Colombia to present plan to lop off three zeros off peso

[boomer113189]

6 - 10 - 2013

 

(Reuters) - Colombia hopes to lop three zeros off the country's peso currency, a step that might be implemented as soon as mid-2014 when the current presidential term ends, finance minister Mauricio Cardenas said on Monday.

The peso currently trades around 1900 per dollar, making it the smallest-value unit in Latin America after Paraguay's guarani. But President Juan Manuel Santos mooted redenominating it when he took office in 2010.

"It's a very important item on the agenda of President Santos and we are figuring out which is the right time for presenting that deal to Congress," Cardenas told Reuters editors in an interview.

"I can tell you I have ready on my desk a draft bill of what we will present to Congress to get rid of three digits, three zeros...that's something we would do when we consider what is the appropriate time."

Foreign investors in Colombia often struggle with amounts that stretch to 12 zeros and are often confused about whether values are in billions or trillions.

Cardenas declined to give a concrete time frame for the step, but indicated it could happen during the current presidential term which ends in 2014. Once the measure goes to parliament, it should be approved quickly, he said.

"It's something we will do, we've been working on it. It will just make life easier for everyone," he added.

Developing countries that have slashed zeros off their currencies in the past include Mexico in 1993, Russia in 1998, Turkey in 2005 and Ghana in 2007. In the developed world, France redenominated the franc in 1960.

Cardenas said there was support for redenomination but some critics were worried about the cost of printing new banknotes. Others feared losing out because of the rounding up of prices in the newly-denominated currency.

 

http://goo.gl/MyWMA

 

 

[SgtFuryUSCZ]

***///

 

Ay, CARAMBA....!

 

(Psst....Go figure this tasty morsel came from Reuters --- mouthpiece for the Bilderburgers......) wink, wink....

[keepmwlknfny]

Oh but iraq is different when they say they will redenominate by dropping three zeros lol.....

[Dinar_o'saurs]

Foreign investors in Colombia often struggle with amounts that stretch to 12 zeros and are often confused about whether values are in billions or trillions.

 

( ͡-° ͜ʖ ͡-°)  Ahhh okay. Now they'll only be confused if the values will be in the millions or hundred millions.  ( ͡~ ͜ʖ ͡°)

[umbertino]

Zimbabwe is worse.

[fib1618]

Oh but iraq is different when they say they will redenominate by dropping three zeros lol.....

Breitling says they are.

[dontlop]

they dont have to delete all three zeros .. i hope they only delete 2 zeros ..and end up with 750 billion  in dinar ..  paying off the bremmers  at 10 grand per million ..

 

or more  by only deleting 2 zeros .. thats a stretch ..

 

Redenomination1 has a long history: in the 19th century, when governments faced shortages of gold or silver, they sometimes adjusted the value of their coins accordingly (recoinage; see Helleiner 2003). Among developing and transition nations, currency redenomination was employed on 60 occasions during the 1960-2003 period.2 These redenominations varied in size, from removing one zero from the currency (14 instances) to removing six zeros (9 instances); the median redenomination was three zeros, dividing the currency by 1000. Nineteen countries have used redenomination on one occasion, while ten countries have redenominated twice (sometimes, with many years in between, as in Bolivia, in 1963 and 1987; in other cases, redenominations follow rather quickly, as in Peru in 1985 and 1991). Argentina (4), the former Yugoslavia/Serbia (5), and Brazil (6) are the most frequent users of redenomination.

 

[fib1618]

they dont have to delete all three zeros .. i hope they only delete 2 zeros ..and end up with 750 billion in dinar .. paying off the bremmers at 10 grand per million ..

or more by only deleting 2 zeros .. thats a stretch ..

Redenomination1 has a long history: in the 19th century, when governments faced shortages of gold or silver, they sometimes adjusted the value of their coins accordingly (recoinage; see Helleiner 2003). Among developing and transition nations, currency redenomination was employed on 60 occasions during the 1960-2003 period.2 These redenominations varied in size, from removing one zero from the currency (14 instances) to removing six zeros (9 instances); the median redenomination was three zeros, dividing the currency by 1000. Nineteen countries have used redenomination on one occasion, while ten countries have redenominated twice (sometimes, with many years in between, as in Bolivia, in 1963 and 1987; in other cases, redenominations follow rather quickly, as in Peru in 1985 and 1991). Argentina (4), the former Yugoslavia/Serbia (5), and Brazil (6) are the most frequent users of redenomination.

They're slashing 3.

[JJ7]

they dont have to delete all three zeros .. i hope they only delete 2 zeros ..and end up with 750 billion in dinar .. paying off the bremmers at 10 grand per million ..

or more by only deleting 2 zeros .. thats a stretch ..

Redenomination1 has a long history: in the 19th century, when governments faced shortages of gold or silver, they sometimes adjusted the value of their coins accordingly (recoinage; see Helleiner 2003). Among developing and transition nations, currency redenomination was employed on 60 occasions during the 1960-2003 period.2 These redenominations varied in size, from removing one zero from the currency (14 instances) to removing six zeros (9 instances); the median redenomination was three zeros, dividing the currency by 1000. Nineteen countries have used redenomination on one occasion, while ten countries have redenominated twice (sometimes, with many years in between, as in Bolivia, in 1963 and 1987; in other cases, redenominations follow rather quickly, as in Peru in 1985 and 1991). Argentina (4), the former Yugoslavia/Serbia (5), and Brazil (6) are the most frequent users of redenomination.

Why does Iraq need 750 billion in currency? That would give Iraq over double Saudi Arabias currency value while their GDP is about 1/5th Saudi Arabias.

There's no reason Iraq could, would, or should have 750 million in M2. I suggest you do some research into currencies and economies.

[zigmeister]

huh interesting that shortages of gold and silver led into the redenominations.  Whatever, I don't know why people debate this as far as Iraq is concerned, so far the redenomination has been put on hold and may never show up.  Seems like a waste of time.  But I guess we could debate Columbia's intentions to lop or not for giggles and kicks.

[boomer113189]

huh interesting that shortages of gold and silver led into the redenominations.  Whatever, I don't know why people debate this as far as Iraq is concerned, so far the redenomination has been put on hold and may never show up.  Seems like a waste of time.  But I guess we could debate Columbia's intentions to lop or not for giggles and kicks.

so this article does not say they want to delete the 3 zeros ? http://goo.gl/QJOQP

 

The CBI had confirmed that the draft delete zeros from the currency will begin in the new fiscal year starting in 2014 instead of the current year

[Sweet baby dinar]

Columbia is not Iraq, apples and oranges

[boomer113189]

Columbia is not Iraq, apples and oranges

i agree Colombia is not. but when they talk about deleting 3 zeros on the currency it is.

[zigmeister]

Iraq is not talking about deleting 3 zero's, anyway not as of late.  

[waterman13]

Colombia is a rich nation too. They have a lot of resources, their mountains are filled with minerals and precious metals. Their agriculture, with a little more help could be staggering. The food there is delicious, best beef I have ever eaten was just outside Bogota. They are coming around politically, and getting a handle on the FARC somewhat. They have oil off the coast especially, and have an abundance of other natural resources, water, wood and minerals. They have another great export, COFFEE! Juan Valdez coffee is top notch. It's a wonderful country, I've had great fun every time I've been. And hey, it can't be that bad, Shakira is from there! Don't count out Colombia on dropping zero's off the currency because the IMF and the Central Bank of Colombia raise the rate of the Peso.

 

Go Colombia!

WM13

[fib1618]

Test

[Maggie123]

Test

 

LOL

[fib1618]

LOL

Testing 123

[zigmeister]

Colombia is a rich nation too. They have a lot of resources, their mountains are filled with minerals and precious metals. Their agriculture, with a little more help could be staggering. The food there is delicious, best beef I have ever eaten was just outside Bogota. They are coming around politically, and getting a handle on the FARC somewhat. They have oil off the coast especially, and have an abundance of other natural resources, water, wood and minerals. They have another great export, COFFEE! Juan Valdez coffee is top notch. It's a wonderful country, I've had great fun every time I've been. And hey, it can't be that bad, Shakira is from there! Don't count out Colombia on dropping zero's off the currency because the IMF and the Central Bank of Colombia raise the rate of the Peso.

 

Go Colombia!

WM13

Columbia and its people are wonderful in so many ways.  Yes Columbia has much to offer.  

[umbertino]

Colombia is a rich nation too. They have a lot of resources, their mountains are filled with minerals and precious metals. Their agriculture, with a little more help could be staggering. The food there is delicious, best beef I have ever eaten was just outside Bogota. They are coming around politically, and getting a handle on the FARC somewhat. They have oil off the coast especially, and have an abundance of other natural resources, water, wood and minerals. They have another great export, COFFEE! Juan Valdez coffee is top notch. It's a wonderful country, I've had great fun every time I've been. And hey, it can't be that bad, Shakira is from there! Don't count out Colombia on dropping zero's off the currency because the IMF and the Central Bank of Colombia raise the rate of the Peso.

 

Go Colombia!

WM13

I recall when  years ago Pablo Escobar ( The King of cocaine  internationally)  who was being chased and prosecuted  by  the Colombian Institutions ( Judges, Police, Special Forces...) once bluntly offered a deal to the State of Colombia.....A simple deal.... Basically he said...

" You eliminate all my judicial charges and everything else about me and my organization and just let me do my activity freely and I am going to pay for ALL of the foreign debt of Colombia".... Obviously the Institutions refused..... But I'm sure some were tempted to accept.....

 

That's how powerful and rich Escobar's Cartel ( Medellin) was....

Edited June 18, 2013 by umbertino

[keepmwlknfny]

Columbia is not Iraq, apples and oranges

Right, but they did both suffer low exchange rates, high inflation, and an inflated money supply.....

 

Your growing economy doesnt erase that, thats what redenominations/dropping zeros is for....its actually a sign of stability and improvement in your economy if you are at a point to where you can redenominate and get your currency close to par with the dollar.....

[Sweet baby dinar]

Right, but they did both suffer low exchange rates, high inflation, and an inflated money supply.....

Your growing economy doesnt erase that, thats what redenominations/dropping zeros is for....its actually a sign of stability and improvement in your economy if you are at a point to where you can redenominate and get your currency close to par with the dollar.....

Thanks keep, I respect and appreciate your teachings Edited June 22, 2013 by Sweet baby dinar

[keepmwlknfny]

Thanks keep, I respect and appreciate your teachings

No problem......I know a lot of what I say people dont want to hear, but I gotta put out there the "other side of the story" for people.....there really is a TON of misinformation that is put out there by the gurus.....makes it hard for people to learn and understand a lot of aspects of our speculation.......

 

only trying to help!

[billy goat]

No problem......I know a lot of what I say people dont want to hear, but I gotta put out there the "other side of the story" for people.....there really is a TON of misinformation that is put out there by the gurus.....makes it hard for people to learn and understand a lot of aspects of our speculation.......

 

only trying to help!

You should be teaching Keep.  You would make an excellent social studies instructor or perhaps an econ prof.  Seriously.

[WorkerBee]

Kudos to Keep, he has come a long way, especially in the department of tact and diplomacy.