Dropping Zeros

[Bat of Darkness]

I just don't get it. Where does the hostility come from? I explained clearly how I got into this, what I thought then and what I think now. Your response is to shovel up another pile. What is the point? I wish I were about to break even, I'll be taking a loss actually (as I think will be the case for anyone that bought around $1200/M ).

It's a rough crowd dvf, although is it big of you to admit you jumped in before your better judgement was ready. We are in the same boat, and sadly...the news stories lend themselves almost perfectly to a variety of interpretations. No one wants their bubbles burst, so don't expect a whole lot of welcome with your revelations.

But we hear you loud and clear, and you have far more agreeing with you than not. What can we say? It's a gamble.

[DAME1]

These are only quotes nothing factual

I don't understand, if people think the out come is an even exchange, why are they here?????

Not talking about you Jay and thank you for that lengthy input

Why would the CBI EVER admit that the dinar will increase in value before it happens?

Why would the CBI go to all this trouble and information to Lop ?

Why would the CBI supposedly be pulling in all the large notes?

Why wouldn't they introduce the lower demons and deal with the exchange simultaneously?

I see one of three scenarios

The dinar will revalue ..this is still my first choice

The dinar will RD ..

Most of the information is completely manipulated

Dame

hoopdog,Not sure why you got negged I totally agree with you. A prime example of this is what Mexico did in 1996 they dropped 3 zeros so your 50,000 peso became 50 pesos, the value changed little if any it's just they went to smaller denominations but you didn't become a millionaire of even gain tens of thousands of dollars overnight.

I think this is good as if they dropped zeroes I would think that would be a good sign for the country and economy and that I would think would cause the currency to gain value slowly overtime but nobody gets rich overnight like so many people seem to think

Uhhhh, wow and look how successful Mexico is :blink:

[dvforumuser]

Why would the CBI EVER admit that the dinar will increase in value before it happens?

They wouldn't, so all the claims that all these articles ARE talking about an RV, must be false (whether or not an RV is planned).

Why would the CBI go to all this trouble and information to Lop ?

I don't see the great trouble. Any big change in a county's currency is a pretty big deal so it will generate a lot of talk. All the more so for a highly factionalized country/government like Iraq. And is it really that much? Articles on mundane topics are not brought here, so what percentage of the actual government news releases relate to currency issues? No idea, but I doubt its really all that much.

Why would the CBI supposedly be pulling in all the large notes?

They wouldn't be and I see no evidence that they are. If they are doing so, then it would make for a big change on the streets but, with all the reporters in Iraq no one seems to have noticed.

Why wouldn't they introduce the lower demons and deal with the exchange simultaneously?

For an RV I'm not sure how it would work. If a huge RV were to occur, then all cash business (which is most business in Iraq we think) would grind to a halt until smaller denominations were available. Even if they are available right away its going to be a day to go to the bank etc, so anyway it happens I think the economy will be shut down for a day. But, so its a 1 day holiday, not a big deal. So this is not a issue (for or against) an RV as I see it.

Uhhhh, wow and look how successful Mexico is :blink:

An RD only takes care of the money supply problems of past hyperinflation. Its no cure-all for all the economic ills of a country.

[starlight]

1 dinar will be worth 1000 dinars = .86 as shown in a news article yesterday...if i can find it, i'll post it

[DAME1]

So are you saying there will be no RV?

[mark_mich266]

Has anyone suggested that "the DROPPING OR RAISING of the three zeroes" could possibly mean that the Iraqis are dropping the zeroes from any NEW notes from now on, i.e. no 25k, 10k, etc., and NOT from the notes we all currently/presumably have at present? I only present this as a possibility. Is it possible that through the translation (Iraqi language to English) this issue was somehow perceived wrongly? Through the years, I have perused the news articles and found myself shaking my head at the horrendous translations that come from Iraq. I've often told my wife that they ought to hire someone from an English speaking country to go over their news stories and correct their stories language-wise. Maybe this is the problem that has so many of you/us wondering what the heck is going on here with the 3 zeroes issue? Anyone..........?????

[2fast4u2c]

I guess we will see in time....

[rulesforrebels]

".00086 [ current value ]

becomes .86 [new value ]

they have to do this so that the new small demon's have any purchasing power"

I would be ok with this if it were the only change!!

im no ecomist so what i say here is probably more assumption and speculation on my part but how did mexico handle their situation back in '96 when they had coins as large as 50,000 and then the largest bill became a 500 note? how did this effect things like buying groceries, the value of the currency overall, etc?

also does anyone know the buying power of dinar in iraq? is it like certain parts of africa where you see people bringing wheel barrows of money just to buy a loaf of bread?

[JayP]

im no ecomist so what i say here is probably more assumption and speculation on my part but how did mexico handle their situation back in '96 when they had coins as large as 50,000 and then the largest bill became a 500 note? how did this effect things like buying groceries, the value of the currency overall, etc?

also does anyone know the buying power of dinar in iraq? is it like certain parts of africa where you see people bringing wheel barrows of money just to buy a loaf of bread?

In Mexico, they actually released the new currency in 1993, allowing for a 3 year exchange from 1/1/93 until 1/1/96. The new notes began printing in July 1992, and was released 1/1/93. The exchange was done by deleting 3 zeros from the currency, and exchanging 1000:1, 1000 old peso (MXP) for 1 new peso (the Nuevo Peso) (MXN). This was a redenomination. The new Pesos was initially the 1, 2, 5, and 10 I believe, and they also had a 5, 10, 20, centavos (cents).

By 1996 they then released 2 additional denominations, a 20 and a 50, and after 1996, the word "NUEVO" was removed from the notes.

This is the link for the Bank of Mexico:

http://www.banxico.org.mx/billetes-y-monedas/billetes-monedas-material-edu.html

Here is a link in the Bank of Mexico site that gives the history of the Mexican Currency:

http://www.banxico.org.mx/billetes-y-monedas/material-educativo/basico/%7B2F8E3719-748C-0954-CCC7-DE85FC684035%7D.pdf

Page 22 talks about the currency change in 1992. It is in Spanish so it would need to be translated. Here is what is says in English:

By 1992, the design another series of coins in denominations of ten, five, two and a weight and cinuenta, twenty, ten and five cents, as a result of the creation of a new unit of the Monetary System of the United Mexican States equivalent to thousand dollars of the previous unit. The new unit I keep the name of "weight" and was adopted in order to facilitate the understanding and management of National Currency Converter quantities, so as to facilitate a more efficient use of computer systems and accounting records. Contrary to the previous currency, the new unit is the prefixed, temporarily, the adjective "new", whose use was eliminated after 1996. Subsequently, two other pieces minted with silver center in denominations of twenty with the effigy Hidalgo, and fifty new pesos, with the Children's Heroes.

As far as the buying power in Iraq, a term I have commonly heard used to explain this, is that it takes about 1000 dinar currently to purchase 2 cans of soda, so they would need a 1000 dinar note for this, or about .86 to 1.00 USD based on the exchange rate.

I hope this information is helpful.

[JayP]

im no ecomist so what i say here is probably more assumption and speculation on my part but how did mexico handle their situation back in '96 when they had coins as large as 50,000 and then the largest bill became a 500 note? how did this effect things like buying groceries, the value of the currency overall, etc?

also does anyone know the buying power of dinar in iraq? is it like certain parts of africa where you see people bringing wheel barrows of money just to buy a loaf of bread?

More info on the Mexican banknotes from the 1992 change as well:

http://www.banxico.org.mx/billetes-y-monedas/material-educativo/basico/%7B73BFFBA0-A0FD-EA40-4B0F-9F9938929289%7D.pdf

Page 13

"In order to simplify the management of national currency amounts, by decree of June 18, 1992, it created a new monetary system unit of the United Mexican States, equivalent to one thousand dollars of the previous unit. Contrary to the previous currency, the new is temporarily placed before the adjective "new", which was eliminated after 1996. The Bank of Mexico issued during 1992, a new series of banknotes in denominations of 10, 20, 50, and 100 in which appears the word "new" prefixed to the name of the unit. These notes, known as Type B tickets are characterized by keeping the design of the previous bills."

[MFNGPTYLTD]

I read in newshound or some where that if they drop the zero's the you will have two years to cash it in then they will be none exsistant or change over either way you do ok the value will be swapped in exchange you get the equivelent value mabe I'm wrong dont panic they used all our money to buy and sell in usa dollars now its their turn to pay back I don't think they will shiy on us the new money won't be prin ted till september we should be RV by then and well off don't panic 2 much what happends happens thats it you win some and loose some that was the gamble to start with but you should not loose ok

[mcjocky1]

I couldn't have said it any better my self. The problome with a lot of these People is they are the first ones to pics apart what comes out from the CBI and are the first ones to bring up the Kuwait RV to justify there stance truly sad. Thanks for having a brain maybe these scarecrows will get one

What's this then, the ( - ) minus appreciation society. I shouldn't really "pics" apart your attempt to communicate, but you seem to have a "problome". dvforumuser can show brain activity but unfortunately has the communication skills of a diamondback rattler, but saying that I think there are signs that he may actually be a nicer person than he tries to portray in his posts. Here's hoping ehhh.

[geman]

You slam me for suggesting that he do a bit of reading (what has he been doing here for a year) since the question he asked has been answered literally thousands of times here? That really is what is bothering you? And did I not go ahead and answer him perfectly correctly? You slam me for being aggressive but, what about your response to me? Are we playing by the same rules?

What makes you think you know my situation so well? Why not just ask instead of doing all this bashing? What are you afraid of that you respond so aggressively with no cause at all?

First, 25M dinars was not a big investment for me, it was the tip top high risk portion of my portfolio.

Second, I of course DID think as you do when I bought them, then I investigated more and changed my mind. I'm far from alone in this scenario. I quite stupidly (and very uncharacteristically) leaped before I looked as much as I should have. But, then again it isn't that much money that I'll end up losing so its not a big deal.

that's all fine but if you truly believe that, Why not sell your dinar for say 1000. per million dinar then you wouldn't lose as much, and you wouldn't have to waste your time on this sight anymore

[dvforumuser]

that's all fine but if you truly believe that, Why not sell your dinar for say 1000. per million dinar then you wouldn't lose as much, and you wouldn't have to waste your time on this sight anymore

I am indeed trying to do so! see the buy sell forum.

[caz1104]

I hear Ebay is one of quickest ways to sell(much larger audience) if selling is your true objective. Best to all

[dvforumuser]

I hear Ebay is one of quickest ways to sell(much larger audience) if selling is your true objective. Best to all

I'm doing that too :-)

[George Hayduke]

Hello DAME1.. here are just a few quotes that would lead someone to say what hoopdog is saying. It is a fact that these quotes were said by representatives of the CBI, Govt, etc, but nothing is definite until the CBI officially states that they have made the final determination, and actually release new notes stating they are deleting the zeros and we need to exchange them for the new notes 1000:1 as stated quoted below....

"And delete the zeros, said the central bank adviser: The category Iraqi monetary deleted, including three zeros, viz (1,000) "thousand dinars," becomes "one dinar" only, as do other categories, and we will exchange large and small"

http://translate.google.com/translate?hl=en&prev=/search%3Fq%3Dnahrain%26hl%3Den%26client%3Dfirefox-a%26hs%3Dbh9%26rls%3Dorg.mozilla:en-US:official&rurl=translate.google.com&sl=ar&u=http://xendan.org/arabic/drejaA.aspx%3F%3Dhewal%26jmara%3D2897%26Jor%3D2

"will be implemented after two years from now, adding that he will include the publication of three large groups: the (200 ) dinars, equivalent to (200) thousand dinars currently, and the category (100) dinars, equivalent to (100) thousand dinars, while the third category (50) dinars, equivalent to (50) thousand dinars, the currency of the current"

http://www.iraqdirectory.com/DisplayNews.aspx?id=18126

"Saleh added that "the three categories include 200 dinars, which is equal to 200 thousand dinars at the present time and the category of 100 dinars, which is equal to 100 thousand dinars, and the category of 50 dinars, which is equal to 50 thousand dinars"

http://alrayy.com/40302.htm

"Iraq Said To Be Planning Currency Overhaul, Redenomination"

"In the longer term, Saleh said a redenomination was needed wherein three zeros will be dropped so that the 25,000-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note."

http://www.rferl.org/content/iraq_said_planning_currency_overhaul_redenomination/24245867.html

"And he said that it "will soon be a new currency through the issuance and cancellation of three zeros from the new currency."

http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http%3A%2F%2Fwww.aknews.com%2Far%2Faknews%2F2%2F273657%2F

"Jubouri: "The process of switching the operation result of the deletion of zeros will cost approximately $ 150 million and Stsamar the switch for two years, including six months to provide the services necessary for the currency and a printer and a half years to change them gradually through the deal."

"Adding that the purchasing power of the new currency will be as it is not undergone any change."

http://translate.google.com/translate?hl=en&prev=/search%3Fq%3Dnahrain%26hl%3Den%26client%3Dfirefox-a%26hs%3Dbh9%26rls%3Dorg.mozilla:en-US:official&rurl=translate.google.com&sl=ar&twu=1&u=http://alrayy.com/30637.htm

Saleh said that "the deletion of zeros and Exchange is the process of administrative reform of the Iraqi currency and therefore does not affect the value of things or change of per capita income," he said, adding that "the fear of people from deleting zeroes longer fearing psychologically, as the deletion of zeros and the currency switch applied in 53 countries including Turkey when removed six zeros from the currency and Romania which omitted four zeroes."

http://www.microsofttranslator.com/bv.aspx?ref=Internal&from=&to=en&a=http://www.alsumarianews.com/ar/3/28598/news-details-Iraq%20business%20news.html

Bump -Good list of sources, thanks

These are only quotes nothing factual

I don't understand, if people think the out come is an even exchange, why are they here?????

Not talking about you Jay and thank you for that lengthy input

Why would the CBI EVER admit that the dinar will increase in value before it happens?

Why would the CBI go to all this trouble and information to Lop ?

Why would the CBI supposedly be pulling in all the large notes?

Why wouldn't they introduce the lower demons and deal with the exchange simultaneously?

I see one of three scenarios

The dinar will revalue ..this is still my first choice

The dinar will RD ..

Most of the information is completely manipulated

Dame

Uhhhh, wow and look how successful Mexico is :blink:

True. I traveled quite a bit in Mexico during the late 80's to mid 90's (love the place as it was back then) at one point I spent close to 800,000 peso's for a rebuilt transmission in Loreto before the RD. It is true they just dropped zeros without adding value but the difference between Mexico and Iraq is (from my point of view) that Mexico was sqaundering it's natural resources whereas Iraq is rebuilding it's infrastructure to capitalize on their vast but underdeveloped resources. If Iraq does RD, I believe the Dinar will still increase substantially. How quickly then, is the real question

GH