Parliament and Fiance committee support revalue of Iraqi Dinar

[sandstorm]

I don't see how anyone could be negative about this article. They used the word revalue, do you expect them to walk you through the entire process? Why on earth would they tip their hand further, they can't. Great article. Thanks Gamaray.

The fact they boldy. use the word revalue, an announce it publicly, and use it with deleting the three zeroes, well thats clear as it can be. do you think they would announce this in advance to where you could pay $100 today for dinar, then in a few months the cbi will give $100,000 for that 100 dollars worth of dinar? Do you really believe that concept?

they would collapse the system, given someone could buy unlimited amounts of dinar today. why would the cbi open themselves up for unlimited liability? They wouldnt

Edited June 26, 2012 by sandstorm

[KamelKeeper]

I cannot figure out why people are looking forward to deleting the three zeroes. the cbi has been on a media blitz about this for several years and have given dates to begin. Central banks dont announce rvs, but they do pre-announce redenomination.

Ditto.

It is always interesting to watch the dinar discussion trends, and the ones that always get the most attention and comments are the most salacious, the ones that create the most amount of fear, and if there is none, someone will create it.

This story has been talked of so often, questions and answers have come from all corners. My question is: why would there be such a big hoopla with new laws, educational programs for the public, seminars at universities, millions and millions spent on pr, blah blah blah, if this were a LOP, and why is that is the case, would it have not been done a long time ago. Dr. Shabibi could have done this years ago and would not need a stable government to do it.

Good luck.

Edited June 26, 2012 by KamelKeeper

[Realdinar]

The fact they boldy. use the word revalue, an announce it publicly, and use it with deleting the three zeroes, well thats clear as it can be. do you think they would announce this in advance to where you could pay $100 today for dinar, then in a few months the cbi will give $100,000 for that 100 dollars worth of dinar? Do you really believe that concept?

they would collapse the system, given someone could buy unlimited amounts of dinar today. why would the cbi open themselves up for unlimited liability? They wouldnt

So its a lop then?

[sandstorm]

So its a lop then?

Well, the article indicates it is. i think its a scare tactic, to shed speculation....i think an rv of ..01-.10 is possible max and thats pushing it. however the article indicates a lop will lead to the revaluing of the dinar.

But in no way, is this talking about a straight revaluation

Edited June 26, 2012 by sandstorm

[skinz]

This is nothing we haven't been reading for years... I don't see why this article should scare you now and not back then.

Edited June 26, 2012 by skinz

[fnbplanet]

According to Najeeba, the process of removing the zeros from the Iraqi Dinar will be implemented over a period of two years through governmental banks. Also, the new currency will include small bills and coins as well as large bills equaling about $180 each.

If it was to be a lopp, seems to me that would just require an announcement, and would be an "instant" declaration. Meaning, it would be effctive immediately.

My question is, why would she say it would be implemented over a period of two years? Sounds more like "removing the zeroes" is a gradual elimination of the old currency, and not a loppp.

[KamelKeeper]

This is nothing we haven't been reading for years... I don't see why this article should scare you now and not back then.

Ssshhhh....I was just getting a run on razor blades sales.

[sandstorm]

This is nothing we haven't been reading for years... I don't see why this article should scare you now and not back then.

Lately theres been more specific information, with greater detail. sure the idea has been around.......but in this article they exactly tell you how they plan on increasing the value of the dinar. which is the answer we all seek. The frequency has been increasing as well....but we shall wait and see, as always.

Edited June 26, 2012 by sandstorm

[GinaG]

This is the start of an rv, imo anyway.

[gamaray]

I don't see how anyone could be negative about this article. They used the word revalue, do you expect them to walk you through the entire process? Why on earth would they tip their hand further, they can't. Great article. Thanks Gamaray.

Thanks SWFG.......I got excited by the wording of this article as well!!! I agree with your comment and the comments made by both FNB and KK!! Thanks Guys/Gals

I'm free between now and Ramadan in case shabs wants to know my schedule !!!

[skinz]

Lately theres been more specific information, with greater detail. sure the idea has been around.......but in this article they exactly tell you how they plan on increasing the value of the dinar. which is the answer we all seek. The frequency has been increasing as well....but we shall wait and see, as always.

Read more:

There's been a few articles come out explaining a Lop in just as much detail, and then named several other countries (turkey, spain, russia) as examples. (all which were Lops). But you're right, noone knows for sure and I'm not going to pretend I completely know what I'm talking about... :x. I'm in this for better or worse, Lop or RV, war/peace, etc.

[sandstorm]

There's been a few articles come out explaining a Lop in just as much detail, and then named several other countries (turkey, spain, russia) as examples. (all which were Lops). But you're right, noone knows for sure and I'm not going to pretend I completely know what I'm talking about... :x. I'm in this for better or worse, Lop or RV, war/peace, etc.

Im right there with you. in it until the end.

[zigmeister]

This is the big question, why haven't they RD'd, they have been talking about it for years. I really believe 2010 was the planned currency change, what brought it to a halt? Were they not ready? Why weren't they ready, they knew it was coming down the pike.

I don't like deletion of zero's off of currency stories, but if they planned to RV they certainly would not say it. It drives me crazy, either they mean what they are saying or they are saying it to keep people from buying more of their pink stuff.

[KamelKeeper]

This is the big question, why haven't they RD'd, they have been talking about it for years. I really believe 2010 was the planned currency change, what brought it to a halt? Were they not ready? Why weren't they ready, they knew it was coming down the pike.

I don't like deletion of zero's off of currency stories, but if they planned to RV they certainly would not say it. It drives me crazy, either they mean what they are saying or they are saying it to keep people from buying more of their pink stuff.

Trigger says he is going with the later. BTW, he will be by shortly to get Trixie. Tell her to be ready this time or the Tesla leaves without her, lipstick or no lipstick. Goofy Kamels.........

[sandstorm]

This is the big question, why haven't they RD'd, they have been talking about it for years. I really believe 2010 was the planned currency change, what brought it to a halt? Were they not ready? Why weren't they ready, they knew it was coming down the pike.

I don't like deletion of zero's off of currency stories, but if they planned to RV they certainly would not say it. It drives me crazy, either they mean what they are saying or they are saying it to keep people from buying more of their pink stuff.

Well for a rd to be successful they need a stable economic and political situation. in which they have neither......to distribute a new currency under turmiol is just asking for failure.

[caz1104]

Central Banks don't announce major revaluations of that caliber because none have ever happened. Iraq is unique in that regard, if indeed they do have a 100,000% revaluation of their currency overnight, or over a short time of exchange.

Of course they announce and plan for re-denominations for months or years, but they eventually do them. Iraq has been talking about that since 2004 or 2005. Have they done it yet? No. Will they? Maybe, but probably not anytime soon. People think it's a bad move, since the government and economy is so fragile and unstable still.

The better option? Reduce the money supply as much as possible to have a lower revaluation, around 5 to 10 cents, bring in "investor currency" and then slowly allow it to float up, managed, to around a dollar and keep it like that for two years while waiting it out. If things pan out well for Iraq, they may go higher into the Kuwait exchange rate territory.

They don't announce big RVs because none have ever happened.

That's why this could still be something that happens, regardless of past/historical economic conditions and events.

I loved this post!!!!!!

[zigmeister]

Trigger says he is going with the later. BTW, he will be by shortly to get Trixie. Tell her to be ready this time or the Tesla leaves without her, lipstick or no lipstick. Goofy Kamels.........

She will be ready. She is bored with me. I won't go outside and play Kamel games with her cause it's to damn hot!

[KamelKeeper]

She will be ready. She is bored with me. I won't go outside and play Kamel games with her cause it's to damn hot!

I see the heat on the news....ugh. Welcome to my world.

Have Trixie pack a lunch. We change the itinerary and head to Baghdad.....somebody needs to get this party moving. Oh, that means you too. Two lunches, and if you don't make bologna sandwiches, Trigger and I will take lunches too. Beware Maliki: the Tesla Team is on the move............

Wow. Teslas, Gulf Streams, cranial index fingers, pink flip flops, non-bologna sandwiches and Kamels with pink bras. This is one kool group. I am sorry Maliki will not get to know all of us a little better.

Edited June 26, 2012 by KamelKeeper

[zigmeister]

I see the heat on the news....ugh. Welcome to my world.

Have Trixie pack a lunch. We change the itinerary and head to Baghdad.....somebody needs to get this party moving. Oh, that means you too. Two lunches, and if you don't make bologna sandwiches, Trigger and I will take lunches too. Beware Maliki: the Tesla Team is on the move............

Wow. Teslas, Gulf Streams, cranial index fingers, pink flip flops, non-bologna sandwiches and Kamels with pink bras. This is one kool group. I am sorry Maliki will not get to know all of us a little better.

:lol:

[gamaray]

Count me IN as well KK.............I'd love going to camel camp in the desert.........BTW you still owe me a lunch!!

[TQueezy]

TQueezy, on 26 June 2012 - 08:16 AM, said:

Central Banks don't announce major revaluations of that caliber because none have ever happened. Iraq is unique in that regard, if indeed they do have a 100,000% revaluation of their currency overnight, or over a short time of exchange.

Of course they announce and plan for re-denominations for months or years, but they eventually do them. Iraq has been talking about that since 2004 or 2005. Have they done it yet? No. Will they? Maybe, but probably not anytime soon. People think it's a bad move, since the government and economy is so fragile and unstable still.

The better option? Reduce the money supply as much as possible to have a lower revaluation, around 5 to 10 cents, bring in "investor currency" and then slowly allow it to float up, managed, to around a dollar and keep it like that for two years while waiting it out. If things pan out well for Iraq, they may go higher into the Kuwait exchange rate territory.

They don't announce big RVs because none have ever happened.

That's why this could still be something that happens, regardless of past/historical economic conditions and events.

I loved this post!!!!!!

Read more:

Thanks! I loved writing it. I don't like when people who swear that those who contemplate a straight-up RV as an option are delusional and say that an RD is the only likely outcome. So, that's why I take the hybrid approach. Like Adam does. Not that I'm speaking for Adam or really supporting directly his opinions and statements on our situation with the dinar.

[sandstorm]

Central Banks don't announce major revaluations of that caliber because none have ever happened. Iraq is unique in that regard, if indeed they do have a 100,000% revaluation of their currency overnight, or over a short time of exchange.

Of course they announce and plan for re-denominations for months or years, but they eventually do them. Iraq has been talking about that since 2004 or 2005. Have they done it yet? No. Will they? Maybe, but probably not anytime soon. People think it's a bad move, since the government and economy is so fragile and unstable still.

The better option? Reduce the money supply as much as possible to have a lower revaluation, around 5 to 10 cents, bring in "investor currency" and then slowly allow it to float up, managed, to around a dollar and keep it like that for two years while waiting it out. If things pan out well for Iraq, they may go higher into the Kuwait exchange rate territory.

They don't announce big RVs because none have ever happened.

That's why this could still be something that happens, regardless of past/historical economic conditions and events.

if we throw out all historical past, economics, all the data and stats, and throw out everything the cbis been saying.........well sure anythings possible. Why stop at a 3.42 rv. Might as well it a rv to 25.00 rv.

theres really no limits or parameters. it can be whatever we imagine it to ber

Edited June 26, 2012 by sandstorm

[TQueezy]

if we throw out all historical past, economics, all the data and stats, and throw out everything the cbis been saying.........well sure anythings possible. Why stop at a 3.42 rv. Might as well it a rv to 25.00 rv.

theres really no limits or parameters. it can be whatever we imagine it to ber

Without going to that level of hyperbole, my point is that always basing everything on the past is not a good policy. Can we treat war the same way? Look what happened with World War II, Vietnam, everything is different slightly. You can't look to the past for help, is all I'm saying. If anything, it should be done to look at what not to do. Case in point when they have R/D articles and point out Turkey and other countries who R/D.

Yes, basic economics tells us that with that much money in circulation and no reduction of quantity, the value of each base unit can't be raised that high or they would have too large of a liability on their hands. But it's a complicated system, the world economy. Not everyone is going to change out revalued IQD for a foreign currency and expect the CBI to cover that. Money gets floated around and used to balance out investments, sovereign debt, payments, etc. My guess is they could support up to a 3.50 revalue with only just 250 billion dollars in foreign currency reserves and at least 75% of their dinar cash notes taken out of circulation.

But the big thing people are missing here is this: They use dinar sometimes, but most people use US Dollars. Those are not considered part of the country's local money supply. It's a liability of the central bank and government banks only. What this means is that when the IQD comes out, people will trade in US dollars for it. The US dollars don't count towards a money supply, so that's immediately money taken out of circulation that didn't exist. Direct plunked into the CBI foreign reserves. IF they have billions and billions of dollars worth on the streets, there's your answer to an easy swap to support a 3 dollar RV. The other dinar can be counted at face value easily in that case.

[jeepguy]

ERBIL, June 25 (AKnews) – The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency.

The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it.

The smallest unit of the current Iraqi current is 250 Iraqi Dinars which is equivalent to $0.20

The removal of three zeros is expected to raise the value of the Dinar as well as facilitate dealing with the currency and the payroll system in the country.

The Iraqi government and the securities committee have sounded fear that the process will negatively affect the Iraqi stock exchange market.

A member of the Finance Committee Najeeba Najeeb told AKnews that “there is a trend in the attitude of the legislative authority to support the CBI to restructure the Iraqi currency and remove three zeros by early next year”

“This subject is starting to become more significant for the Finance Committee members and the Economic Committee day after day” she said, “though the preparations by the CBI to implement the process are ongoing, they are not complete yet”

According to Najeeba, the process of removing the zeros from the Iraqi Dinar will be implemented over a period of two years through governmental banks.

Also, the new currency will include small bills and coins as well as large bills equaling about $180 each.

sorry if this has been posted once but at the last line ------ new currency small bills and coins and large bills = 180.oo ----- are they compairing this number too ----250 dinars will be = too 180.oo ???

[ReVbo]

ERBIL, June 25 (AKnews) – The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency.

The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it.

The smallest unit of the current Iraqi current is 250 Iraqi Dinars which is equivalent to $0.20

The removal of three zeros is expected to raise the value of the Dinar as well as facilitate dealing with the currency and the payroll system in the country.

The Iraqi government and the securities committee have sounded fear that the process will negatively affect the Iraqi stock exchange market.

A member of the Finance Committee Najeeba Najeeb told AKnews that “there is a trend in the attitude of the legislative authority to support the CBI to restructure the Iraqi currency and remove three zeros by early next year”

“This subject is starting to become more significant for the Finance Committee members and the Economic Committee day after day” she said, “though the preparations by the CBI to implement the process are ongoing, they are not complete yet”

According to Najeeba, the process of removing the zeros from the Iraqi Dinar will be implemented over a period of two years through governmental banks.

Also, the new currency will include small bills and coins as well as large bills equaling about $180 each.

sorry if this has been posted once but at the last line ------ new currency small bills and coins and large bills = 180.oo ----- are they compairing this number too ----250 dinars will be = too 180.oo ???

They're saying the new 200 dinar note will be worth $180.

You may not want to bring this up again, though. It's been a bit of a sore subject today.