Low Iraq Dinar Denomination is Official

[kaka]

An Iraqi official announced the adoption of a new strategy intended to raise the value of the Iraqi dinar against foreign currencies.

2010/9/10

The chancellor said the Central Bank of the appearance of Dr. Mohammed Saleh in a statement: "I've been working for years to improve the value of the Iraqi dinar exchange, and was taking several measures until we came to the stability of its value at 1170 dinars to the dollar."

He explained that he had talked with some fluctuations up and down according to the impact of the overall situation in Iraq in the absence of stability.

Reform Progress

He disclosed that the new strategy has begun the reform of management system of the national currency and payment system of Iraq, said that this will be the basis in the application of Istratejp to reform the currency. The Iraqi official was likely that these steps will take a year or more.

On the zeros added in the Iraqi currency, which made the value of the disbursement of land, Saleh said that the zeros added that high inflation rates since the Iran-Iraq war and the subsequent siege and invasion, and thus doubled the cash block several times.

In 1990, the cash block of 28 billion dinars, and became a six trillion dinars in 2003, and now stands at 25 trillion dinars. He said that this has become necessary to change the payment system because of the Iraqi economy on the verge of developing and producing oil major which leads to a large expenditure.

According to the adviser at the CBI, the new strategy will transform the current monetary mass (25 trillion dinars) to $ 15 billion through the adoption of coins and the smaller Iraqi currency.

And the ability to withstand the Iraqi dinar against foreign currencies, Saleh said that "the Iraqi economy is strong and has great resources to qualify to stand in front of foreign exchange if there are economic and monetary policy is correct, and political and economic stability and security." He expressed optimism that the Iraqi economy will recover, which is reflected in the rise of the dinar against foreign currencies.

Relative stability

For his part, said a banking expert, Mohammed al-Samarrai said the Iraqi dinar is witnessing a relatively stable for the time being, and security conditions influenced the rise and a slight decrease is not as great as in the past.

He assured the island revealed that the dinar is witnessing now balanced and influenced by a simple economic decisions and the political right in the exchange rate, no prejudice was balanced.

He hoped that the high value if foreign investors have entered the Iraqi market, or if there is openness towards the private sector. He called Samurai to the reconstruction of the many industrial projects that have been stalled as a result of the blockade and invasion which led to the destruction of industrial facilities equipment.

He pointed to the neglect of a giant 36 factories in the past seven years. And the actions necessary to raise the value of the dinar against foreign currencies, "said Samarrai, including the stability of security and political situation, and make decisions and laws that encourage the private sector and supported by, and encourage the entry of foreign and domestic investment, and encourage the return of talent to rebuild it.

Surplus oil

The Iraqi banking expert Mohamed Kamel Hussein said that there was a perception among the Iraqi Central Bank to raise three zeroes from the value of the dinar, by issuing a new currency to improve its value.

However, he believed that the lifting of the three zeros will not change anything because the factors affecting the exchange of the dinar against foreign currency depends on the surplus that is supplied by oil revenues.

And provides lift the productive capacity of large oil revenues diminish the value of inflation, and thus raise the value of the dinar by providing a surplus of foreign currency.

The exchange value of the Iraqi dinar was the strongest region in the late seventies of the last century, but began to decline during the Iran-Iraq war before it could hit the siege.

Have fallen to their lowest levels during the U.S. invasion in 2003, amounting to U.S. dollar exchange rate four thousand Iraqi dinars.

link -------http://www.alaalem.com/index.php?aa=news&id22=6468

Edited October 10, 2010 by kaka

[OKLAHOMA]

THE REFORM PROCESS MAY TAKE A YEAR OR MORE. RIGHT?

[Hooter]

Why are all these different threads the same story ?

[Maria]

i hope it will ture.that is great news for us.

[quadraph0nic]

However, he believed that the lifting of the three zeros will not change anything because the factors affecting the exchange of the dinar against foreign currency depends on the surplus that is supplied by oil revenues.

And provides lift the productive capacity of large oil revenues diminish the value of inflation, and thus raise the value of the dinar by providing a surplus of foreign currency.

So they have smaller denoms and that means the lifting of the zeros are the large bills being pulled?

I'm taking this as good news. Something is brewing and just for the roller coaster ride to be over is good enough for me. We'll see how it pans out and I hope we get an RV w/no LOP out of this! For us that's about the best we can hope for other an RI.

Edited October 10, 2010 by quadraph0nic

[quadraph0nic]

According to the adviser at the CBI, the new strategy will transform the current monetary mass (25 trillion dinars) to $ 15 billion through the adoption of coins and the smaller Iraqi currency.

hmmm...this would make the exchange rate 1666.66 dinars to the dollar....

i dont think they can be completely forth right if they are going to do a revalue.

Edited October 10, 2010 by quadraph0nic

[detracy]

Oh boy I hope this is good news. Not to be a downer, but can someone smarter than me explain the part about this taking a year? Here's the quote from the article:

Reform Progress

He disclosed that the new strategy has begun the reform of management system of the national currency and payment system of Iraq, said that this will be the basis in the application of Istratejp to reform the currency. The Iraqi official was likely that these steps will take a year or more.

[FishMan1969]

This article makes no sense....

The ratio of 15/25000 = .0006 $/IQD

So if this article is the end of the story, that means each million of IQD we hold will be worth 600.00 USD. This is a loss for each investor.....

If the story ends there, the dream ends there.

I don't believe this is the end of the story. This article does not give us the ENTIRE picture of what they intend to do. It is missing pieces and I imagine that it is for a reason. Keeping everyone in the dark until the rest of the story can be released.... IMO

So we continue to wait to see the real story unfold before our eyes, perhaps as soon as this coming week or sooner....

Sit, GOI, Sit..... Good GOI....

[fatbob]

Fishman,

If what you are saying is right, why have we heard that they want to strengthen the Dinar and raise it's value? It doesn't make sense but I have never been known for my mathematical abilities.

[FishMan1969]

Fishman,

If what you are saying is right, why have we heard that they want to strengthen the Dinar and raise it's value? It doesn't make sense but I have never been known for my mathematical abilities.

That is my point exactly.... They are saying that they are weakening their purchasing power by stating the ratio in this article..

They have not given us the other part of the pie of how they will ultimately reach their goal of strengthening the currency.... Thus.... The RV

This just leaves us all hanging like hungry dingleberries waiting for the "Rest of the Story".....

[LittleMissGrits]

I think I saw this article quite some time ago. Yes?

[TRAINEDPATRIOT]

The article has a comment at the bottom of the page dated from back in April of this year.

[sportfisher]

what "Low Iraq Dinar Denomination" ???

[saturday night]

The article has a comment at the bottom of the page dated from back in April of this year.

That's right April 13 2010 is the article date

[vianney71]

I think Fishman is right, the lower denom's are the first HALF of the story.. so the Iraqi people can buy things with smaller denoms that are useable to make change. THEN, the RV will raise the value of the Dinar to what is comparable to other currencies in the Gulf region. So the large bills will be recalled and will be RV at whatever the IMF decides is a fair start off rate, a little low & let it rise or a little higher, & let it moderate.

BUT Iraq is spending AND budgeting assuming their currency has a realistic international VALUE.. In the USD 2 to USD 3 range.. JUST repeating what I have read. DON"T rely on this estimate, just the rationale of the RV & thier need to RV their currency.

So, this is the first part.. AND it will not & CAN NOT be strung out for years.

[sportfisher]

what "Low Iraq Dinar Denomination" ???

show me the lower denominations

[Guest Ratatap]

Guys not long ago (last two weeks), I believe Phoenix did an article on how the RV and Lop would happen and it is not how everyone here is interpreting this. I will try to find the article and maybe if Phoenix reads this, he can help repost it here.

GO RV !!!!!!!

[BtrFuture4All]

There are smaller denomination Iraqi bank notes and coins at silvergreetings.com. They say they are from 2003 and uncirculated. Why do none of the other brokers have these? Or at least I have not seen them.

[JugDawg1]

Guys not long ago (last two weeks), I believe Phoenix did an article on how the RV and Lop would happen and it is not how everyone here is interpreting this. I will try to find the article and maybe if Phoenix reads this, he can help repost it here.

GO RV !!!!!!!

That would be great. Put that post with this and see how it pans out. Lookin forward to it. Thanks bud.

[hspotman]

Guys not long ago (last two weeks), I believe Phoenix did an article on how the RV and Lop would happen and it is not how everyone here is interpreting this. I will try to find the article and maybe if Phoenix reads this, he can help repost it here.

GO RV !!!!!!!

I have always referred to that post for people to go read, Ratatap, it was very informative and uplifing. Phoenix stated how the Rv and Redenomination would most likely happen simultaneously. and give everyone a period of about 3 months to cash in before deeming our dinar(larger25k notes) worthless. Is that the post you are referring to?

I have always referred to that post for people to go read, Ratatap, it was very informative and uplifing. Phoenix stated how the Rv and Redenomination would most likely happen simultaneously. and give everyone a period of about 3 months to cash in before deeming our dinar(larger25k notes) worthless. Is that the post you are referring to?

here it is, copy/pasted

Phoenix Update: October 3rd 2010

Well here were are....finally after months of waiting we get a solid announcement on the formation of the next Iraqi Government.

As per my last update I have suspected that the delays we have seen for the last 5 months were actually engineered to intentionally push back the announcement of the formation of the Government of Iraq by unseen forces working on the behalf of the United States government in conjunction with the IMF and World Bank.

Now this is only my personal speculation but this speculation is based upon close observation of the on going situation within Iraq and within the legislative process here in the US and the rest of the world.

I will add that during this time of seemingly endless delay in Iraq that became almost comical (some would say painful) to watch there were major changes within the banking sector as far as regulations and reporting and those changes and updates were made not only here in the United States but also in the EU and the Arab world. It is worthy to note that some of these major changes came as late as last week.

I had mentioned in my last update that my speculation on the delay within the Iraqi political process would see its end on the 1st of October which as I had pointed out was the first day of the new fiscal year 2011. (The United States fiscal year)

Ok...so the question many ask is....Why?

What would be the reason for this delay?

Well we have seen from direct statements in the news that 2 major events are to occur as soon as the Government of Iraq is seated.

1. We have seen direct statements from the Central Bank of Iraq that the plan to remove the higher denominations and the issue of the lower denominations will happen as soon as the new government of Iraq is seated.

and....

2. We have seen the direct statements in the news from the nation of Kuwait that all issues between Kuwait and Iraq are resolved and will be finalized as soon as the new government of Iraq is seated and therefore fulfilling the last major issue for Iraq in regard to United Nations Chapter 7 Sanctions.

So it would appear that the seating of the next Government of Iraq will be the trigger to the launch of events that bring to conclusion the revaluation of the Iraqi Dinar and therefore the apparent manipulation used over the past 5 months to delay this major economic event was done in order to finalize important banking and tax regulations here in the United States and the rest of the world.

And now...all preparation and changes are done and we are now in the 1st quarter of fiscal year 2011 (US)

Ok...so where are we right now and what's next?

We should see within this coming week a call to convene Parliament to get things rolling and to seat the government of Iraq.

We may even see it happen this very week...maybe.

Now Maliki has stated that well within the 30 days they will be finished filling all seats and from what I have read it will be much quicker...because over the last 5 months much work was done on the decisions on who would fill what seats has been made and they are ready to fill most positions very quickly and there is a very good chance we will see the formations happen within days and not weeks.

Also tomorrow, Monday the 4th. Iraq is to announce to the world the true extent of it's oil reserves...this is HUGE news and will lay out clearly for all the world to see the massive amount of wealth held by Iraq in it's natural reserves and will also help the world to understand the soon to happen revaluation of the Iraqi Dinar and also how this revaluation is not only possible but also how it will be supported.

So when will the Iraqi Dinar be revalued?

I speculate that it will happen soon after the top 3 positions are made official...those being the Speaker of Parliament, the President and the Prime Minister.

After that is OFFICAL...I say from that point the game is on.

Now...the next question is...so.....just what is the "game"?

We have all read the articles and announcements about the removal of the zeros and the new currency and as we all know that has brought forward endless debate and stress to dinar investors world wide and the reasons for the debate are understandable when looking at other historical situations with other nations.

BUT! Here is the situation...Iraq is not like any other historical model...and therefore the use of other nations currency changes are near useless when trying to project the future actions of the Central Bank of Iraq and its plans with the Iraqi Dinar.

The truth is they HAVE made it clear....sort of.....but the problem is everyone attempts to find the historical comparison and in doing so WRONGLY apply those historical situations onto Iraq and the Iraqi Dinar when in fact the true situation of Iraq and the massive wealth and resources held within the nation of Iraq have no comparison anywhere in the world and in fact the nation of Iraq and the wealth thereof are nothing short of an economic anomaly and being so require a "novel solution"

Therefore...as i have mentioned in the past what we are about to see in this "novel situation" is a "novel solution".

This novel solution that we are about to witness is a combination of a LOP and a revaluation happening at the same time.

This novel solution will be to announce the New Currency in Iraq...this New Currency will be the lower denominations.

At the same time the New Currency is launched the older higher denominations will be called in and retired...this will be done with a time limit to allow people ample time to exchange the old higher denominations with the new lower denominations.

How long will the Central Bank of Iraq set for this?

Answer: The Central Bank of Iraq has stated that the plan to remove the zeros (larger denominations) will be completed before the end of the year (2010)

Now....here is the "novel" part of the solution...at the same time the New Currency is announced and released the value of the Iraqi Dinar will be raised (revaluation).

So that is the "novel solution" to the "novel situation".

Now everyone may now better understand why everyone has been so confused on what is about to happen...the reason for the confusion has been the lack of historical precedent available to accurately plot the outcome.

I would like to add that this confusion was also by design and has been allowed to help stem speculation and as we can all see by the relative low numbers of IQD investors in this nation and the outright diversion many have to the subject of investment in the Iraqi Dinar this attempt has been for the most part very successful.

So...here we are....on the threshold of this "novel event".

Watch the news for official seating of the government of Iraq for that I feel....will be the trigger.

So that's I all have to say about that....

Support your local bank and the United States banking system.

Pay all due taxes as and when advised by the tax advisor of your choice.

Best of luck to all.

Phoenix

Read more:

I would love to see another Phoenix update to this update....

Edited October 10, 2010 by hspotman

[Jac]

Shabbi is the big chief over thel Central Bank network in Iraq. He is after all the one with his finger on the trigger of the RV. Therefore, again I remind you that Shabbi said at the Central Bank Meet up at Jackson Hole. He said that Iraq could sustain an RV Rate of anywhere from $6.00 to $9.00 and even $12.00 could be sustained. He was quite serious and was niether lying nor exagerrating. No guru or any one here knows what the rate will be but do be certain that Shabbii will Revalue the Dinar and soon.

God Bless.

[fatbob]

So what Phoenix was saying was that:

$25,000 IQD becomes $25 US (LOP) then if you add the revaluation of $2.00 then your $25,000 IQD becomes $50 US? Therefore $1,000,000 IQD becomes $2,000 US (re-denomination)? I was talking about this with a friend and he was telling me this is what Phoenix was talking about.

Edited October 10, 2010 by fatbob

[hspotman]

So what Phoenix was saying was that:

$25,000 IQD becomes $25 US (LOP) then if you add the revaluation of $2.00 then your $25,000 IQD becomes $50 US? Therefore $1,000,000 IQD becomes $2,000 US (re-denomination)? I was talking about this with a friend and he was telling me this is what Phoenix was talking about.

Geeeezzzzuss....I don't even know anymore.... I'm just gonna take whatever I have and exchange it at time or RV for whatever it's worth, gain or loss. Tired of this already, too many interpretations. I don't even know how to interpret that.....I thought that when it got redenominated, it would get revalued at the same time, giving us a time frame to exchange our dinar in for whatever the RV was at the time. The way you put it means we all get a loss.....or break even. All-be-it a loss in the end with transaction fees and such. I'm so confused already!

[BtrFuture4All]

So what Phoenix was saying was that:

$25,000 IQD becomes $25 US (LOP) then if you add the revaluation of $2.00 then your $25,000 IQD becomes $50 US? Therefore $1,000,000 IQD becomes $2,000 US (re-denomination)? I was talking about this with a friend and he was telling me this is what Phoenix was talking about.

Huh ???

[hspotman]

Huh ???

XFL.....= Exf'n actly ?

VERY CONFUSED.....need support.

Edited October 10, 2010 by hspotman