Deletion of Zeros 0.00 not 000.

[Darin]

Ultimately it will be up to the CBI, but if they are talking about introducing coins, then that right there will reduce the amount of notes in circulation as well as the value....

You are right, it is up to the CBI to determine which route to go. But remember, it still costs money to produce the coinage and it will wear out albeit at a different rate than regular notes.

[pocono]

Thats what I thought it was! LOL.....so you can take your 1000 dinar note and trade for a 1 dinar coin if they RD.....

After exchange fees it might take 2 of those 1000 notes to get one of those new coins..

[Darin]

Thats what I thought it was! LOL.....so you can take your 1000 dinar note and trade for a 1 dinar coin if they RD.....

Sounds like they'll follow a Canadian example

1s & 2s will be both coins/notes

[dvforumuser]

sure, they can bring out new currency without 3 zeroes :

and the old notes will co-exist along with the new ones :

they are not going to say that our 25k notes are bogus

They are not bogus, they will be worth just what they are worth today, $21.44 USD .

"The CBI will introduce three new banknotes: 50 dinars, 100 dinars and 200 dinars. For smaller transactions, the CBI will also issue 1-dinar and 2-dinar coins which Iraq currently does not use."

Question Keep...

If they need to educate the citizens (which seems to be at least a year or two) on the upcoming RD, why would they not bring out a 5 , 10 and 25 Dinar note first?

After all if they are "deleting" 3 zeros off the actual notes it would make it simple enough for an Iraqi to grasp and make the exchange of the currencies much smoother.

So after they RD, the citizens now have to figure out how to exchange a 25K note for.....?

Just curious as to how you would educate an Iraqi on that. Open for anyone to explain, I know my math and this is not the way to start the process. Thanks.

People who have been through currency exchanges and hyperinflation will have no problem understanding that a 25K IQD note can be traded for one 25 new dinar note. Or four of them for one 100 new dinar note, or eight of them for one 200 new dinar note, or eight 25K IQD for four 50 new dinar notes.

[keepmwlknfny]

Well first thing, they do not have a 25 dinar note coming out yet so that math is no good. So an Iraqi, who do not understand much more than how to breathe in and out, gets 25 new dinar coins for his 25K note? Again if you want easy to understand then they should have planned for a 5, 10, 25 dinar note to begin the RD....not that hard to comprehend.

I dont think we give them enough credit as far as how smart they really are.....We assume too much that they have the education of a 6 year old....

I do kind of agree that they could make different denomination bills to make it easier but this still hasent been approved by parliament so nothing is set in stone...seems more like ideas being thrown out there because there have been different articles stating different denominations of bills....

[colbyco]

The denomination of the Dinar today was made with the intent to use it after Iraq was back on it's feet.These denomination were set up from the day they were introduced.Why they waited so long ? because they had to reduce the money supply to match the rv exchange of 1:1.Are they close? i believe so!

They already have the coins and the notes today will work fine as they introduce the new notes.Three zeros removed will shrink the money supply too much so that the value of the Dinar would be worth over 3 dollars.One zero removed would put the money supply in line with the 1:1 exchange rate.This is not rocket science do your math and you will see.

[colbyco]

Ask yourself why is Iraq reducing the money supply? If they wanted the money supply to 25 billion dinars they would and can do it with a stroke of a pen by deleting three zeros, there is no need to buy back their Dinars if they intended to do this. The only logical answer to buying back their Dinars is to reduce the total money supply to reach their objectives which is to bring the money supply down to where they could revalue their currency at a 1:1 exchange to the dollar! Simple math! Now as their economy expands and their reserves grows they can and will revalue the Dinar higher.Remember Iraq is in chapter 7 and anyone or country in that state has to gain credibility all over again.This investment will not make you millions but will give you a gain on your investment.Try not to get confused when Iraq says that you will have to exchange old Dinars for New Dinars! What you should look for is a revalue, that alone would cause everyone to cash in and Iraq will retire the notes you turn in and release the New Dinars, as they please.

[dvforumuser]

Well first thing, they do not have a 25 dinar note coming out yet so that math is no good.

We do not know just what denominations will be released but they have said there will be 5 or 6 "categories", so that seems likely to be 5, 10, 25, 50, 100, 200 plus coins.

So an Iraqi, who do not understand much more than how to breathe in and out, gets 25 new dinar coins for his 25K note? Again if you want easy to understand then they should have planned for a 5, 10, 25 dinar note to begin the RD....not that hard to comprehend.

They HAVE planned for this, and the Iraqi's who have been dealing in cash during a prolonged period of hyperinflation will have no problems with this.

Ask yourself why is Iraq reducing the money supply? If they wanted the money supply to 25 billion dinars they would and can do it with a stroke of a pen by deleting three zeros, there is no need to buy back their Dinars if they intended to do this.

Except that Iraq is NOT reducing their money supply, it is going UP and has been ever since 2003.

[colbyco]

The Cbi is out to confuse you! that is part of their job! they can't let you know what their real intent is, so they put out smoke to confuse you, like removing three zeros without the decimal point, exchanging old Dinar for new, deleting zeros in September, giving examples of today's exchange rate comparisons after the lop,on and on you hear these ridiculous misleading statements.Point taken is that you just have to wait on the outcome! and focus on what makes the most logical sense to you.

[HopefulTxn]

The Cbi is out to confuse you! that is part of their job! they can't let you know what their real intent is, so they put out smoke to confuse you, like removing three zeros without the decimal point, exchanging old Dinar for new, deleting zeros in September, giving examples of today's exchange rate comparisons after the lop,on and on you hear these ridiculous misleading statements.Point taken is that you just have to wait on the outcome! and focus on what makes the most logical sense to you.

It's about the phrases of exchanging old dinar for new dinar, it is when they have been stating that they will be exchanging 1000 old dinar for 1 new dinar that is bugging a lot of people...

I noticed that your join date is about a week ago. How long have you been following the dinar?

[dvforumuser]

The Cbi is out to confuse you! that is part of their job! they can't let you know what their real intent is, so they put out smoke to confuse you, like removing three zeros without the decimal point, exchanging old Dinar for new, deleting zeros in September, giving examples of today's exchange rate comparisons after the lop,on and on you hear these ridiculous misleading statements.Point taken is that you just have to wait on the outcome! and focus on what makes the most logical sense to you.

The CBI has put out a consistent story on the RD. It makes sense for their situation. Nothing out of the ordinary has to occur for an RD to be implemented and work just fine. Its been done many times before by other countries.

If you want to make up stories that they have managed to fool the UN/US/IMF/WTO/WorldBank with dual sets of books. and all the other stuff that has to occur to make an RV plausible (the fed is going to hold massive amounts of dinars and Iraq is selling oil way below market and on and on), then that is of course your choice. Such a thing has never occurred in the history of civilization.

There is no doubt as to which scenario makes the most logical sense.

[rockinrich]

if iraq was gonna redenominate they could have done it by now they are not in the same situation as other country's that have they need to add value to their currency period.

[dvforumuser]

if iraq was gonna redenominate they could have done it by now they are not in the same situation as other country's that have they need to add value to their currency period.

That fact that they could have executed an RD already, even if true, in no way implies they are not going to do so. The government wheels turn very slowly in Iraq. Iraq is also in exactly the same situation as many (not all) other countries that have executed a RD to undo the past effects of hyperinflation. An RD also does not add value to the currency as a whole, its value neutral. It adds value to individual notes and reduces the number of notes in the money supply by exactly the same factor. Its not urgent there is no real hurry. But clearly it is what they are going to do.

[colbyco]

The CBI has put out a consistent story on the RD. It makes sense for their situation. Nothing out of the ordinary has to occur for an RD to be implemented and work just fine. Its been done many times before by other countries.

If you want to make up stories that they have managed to fool the UN/US/IMF/WTO/WorldBank with dual sets of books. and all the other stuff that has to occur to make an RV plausible (the fed is going to hold massive amounts of dinars and Iraq is selling oil way below market and on and on), then that is of course your choice. Such a thing has never occurred in the history of civilization.

There is no doubt as to which scenario makes the most logical sense.

Sorry i don't make stories up! but those same organizations you listed above managed to fool us all! especially the UN and US with weapons of mass destruction!

when it's all about World dominance and Petro Dollars and fraud called Fractional Reserve Banking.The history of civilization was not equipped with Modern day Technology, therefore things once unheard of is possible.Logical sense comes from your own inner ability and not what you read in the papers.

[dvforumuser]

My original post was based on the latest article that came out.."The CBI will introduce three new banknotes: 50 dinars, 100 dinars and 200 dinars. For smaller transactions, the CBI will also issue 1-dinar and 2-dinar coins which Iraq currently does not use."

That's 5 and no 25 dinar. If they were going to RD then it would be simple, they need a 25, 10, 5 for the large notes.

Why make it confusing if they are educating? That's all I was talking about. Thanks.

NEW as in there is no 100,000 or 200,000 note now. Many articles have said the new dinar will have 5 or 6 denominations (that gets translated into "categories").

Sorry i don't make stories up! but those same organizations you listed above managed to fool us all! especially the UN and US with weapons of mass destruction!

Actually the whole WMD case does have a parallel to the RV. The Bush administration was not looking for what the data indicated, but were seeing if each piece of data could be spun into at least not being contrary to WMD existing. Just what the go-RV crowd does.

when it's all about World dominance and Petro Dollars and fraud called Fractional Reserve Banking.The history of civilization was not equipped with Modern day Technology, therefore things once unheard of is possible.Logical sense comes from your own inner ability and not what you read in the papers.

So its your intuition that indicates what is "logical"? To each their own. Fractional banking has nothing to do with an RV and there aren't enough petro-dollars on the planet to cover the trillions needed for the present IQD to be set to $1.

[HopefulTxn]

if iraq was gonna redenominate they could have done it by now they are not in the same situation as other country's that have they need to add value to their currency period.

Unfortunately Iraq is in the exact same situation. The reason for being in that situation may be different, but the result was the same, a currency that lost value and was severely overprinted.

Sorry i don't make stories up! but those same organizations you listed above managed to fool us all! especially the UN and US with weapons of mass destruction!

when it's all about World dominance and Petro Dollars and fraud called Fractional Reserve Banking.The history of civilization was not equipped with Modern day Technology, therefore things once unheard of is possible.Logical sense comes from your own inner ability and not what you read in the papers.

Don't forget that it was easily within the realm of possibilities of Saddam STILL possessing WMD's. Anyone that thinks that he didn't have them should recheck the history of the Kurds being gassed.

My original post was based on the latest article that came out.."The CBI will introduce three new banknotes: 50 dinars, 100 dinars and 200 dinars. For smaller transactions, the CBI will also issue 1-dinar and 2-dinar coins which Iraq currently does not use."

That's 5 and no 25 dinar. If they were going to RD then it would be simple, they need a 25, 10, 5 for the large notes.

Why make it confusing if they are educating? That's all I was talking about. Thanks.

So they would get a 20 and a 5 for their 25,000 note in the event of a 1000:1 redenomination. It wouldn't be a difficult process to quickly understand. Especially if Iraq were to do like other countries and have all prices marked in both currencies for a set period of time.

[Darin]

I dont think we give them enough credit as far as how smart they really are.....We assume too much that they have the education of a 6 year old....

I do kind of agree that they could make different denomination bills to make it easier but this still hasent been approved by parliament so nothing is set in stone...seems more like ideas being thrown out there because there have been different articles stating different denominations of bills....

I don't think many of us think that they're not intelligent, but more than likely confused just as much as we are. They may not be privvy to accessing the web like we are. They may not even heavily discuss the situation like we do here. They may hear it, think about it, and go on with whatever they're doing. I am sure if a contradiction media article or type of news is released, it may leave them confused.

We do not know just what denominations will be released but they have said there will be 5 or 6 "categories", so that seems likely to be 5, 10, 25, 50, 100, 200 plus coins.

They HAVE planned for this, and the Iraqi's who have been dealing in cash during a prolonged period of hyperinflation will have no problems with this.

Except that Iraq is NOT reducing their money supply, it is going UP and has been ever since 2003.

How do we know that with the recent substantal increase in demand for USD has not given the CBI the ability to reduce their supply?

USD is going out, something has to be exchanged for it...???

if iraq was gonna redenominate they could have done it by now they are not in the same situation as other country's that have they need to add value to their currency period.

They could have.... Easily, whenever they have pleased with the approval of the GOI on their plan.

They reference Turkey, and as soon as Turkey hit below 10% inflation, "Boom" they did their R/D.

W/ the CBI, years have surpassed with low inflation - yet they expand the money supply & fail to raise the rate. (I find that interesting)

Unfortunately Iraq is in the exact same situation. The reason for being in that situation may be different, but the result was the same, a currency that lost value and was severely overprinted.

Don't forget that it was easily within the realm of possibilities of Saddam STILL possessing WMD's. Anyone that thinks that he didn't have them should recheck the history of the Kurds being gassed.

So they would get a 20 and a 5 for their 25,000 note in the event of a 1000:1 redenomination. It wouldn't be a difficult process to quickly understand. Especially if Iraq were to do like other countries and have all prices marked in both currencies for a set period of time.

A previous regime went crazy with the printers. The old regime took over the banks and basically nationalized it. (Well that means the bank was not owned by the Fed, hmmm).

Now, we are seeing a dictatorship style government that has converted to a democracy.

I think LOP experts should research how many re-denominations occurred after a government change and a bank ownership change.

So, the money supply was expanded quickly over the years and the newly printed money took value from the existing cash. Those holding the cash, held it while it lost value. Those people lost wealth, no matter how you look at it. Now, the CBI intends to swipe the pen on a few documents & bring the value to what it once "was" as if it is restoring wealth? No, it isn't restoring wealth, it is restoring a previous rate.

Its like you have a balloon, that inflates rather quickly and someone pops it and its back to its original volume. I think the CBI should look to try and use the value that was lost over time to put it back into the currency. Easiest solution over a R/D is simply to raise the value slowly and as quickly as they feel possible. I think that is fair.

Heck, the gov. officials were likely the ones holding large amounts of IQD and lost the majority of the wealth, so they understand that they want to regain what was once lost.

[dvforumuser]

How do we know that with the recent substantal increase in demand for USD has not given the CBI the ability to reduce their supply?

USD is going out, something has to be exchanged for it...???

It was just a brief change, so a few hundred million dollars. No where near enough to make even a tiny dent in the 10s of trillions of dinar. Consider that if we are only looking at lowering the dinar in the money supply to raise the rate proportionally then to get a 10x rate increase (to about one penny) then there has to be a 10x decrease in the money supply. So 90% of dinars in the supply say last year would have to be gone now (and the CBI would have to be falsifying their books as well of course). No way can that happen without folks taking notice and that is only to RV to 1 penny.

[srdedeaux]

Man Keep really knows how to KEEP a conversation going even if it doesn't make any sence..............! B)

[Darin]

It was just a brief change, so a few hundred million dollars. No where near enough to make even a tiny dent in the 10s of trillions of dinar. Consider that if we are only looking at lowering the dinar in the money supply to raise the rate proportionally then to get a 10x rate increase (to about one penny) then there has to be a 10x decrease in the money supply. So 90% of dinars in the supply say last year would have to be gone now (and the CBI would have to be falsifying their books as well of course). No way can that happen without folks taking notice and that is only to RV to 1 penny.

Uhm, what about the articles that had stated $200 million leaving the country every day through the black market.

Hmmphf, not sure I buy that..

Locals & foreigners dump IQD for USD, what is it going to do? Decrease supply -

[colbyco]

NEW as in there is no 100,000 or 200,000 note now. Many articles have said the new dinar will have 5 or 6 denominations (that gets translated into "categories").

Actually the whole WMD case does have a parallel to the RV. The Bush administration was not looking for what the data indicated, but were seeing if each piece of data could be spun into at least not being contrary to WMD existing. Just what the go-RV crowd does.

So its your intuition that indicates what is "logical"? To each their own. Fractional banking has nothing to do with an RV and there aren't enough petro-dollars on the planet to cover the trillions needed for the present IQD to be set to $1.

Fractional banking has nothing to do with an RV ??????? what!!! How will the average Iraq citizen finance their new cars, homes etc? fractional reserve banking will expand the money supply.

[Darin]

Fractional banking has nothing to do with an RV ??????? what!!! How will the average Iraq citizen finance their new cars, homes etc? fractional reserve banking will expand the money supply.

Makes you wonder how much is claimed by the books due to fractional banking. See, I'm not up to par on the exact details of fractional reserve, but I understand the concept.

With all that said, the idea of fraction banking and the requirements held to 10% to be allocated for reserves

An example would be that if a customer deposits 10,000 the bank is allowed to loan out 9,000.

So, for the existing 10,000 deposited in the banks, does that mean the money supply went up an additional 9,000 just because of fractional banking?

I think I recall an article stating that a lot of the banks were hesistant to do any lending. I wonder if those #s are being written on the books & accounted for under the policy. Could be the manipulation to expand the money supply within reason/law.

[keepmwlknfny]

Man Keep really knows how to KEEP a conversation going even if it doesn't make any sence..............!

Makes perfect sense if you have been following what the CBI has been saying....

Fractional banking has nothing to do with an RV ??????? what!!! How will the average Iraq citizen finance their new cars, homes etc? fractional reserve banking will expand the money supply.

Well the CBI doesnt use fractional banking to back the value of their currency....sure it will expand the money supply but thats at the commercial level and even then, there are a bunch of banks that practice islamic banking/sharia law and they dont use fractional banking at all....

[MD34]

Whenever this is done...It'll be clear as the night is day.

I admire the confidence of all involved...Don't change.

[dvforumuser]

Fractional banking has nothing to do with an RV ??????? what!!! How will the average Iraq citizen finance their new cars, homes etc? fractional reserve banking will expand the money supply.

Yes fractional loan practices do expand the money supply. What is the RV relationship? After a 1000:1 RV Iraqi's would not need to borrow, they'd be rich. The price of stuff isn't going to go up by 1000x, Iraq would go out of business if that happened. Iraqi's are much more in need of loans now. Though banks in Iraq may not be following fractional banking in their lending practices.

Can you explain how the Federal Reserve gave out over 16 Trillion dollars to private banks for bailouts? Hmmm, where did they get all that currency?

The fed did not give it out, the US Treasury gave it out and they did so by selling bonds (i.e. putting us more into debt). It isn't a question of the feds ability to create money (physically or electronically). They can do that with dollars just like the CBI can do it with dinars. But the CBI can not create dollars, and they are they ones that would need many trillions if they were to claim the dinar was worth 1000x its current value. Petro dollars are what countries pay Iraq for their oil, now about 65B a year, maybe 100B in 2012 and I think Iraq has claimed they are shooting for more than $300B by 2015. All ambitions, but way way way short of even 1T, let alone 10s of Trillions, let alone NOW. Edited March 2, 2012 by dvforumuser