Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

The central bank about to put the final touches on the draft to three zeros of the Iraqi dinar


Recommended Posts

maybe they didnt make it clear enough. they said remove the ZEROS FROM THE CURRENCY, for those who dont know what that is, it is what you are currently holding (currency) i am not saying that this article is real, but it 100% no doubt about it means lop, there are no if's and's or butts about it. put the koolaid down folks i want to wake up rich as well, but we will make 3 times (if you have $1000 invested you will get back $2-3000 back). trust me i have a masters in economics that is what this all means.

Forgive me for what I am about to say... please. I do not know you. I am not judging you. But I know people who have masters degrees that can't pour p*** out of a boot with instructions on the heel, and many economists are in that group. I don't know how you came by the opinion that this "100% no doubt about it means lop". The lifting of zeroes from the currency is not an unequivocal lop. It could mean that the currency will be phased out as they come back to the CBI. I am fairly perceptive and a decent interpreter of English. Nowhere in the posted article is the specific concept of LOP eluded to. If you will run your numbers again I think you will also find that if an outright lop occurs you will not, in fact, make money. For example, a 25K note in an outright lop scenario becomes 25 dinar, so please, explain to those of us that do not have "masters" how that will make money for us. B)

You're right, it is the same thing "only" if lopping and removing the zeros from the value happens simultaneously. I might be wrong but I think those with higher expectations aren't misunderstanding that it's the same thing but are simply hoping that both scenarios don't happen simultaneously and are hoping for removal of the 3 zeros from the value only. The return will be much greater which is what anyone would want to happen. 1,000,000 dinar times $.86 (after removal of the 3 zeros), $860,000, is just more welcoming as opposed to 1,000 dinar times $.86 (lopping of the currency), $860.00. Even if the 1,000 dinar times an RV of $3.86 occurred for a total of $3,860 (still on the lop scenario) some still probably wouldn't be happy simply because if they got into this as a long term investment they will no longer see it that way because there's probably not a realistic chance that the value of the dinar will [ever] increase much higher than $3.86. Even if it did go to, say $5.00 after the lop it still will crush a lot of investor's dreams. Personally, I can't hold that against those who are hoping to make a lot of money because that's what I'd like to do as well... buuuuuut... I know I have to be prepared for whatever happens and not get too worked up over something that I currently don't have... millions of dollars. That's how I remain grounded and just hope for the best.

It is the most unlikely of scenarios for them to lop from both ends of the spectrum. IF there is a lop, it will either be from the currency value or from the front of the exchange rate. The $.86 everyone is throwing around is from the exchange rate and IF they lop the zeroes from .00086 it becomes .86 and that in fact will be worth $1.17USD. Bottom line is: there will not be a LOP from both currency face value and the rate of exchange. B)

  • Upvote 3
  • Downvote 1
Link to comment
Share on other sites

first of all, i am on your side, do you know what they are even talking about? if they are saying lifting zeros off nominal value then it comes off .00086. what they are saying is lifting zeros off currency (25000 - 3 zeros= 25) how much clearer can they make it.

If they are lifting zeros off of currency, wouldn't the value stay the same?

Link to comment
Share on other sites

What gets me is why would Iraq tell us anything about whats going on...why would they give us a heads-up on what there plans are? I'm to the point I'm not paying any attention to these articles anymore.

Well it would appear to me that you are paying attention to these articles seeing as you read it and have replied to it. :lol:

Link to comment
Share on other sites

Forgive me for what I am about to say... please. I do not know you. I am not judging you. But I know people who have masters degrees that can't pour p*** out of a boot with instructions on the heel, and many economists are in that group. I don't know how you came by the opinion that this "100% no doubt about it means lop". The lifting of zeroes from the currency is not an unequivocal lop. It could mean that the currency will be phased out as they come back to the CBI. I am fairly perceptive and a decent interpreter of English. Nowhere in the posted article is the specific concept of LOP eluded to. If you will run your numbers again I think you will also find that if an outright lop occurs you will not, in fact, make money. For example, a 25K note in an outright lop scenario becomes 25 dinar, so please, explain to those of us that do not have "masters" how that will make money for us. B)

It is the most unlikely of scenarios for them to lop from both ends of the spectrum. IF there is a lop, it will either be from the currency value or from the front of the exchange rate. The $.86 everyone is throwing around is from the exchange rate and IF they lop the zeroes from .00086 it becomes .86 and that in fact will be worth $1.17USD. Bottom line is: there will not be a LOP from both currency face value and the rate of exchange. B)

Disagree

There would be no point in them taking zeros off the currency without taking zeros off the exchange rate at the same time. The reason for taking zeros off the currency would be to reduce the value of the dinar in circulation. To do this they would have to change the exchange rate too. Their currency is worthless enough as it is. LOPPING without raising the exchange rate would make their currency beyond worthless.

Edited by dinarck
Link to comment
Share on other sites

Just from experience of being in the ME for 7 years I can tell you the people can't be trusted and will screw anyone including their own people. Don't be overly surprised, I know I won't! ;) I know how I would handle the whole region, but most people would be sickened by my true and sincere opinion. Have a nice day and good luck to everyone. B)

Edited by In Iraq
  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

I'd like to see what others think of this...

Was preceded by Iraqis in the area of the economy that have played

down the impact of the central bank should be deleted zeros of the purchasing

power of the Iraqi dinar, and the government hopes for such a step, and

researchers believe that the cost of the الاصفار will be the largest of the

benefit, considering that currency strength measured its stability, which is

based on the strength of the productive sector capable of the provision of

goods and services

I vote for this means that .00086 buys 1 and later .86 will buy 1. To me, that is deleting zeros of the purchasing power of the Iraqi Dinar. I agree that the GOI would hope for such a step.

Link to comment
Share on other sites

Disagree

There would be no point in them taking zeros off the currency without taking zeros off the exchange rate at the same time. The reason for taking zeros off the currency would be to reduce the value of the dinar in circulation. To do this they would have to change the exchange rate too. Their currency is worthless enough as it is. LOPPING without raising the exchange rate would make their currency beyond worthless.

Okay. It is true that it would render a worthless currency worth less. It was late for me when I jumped on that post and I failed to express my thoughts with clarity, but I still do not see that the article specifically means LOP. Due to the very low rate of inflation (3 - 4% for the past two years), the Total Government Expendatures As A Percentage Of GDP and Iraq's potential ability to increase GDP rather dramatically through a surge in oil production coupled with the fact that IQD has been among the most stable currencies for quite some time, I do not believe an outright, screw the world type of LOP is warranted and I believe it would weaken their standing with the WTO. As a fledgling striker nation that wants to be a player and provider, screwing all of your trade and potential trade partners is not the best course of action. It is rather like shooting yourself in the left foot because your right big toe is sore. We've had all of this LOP BS for a long time and it is a dead horse that has been thoroughly whipped. It is still my opinion that the rate of exchange could come in at a low nominal rate ($.20 - $.30USD) in a managed float. To jump to the conclusion that everyone who has purchased dinar is going to very simply be screwed to tears on the basis of an article that indicates a redenomination is at hand is not sound thinking. That is my opinion. B)

  • Upvote 3
Link to comment
Share on other sites

As an example: Assuming that the entire 27T IQD were in physical currency (we all know that is not the case), an RV @ $.20USD would put it at 5.4T. That is manageable and plausible. Realizing that a very small percentage of the total 27T is actually in circulation an RV of the ROE would support significantly more than $.20 - $.30USD.

  • Upvote 3
Link to comment
Share on other sites

Wednesday, April 13, 2011 09:58 GMT

Iraq’s Central Bank announced on Tuesday that the project of Iraqi Dinar re-denomination consisting of removing three zeroes is close to completion.

The re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.

The plan to remove three zeroes from the Iraqi Dinar is a strategic plan that the central bank is currently finalizing, Central Bank’s advisor Mothahhar Mohammed Saleh said in a statement to Alsumaria News.

This plan aims to alleviate transactions cost and help people carry less money, Saleh said noting that Iraq seeks to produce 6 to 12 oil barrels which is expected to increase the value of Iraqi dinar and boost development, he said.

Iraq’s central Bank has managed during the past five years to reduce inflation rates from 34% to 3 or 4% and stabilize Iraqi Dinar exchange, the Central Bank’s advisor told Alsumaria News.

In an earlier statement to Alsumaria News, Iraq’s central Bank adviser Mothahhar Mohammed Saleh affirmed that the bank plans to remove three zeroes from the Iraqi Dinar noting that the zeroes which were added to the Iraqi currency previously constituted a large money supply estimated at 27 trillion Iraqi Dinar.

Saleh revealed on the other hand that Iraq engages for the first time in banks payment system as it moved from manual to electronic clearance. The system includes six banks in addition to electronic deeds exchange, he said adding that the smart and credit cards will be bound to the central bank system.

The Central Bank will form after three years what is known to be as the payments council which sets forth Iraq’s banking protocols and infrastructure, the central bank’s adviser said.

Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar which the government has hopes high on it.

http://www.alsumaria.tv/en/Economics-News-Iraq/3-62912-Iraq-Central-Bank-to-remove-three-zeroes-from-Iraqi-Dinar.html

Link to comment
Share on other sites

As an example: Assuming that the entire 27T IQD were in physical currency (we all know that is not the case), an RV @ $.20USD would put it at 5.4T. That is manageable and plausible. Realizing that a very small percentage of the total 27T is actually in circulation an RV of the ROE would support significantly more than $.20 - $.30USD.

Your right, 27 trillion isent in circulation.....24 of it is....but that is NOT a small percentage!

  • Upvote 1
Link to comment
Share on other sites

Wednesday, April 13, 2011 09:58 GMT

Iraq’s Central Bank announced on Tuesday that the project of Iraqi Dinar re-denomination consisting of removing three zeroes is close to completion.

The re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.

The plan to remove three zeroes from the Iraqi Dinar is a strategic plan that the central bank is currently finalizing, Central Bank’s advisor Mothahhar Mohammed Saleh said in a statement to Alsumaria News.

This plan aims to alleviate transactions cost and help people carry less money, Saleh said noting that Iraq seeks to produce 6 to 12 oil barrels which is expected to increase the value of Iraqi dinar and boost development, he said.

Iraq’s central Bank has managed during the past five years to reduce inflation rates from 34% to 3 or 4% and stabilize Iraqi Dinar exchange, the Central Bank’s advisor told Alsumaria News.

In an earlier statement to Alsumaria News, Iraq’s central Bank adviser Mothahhar Mohammed Saleh affirmed that the bank plans to remove three zeroes from the Iraqi Dinar noting that the zeroes which were added to the Iraqi currency previously constituted a large money supply estimated at 27 trillion Iraqi Dinar.

Saleh revealed on the other hand that Iraq engages for the first time in banks payment system as it moved from manual to electronic clearance. The system includes six banks in addition to electronic deeds exchange, he said adding that the smart and credit cards will be bound to the central bank system.

The Central Bank will form after three years what is known to be as the payments council which sets forth Iraq’s banking protocols and infrastructure, the central bank’s adviser said.

Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar which the government has hopes high on it.

http://www.alsumaria.tv/en/Economics-News-Iraq/3-62912-Iraq-Central-Bank-to-remove-three-zeroes-from-Iraqi-Dinar.html

Well, I have been looking this over and reading and then reading some more. After this new article came out today , I feel it is time to weigh in with my opinion. This will not be popular with you as it is not with me. In fact after all this time for something like this to happen turns my stomach. My opinion is that I am afraid we are facing a straight up LOP. Why they would do this I'm really not sure as none of the situations that would make a country LOP its currency apply to Iraq at this time. If however you read the above article carefully that is the only conclusion I can arrive at. If I base my opinion solely off this article, I do not see an RV in here anywhere. This is what I base my opinion on:

. Article specifically says re-denomination. Remove three zeroes from Iraqi dinar. Says nothing about revaluation.

The last line really bothers me. " Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar which thre government has high hopes on it". To me, another indication of no re-valuation.

Based solely on this article, the word re-denomination (not re-value).. Combine this with lift the three zeroes from the dinar, and add "will not have a major influence on purchasing power" and in my opinion it can sadly mean only one thing.....Straight up LOP.

I hope and pray that I am wrong and if anyone can show my how I am misreading PLEASE feel free to do so, but to me, all logic says if this article is true, we have wasted a lot of time here.

I have gotten to know many of you and consider you friends. Those of you who know me, know I do not like to write in the negative. unfortunately, the way this article today ( which appears to be a follow up to yesterdays article) is written, I can only come to this conclusion. I certainly hope I am wrong.

  • Upvote 2
Link to comment
Share on other sites

If the dinar is loped then it will not only hurt the investors but the iraqi people as well as there buying power will be reduced as well.

Technically, the buying power stays relatively the same.

A Pre-Redenominated 25,000 IQD note equals a Post-Redenominated 25 IQD note.

Whether they LOP or RV, in my opinion, they have to print some new currency.. Lower denominations.....

The problems I would fore-see is how it would cause mass-confusion to citizens.

For example, if you have newly redenominated notes and you walk into a market and see the pricing of pre-LOP merchandise, you may get confused.

Businesses would have to work with both pre-LOP notes & post-LOP notes.

Link to comment
Share on other sites

If the dinar is loped then it will not only hurt the investors but the iraqi people as well as there buying power will be reduced as well.

It amazes me how people can honestly believe things like this.

If the Dinar is Lopped by three zeroes, and a 25,000 Dinar note / bank account worth $20 US becomes a 25 Dinar note worth $20...

THE INVESTORS ARE NOT HURT AT ALL. Notes, bank accounts, debts, etc are all reduced as well.

You and I as speculators are not HURT. Our US Dollar Investment is still worth the same amount. As with everything in life, we could lose out on fees / transaction costs, but our Dinar is still worth the same amount.

Granted, there are not enough positive effects of lopping to outweight the costs... but we are talking about Arabs, who will do anything to save face or look better.... even if it costs them dearly :)

Semper Fidelis

Link to comment
Share on other sites

Hey Rsskelton, that article is a different interpretation from what Sara posted. It doesn't have redenomination; it says draft of the 3 zeros, which to me means pulling out of the large notes.

Hey bud, I'm not trying to argue with ya; Heck I'm on your side. The article I am referring to specifically uses the word re-denomination in 3 places. If that means anything other than what I stated would you, or anyone else explain it to me? I just want a clearer understanding. Oh by the way, whoever gave me a -1 for what I said, sorry you didn't like it. I don't like it either.

  • Upvote 3
  • Downvote 1
Link to comment
Share on other sites

I have a master's in economics and accounting, but I'm not claiming that for the sake of this post or this investment. You absolutely CANNOT read into anything that is put out of that country. You can read it for entertainment value, but you can't place too much weight in it. They will never come out and tell you straight one way or another, because they can't. This investment isn't about finding that elusive article that tells you exactly what's going to happen, because it does not exist. My father told me about this investment, and also told me to believe nothing in print. When China revalued, they took out full page ads in the New York Times, USA Today, and others the week before saying something to the extent of "No way will we revalue the Chinese Yuan...it will be catastrophic to our economy, etc... What happened one week later?

Don't get caught up in the misinformation. Also, note the declining M2 ratio on the CBI website. This is indicative of a depleting money supply (as the M2 measures currency in circulation). The 'lifting' or 'deleting' of the zeroes from the money supply would cause the M2 to decrease, as evidenced by the economic indicators on the CBI website.

Don't fear the LOP - because the numbers don't point to it, because people like Ali say it's not happening, and mainly, because you can't do anything about it.

  • Upvote 8
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.