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

[DgreenFSU66]

"...If the rebase decision is taken it means a current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars. ..."

This statement makes sense IF they RV FIRST then rebase later. If not, then you would have to believe any Iraqi with money (25000 notes) will loose, and those with the lower denoms will gain?!?! Another way to look at it is that the wealthy Iraqis, politicians, etc. will loose their fortunes. NO WAY. This is either completely smoke and mirrors or the RV will precede the rebase with time to cash in or exchange for the lower demons! No way it will happen so that up is down and down is up.

She makes a great point. Iraqi`s with lots of Dinar in the bank would lose 000`s off of their accounts. They are trying to get the people to start banking their cash, not hoard it. If they LOP the 000`s from accounts, the people of Iraqi would revolt, and never trust banks or the GOI again.

[wayneabwa]

Blind leading the blind.

Removing 3 zeros and raising the value of the single dinar is a wash.

I said this two months ago.

Open your eyes.

[Chief V]

If you are right and this story is only half right, I'll be doing the Austin Dance!!!

[Mongo]

We don't call them lobsters we call em craw-dads.......I luv craw-dads and possum grits!!!!!!

[ATTACH=CONFIG]987[/ATTACH]

[DgreenFSU66]

why is this article reposted and rehashed from several years ago???

[Blaze0987654321]

Hey Guys . . . .This is NOT a LOP . . . .IT is GREAT NEWS !!!!!!

It clearly states that "IF" they drop the 3 zeros, 1 USD will then equal 1.17 Dinars INSTEAD of 1170 !!!! Without any other adjustments, and this is the "big ? mark" . . . . then 1 Dinar would equal $0.8547 !!!!!!!!!

Dennis S.

B.A. Economics

Middlebury College

Yea, and every 1,000,000 dinar you currently own will turn into 1,000? Then your $1000 invested turn into only $1,170

[Den56]

Yea, and every 1,000,000 dinar you currently own will turn into 1,000? Then your $1000 invested turn into only $1,170

Blaze, I see that this is your first post, yea right, go back from where you came from you "LOPSTER" HIDING behind a PHONEY USERNAME !!!!!!!

[Chief V]

why is this article reposted and rehashed from several years ago???

The one that I posted was from two years ago, the link for today's posting is new......quite similar.

It's that smoke and mirror thing.....

[quadraph0nic]

No offense to anyone but it doesn't matter what this article is saying because nothing has actually happened and that's the bottom line. Shrug it off and stay the course.

Besides, that's the only shot we have anyway.

[Kent]

RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP,RV, RI, RD, RB, LOP!!!!????

Sounds like unfortunatley it's a good find, but again......smoke & mirrors? Or language barrier misinterpretation??

That particular link is a marketing link as well to get you to sign up, although if you delete the ?iPass after the forward slash it will show the first portion and then redirect you to the sign up page.

Here's another link that should take you to a pdf: http://www.zawya.com/pdfstory.cfm?storyid=ZW20100315000097&l=103616100315

[Kent]

She makes a great point. Iraqi`s with lots of Dinar in the bank would lose 000`s off of their accounts. They are trying to get the people to start banking their cash, not hoard it. If they LOP the 000`s from accounts, the people of Iraqi would revolt, and never trust banks or the GOI again.

Correct, it would come off of the bank accounts, AND the prices, AND the wages. That is how a redenomination is value neutral, otherwise it would be a devaluation.

I've never seen anyone that believes they will do a devaluation.

[nbcowboy06]

i mean how do we know that it is the 3 zeros on the bill how come it aint the 3 to where it cost to trade it for one.

[nbcowboy06]

well people what all i can say is let see what happens in 9 day over here

[Teresa82]

..............................whateva!!!!....................................

[kkjk]

I tend to believe the smoke and mirrors explanation! especially with K98 posts from a couple of days ago!

http://dinarvets.com/forums/showthread.php?14051-deputy-central-bank-governor-denies-lifting-of-the-zeroes-of-the-Iraqi-currency

[nbcowboy06]

i understand you all that is why i say just wait and see again that why they call it a waitin game weather it is smoke and mirrors

[dollarsense]

What's going on??? Is this another rumor or fact???? Help Adam...any news

[moneybags]

dude you need to refigure , you are way off

[nbcowboy06]

you aint lieing

[nbcowboy06]

who is off

[nurav]

This could well be just propaganda, but a LOP does seem like a logical option.

Consider this. Over time, the IQD became weaker and weaker and lost its value thereby tacking along zeroes. So, a loaf of bread that may have cost 10 dinars at one time now must cost 10,000 dinars.

Carrying a number of notes to buy a loaf of bread is a ridiculous idea, so in order to make transactions simple, they printed higher denomination bills. This way, the value of a weak dinar was kept intact when it came to comparison with the US dollar plus people did not have to carry truckloads of bills to buy basic stuff.

Now, by lopping I believe they mean reversing the scenario, that is going back to smaller notes because inflation has reduced over the past few years and it looks like Iraq is on the road to making some progress too. So now they want to take away the larger notes and replace them with smaller ones. The purchasing power will remain the same as the price of commodities will change accordingly too. This is not profitable for foreign investors but it does help Iraq because their exchange rate will become much stronger. It will not have a negative impact on Iraq. People will be able to use lower denomination bills for transactions and because of a stronger exchange rate, may be able to afford other things.

Imagine this, things that can be locally made in Iraq, for example bread, food items and other basic necessities are what people can afford there. The current exchange rate is 1170 to a dollar. This rate mainly affects Iraq on the international scene. Imagine buying a car or electronic devices that were imported into Iraq. They probably are ridiculously priced. Now consider a lop scenario where 25000 becomes equal to 25, prices of local goods have been adjusted accordingly, and the exchange rate has been adjusted at 1.17 to a dollar. This would enhance foreign trade and will make goods, services made outside Iraq affordable to the people.

Like everybody else, I don’t want to see a lop happen, but I won’t be surprised if it does. Lopping zeroes off of a currency is not something that is new and has taken place a number of times. I believe Zimbabwe is the latest example of a scenario like this. They lopped ten zeroes off. Again, it is difficult to compare nations because we do not know what is going on beneath the surface.

I do not know the answer to this, but this could be an interesting point to consider while speculating whether it would lop or no.

The question is, while the dinar was losing its value, was 10 dinar replaced with 10,000 dinars keeping the purchasing power the same that is 10 dinar worth of bread was made equal to 10,000 dinars worth of bread. If this was the case, a lop would very well be a possibility.

If not the above, did the dinar just lose its value gradually over time? For example, the cost of commodities increased with inflation, that is the cost of bread became 10,000 dinars but 10 dinars remained equal to 10 dinars thereby making bread unaffordable?

Any thoughts?

[shannybelle27]

Must mean we are very close! It makes no sense that cbi came out with this ridiculous article and just a few weeks ago maliki talks about revaluing the dinar and imf lifting restrictions so that iraq could continue their plans with revaluing the dinar. Plus werent the 2 last cbi articles debunked where cbi said they had no such intentions??? interesting isn't it. This is totally a smokescreen. They want people to sell back their dinar! This is all coming together and it makes complete sense as to why these articles are coming out plus shabibi came out today talking about their plans to redominate which means use smaller notes (which means we still get our moneys worth on this when it does re-value)...quite opposite than what cbi is saying. Writing on the wall guys. This is just about over

[TMills6864]

OK, guys, I'm feeling really dumb! I read the article, it's clearly stated: "...dollar will equal only 1.17 dinars."

I understand that to mean if I cash in 1.17 IQD, they will give me one USD ... meaning that for each $25,000 note (that I paid $20.00 +/-) they will give me $21,250.00 -- will someone either correct or verify this.

If I receive $21,250.00 for each $25,000 IQD that I own -- I think I will be one of the happiest, most blessed, people on earth!

Edited March 15, 2010 by TMills6864
clarification

[Kent]

Hey Guys . . . .This is NOT a LOP . . . .IT is GREAT NEWS !!!!!!

It clearly states that "IF" they drop the 3 zeros, 1 USD will then equal 1.17 Dinars INSTEAD of 1170 !!!! Without any other adjustments, and this is the "big ? mark" . . . . then 1 Dinar would equal $0.8547 !!!!!!!!!

Dennis S.

B.A. Economics

Middlebury College

Dennis, that is exactly what happens in a redenomination. The exchange rate, the nominal (face) value, the prices and the payroll all change at the same time and in the same percentage. That is how a redenomination is value neutral.

[spede67]

Its boggus , thats guaranteed the link was even phony it takes you to a pay site to get you updates , but whats nice is they take credit cards im sure they are out for your best interest , You know kinda like DINAR GREEDY I I I I MEAN another site !! HE takes credit cards too to give you info he takes from everyone else