Iraqi Finance: Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary

[sterns5048]

There will be no LOP! How many times has this been beat into the ground. Removing 3 zeros from the value of the cuuency does not mean LOP. .00086. Remove trhee zeros and you get . 86. That is how it is done. Naysayers learn to research this topic is all over DV posts.

There is no way to prove this either way until it happens because none of us know how it will happen. I think it's rediculous that everyone that doesn't think they will become an overnight millionaire gets all negatives, and everyone who says the opposite gets +s. Are we in 3rd grade again? Everyone has a right to what they want to say, and everyone just gets mad because everyone thinks they 'know'. Well guess what, the dinar 'has to rv' now every week, month, since this started. Sure the world economy sucks, but do you really think everyone is just planning Iraq to save the world financially? Of course you do, because that's what people on here have told you. Of course the dinar will or won't lop... Because that's what someone told you. I hope just as much as the next person this does rv with no lop, but you also have to be a realist and be open to what may or may not happen. . . If you really want to know- just ask TK lololololololololol ijust had no better way to end this post Good luck everyone, and let's keep the -hate down now!

Edited November 18, 2010 by sterns5048

[tripthelight]

Here's an interesting article from the Jakarta News about the redenomination of the rupia and how it would work. There would be no devaluing of the rupia and the redenomination would take place over time, with the introduction of the new currency happening during the time the old currency would be taken out of circulation. An interesting read in light of Iraq saying they would redenominate.

http://www.thejakartapost.com/news/2010/08/04/rupiah-redenomination-will-not-change-its-value-bi.html

[tripthelight]

And here is an example where redenomination is explained in regards to the Nigerian Naira:

"On August 4, 2007, the Governor of the Central Bank Nigeria (CBN) sent a shock wave across the country and the Nigerian Diaspora when he announced that the CBN plans to redenominate the naira in August 2008. According to Governor, “we intend to restructure the entire currency by dropping two zeroes or moving two decimal points to the left from the currency, and issuing more coin denominations. This would entail a total currency exchange and phasing-out of all the existing denominations from August 1, 2008.[/i][/i] Effectively, at the current exchange rate, this policy would mean that the Naira/US dollar exchange rate would be around N1.25 to US$1 then. All Naira assets, prices and contracts will be re-denominated by dropping two zeroes or two decimal points to the left with effect from this date”. He enumerated the objectives of the redenomination exercise to include the following:

* To restore the value of the Naira (in the short-term) close to what it was in 1985 before the commencement of the Structural Adjustment Programme (SAP) in 1986.

* To better anchor inflationary expectations

* To strengthen public confidence in the Naira

* To make for easier conversion to other currencies

* To reverse tendency for currency substitution

* To eliminate higher denomination notes with lower value.

* To reduce the cost of production, distribution and processing of currency.

* To promote the usage of coins and thus a more efficient pricing and payments system.

* To lay the foundation for the convertibility of the Naira as well as make it the ‘Reference currency’ in Africa.:

Here is the webpage with this article:

http://www.gamji.com/article6000/NEWS7367.htm

My question is this: I've read in many articles that redenomination can consist of either dropping zeros or moving by decimals points. The dropping of zeroes does not lower the value of the money, and the moving of zeroes by decimal points, increases the value of exchange. It's very confusing to me in light of the fact that Iraq has said over and over again that they will redenominate, with no one mentioning how this will affect the exchange rate. I'm still reading and learning.

And from the same article:

"In the ongoing debate about the redenomination of the Nigerian currency, some commentators have been using the terms redenomination and revaluation interchangeably, i.e. to mean the same thing. Technically, this is wrong. Currency redenomination is different from both currency revaluation and currency appreciation. In strict terms, redenomination does not increase the “value” (or strength) of a currency in relation to other currencies per se.

"What happens when a currency is redenominated is that some zeros are dropped in the official exchange rate at “conversion” date, e.g. one US dollar = 1.25 new Naira (NN) = 125 “old naira” (N) on August 1, 2008 (i.e. NN1.0 = N100.00).

"On the other hand, currency revaluation is an increase in the value of a currency vis-à-vis other currencies under a fixed exchange rate system, i.e. when the government or monetary authorities arbitrarily fix the exchange rate.

"For instance, the naira is revalued when the exchange rate is changed from IUS$ =N130 to 1US$ = N125, i.e. increase in the value or strength of the naira because you now need fewer naira to buy a dollar.

"Devaluation is the opposite of revaluation, i.e. a decrease in the value of a currency via-a-vis other currencies under a fixed exchange rate system, e.g. change from 1US$=N125 to 1US$ to N130, meaning a decrease or fall in the strength or value of the naira because you will need more naira to buy a dollar. The terms currency appreciation and depreciation are used to describe a decrease and increase, respectively, in the value or strength of a currency vis-à-vis other currencies under a floating exchange rate system, i.e. when market forces generate changes in the value of the currency.

"However, it is possible for currency redenomination to occur (pari passu) with revaluation or appreciation, for instance, if on the day of redenomination in August 2008, the new exchange rate is fixed 1US$=NN1.25 when the exchange rate just before the redenomination was 1US$=N128 (with NN1.0 = N100). Similarly, redenomination can occur with devaluation or depreciation if the exchange rate is fixed at 1US$=NN1.25 when the exchange rate just before the redenomination was 1US$=N123."

[WhiteKnight]

Isn't our purchased dinar a contract of sorts that has to be upheld? What about the Iraqi people that still have 000 dinar? Their own govt will tell them too bad, your money's not worth as much as you thought anymore? JM Humble O

Well it depends..........if it cost $1170 dinar for a 2 litter of coke cola now and they remove the 3 zeros.. the coke cola cost $1.17 which would be more inline with other countries currency. Price on everything drops and the Iraqi people do not lose anything.

100 would = .10

500 would = .50

1000 would = $1.00

5,000 would be $5.00

10,000 would be $10.00

25,000 would be $25.00

and this is about the price we have been buying their currency for plus shipping.(so we lose money, we all knew this was a risk).

I was told I was all wrong when I 1st joined this site and asked about this 5 weeks ago.

If they do this and the Dinar Dealers don't buy the money back we are all screwed, I surely would not fly to Iraq.

The worst thing is they are talking about doing it to the currency in country, would really stink is if they said any bills outside are worthless...lol I know they would not do that but it was a passing thought in one of my nightmares.

The other nightmare is that the government falls apart and all 3 factions start fighting and none of them use the money.

I know I have weird dreams...........well some of them I am sitting on my porch on my brand new home on a lake so some of my dreams are good.

View Postdlb, on 18 November 2010 - 01:47 PM, said:

Actually, there are two different kinds of "LOPS". A currency lop would lop the last 3 zeros off the currency - thus 25,000 note worth 25. An exchange rate lop would mean lopping first three zeros off exchange value (or .00085 to .85).

In this case, the article is speaking of a 'currency' lop.

I like this much better...........3 zeros of exchange value...my light bulb just went on ...thanks.

[BOBSFUN]

WHEW, That's a lot for this simple mind. Well the day is over, did they accomplish anything in the Government meetings? Any REAL varifyable news?

Thanks all, and have a good night.

[vianney71]

Are we in some kind of time loop? This article about LOP's comes out once every week or two. How can we keep getting equally upset every time?

There needs to be as much misdirection and misinformation put out there to hold down speculation. Does anyone think that Iraq would be allowed to just do a LOP? The IMF, investor countries & the UN would not permit it. National independence has been eroded in favor of a more global economic system.

We need not to let ourselves be pushed into this frenzy agian & again. There will be an RV, I hope this year. the amount is anyone's guess. There are leaders that do know the amont, but they have no reason to leak this intel. But whatever the amount, .86 to several USD, will be a blessing and wonderful no matter the exact amount.

The only thing we need to be concerned about will be the US administration's war on the upper class. This would be some sort of punitative tax. This would allow the government to recieve the full RV amount but then tax it away from us.

[Raleighwood]

Sorry professor but you are not as educated on this as you may think. Appreciate the laugh though.

Your right.....countries redenominate their exchange rate all the time...... You must have picked that up from Frank or TK.......

[greebs]

vianney71-Did you bother to read the article at the beginning of the thread?. It states that the IMF approved of Iraq eliminating the zeros from their currency in August. How many times can you say this is misdirection or a smokescreen?. It looks like the only ones' blowing smoke are these supposed gurus on this site.

[Guest guest]

Your answer is right here.... please read it. Iraq has already said how they will handle this. My link I understand how this could freak someone out.... but like others have said this has been posted many times and has been discussed countless times

[Bocadinar]

thier denial is all smoke and mirrors

[dlb]

A LOP is a made up term that we are throwing around here on these sites like its a legit word.....it means redenomination.....you cant redenominate the exchange rate.....so there is not way you can "LOP" the exchange rate.....there is only 1 kind of LOP my friend....and its the one that we dont want!!!

hmmm, it seems Adam thought it would be nice! http://dinarvets.com...-adams-opinion/

[dlb]

No such thing as an exchange rate LOP.....The term LOP isent even a real word....it refers to a redenomination....

Why is it in Adams book?

[Guest guest]

If an article came out everyday and said there's a re-denominaiton/LOP, NO ONE WOULD BELIEVE IT. But if an article slightly mentions any economic news ITS AN EMMINENT RV!

If there wasnt going to be a RV, Shibibi would still be working with IMF, UN, and/or WTO on issues concerning Iraq. He wouldnt be hiding in a corner.

STATEMENT 1: If you could turn 27 trillion to 27 billion in circulation with a simple "raising the zeroes" lop, WHY would they so easily want to pay 3000% more to me. Or $3.00/IQD

STATEMENT 2: So Iraq is going to let the U.S. ,broker, their oil and turn profits as we give them a mere $42/ barrel. I think they will keep their oil and "broker" it themselves.

[boomer113189]

Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary

yes it will

[shellfish]

Wish they would do it already so we can find out what this sand dune is worth. I always thought this speculation was unique and couldn't be solidified by some historical event as "fibs" challenges prove weekly. The M2 is getting me less confident that this is special. At 90 trillion geez,folks thinking of $1 RV that's 9,000,000,000,000,000 U.S. and I still want my 3x-5x I am dreaming. I'm dreaming all you good DV folks folks max out.I really do cause I want and some need. Iraq do something other than have us pay to rebuild through taxes and investment that you could zero out just cause you hate the good guys.