CBI PLANS TO ISSUE REVALUED NOTES

[dvforumuser]

Ok. After reading what ever one has said about this article, here is what I have have gained:

1. The IQD may LOP and our 25,000 will exchange for 25 IQD.

2. It may not LOP, but the 000s will be moved from circulation.

3. By the exchange of the 000s, the IQD will increase in value (whatever that will be).

4. If I have 1mil IQD, which I purchased for approx. $1,000 USD, I could breakeven.

Just so you understand (not looking to be the bearer of bad news but..) You are unlikely to break even if it just RDs. That means the value of your 1M IQD does not change. Its currently worth $860. The only reason you were willing to buy it for $1000 is that you think it might soon go way up. Once the RD is in full swing this hope will be dashed and no one is going to pay more than the official rate, and in fact to cover overhead and make a profit they will be paying LESS than the going rate. If a bank will take them you might get close to $860, dealers at this point in time might only be paying $700 or even less. So if it only RDs, you will likely loose money. You only have $1000 invested so loosing a couple of $100 hopefully isn't a big deal.

[hame55]

"The process of removing zeros from the currency will contribute to dealing better with inflation, facilitate economic cooperation

with international banks and reduce the differences in [standards of] living in society," Abtan explained. Mahma Khalil, another

Member of the Iraqi Parliament and official spokesperson of the Economic Committee says an agreement has been reached about

the mechanisms of introducing the new banknotes after a series of meetings and discussions with the CBI Governor Dr. Sinan Al

Shibibi.

. He added the exchange rate between the new banknotes and the old ones would be 1:1,000.

The objective behind this move is to appreciate the value of the Iraqi dinar against the U.S. dollar, which would in turn increase

the balance of the Iraqi dinar and would also help facilitate

payment systems and control the banking transactions in the country.

OK - first off, we need to get this very explicit articles to the new translator we got Friday. This is an excellent one to examine closely.

Secondly, as usual it contradicts itself - there are RV lines like this:

"Supporters of the idea believe the introduction of the new banknotes will help reduce inflation, strengthen the Iraqi dinar in

the international market, facilitate trade with international banks and other financial institutions, as well as reduce the social gap

between classes."

IMO the classes reference means RV - how would an LOP help the lower classes move up on the economic scale? If they have a 5000 dinar note stashed, and it become 5 dinar, even if it is worth 5 dollars, it doesn't lift them out of poverty. They can't buy crap with that.

If Iraqis have more dollars than dinar, I can see this RV going down at a low rate without too much social/economic disruption.

And there are contradictory LOP statements like this:

"The introduction of new banknotes and withdrawing the current

ones from the market is generally expected to reduce and control the number of dinars in circulation"

Reducing circulation and number of banknotes means deleting zeros from currency - just withdrawing the high zero denoms by having people turn them in would not reduce money supply if they are switched out with 25 - 1000 dinar notes for every 25K note. Actually more notes on the market this way, and the same amount of currency in circulation. Not good.

Conclusion - we are no farther along with this article than we were before, in terms of new information. But it's good to see such a straight-out explanation - even if these articles continue to be ambiguous.

[alan_coaks_3]

sounds like an RD to me the way they keep putting out deleting the 000 articals

[hame55]

The entire plan may not be laid out for us, but we know that the dinar has to appreciate against the dollar, or there would be absolutley no reason what so ever to mint a one or two dinar coin....or printing smaller paper denoms...they would be useless without a wheelbarrel!! Go RV!

You guys.....think this through. It' still AMBIGUOUS!

They'll need lower denoms for an LOP too, as well as an RV. It doesn't just mean RV. I don't want an LOP, believe me, but it goes both ways.....

this is not a red denomination article!!! maybe you should re read it! they specifically say that this action will INCREASE the value of the iraqi dinar against the us dollar, a re denomination doesnt do that, but a RV does!!!

Key here is HOW it will appreciate the dinar to the dollar. If they RD, shrink the money supply, it will increase the value of the dinar. Period. Then a small 400% RV later will do increase it further. So an RD can increase the value of the dinar, though not right away.

This is a poisonous, terrible outcome and we don't want this.

[amhvl]

afternoon amhvl, yeah but we're going to need that real big home with that real long dining room table remember. .

So you are talking "banquet hall" as opposed to "dining room"...

[Patriotic_mess]

This is the key phrase, the exchange rate between old and new is 1000:1 . 1 new-dinar = 1000 IQD .

No. It says nothing about the dollar exchange rate. old to new is 1000 to 1. So if the rate goes up for old it goes up for new as well. If 1 IQD becomes worth 0.0009 USD for example, the 1 new dinar would be worth 0.90 USD instead of 0.86 USD. This is the article on the OP right? Where does it say anything like "old notes give 1000 times its value"?

What? Its old to new, is 1000 to 1. If a 1000 IQD note traded for 8 or 9 new 100 notes that would an old to new exchnage of 1000 to 800 or 1000 to 900 , where did you get that? The articles have said it a zillion times, old to new is 1000 to 1.

I guess it comes down to which way you think the 1:1,000 is going, I think it means a 1,000 IQD note will give you ten 100 IQD notes. But I see your side of the argument and how the 1:1,000 could mean one 1,000 IQD note will give one new 1 IQD note.

By the way I hope this thing RV's before you sell all of yours, I wouldn't want you to miss out on the party!

[dre396]

So, if you have a 1,000 dinar and trade it in for LDs, you would receive (1,000) 1 dinar notes? If you have a 25,000 dinar and trade it in for LDs, you would receive (1,000) 25 dinar notes. This would be the way that both the LDs and the 3 zeroed denoms could coexist at least until they collect all the 3 zeroed denoms off the street. So, if a set of dishes used to cost 25,000 dinar, now they would cost 25 dinar. Does anyone else read it this way?

no if it comes out at 1:1000 like its stating u would get 1 new dinar note for your current 1,000. if it came out 1:1 then your 1,000 note would be worth 1,000 new 1 dinar notes. divide what ever u have by a thousand and that is what u would come out with at 1:1000. And as far as how they would co-exist its a way for the new and old notes to co-exist. a current 25,000 note would be worth 25 new dinars. so u could use either one and they would both be worth the same amount and the cbi could pull all the big note out of circulation.

Edited March 11, 2012 by Markinsa
Repaired Quote Box

[HopefulTxn]

Yeah you right, I was a little tired last night but I too remember reading the same article about 2013, but yet another said March or April I can't remember but I did read it. Not going to go back and find it to quite yet as I just found out something that may bring more light into this subject but I need to check it out first!

Now as for the CBI, I already know this as I told yota just a few days ago I went to the CBI site to review the time table as I was the one that posted it here on DV in the first place. As for the time table you bring up for implementation of the intricate system, 2 months is nothing in the high tech world and is not like they need to developed the software it is being used worldwide now. Watch the Drew Brees commercial it shows that it is there and operating now. All it is is a proven cell phone app, no re-inventing the wheel....

Ok.. The bidding process ended mid February... They still would have to make the selection, agree on contracts, assign travel visas and arrange transportation for the needed personnel, import the necessary equipment, and a whole slew of other things long before they get to implementation to the general public... The security testing alone after integrated to their systems could take weeks... Agreed that it is not reinventing the wheel, but they do have to build the infrastructure and security for it there...

Not sure what Drew Brees has to do with anything though... Could be wrong, but I doubt he is doing commercials for Iraq...

[dvforumuser]

I guess it comes down to which way you think the 1:1,000 is going, I think it means a 1,000 IQD note will give you ten 100 IQD notes. But I see your side of the argument and how the 1:1,000 could mean one 1,000 IQD note will give one new 1 IQD note.

A 1000 IQD note WILL give you ten 100 IQD notes, no question about that. So those two have to be worth the same amount as well. If you trade in the 1000 IQD for dollars that has to be the same amount of dollars that you would get for the ten 100 IQD notes. Within a currency the notes can't have different exchange rates, otherwise accounting doesn't work. You don't total up sales in numbers of notes but in total dollars or total dinars.

By the way I hope this thing RV's before you sell all of yours, I wouldn't want you to miss out on the party!

thanks, they better hurry!

[Stryker365]

Ok.. The bidding process ended mid February... They still would have to make the selection, agree on contracts, assign travel visas and arrange transportation for the needed personnel, import the necessary equipment, and a whole slew of other things long before they get to implementation to the general public... The security testing alone after integrated to their systems could take weeks... Agreed that it is not reinventing the wheel, but they do have to build the infrastructure and security for it there...

Not sure what Drew Brees has to do with anything though... Could be wrong, but I doubt he is doing commercials for Iraq...

That's funny, I did make it seem that way "Drew in Iraq".. , sorry not what I meant, the technology is available.

The cell phone banking doesn't need to be up in running for an RV anyway so no need in debating it anymore but I would bet that it's ready to go. I just talk to my translator Khoury and he talked to a friend in Erbil, Iraq late last night that told him he had seen an advertising on cell phone banking...no link...no need...you're probably right!

[keepmwlknfny]

You guys.....think this through. It' still AMBIGUOUS!

They'll need lower denoms for an LOP too, as well as an RV. It doesn't just mean RV. I don't want an LOP, believe me, but it goes both ways.....

Key here is HOW it will appreciate the dinar to the dollar. If they RD, shrink the money supply, it will increase the value of the dinar. Period. Then a small 400% RV later will do increase it further. So an RD can increase the value of the dinar, though not right away.

This is a poisonous, terrible outcome and we don't want this.

Yep.....

I wish more would spend a little time reading outside these forums to find out what RD really involves.....it would help clear alot of the confusion....deleting the zeros is definately what we dont want.....

I would be more encouraged if they were talking about 1 or 2 zeros but taking away all 3 leaves us back where we started.....I still have hope that parliament comes to their senses and boots this bill out!!

[HopefulTxn]

That's funny, I did make it seem that way "Drew in Iraq".. , sorry not what I meant, the technology is available.

The cell phone banking doesn't need to be up in running for an RV anyway so no need in debating it anymore but I would bet that it's ready to go. I just talk to my translator Khoury and he talked to a friend in Erbil, Iraq late last night that told him he had seen an advertising on cell phone banking...no link...no need...you're probably right!

I figured that was what you were meaning, but was a little curious...

Like everything else, all we can do is sit back and see what happens... I do wonder if they have 2 projects on this going on, one for current customers and one for the non-bank customers... But again, it's something that we have to wait and see what they do...

[Rayzur]

You said the Hope, now you've got wanting to play and I can't wait to play in the Hope again!!! One of my favorite charity events I have played in....

Hey There!!!! What about the AT&T at PB....

[Rayzur]

Rayzur, my apologies. I do understand because I went through the same thing, and still do. 100% girly girl right here too.

I knew you were too smart to be a guy.

I get what you are saying about the tournaments. I live on a course where they play the Hope Classic and used to play the Skins Game. It is fun, but have plenty of sandwiches on hand because you're not going anywhere for four days.

RV, your Pebble Beach neighbor, has been put on Mod Review for joking with you about doughnuts or something, which I do not understand and complained about. If anyone would like to review what was said and feels so inclined, please file a Report to let the Mods know what was done was wrong.

Right on Girl!!!!! Wooo Rah !!!!!! A toast to the brainiacs !!

The person put on review was not the PB neighbor....but a person who was extremely rude to Easy... and my olest child thing came out and for being mean to Easy... I banned him from our beach (just before Mods put him on reveiw)....He should be on review.....

I'm really glad I don't actually live on the course..... that must be a nightmare for you will all those people walking all over hill and back! The AT&T is pretty intense, but when we have the US Open here its insane. People rent their tiny little apartments to out of towners for 5K a week! Insane! I was offered 25K for mine for the week... but didnt do it.. Wouldn't know the people and didnt want the hassle of carting stuff in and out.... and sleeping in my bed..ewwwwwww...Do they do that for the Bob Hope (rent out private houses?) Maybe next time, I'llgear up for it....who knows...

[Redhorse]

Just wanted to say BOO YA!! to Carrello, great post!

[abutchbaker]

Good post Thanks...................

[GotSix]

I would be more encouraged if they were talking about 1 or 2 zeros but taking away all 3 leaves us back where we started.....I still have hope that parliament comes to their senses and boots this bill out!!

Believe it or no ...once again....we somewhat agree (blue moon rising)....cause if it's one zero then we are sweet ..."parliament has no chose but to come to their senses"

[Nelg]

Just so you understand (not looking to be the bearer of bad news but..) You are unlikely to break even if it just RDs. That means the value of your 1M IQD does not change. Its currently worth $860. The only reason you were willing to buy it for $1000 is that you think it might soon go way up. Once the RD is in full swing this hope will be dashed and no one is going to pay more than the official rate, and in fact to cover overhead and make a profit they will be paying LESS than the going rate. If a bank will take them you might get close to $860, dealers at this point in time might only be paying $700 or even less. So if it only RDs, you will likely loose money. You only have $1000 invested so loosing a couple of $100 hopefully isn't a big deal.

I understand well what you have written. My comments were making a generalized observation and not a specific one. Don't miss the larger point I was making.

[Stryker365]

Hey There!!!! What about the AT&T at PB....

Oh I would like it too but I've never been invited to play in the pro am like the Hope and others but I would really like !!!!

[dvforumuser]

I understand well what you have written. My comments were making a generalized observation and not a specific one. Don't miss the larger point I was making.

Alas I think you are wrong there as well. Your conclusions were:

So, what have I learned? None of us know until it happens!!; which I already knew.

I'll stick with my HOPE in a revaluation while understanding that it could RD.

Well sure, no one can predict the future with 100% accuracy, But consider that:

We KNOW an RD is planned.

We KNOW RDs are what countries do when they want to remove the effects of past hyperinflation.

We KNOW the basic economics i.e. the arithmetic, of a large RV just don't work given Iraq's reserves, money supply, GDP, and so on.

We KNOW there is a huge profit motive for folks to continue pushing the idea that a large RV is coming.

We KNOW Iraq is going to do what is in their best interest not ours.

Your "it could RD", leads me to think you are not viewing the odds in keeping with this knowledge (i.e. that many wild miracles would have to happen to allow for a huge RV) and in fact see it the other way. The whole "no one knows" makes it feel like its deal of the cards, or a toss of a coin, a 50/50 sort of thing. Right? and that in my view is wrong. I think the odds of a $100M winning lotto ticket blowing into your car window tomorrow, are better than the odds of a 1000x RV.

[zigmeister]

Alas I think you are wrong there as well. Your conclusions were:

Well sure, no one can predict the future with 100% accuracy, But consider that:

We KNOW an RD is planned.

We KNOW RDs are what countries do when they want to remove the effects of past hyperinflation.

We KNOW the basic economics i.e. the arithmetic, of a large RV just don't work given Iraq's reserves, money supply, GDP, and so on.

We KNOW there is a huge profit motive for folks to continue pushing the idea that a large RV is coming.

We KNOW Iraq is going to do what is in their best interest not ours.

Your "it could RD", leads me to think you are not viewing the odds in keeping with this knowledge (i.e. that many wild miracles would have to happen to allow for a huge RV) and in fact see it the other way. The whole "no one knows" makes it feel like its deal of the cards, or a toss of a coin, a 50/50 sort of thing. Right? and that in my view is wrong. I think the odds of a $100M winning lotto ticket blowing into your car window tomorrow, are better than the odds of a 1000x RV.

You joined Feb. 14th? Interesting. A good place to sell your dinar isn't it? Happy Valentines Day.

[dvforumuser]

You joined Feb. 14th? Interesting. A good place to sell your dinar isn't it? Happy Valentines Day.

I don't recall that particular connection, but it does say so right there on the left! It has been a good place to sell, e-bay is doing a smidgen better but both have worked. Edited March 12, 2012 by dvforumuser

[Carrello]

Right on Girl!!!!! Wooo Rah !!!!!! A toast to the brainiacs !!

The person put on review was not the PB neighbor....but a person who was extremely rude to Easy... and my olest child thing came out and for being mean to Easy... I banned him from our beach (just before Mods put him on reveiw)....He should be on review.....

I'm really glad I don't actually live on the course..... that must be a nightmare for you will all those people walking all over hill and back! The AT&T is pretty intense, but when we have the US Open here its insane. People rent their tiny little apartments to out of towners for 5K a week! Insane! I was offered 25K for mine for the week... but didnt do it.. Wouldn't know the people and didnt want the hassle of carting stuff in and out.... and sleeping in my bed..ewwwwwww...Do they do that for the Bob Hope (rent out private houses?) Maybe next time, I'llgear up for it....who knows...

Hi Rayzur, we had two people put on mod review last night. Texas Granny put RVSTD on mod review not understanding the post about the homeless. She sent me a message telling me what she had done. Dinar Rush was the bad apple and was put on review too.

People rent houses all the time down here. I'm like you though, ewwwwwww. It is a good chunk of cash, though. But in a few days we won't have to worry about that, will we?

[Sector]

Wow this really is a great article for the RV because all the lop gurus have been working overtime to put out misinformation about a RD.

Lol this so entertaining. Don't listen to the lop gurus that's like listening to okie and the boys.

[dvforumuser]

Wow this really is a great article for the RV because all the lop gurus have been working overtime to put out misinformation about a RD.

Lol this so entertaining. Don't listen to the lop gurus that's like listening to okie and the boys.

It would be so much more interesting if you would point out these oakie-level instances of misinformation rather then just asserting that they exist.

Further the reasoning that the amount of posts on this forum that point out that an article from Iraq is referring to an RD, somehow correlates to it in reality talking about an RV and that such posters know this, also requires some sort of explanation or support. I mean on the face of it its nonsense. What would be the motive for anyone to do so?