Deletion of Zeros 0.00 not 000.

[colbyco]

Cbi 's smoke! current denominations can only work by deleting only 1 zero.

[keepmwlknfny]

Cbi 's smoke! current denominations can only work by deleting only 1 zero.

You just wont let that go huh? If you noticed, the CBI is planning on replacing all denominations so they can pretty much do whatever they want, whether it be 1,2, or 3 zeros being removed.....

[SgtFuryUSCZ]

***///

Hey KEEP!

For a minute there I thought I was checkin' out to make room for your new Princess -

but they glued me back together at the VA Hospital and I'm still here, suckin' up valuable air and takin' up real estate!

Glad to be back and see you're KEEPin' the troops straight! Good response, Son!

Still jungle rules when it comes to CBI.

[colbyco]

You just wont let that go huh? If you noticed, the CBI is planning on replacing all denominations so they can pretty much do whatever they want, whether it be 1,2, or 3 zeros being removed.....

Well they will have to replace the notes with the extra zero,i don't dispute that!But that will take time!meanwhile the old notes can work fine with the absence of one zero.Same as replacing worn notes with new ones.Removing three zeros will overlap the denominations and lead only to confusion for the Iraq people also remember the Cbi has and continues to reduce the money supply. Why do that only to lop? Also removing the three zeros will mathematically create a huge value with a shortage of currency .I don't think the IMF had this in mind when Iraq asked for their help.

[keepmwlknfny]

***///

Hey KEEP!

For a minute there I thought I was checkin' out to make room for your new Princess -

but they glued me back together at the VA Hospital and I'm still here, suckin' up valuable air and takin' up real estate!

Glad to be back and see you're KEEPin' the troops straight! Good response, Son!

Still jungle rules when it comes to CBI.

No need to make room! The princess has made her way home!!

Well they will have to replace the notes with the extra zero,i don't dispute that!But that will take time!meanwhile the old notes can work fine with the absence of one zero.Same as replacing worn notes with new ones.Removing three zeros will overlap the denominations and lead only to confusion for the Iraq people also remember the Cbi has and continues to reduce the money supply. Why do that only to lop? Also removing the three zeros will mathematically create a huge value with a shortage of currency .I don't think the IMF had this in mind when Iraq asked for their help.

Im sorry but I really am not following you....not sure what your saying bud....they will have to replace the notes with the extra zero??

[4aprofit]

I may be stupid or not know squat...but how do you remove (3) zero's from a 50 note, a 250 note, or a 500 note..because these are still listed as the most current viablle currency notes, that have been depicted as the country's currency...now for the last 8 or 9 years by the Central Bank of Iraq...CBI......So why have'nt they removed all of these smaller notes by now, especially if they know they would'nt be good in the future?...What would a 50 note be worth by removing (3) zero's from it?...could it be a negative .17 cents per 50 note?...Hypothetically of course as per my figures, but hilarious at the same time!...lol....

I know, I know...some will say they they will just replace these with possibly newer ultra low denominations like the 1's, 5's, 10's, 20's, etc....which we know that they will most definitely need....but, it does seem stupid to print all of this money, with some of the most advanced security features on it, and then keep it listed for years on your site as THE currency!...Unless it is going to be used alongside the newer ultra lower denominations eventually....like some of their articles have even mentioned?......I guess we will see.....

[keepmwlknfny]

I may be stupid or not know squat...but how do you remove (3) zero's from a 50 note, a 250 note, or a 500 note..because these are still listed as the most current viablle currency notes, that have been depicted as the country's currency...now for the last 8 or 9 years by the Central Bank of Iraq...CBI......So why have'nt they removed all of these smaller notes by now, especially if they know they would'nt be good in the future?...What would a 50 note be worth by removing (3) zero's from it?...could it be a negative .17 cents per 50 note?...Hypothetically of course as per my figures, but hilarious at the same time!...lol....

I know, I know...some will say they they will just replace these with possibly newer ultra low denominations like the 1's, 5's, 10's, 20's, etc....which we know that they will most definitely need....but, it does seem stupid to print all of this money, with some of the most advanced security features on it, and then keep it listed for years on your site as THE currency!...Unless it is going to be used alongside the newer ultra lower denominations eventually....like some of their articles have even mentioned?......I guess we will see.....

Its all about the decimal place my dude.....

500 note becomes 1/2 dinar, 250 becomes 1/4 dinar and so on......

They had to print and issue currency to be used regardless of what the future plans were.....the US basically completed the currency set that was used with Saddam....they only had a 250 and a 10k note....so when we took over, we made a complete set to ease transactions....

You cant predict what exactly will happen in the future....hell Iraq could have gotten worse for all we know and they could have pulled the 500 notes and below and printed even higher notes like 100k or 50k....

[colbyco]

Money supply is the key when taking about dropping zeros.Dropping three zeros will cause such a demand for the new Dinar that the average Iraq citizen poor as they already are won't have any of their own dinar. That will lead them back to the dollar something Iraq is trying to aviod. Three zeros removed would bring the money supply to around 25 billion dinars if you believe they have 29 trillion dinars out there,Still would create a currency shortage,but we all know that 29 trillion dinars is false.More like 3 trillion after years of buying back their own dinars, now try taking three zeros from that figure!Simply can't work period.Taking only one zero makes common sense and have a money supply of less than one trillion.

[drc85260]

Cbi 's smoke! current denominations can only work by deleting only 1 zero.

Where did you ever get they would only remove one zero or one decimal?

Here is another confirmation from the CBI yesterday about removing the 3 zeros not one.

Tuesday 28/02/2012

Deputy Governor of Central Bank: the project to delete the zeros from the currency-based and will be announced as soon as government approval

Baghdad, Description of the Deputy Governor of the Central Bank of the appearance of Mohammed Saleh project to delete the three zeroes from the currency as strategic for the country as it will reduce the mass of cash circulating in the local markets.

Saleh said (of the Agency news) said on Tuesday:

The central bank exceeded the advanced stages in the preparation of studies and preparations logistics task for the project to delete the three zeroes from the currency and within a specific timeframe as a reform project of the Iraqi currency.

He added that in the event of obtaining approval by the federal government on the implementation of the project work will be on the tactical level up and will be announced on its implementation and contract with advertising companies and the media to educate citizens on how to use the new currency and to answer all questions raised by him.

said: that the meetings continued with the relevant committees of the Iraqi economy in both houses of ministers, MPs and we are now awaiting approval from them to get to the final stages of project implementation.

http://www.ikhnews.com/news_view_34362.html

[colbyco]

No need to make room! The princess has made her way home!!

Im sorry but I really am not following you....not sure what your saying bud....they will have to replace the notes with the extra zero??

they will replace all current notes period!but within time.The old notes and the new notes will have the same value except the old notes will have an extra zero,but within time they will be withdrawn from circulation.

Where did you ever get they would only remove one zero or one decimal?

Here is another confirmation from the CBI yesterday about removing the 3 zeros not one.

Tuesday 28/02/2012

Deputy Governor of Central Bank: the project to delete the zeros from the currency-based and will be announced as soon as government approval

Baghdad, Description of the Deputy Governor of the Central Bank of the appearance of Mohammed Saleh project to delete the three zeroes from the currency as strategic for the country as it will reduce the mass of cash circulating in the local markets.

Saleh said (of the Agency news) said on Tuesday:

The central bank exceeded the advanced stages in the preparation of studies and preparations logistics task for the project to delete the three zeroes from the currency and within a specific timeframe as a reform project of the Iraqi currency.

three zeros is what i read! Now instead of questioning me on the decimal,did the article have a decimal point? no! three zeros 0.00 and not 000.

He added that in the event of obtaining approval by the federal government on the implementation of the project work will be on the tactical level up and will be announced on its implementation and contract with advertising companies and the media to educate citizens on how to use the new currency and to answer all questions raised by him.

said: that the meetings continued with the relevant committees of the Iraqi economy in both houses of ministers, MPs and we are now awaiting approval from them to get to the final stages of project implementation.

http://www.ikhnews.com/news_view_34362.html

Its all about the decimal place my dude.....

500 note becomes 1/2 dinar, 250 becomes 1/4 dinar and so on......

They had to print and issue currency to be used regardless of what the future plans were.....the US basically completed the currency set that was used with Saddam....they only had a 250 and a 10k note....so when we took over, we made a complete set to ease transactions....

You cant predict what exactly will happen in the future....hell Iraq could have gotten worse for all we know and they could have pulled the 500 notes and below and printed even higher notes like 100k or 50k....

You fail to see that Iraq didn't print their currency. The US did ! bet you didn't know the Cbi is not owned by Iraq!

[keepmwlknfny]

they will replace all current notes period!but within time.The old notes and the new notes will have the same value except the old notes will have an extra zero,but within time they will be withdrawn from circulation.

You fail to see that Iraq didn't print their currency. The US did ! bet you didn't know the Cbi is not owned by Iraq!

I know Iraq didnt print the current currency.....it was printed by a couple different places....

As far as the money supply goes, dropping the zeros to give them 27 or so billion dinar is very feasible....thats about what they had in circulation when the dinar carried a very high value....the citizens will have no problem getting the new dinar because they will be trading old dinar for the new....thats probly one of the very few ways to get your hands on the new bills so I fail to see how the citizens would have a hard time getting their hands on the new currency.....25 billion in circulation is plenty for a population of around 30 million......that number will grow as the economy grows....

If there was any evidence of there being only a few trillion in circulation then yes, dropping three zeros wouldnt work.....but all availible information backs the CBIs statements of there being over 25 trillion in circulation....

[colbyco]

I know Iraq didnt print the current currency.....it was printed by a couple different places....

As far as the money supply goes, dropping the zeros to give them 27 or so billion dinar is very feasible....thats about what they had in circulation when the dinar carried a very high value....the citizens will have no problem getting the new dinar because they will be trading old dinar for the new....thats probly one of the very few ways to get your hands on the new bills so I fail to see how the citizens would have a hard time getting their hands on the new currency.....25 billion in circulation is plenty for a population of around 30 million......that number will grow as the economy grows....

If there was any evidence of there being only a few trillion in circulation then yes, dropping three zeros wouldnt work.....but all availible information backs the CBIs statements of there being over 25 trillion in circulation....

Do you really think there is 25 trillion dinars in circulation? then can sell you land on Mars? The Cbi won't reveal their true figures ! Just like the "dirty float "exchange rate.The 27 billion dinar money supply would require an exchange rate of more than 3 dinars to 1 dollar in order to be Internationally recognized the true float.If the Cbi were to revalue to 1:1 after dropping the zeros there would be so much corruption trying to get the new dinars that most poor Iraqi simply won't have them especially if everyone knows they will increase in value.These notes would be a Black Market item and corruption would be rampant .So your theory for Iraq's population of 30 million people plus every Tom,**** and Harry not to mention other countries holding dinar as basket currency don't make sense.

[jasondb17]

I highly doubt CBI would accurately state anything or inform the public. Otherwise, people would be going out to buy dinar as much as they can. There is reason to speculate its all smoke as much as believing what is stated. If anything, they need to be negative about it to keep investors like us from investing so much into their currency.

[keepmwlknfny]

Do you really think there is 25 trillion dinars in circulation? then can sell you land on Mars? The Cbi won't reveal their true figures ! Just like the "dirty float "exchange rate.The 27 billion dinar money supply would require an exchange rate of more than 3 dinars to 1 dollar in order to be Internationally recognized the true float.If the Cbi were to revalue to 1:1 after dropping the zeros there would be so much corruption trying to get the new dinars that most poor Iraqi simply won't have them especially if everyone knows they will increase in value.These notes would be a Black Market item and corruption would be rampant .So your theory for Iraq's population of 30 million people plus every Tom,**** and Harry not to mention other countries holding dinar as basket currency don't make sense.

Until there is something substantial that debunks there really being that much currency in circulation, then there really isnt much else to go on....

Your trying to say that they would have to have a 3 dollar rate to be internationally recognized? LOL How did you come up with that?? Iraqs currency has always been pegged and there are no signs of that changing at this time so Im not sure what your trying to get at....

Do you think that when the CBI issues the new currency that they are just gonna hand them out? LOL You wont be getting the new currency unless you have the old (in country) to exchange them for so if that poor Iraqi family only has lets say 50k dinar, they will get the equal amount (value) in new notes so I dont see how anyone would not be able to obtain the new dinar (unless they simply have no dinar period)

Your also speaking as if there are massive amounts of dinar being held by other countries (let me guess, for the RV right?) but you do know what a non-convertible currency is right?

[Darin]

I know Iraq didnt print the current currency.....it was printed by a couple different places....

As far as the money supply goes, dropping the zeros to give them 27 or so billion dinar is very feasible....thats about what they had in circulation when the dinar carried a very high value....the citizens will have no problem getting the new dinar because they will be trading old dinar for the new....thats probly one of the very few ways to get your hands on the new bills so I fail to see how the citizens would have a hard time getting their hands on the new currency.....25 billion in circulation is plenty for a population of around 30 million......that number will grow as the economy grows....

If there was any evidence of there being only a few trillion in circulation then yes, dropping three zeros wouldnt work.....but all availible information backs the CBIs statements of there being over 25 trillion in circulation....

You need to start thinking outside the box a little better. I think you are trying to hard to prove that a R/D is feasible, likely, and possible that you sort of become repetitive with the words you speak. Anyways, the point that I was going to try and make is you mentioned that they roughly had 25-27 $Billion to back their currency before and they desire to reach that moment in time again as they felt prosperous during those times.

Here is the simple problem: We are comparing two periods of time with the assumption of using one figure. I can't remember which year the MOP/MOF uses as their basis, but I know Enoch8 makes a great argument in this area.

Here are the factors your lack to consider:

Global inflation (from when the ID was $3 in comparisson to now)

Costs of living increase (More electronics = more electricity, more cars = higher demand for gasoline, and a higher desire to become a westernized way of life)

Population increase (Populations normally don't go down.... People grow up and have familes and a few kids.. Population on the rise)

Remember, crude was around $15 to 30 per barrel back to the time they value was around $3.

Now, the value of the barrel is higher, the country is exporting a lot more, and instead of a dictatorship-style regime, they're more of a democracy.

Private sectors will grow, natural resources will make the country prosper, and tourism will eventually be on the rise.

GDP growth alone should show us that if they were to R/D they'll end up continously expanding the newly r/d'd currency to meet demand (All to remain stable with their rates)

Doesn't seem to imply how some believe they're trying to go the free-market society / economy style if they're manipulating a pegged rate.

[keepmwlknfny]

You need to start thinking outside the box a little better. I think you are trying to hard to prove that a R/D is feasible, likely, and possible that you sort of become repetitive with the words you speak. Anyways, the point that I was going to try and make is you mentioned that they roughly had 25-27 $Billion to back their currency before and they desire to reach that moment in time again as they felt prosperous during those times.

Here is the simple problem: We are comparing two periods of time with the assumption of using one figure. I can't remember which year the MOP/MOF uses as their basis, but I know Enoch8 makes a great argument in this area.

Here are the factors your lack to consider:

Global inflation (from when the ID was $3 in comparisson to now)

Costs of living increase (More electronics = more electricity, more cars = higher demand for gasoline, and a higher desire to become a westernized way of life)

Population increase (Populations normally don't go down.... People grow up and have familes and a few kids.. Population on the rise)

Remember, crude was around $15 to 30 per barrel back to the time they value was around $3.

Now, the value of the barrel is higher, the country is exporting a lot more, and instead of a dictatorship-style regime, they're more of a democracy.

Private sectors will grow, natural resources will make the country prosper, and tourism will eventually be on the rise.

GDP growth alone should show us that if they were to R/D they'll end up continously expanding the newly r/d'd currency to meet demand (All to remain stable with their rates)

Doesn't seem to imply how some believe they're trying to go the free-market society / economy style if they're manipulating a pegged rate.

How can you try and factor in costs of living when their country was making moves backwards?? Its almost as if the country stood still for over a decade because of the sanctions and Saddam....their economy didnt move forward at all.....its like there was a time warp and the years from 1990 to 2003 just disapeared....

And I was actually talking about there being about 25 billion in circulation....not 25 billion backing their currency.....with a poor nation as Iraq, the demand and need for a larger money supply just isnt there.....they practically have a little more then 25 billion (USD) worth now and its not like they are suffering from a shortage of money......they seem to manage just fine....the money supply will grow with the economy....

[Darin]

How can you try and factor in costs of living when their country was making moves backwards?? Its almost as if the country stood still for over a decade because of the sanctions and Saddam....their economy didnt move forward at all.....its like there was a time warp and the years from 1990 to 2003 just disapeared....

And I was actually talking about there being about 25 billion in circulation....not 25 billion backing their currency.....with a poor nation as Iraq, the demand and need for a larger money supply just isnt there.....they practically have a little more then 25 billion (USD) worth now and its not like they are suffering from a shortage of money......they seem to manage just fine....the money supply will grow with the economy....

Costs of living? Based upon demand... They have to recharge their cell phones some how, right? Its not like they watch televisions that are powered on hopes & dreams. Pretty sure that was less common back when their economy was much better. And I am not accounting for the exact current moment of costs of living, but how they're likely much higher & will be much higher in the near immediate future with the housing development project. They may have remained in the ice-age so to speak, but you know they desire to get updated to be on the same level of the rest of the world. I think they need to account for the potentials costs that'll require.

25 Billion of a total money supply when banks were likely even less used at $3 is even less than what it would be today (in terms of value that backs it).

What were their reserves again? $30 or so billion to back their currency during that time? 20 years ago, $30 or so billion bought a LOT!!!

Heck, even $30 bought a lot... Think back in 1992, $30 likely filled the tank of two vehicles in a family garage. Today? $30 maybe covers a full take for a small ecnoomical vehicle.

Your examples are the band-aid to fix the problem of "right now" but what you lack to consider is the future and how it may play out... If they don't properly prepare for what the future may hold, they may put themselves in a pickle.

I am sure if someone looked at the figures they can determine the population 20 years ago, what it is is today, and what they can expect it to be in 10 years. Bet those #s would be interesting to read.

What about the output of crude? They're seeking a large amount by 2017 to be pumped out of that country..

Everyday they'll likely set a new record on how much they export as it continues to increase

Natural resouces - Natural gas, gold, precoius minerals, & metals. They were not utilized back than... How much of an impact will they have?? Democracy vs. dictatorship - how many more foreign investors will pour in due to the regime change? A lot of unpredictable variables..

[keepmwlknfny]

Costs of living? Based upon demand... They have to recharge their cell phones some how, right? Its not like they watch televisions that are powered on hopes & dreams. Pretty sure that was less common back when their economy was much better. And I am not accounting for the exact current moment of costs of living, but how they're likely much higher & will be much higher in the near immediate future with the housing development project. They may have remained in the ice-age so to speak, but you know they desire to get updated to be on the same level of the rest of the world. I think they need to account for the potentials costs that'll require.

25 Billion of a total money supply when banks were likely even less used at $3 is even less than what it would be today (in terms of value that backs it).

What were their reserves again? $30 or so billion to back their currency during that time? 20 years ago, $30 or so billion bought a LOT!!!

Heck, even $30 bought a lot... Think back in 1992, $30 likely filled the tank of two vehicles in a family garage. Today? $30 maybe covers a full take for a small ecnoomical vehicle.

Your examples are the band-aid to fix the problem of "right now" but what you lack to consider is the future and how it may play out... If they don't properly prepare for what the future may hold, they may put themselves in a pickle.

I am sure if someone looked at the figures they can determine the population 20 years ago, what it is is today, and what they can expect it to be in 10 years. Bet those #s would be interesting to read.

What about the output of crude? They're seeking a large amount by 2017 to be pumped out of that country..

Everyday they'll likely set a new record on how much they export as it continues to increase

Natural resouces - Natural gas, gold, precoius minerals, & metals. They were not utilized back than... How much of an impact will they have?? Democracy vs. dictatorship - how many more foreign investors will pour in due to the regime change? A lot of unpredictable variables..

Are they not doing ok right now with what they have?? Are there shortages of money?? So why wouldnt having 30 billion in circulation do them just fine either??

From what it seems like your saying is that they wouldnt be able to survive with that low amount in circulation if they redenominated.....

[Darin]

Are they not doing ok right now with what they have?? Are there shortages of money?? So why wouldnt having 30 billion in circulation do them just fine either??

From what it seems like your saying is that they wouldnt be able to survive with that low amount in circulation if they redenominated.....

Actually, yes, I am stating that... If their intent was to re-denominate to help de-dollarize, than they're likely going to end up with problems.

Either the de-dollarization will become a failure, or, they'll have a shortage of ID.

Now, the other problems is that they're re-denominating to shrinking their so-called money supply but as their GDP grows they'll go right back to printing mountains of currency again.

Now, if the same % of people continue to use USD and the same % of people use IQD than the re-denomination will really have no negative effect on the economy or the situation but it that not their intent to help increase the demand for the IQD?

Seems like if that is what happens, it is is a failed project...

What is more people run to the USD after the R/D than before? Than it is not just a failure, it is likely a disaster.

Oh transactions are so much easier now! Well it would be better if more ppl used the currency since the demand just plummeted! /end sarcasm

[dvforumuser]

GDP growth alone should show us that if they were to R/D they'll end up continously expanding the newly r/d'd currency to meet demand (All to remain stable with their rates)

So here you agree that there is a relationship between GDP and the value of the money supply. That ratio works for Iraq's economy right now with GDP at something like $70B and the value of M2 around $52B (a ratio in the same ballpark as the US, Saudi Arabia, Kuwait and many if not most other functioning economies). But if you propose a 1000:1 RV you are also saying that that ratio can be blow to pieces by increasing the value of the money supply by 1000x. You can't have it both ways.

Certainly as GDP goes up so to will the value of the money supply. Perhaps both by increasing its size, and the exchange rate. Since an RD does not alter the value of the money supply, if the economy is working now, it will work after an RD as well, with the added benefit of not having to deal with such huge amounts.

Actually, yes, I am stating that... If their intent was to re-denominate to help de-dollarize, than they're likely going to end up with problems.

Either the de-dollarization will become a failure, or, they'll have a shortage of ID.

Now, the other problems is that they're re-denominating to shrinking their so-called money supply but as their GDP grows they'll go right back to printing mountains of currency again.

The CBI will never have a shortage of dinars, they can print all they want. The problem during Sadam's era was that he printed trillions of dinars expanding the size of the money supply by 3000x or so, yet GDP was if anything going down thus you get hyperinflation (the same or lower value divided among 3000 times the number of dinars thus each one is worth 3000x less). There is no problem in adding cash to the money supply or by increasing the exchange rate as long as that increase in the value of the money supply is matched by increases in GDP. Edited February 29, 2012 by dvforumuser

[keepmwlknfny]

So here you agree that there is a relationship between GDP and the value of the money supply. That ratio works for Iraq's economy right now with GDP at something like $70B and the value of M2 around $52B (a ratio in the same ballpark as the US, Saudi Arabia, Kuwait and many if not most other functioning economies). But if you propose a 1000:1 RV you are also saying that that ratio can be blow to pieces by increasing the value of the money supply by 1000x. You can't have it both ways.

Certainly as GDP goes up so to will the value of the money supply. Perhaps both by increasing its size, and the exchange rate. Since an RD does not alter the value of the money supply, if the economy is working now, it will work after an RD as well, with the added benefit of not having to deal with such huge amounts.

The CBI will never have a shortage of dinars, they can print all they want. The problem during Sadam's era was that he printed trillions of dinars expanding the size of the money supply by 3000x or so, yet GDP was if anything going down thus you get hyperinflation (the same or lower value divided among 3000 times the number of dinars thus each one is worth 3000x less). There is no problem in adding cash to the money supply or by increasing the exchange rate as long as that increase in the value of the money supply is matched by increases in GDP.

Very true.....but in a way Darin is right....they haven't had enough currency which is why the amount goes up by trillions every year.....according to the sources anyways.....but I do fail to see how redenominating would hurt the growth because as they are doing right now, they can always just keep printing more which will happen regardless as iraqs economy grows....

[dvforumuser]

Very true.....but in a way Darin is right....they haven't had enough currency which is why the amount goes up by trillions every year.....according to the sources anyways.....but I do fail to see how redenominating would hurt the growth because as they are doing right now, they can always just keep printing more which will happen regardless as iraqs economy grows....

It goes up as GDP is going up. So its a little misleading to say "they haven't had enough" as at any point in time they have about the right amount and right value. Also inflation is in the low single digits at least if not a bit higher so in fact the money supply has been going up a little too fast.

[colbyco]

Until there is something substantial that debunks there really being that much currency in circulation, then there really isnt much else to go on....

Your trying to say that they would have to have a 3 dollar rate to be internationally recognized? LOL How did you come up with that?? Iraqs currency has always been pegged and there are no signs of that changing at this time so Im not sure what your trying to get at....

Do you think that when the CBI issues the new currency that they are just gonna hand them out? LOL You wont be getting the new currency unless you have the old (in country) to exchange them for so if that poor Iraqi family only has lets say 50k dinar, they will get the equal amount (value) in new notes so I dont see how anyone would not be able to obtain the new dinar (unless they simply have no dinar period)

Your also speaking as if there are massive amounts of dinar being held by other countries (let me guess, for the RV right?) but you do know what a non-convertible currency is right?

Guess you just don't get it ! The new currency and the old will coexist untill they retire the old notes.Nobody said anything about exchanging one for the other.In order for Iraq dinars to be Internationally recognized the currency must show their true value and not the dirty float of 1169 dinars to the dollar.They must open their books to reveal it if they want any credibility. Remember they have to reveal those numbers to the IMF in which they owe money.

[dvforumuser]

Guess you just don't get it !

Perhaps it is you that does not "get it".

The new currency and the old will coexist untill they retire the old notes.Nobody said anything about exchanging one for the other.

So if you hold old ones, isn't it rather obvious that you will need to exchange them for new ones to retain your value? Many articles have specifcally mentioned the "exchange rate" of 1000:1 between old and new.

In order for Iraq dinars to be Internationally recognized the currency must show their true value and not the dirty float of 1169 dinars to the dollar.They must open their books to reveal it if they want any credibility. Remember they have to reveal those numbers to the IMF in which they owe money.

You don't think that the IMF/UN/US-fed and others have already been looking at the CBI's books? The CBI is likely the most heavily scrutinized central bank that has ever existed.

[colbyco]

So here you agree that there is a relationship between GDP and the value of the money supply. That ratio works for Iraq's economy right now with GDP at something like $70B and the value of M2 around $52B (a ratio in the same ballpark as the US, Saudi Arabia, Kuwait and many if not most other functioning economies). But if you propose a 1000:1 RV you are also saying that that ratio can be blow to pieces by increasing the value of the money supply by 1000x. You can't have it both ways.

Certainly as GDP goes up so to will the value of the money supply. Perhaps both by increasing its size, and the exchange rate. Since an RD does not alter the value of the money supply, if the economy is working now, it will work after an RD as well, with the added benefit of not having to deal with such huge amounts.

The CBI will never have a shortage of dinars, they can print all they want. The problem during Sadam's era was that he printed trillions of dinars expanding the size of the money supply by 3000x or so, yet GDP was if anything going down thus you get hyperinflation (the same or lower value divided among 3000 times the number of dinars thus each one is worth 3000x less). There is no problem in adding cash to the money supply or by increasing the exchange rate as long as that increase in the value of the money supply is matched by increases in GDP.

http://www.indexmundi.com/g/g.aspx?c=iz&v=65