TexaSwa

You start with the number you want and work backwards.

JIMILKEY, 500 dinar would = .50 250 dinar would = .25 50 dinar would = .05 Thats how a redenomination (LOP) works.

Concern because of the possibility to delete the zeros of the Iraqi currency By aliraqnews1 Monday, December 6, 2010 12:16 Baghdad: The question of the deletion of zeros from the Iraqi currency of the important issues of concern to the citizen and the economists at the same time and this was useful for the parliament to invite Central Bank Governor Sinan al-Shabibi come to the House of Representatives to discuss this subject, discussed the members of parliament with the conservative set of economic aspects that interest to public affairs, including (to delete the zeros) of the Iraqi currency. The subject of the deletion of zeros from the Iraqi currency and small nominal value while maintaining Bakimiteha cash and purchasing of issues that are discussed in many seminars, as addressed by the statements and press reports, in this context, says adviser to the CBI the appearance of Mohammed Saleh, said that this year will see the start of the process of deleting the zeros , stressing that the bank has completed 50% of the preparations that are working on since 2005. Saleh pointed out that the strategy based on the principle of gradual substitution of the Iraqi currency with another is lower than three zeros, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade. He added that the deletion of zeros from the Iraqi currency will depend on monetary policy, long-term, indicating that this step requires the issuance of legislation and laws before the foot as part of the strategic management of the currency in Iraq. The appearance of Mohammed Saleh, said that the need to delete the zeros come from the "mass Iraqi monetary, which has become too large a product of the stage of inflation lasted about 30 years rose from 25 billion to 21 trillion, "adding that" the largest category of cash is 25 thousand dinars, equivalent to $ 23, while the largest category during the year 1979 and the period that preceded the Iran-Iraq war 25 dinars, equivalent to $ 75 at the time, "Today," the largest Iraqi faction of 25 thousand dinars Atadl only $ 23 with the smallest currency we have is 250 dinars, "and will allow the delete operation" reduce the size of the cluster of cash currency, ie, that the paper of a thousand dinars, turn to one dinar, This means reducing the 21 trillion dinars to 15 billion with coins, metal, and small groups. "Saleh pointed out that the strategy, which purports to Central taken" in line with the Constitution and the economic life of good and facilitate internal transaction, "noting that" part of the margin of the inflation rate of between 1-3 % falls to the large number of cash representing the cost of transactions in the case of the deletion would decrease the cost. "and on the continuing high prices despite the official figures, which refers to the low rate of inflation Saleh explained that" monetary policy is not interested to return prices to square one, but aimed at reducing the rates of increase in prices which were up 32% in 2007, and today dropped those increases to the level of one decimal place around 7% only, "saying the number" a victory for the economic program of Iraq, where there are no important central Iraqi only achieve stability in the general level of prices and stability of the system Financial. adding that the bank would issue treasury transfers of $ 3 trillion dinars during the next few days, to cover the contracts of electricity through the cash reserve legal which is maintained for the benefit of banks his part, sees Hilal miller that the application of such a strategy will not cause economic turmoil, or damage in the local market at the present time, while finding an economic analyst willing Reza Blibl that the timing of the launch of this strategy is not appropriate now, noting that the country's economy must be in a position of strength before the application of those changes. Vimabin academic and an economist at the University of Karbala, the process of deleting three zeros from the Iraqi currency will lead to currency appreciation, pointing out the need for a quiet policy to persuade the citizens and get used to it for a period not exceeding two years. " PAY CLOSE ATTENTION TO THIS PART: "Today," the largest Iraqi faction of 25 thousand dinars Atadl only $ 23 with the smallest currency we have is 250 dinars, "and will allow the delete operation" reduce the size of the cluster of cash currency, ie, that the paper of a thousand dinars, turn to one dinar, Would Adam or Sonny1 or someone "in the know" mind opining on what exactly this means?

Guys, you do not, repeat DO NOT, want a re-denomination. Say it with me: RV-Good... RD-Bad. Thank You.

There has been lots of opining about large investors making a "run" on the dinar if the initial "RV" value is "too low". Why would they wait until the dinar cost them $1 when they could have in now for 1 cent? Thanks in advance. Just trying to understand the reasoning behind this.

If it redenominates the dinar will automatically equal roughly .086 USD by virtue of the decimal place movement. There will be no need for a "RV" in this scenario.

that was good. probably the most promising thing yet.

"Adam" is one of the "intel" espousing, post RV "investment" peddling so called "gurus" the author of the post talks about. Nothing more.

Where did he say RV in OCT?

The men and women of the armed forces have given their lives so that we can make 1000 to 1 on an "investment"? I disagree.

"ILLUSIONS OF GRANDGER" what does that even mean? Oh... DELUSIONS OF GRANDEUR, I'm thinking. Well, this is the guy that brought us "FOR ALL INTENSIVE PURPOSES". And he has friends that are VPs at chase? Riiiiiiight. Farce.

if there is only a 50% chance that you might take a dump today, you should probably see a doctor.

They are EXACTLY as reliable as all the others. Difference with this "conversation" is that it sounds slightly more contrived than others. Oh yeah, I'm supposed to say IMHO, or something.

Does Sonny care to comment since he is being directly contradicted?

The whole "payments due" and "must be paid in usd" angle was used back in march as well. Didn't pan out then and probably will not now.

He no longer has any credibility.

Can we please stop quoting an entire post before a reply? Just use the "ADD REPLY" button at the bottom. Thank you

Does anyone remember when it was "tied to the healthcare bill"? I think that has been my favorite so far.

Not sure how rv will take care of "too much currency". Redenomination ( lop) will.

Remember when it was tied to the health care bill? Seems so long ago.

Iraqis are tired of being poor? People all over the world are tired of being poor. I do not know how people bought that poverty in Iraq had anything to do with this. Pretty sure I know who sold it though. My explaination of a redenomination (lop) is accurate and is how it will happen IF they redenominate (lop). I'm not selling my dinar because I don't really miss the 3k I spent. If I was late on so much as a phone bill, I'd sell in a heart beat, and would recommend the same for anyone who is. If you can afford to hold on for a pie in the sky pipe dream, feel free to join me. That being said, Go Dinar.

Yes, in a redenomination (LOP), the decimal point will slide three places to the left (eliminating zeros) ON THE ENTIRE ECONOMY. On the bills, money held in accounts, value of property, cost of goods and services (cars and food). It is all relative. Iraqis neither lose or gain purchasing power. The end result is an individual has the exact same amount of money relative to the value of goods and services that they had before, and the government has a unit of currency (the dinar) that is more in line with the rest of the world. Im not saying it will happen this way, but it is a likely outcome.

Loco, how do we KNOW this? Ive read claims of such, but nothing more.

For one thing, these "gurus" take a lot of liberty with their interpretations of "delete zeros". That to me sounds like a REDENOMINATION. This is where the decimal is moved on the exchange rate. Problem is the decimal point is moved on the entire economy. Its moved on bills, on money in individuals accounts, on the value of property, and, ALSO ON GOODS AND SERVICES. Iraqis (or Americans holding IQD) have a 1000 times fewer dinar, but goods and services (in Iraq) cost 1000 times less. No gain or loss of purchasing power (in Iraq). Oh, and also, the dinar is inline with other world currencies and a much better fit for international trade. I sincerely hope that this does not happen, but it seems it is what is being described in these articles. Only a fool does not realize that this is at least a possibility.

Great opinion peice. He takes some liberties with his interpretation of “delete the zeros” but I certainly hope he’s correct. 3+ RV would be great. A redenomination would be bad.