Possible clarification on "deletion" or "raising" zeroes?

[Hairball51]

I wanted to throw this out there for discussion about the "deletion" or "raising" of the zeroes. Not only has there has been a lot of chatter lately about when this may take place (recent CBI statements say they are suspending ideas to do it indefinitely) but also in regards to what they mean by "raising" or "deleting" the zeroes. I think I may have found something that will help explain what they mean.

 

I would like to submit an article from January 1, 2012, found here http://www.alsumaria.tv/news/50482/central-bank-of-iraq-raises-the-value-of-iraqi-din , in which the Deputy Governor of the Iraqi Central Bank Mozhar Mohammad Saleh is discussing the issue. The part of the article I would like to focus on is this: "Deputy Governor of Iraqi Central Bank Mazhar Mohammad Saleh revealed, on December 14, that Central Bank is willing to create 3 money categories following the deletion of 3 zeros from Iraqi Dinar. The currency exchange requires about two years, Saleh pointed out. Reserves of foreign currencies in Central Bank of Iraq increased, for the first time in Iraqi history, to 60 billion Dollars, Saleh announced on December 6 explaining that Central Bank can curb inflation if it reached two decimal ranks." The fact that he makes mention of "decimal ranks" (decimal points) is what I find so interesting. It leaves little doubt to me that the "raising" or "deletion" of zeroes is in reference to the exchange rate, currently 1 IQD = 0.000859900 USD, and NOT the deletion of zeroes from the bills themselves. This is the only place I've ever seen in all the reporting out of Iraq where "decimal" points is mentioned regarding the issue of zeroes. So, as so many have stated in other posts, if you "raise" or "delete" the zeroes from the exchange rate you get 1 IQD = 0.859900 USD. Perhaps this will be their jumping off point and allow it to freely float from there? 

 

Also, the line "Central Bank is willing to create 3 money categories following the deletion of 3 zeros from Iraqi Dinar". Is he talking about issuing the smaller denominations after the "deletion of 3 zeroes"? For example....1's, 10's, and 20's, or whatever....That would seem to make sense as well because as we know, they are not ready to release the LD's just yet which might be the reason the CBI recently said they're suspending the "raising of zeroes indefinitely". Adam has been saying all along that no RV could take place without the LD's being part of it. 

 

I just thought I would throw this out there and if this has already been discussed somewhere else, I apologize. 

 

 

 

 

 

 

[Amos9:13]

No one knows 100% what they are speaking about, but if they are referencing Turkey (that's the bad castration of 0's) we don't want that.  Luckily from what I can tell Turki isn't going that route

[sandfly]

THATS GOOD INFO

[Choppermike]

No one knows 100% what they are speaking about, but if they are referencing Turkey (that's the bad castration of 0's) we don't want that.  Luckily from what I can tell Turki isn't going that route

Didn't Turkey do the LOP to curb absolutely staggering inflation? Staggering inflation is not the problem facing the Iraqis.

[Hairball51]

No one knows 100% what they are speaking about, but if they are referencing Turkey (that's the bad castration of 0's) we don't want that.  Luckily from what I can tell Turki isn't going that route

I think knowing 100% is not reality at this point but I threw it out as the best evidence yet in regards to what the process may involve. It came from a CBI Deputy Governor so I figured if someone would know, it might be him? At any rate, the deletion of zeroes I mention in the post is a good thing especially if they let it freely float from there....IMHO.

[Amos9:13]

I believe so Chopper.  Iraq doesn't have to go this route. I would take this articles as a grain of salt...until the CBI states it...I wouldn't worry about it.  From the "actions" of Turki, I think he's backing the current dinar to do a float to gradually rise, then they might do an RD (LOP) to dramatically increase it from a buck to 3.00.  The gradual rise would show the stability better than a LOP.