Three Zeros To Be Canceled From Currency

[Belecosity]

Previously the decision of eliminating zeros from Iraqi currency was not ratified by ministry of finance as the budget was done with the present currency.

Sounds like good news to me. I think 

[RVPleaseToday]

It does suggest that they will do something this year so next year's budget can be done in the new currency.

[teresa43]

 

1. I need clarification.this has probably been answered a lot.are they talking about lets say the 25000 note and turning it into a 25 note,or are they saying .00086 turning into .86.this dinar stuff is really freakin me out.who can you believe on ANY issue?

 

yeah I need clarification too, the article said they are deleting  3 zeros from currency so 25000 will be 25.00,  but  .00086 is the exchange rate  but everyone thinks the zeros will be deleted from there. I don't understand can someone explain it to me.

[ATHIM]

If they were lopping, they could easily pay double for the incoming Dinar with the reserves they have on hand. A LOP is effortless for them, an RV though will need some massaging and a warming of the area before the band aid is slowly removed. De-La-Rue machines can verify notes immediately, so I think the counterfeiting thing is a red herring stall tactic IMHO.

[SocalDinar]

because you will have trillions and trillions of dinar being collected and redeemed. the threat of counterfeiting is atmaximum potential during a rd

I remember an article out early last year that the CBI stated that it was up to the banks to detect counterfeit notes and that the CBI would not be responsible

for these notes. Basically it was left up to the banks to verify that the notes were real.

 

I wonder what ever happened to those Delarue machines.

[zigmeister]

I think they are more concerned about the counterfeit dollars than dinars.  Besides which I still doubt their number count of dinars.

[keepmwlknfny]

 

1. I need clarification.this has probably been answered a lot.are they talking about lets say the 25000 note and turning it into a 25 note,or are they saying .00086 turning into .86.this dinar stuff is really freakin me out.who can you believe on ANY issue?

 

Not trying to start a debate here but realistically if they delete the zeros, your 25k note will be equal to (1) NEW 25 note.....

 

Your 25k note will still carry the .00086  which is equal to a little under 25 USD....

 

Your NEW 25 note, will be at .86 which will also be equal to a little under 25 USD....

 

Nothing is gained, nothing is lost.....

 

If you want, you can research the redenomination that happened in Turkey (they dropped 6 zeros) and it might clear things up a little....that was the most recent I believe....there are others....Russia, Brazil, Mexico, Zimbabwe, Zambia and the list goes on.....I think Iran is thinking about dropping zeros off their currency as well....

yeah I need clarification too, the article said they are deleting  3 zeros from currency so 25000 will be 25.00,  but  .00086 is the exchange rate  but everyone thinks the zeros will be deleted from there. I don't understand can someone explain it to me.

See my reply above....

[Nelg]

 

1. I need clarification.this has probably been answered a lot.are they talking about lets say the 25000 note and turning it into a 25 note,or are they saying .00086 turning into .86.this dinar stuff is really freakin me out.who can you believe on ANY issue?

 

It means removing the bills with three zeros off the street or out of circulation and replacing them with smaller denominations.  

"The prime difficulty will be - is withdrawing 30 trillion dinars from the Iraqi market at the present time which will be replaced by new currency." 

[ChuckFinley]

Thanks Blueskies. These guys talk a good game. Lets close this deal and head to the islands. Frist round is on me.

[Tripphood]

Here is an old article talking of how the currency will retain vale after zeros removed.

Project to delete the zeros of the Iraqi currency

Date: 5/12/2011 3:31:37 AM, News Category College of Business and Economics

Discussed by experts and economists and businessmen during a scientific symposium hosted by the Faculty of Administration and Economics at the University of Babylon raising project for the zeros of the Iraqi dinar and its negative effects and positive on the market in the Iraqi Chamber of Commerce expressed its fears of the project. The adviser said the Iraqi Central Bank of the appearance of Mohammed Saleh during a speech at the symposium that the seminar dealt with some clarifications about the project's future to delete three zeros from the Iraqi dinar was an intellectual and scientific dialogue and exchange of views about the importance of the project in the future Alentmah Iraq and building a new system of payments.

And the benefit that this project is strategic and if completed it will be presented to the House of Representatives and the government for the purpose of examination and approval and that this project must possess to accept people because they are the decision-makers, stressing that this project will benefit the Iraqi economy and the citizen is no fear of its application because of all the countries that emerged from the long conflicts and economic failures and high inflation have tended to install the new monetary system and threw the economy and reduced the cost of economic processes.

He said the objectives of this project is to improve the management of the Iraqi currency from the remnants of more than three decades of economic inflation assured that this project does not affect the wealth of the people, nor their currencies or contracts with each other on the contrary will be maintained and strengthen economic relations, for its part found the head of the Chamber of Commerce Babylon honest Afaihan raising project zeroes are likely the two negative and positive, pointing out that the point of view the central bank is that the deletion of zeros does not affect the value of the Iraqi currency but will reduce the cluster size of large financial market are either merchants Viamlon this mass of financial and large lot and we think it will affect the economy and currency trading .

In contrast, sees the legal representative of the Central Bureau of Statistics Muhannad Abdul Hadi that the draft raise three zeros from the Iraqi dinar will contribute to reducing the inflation that exists in Iraq, which increased after the change and will maintain the currency and its value in the purchase, stressing the need for the project includes the basket integrated solutions related to contractual obligations and rights between the state and the citizen.

Any thoughts on this article?

Here's another......

This PDF was published last June, 2011 but was unable to translate (google does not work correctly).

Today, with Enorrste's help & his Arabic speaking friend, we were able to create the following document. This seems to confirm RV and rate.

_____________________

Link to original Arabic version... (also posted in Research Library)

http://www.uobabylon.edu.iq/uobcoleges/fileshare/articles/%D8%B1%D9%81%D8%B9%20%D8%A7%D9%84%D8%A7%D8%B5%D9%81%D8%A7%D8%B1.pdf

Translation...

Proposal to raise zeros from the dinar Ala a paper

A. M. D. Jawad Kazem al-Bakri

Usually financial authorities represented by the MOF or MOTreasury use monetary policy in order to preserve the value of the currency in addition to taking advantage of all the resources available in the lawful economy in order to reach full employment and economic growth.

This is done by those authorities using the monetary policies such as spending policy and taxation. The monetary authorities use these two tools to solve the problems such as inflation, unemployment, etc. That is usually called the gap between inflation and deflation that the local economy can be exposed to. In that case the central bank can only be asked to expose the local currency to satisfy the supply and demand.

The history of modern economics tells us that many nations in the world such as the countries involved in WW1 and WW2 or most recently the collapse of the Eastern Bloc countries, have taken one of these two measures, either by changing the whole national currency or eliminating zeros from the currencies so that it can go back to its previous stable condition. In the Iraqi experience after the fall of the dictatorial regime, the present authorities have decided to change the Iraqi currency to a new currency.

This does not affect the value of the dinar so far but it opens the dinar to the free currency market such as against the dollar, etc. That condition has made the dinar safe at one dinar equals .067 cents to one dinar which actually gives the impression of the reduction of the purchasing power of the IQD against the dollar recently.

If three zeros were lifted from the IQD this means the IQD becomes stronger 1000 times in terms of value. For example, a pack of cigarettes that was selling for 1000 dinar would be only 1 dinar. If it was a conversion like that, if the three zeros were lifted from the previous currency, this means the old 1000 dinars will buy 1000 packs of cigarettes instead of 1.

From a theoretical point of view, when three zeros are lifted from the IQD its buying power will increase drastically so that the dollar will be equivalent to 1.5 dinars only.

Therefore, let’s say the merchandise imported from abroad is valued before lifting the zeros at 1.2 million dinars, or $1000; if you lift the three zeros 1200 dinars will equal $1000; therefore, that will not bring any negative impact on the Iraqi citizens.

On the positive of lifting the zeros from the IQD, the operation of lifting three zeros from the IQD, according to a study and sound physical policy, will lead to these positive factors:

One, it increases the monetary power of the IQD to buy things.

Two, it increases the value of exchange from the dinar to other currencies.

Three, it provides more confidence for more foreign investment in the economy.

Four, in increases the confidence of the Iraqi citizen in his own currency, as is the case with the dollar and other currencies in their own countries.

Dr. Bakri

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

Here is a Google translation of this paper. It confirms exactly the Arabic translation (the translation is clearer)

Proposal to raise zeros from the Iraqi dinar

Publisher \ Editor \ Author (Author / Editor / Publisher)

Jawad Kazem al-Bakri Abdul Nassif

Citation Information

Jawad Kazem, Abdullah, Nassif, al-Bakri, a proposal for raising the zeros of the Iraqi dinar, Time 5/27/2011 7:08:46 PM: College of Business and Economics

Description Alabestrki (Abstract)

Proposal to raise zeros from the Iraqi dinar

Full Description (Full Abstract)

Proposal to raise zeros from the Iraqi dinar a. M. D. Jawad Kazem al-Bakri usually Matqom financial authorities of b (Ministry of Finance) using the (fiscal policy) in order to maintain the general level of prices, in addition to the use of all productive resources available in the local economy to reach a state of full employment, as well as supporting economic development, and is done through the use of financial power to the instruments of fiscal policy of B (government spending, and taxes). and use financial power of these tools to address the problems (inflation, recession, unemployment), which is usually self-styled (the gap inflationary gap and deflationary), who might be exposed to the local economy, in addition to their use a target to raise the level of growth in the country. Thus, the fiscal authority has no right to influence money supply and demand as they are the prerogative of the monetary authority of the Central Bank.

History tells us modern economy that many of the countries of the world (which went through wars large Kaharben Wars I and II or the collapse of their inclusiveness as states the former socialist camp) has proceeded to one of two actions, either you change the national currency or Removing the zeros of them to go back to square economic stability. In the experience of Iraq and after the fall of the previous dictatorial regime has the Coalition Provisional Authority to change the Iraqi currency a new currency, but equal to that in value, which did not deliberately CPA to raise the purchasing power of the Iraqi currency against the U.S. dollar or other currencies. caused this situation to keep the Iraqi dinar is equivalent to (0.067) U.S. cents, which indicates a significant decrease in the purchasing power of the Iraqi dinar.

If what has been raised (three zeros) of the Iraqi dinar, it will lead to a rise in value (1000) once calculated value Almertbah to the number of zeros that have been filed, any can of cigarettes that were sold (1000) JD possible purchase after the lifting of zeros dinar one, and one thousand dinars modern can be obtained by a thousand a pack of cigarettes. In theory and when lifting (three zeros from the Iraqi dinar), the purchasing power will rise against the dollar rapidly to become one U.S. dollar equals (JD and a half) just so that the goods imported from abroad and valued by the lifting of the zeroes (1.2 million ) Iraqi dinars, equivalent to (1000) U.S. $ will be worth after the lifting of the three zeros (1200) Iraqi dinars, equivalent to (1000) dollars as well, and this is going to Aajelb remember any negative effects on the Iraqi citizen, in theory.?

Positives raise zeros from the Iraqi dinar: The process of lifting the three zeroes from the Iraqi dinar thoughtfully and according to tight monetary policy will lead to the following pros:

1. Raise the purchasing power of the Iraqi dinar .

2. Raise the Iraqi dinar exchange rate against other currencies .

3. Increase the confidence of the Iraqi economy to foreign investors.

4. Increase the confidence of Iraqi citizens that have become national Bammelth comparable to other currencies such as the U.S. dollar and the dinar Jordanian dinar ... etc..

Edited April 17, 2013 by Tripphood

[gp49]

Thanks blueskies.

 

I always appreciate reading your posts

[TotalNewb]

Effectively, they have been removing the zeros for awhile now thru the auctions. Pulling in IQD and selling USD. They have not sold IQD for quite some time. The auctions were the only way the CBI could control the money supply and inflation.

Once they do it.. Iraq is going to implement tarrifs and corporate taxes and income taxes and they are going to take off economically. It is a no brainer. Once they get rid of the one thing blocking this deal, Maliki, they will pull the trigger.

[SnowGlobe7]

It does suggest that they will do something this year so next year's budget can be done in the new currency.

 

They said that last year too I believe....so we wait....again

[houstonguy]

I can't believe they are still talking about this!

[hame55]

 

1. I need clarification.this has probably been answered a lot.are they talking about lets say the 25000 note and turning it into a 25 note,or are they saying .00086 turning into .86.this dinar stuff is really freakin me out.who can you believe on ANY issue?

 

It's ambiguous - could mean both ways (LOP) or RV. That's how they can keep taking about it without revealing their hand.

If the numbers are real, then an RD is in the works and we get nothing. (oh...)

[keepmwlknfny]

Tripphood, the original article is taken in the wrong context. Its not a straight RV.....thats not what deleting the zeros is.....its a revaluation through redenominating/lopping zeros.....

 

Enorreste, just like Kap, do nothing but pump these articles as the objective we are waiting for and if you plan on not making any money, then they would be correct....

[JuryPicker]

Tripphood, the original article is taken in the wrong context. Its not a straight RV.....thats not what deleting the zeros is.....its a revaluation through redenominating/lopping zeros.....

 

Enorreste, just like Kap, do nothing but pump these articles as the objective we are waiting for and if you plan on not making any money, then they would be correct....

 

That may be true, but You sure can't state it as a fact. Cause you don't really know. So stop posting as a fact.

Edited April 17, 2013 by Markinsa
Truncated Sentence

[Goeers]

Reverse pshycology................ NO IRAQ DON"T DO IT!!!!   WE LIKE BEING BROKE!

[keepmwlknfny]

That may be true, but You sure can't state it as a fact. Cause you don't really know. So stop posting as a fact.

Google is your friend......use it.....

 

You dont believe the gurus when they call RV everyday, but you will believe a "translated" article from them? 

 

It really makes a mockery of this speculation.....

[LIBoy]

IMO, they will never promote and publish articles that suggest a RV.  All these articles promote the idea of a RD.  That is what they are supposed to do.  That is what they want.  Promote an RD and then BAM hit em with a RV.

[keepmwlknfny]

IMO, they will never promote and publish articles that suggest a RV.  All these articles promote the idea of a RD.  That is what they are supposed to do.  That is what they want.  Promote an RD and then BAM hit em with a RV.

Thats what we are hoping......that they are full of crap with all these lop articles.....

 

But your right, no central bank would EVER publish a campaign of articles of a RV of this magnitude that our fav gurus are claiming.....

[rken]

The 10 year plan is at its end. The US did not put this plan in place to walk away with nothing. LOL use your brian (GLP speak)

[icfaith]

As always keepmwlknfny, you rely on the past to help bring strength to your present statements which are not factual for Iraq.  This is a whole different ballgame.  You can't use the countries from the past as they RD/lop due to instability in their financial sector.  This is not the case with Iraq.

 

I remember Iraq stating that Phase II (deleting the zeros) was to remove the 25,000 - 10,000 - and 5,000 notes from the Iraqi public.  Which for the last 4 years is what the CBI has been doing.  They was going to also remove the 1,000 notes but decided later not to do this as they could easily transition these notes out after bringing in the new currency (lower denoms) that would slowly (over a period of 2 years) phase the 1,000 notes out.

 

Also remember articles of the Iraq citizens being angry due to they only had the 250, 500 and 1,000 notes to use. Which caused them to go around with paper grocery bags of money to do their regular shopping.  During this time, the value of the Dinars against the USD went up which made the USD more favorable to the Iraqis since they did not need as much of the USD to carry around.  All part of the CBI's plan to "delete the zeros" or remove the larger Dinars from the streets and have the Iraqi citizens to depend more on the dollar.

 

Once Phase II is completed, which it sounds they are near completion, they will lower the value of the Dinar rate against the USD, as they need to have the Iraq citizens to have more confidence in the Dinar and let go of the USD.  This is Phase III.  We are entering Phase III or have already entered it just recently.

 

By this time, the CBI has gained control of the majority of the Dinar prior to re-value.  And CBI has passed their mission of lowering the amount of Dinar within Iraq.  This has all been stated repeatedly in Iraq news articles.

 

Now keep, can continue to believe in his myths, but Iraq will over time gain value to their Dinar.  The when and how much, only Iraq knows. 

[keepmwlknfny]

 

As always keepmwlknfny, you rely on the past to help bring strength to your present statements which are not factual for Iraq.  This is a whole different ballgame.  You can't use the countries from the past as they RD/lop due to instability in their financial sector.  This is not the case with Iraq.

 

I remember Iraq stating that Phase II (deleting the zeros) was to remove the 25,000 - 10,000 - and 5,000 notes from the Iraqi public.  Which for the last 4 years is what the CBI has been doing.  They was going to also remove the 1,000 notes but decided later not to do this as they could easily transition these notes out after bringing in the new currency (lower denoms) that would slowly (over a period of 2 years) phase the 1,000 notes out.

 

Also remember articles of the Iraq citizens being angry due to they only had the 250, 500 and 1,000 notes to use. Which caused them to go around with paper grocery bags of money to do their regular shopping.  During this time, the value of the Dinars against the USD went up which made the USD more favorable to the Iraqis since they did not need as much of the USD to carry around.  All part of the CBI's plan to "delete the zeros" or remove the larger Dinars from the streets and have the Iraqi citizens to depend more on the dollar.

 

Once Phase II is completed, which it sounds they are near completion, they will lower the value of the Dinar rate against the USD, as they need to have the Iraq citizens to have more confidence in the Dinar and let go of the USD.  This is Phase III.  We are entering Phase III or have already entered it just recently.

 

By this time, the CBI has gained control of the majority of the Dinar prior to re-value.  And CBI has passed their mission of lowering the amount of Dinar within Iraq.  This has all been stated repeatedly in Iraq news articles.

 

Now keep, can continue to believe in his myths, but Iraq will over time gain value to their Dinar.  The when and how much, only Iraq knows. 

 

Those countries lopped to erase the after affects of very high inflation......which is very high numerical denominations.....and an inflated money supply. Those are the facts.....when these countries stabilize economically, they redenominate and basically start over. Its an easy way out.....its not what we want. 

 

Im not here saying the dinar will never gain value.....it surely will......Im not even saying HOW they will do it.....cause I dont know.....But there IS two methods of getting the dinar on par with the USD as they proclaim.....one will not make us much money (RD), the other would make us money over time (gradual rise in value)

 

But I dont think its beneficial for anyone (except dealers of course) to twist these articles into something we want to happen vs what its really saying.....

[icfaith]

While we are on this topic I want to tell everyone that I talk on Facebook and Skype with a few friends from Iraq regularly.  In the point of haveing to shop with only the lower Dinar notes like the 250's and 500's.  It make it hard to create change for shop owners to give to their customers.  I've been told that a regular practice is to tear a note to make change.  What they do is of something cost 100 Dinar and the customer gives the shop owner a 250 Dinar note.  The shop owner will tear a portion off of the 250 note and initial it and give it to the customer as change.  Now the customer can only use this torn piece of note in this one store as the shop owner has the remaining part of the note.  So later the customer comes back to the store and after purchasing whatever, then gives the shop owner the pieve of torn note with the initials and the shop owner tapes it back together.  Later the shop owner will take the taped note to the bank and have them replace it with a whole note that has not been torn.

 

This is what caused later for the Iraq government to print more Iraq Dinars as there was so many of these torn notes that was used for change that they had to have them destroyed and replaced.