zul

Actually German went thru several 'revaluations', can't remember all but in 1961 and 1969, the intention was to kill the problem of 'imported inflation'.

When a country redenominate or restructure their currency, process-wise ~ there's not much diff between lopping and revaluation. Both will come out with a new set of currencies ~ eventually replacing the old ones. Both currencies will co exist for a specified period of time....etc etc. The only diff is: lopping will have two diff exchange rate; one for old and one for new.... While revaluation ~ will have the same exchange rate for both old and new. So from the news, u can't really tell which way they will be going. Whatever they are planning to do with their currency, i hope they will factor in on how to make good the financial losses of the inflation and war, suffered by their people. (Note: German did that in 1961) * Some unfortunate Iraqis actually suffered financial losses when their bank accounts were frozen, and the gov took/used their money to fund the war.... While some others lost their money to inflations (caused by the war). And.........since they are moving towards open economy, i'm sure their monetary policy will not just focus on domestic behaviour (like from 2003 until now), but will be looking outward as well, taking into considerations foreign pressure and how it will affect their country and citizens. Deleting zeros is supposed to be something huge ~ bringing back glory and pride to the country Iraq. I just don't see that much glory if they are planning on a neutral event. That's why I'm still on this crazy horse.

TQ Chuck, sharing is caring.

Tq 3in1.....🍹

8-22-2019 Newshound Guru Kaperoni Does anyone actually believe the CBI could RV or RI the dinar at 1 to $1 or greater with an excess of 42 trillion dinars in circulation? That is 3x's the worlds money supply. It simply cannot be done. -------------------------------------------------------- Iraq cannot RV because they have 42 trillion dinar in circulation. 😭Loppers' fav. statement. And now Kaperoni's as well. I'd say they are looking at a very narrow angle. I agree, IF (and that is a big IF), IF there are 42 trillion dinar out there, there is no way Iraq could RV. But.....in the financial world, what you see & what you hear is not always what it is. And we have seen too many examples of this over the years. Currency always represent wealth. Almost every country has a central bank that is in charge of managing the wealth/quantity of money in circulation. In Iraq, the central bank is CBI and the currency is, of course, the dinar. But due to its 'position' and limitations (under Art.14), dinar has not actually reach its full potential of a currency as a medium of exchange, a store of value or as a principal measure of wealth. Not yet. And then..... we have the 'glorious' dollar....fulfilling ALL the role of a real money, 'floating' in the Iraqi market, side by side with the dinar. Now..... ~ What if the policy to allow dinar and dollar floating/operating side by side in the Iraqi market IS by design, to transfer wealth from dinar to dollar. ~ What if pitting the dinar with all its limitations ( under art.14) against the glorious dollar is intentional, so that dollar will reign, thus increasing the demand for dollar instead of dinar; giving CBI the much needed space to restructure/rework their currency. ~ What if CBI already have a mechanism (running) that withdraws IQD from the market.....without disrupting their economic lifeblood (i.e their financial sector). And without attracting too much attentions. ~ What if those 42 trillion (or 35 trillion dinar, quoted by others) are not 'out there' already? (Not all of them...) ~ What if those withdrawn dinar are already in CBI's vaults but not technically classified/reflected as CBI's (assets or liabilities). See....there are other possibilities/angles that they have never looked at (most of which are happening right before their eyes) and yet they are waving the flag of NO RV... Bros, anything to add...?

Always......

We have seen circulars/notifications from CBI recently, more than once, reminding commercial banks on the procedures of exchanging currencies (incl. Dollars and Euro)......yeah that's a big deal. And it looks like, they are preparing/expecting massive exchanges in the not-too-distant future. Even if we assumed all the 77% chunky money (in the news) are dinar, I would like to think that most of them are now already sitting in the CBI vaults, as commercial banks reserves ~ collected by the banks, when they (iraqis) exchanged their dinars for dollars. Note: Commercial banks reserves (eventho' they are kept in the central bank vaults) are still considered as M1 (currency in circulation) by the central bank because they still belong to the commercial banks, by definitions.

need to get off this horse first Navira........haha.

Haha....i'm sure some of them DO keep dinar in their homes. What i was trying to say is (re: above post)~ if Iraq were to RV, not all of those 77% will be RVed because I believe large part of the 77% Iraqi currency are in dollars.

Not for long buddy.....

Hi Floridian, If I may, I want to share my opinion on this. But first, let me quote an article on 'chunky' money or "mattress money" 12-12-2015 02:36 PM He revealed the central bank governor on the Keywords , earlier, that 77% of the Iraqi currency traded in the market are chunky in residential buildings, pointing out that "these funds are outside the banking sector." Now......I'm not too sure if all these 77% Iraqi currency 'traded in the market' are all dinars, simply because of the 'dominance' of USD in Iraqi market. Iraqis (as we know it) always prefer dollars for many biz transactions and savings. I would too if I were living in Iraq Why they love USD? Because ~ "We trust the dollar more. The dollar does not go up and down, it is fixed," Even now, many still take whatever opportunities they have to change their dinars into hard currency. At one time, some bank officials, were reportedly, making big money by buying dollars at the bank’s auction at a rate of 1,190 dinars for the dollar and then sell those dollars on the market for 1,250 dinars. All these money quickly becomes 'chunky money' (part of the 77%), meaning they are traded only in the market outside the banking system. So....there u go, my reason on why I don't think most of the 77% chunky money are dinars. Even in the news....they did not mentioned those 77% are dinars, per se, only Iraqi currency. Just my opinion, of course.......

love it..../~ well it certainly will be 'something totally different' from all their previous budgets. *their words* Git up!

😂😊

Same language as their FML...

Rhona & @kwg ~ 🍹. TQ guys. Love...

TQ SB / the good stuff are already in the news, I just break them down.... Hope this news will take us to where we should already be.

Haha Carrello.... but now its time do dance.... 😛

So that's the triggers....../ Been wondering why all of a sudden they have all these interest/news about the reintroduction & re-work of coins.

See u in Maui....... 🍹

1:1. Almost there now......

A sub committee would be able to give more focus on their task. I (too) think they already have a working team, working on this.

Sounds good........ owh my.....this is so tiring, the horse just won't stop.

Navira.....have u seen this following article? Parliamentary Finance of the "Covenant News": the formation of a committee to raise the exchange rate of the dinar against the dollar. 19/08/2019

So.......they have had meetings and discussions with CBI. This must be their aspirations ~ to have exchange rate higher than USD. We know this..... Yep.....but not anymore. Inflations is at all time low now.... There were ready then, they sure are ready now... Why tell us this if that's not the direction. This announcement comes from Finance Committee......~ i think this is part of the process to give notice to the public of what's coming ('suddenly'). Thru previous & various articles, the public have been educated and have been made aware of the project to delete the zeros. Now is the time (justifications) to reintroduce the coins. Great timing. FML gazetted, draft budget discussions (in parliament) in Sept, reconstructions agreements signed......new CBI governor. Alaq going to AMF in Sept......and so many other positivities. Footnotes: The dinar we hold was introduced (officially) on Oct.15, 2003, fully implemented Jan 2004. All jmo......

Iran or Iraq? (resurrect dinar)