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

[sewnsew313]

What kind of official calls it "knocking 3 zeros off"? Sounds a little fishy to me.

[afghanman]

nrwst is exactly right, this is a debasing that rv's at the same time. The math is simple. If you have 1 Milllion IQD then:

$1.00 = 1.17 IQD then

$.855 = 1.00 IQD then

$855,000 = 1,000,000 IQD

This is essentially an rv at .855, very good news!!!!!!

[tampa1000]

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

[knk1998]

true, but by who?

[tampa1000]

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

[kevin21655]

where is steve when you need him, banned ,sol .

[carlablum]

I got the same thing, but on another currency converter it was both the true rate, or what we think is the true rate lol

[dinardummy]

I propose this: A rich man in Iraq has approx. $1,000,000,000,000 IQD, worth 3 Billion USD, before we went to war with his country. After the USA overthrew his country's government, the VALUE of his wealth went to approx $$1,000,000,000,000 now NID worth 1 million USD. My understanding is that Iraq does not care about us small time investors. Their only concern is RESTORING the WORTH of their currency. If they LOP, the only benefit to them is they now will get to carry around less cash. They value of the Dinar will be forever LOST!!! If they RV, even at a low rate, they can restore the wealth to the Iraqi people that lost it. Please explain to me how I am wrong guys. Have at it!

[nbcowboy06]

Here come the Lopsters again! lol

you know if they they dont like what is being put out why are they still here do the really think that CBI would really scew it self and it people

[summer]

check out Tampa1000 post today 4 :57pm under Please explain this?,then click on the link and try the converter.Convert 1 IQD dinar to USD you will get (1 Iqd=0.000857 usd. HMMMMMMMMM? Please explain this?

[afghanman]

You're nuts, if you are holding IQD, this is essentially a .85 RV. So if you have 1,000,000 IQD you make $855,000 for your $1000 investment, and accomplish a LOP at the same time. Remember you bought it at $1.00 = .000855, move the decimal point 3 places and you get your RV at a respectable rate = $.855

[quadraph0nic]

no reason to get excited about anything, has it lopped? or are you rich yet?

NO, because nothing has happened; its just another article. dont be scaired...

[dbillera]

what do you mean 1-3 times what we put in? how do you come to that conclusion if we paid $1 for $1170 dinar and then it rebases to 1-1.17 that doesn't souund like one to three times profit.

[ozark]

I paid $ 6000 for 6 mil iqd after removing 3 zero I have 6000 iqd x 1.17 = $ 7020 . I am right ? Somebody help here.

[carlablum]

I am so terribly confused. Looks like you would have made a hole 1020.00 on you money. Something has to happen soon but who know what????

[Chief V]

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

Thanks Kent, I googled it too, and it came up without the pay screen as well. Could actually search additional articles on there that way.

V

[slapshot 48]

question: if they take three zeros will the dinar have the same buying power?

Say America did this; if you can buy a pop with $1.00 and the US took of one zero wouldn't a pop now be $.10?

Simple analogy, i know

[FDyer]

Okay guys...the math gurus mainly....Help me here. I understand basic math. I get the moving of the three decimal places. Here is what I am more concerned with, can someone help?

Say 25000 dinar buys XXX now. After lower Denoms, 25 dinar ALSO buys XXX. Now WHAT IF, for a time until the larger denominations are taken up, 25000 dinar and 25 dinar have the SAME VALUE. This is what is considered a LOP I take it? Am I right? For instance, if after the redenomination you wanted to trade in your 25000 dinar for smaller denominations, you would get ONE 25 dinar for the ONE 25000. What if they run concurrent with the SAME value?? Taking the THREE zeros off/moving 3 decimal places does not mean that there is an RV. (I think?) So based on articles of them changing the denomination does not tell us there is an RV on it's own. And only reference I have seen in such articles relating to the actual value of the currency states that it will remain the same (I think) which would coincide with what is previously stated, not leaning towards an RV on this alone.

Sorry if this asking others to repeat...but please give me bullet points of WHY they would RV ALSO. I guess part of it is, what is the point of changing the currency if you DON'T RV. If value stays the same, who cares what is printed on the note right??

I am new here...please send me to threads or re-post info if you don't mind. Also....IF they give the lower denoms with a window to trade in, but don't RV until after, will we be able to get the lower denoms to hold out for an RV or are we screwed? What are the reasons they would NOT do it this way?

Thanks for your info in advance!!

[DTH]

What They should have done was to have the smaller denomination bills before investors started buying into the dinars...

[wizard96]

This has been flogged to death people just think of it like this

25,000 IQD will be worth the same as the new 25 IQD all they are going to do is just take the big notes out of circulation over time

If you take in a 25,000 iqd note to the bank in iraq you will get 1000 25 iqd notes in return

If you take in a 25,000 iqd note anywhere else in the world you will deposit into your bank 25,000 iqd times the rate of the RV/RI

So if the RV is $1 usd = 1iqd you will get $25,000 USD

They just want the big notes out of circulation thats it

[FDyer]

OK...maybe going to drive some people crazy. Still not what I was saying exactly.

If right now rate is .00086:

1004.09 USD = 1,167,550.00 IQD

After redenominate: You get ONE 25IQD for each 25000IQD as they are the same value. If you started with above amount, now you would have 1,167.55 IQD. The .00086 would have 3 zeros removed, so rate is now .86.

1,167.55 X .86 = 1004.09 USD (No change in USD)

NO change in USD, this is the LOP correct? This is assuming your TRADED the 25000 note for a 25 note as they are REPLACING one with the other. (Same in value)

Crap...in my explaination I think I figured out what you are saying. BEFORE trading the 25,000IQD in to a 25IQD, the rate will have had to change to the .86, so therefore the 25,000IQD would then be at the .86 rate also. Right? And in that case the amount of IQD starting at very beginning would now = $1,004,093.00 USD!! So the removal of 3 zeros on the currency and keeping the value of the 25IQD and the 25,000IQD same guarantees the .86 rate applied to a 25,000 note. ??? If so then what the heck are we worried about???

Is there any way Iraq could s**w us here? Can they cash out a 25,000 as though it is a 25 because the 25 is replacing it and still give you the same in USD as you would get if you held a 25IQD so there would be no way to apply the .86 to the 25,000IQD?

And this is why some were saying this could hurt those with money in bank accounts because they wouldn't have the physical 25000 notes in hand against the rate of .86?

I'm sorry if this post annoys the heck out of everyone....working my own thoughts out here so that way anyone who sees an error and would like to take the time to point it out to me can do so freely!!

[FDyer]

With this alone, it would either force us to cash out at .86 with our larger notes...or convert to the smaller denominations and wash even and wait for an RV. (We would wash out even if they gave us ONE 25IQD for each 25,000IQD as they are the same in value.) I don't see how we could consider them the same in value if you could cash the 25,000 out for more because the same .86 rate would apply to both, but that is what the news statements have said, that the value would not change. So, is there something to this part of it, am I missing something?

[Dee1031]

Very good post. I heard this news yesterday too. I could be wrong but it looks to me like the rate may just be 1.17 Also, if this announcement was made, I don't think we have much longer to wait for rv, or as they call it rebase

[Bruce]

Sheep and wolves

[retep2010]

--------------------------------------------------------------------------------

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

The Central Bank of Iraq is planning to rebase the Iraqi dinar but hasn't decided yet on the timing of the move, the bank said in a statement Monday.

"The Central Bank affirms its commitment to its strategic projects, particularly knocking three zeroes from the Iraqi dinar," the statement said.

"Despite the technical and logistical preparations for the project we have yet to decide on suitable timing to implement the project," it said. Choosing a suitable time wouldn't be linked to economic aspects only, but rather to the security situation as well, it added.

Separately, the bank's senior advisor Mudher Qasim told Dow Jones Newswires that knocking off the three zeroes would improve the value of the Iraqi dinar which is trading Monday IQD1,170 against one US dollar.

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.

The bank said that knocking off three zeroes from the dinar would "improve management of the currency and facilitate cash dealing." The decision was the result of debate with the economic commission at the Iraqi cabinet, it added.

Currency rebasings are usually monetarily neutral and are introduced to make commercial calculations easier and cheaper. Turkey, for example, knocked six zeroes off its lira currency in 2005. Russia did the same for its currency.

Qasim said one of the reasons for rebasing the Iraqi dinar is because the bank has managed to reduce the country's high rate of inflation. The inflation rate fell to 6.1% in December 2009 from a record high of 60% in late 2006.

In July 2004, the now dissolved U.S. civilian authority in Iraq decided to print the current Iraqi banknotes replacing those that used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.

The central bank's advisor said that if the project was implemented the central bank would need to print new banknotes.