lower denomination question

[Powerofprayer]

Question for you guys: I read an article from a post that indicated that people in Iraq are exchanging 25k notes for the bed smaller denominations. The article/post stated that the people were receiving the new 1, 2, 5, etc. Now my question is are they receiving two new 10 dinar plus five for a old 25k not or are they receiving 5000 new 5 dinars?

[bg888]

Got a link to that article? I suspect your answer is that there is no such thing occuring right now... Hope I'm wrong

[Powerofprayer]

I believe it is occuring, however my concerns are if the people in Iraq are receiving 25 new dinars for 25,000..

[Badrabbit]

We will have to wait to see, however back when the USD started to remove the high denom notes ($10,000, $5,000 $1,000) from circulation they gave 100 x $100 bills back to you for your $10,000 notes,50 x $100 notes for your $5,000 note, 10 x $100 note for your $1,000 note...what We want is for the CBI to do the same (IMHO this is what will happen) to there High Denom notes, then revalue. However noone truely knows.

[keepmwlknfny]

Question for you guys: I read an article from a post that indicated that people in Iraq are exchanging 25k notes for the bed smaller denominations. The article/post stated that the people were receiving the new 1, 2, 5, etc. Now my question is are they receiving two new 10 dinar plus five for a old 25k not or are they receiving 5000 new 5 dinars?

I dont believe anyone is exchanging for new bills at this moment.....the bill has yet to be officially approved and implemented.....

But there are articles stating that IF this bill is passed, the exchange ratio between old and new bills would be 1000 to 1.....not what we want!

[ReVbo]

Did I not give you the answer you were looking for on the other thread? It ain't happening. If it was, the information would be everywhere. This site has 40,000 members, many of which watch Iraqi TV, unlike Blaino, who just makes stuff up, and many here still have contacts in Iraq who would also have heard about it. When they start exchanging money, you'll know about it. Promise.

[Powerofprayer]

I appreciate all the responses! I believe our ideal situation would be to received 25,000 new dinars, however per the lopsters we would only received 25. I agree the IQD will def revalue...by 3.62 or 4.00 or 4.40 however this supports the Lop which I do not. I am by all means no lopster.

[keepmwlknfny]

I appreciate all the responses! I believe our ideal situation would be to received 25,000 new dinars, however per the lopsters we would only received 25. I agree the IQD will def revalue...by 3.62 or 4.00 or 4.40 however this supports the Lop which I do not. I am by all means no lopster.

Not per the lopsters.....per Shabibi.....

[jackster]

Not per the lopsters.....per Shabibi.....

Keep,

There you go again. Causing problems by bringing up reality. That's why you get negged.

But you are correct. The lopsters never created the idea of removing 3 zeros. Shabibi had the original thought on this.

[rico1]

Not per the lopsters.....per Shabibi.....

Keep, I gave you a plus. You shouldn't get neg'd for telling the truth whether we like it or not.

[sandyf]

Iraq was talking about redenomination before the word 'lopster' was spawned.

February 06, 2010

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

Edited August 29, 2012 by sandyf

[dontlop]

Iraq was talking about redenomination before the word 'lopster' was spawned.

February 06, 2010

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

i wish someone could explain how they would need to carry less paper money by deleting zeros ...either you carry a single note of 10,000 old dinars .. or you carry a single note of 10 new dinars .... its still one note either way .. worth the same thing , according to cbi at 1000 to one exchange rate .. unless they are lying .. then if they are lying . then the rest of the story could be lies also .. like the gradual removal part .. they could be really planning to remove them all in 3 days and they are lying about it too.

how do we determin what are lies and what isnt a lie ? it cant be what ever way we want this to go is true .. and if we dont want something as investors .. then we just call that part a lie .. or smoke and mirrors.. unless we want to try to fool ourselves , so we can pretend we are going to be rich for a little longer instead of accepting the truth ..

i do agree they cannot pre anounce a rv , but they can pre anounce a no gain redenomination especially if they are telling the truth about a no gain exchange ..then they will pre anounce that

[Bristin]

Not per the lopsters.....per Shabibi.....

Keep, when Shabibi says that he wants to drop the zeros and increase the value of the dinar, in your view does he intend to do so by:

First make each new dinar the value of 1,000 current dinar, i.e., dropping the zeros. At the current rate 1,000 current dinar is worth 86 cents and 1 new dinar will be worth 86 cents as well.

Secondly, and perhaps a split second later, Shabibi will increase the value of 1 new dinar to, let’s say 1 dollar, thus increasing its value by 14 cents. This would be the same as increasing 1 current dinar by 0.014 cents (14 cents divided by 1,000 = 0.014). Dinar value would then be driven up or down by market conditions.

Is this how you think this will play out? I am just trying to understand the logic.

Thanks,

[Dalite]

Keep, when Shabibi says that he wants to drop the zeros and increase the value of the dinar, in your view does he intend to do so by:

First make each new dinar the value of 1,000 current dinar, i.e., dropping the zeros. At the current rate 1,000 current dinar is worth 86 cents and 1 new dinar will be worth 86 cents as well.

Secondly, and perhaps a split second later, Shabibi will increase the value of 1 new dinar to, let’s say 1 dollar, thus increasing its value by 14 cents. This would be the same as increasing 1 current dinar by 0.014 cents (14 cents divided by 1,000 = 0.014). Dinar value would then be driven up or down by market conditions.

Is this how you think this will play out? I am just trying to understand the logic.

Thanks,

There is a better possibility the exchange rate will increase to 1000:1, prior to dropping the zeros, rather than after.

I believe every thing else you mention is straight by the book re-denomination.

The number of zeros to be dropped determines the divisor.

It is applied to the currency and the exchange rate to make the change neutral in value.

The trillion liability goes to billion, and the money system is prepped for growth and (in this case) on parity with the dollar.

That is how it works, but Shabibbi hasn't closed the deal yet.

But, it has been the only thing the CBI has been claiming is in their plans since at least 2006.

The bright side to that situation is that it hasn't happened in the past 6 years, and is still meeting with resistance by Maliki and his lapdogs.

It is good to understand the possibilities, but no need to give up hope.

[Bristin]

There is a better possibility the exchange rate will increase to 1000:1, prior to dropping the zeros, rather than after.

I believe every thing else you mention is straight by the book re-denomination.

The number of zeros to be dropped determines the divisor.

It is applied to the currency and the exchange rate to make the change neutral in value.

The trillion liability goes to billion, and the money system is prepped for growth and (in this case) on parity with the dollar.

That is how it works, but Shabibbi hasn't closed the deal yet.

But, it has been the only thing the CBI has been claiming is in their plans since at least 2006.

The bright side to that situation is that it hasn't happened in the past 6 years, and is still meeting with resistance by Maliki and his lapdogs.

It is good to understand the possibilities, but no need to give up hope.

Thanks Dalite for the additional insight. I just want to understand all of the possibilities.

[jackster]

Keep, when Shabibi says that he wants to drop the zeros and increase the value of the dinar, in your view does he intend to do so by:

First make each new dinar the value of 1,000 current dinar, i.e., dropping the zeros. At the current rate 1,000 current dinar is worth 86 cents and 1 new dinar will be worth 86 cents as well.

Secondly, and perhaps a split second later, Shabibi will increase the value of 1 new dinar to, let’s say 1 dollar, thus increasing its value by 14 cents. This would be the same as increasing 1 current dinar by 0.014 cents (14 cents divided by 1,000 = 0.014). Dinar value would then be driven up or down by market conditions.

Is this how you think this will play out? I am just trying to understand the logic.

Thanks,

The redenomination of the currency and the revaluation of the exchange rate will be simultaneous.

Not one minute earlier or later.

1000 IQD that equals $0.86 will become 1 IQD and equal $0.86.

Any time after that, the IQD could increase in value about 16% and then equal $1.00. Tah dah!!! You've got your long-awaited 1:1 RV.

But for giggles, an RV happens 1 hour before the official RD. By the time anyone got wind of it, jumped into their car and trampled anyone in their way enroute to the teller, the window of opportunity would be closed.

[doctor robbins]

The redenomination of the currency and the revaluation of the exchange rate will be simultaneous.

Not one minute earlier or later.

1000 IQD that equals $0.86 will become 1 IQD and equal $0.86.

I agree except that it won't be IQD. The symbol will have to change to something like NID. That will be the smoking gun when the dinar world sees the new symbol and realizes that it was a re-denomination that they were telling us about all along.

[jackster]

I agree except that it won't be IQD. The symbol will have to change to something like NID. That will be the smoking gun when the dinar world sees the new symbol and realizes that it was a re-denomination that they were telling us about all along.

I've never heard that theory before.

In that case, one could exchange 1000 IQD for 1 NID. 1000 IQD equals $0.86. 1 NID equals $0.86.

Then both currencies would be accepted in the markets. Over time, as the banks receive in IQD, they would be removed from circulation.

In Switzerland, both the Franc (SFr) and the Euro are accepted currencies.

This idea would probably be more readily accepted by the Iraqi people.

[DanielM]

I believe it is occuring, however my concerns are if the people in Iraq are receiving 25 new dinars for 25,000..

Deletion of Zeroes and Its Impact on the Iraqi Dinar

A Brief Overview of the Deletion of Zeroes

central bank of Iraq announced in last April that it planned to re-denominate the Iraqi Dinar. This would be done by removing three zeroes from the currency. This is a strategic plan that will need to be passed to the Parliament and Ministerial Council.

Mothahhar Mohammad Saleh, Central Bank Advisor, states this move will allow the people of Iraq to carry less money. This process was expected to begin in September. However, recently it has been reported that it may have been postponed to early next year. This was done because the economic and financial committees of Iraq feel that the economy is not ready for such a change so soon.

This involves the replacement of the current currency and a reprint of 30 trillion Iraqi Dinars. During the process of switching the currency from old to new, both currencies will be dealt in the market. This piece of information was revealed by Abdul-Hussein Abtan, a member of Council of Representatives’ economic committee.

The Iraqi Central Bank expects that this project will be positive for the economy of Iraq. On the other hand there remains the fear that this may cause money laundering in the market. Also, the security committee believes that this will negatively impact trading in the stock market.

The main aim of the ICB is to address inflation. This will be done by reducing the number of bank notes that are in circulation by the deletion of zeroes. Hence, simplifying the payment system. Since, the economy is heavily supported by oil and all transactions are carried in cash, it becomes difficult to carry out the transaction.

Economic Situation

In the past five years the inflation rate of Iraq has fallen from 34 percent to a mere 6.24 percent currently. The expected real growth rate for 2012 is 11.1 percent and the GDP is expected to be 9.1 percent by the end of the year. The country’s foreign reserves have risen to $63 billion due to the rising oil prices.

The deletion of zeroes will allow the value of the Iraqi Dinar to rise. It will facilitate in dealing with the currency and improve the payroll system in Iraq.

How Does it Impact Investment in Iraqi Dinar?

The deletion of zeroes will have a positive impact for the investor. Firstly, this will result in a rise in the value of Iraqi Dinar. Since, both old and new currencies will remain in circulation during the time of exchange. In effect the currency that the investor holds will be worth more.

The main aim in the investment of Iraqi Dinar is for profits. The deletion of zeroes is expected to raise the value of the Dinar and will serve the actual purpose of investment. The ICB believes that this step will speed up the process of raising the value of the Dinar. So, even though investing in Iraqi Dinars has been viewed as a long-term investment, the deletion of zeroes will allow investors to yield profits sooner.

[Bristin]

The redenomination of the currency and the revaluation of the exchange rate will be simultaneous.

Not one minute earlier or later.

1000 IQD that equals $0.86 will become 1 IQD and equal $0.86.

Any time after that, the IQD could increase in value about 16% and then equal $1.00. Tah dah!!! You've got your long-awaited 1:1 RV.

But for giggles, an RV happens 1 hour before the official RD. By the time anyone got wind of it, jumped into their car and trampled anyone in their way enroute to the teller, the window of opportunity would be closed.

Thanks Jackster for the additional insight.