Zero Lop or Zero Lopping the Dinar Analysis

[Brandon2230]

Sorry this is an old article, but makes a great comparison to the Iraqi situation.

Zero Lop or Zero Lopping the Dinar Analysis Dinar into Dollars - [7/13/2006]

Both Russia and Afghanistan are countries who have zero lopped their currency.

Lets look at their situations in relation to the Iraqi Dinar and the speculation and

rumors about Iraq doing a zero lop on their currency:

Afghanistan had 4 types of currency in circulation as a result of a civil war. It was

unknown how much of each was in circulation. For the people and the

government, this was a very difficult situation. As a result, the currency kept

losing it's value. They needed something both credible and efficient to use as

currency. You did not want people carrying around bags of money since

everything is cash based. Their zero lop happened at the same time as they

printed new currency to replace the confusing mix they had before. This ensured

everyone had the same currency, there was a known amount in circulation, and

people could buy and sell things with few notes. It has little in common to the

Iraqi Dinar and the speculation about the zero lop. Iraq has already

printed and established a single national currency, with secure features

and knows exactly how much is in circulation. The Dinar denominations are

already designed to carry high or low values without carrying around sacks of

money. It makes no sense for them to change the face of the currency, when

they are talking about increasing the value to fit their economic goals.

Russia performed zero lopping to their currency in 1998. They did this in

response to hyperinflation and to restore confidence in their currencies structure

and value. Iraq has roughly only 20% inflation. Russia also had denominations

that went too high - they had denominations of 5k, 10k, 50k, 100k, and 500k -

which were replaced with denominations of 5, 10, 50, 100 , and 500. In

comparison, Iraq's highest denomination is the 25k and has denominations all the

way down to 25 Dinar. If Iraq did zero lopping off the structure of the bills,

they would overlap denominations that already exist. This does not make

sense or fit the stated goals with the Iraqi Dinar. It seems that a zero lop, or

zero lopping would not occur with the denominations of the Dinar, but by

increasing it's value with a revalue that would benefit their economy and their

poor in a positive way.

http://www.iraqdirectory.com/DisplayNews.aspx?id=1677

[KeithZ]

Very well Stated...I agree 100%+

[Triple xXx]

Let's hope so!!!!