doctor robbins

It does matter because of the constant articles referring to deleting the zeros. The OP asked what it means. Dr. Shabibi said that it means a re-denomination. It doesn't matter where he is, the definition hasn't changed. The articles are referring to a revenue neutral exchange.

To the contrary. My comment wasn't about what the CBI will do. It was about the definition of delete the zeros. Dr. Shabibi's qualifications and expertise haven't changed just because he was removed. I think the man knows more about economics and exchange rates than anybody here. He said that delete the zeros means a re-denomination.

I'm wondering if we're watching the same video? I didn't hear Shabibi say that Iraq will have the strongest currency in the Middle East. I heard Shabibi say that they want a stable exchange rate. How can you have a stable exchange rate and raise the value from a tenth of a penny to over $3 at the same time? I think Dr. Shabibi is as good an authority as any. He said that delete the zeros means a re-denomination.

The OP's point is valid. You can't have it both ways. You can't say that the dinar is worth whatever Iraq says it is and then say that it's worth what the market says it is.

sandstorm is right. Stryker would have more credibility if he would just admit that removing three zeros is a re-denomination. He can say he doesn't believe that they will do it and his guess would be as good as anybody else's. But when he tries to say that 2+2 isn't 4 he loses credibility.

That's my point. Somebody who claims to be a banker should know how to do an equation like this. They should also know that a currency isn't going to appreciate from 1166:1 to 1:1. And for the record I never made the claim that I'm a doctor. I just use that name like possum uses his and thug uses his and like a hundred other posters do.

The idea that the US dollar is not backed by anything is wrong. It's not backed by a tangible asset like gold but it is backed by financial instruments and debt. The dinar is not. It's a pegged currency of an unstable country with an oil based economy and it is backed by Iraq's foreign currency reserves. Comparing the dinar to the US dollar is like comparing a donkey to a Maserati.

CNN has something called iReports where readers can submit "stories" that may eventually end up as real stories. More than once I've seen some dinar pumper post something there and then people claimed it was reported on CNN. That's probably what happened here.

You're a banker and you calcluated Iraq's gold reserves at $1.25 trillion?

It sounds like a lot to people who aren't good at math, which would include most dinar investors.

History doesn't back up the idea that we fight wars, then revalue their currency of the country we defeated and cash in trillions as a result.

I'm one of those people who points out that the removing zeros articles are talking about a re-denomination. This is the first article that I remember that actually describes a revaluation. He's probably not talking about the kind of revaluation that some of the gurus describe but it does sound like he feels that the dinar's value should be increased. Since he's talking about the increase in the reserves I'm assuming that he's only talking about a 10-20% increase. Still, an increase is an increase. The question now is whether he has any influence, and if so is he the only one with influence who has this opinion? There's no evidence that China or any other country has trillions of dinar. They've never said that they would not lop. They've said the exact opposite. There are several statements where they said that they would re-denominate and described a lop.

The dinar is not really a fiat currency. It's pegged and must be backed by their foreign currency reserves, not oil. The don't have enough in their reserves to RV anybody into wealth. That's why the get rich RV is considered a scam.

I agree that $.10 isn't possible. With 33 trillion in circulation that would make their base equal to $3.3 trillion and they only have $70 billion or so in their reserves and a GDP of around $150 billion.

Can you show us any example of a currency that added zeros due to hyperinflation that regained its former value through appreciation rather than re-denomination?

Nobody can say for sure what the exchange rate was prior to 2004 because Saddam set the official exchange rate at $3.22 which was completely unrealistic. When Bremer issued the IQD the rate was around 1480:1 or $.00067 as I recall.

That's not a news article and it has nothing to do with the dinar. It's a hype piece put out by a division of NewsMax called Money News. They market doomsday investment ideas to right wing readers of NewsMax. You can do a Google search to find that NewsMax has a history of mixing news and investment publications.

You are mixing the concepts of revaluation and re-denomination. When a currency re-denominates it affects all prices and values based on that currency. If you had 50 billion lira in a t-bill prior to re-denomination it would have become worth 50 thousand of the new lira which would be worth around $33,000 after the currency change. I doubt that you had enough money to hold 50 trillion of the old lira as it would have been worth about 50 million of the new lira or about $33 million. tenmillion is right. There hasn't been any reduction of the money supply in Iraq. The articles that have been mentioned as evidence that there has were just misinterpretations from gurus and pumpers. If you look to the CBI website for the official value of the dinar you should also look to it for the official money supply.

It would mean that the new currency would be worth .86 but not the dinar held by investors. That was an excellent post, fib. Every investor should read it.

They are printing new currency just to RD. That's what an RD is. You can't RD without a new currency. Of course you can issue bills with a different design or a different language, but that's not an RD. Our currency has changed many times over the years. There was the Kennedy half dollar and the Susan B. Anthony dollar. They're constantly changing and adding things to fight counterfeiting. But that doesn't mean that the dollar has re-denominated. Iraq has announced that they're going to re-denominate which requires a new currency with a new ISO code and a different exchange rate. When the announcement was made the Kurds insisted that the new currency have their language included. How will they buy a loaf of bread if they RV without printing up new lower denominations? The same way they do it now. If a loaf of bread cost 3500 dinar they could buy it with four 1000 notes and get a 500 note change. If they revalue by 10% the loaf of bread would cost the same if it was produced inside Iraq because the revaluation only affects the value vs. the US dollar and other currencies. If it came from outside of Iraq then it would cost 10% less so it would be about 3150 dinar. That could pay for that with three 1000 notes and three 50 notes or three 1000 notes and a 250 note with two 50 notes in change. Even if they RV by 100% they could use their current denominations and pay for that loaf of bread with one 1000 note, a 500 note, and a 250 note. If you're thinking that they're going to RV to $1 then obviously they would need new denominations but an RV to that amount is not possible.

They are not printing the new currency just to include the Kurdish language. They could have done it years ago if that was the only purpose. They're printing the new currency as part of their currency reform, and the Kurds are insisting that the new currency include their language. The holdup was parliament's approval of the currency reform.

Exactly. You don't issue a new currency with a revaluation. You issue one with a re-denomination.

At a penny the dinar would have increased in value 1000% which is about 25 times the largest revaluation ever. Considering how unstable Iraq is and how large their money supply is that's not likely to happen.

Whether the dealers are selling the lower denoms are not their value has gone up beacuse of the hype. And if somebody is offering a higher value for them than $.00086 it's because they can resell them for more and make a profit. Why would they remove larger denoms from circulation? If they don't RD there would be no reason to remove them because the lower denoms aren't very valuable. The 500 notes are only worth 43 cents and the 50s are less than a nickel.

Dinar Diddy had a lower denomination promotion a couple of years ago. The pump was that the larger notes might be removed and the lower notes would remain in circulation and inherit the higher value. It was all BS but it drove the price up.