IRAQI dinar revalue News CBI Currency Change 2013

[ronscarpa]

Check this YouTube link:

 

 

The article & video were  Published on Oct 20, 2012 by Şahin Hobiler

 

It mentions HyperInflation .. which is definitely NOT the case in Iraq, but it's worth watching anyway for a perspective.

 

We're at that time when it all NEEDS to be done ASAP...!

 

Enjoy,

RON   

Edited July 9, 2013 by ronscarpa

[Gunshow2425]

Thanks Ron.  You always have a quality post.

 

Isn't the budget coming out in a couple months?  Probably hidden in that

[robboys33]

please no more budget talks nothing is ever in them worth reading 

[IQD1217]

Old !! but it's doesn't mean anything till they reduce the money supply and reduce the US dollar in the country !!

[yota691]

Thanks Ron...

[ronberta]

thanks ron for this post, very interesting indeed! only wish it had been said this week still very good and knowing that this process is pushing forward, thanks ron my best ron sorry could not resist how are you my friend!!

[jeepguy]

this really screams  l,o,p ing  shears      and from 2012  to now , I am really hoping that from the release from chapter 7  and the  release of the d.f.i. funds  back to Iraq , that they have changed their attitude toward the dang  bunny hopping  crap ,  with the announcement that the dinar could with stand 2.50 inside and outside Iraq,  and the newest article stating they need to call the date  to reset the dinar , that in fact they have seen the light and can have the dinar worth  exactly 1 to 1 with out the zero`s coming off the bills ,  { I am going to keep on seeing , what we can`t see , and believe they will do a 1 too 1 ratio  of exchange }  why would they kick the Iraqi citizen , in the teeth now that they have shown they are very rich in the country and banking ,  { only thing  corruption } .........      worry and waiting

[TotalNewb]

Yep... The said RV and RD in this interview. Not good.

[IQD1217]

Iraq

Between 1987 and 1995 the Iraqi Dinar went from an official value of 0.306 Dinars/USD (or $3.26 USD per dinar, though the black market rate is thought to have been substantially lower) to 3000 Dinars/USD due to government printing of 10s of trillions of dinars starting with a base of only 10s of billions. That equates to approximately 315% inflation per year averaged over that eight-year period.

[hoosier1470]

This theory still doesn't make sense for Iraq! Why throw away a hundred million dollars..or in this case...dinar? Money is still owed...and I can almost guarantee that kumait..and any other country that Iraq owes are not going to lop off 3 zeros from the amount owed them!! So..if the zeros are removed...it will be just as has been stated so many times...the two currencies will remain valid for a period..and both a 25 dinar note..as well as a 25k dinar note will hold the same value in dollars!! This is the only feasible scenario!! So...we don't have anything to be concerned with...either way...we are going to receive an amazing return on our original investment!! Iraq is much different than turkey..or any of the other countries that lopped off zeros. Those countries had to do it because of financial lack due to hyperinflation, etc....Iraq is doing it because they are so wealthy...and their current notes are so large...the citizen on the street can't make change at the current exchange rate...and they definitely wouldn't be able to after the rate is substantially increased!! Just my 2¢!! God Bless..and don't be concerned!! Everything is going to come out BETTER than what most think!!!

..

[sandstorm]

Easy with those headlines, your going to give someone a heart attack!! Lol.  Thanks

[hame55]

This is old video. (yes it is dated)

I think they did have hyperinflation. They say Saddam overprinted. Whether this was carried over when the Bremmer exchange happened is another story. Of course they don't have hyperinf. now = they are under 10%

But the big question is, what exactly is the structure of their money supply now and ii it still affected by past hyperinflation.

Iraq
Between 1987 and 1995 the Iraqi Dinar went from an official value of 0.306 Dinars/USD (or $3.26 USD per dinar, though the black market rate is thought to have been substantially lower) to 3000 Dinars/USD due to government printing of 10s of trillions of dinars starting with a base of only 10s of billions. That equates to approximately 315% inflation per year averaged over that eight-year period.

OK - now the next step. Because you seem to have a grasp of the currency's history, what exactly happened when the old Saddam dinar you are referencing here were EXCHANGED to Bremmer IQD (150 to one?)

 

Are you saying this past hyperinflation was continued by intention by the US government and adopted into the new currency?

That doesn't make sense. It would seem the exchange would wipe that out because that past hyperinflation would make the new currency weak. No one has addressed this topic fully, at least to my satisfaction

Edited July 10, 2013 by hame55

[Laid Back]

1:1.16

Go RV

[Newbster]

this really screams  l,o,p ing  shears      and from 2012  to now , I am really hoping that from the release from chapter 7  and the  release of the d.f.i. funds  back to Iraq , that they have changed their attitude toward the dang  bunny hopping  crap ,  with the announcement that the dinar could with stand 2.50 inside and outside Iraq,  and the newest article stating they need to call the date  to reset the dinar , that in fact they have seen the light and can have the dinar worth  exactly 1 to 1 with out the zero`s coming off the bills ,  { I am going to keep on seeing , what we can`t see , and believe they will do a 1 too 1 ratio  of exchange }  why would they kick the Iraqi citizen , in the teeth now that they have shown they are very rich in the country and banking ,  { only thing  corruption } .........      worry and waiting

 

As has been stated many times about that article referring to the imfamous $2.50 value, they are not saying they could support a rate of two dollars and fifty cents, the article stated they have approximately 2.5 times the value of USD's in reserve (80 billion) as iraqi dinar that equal that value (33 trillian/1166 = roughly 28 billion USD after conversion).

 

With that being said, even a jump to 412.5/1 would be incredible, which is what they claim they cover on USD reserves alone (the math comes down to a roughly 2.826 multiplier coverage. 1166 divided by the 2.826 = 412.5). The fact they can cover this with USD alone is a good sign, but please do not keep getting this confused with an RV value of two dollars and fifty cents, that is not what that article was referencing.

[IQD1217]

Iraq from September 2003 to January 2004. The currency exchange program ran from October 15 2003 to January 15 2004.

Currency exchange was necessary for five reasons;

(1) Two currencies were in circulation, the old Swiss Dinar in the north and the Saddam Dinar in the Rest of the country;

(2) Inadequate numbers of denominations existed, the Swiss

Dinar came in 3 denominations

and the Saddam came in only two denominations;

(3) The currency was poorly made and easily counterfeited;

(4) The Saddam Dinar had been devalued and the public had little trust in it;

(5) The presence of Saddam On the currency was inappropriate.

But, in the great majority of the country, they had the Saddam Dinar with Saddam's face on it.

There were basically only two denominations of that: there was a 10,000-dinar

Note, which was worth about $5, and there was a 250-dinar note, which was worth about 12.5 cents, 12 cents.

The reason its value had dropped so low was because of Saddam’s Inflationary monetary policy. In comparison, back in the '80s, before the Saddam Dinar came about, the rate of exchange was about $3 to one Dinar.

But because of Saddam

There was now a total upside-down situation where one dollar was worth about 2,300 Dinar. ”

[JMULS31]

That video is old

[sandfly]

THANKS

[tenmillion]

This theory still doesn't make sense for Iraq! Why throw away a hundred million dollars..or in this case...dinar? Money is still owed...and I can almost guarantee that kumait..and any other country that Iraq owes are not going to lop off 3 zeros from the amount owed them!! So..if the zeros are removed...it will be just as has been stated so many times...the two currencies will remain valid for a period..and both a 25 dinar note..as well as a 25k dinar note will hold the same value in dollars!! This is the only feasible scenario!! So...we don't have anything to be concerned with...either way...we are going to receive an amazing return on our original investment!! Iraq is much different than turkey..or any of the other countries that lopped off zeros. Those countries had to do it because of financial lack due to hyperinflation, etc....Iraq is doing it because they are so wealthy...and their current notes are so large...the citizen on the street can't make change at the current exchange rate...and they definitely wouldn't be able to after the rate is substantially increased!! Just my 2¢!! God Bless..and don't be concerned!! Everything is going to come out BETTER than what most think!!!

 

Kuwait is paid from the DFI account using dollars, not dinars. 

 

Many countries wait until inflation is stable before re-denominating...some wait years.

 

"In countries where hyperinflation has occurred, governments face an uphill struggle when it comes to regaining the confidence of international markets and domestic constituents. 

 

The most direct means is through a stabilization program, which generally involves using either exchange rate-based or monetary-oriented targeting; increasing the operational independence of the central bank; and removing distortionary economic policies.

 

In many cases, such stabilization occurs the aegis of an IMF standby agreement.

 

Redenomination can play into this process, in two ways: first, it can be used at the end of a stabilization, to signify to citizens and private markets that the days of high inflation are over. Used in this way, redenomination is largely symbolic: inflation has been tamed via other means, and the removal of zeros simply serves to remind citizens and investors of the success in fighting inflation ñ or to remove a very visible reminder of an inflationary past.

 

A new currency is largely the result of, not the cause of, stabilization (Bernholz 1995). When this mechanism holds, we should expect that redenomination will occur after a period of high inflation, but also after that inflation has been removed from the system; a dramatic downward change in inflation should increase the chances for redenomination.

 

Pressures from international capital markets, from the IMF, and from politically independent central banks can help motivate anti-inflationary measures (e.g. Simmons 1994, Stone 2002), as well as subsequent redenomination. "

 

http://www.unc.edu/~lmosley/APSA%202005.pdf   (page 6)

 

..

Edited July 10, 2013 by tenmillion