Talking about a LOP on a site dated 17May10

[NotMyFirstBBQ]

I like to be in Camp Positive and hate going over the bridge to negativity town, but I found this and it is a bit of a bummer....

Iraqi banking expert, Abdul Aziz Hasoon, said in phone call with the Independent that the process of removing three zeros from the Iraqi dinar will be positive for the Iraqi economy.

He added that there were many countries that took the same step, including Turkey which removed six zeros from it is currency.

Hasoon clarified that if the exchange rate was amended in the proper manner, then the whole process will be beneficial. The Iraqi central bank would set up the mechanisms to replace the current banknotes with new banknotes, and allow a period for everyone to replace their banknotes.

Members of the economic committee in the previous parliament had urged Iraqi Central Bank and Iraqi Ministry of Finance to address what they called financial flabbiness of the Iraqi money by removing three zeros from the currency.

(Source: Iraq Directory )

Hasoon said that removing three zeros from the Iraqi currency will not affect the Iraqi market significantly because one new dinar will be equal to one thousand dinar of the current currency.

Iraqi Central Bank did not specify when it is going to implement the process of removing the zeros, while some media sources said that the Iraqi Central Bank cannot proceed with this step currently because of the cost

Here's the link:

http://www.iraq-businessnews.com/2010/05/17/removing-three-zeros-from-iraqi-dinar-will-help-the-economy/

Furthermore:

Various websites are quoting the Governor of Iraq’s Central Bank, Mohammed Salih, as saying the he wants to delete three zeros from the Iraqi currency after the formation of the new Iraqi government.

In a reported interview with “Alsumaria News”, he said the amount of Iraqi dinars in circulation has increased from 25 billion in 1980 to 27 trillion now, and this has “led to confusion in transactions for large commercial banks”.

Saleh added that “the Bank is fully prepared to delete the zeros from the Iraqi currency once the new Iraqi government is formed … the deletion of zeros is a national issue and may need special legislation”.

Saleh pointed out that “the Bank was able to reduce the level of inflation to 3%, which reflects the success of Iraqi policy”.

The reports also quote a ‘Jamil Antoine’ as saying, “Iraq is not ready for the time being to delete the zeros from the Iraqi currency … the deletion of zeros needed to stabilize the security and political, as well as economic stability … the Central Bank by seeking the deletion of zeros from the Iraqi dinar is intending to give moral force, not physical strength of the dinar … the deletion of zeros needed to create and cultural awareness for the Iraqi people and the Iraqi market.”

IBN has so far been unable to verify these reports.

[zapped777]

I wouldn't get to upset about this. The article is 10 months old.

[dinarded]

I think this article is legit. Just because it's 10 months old is irrelevant. It appears to be a COMPLETE legitimization of the article that is posted on XE's website.

[bamjack75]

Ok, now how are all the gurus going to spin this? This has always been the plan. My hope is that there is an RV, after the lop.

[gallinipper]

i have believed for a long time that there may be a lop and rv together (or in quick succession) in which case we may make two or three times our investment. that's not too shabibi if you ask me.

[len]

if this was stated in may 2010 why haven't they done it yet? just sayin

[Wassaap]

I think this article is legit. Just because it's 10 months old is irrelevant. It appears to be a COMPLETE legitimization of the article that is posted on XE's website.

Just keep watching that topic, you'll figure it out.

First, Lopping zeros is only appropriate for countries with wild inflation. Iraq has been flattered many times lately for holding their inflation down so well. There is evidence that the phrase "deleting the zeros" is a faulty translation, and the phrase that is interpreted that way is simply the standard Iraqi term for revaluing the currency. If you watch and read the way that they use that phrase, you may come to agree.

Furthermore, as you continue to read news articles as they are posted, you will likely come to the opinion that Mohammed Saleh is full of camel dung. He is always making pronouncements that are often refuted the same day. He seems to serve in some official capacity, so maybe "dis-information" is what they pay him for.

There is a whole cast of characters that you can read about, but the fact is that no one knows for sure what will happen. We are all sitting around in here BS-ing, lots of people think they have it figured out already, and others are just listening to what's blowing in the wind. No body thinks very highly of those who are determined to try and burst our bubbles. If this is what you do for entertainment, then the Dinar is the least of your problems. Peace.

[NotMyFirstBBQ]

Also found this article,

Re-basing the Iraqi Dinar

Posted on 26 March 2010. Tags: Banking & Finance, Finance, Industry & Trade, Iraq, Iraqi, Ministry of Finance

The Central Bank of Iraq is planning to rebase the Iraqi dinar but hasn’t decided yet on the timing of the move, the bank said in a statement last week. Affirms its commitment to its strategic projects, particularly knocking three zeroes from the Iraqi dinar,” the statement said.

“Despite the technical and logistical preparations for the project we have yet to decide on suitable timing to implement the project,” it said. Choosing a suitable time wouldn’t be linked to economic aspects only, but rather to the security situation as well, it added.

“Most commercial Insurance Policies for Iraqi risks have monetary amounts in US dollars” comments Rob Edwards, Chief Operating Officer of AAIB Insurance Brokers. “And this goes for sums insured, indemnity limits, deductibles and premiums, so there will be little effect for the majority of policies.”

If the rebase decision is taken it means a current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars.

Mr. Edwards continued, “Some policies written outside Iraq and the Kurdish Region of Iraq are for more modest sums insured, in particular auto exposures and these typically use Iraqi Dinar (ID) limits. Underwriters and their reinsurers should keep a watching brief on this if they have policies with ID sums insured.”

Currency rebasing is usually monetarily neutral and is introduced to make commercial calculations easier and cheaper. Turkey, for example, knocked six zeroes off its lira currency in 2005. Russia did the same for its currency.

[source: Zawya. Full article here http://www.zawya.com/Story.cfm/sidZW20100315000097/iq/?pass=1]

Here's the link:

http://www.iraq-businessnews.com/2010/03/26/re-basing-the-iraqi-dinar/

[deenar]

I think this article is legit. Just because it's 10 months old is irrelevant. It appears to be a COMPLETE legitimization of the article that is posted on XE's website.

Hey dinarded! Haven't seen you in quite a while. What are your thoughts? Lop?

[taboo]

Lop is a real possibility and ever Adam finally admitted it 2 weeks ago. Personally i think it will lop and the sooner the better!

[DinarSeeker]

Anything is possible i guess. Although I'm an anti lopper, it is quite possible they would lop and float. Let the market decide. I think it would cost them a bundle to do that. I dont put much into any articles stating anything with rates, floats, lopping, etc. and heres why. Iraqi press is controled by the GOI or M, they send out filtered doodoo to keep you guessing until the Rv. They are not going to tell you how they are going to do it, end of story. If they did, then why not tell the date and rate too. The more important side of this is controlling inflation after the Rv. So they will give us the best Rv they can afford and not have a run on inflation. I will leave you with this thought. Iraq is using the american dollar to fund there way of life and have done so for the last two decades. Common sense will tell you it will be at least be a buck and not have a run on inflation. Since the dollar is in cirrculation in iraq, it was probably the first test before the forex tests started up electronically. It was the first real measurement of funding and manageing a new currency, and I believe the dollars introduction over there was intended to do just that over a long period. It was like playing with monopoly money for testing and management purposes for this one event.

[keepmwlknfny]

Just keep watching that topic, you'll figure it out.

First, Lopping zeros is only appropriate for countries with wild inflation. Iraq has been flattered many times lately for holding their inflation down so well. There is evidence that the phrase "deleting the zeros" is a faulty translation, and the phrase that is interpreted that way is simply the standard Iraqi term for revaluing the currency. If you watch and read the way that they use that phrase, you may come to agree.

Furthermore, as you continue to read news articles as they are posted, you will likely come to the opinion that Mohammed Saleh is full of camel dung. He is always making pronouncements that are often refuted the same day. He seems to serve in some official capacity, so maybe "dis-information" is what they pay him for.

There is a whole cast of characters that you can read about, but the fact is that no one knows for sure what will happen. We are all sitting around in here BS-ing, lots of people think they have it figured out already, and others are just listening to what's blowing in the wind. No body thinks very highly of those who are determined to try and burst our bubbles. If this is what you do for entertainment, then the Dinar is the least of your problems. Peace.

Lopping is done AFTER periods of hyperinflation when things stabilize....I haven't seen any evidence of removing the zeros being a faulty translation but you can't be sure 100% what they mean simply because they use words that don't match up exactly to the english language so its possible they mean just removing the bills from circulation and that's of course what we want but from the articles written about it, its not likely...they clearly describe a redenomination....hope they are as full of it as their land is full of oil...

[elmstreet61]

Ok, now how are all the gurus going to spin this? This has always been the plan. My hope is that there is an RV, after the lop.

Hi folks!

I'm definitely no Guru...in fact...i am fairly new to this.....but I just cannot see what all the worry is about...I have often seen the word LOP mentioned, like it's straight from the devil himself...and I always come to the same conclusion....people do not read things properly.

So ok, let's say they whack 3 zeros off the dinar notes...so what??! one Dinar of the Lopped version is STILL the same value as a 1,000 note...so....no problemo, Hombres!

maybe I am getting it all wrong, but I don't think so.

they tell us that the current Dinar notes (the ones with all the zeros) will be perfectly acceptable, but will be naturally phased out as they go into circulation, etc....

I see that Ali from DT keeps encouraging us to keep our dinar notes nice and neat, and flat and perfect...because these notes of ours will, through the process of the cash-in...be returned to the CBI and destroyed in due course, as more of the lop notes are printed.

it's all good...i agree...dinars with less zeros WOULD BE a lot handier for the people on the street, in terms of day-to-day trading, buying selling of goods and services.....living life, basically.

do I have this right or wrong, my friends? I'm just a relative newbie...but i don't know why some folk keep on demonizing the LOP word....it's all good....isn't it??

Please feel free to educate me.

[dinarded]

Hey dinarded! Haven't seen you in quite a while. What are your thoughts? Lop?

Hey!

I'm still right where I was when I wrote this piece....

Just keep watching that topic, you'll figure it out.

First, Lopping zeros is only appropriate for countries with wild inflation. Iraq has been flattered many times lately for holding their inflation down so well. There is evidence that the phrase "deleting the zeros" is a faulty translation, and the phrase that is interpreted that way is simply the standard Iraqi term for revaluing the currency. If you watch and read the way that they use that phrase, you may come to agree.

Furthermore, as you continue to read news articles as they are posted, you will likely come to the opinion that Mohammed Saleh is full of camel dung. He is always making pronouncements that are often refuted the same day. He seems to serve in some official capacity, so maybe "dis-information" is what they pay him for.

There is a whole cast of characters that you can read about, but the fact is that no one knows for sure what will happen. We are all sitting around in here BS-ing, lots of people think they have it figured out already, and others are just listening to what's blowing in the wind. No body thinks very highly of those who are determined to try and burst our bubbles. If this is what you do for entertainment, then the Dinar is the least of your problems. Peace.

I wrote this in August 2010