raise zeros from the Iraqi currency ...

[suntiger]

Anyone notice that twice it was stated that " volume of currency in circulation in the Iraqi market estimated at up to 30 trillion dinars."

[Merlin]

Yeah it’s like everything else released out of Iraq! You don't know if the translation was right or if it was a revue from years ago or something or some one high enough to get into the media and they say things that they know absolutely nothing about!

I have hard about everything imaginable in the last 6+ years I have been invested in rebuilding Iraq so that I don't hardly read or believe any of it.

This Loping the 0's deal was a big thing 3 or 4 years ago and everyone was up in arms about it then! The Iraqi people didn't like it and nether did any of the big investors not to mention any of us little guys!

After all the screaming the leaders at the time made several statements both in the news papers and TV that it had been thought of and they had gone over all the pros and cones and they had come to the conclusion that they where NOT going lop or raise the 0's from the Iraqi Dinar and that was the end of it! Except for the last year or so it seems that someone reads an old article and starts talking about loping again and gets the whole thing going again! Right now No One Knows! Until they actually do something its all speculation and you can't worry about it! If you want to worry about something how about the US Treasury is broke! As of Midnight last night there is going to be no more money in the US Government! Now do we believe that or do you wait to see if our government comes up with a fix in the 11th hour to fix it for awhile again? Or do we make a run on the banks now!?

All I can say and this is just my opinion from what I have read and seen over the years on this investment! If they do Lop the 0's off of there Dinar, you have to realize that this would mean ALL there money! $20.00 Dinar would then be $2.00 Dinar $5.00 Dinar would be 0.50 cents and $1.00 Dinar would be 0.10 cents! And so on! Or do you say that 10k note is worth $10.00 Dinar? A 1k note is worth $1.00 Dinar? And a 100.00 Dinar Note is worth? Someone will end up loosing in the Lop Deal. I mean you could tell everyone that only 10K notes and above will be loped But how would you explain to the people that a 10K note is only worth $10.00 Dinar but a 1K Note is still worth $1000.00 Dinar? I think it will be a major headache for everyone, Government, Vendors and shoppers, but that hasn’t stopped them yet from doing some very confusing, headache causing things already!

Then you have the countries and corporations that have been Paid in Iraqi Dinar like GE in the US and countries like Kuwait that have been paid in Dinar, Now how would they take it if all of a sudden the Dinar they are holding as payment for after the RV/RI then Iraq says "Well, Sorry. But the 20 billion we just paid you is now only worth 20 Million or something to that effect? These countries and business are all investors in Iraq as well as we are. I know we would be Very Disappointed in Iraq for the broken promises but we can't do much about it! But Countries and supper corporations Can! So on that alone I don't see them doing the lop of the 3 0's thing. But that's just me.

The other thing that was brought up a long time ago when they where talking about doing this, is that it would be an IN Country Lop Only! And everyone else out side of Iraq would still get face value when they exchange there Dinar to US funds or where ever they live etc. Now that would make it possible for them to do the Lop of the 0's because everyone that invested or was paid by Iraq would still get there money or profits on return for investing so, everyone would be happy and the Iraqi People are using 25K bank notes as if they where $25.00 Dollars now, Well I think its actually like $22.43 Dinar per 25K note but at any rate they could have the people come into the banks and exchange there 25K notes for around $20.00 Dinar and maybe 2 or 3 $1.00 Dinar So they don’t loose anything and after the RV there buying power will go way up so it will be like they are still getting a big pay increase! This is the plain I think they will take if they do in fact lop 0's of the big Dinar notes, its the only plain where everyone is still be happy and the only way they can get away with it, With out causing a Civil war or something worse!

Again this is just my opinion and from what I have read and seen in years past and If you look at old documents or news paper articles from back then you will see what I mean. I will look for the links as I used to have them but I don't think I still do? And as that there old it will not prove or disprove anything anyway. I'll I can say is it is what it is! And it will be what it will be! when ever they pull the trigger and what ever they end up doing will be it and it will be over for better or worse, I’m hanging positive and the big $3.50 to $4.25 US Dollar to $1.00 Dinar!!!!

Take Care, Have Fun! God Bless...

GO GO GO... RV!!!! Merlin..

[suntiger]

Anyone notice that twice it was stated that " volume of currency in circulation in the Iraqi market estimated at up to 30 trillion dinars."

So if I am trying to figure this out, Iraq has roughly 50 billion usd in foreign reserves correct. 30,000,000,000,000.00 IQD = 25,673,940,949.94 USD

Drop 3 zeros that is 30,000,000,000.00 IQD = 25,673,940,949.94 USD 30,000,000,000.00 / 25,673,940,949.94 = 1.1684999999 = Redenomination rate.

Is that about right?

If they raised the reserves up to 70 billion usd that could hold a RV of 2.336999! How does that sound? To me it sucks but oh well life goes on!!

Yeah it’s like everything else released out of Iraq! You don't know if the translation was right or if it was a revue from years ago or something or some one high enough to get into the media and they say things that they know absolutely nothing about!

I have hard about everything imaginable in the last 6+ years I have been invested in rebuilding Iraq so that I don't hardly read or believe any of it.

This Loping the 0's deal was a big thing 3 or 4 years ago and everyone was up in arms about it then! The Iraqi people didn't like it and nether did any of the big investors not to mention any of us little guys!

After all the screaming the leaders at the time made several statements both in the news papers and TV that it had been thought of and they had gone over all the pros and cones and they had come to the conclusion that they where NOT going lop or raise the 0's from the Iraqi Dinar and that was the end of it! Except for the last year or so it seems that someone reads an old article and starts talking about loping again and gets the whole thing going again! Right now No One Knows! Until they actually do something its all speculation and you can't worry about it! If you want to worry about something how about the US Treasury is broke! As of Midnight last night there is going to be no more money in the US Government! Now do we believe that or do you wait to see if our government comes up with a fix in the 11th hour to fix it for awhile again? Or do we make a run on the banks now!?

All I can say and this is just my opinion from what I have read and seen over the years on this investment! If they do Lop the 0's off of there Dinar, you have to realize that this would mean ALL there money! $20.00 Dinar would then be $2.00 Dinar $5.00 Dinar would be 0.50 cents and $1.00 Dinar would be 0.10 cents! And so on! Or do you say that 10k note is worth $10.00 Dinar? A 1k note is worth $1.00 Dinar? And a 100.00 Dinar Note is worth? Someone will end up loosing in the Lop Deal. I mean you could tell everyone that only 10K notes and above will be loped But how would you explain to the people that a 10K note is only worth $10.00 Dinar but a 1K Note is still worth $1000.00 Dinar? I think it will be a major headache for everyone, Government, Vendors and shoppers, but that hasn’t stopped them yet from doing some very confusing, headache causing things already!

Then you have the countries and corporations that have been Paid in Iraqi Dinar like GE in the US and countries like Kuwait that have been paid in Dinar, Now how would they take it if all of a sudden the Dinar they are holding as payment for after the RV/RI then Iraq says "Well, Sorry. But the 20 billion we just paid you is now only worth 20 Million or something to that effect? These countries and business are all investors in Iraq as well as we are. I know we would be Very Disappointed in Iraq for the broken promises but we can't do much about it! But Countries and supper corporations Can! So on that alone I don't see them doing the lop of the 3 0's thing. But that's just me.

The other thing that was brought up a long time ago when they where talking about doing this, is that it would be an IN Country Lop Only! And everyone else out side of Iraq would still get face value when they exchange there Dinar to US funds or where ever they live etc. Now that would make it possible for them to do the Lop of the 0's because everyone that invested or was paid by Iraq would still get there money or profits on return for investing so, everyone would be happy and the Iraqi People are using 25K bank notes as if they where $25.00 Dollars now, Well I think its actually like $22.43 Dinar per 25K note but at any rate they could have the people come into the banks and exchange there 25K notes for around $20.00 Dinar and maybe 2 or 3 $1.00 Dinar So they don’t loose anything and after the RV there buying power will go way up so it will be like they are still getting a big pay increase! This is the plain I think they will take if they do in fact lop 0's of the big Dinar notes, its the only plain where everyone is still be happy and the only way they can get away with it, With out causing a Civil war or something worse!

Again this is just my opinion and from what I have read and seen in years past and If you look at old documents or news paper articles from back then you will see what I mean. I will look for the links as I used to have them but I don't think I still do? And as that there old it will not prove or disprove anything anyway. I'll I can say is it is what it is! And it will be what it will be! when ever they pull the trigger and what ever they end up doing will be it and it will be over for better or worse, I’m hanging positive and the big $3.50 to $4.25 US Dollar to $1.00 Dinar!!!!

Take Care, Have Fun! God Bless...

GO GO GO... RV!!!! Merlin..

I want to believe in the big rate also but it sort of makes sense to me! If they put out the 100,000 dinar and a 50,000 dinar and maybe something close to a penny!

If 100000 = 100 dinar

If 50000 = 50 dinar

25000 = 25

10000 = 10

5000 = 5

1000 = 1

500 = .50

250 = .25

50 = .05

[Doctor Smith]

I don't know if it is my reading comprehension or the translation, but I read this 3 times and not completely sure if the article was in favor or not of deletion of 3 zeros.

Then they've achieved their goal of confusing themselves and you.

I wasted some time reading it. It seems like the same article they released years ago just changed the dates. At the end of the article it sounds as though they are happy with the stability of 1170 and have no idea of what to do next.

I say take a chance. If they have way more currency in country than the speculated currency outside Iraq they can revalue at any rate they would like.

[Hell froze over]

Conscious / raise zeros from the Iraqi currency ... between the robbery and yes / Graduate C 1

General Supervisor

Conscious / honest Tohma behind

30 trillion dinar thats 30 billion millions at 900.00 a million 2.5 million barrels aday at 110.00

Raised the proposal to delete the zeros of the Iraqi currency, which was adopted by the CBI, a sensation with government agencies and economic development in Iraq regarding the extent of its implementation, and Alatharwalanekasat the Iraqi currency in the current circumstances faced by the Iraqi economy, while the effects of The subject of deletion of zeros from the Iraqi currency . Sensation between the pros and cons about what can be consequent effects in the economic sector, especially the volume of currency in circulation in the Iraqi market estimated at up to 30 trillion dinars. Where he sees specialists in economic affairs that in the implementation of this proposal serious consequences begin to appear on the market that will occur upon changes in hit and suffer the consumer is the biggest loser of this process, especially if the implementation of the resolution in a sudden and rapid, and this does not mean the absence of optimistic this project and require the Iraqi Central Bank to adopt the implementation of this proposal and in turn gradually so as not to be the effects of this decision serious consequences on the market and the consumer, warning ، Of the consequences of the implementation of the proposed rapid and sudden, As well as that . The proposal to delete the zeros of the Iraqi currency if it is implemented in a sudden and quick decision would have serious implications on the consumer.

And opinions about the opposition to the project to delete the zeros defenders call him that opponents of the decision to provide an objective justification is not acceptable, through the Some of the definitions, one of the axioms of monetary theory, which put in front of senior professors, the theory of monetary policy-makers the central bank, such as: that the central bank target events (the cash) to the public and Sestdrj emotional feelings about the sense of the improved value of the dinar nominal not real, and the right it was not for this great merits of the argument by virtue of the availability of scientific expertise and advanced process for staff in the central and views this as . Defenders of the project raise zeros, In addition, Proponents argue that raising the zeros will create a psychological effect to the citizen through the strengthening of its currency and adopted more widely, rather than foreign currency, which is demand for them as it is the value of the high and the ease in pregnancy and the difficulty of counterfeiting. Not to mention that . The process of lifting of the zeroes will contribute to raise the value of the currency and reduce the rate of demand for hard currency, which is characterized by force and will lead to re-balance between the value of local and foreign currency and give it market power at home and abroad. While. Oppose the process of lifting of the zeroes believe that the dinar will lose its value and depend on the price index in the local market. Revealing ا That through the gradual rise of prices would lead to high rates of inflation, so that the Bank . Lifting of the zeroes will increase prices and rising inflation rate and we have to repeat the same process again. لذOpponents believe that the Postponement of this process at this time because it will create confusion in the Iraqi market and will cost the Central Bank of huge amounts of money through the process of drawing, printing, replacement, especially the amount of currency in circulation in the Iraqi market is currently estimated at up to 30 trillion dinars compared to what it was the amount of currency on our web site in 2004, which amounted to 4 trillion JD. ن Noting اThat go to support market stability and the national currency will be better and more effective than replacement with new value and other currency

ه This has begun to Iraq is witnessing a great and inflation gradually since the outbreak of war with Iran in the early eighties of the last century and the subsequent siege and invasion and zeros have been added as a kind of control on the Iraqi market has led to a doubling of the cash block several times.

Ilhoud so that there is a split among economists between opposition and supporters of the deletion of the Iraqi national currency Alasfreetn

And we will try to identify by searching for these divergent views ، , With the adoption of the view أ.. That the process of lifting the zeros need to tan and a preliminary test before implementation, and there is a simple example, we can test the market, a process that balances cell phones convert from the dollar to the Iraqi dinar .. ة. Here we find that the negative effects caused to a particular category are the agents of foreign companies, while the conversion and to deal in dinars and became a confusion in the discharge process the existence of small currency. ". Not to mention the increase zeros are not night and overnight but started since the beginning of the nineties of the last century means that we are dealing, up zeros currency Twenty years ago, and it must be the change gradually rather than abruptly so as not to affect the value of the new currency to be deducted in the local market " .

Aim:

By identifying the views of specialists in the economic affairs of Iraq, determine the pros and cons of the proposal Deletion of zeros from the currency value of the Iraqi National

Research problem:

Ambiguity effects and implications on the value of the national currency of Iraq, and the price of foreign exchange under the variation and differences in the economic views.

Hypothesis:

Inflation in the Iraqi economy in the levels of non-disturbing, than for Aidawa to implement the proposal to delete the zeros, which may cause the increase of demand for goods and services in light of the emergence of the phenomenon of monetary illusion

First research

Monetary policy in the face of inflation

Is the monetary policy pursued by the Central Bank of Iraq after 2004's admired by those interested in economic affairs of Iraq, which contributed to this policy in stabilizing the national currency, which was reflected in the stability of the overall level of prices and low inflation rate of around 50% to 3%, according to statistics from the World Bank Central, and the attic in this section we will discuss the origins and evolution of the national currency and the Iraqi Central Bank and its policy in the face of inflation.

The first requirement: the origins and evolution of the Iraqi currency

The national currency is the Iraqi dinar has been the issuance of such national currency for the first time in 1931, the dinar was worth at the time (7.32382 ) of a gram Of Gold version according to the law in 1931, and in this period. And the period of the previous Iraq was under British control. And the rest of the year 1947 (1) 1947 confirming the dependency of cash to England, the value of the dinar foreign vary according to the change in value of the pound sterling and regardless of the circumstances and economic conditions and the local cash in Iraq, the most important reasons for this dependency due to political reasons and other economic The first is the subordination of Iraq to control the British colonial and the second in economic ties Trade between the two countries strong 0 (1)

In 1959 a new law of the national currency of Iraq, which became the currency of the dinar and the basic monetary unit of the Republic of Iraq (2) ، Equal in value (2.48828) of a gram of pure gold, and this represents progress in breaking the cycle of اDependency monetary shift "important and essential in building the monetary system independent Iraqi for international currencies and continued monetary system and banking development in Iraq, that started the Iraqi currency to decline with the wars waged by the political system in Iraq, not to mention the economic blockade as it reached the dollar equivalent of three thousands JD to higher levels when approaching military strike against coalition forces that ended the dictatorial rule 0 and it began a new phase of Iraqi currency, which . Undergone several changes in its history, most recently in 2004 when the former Governing Council replaces the former currency, which was a symbol of the former regime.

ا To put on new laws to the Bank's work ل االاجراءات Considered in light of an independent body and has emerged the Iraqi Central Bank's role through Aalajraouat د Effective and affecting market liquidity (cash basis), namely: -

1- Foreign currency auctions, in which buys or sells the Iraqi Central Bank of the dollar or to the market in the light of its political objectives.

2- A list of the legal reserve requirements and the banks are in the possession according to customer deposits and any differential levels of deposits with the Central Bank of Iraq, cash in the safes and securities of the Ministry of Finance.

3- Facilities exposure of banks that have balances of reserve accounts in the Central Bank of Iraq, but not sufficient to settle the obligations at the end of banking day.

Hence monetary policy has an important role in maintaining the value of the Iraqi currency

It may be useful to point out here that what determines the value of the currency is linked to development of the economy as a whole state of scales external deficit or surplus is one of the most important factors as the existence of the old man in the external balances help to lower the value of the currency by increasing the demand for foreign exchange in order to fill the shortfall and obligations and which are in foreign currency this process, "any increase in demand for foreign exchange" is that directly affect the valuation and economic status. Bamahsalp by the currency to strengthen it depends on a combination of factors are in the end, the strengthening and development of the economy and its sectors. ا Therefore, the zeroes would not be a play to save as much as address the currency in cash. The currency has two values ​​value of internal and external value and either foreign currency is the Iraqi dinar exchange rate against foreign currencies, we are currently witnessing the exchange rate stability and a clear value (1170) dinars to the dollar and this stability works to promote investment opportunities and facilitate and strengthen the planning for the future and makes الMtmona citizen will not be busy at any fluctuations in the exchange rate reflect the years leading up to 2003ا, which was changing the exchange rate five times during the day (1)

But now price of exchange is stable and this is the success of monetary policy in place to bank in the stability of the external value of the Iraqi dinar either at the level of the value of Interior of the dinar is difficult to separate the values ​​of internal and external of the dinar, but the goal is to address the overall level of prices, and this level Homwhrat inflation in the Iraqi economy is to be adopted by the World Bank Central is the basis because the index of consumer prices Deleted Menna fuel prices and some food Kalkhaddr.Hence, the bank economist praises Iraqi and policies that have contributed to the stability of the value of the Iraqi currency, the country is enough political problems and security, to the stability of the currency, which contributed to maintain the general level of prices in the consequent social stability, which contributes to economic stability.

M. H

http://translate.goo...es%2F56519.html

3o trillion dinar thats 30 billion millions at 900.00 a million and 2.5 million barrels a day at 110.00 work it out try some new batteries in the calculator

Edited April 8, 2011 by Hell froze over

[imgesing]

Raise ZEROS... They said they will be taking up the larger denoms. Pulling them from circulation.

Also (I wish I had the link) they printed and are holding lower denoms. They simply want to keep the larger denoms out of circulation and in this respect remove them from circulation.

They have said this many times the same thing in different ways. REMOVE the ZEROS. Take them from being used. A 50 Dinar Note cant be worth the same as a 50K note. USE LOGIC...

Use the NEWS. Use the quotes...

Peace.

[DaveNC]

The last sentence in 2nd paragraph tells what they want to do. Noting اThat go to support market stability and the national currency will be better and more effective than replacement with new value and other currency. And they are saying that adding the 000s took a long time and the best way is to let the currency rise in value slowly over time.

[suntiger]

Raise ZEROS... They said they will be taking up the larger denoms. Pulling them from circulation.

Also (I wish I had the link) they printed and are holding lower denoms. They simply want to keep the larger denoms out of circulation and in this respect remove them from circulation.

They have said this many times the same thing in different ways. REMOVE the ZEROS. Take them from being used. A 50 Dinar Note cant be worth the same as a 50K note. USE LOGIC...

Use the NEWS. Use the quotes...

Peace.

I am not trying to attack you but USE LOGIC! Really come on you need to read about Turkey's Redenomination.

5. What is the conversion rate between Turkish Lira and New Turkish Lira?

While converting Turkish Lira values into New Turkish Lira; one million Turkish Lira (1.000.000 TL) is equal to one New Turkish Lira (1 YTL).

In other words, 6 zeros were dropped from our currency. That means 20.000.000 Turkish Lira and 20 New Turkish Lira have the same purchasing power.

http://www.tcmb.gov.tr/yeni/iletisimgm/NTL_faq.htm

Do not give me the hyper inflation crap either! Read about it! Redenomination can be done after recovering from hyper inflation and being stable for several years!

http://www.unc.edu/~lmosley/APSA%202005.pdf

Iraq can do whatever it wants and we know nothing about their real plan!

[merry1]

Removing the zeros will allow them to raise the value of the dinar....which in most redenominations is what happens......reduce the money supply while adding value to the currency......they are just debating back and forth and weighing all the options and possible outcomes of them doing it.....

I think you are on the right track here. This is still the on going debate. Here is a scenario how it could happen:

There are always two values to every currency. Bank to Bank rate and one for the general population. What I believe they are saying here is they are going to raise the zero's on the note and as well as the rate. rd/rv. It will work this way. They will introduce the smaller denominations gradually into the system. (Guru's have said this is already done, but no proof has ever been found this is true) The large denoms will gradually be taken out of circulation. When using both denominations the new lower bills will have the new rate, for example .00086 becomes .86 so 25 dinar note is worth $21.50 and a 25000, note would be figured at the old rate of .00086. 25000 x .00086 = 21.50. So an Iraqi would go to the store with one new 25 note and one old 25000 note and they would both have the same value. The Iraqi's are happy because they haven't lost any money by the deletion of the zero's. The CBI and the GOI are happy because the currency remains stable and is now considered by investors to be stable thereby encouraging investment. The currency goes on forex and overtime the CBI will let it rise slightly in value. They will lock the currency in at the rate they have rv'd, say .86 as many M.E. countries have done for years, and let the value raise only a pip or two. But remember, your 25000 note are still figured at the old rate.

Doing it this way will gradually remove the large notes from circulation and not be a total shock to the Iraqi's. Prices won't rise rapidly causing a rise in inflation and Iraq won't pay trillions of dollars out to investors which they can't do anyway because the amount of dinars in circulation is estimated at over 30 trillion. Imagine how much money they would have to have in reserves, in hard currency as well as oil to cover even a 25 cent revalue! They don't have those kinds of reserves either in cash reserves or in oil. Jmo

[Doctor Smith]

I think you are on the right track here. This is still the on going debate. Here is a scenario how it could happen:

There are always two values to every currency. Bank to Bank rate and one for the general population. What I believe they are saying here is they are going to raise the zero's on the note and as well as the rate. rd/rv. It will work this way. They will introduce the smaller denominations gradually into the system. (Guru's have said this is already done, but no proof has ever been found this is true) The large denoms will gradually be taken out of circulation. When using both denominations the new lower bills will have the new rate, for example .00086 becomes .86 so 25 dinar note is worth $21.50 and a 25000, note would be figured at the old rate of .00086. 25000 x .00086 = 21.50. So an Iraqi would go to the store with one new 25 note and one old 25000 note and they would both have the same value. The Iraqi's are happy because they haven't lost any money by the deletion of the zero's. The CBI and the GOI are happy because the currency remains stable and is now considered by investors to be stable thereby encouraging investment. The currency goes on forex and overtime the CBI will let it rise slightly in value. They will lock the currency in at the rate they have rv'd, say .86 as many M.E. countries have done for years, and let the value raise only a pip or two. But remember, your 25000 note are still figured at the old rate.

Doing it this way will gradually remove the large notes from circulation and not be a total shock to the Iraqi's. Prices won't rise rapidly causing a rise in inflation and Iraq won't pay trillions of dollars out to investors which they can't do anyway because the amount of dinars in circulation is estimated at over 30 trillion. Imagine how much money they would have to have in reserves, in hard currency as well as oil to cover even a 25 cent revalue! They don't have those kinds of reserves either in cash reserves or in oil. Jmo

[Drunken Irish]

Removing the zeros will allow them to raise the value of the dinar....which in most redenominations is what happens......reduce the money supply while adding value to the currency......they are just debating back and forth and weighing all the options and possible outcomes of them doing it.....

I'm staring to think there will be a lop then, RV then international recognition and it will not be tomorrow

[Doctor Smith]

I think you are on the right track here. This is still the on going debate. Here is a scenario how it could happen:

There are always two values to every currency. Bank to Bank rate and one for the general population. What I believe they are saying here is they are going to raise the zero's on the note and as well as the rate. rd/rv. It will work this way. They will introduce the smaller denominations gradually into the system. (Guru's have said this is already done, but no proof has ever been found this is true) The large denoms will gradually be taken out of circulation. When using both denominations the new lower bills will have the new rate, for example .00086 becomes .86 so 25 dinar note is worth $21.50 and a 25000, note would be figured at the old rate of .00086. 25000 x .00086 = 21.50. So an Iraqi would go to the store with one new 25 note and one old 25000 note and they would both have the same value. The Iraqi's are happy because they haven't lost any money by the deletion of the zero's. The CBI and the GOI are happy because the currency remains stable and is now considered by investors to be stable thereby encouraging investment. The currency goes on forex and overtime the CBI will let it rise slightly in value. They will lock the currency in at the rate they have rv'd, say .86 as many M.E. countries have done for years, and let the value raise only a pip or two. But remember, your 25000 note are still figured at the old rate.

Doing it this way will gradually remove the large notes from circulation and not be a total shock to the Iraqi's. Prices won't rise rapidly causing a rise in inflation and Iraq won't pay trillions of dollars out to investors which they can't do anyway because the amount of dinars in circulation is estimated at over 30 trillion. Imagine how much money they would have to have in reserves, in hard currency as well as oil to cover even a 25 cent revalue! They don't have those kinds of reserves either in cash reserves or in oil. Jmo

That is called a lop. And to add to this they wouldn't have to increase the value as a $25 bill would then equal US Dollars 21.395. And everyone invested will have wasted their time. Won't be doing business with Iraq anytime soon in the future after that one.

[aferriss]

The story sounds like it repeats itself in different forms. Google translate does not translate it correct enough to make an assumption of what they are trying to say. Like what the hell was the following line really suppose to say?

Proponents argue that raising the zeros will create a psychological effect to the citizen through the strengthening of its currency and adopted more widely, rather than foreign currency, which is demand for them as it is the value of the high and the ease in pregnancy and the difficulty of counterfeiting.

Is someone giving birth to a dinar?

:lol: :lol:

[BigJake]

Or maybe they are going to revise the value of the dinar to $ .86 instead of $ .00086) but not delete the zero,s from the bills!

[keepmwlknfny]

IN YOUR HUMBLE OPINION... (wink)

I agree in that they are doing a lot behind the scenes. The value of the DInar and how they will handle it is pure speculative...

What is it that you keep pinning your idea on in terms of the wiping away of the zero's? Do you really believe they absolutely MUST erase zero's?

A Loss Of Profit doesnt fit this economic model... SO the term is MISPLACED! Yet we shall see and as always this is from what I know and have read and ultimately my belief.

Hey, I am praying for a nice return. Peace KEEP.

I dont feel they have to absolutely LOP.....but one way or another the bigger bills will be removed because when the value goes up there is no practical use for carrying a 25k note around to buy something small.....no one will have change for you.....if they get this visa card thing going and people deposit all their bills into the bank, then I could see just getting the bigger bills out of circulation over time and raising the value of the dinar before or even during this process.....if they cant figure out a way to get those bigger bills back in to reduce the physical money supply then yes I do see a LOP happening and then of course raising the value after....It all depends on what they can get accomplished.....but a LOP isent a loss anywhere period....its a neutral change....bills are broken down and new ones distributed as the purchasing power and value goes up....no one loses....we could gain if they lopped and brough back a higher rate which could be justified if they do that......if they lopped and brough out a 3 dollar rate we triple our investment....not bad for sitting on our arses....

[AudiS4]

Well if they don't have credit/debit cards right now... how could they possibly live without using CASH? Once they go digital, bringing in any and all bills should be simple.

I still dont see why slowly stepping the rate would be hard. It would slowly make the larger bills overkill and would bring them in.

Raise rate from $0.00086 to $0.0086... essentially making a 25k note worth $215, a 10k note worth $100. Slowly remove the 25k notes and some of the 10k notes. Go digital and remove more. After a year, raise rate to $0.086... essentially making the 25k note $2150, the 10k note $1000, and the 5k note $500. Bring in ALL the remaining 25k and 10k notes (except for those who are speculators or collectors), and take in some 5k notes. During this whole time slowly release the 20 dinar note, then 10 dinar, etc etc as appropriate. Eventually raise value to $0.86, bring in all remaining notes 500 dinar and above (you'll never get all of them).

All of this in a matter of 3 years or so would be nice!

[imgesing]

I am not trying to attack you but USE LOGIC! Really come on you need to read about Turkey's Redenomination.

5. What is the conversion rate between Turkish Lira and New Turkish Lira?

While converting Turkish Lira values into New Turkish Lira; one million Turkish Lira (1.000.000 TL) is equal to one New Turkish Lira (1 YTL).

In other words, 6 zeros were dropped from our currency. That means 20.000.000 Turkish Lira and 20 New Turkish Lira have the same purchasing power.

http://www.tcmb.gov.tr/yeni/iletisimgm/NTL_faq.htm

Do not give me the hyper inflation crap either! Read about it! Redenomination can be done after recovering from hyper inflation and being stable for several years!

http://www.unc.edu/~lmosley/APSA%202005.pdf

Iraq can do whatever it wants and we know nothing about their real plan!

Your last line is 100% correct. I guess well will all have to wait and see. Yet, YOUR SPECULATION IS AS GOOD AS MINE.

Also it depends if they are introducing the new LOWER denoms to REPLACE the old ones. Which has been said they wont but who the heck can you trust?

OR NOT! It is a wait and see game here. I guess we all have opinions just like we have... never mind. Peace

[TAS]

Reposting my 17 mar 2011 with additional comments

[uA. ]UPDATING[/u]

Reposting my comment posted 09 December 2010 and also later on

1. Regarding the RV value

Here is my temporary estimate:

Calculation: Iraq’s total assets : the total number of dinars printed = $X/IQD.

Based on Wikipedia informations (http://en.wikipedia.org/wiki/Oil_reserves, http://en.wikipedia.org/wiki/Iraq), one listing the oil assets equal to 180 bbl, another 143,1 bbl and total amount of dinars printed = 25 trillion (http://theiraqidinar.com/tag/revalue/), we get the following calculations (Iraq’s total assets I don’t know).

a. (180 bbl x $75) : 25 trillion IQD = $0.54/IQD

b (143,1 bbl x $75) : 25 trillion IQD = $ 0.43/IQD

Conclusion: 1 IQD = $0.43-$0.54, when not considering the rest of Iraq’s assets and ignoring eventual higher oil prices (today 1 bbl = ca. $97).

Unknown factor: How much of the 25 trillion IQD is in circulation.

Political agenda: Iraq, as well as USA and another countries, holding lots of IQD themselves, ref. Bush, quote: “The war will pay for itself”, will most likely not accept a price of IQD being less valued than 1 IQD = 1 USD compared to their neighboring countries. To achieve that, the sufficient amount needed will be stored uncirculated in the Iraqi vaults, serving as a replacement or currency regulating asset.

2. Ref: Scooter’s brilliant “Trifecta theory, part 5”, quote:

“Iraq could have the largest oil reserves in the world (The Sunday Times). The Iraqi Deputy Minister told The Times that new exploration showed that his country has the world’s largest proven oil reserves, with as much as 350 billion barrels.” (Please don’t reply/comment by referring to much, much bigger oil and gas findings in USA, that’s not the issue here.)

Thus concluding my previous calculations, the new estimate is, still neglecting other Iraqi assets and any higher oil prices than 1 bbl = $75.

(350 bbl x $75) : 25 trillion IQD = $1.05/IQD

B. Consequences

Lately, commentaries have been made having us to believe that a one 25000 IQD note will be exchanged for either one 250 or one 25 IQD note, thus nullifying our investment.

Fact: Estimated value of our Iraqi assets, as mentioned in my “updating”, is (more or less) a fixed value.

When the CBI decides to let the IQD float on the international market, then the IQD value is calculated by dividing the “fixed” value of the country’s value with the total amount of IQD in circulation. Acc. to my calculations that might reasonably be 1 IQD = ca. $1 USD. But, as somebody claim on this forum, at an RV, in exchange of your one 25000 IQD note, you receive only one 250 IQD note or one 25 IQD note, but that contradicts mathematics, because, obviously, then less IQD will be in circulation, actually, simplifying it, 1/100 or 1/1000 part of what now circulates, then of course the one IQD 250 note or the one 25 IQD note will have to increase accordingly in value. Therefore, to have a RV of 1 IQD = $ 1 USD, and at the same time removing the bigger notes from the market, an exchange of one 25 000 IQD note must consequently equal one hundred IQD 250 notes or one thousand IQD 25 notes. Then, shall this be practicable, also smaller notes/coins must be produced for this to take place. Not ignorering the potential of smart economic planning of those who first thought about this change of money scenario, we can thus expect smaller notes/coins already being stored (secretly) in the Iraqi vaults, ready for distribution.

C. Politics, facts and rumors, informations - verified or not

The people of Iraq are now receiving (monthly?) 15 000 IQD. Being almost worthless at the present rate, but with an imminent RV rate of 1 IQD = ca. $1 USD gives sense – and hope, but giving them an RV-value of 15000 IQD = $15 USD, must for them be a mockery, compared to what most of them are expecting.

Iraqis, having fled the country, are of course looking forward to a RV rate at least as here calculated (1 IQD = ca. $1 USD), especially with regards to lots of them having lost all of their savings when the Saddam dinar became worthless. For them, as well as Iraqis within Iraq, a nullifying of the RV will certainly create great anger and rage towards the GOI, and those GOI representatives will simultaneously also most certainly erode their own government positions and possibility of likewise dinar saving repayments, ref. also present Arab countries´ uprising, riots and revolutions. Is this likely to happen?

Having a pre-RV just inside the borders of Iraq, is also a fluctuating argument. The main reason for this seems to be a prevention of foreign investors’ possibility of enriching themselves at the expense of the Iraqi tragedy, but will this actually happen, or are such a delay and political maneuver too costly, intolerable and unacceptable, given the consequences. To me it makes sense that the political and economical stabilizing development of Iraq has to be the main priority, and that there is now no room for any more set backs and delays. The international floating of the Iraqi currency has therefore to be executed as soon as possible with an Iraqi world wide tradable dinar, thus producing the economical and political boost the Iraqis are awaiting.

[FishmanTx]

Excellent TAS! Now there's some logic and clear headed thinking.

Fish

[Doctor Smith]

Excellent TAS! Now there's some logic and clear headed thinking.

Fish

And notice that Bush said that they were not going to lose money on the War. If they have enough reserves of Dinar in the CBI they would settle for no less than 1 USD RV. If you have enough reserves you can cover an RV at a higher rate.

Edited April 8, 2011 by Doctor Smith

[hoosier1470]

Iraq is going to be the Big winner in this no matter what the RV rate is....with their increasing oil production, and the price per barrel going up almost daily.....they are going to get some MAJOR money rolling in fast! Maliki will probably even take a vacation to Hawaii with Obama!!!