. (k) Iraq’s GDP growth just in oil in five years should increase to $193,200,000,000 and with estimated revenue generated by reconstruction, natural gas which generates about 15% of oil income, education, medical, science and technical research and development, tourism, retail and agriculture mechanization, poultry projects, and orchard development. Large modern cattle, dairy, and poultry farms are under construction GDP in Iraq could be $289,800,000,000 in five years which is half of Saudi Arabia’s GDP. With that said, Iraq has strong growth potential and strong reserves to support a RV. In turn this would generate more revenue. Speculators can only speculate or buy currency if it is available, so the CBI must set some strict restraints on their currency availability, not as drastic as Chavez did in Venezuela. Iraq can limit there money for trade only to Institutional brokers that are directly connected to the Forex market. Which consists of a consortium of approximately 200 banks. “The market for foreign exchange can be analyzed in terms of supply and demand. Americans demand foreign money (and supply dollars) when they buy things abroad, such as vacations, goods, services, factories, and financial assets. Foreigners supply foreign currency (and demand dollars) when they buy things here, such as vacations, goods, services, factories, and financial assets.” (22) If the world was really concerned about money supply take a look at Japan: “Japan's key money supply gauge rose 2.9 percent in January from a year earlier, as companies piled up demand deposits while remaining reluctant to make fresh business investment amid the slow economy, the Bank of Japan's survey showed Monday. The average daily balance of M2 came to 766.5 trillion yen. Economists polled by Kyodo News had projected a 3.0 percent increase on average.) (2a) Brazil, China and India right now are lowering their money supply by raising their reserve requirement. Brazilian Real M2 in their currency 35,855,505,000,000, China’s Yuan Renminbi M2 in their currency 30,878,521,000,000, I think I see a few trillions here. I wonder if the four mention countries are going Lop their currency or implement other policies, to control inflation and money supply? Brazil starts to mop up $39bn; rate rise likely, February 25, 2010 10:10am The central bank of Brazil has announced a rise in reserve requirements for larger banks, reversing the lower levels permitted during the crisis. Two moves are intended to soak up 71bn reais ($39bn) from the Brazilian financial system:” (1) reserve requirements for time deposits will be raised to 15 per cent from 13.5 per cent; (2) additional requirements for demand and time deposits will be raised to 8 per cent from 5 and 4, respectively. The moves will take place on March 22 and April 9. Brazil joins China and India, which have already begun raising their reserve requirements. The move is expected to be followed by an increase in the central bank’s benchmark rate, currently at a record low of 8.75 per cent - perhaps as early as March (Reuters). (2b) Estimates range from 1 trillion IQD - 3 trillion IQD held by investors like you and me. Yes, that is a lot, a explanation follows below on how Iraq will cover a RV. From CIA World Book - 2009 M2- in USD Ratio of M2 covered by- Reserves USD $10,990,000,000,000 - US .007 $77,650,000,000 $134,300,000,000 - S.A. .353 $39,980,000,000 $171,600,000,000 - IS .330 $56,640,000,000 $26,100,000,000 - Iraq 1.677 $43,760,000,000 What ratios look good, which ratios look bad? I wonder if monetary policy is influenced much by politics, or will Iraq’s ratio M2 to reserves have anything to do with the RV and how fast the CBI can control money supply? The ratio looks promising to me. Not all money owed Iraq from the 1990 War that was seized is back in Iraq’s hands, estimates range from $2 billion - $40 billion. What this ratio means is that reserves can cover Iraq’s M2 1.67 times (more reserves than money supply), compared to S.A ratio covers their M2 at .353 (less reserves to cover money their supply) which is standard. Not bad for Iraq just starting out. Money supply figures are used to predict inflation not value a currency Article IV - Obligations Regarding Exchange Arrangements - IMF This will explain how arrangements are made between countries on agreeing to a exchange rate and a currencies value (3). How Foreign Exchange works Laura writes check number 7776 for $200 and brings it downtown to a foreign exchange bank teller at Credit Suisse to convert it to British Pounds. On this particular day, the exchange rate is exactly USD $2.00 = GBP £1.00. The bank Credit Suisse takes her $200 check, and gives her two £50 notes (and charges her a dollar for the service fee). Meanwhile, at the Credit Suisse branch office in Hong Kong, a customer named Huang has £100 and wants $200, and the bank does that trade (charging him an extra £.50 for the service fee). US M0 still has the $900, although Huang now has $200 of it. The £50 notes Laura walks off with are part of Britain's M0 money supply that came from Huang. The next day, Credit Suisse finds they have an excess of GB Pounds and a shortage of US Dollars, determined by adding up all the branch offices' supplies. They sell some of their GBP on the open FX market with Deutsche Bank, which has the opposite problem. The exchange rate stays the same. The day after, both Credit Suisse and Deutsche Bank find they have too many GBP and not enough USD, along with other traders. To move their inventories, they have to sell GBP at USD $1.999, that is, 1/10 cent less than $2 per pound, and the exchange rate shifts. None of these banks has the power to increase or decrease the British M0 or the American M0; they are independent systems. Factors Affecting Currency Value: If we look at the below and above items that show how money is valued and then ask: what is left for Iraq to do: one would be for Iraq to get a agreement on the value of their money from IMF member nations of the world. Then Iraq can use the IQD to be used as a form of describing the wealth of Iraq and that the IQD stands alone on this fact. (read article 4 above). Last the actual exchange of money and how it works, is a neutral event as explain in last article, above, “How Foreign Exchange works” this will also, show you the paper work countries sign on exchange agreements. You must understand that money supply is used to predict inflation and not used to value money. Other means are to used to value money along with IMF agreements on a monies worth and exchange rates. Factors Affecting Currency Value: (No mention of Money supply) 1. Political Conditions in the Country 2. Economic Situation - This includes factors such as jobs, unemployment, work ethic, infrastructure, inflation and direction of the economy. 3. Perception from Outside - The perceptions and attitudes of other countries toward a country are as important as the reality of the country's actual situation. 4. Demographics 5. National Leaders - The openness, trustworthiness and likeability of visible leaders is a factor. 6. Isolation versus Openness 7. Natural Resources - The kind of and amount of exploitation of a country's natural resources certainly helps create a perception of value, or lack thereof, of a country's currency. Mining of minerals, forests, oil, fish and other resources are considered. Also the level of technology to development these resources. 8. Weather Factors 9. War and Conflicts - With which other country is a country at war, and who is it's allies? 10 . Education - This includes languages spoken, level of computer know-how, Internet connectedness, culture and religion. Scientists, entrepreneurs, authors and inventors are all affected by the type and quality of education in a country (4). When the math is presented correctly Iraq has more than enough reserves to support an RV, but how will the debt service to export ratio (DS/E) and present value of debt plus interest to export ratio affect the sustainability of the rate chosen, is the question. There still is a need for future odious debt forgiveness from the remainder of the Arab nations is vital for Iraq to sustain the new rate. (23) (24) “The expansion of Iraq's production and export capacities from its current level to the projected levels will require substantial financial resources that the country is working on. These requirements have been estimated to range between $18 billion and $30 billion. Debt sustainability represents the ability of the indebted country to fully meet current and future debt obligations without resorting to debt relief, rescheduling or accumulating arrears, and without compromising economic growth requirements.” At one time the ratio was 60 per cent or more of the critical value, and Iraq was classified as moderately indebted; finally, the ratio is less than 60 per cent of the critical value the country is less indebted, which would leave more room for Iraq to handle the market fluctuations especially in oil prices and more monies to support their new RV rate. (4b) In other words Iraq needs enough cash inflows to cover their long term debt, while rebuilding Iraq’s production and export capacities. If you look at the real world mechanics of valuing a currency, exchange procedure and the slow distinguishing of excess money supply, we now have a valid concept in a RV in the real world. “Economists define wealth as one that has “Value in use” and “Value in exchange”, so for Iraq to define more clearly their wealth, Iraq has to start utilizing this concept in practice. However, this does not eliminate the probability of a straight forward Lop redenomination or other events like: Lop rednomination then RV, a straight forward RV, and 10 -1 exchange from New Dinar to Newer Dinar with an RV. Four likely events with a .75 probability of a positive outcome and a .25 probability of a negative outcome. What is left for Iraq to do to complete the circular events in Iraq that will give Iraq a complete financial structure, to help all Iraqis have financial growth. 1.) To focus on non-oil revenues (agriculture, natural gas development, development of resorts, scientific research and development, retail stores, construction, medical, and education) which will help the Iraq sustain a fiscal policy, “keeping in mind the uncertainty surrounding oil wealth.” The Central Bank must meet the additional demand for credit by the banks through the supply of additional reserves of these banks, “this type of borrowing is like borrowing from the central bank and can not rely on oil income alone must develop other economic sectors”. Iraq needs a surplus in the commercial banks in the cash reserves to start this process and for the Iraqi citizen to start using the bank for savings and loans. This might take awhile… 2.) To have the private sector deposits in banks becoming more and more “monetary base, which includes cash source plus commercial bank deposits with the CBI and this funding leads to an equivalent increase the monetary base, in terms of increasing the monetary base leads to an increase in the money supply by the money multiplier”. This will start the fractional banking process , which goes along with #1. 3.) To give the citizens of Iraq that have the second largest oil reserves in the world a sense that the oil is the property of the people, not the government, they will be more determined to hold the government accountable and use the IQD. 4.) Security the number one issue mentioned in all reports: USAID/IRAQ TRANSITION STRATEGY PLAN (2006-2008), Council on Foreign Relation and International Compact with Iraq A Shared Vision A Mutual Commitment and Iraq’s Ministry of Finance. Iraq must have better security for the Iraqi citizens, their banks, their borders, government building to mention a few or no amount of money will increase the activity in Iraq for further future growth. 5.) For Iraq and Kuwait (5% oil revenue goes to Kuwait for war reparations, this is needed to support a RV) to settle their differences bilaterally, the HCL and FIL law. 6.) The elections in Iraq which are directly related to the above numbers 3 - 5. 7.) Complete numbers mention in above article, Factors Affecting Currency Value. (4h) In closing here are few more items that we have incomplete information on to project future monetary policy in Iraq. The amount of Iraq’s debt forgiven by other countries: is the amount on the books yet and how will this affect Iraq’s credit (sovereign) rating or debt to GDP ratio are Iraq’s oil reserves estimates far higher, up to 200+ billion barrels; how will this affect Iraq’s credit (sovereign) rating and how will the first 2 bullet point influence a RV in Iraq the cost of not meeting oil demand in China and India. The future money multiplier for reserves, and how this will influence a RV in Iraq. Also there is disagreement in the theory of money supply that was challenged by “Keynesian economics, but updated and reinvigorated by the monetarist school of economics. While mainstream economists agree that the quantity theory holds true in the long-run, there is still disagreement about its applicability in the short-run.” If it takes awhile to reduce Iraq’s money supply, this should not increase inflation, in the short term. the cost of Iraqi’s suffering and loss of life. (5) Can the Iraqi GOI and the CBI have a expansionary and contracting monetary policy coexist together, this could fight off inflation and lower money supply, but at the expense of quicker expansion that could meet the needs of the Iraqi citizen. (k) http://www.thefreelibrary.com/An+Eco...020-a080966039 (22) http://forextrading.about.com/od/typ...ertypes_ro.htm (2a) http://www.breitbart.com/article.php...show_article=1 (2b) http://blogs.ft.com/money-supply/201...e-rise-likely/ (3) http://www.iraqwararchive.org/data/jun21/US/nyt02.pdf - Assets of Saddam Hussein Still Missing http://www.albionmonitor.com/0311a/c...singmoney.html http://www.auburn.edu/~thomph1/iraq.htm http://www.meforum.org/736/reconstru...s-economy-back http://www.twq.com/04autumn/docs/04autumn_crocker.pdf http://www.globalpolicy.org/componen...185/40510.html http://www.brookings.edu/~/media/Fil...ex20100107.pdf (4) http://ezinearticles.com/?How-are-Cu...ned?&id=467643 (4b) http://www.thefreelibrary.com/An+Eco...020-a080966039 (4h) http://translate.google.com/translat...le%26sid%3D736 (5) http://baghdadbulletin.com/pageArtic...article_id=100 http://www.pjsymes.com.au/articles/Iraq-CB.htm http://www.vantagequest.org/trees/money.htm (22a) (23) http://www.odiousdebts.org/odiousdebts/index.cfm (24) http://www.cato.org/pubs/pas/pa526.pdf Other links: What Does Redenomination Mean? http://www.investopedia.com/terms/r/redenomination.asp A Beginner's Guide to Exchange Rates and the Foreign Exchange Market http://economics.about.com/cs/money/l/aa022703a.htm Dropping Zeros, Gaining Credibility? Currency Redenomination in Developing Nations http://www.unc.edu/~lmosley/APSA%202005.pdf Effects of Redenominating the North Korean Won http://seekingalpha.com/article/176077-effects-of-redenominating-the-north-korean-won A Qualitative Cost Benefit Assessment Of The Redenomination Of The Naira http://www.gamji.com/article6000/NEWS7367.htm

“First, the Iraqi government needs to restructure its economic bureaucracy—the vast Soviet-style apparatus that treats state-owned companies as mere sub-units of Iraqi ministries Second, the jumble of overlapping, contradictory investment laws… Third, Iraqi workers need better (not more) social protection.” http://zunia.org/cat/monetary-and-fiscal-policy/geo/iraq/ What Does Redenomination Mean? http://www.investopedia.com/terms/r/redenomination.asp A Beginner's Guide to Exchange Rates and the Foreign Exchange Market http://economics.about.com/cs/money/l/aa022703a.htm Dropping Zeros, Gaining Credibility? Currency Redenomination in Developing Nations http://www.unc.edu/~lmosley/APSA%202005.pdf Effects of Redenominating the North Korean Won http://seekingalpha.com/article/176077-effects-of-redenominating-the-north-korean-won A Qualitative Cost Benefit Assessment Of The Redenomination Of The Naira http://www.gamji.com/article6000/NEWS7367.htm

Venezuela implements devaluation; creates two foreign exchange rates http://english.eluniversal.com/2010/01/09/en_ing_esp_venezuela-implements_09A3268691.shtml THE MODERN HISTORY OF EXCHANGE RATE ARRANGEMENTS: A REINTERPRETATION* http://www.economics.harvard.edu/files/faculty/51_QJE2004.pdf

Sorry to be negative - but need to let you guys know that this particular currency converter has been showing that for at least two months. It is nothing new.

thanks kent

Thank you for the info

Thank you for the info

Thank you for the info

Good post sivananthankandiah, thanks

OK

Clues to look for before a revalue takes place Before a country re-issues or rednominates a currency the public must be educated on the pending event and the government must keep illegal activity down during the exchange. This education process of both public and government is needed so all parties understand the reasoning behind a re-issue, revalue, or redenomination of the dinar. With this understanding the direction Iraq take will come from their actions of educating the Iraq public and GOI, which should be found in articles coming out of Iraq. Another good place to look for a new rate is in the Letter of Intent Arrangements by the IMF and country receiving the loan. This will give details of the loan, but also can be used to study past loans: like Turkey the Letter of Intent listed exactly, that Turkey had to Lop 6 zeros from their currency. http://www.imf.org/external/np/exr/facts/howlend.htm Some claim inflation will take hold of Iraq after the IQD enters the Forex market, this not so, if Iraq takes a IMF loan they can use the explanation below. Exchange Control Governmental restrictions on private transactions in foreign money or claims on foreign money. Residents are required to sell foreign money coming into their possession to a central bank or specialized government agency at exchange rates set by the government. The chief function of most systems of exchange control is to maintain a favorable balance of payments. . Types of controls that governments put in place to ban or restrict the amount of foreign currency or local currency that is allowed to be traded or purchased. Common exchange controls include banning the use of foreign currency and restricting the amount of domestic currency that can be exchanged within the country. Typically, countries that employ exchange controls are those with weaker economies. These controls allow countries a greater degree of economic stability by limiting the amount of exchange rate volatility due to currency inflows/outflows. The International Monetary Fund has a provision called article 14, which only allows countries with transitional economies to employ foreign exchange controls. http://www.answers.com/topic/foreign-exchange-controls From CIA World Book - 2009 M2- in USD Ratio of M2 covered by-Reserves USD $10,990,000,000,000 - US - .007 $77,650,000,000 $134,300,000,000 - S.A. - .353 $39,980,000,000 $171,600,000,000 - IS - .330 $56,640,000,000 $26,100,000,000 - Iraq - 1.677 $43,760,000,000 What this ratio means is that reserves can cover Iraq

Thanks serpico007

This post was by pacster submitted serpico007 correct? Comments were for pacster. His conclusions: 1.) I whole heartedly believe they are going to lop and re-denominate 1000 to 1 and this is why I believe it

A deductive argument is sound if and only if it is both valid, and all of its premises are actually true. Otherwise, a deductive argument is unsound. According to the definition of a deductive argument, the author of a deductive argument always intends that the premises provide the sort of justification for the conclusion whereby if the premises are true, the conclusion is guaranteed to be true as well. Loosely speaking, if the author's process of reasoning is a good one, if the premises actually do provide this sort of justification for the conclusion, then the argument is valid. There are two ways to value a currency paragraphs 1 and 2 explain what is used in practice and the last sections shows modeling in currency valuation to compare what is used in practice. If we follow the rule of a deductive argument the above article fails in all respects. The correct formulas have to be applied

Central Bank Governor Sinan Al-Shabibi on Monday that the current exchange rate of $ 1170 dinars per dollar is appropriate, and able to defend what we possess foreign cash reserves, noting that adopts a policy of floating the central orbit to determine the exchange rate. The Shabibi told (Voices of Iraq) that the Central Bank of Iraq

In the ongoing debate about the redenomination of the Nigerian currency, some commentators have been using the terms redenomination and revaluation interchangeably, i.e. to mean the same thing. Technically, this is wrong. Currency redenomination is different from both currency revaluation and currency appreciation. In strict terms, redenomination does not increase the “value” (or strength) of a currency in relation to other currencies per se. What happens when a currency is redenominated is that some zeros are dropped in the official exchange rate at “conversion” date, e.g. one US dollar = 1.25 new Naira (NN) = 125 “old naira” (N) on August 1, 2008 (i.e. NN1.0 = N100.00). On the other hand, currency revaluation is an increase in the value of a currency vis-

Here is the conclusion for the New Dinarians that have not read it. The main body is here: http://dinarvets.com/forums/showthread.php?12730-An-Explanation-on-How-Iraq-Will-Cover-a-RV-of-Their-Currency-(From-Outside-Site)&highlight=how+Iraq+will+cover+an+RV If Iraq decides to lop and redenominate their currency what will the reaction of the Iraqi citizen be? We already know that the people of Kurdistan were

Here is my take on the deletion of zeros, without changing any words. This is the introduction Discourse in Iraq: A study of what could be The below articles show that there is counter or dissenting view in Iraq that deletion of zeros

Thanks for the post! I will add one thing here: Several months ago I was pulled aside by a Wells Fargo foreign exchange teller (to whom I had previously spoken about the IQD). She showed me a memo that the bank had sent out - indicating some type of fraud surrounding the sale of the dinar. I asked her if I could hold the letter. She said Yes. I then asked her if I could take a copy of the letter. She said No. Therefore, I can substantiate at least part of the post! (by the way, the "fraud alert" memo held no validity whatsoever!!!) Go RV.

Ken sorry did not see the question about Germany. Lost my link for Germany I will go by my memory. 1st exchange went 10 RM for 1 DM to reduce money supply by 90% 2nd phase internal debt was reduce by… 10-1 ratio, some businesses had a different ratio. 3rd Germany needed to reduce money supply more went 13.5 RM to 1DM 4 During a 90 day transition period saving and checking account had limits on withdrawals until new rate was figured out for the DM 5 Rate agreed upon at 10DM to 1USD, saving and checking accounts still had limits for 30 more days.. I think. 6 1948 revalued at 3.33DM to 1USD Since Iraq does compare themselves to Germany, this could be the surprise move I talk about in my articles … Every million becomes 100,000 times the New Rate. Money supply is dropped 90% and use whatever New Rate you want…lets say .30 to match Germany. 100,000 * .30 =$30,000 not bad. When your retired you have time to think of these things.

Oh... that is the second of three gandkids.