Deletion of zeros from the Iraqi currency

[magawatt]

DEB45..........At the moment ........1 Iraqi Dinar = 0.00086  per US Dollar ,  or in other words........... it's worthless currency as far as us investors are concerned.

 

Delete the zero's and we have an instant value change from worthless currency   to .86 cents per 1 USD.    Ex:  .86 x  25,000 = 21,500  USD  

 

The other scenario would be to leave the Zero's and revalue the currency.........which leaves us with the million dollar question of  "what's the rate going to be"  ?

 

This is my understanding of the two scenarios ............whether they are right or wrong is yet to be determined.

 

  :salute:

If .86 IDQ= 1 USA

THEN 1 IDQ = 1.16 USA

25000 IDQ = 29000 USA

Happy Days

[NoviceInvestor]

Next year!!!! And I thought I could retire in time for Christmas ....

[SnowGlobe7]

What is the latest MO.......a number since Maliki left?

If .86 IDQ= 1 USA
THEN 1 IDQ = 1.16 USA
25000 IDQ = 29000 USA

Happy Days

 

Oh If you could only be right my friend....I love your math!!!

[rockfl9]

CBI can raise the value without GOIs permission but they can not issue new lower denoms without GOIs approval

Not true. The MOF has some control of the CBI. That is where the dollars for the auctions come from. So the CBI cannot make a move that would put the economy at risk.

[Deb45]

magawatt,      I sooooooo hope you're right.  I've heard others talk so emphatically as well in the other camp.

[magawatt]

It's about ratios.

If .86 IDQ=1 USD

then

1 IDQ= 1.16 USD

Now...about next.

We've often seen that in Arabinglish "next" sometimes means "this". As in next Sunday would mean this Sunday.

Is that the case in this circumstance? Perhaps the "coming days" will tell.

[Deb45]

Ok, so with all that said.  We can turn in our 25,000 dinar bills for 29,000 USD.  right?  This is all assuming that the zeros they are referring to are on the rate not the face of the dinar bill.  Correct?  Sorry to be so thick on this.   I'm just getting such mixed information.  One comment I saw was saying that our 25,000 dinar note was only going to be worth 25 dinar at the current rate, which doesn't make any sense to me.  Of course I don't claim to understand any of it and evidently there are so many different theories on what this means. I won't completely understand it until I see the numbers in my bank account.

[SocalDinar]

Not true. The MOF has some control of the CBI. That is where the dollars for the auctions come from. So the CBI cannot make a move that would put the economy at risk.

You know what I meant Rock.

They can increase the value,,,,,, Within reason without the MOF approval.   Im  not talking 1000000% But they do not need to go to the ministry of finance to raise the value incrementally.

 

The bank is in charge of:

• Maintaining price stability
• Implementing monetary policy (including exchange rate policies)
• Managing foreign reserves
• Issuing and managing the currency
• Regulating the banking sector for promoting a competitive and stable financial system

When they are talking trillions, they are talking broad money or M4 money. When we read articles about there being less than 4B in circulation, we are talking narrow money or M0-M1. We care about M0. That is how much money is in circulation.

I believe when mentioning 4 Billion they are  talking about 4 Billion Notes in Circulation.  Of course IMO and I'm just an electrical contractor  LOL

M-1 is over 70 trillion IQD. At least thats what the CBI  shows it as on their Website.  I for one have always hoped this was false otherwise we do not stand to make much off this endeaver

Edited October 20, 2014 by SocalDinar

[rockfl9]

I believe when mentioning 4 Billion they are  talking about 4 Billion Notes in Circulation.  Of course IMO and I'm just an electrical contractor  LOL

M-1 is over 70 trillion IQD. At least thats what the CBI  shows it as on their Website.  I for one have always hoped this was false otherwise we do not stand to make much off this endeaver

.

Best i can find is 40T in m1 (yes about 4B notes) and 88T in M2 ...Believe it or not. An RV of even !/10 cent is "difficult" without killing the economy.

[SocalDinar]

  

.

Best i can find is 40T in m1 (yes about 4B notes) and 88T in M2 ...Believe it or not. An RV of even !/10 cent is "difficult" without killing the economy.

That would be about 100 % increase in value but it has been held back for 5 years now so I think they could get there eventually if they dont delete the zeros first.

 

I was thinking the M1 was around 38 Trillion. Have not looked it up for quite some time and just looked it up.  Im reading 73 Trillion but could be wrong

 

 

   M1    5,774 10,149 11,399 15,460     21,721      28,190       37,300     51,743     62,474     63,736     64,052        65,025        66,135        69,612        70,053        71,223        70,801        69,547        71,406        71,779        71,798        73,831        74,504        72,413        72,923        73,783      72,042      72,782      73,320    

 

  M2    6,953 12,254 14,684 21,080     26,956      34,920       45,438     60,386     72,178     75,466     75,779        77,212        78,465        82,004        82,594        84,175        83,699        82,686        84,670        85,125        85,289        87,679        88,523        86,631        86,975        87,962      86,465      86,581      87,426

 

Of which: Deposits component of M2   2,323 5,091 5,571 10,112     12,724      16,427       23,662     36,044     43,891     44,872     44,959        46,198        46,354        48,570        48,416        50,038        49,962        49,039        50,555        50,521        50,788        52,684        53,319        52,146        52,533        52,471      50,883      50,171      50,168

 

http://www.cbi.iq/index.php?pid=Statistics

Then go to key finacial indicators

 

Either way its a heck of alot of Dinar out there

Edited October 20, 2014 by SocalDinar

[jeepguy]

i think  every one  knows what  I  am  about to say ! ------------------------------------  1 2015  --------  for  the next chapter    

[boosterbglee]

All this math makes my head hurt!!!!       Just do something!!

[slick]

The new denominations already demonstrate a deletion of zeros. The new 250 dinar note has two zeros removed but the value hasn't changed. The same could be said for the 100 note. So I don't see what all the worry is about. 

[Furbrain]

I remember playing "kick the can" as a kid. I never thought kicking the can would become Iraq's national pastime. Always next year.

[Hotcurl]

Think about it this way, based upon the exchange rate today;

 

I have 1 IQD and I want $1 US Dollar, the exchange rate today is .00086. or after deleting the 3 zeros from the exchange rate, 1 IQD would .86 cents.

 

I have $1 US Dollar and I want 1 IQD, the exchange rate today is  1,164. thus I would receive 1,164 IQD for $1.00 USD.

 

The debate is endless on which 000's they are talking about. Frankly, I think these types of articles are "smoke and mirrors".

 

We need to play attention to the exchange rate. Deleting the 3 zero's from the current exchange rate appears to be the best for us.

 

If I am wrong, I'll admit it ...................

[rockfl9]

The new denominations already demonstrate a deletion of zeros. The new 250 dinar note has two zeros removed but the value hasn't changed. The same could be said for the 100 note. So I don't see what all the worry is about. 

The remove 3 zeros Is dinar speak. THINK divide by 1000. A million dinar becomes 1000 dinar AND the value doesn't change.NO GAIN.

IF you cant sell a total loss!

Think about it this way, based upon the exchange rate today;

 

I have 1 IQD and I want $1 US Dollar, the exchange rate today is .00086. or after deleting the 3 zeros from the exchange rate, 1 IQD would .86 cents.

 

I have $1 US Dollar and I want 1 IQD, the exchange rate today is  1,164. thus I would receive 1,164 IQD for $1.00 USD.

 

The debate is endless on which 000's they are talking about. Frankly, I think these types of articles are "smoke and mirrors".

 

We need to play attention to the exchange rate. Deleting the 3 zero's from the current exchange rate appears to be the best for us.

 

If I am wrong, I'll admit it ...................

Deleting 3 zeros means from the face value , always has been in banking circles. Strangely ? you are right if you have 1164 dinar The ICB will give you a USD?

[Deb45]

I'm drooling now at this point.

[iamtheeggman]

Hey rockfl9 are you keepem in disguise? Sure sounds like him

[NoviceInvestor]

I remember playing "kick the can" as a kid. I never thought kicking the can would become Iraq's national pastime. Always next year.[/quote

How true .. The goal is on a roller that's always being moved forward.

[Hotcurl]

The bottom line is; It's all about the Exchange Rate !

 

It doesn't matter if you are going from the IQD into Euro's, US Dollar,  British Pound, Canadian Dollar, UAE Durham or Mexican Peso. It's still all about the Exchange Rate.

 

The LOPsters say the 3 zero will come off the printed currency thus a 25,000 IQD note becomes 25 IQD note and perhaps they are correct, no telling until the event happens. And the value of a 25 IQD note then ? well, we are back to the Exchange Rate !

[chinadawg]

THE ARTICLE said next year............I believe the islamic new year starts oct 24th............I'm still feeling good about OCTOBER.

[RVWITHME]

When they are talking trillions, they are talking broad money or M4 money. When we read articles about there being less than 4B in circulation, we are talking narrow money or M0-M1. We care about M0. That is how much money is in circulation.

 

Thanks Trin, now I'm going to be looking at nothing but M4 from here on out cuz I needz me sum Broad money...

 

[Boozer]

Delete the 0s next year , How many times have we heard this ? 

[easyrider]

THE ARTICLE said next year............I believe the islamic new year starts oct 24th............I'm still feeling good about OCTOBER.

correct they go off the gregorian calendar.  The islamic year starts in the next few days. No where does it say 2015.

Edited October 21, 2014 by easyrider

[jeepguy]

mmmmmmmmm   if you guys are correct on the  new year  in October ,  a beer for you folks ,  that will be  fine by me !  

so  do they take  another  vacation , for  the  new year ,  a great time  tooo  -------> feast