Zero's cannot be removed in 2013

[tenmillion]

Your welcome Rayzur!

[CrappieShark]

Rayzur~

The rationale behind seeing lower denoms would mean a sign of a revaluation....

(exclude the redenomination scenario)

If the largest note was, for example, a 25 note...then it would only be worth 2 cents and a 10 note would be worth even less (A).

They would need to carry around even more notes than they do now to make a purchase. So replacing the current IQD with lower denominations would defeat the purpose of reducing the amount of notes that citizens have to cart around if there was not a revaluation happening at the same time.

Issuing the lower notes would HAVE to coincide with a revaluation ~

(A) 25 IQD X .00086 = .02 cents ~ 10 IQD = .00086 (without revaluation)

( B ) 25 IQD X $1.00 = $25 dollars ~ 10 IQD X $1.00 = $10 dollars (with revaluation)

*This example does not factor in a redenomination - which is another issue [/colo

**$1.00 was used for this example only...no speculation intended

Making the dinar equal to the dollar has been said many times in different correspondence by Iraq. So I believe in an RD LOP scenario you have hit it right on the head. The problem Iraq has though is that a lot of investors and speculators are not happy with this scenario as a hope for a big return was the basis for buying into helping them rebuild and buying these large amounts of dinar. SO we see vascillation. Shabibi has a desire to see the dinar back at it's pre-war sanctions status which would be above 3-1 with the USD. In that scenario with a LOP RD you would of course make a bit more money. Not much but some. That however is going to have a negative effect on Iraq for quite a while as that was not the desired outcome by so many who speculated and invested. Iraq gave out the money knowing this. Now that they can actually do this they are haveing the greed versus moral backlash. Sad to say greed wins almost always in these cases. The religious faction which still has great power in Iraq says do the moral thing. The economic greed says lop it and let everyone take their losses. This is why we continue to see vascillation on this issue. My two cents just the way I see it.

I hope this helps

[markb57]

so, I guess I might be missing something here but it seems to me that this whole event would be a revenue neutral event and we would all just make back what we invested, not more, except maybe a little less with exchange fees etc.

So the question begs to be answered still. What would we hope to gain by any of this? Seems to me its time to re-evaluate. I mean this seriously. if its an even swap, why invest the money and time?

[bamf1414]

I am so right there with you Daiite.... completely .... (and have a few really good banking presentations I could send your way if you want)... What I didn't understand... is why people would be so excited about the release of the lower denoms... as if that were a seperate event from an RD or RB.... or if the thinking is that lower denoms mean an RV over and RD... I could not understand the excited anticipation for the lower demon release...

Guess I was asking why are some so excited about that.... cause I want to know if I am missing something really good, so I can be excited too....

As always Dalite, thanks for your thoughtful replies and committed energy in keeping things so positive whilst we traverse the white water rapids section of this ride..

I think the reason people look for lower denoms is that fact that if a loaf of bread cost 25,000 dinars, and they are releasing 1's thru 20's, they sure won't expect people to carry around that much cash

[Dalite]

so, I guess I might be missing something here but it seems to me that this whole event would be a revenue neutral event and we would all just make back what we invested, not more, except maybe a little less with exchange fees etc.

So the question begs to be answered still. What would we hope to gain by any of this? Seems to me its time to re-evaluate. I mean this seriously. if its an even swap, why invest the money and time?

FWIW, what you outline is not what I signed on for.

Having said that, there are a few stratifications of the Dinar speculator. For each one there is a different perspective available.

For those in it while the CBI was moving from hyperinflation to single digits, the Dinar has doubled in value.

For those who in it after the rate stabilized ( late 2009), it has been a parking lot for money , and a slow and painful wait for what looks like an even longer ride.

Meanwhile, back at the ranch, the world economy is in the toilet. Value is being chased from one failing economy to another.

Did the Dinar lose value during this time? Has it lost value at any other point in time since the CBI fell into Shabibi's lap?

Are there indications that it will lose value in the immediate future?

I don't know the ultimate answers to these questions, but I do know what I see when I turn on the world news. Economically, there is little stability out there.

This has a possibility to be the Rabbit and the Hare of Economic Bedtime Stories.

As long as Iraq can at least do as well as they are doing now, when the dust clears, they may have a valuable currency, just because it couldn't get worth much less in a world where every other currency was losing value.

I sincerely hope to be wrong when I see the change being much slower and more painstaking than an overnight increase in value of millions. Like everyone else, I like the edge that anticipation brings; the dream of better things and a brighter future.

Each has to make their own path; I have decided that what I put into this is the same as " found money". I have been so long without it that it gives the appearance it was never there. Any blip on my financial radar when the money was committed has long since smoothed out.

The world financial mess was not anticipated to be as serious as it is now. Why not park some value in hard to find crevices.

You may need to go looking for it later on, and may find unanticipated value, when you least expected it, long after you had stopped looking for it every day.

For me, it became a matter of turning dissapointment in my own personal greed, clouding my judgement, into a search for Silver Linings. They are out there...

[sandyf]

In order that a currency can redenominate, a new ISO code must exist. At this point in time there is no new code for Iraq.

Zambia is due to redenominate on 1st Jan and the new code, ZMW, was issued on 31st Aug.

According to an article in the Zambia Daily Mail dated 21 September 2012, the Bank of Zambia has now received images of the new banknotes and coins scheduled to be introduced on 1 January 2013. When the country rebases its currency, the notes will be in denominations of 2, 5, 10, 20, 50, and 100 kwacha, with coins of 1 kwacha, 5, 10 and 50 ngwee. Based upon the imprint that appears at the lower right on the back of the new notes, Germany's Giesecke & Devrient is the printer of all denominations. Zambia's current notes have recently printed by G&D, De La Rue, SABN, Oberthur, and Canadian Bank Note Company. All the new notes are dated 2012 and feature a new signature of governor Michael M. Gondwe.

The rebasing of the kwacha, by removing three zeros, was expected to take effect in July 2012, but was delayed due to "unforeseen technicalities."

Edited September 25, 2012 by sandyf

[PacoTaco]

Well, true they can't be removed in 2013 if they were removed in 2012!

Go RV!