The central bank is ready to delete the zeros from the dinar after the formation of the government directly

[Az Joe]

This screams LOP.It clearly says the 0's off the currency not the exchange rate.5 years of waiting for it to turn out to really be a scam.So much for retirement................

[bayoubobby]

This screams LOP.It clearly says the 0's off the currency not the exchange rate.5 years of waiting for it to turn out to really be a scam.So much for retirement................

relax

you could always take up welding

[Zaney]

This screams LOP.It clearly says the 0's off the currency not the exchange rate.5 years of waiting for it to turn out to really be a scam.So much for retirement................

Don't stress it, this was just sent to me via e-mail.

1) Iraq, Dinar

The Iraqi Dinar is the currency of Iraq. The currency code for Dinars is IQD, and the currency symbol is د.ع . Below, you'll find Iraqi Dinar rates, a currency converter, Iraqi Dinar News and more. You can also subscribe to our currency newsletters with daily rates and analysis, or take IQD rates on the go with our XE Mobile apps for your iPhone, BlackBerry, or even your regular phone.

The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." For more information about the redenomination, read "Iraq Planning Currency Redenomination."

2) And this is the info the link built into the text had taken me to (RadiofreeEurope). Look at the date, hope it helps.

February 06, 2010

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

[ThankAVet]

In one of the other threads on this issue, it sure sounds like the ride is over and we're looking at $860 a million.

Edited November 19, 2010 by ThankAVet

[R00ster]

just what does deleting 3 zeros mean to us?

Just remember, you started all this.....again.....!!!

[BtrFuture4All]

Much as I tried to make sense of it, I couldn't. The translation is what really gets to me. While seasoned members may know how to read between the lines, it left me in a fog! LOL

Same here, Marilyn53. I think I just need a good night's sleep and maybe someone will have added additional info and examples that will make me feel more confident again Friday.

The GOOD thing from the post, even though I could not understand it completely, is that this signals that things ARE happening.

At a link that someone else pointed us to,

this Notice at the top of the rate exchange calculator also signals things are in the works, but then I need to go back and look at the difference in the definition of Redenominate and Revalue. Yet it also uses the word 'may' instead of 'will'

Notice: IQD may be redenominated by the end of 2010.

This 'notice' does not come up until you have put criteria into the currency evaluator and hit the 'go' button.

So possibly all this could be predicated on the fact that there will indeed be an RV soon in an attempt to get off the street as many of the large denominations as possible and then could they possibly change the way the float is managed by YE, going in to 2011? I don't know... just guessing now. So stike that last comment -- wait for better interpretation by the gurus.

[RicknSaudi]

just what does deleting 3 zeros mean to us?

A Senior Member asking a question like this....Shame, shame, shame! :lol:

[BtrFuture4All]

In one of the other threads on this issue, it sure sounds like the ride is over and we're looking at $860 a million.

Well, that isn't the way I'm finally looking at it. If they take the .000 out the exchange rate calculators and substitute it with .86 then I believe you are looking at $860,000 for one million dinar. That may not be what you had hoped for, but it ain't too shabby considering you paid somewhere around a thousand for it.

I hope I'm finally looking at this correctly so that I can sleep better tonight. That's better than the .10 and .12 (cents) some had been saying. Now I still won't turn down $3.22 or $3.56 which my original guestimate in one of the polls a month or so ago.

Someone please confirm I 'got it' or show me where I'm wrong. Thanks!

[6year wait]

I'll answer one of the questions above. A deletion of zero's is not to be confused with a LOP. A LOP removes zero's off of the physical currency, lessening their value many fold, this is exactly what we don't want to happen. South Korea tried to pull this on their people last year and it caused tremendous civil unrest and hyper-inflation. A deletion of zero's would be a very positive result for us, it is simply removing the zero's from the current valuation of the Dinar. It would work like this, current value equals .000856, delete the zero's behind the decimals and you have a new rate of .856, or in other words, 86 cents. This would be a most welcome outcome.

[Triple xXx]

I'll answer one of the questions above. A deletion of zero's is not to be confused with a LOP. A LOP removes zero's off of the physical currency, lessening their value many fold, this is exactly what we don't want to happen. South Korea tried to pull this on their people last year and it caused tremendous civil unrest and hyper-inflation. A deletion of zero's would be a very positive result for us, it is simply removing the zero's from the current valuation of the Dinar. It would work like this, current value equals .000856, delete the zero's behind the decimals and you have a new rate of .856, or in other words, 86 cents. This would be a most welcome outcome.

If they are not talking about an LOP, wouldn't this news cause a frenzy in the investment world? I mean, basically they just announced the RV, no?

[paramedic_usa]

People remember if they remove 3 zeros from .00086 it doesnt mean .86 cents removing the zeros can be 3.22 dollars presto zeros removed!!! stay positive til the end!!!!

[waterman13]

relax

you could always take up welding

Exactly, bayoubobby. welding has been my life for over thirty years!

RELAX PEOPLE!

The LOP, or the deletion of the 3 zeros only mean a revaluation! Or in laymen's terms it means pulling in all the large denomination bills. How do you do that? You revalue the Dinar at a rate that will draw all the large bills in. What can that be? I believe something around the $3 mark it was in the Saddam regime before the Iran / Iraq war. That would bring in all (or most of) the 3 zero bills. And, if you put a time limit on that draw in, it would bring ALL of them in! Look at all the contracts being written for everything from housing to oilfields to refineries, to pipelines, to gas contracts. Look people, Iraq is the riches country in the world in natural resources (as the world knows it now). It is going to happen, I believe soon! GO Iraq, GO GOI, GO RV @ $3.33.

WM13

[Soup]

This screams LOP.It clearly says the 0's off the currency not the exchange rate.5 years of waiting for it to turn out to really be a scam.So much for retirement................

Yes, it does mean the zeros off of the number written on the Dinar bills. When the Iraqis say this, they are not thinking about the US Dollar exchange rate, so this does not mean the value goes from USD $.00086 to USD $0.86, it could do that, but it isn't what they meant. This is a foreign county, not everything they say is to be seen through the eyes of the US Dollar.

BUT if this means a 25K Dinar bill should be exchanged for 25K in smaller bills.... no big deal. That does not mean the issue is over with... the RV would be a separate issue.

If they "lop" the zeros off of the bills, that is not the end of this investment, the RV would still be a different matter.

If they want to pay back the debt to other countries (that are holding Dinars), and have the Dinar traded on the world market, they have to increase its value.

[Triple xXx]

Yes, it does mean the zeros off of the number written on the Dinar bills. When the Iraqis say this, they are not thinking about the US Dollar exchange rate, so this does not mean the value goes from USD $.00086 to USD $0.86, it could do that, but it isn't what they meant. This is a foreign county, not everything they say is to be seen through the eyes of the US Dollar.

BUT if this means a 25K Dinar bill should be exchanged for 25K in smaller bills.... no big deal. That does not mean the issue is over with... the RV would be a separate issue.

If they "lop" the zeros off of the bills, that is not the end of this investment, the RV would still be a different matter.

If they want to pay back the debt to other countries (that are holding Dinars), and have the Dinar traded on the world market, they have to increase its value.

What is the benefit of removing the 3 zeros (LOP)? How does this help Iraq and WHY would they do this?

I personally see an LOP as a sign that the RV would be a slow incremental process over a period of time, not just one huge jump at once.

Why would they LOP (remove the zeros) and then RV at $3.00? I do not understand the logic there?

Edited November 19, 2010 by Triple xXx

[Bobbydee]

Thanks ChiefV for the info. I'll settle for .86 or 1 to 1. It's all good no matter how you look at it. God Bless Semper Fi

[Soup]

What is the benefit of removing the 3 zeros (LOP)? How does this help Iraq and WHY would they do this?

Another DV poster put is best when he said:

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

I personally see an LOP as a sign that the RV would be a slow incremental process over a period of time, not just one huge jump at once.

Maybe so.... it seems those that really study the issue have good reasons to say it will be done in a single act of legislation, and I think that will be the case, but my Magic 8 ball gives me mixed answers.

Why would they LOP (remove the zeros) and then RV at $3.00? I do not understand the logic there?

I did not read anything in there about $3.00, that is pure speculation. I have no idea what it will RV at. I do know it is better to have smaller denominations at good value than large denominations at a near worthless value. I think that it makes sense to drop the zeros from the denominations and RV at the same time, but they are being tight lipped about the RV part. But the re-denomination of the bills and the RV of its value can very much be two separate issues.

I'm scrambling for answers too.

[bobby_cahill]

I'm not up to date on all this LOP talk, but is this the 1st ime we've seen an article like this that included talk of the Kurdish language on the dinar?

Could it be that thats been one of the hold ups? Maybe the lower denoms are being held back until they could include the Kurds

Maybe thats what they've been doing for months.

Of course the NIQD was 1st released back in 2003 right? So why wait till now to have that be an issue?

RiverStyx brings up some very valid points. The debate is interesting

Any help on my questions would be appreciated

Semper Fi

I had this on another post and thought i'd ask here as well.

[Chief V]

Two sides to this coin due to the google translation and it's fogginess in interpretation, either the .00086 goes to .86 which is good news, or as they "inject" the new smaller denominations without the 3 zeros' on them and continue to withdraw the larger denominations, the value will remain the same 1:1 meaning the 25k note will be worth 25k in smaller denominations. This is also good news. Either way it goes, I'm happy with it. I'll take .86 any day and a 1:1 as well. That's my take on it, as these articles are two sided coins to me, most of us have seen this multiple times, and if you look at the Inflation rate listed on this one it's a redundant article as 3% has been gone for quite a while, I believe they're at 1.6% or 1.7% right now. Definitely no cause for the dreaded "L" word.....lol

Wait and see, whatever the rate comes out as is what we're looking at on the initial cash in.

V

Folks no where in here did I say the dreaded "L" word, both of these scenarios are positive. The nominal value of the IQD will be the same as long as the larger denominations are allowed to stay in circulation, which could only be 90 days in order for them to take them out of circulation. It's hard to decipher the articles but no where in there does it say that your 25k note will become a 25 note. 25k means 25,000 for those of you who missed that.

Prices in stores will be reflective to the new rate of exchange. For example: I was traveling through Baghdad airport and was hungry and the Iraqi woman in front of me was only purchasing a bag of potato chips, she handed the teller a IQD5000 dinar note, and he handed her IQD4000 dinar back. With the newer denominations the bag of chips should only cost about 1 dinar once it's equaled to the dollar. That bag cost her about 90 cents at the current rate.

Remember this, all the denominations are new, large and small, and they will be of equal value as long as they allow the larger denominations to remain in circulation, once they say this is the date that the larger denominations will no longer be allowed in circulation, if you have not put them in a bank or exchanged them yes.....you now have wallpaper, and very pretty wallpaper I might add. Take your LOP theories to the LOP section, this is in no way a LOP.

V

[Mudster]

Another DV poster put is best when he said:

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

Maybe so.... it seems those that really study the issue have good reasons to say it will be done in a single act of legislation, and I think that will be the case, but my Magic 8 ball gives me mixed answers.

I did not read anything in there about $3.00, that is pure speculation. I have no idea what it will RV at. I do know it is better to have smaller denominations at good value than large denominations at a near worthless value. I think that it makes sense to drop the zeros from the denominations and RV at the same time, but they are being tight lipped about the RV part. But the re-denomination of the bills and the RV of its value can very much be two separate issues.

I'm scrambling for answers too.

So by your math, instead of costing about a dollar, the item would cost 1/10 of a penny....by knocking off the zeros, the price per dinar would have to go up 1000x also. If

the dinar didn't go up in value, every Iraqi would suddenly lose 99.9% of their wealth.

[kamm]

Thanks Chief for the post. Steve

[hspotman]

Ok, first I want to apologize for having "my" part in the LOP discussion last night. I didn't have a very good end to a "nothing" day, and then when I come home to my computer to see what is being discussed at the hopeful end of our journey here, I see what was interpreted by alot as something unwanted my all. Of course NOW I know I should not have felt that way, and I would have known before also....except, because I had such a "blah" day, I got myself a bottle of wine and drank it when I got home. So needless to say, I was pretty buzzed when taking part in the discussion(s) last night. But now as I sit here this morning drinking my "COFFEE" ,and reading over these posts again, another thing comes to mind. When they bring these newer smaller bills into circulation, and then phase out(bring in and destroy)the larger notes, I begin to envision(project) something in my mind.... Since these newer smaller notes will be the currency of choice to come, and most or some banks in the US don't even have the older(current) notes in their books(at least,when I went into my BofA they didn't)....when they finally DO enter pictures of the accepted notes in their book, WHAT IF they tell us they can't accept the ones that we have? I know this is all projection here, and it comes on the heels of all the crap LOP talk last night, so I may be searching for the negativity ,but in the end I could envision EVERYONE with the current IQD notes having to go to DT or through the dealer you bought them from. Sorry to throw some more wacko s#!^ out there, but lately my mind has been bouncing off walls and ceilings and floors

[GO RV!!]

Ok, first I want to apologize for having "my" part in the LOP discussion last night. I didn't have a very good end to a "nothing" day, and then when I come home to my computer to see what is being discussed at the hopeful end of our journey here, I see what was interpreted by alot as something unwanted my all. Of course NOW I know I should not have felt that way, and I would have known before also....except, because I had such a "blah" day, I got myself a bottle of wine and drank it when I got home. So needless to say, I was pretty buzzed when taking part in the discussion(s) last night. But now as I sit here this morning drinking my "COFFEE" ,and reading over these posts again, another thing comes to mind. When they bring these newer smaller bills into circulation, and then phase out(bring in and destroy)the larger notes, I begin to envision(project) something in my mind.... Since these newer smaller notes will be the currency of choice to come, and most or some banks in the US don't even have the older(current) notes in their books(at least,when I went into my BofA they didn't)....when they finally DO enter pictures of the accepted notes in their book, WHAT IF they tell us they can't accept the ones that we have? I know this is all projection here, and it comes on the heels of all the crap LOP talk last night, so I may be searching for the negativity ,but in the end I could envision EVERYONE with the current IQD notes having to go to DT or through the dealer you bought them from. Sorry to throw some more wacko s#!^ out there, but lately my mind has been bouncing off walls and ceilings and floors

So now you aren't even talking a LOP, you are talking they totally disregard the currency we have purchased UNLESS we go through specific "dealers"....

It just doesn't make sense at all. Some of the "smaller" banks will have a process of taking your dinar in and sending it to their regional bank for authentication... But really, any bank that is behind the curve here will lose a TON of business and also market share... Could you imagine a BOA and a Wells Fargo near each other.... One is accepting dinar exchange - the other isn't.... THat would be a HUGE competitive edge for the bank that was accepting Dinar.

Sometimes you just have to stop worrying about the small stuff. Let this all play out, you could probably come up with a 1,000 conspiracy theories a day - but really, there will only be ONE scenario played out... I believe they can't just "scrap" part of their currency without giving people a chance to exchange it for a lower denomination or into a different currency.

Again, if you get nervous think of the bigger components here... like OIL...

They aren't just handing cash away - rather they will be paying back each countries reserve with "future" contracts on things like Oil.... So it's a win - win for each country if you think about it... Iraq basically gets a huge loan up front, payable in OIL once they ramp up production in the future...

- Fresh

[hspotman]

Lol, I wasn't even really talking or agreeing LOP last night...I don't think(too buzzed then). I just know that when I get that way(buzzed/drunk), everything that enters my mind is a bit magnified. So people(newbs) ranting about LOP last night has a big effect on a mind in an altered state . As far as what I posted above, that is just my mind doing it's usual analytical projecting BS . And that is why I posted it, so people can shoot it down and make my mind feel better and at ease. So thankyou!

Edited November 19, 2010 by hspotman

[paramedic_usa]

Lets all look at it this way for a minute, we all agree several countries are holding dinar, right. Do you think they are holding trillions in 1,5,10,and 20's? No they are holding large bills like the rest of us. Now if they deceide to knock off 3 zeros so lets say 4 trillion being held by our government becomes 4 billion right. Not going to happen, China, Russia,US, are not going to get duped like that, this was planned years ago and will be exacuted as planned. Our government is looking forward to us getting paid, you can count on that, just like they are looking forward to 300,000 new millionaires to spend their money to help stimulate our economy. Not to offend anyone, but stop letting your fears get the best of you. We all know the bottom lines is "what happens in the the end, is what happens" Peace......

[hspotman]

...and I'd also like to add, to my above, another reason all this s#!^ comes into play in my mind- When I was seeing/hoping for the rate at a $3+ rv, and envisioning how much I could do with that for families and friends and to make a positive impact to those around me, all those hopes and dreams feel shot down when talk like last night comes into play. It still comes into play a little bit with today's seemingly topic, the actual rate. It is being discussed today that the rate seems to be .86, which MANY will gladly accept, as well we all should! But with that rate, alot of those hopes and dreams get taken down a bit. Not greed, just wishing I had the means to buy more so I could do all that I wanted to do for everyone.

Lets all look at it this way for a minute, we all agree several countries are holding dinar, right. Do you think they are holding trillions in 1,5,10,and 20's? No they are holding large bills like the rest of us. Now if they deceide to knock off 3 zeros so lets say 4 trillion being held by our government becomes 4 billion right. Not going to happen, China, Russia,US, are not going to get duped like that, this was planned years ago and will be exacuted as planned. Our government is looking forward to us getting paid, you can count on that, just like they are looking forward to 300,000 new millionaires to spend their money to help stimulate our economy. Not to offend anyone, but stop letting your fears get the best of you. We all know the bottom lines is "what happens in the the end, is what happens" Peace......

And ThandYOU, paramedic, for restoring more faith here . I, as well as many others, would still love to see some sort of proof(link) of the statement that our country and other countries have this amount, or any IQD in reserve(storage).