Today the Finance Committee will host a delegation from the Central Bank to discuss the deletion of zeros

[Double R]

Let me ask you all something. If they were simply going to LOP (a made up word by the way), why not just do it? Why would there be any considerations for any ill effects of doing this? Since it's a neutral event, why have they been waiting at least 4 years to pull the trigger??

[KamelKeeper]

You know it does seem funny to me, as I am sipping my coffee and thinking about it. If they were going to RD why hasn't Shabibi gotten the banks on line? Knowing this was the plan back in what 2004 or so? I mean you would think he would have gotten his ducks in a row, irregardless of what was going on politically.

They could have done an RD at any time without all of the hoopla that is going on. Sip away, sir, and enjoy.

Edited May 6, 2012 by KamelKeeper

[zigmeister]

Let me ask you all something. If they were simply going to LOP (a made up word by the way), why not just do it? Why would there be any considerations for any ill effects of doing this? Since it's a neutral event, why have they been waiting at least 4 years to pull the trigger??

IMO all you have to do is look at the mess the banking sector is in right now. They simply are not ready for it. To get a good idea the problems existing for the CBI as far as a RD read the article by rss in 'Opinions'.....they do this now, it will fail, and if it fails in an RD situation, it will work against them. They just aren't coordinated enough in my opinion. Again, my question is today, CBI has planned an RD for years, why have they not put their banking sector in position to do an RD?

[Double R]

Since they've already stated the two currencies will co-exist and a 30 trillion cash mass will become a 15 billion, that seems pretty clear cut to me.

I just can't envision handing someone a 25000 note for a purchase and getting a half dinar back in change. Call me dense. A dinar is a dinar.

IMO all you have to do is look at the mess the banking sector is in right now. They simply are not ready for it. To get a good idea the problems existing for the CBI as far as a RD read the article by rss in 'Opinions'.....they do this now, it will fail, and if it fails in an RD situation, it will work against them. They just aren't coordinated enough in my opinion. Again, my question is today, CBI has planned an RD for years, why have they not put their banking sector in position to do an RD?

Doesn't make sense to me. If you release the small denoms and this is a neutral event, what's the holdup. You've taken a 25000 note and turned it into something else with the same purchasing power. Life goes on. There should be no controversy over something like that.

[zigmeister]

Since they've already stated the two currencies will co-exist and a 30 trillion cash mass will become a 15 billion, that seems pretty clear cut to me.

I just can't envision handing someone a 25000 note for a purchase and getting a half dinar back in change. Call me dense. A dinar is a dinar.

Doesn't make sense to me. If you release the small denoms and this is a neutral event, what's the holdup. You've taken a 25000 note and turned it into something else with the same purchasing power. Life goes on. There should be no controversy over something like that.

Did you read the opinion piece? You should. The way I read the banking system is a mess. This is what seems to be an issue for the financial committee. Iraq is not ready for an RD. And yes if it fails, they end up where they started from.

[Frogee]

"Doesn't make sense to me. If you release the small denoms and this is a neutral event, what's the holdup. You've taken a 25000 note and turned it into something else with the same purchasing power. Life goes on. There should be no controversy over something like that"

I think the holdup is, if they do it by taking the three 000's off the dinar notes, then they have to take them (000's) off everything. Cokes, cars, rents, mortgages, etc. This would make that 1000 dinar pack of smokes now 1 dinar To me, this would cause mass confusion and corruption.

Read more:

[winterset]

Because of Saddam, Iraq was stripped of their currency value, their pride and the people live in poverty for the most part..

After all their suffering, if it was me, I would want EVERYTHING back better than before.

I'm sure there are many factors that play a part (WTO-UN-IMF-Kuwait etc..) but at the end of this road I believe they want strong and valuable, a LOP would not give them the pride back.

[easyrider]

A lop will only discourage the people in trusting the iraqi banks after all they have been through aint gonna happen or it would have already.

[truthful1]

A lop will only discourage the people in trusting the iraqi banks after all they have been through aint gonna happen or it would have already.

Well it probably would have happened but parliament has tabled it twice. the cbi has been trying to push it through for the lastcouple of years. remember they need approval to print the new currency...

Edited May 6, 2012 by truthful1

[sportfisher]

It's called a redonomation "RD " meaning the that new 50 Iraqi dinar note will be worth 50000 dinars (x1000). The RD will not effect us at all because the RD only effects the new currency and we have the old currency.

A 25000 Iraqi dinar note will always be worth 25000 dinars period.

The word lop has no meaning it's just a made up slang word to mean whatever you want.

I'm very sorry but you need to do some research

Well im seeing all the negs for knowing an economic definition,

how did you find that information?

I have absolutely no Idea why people are negging truthful1 for saying removal of zeroes is a redenomination, then sector mis-describes a redenomination and get applauded with pluses??? :blink:

I think y'all need to do some research

Deleting the three zeroes is and always has been a lop.............i guess people are now starting to finally see.

the only thing people need to "finally see" is that a redenomination/LOP is a possible worst case scenario, and it is no a good thing, that is all.

By the way this article does describe a redenomination/LOP, not a good thing, but won't believe it until I see it, I'm in it to the end hoping for a straight Revaluation (increase in value)

Edited May 6, 2012 by sportfisher

[easyrider]

Well it probably would have happened but parliament has tabled it twice. the cbi has been trying to push it through for the lastcouple of years. remember they need approval to print the new currency...

so my question to you is how does that build confidence with their people if they were to LOP the citizens currency they had prior to only lose value instead of gain? I know i wouldnt trust the banks if they stole my money because indeed that is exactly what an RD would accomplish imho also i do believe a rate change is coming before june 1st because they must adjust everything to that new rate tariffs are implemented june 1st by law look in the gazette.

[sportfisher]

actually a redenomination is designed to build confidence in the currency by their own people when associated with high inflation, it is just a poke in the eye for everyone else.

[easyrider]

actually a redenomination is designed to build confidence in the currency by their own people when associated with high inflation, it is just a poke in the eye for everyone else.

so you are saying with other countries having dinar in reserves and they LOP they wont be pissed? i doubt it and if i had been holding my dinars as an Iraqi citizen and they lopped i would indeed lose money theres no other way to look at it.

[truthful1]

so my question to you is how does that build confidence with their people if they were to LOP the citizens currency they had prior to only lose value instead of gain? I know i wouldnt trust the banks if they stole my money because indeed that is exactly what an RD would accomplish imho also i do believe a rate change is coming before june 1st because they must adjust everything to that new rate tariffs are implemented june 1st by law look in the gazette.

Personally, i dont think it builds confidence and i wouldnt trust them either. i think every reason to rv is in front of them.

I am just going off of what they put out. All this lop talk was starting by them. ive learned as much about it as possible and think there will either be a rv between .01-.10 or a lop. qnd the reason they would is because of the trillions of dinar being liabilities..and i think thats the only reason to lop.

But how much of what the iraqi news feeds us is real???? I dont know and dont have the answer. but i do know what a rd is and why they would do it......but that doesnt mean it will happen.

trust me....id love nothing better than to see a rv..........keep the faith easy.......and ill try and stop using the "l" word.

Peace..

[truthful1]

The other thing to remember is if it "l", 10,000 is still 10,000....its just its still worth approx.$10............ but the new dinar...10 dinar is now worth approx $10. So the new currency looks like it has more strength. then they go to the marketplace and for a $10 item they either pay 10,000 old dinar.......or 10 new dinar

so it will persuade them to go to the new currency and the old currency will co-exist until either a timeline is up or theyve collected them allback. it will resemble the buying power of the dollar and hopefully they choose the dinar over the dollar. not all rds work out like they plan. sometimes its a wash and they end up trying again

Edited May 6, 2012 by truthful1

[TXNOLE]

The other thing to remember is if it "l", 10,000 is still 10,000....its just its still worth approx.$10............ but the new dinar...10 dinar is now worth approx $10. So the new currency looks like it has more strength. then they go to the marketplace and for a $10 item they either pay 10,000 old dinar.......or 10 new dinar

so it will persuade them to go to the new currency and the old currency will co-exist until either a timeline is up or theyve collected them allback. it will resemble the buying power of the dollar and hopefully they choose the dinar over the dollar. not all rds work out like they plan. sometimes its a wash and they end up trying again

Good Point - thats their view of "strengthening the dinar".

[zigmeister]

Well the main point of this article is, it has been put on hold, because it is felt Iraq is not ready.

[CalvinLed]

<br />JMHO:<br /><br />The documents/reports put forth by the Government, Economists, Media of Iraq have been sometimes consistent, sometimes conflicting. This may be in part because of the language/cultural nuance differences. As some have said, it may also be propaganda or misdirection to avoid chaos in the procedure of the REAL plan.<br /><br />Whether or not the spin of the day is positive or negative, from Kap to Keep, until the Government of Iraq actually makes a change in the currency value, the theories/hypothesis put forth by those on both sides of the RV/LOP aisle, are merely conjecture. <br />Both seem to make logical arguments for their side, based on their understanding of the value/legitimacy of the articles/information/history at hand.<br /><br />For me, at the end of the day, the bottom line is...this is just a speculative investment, money spent that I should be able to comfortably walk away from. I simply must not invest myself emotionally in something which is far beyond my capacity to control the outcome.<br /><br />We can only HOPE AND PRAY FOR THE BEST OUTCOME FOR ALL INVOLVED.<br /><br />Again, JMHO <img src='http://dinarvets.com/forums/public/style_emoticons/default/cool.gif' class='bbc_emoticon' alt='' /><br />

<br /><br /><br />

Very well put Cheerful.

Patience in the present,

Faith in the future,

Joy in the doing....

Calvin

[sportfisher]

so you are saying with other countries having dinar in reserves and they LOP they wont be pissed? i doubt it and if i had been holding my dinars as an Iraqi citizen and they lopped i would indeed lose money theres no other way to look at it.

No, I didn't say other countries would not be pissed, they would all be the ones poked in the eye. An Iraqi citizen would not be hurt by a RD/LOP or even an "In country only" RD exchange because for one thing, they are "in Country", also it is cost neutral for them, no fees, no spread, government exchange. They end up with a stronger currency per IQD that by design is what builds confidence in the currency for their citizens, even though they don't gain or lose any wealth. A little research into what a "redenomination" really is can be very helpful to understanding all aspects and possibilities of it.

Think of a redenomination of a currency as taking 10 gallons of runny soup and simmering it down to 1 gallon of delicious thick soup.

[Abarvets]

Zig I do have one problem with this article. Did you notice how the dates were written? Up top it is the traditional method day month year. Yet in the article they switch it to the American method of month day year. This is not typical of articles coming from the Middle East, just an observation.

[bamagirl]

Well the main point of this article is, it has been put on hold, because it is felt Iraq is not ready.

Yep and as long as its on hold inflation is still climbing and an RV becomes the most likely solution.....

[truthful1]

Yep and as long as its on hold inflation is still climbing and an RV becomes the most likely solution.....

Agreed..........this project has been suspended again and thats the best news. it seems they are having problems getting it through parliament. ill wait forever as long as theres no lop. Small movements are fine by me.

[hoosier1470]

Well the main point of this article is, it has been put on hold, because it is felt Iraq is not ready.

Agreed, but.....we have seen and heard so many "stories" come out from Iraq for so long. One day its this way, then the very next day its the other! Im sure that within the next 24 to 48 hours we will read that it is no longer "on hold". I still believe Iraq knows exactly how and when things will take place! In the meantime, we get to try and make sense of articles that are impossible to make sense of!! IMO...I still believe this thing is coming to fruitation hard and fast! Im still as optimistic about this venture as I was the day I purchased my first dinar. I know that there are some of you out there that are believers of scripture....and if you happen to be a believer, then you know that "Babaylon" will rise to power again. With that being said, it takes $$$ to obtain that kind of power! Therefore, financially....something major must take place for this to happen! IMHO....that is a major RV! That has been my belief from day one....I still believe we will see a high RV! Much higher than most expect!! God Bless! Go RV! JMHO!!

[touchedthesky]

Nice catch, rsskelton.

Clear, concise and to the point.

[DWitte]

Well im seeing all the negs for knowing an economic definition,

how did you find that information?

I gave you a few +s T. No need for the negs for being honest.