UPDATE: Iraq Ctrl Bank Plans To Rebase Dinar; No Time Fixed Yet

[denzoid]

All this talk about "dropping three zeros" ...yes i am stupid and dont know what that means...i heard someone say hey rich iraqis are not going to be poor and poor iraqis are not going to be rich. i have heard people say hey lopping three zeros is not a lop....that this is just a redenomination...you know to me a redenomination would be that you take your 25000 dinar note to the bank and the bank gives you 25000 dinares in small bills...i do not understand what these recent news articles in iraq are talking about and how can they be smoke and mirrors...smoke and mirrors will not accomplis anything

[rolls83]

Omit or Vomit! That is the question! Just ad a V to omit and what do you have?

[ronscarpa]

Wizard96 - Why in the world did you open this bucket of worms again. It was dead by 17 March (page 19), then you chose to open it again today (page 19) - NOT smart or wise...!

EVERYONE, This thread is a waste of time - let a dead dog lie...!

JMO - RON

[BIGCG]

Ummmmmm....... ya Tampa that is awfully strange.....

This IS STRANGE!!!!!! Go to the middle of this page and use the currency converter on the right side, enter $1 USD and covert it to Iraqi Dinar and see what it equals. But if you do it in reverse it give you the true rate.

http://www.english.globalarabnetwork.com/201003125159/Economics/imf-iraq-to-improve-statistical-database.html

[freddy is ready]

THIS IS A SMOKE SCREEN !!

They want us to sell our dinar back thats all we were told to expect this type of news

IMO

Where there is smoke,you can rest asure fire is close by.Go RV!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[homeless]

Itwont revalue till international banks come to iraqi, till oil starts to flow, till reconstruction of infrastructure begins, so, look in about 4 more years for a revalue. Hmm, based on IMF report of March 16, 2010 and common sense. Looping off 3 zeros wont help any, new currency is years down the road.

[doc80904]

I just don't understand what the fuss is all about. First of all a "LOP" will not and cannot happen. A lop is used to curb inflation and as a number of people have said here, there is no problem inflation rate here, it is about 4.5-6% and that is nothing. This is just a way to scare people into either throwing away or selling off what they have. That is great for Iraq because they don't have to pay that part of their debt load down. Secondly Iraq has nothing to do with either opening, modifying or "LOP" anything. The whole thing is in the hands of the IMF. The idea is to open a stable currency, so tell me is doing a LOP even before the currency is on the market stabilization? But lets just say a LOP is in the cards, would China, who Iraq owed Trillions of dollars forgive all the debt owed if there was going to be a LOP? What about the other countries, would they? Well lets just forget about that as well, how about the debt that Iraq owes the WB and the IMF how are they going to pay their debt with a LOP? Going back a bit earlier in this posting does anyone think that the IMF, who Iraq owes billions along with the WB also owed billions, would they allow a LOP. The next issue that either no one knows or wants to admit anything about is that there are two different types of LOPs' The first is a currency LOP, the second is a rate LOP. A rate LOP is not a problem at all. It would stabilize the currency without over-extending it. It has been said that a rate of 86 cents relative to the dollar is a good rate to open up at, it is sustainable and workable over a long term.

There is one last issue left and that is the currency itself. No one will debate the fact that there are smaller notes available and that they are in circulation. Has anyone thought, after going back over the history of these "Terror tactics" of a LOP that maybe what they are doing is to remove the larger notes from circulation and replace them with the smaller notes as has been said would happen for a long time now by almost all of the big "Gurus'". This, as stated some time ago, has been in the works for a long time to remove them. Imagine for a moment going into the local quick mart to purchase a candy bar and a soda. With a rate of even .86 cents what would the cashier do when you drop a 25000 note on the table. The answer is simple they would laugh and say go to the bank and exchange that and come back later. It just would not happen. As said earlier there will be a window to exchange your 25000 notes for 25 dinar notes. OH MY GOD......could that be a LOP......there goes those pesky 3 zeros that everyone is terrified about. Just think for a minute and stop screaming "THE SKY IS FALLING" all the time. It won't and neither will the currency. It is a simple adjustment, nothing more....Relax you will have your dreams very soon, maybe not as much as a 3-1 exchange rate but all the same.....Sorry to be so blunt but this has gone way past silly a long time ago and these LOP types need to get a life and stop scaring the living **** out of everyone else.......Enjoy the ride........

[Kent]

doc, I appreciate your candor and respect your opinion. Hopefully, you will grant the same in return. Just to offer a bit of a counter point:

Lops have no effect on inflation. They are not done to correct inflation. That is an oversimplification and on the surface is just not true. It is not a justification for thinking that a lop is impossible. This string addresses that and several other common misstatements about lops from a statistical analysis of causal factors in 70 of them since 1960. The link for the study is also in the post. http://dinarvets.com/forums/showthread.php?7545-Debunking-the-myths-of-the-infamous-bunny-ear-(lop)&highlight=

I would maintain that the oil resources of Iraq are a far more likely strategic target of creditor nations of Iraq than a hopeful change in the value of their currency. In many cases oil has far more strategic value than money, certainly true with currency from an unstable fledgling new government.

Likewise, debt owed to IMF is also not a likely motive to be convinced of a large RV. In the study above you will note that IMF involvement actually increased the likelihood of a lop.

Finally, there are 2 kinds of lops (redenomination), but I challenge you to identify a single study or example of lopping zero's from the rate. The study mentioned above indicates the alternative kind of redenomination is a confiscatory redenomination like the one that occurred in North Korea where there were caps on the amount of currency that could be converted (effectively resulting in the government taking the excess from their citizens out of circulation).

I am not trying to scare anyone. I am fully aware that my position is in the minority in the forum and I respect the opinions of those (including you) with whom I disagree. I also feel somewhat of an obligation to occasionally correct misstatements. To me many statements feel like the story that is told often enough that it becomes fact. Frankly, it just ain't so.