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Deletion of zeros from the Iraqi currency would overcome all the economic difficulties


nointel
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Iraqi List MP: Deletion of zeros from the Iraqi currency would overcome all the economic difficulties April 16, 2011

Parliamentary: the deletion of zeros from the Iraqi currency would overcome all the difficulties of economic

Saw an MP for the Iraqi List, reproach the league that the process of deletion of zeros from the Iraqi currency, to work through all the economic difficulties, especially after the case of hyper inflation experienced by the country.

She said in a press statement today: The announcement of the Iraqi Central Bank Governor for putting the final touches to the process of lifting the zeros from the currency is one of the things in support of the Iraqi economy, which reduces the status of the existing inflation.

The governor of the Central Bank came to the House of Representatives earlier and discussed with the deputies, the subject of the Iraqi economy and the deletion of zeros from the dinar.

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Look, ANY yes ANY removal, deletion, or whatever that removes the three zeros is a LOP and very bad for us - it just reduced the potential value of 1 Dinar by 1,000 - not to our advantage. Although an RV at 75 cents makes more sense and would be fantastic for us, we can't ignore the constant press about the three zeros. If someone can show us how a LOP is not possible please do so. We are all very anxious and interested.

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Look, ANY yes ANY removal, deletion, or whatever that removes the three zeros is a LOP and very bad for us - it just reduced the potential value of 1 Dinar by 1,000 - not to our advantage. Although an RV at 75 cents makes more sense and would be fantastic for us, we can't ignore the constant press about the three zeros. If someone can show us how a LOP is not possible please do so. We are all very anxious and interested.

Unless they are referring to removing the zeros from the .00087 rate which would bring us to .87 which would make 1 dinar worth $1.17 (off the top of my head). Stay positive until it's done.

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LOP won't happen. Their not gonna screw themselve outta the potential of the money everyone in government is holding. Inflation is not high enough to justify . And as far as the argument that iraq can't afford to pay out without a LOP, they won't have to. the u.s. Is gonna use the dinar we cash in to buy oil from them. So iraq won't pay a dime

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the removal of the zero's reduces the amount of dinar it costs to buy something, that's all. example: loaf of bread = 1,000 iqd now, remove the three zero's and a loaf of bread now costs 1 iqd. it simplifies the way people do business by not having to have 100,000 dinar to buy 100 dinars worth of goods/services. they are going to "de-dollarize" their currency. because a loaf of bread really costs $1. USD, it takes 1,000 IQD to buy it. they are going to make their dinar worth as much and probably way more than the dollar. they want the dollar out of their market place. this is not a LOP. this is REALLY, REALLY, good for US!

they are going to introduce a new system that, for a while, will exist side by side. in other words, for a while, until all the old currency circulates back to the cbi, 1 dinar of the new currency will be worth 1000 dinar of the old currency. soon, there will only be the revalued currency at whatever rate it comes out as.

does that make sense?

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Unless they are referring to removing the zeros from the .00087 rate which would bring us to .87 which would make 1 dinar worth $1.17 (off the top of my head). Stay positive until it's done.

No. kevnutz,the exchange rate is stated in DOLLARS, so removing deleting the zeroes from the exchange rate of .00087 would make one dinar worth $.87. Regardless, if this is this law will do, all of our investments just increase 1000 fold. That's a 100,000% ROI and one hell of a capital gain! Let's see a fund manager match that. and that's just a re-value to $.87.

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the removal of the zero's reduces the amount of dinar it costs to buy something, that's all. example: loaf of bread = 1,000 iqd now, remove the three zero's and a loaf of bread now costs 1 iqd. it simplifies the way people do business by not having to have 100,000 dinar to buy 100 dinars worth of goods/services. they are going to "de-dollarize" their currency. because a loaf of bread really costs $1. USD, it takes 1,000 IQD to buy it. they are going to make their dinar worth as much and probably way more than the dollar. they want the dollar out of their market place. this is not a LOP. this is REALLY, REALLY, good for US!

they are going to introduce a new system that, for a while, will exist side by side. in other words, for a while, until all the old currency circulates back to the cbi, 1 dinar of the new currency will be worth 1000 dinar of the old currency. soon, there will only be the revalued currency at whatever rate it comes out as.

does that make sense?

Your first paragraph makes a lot of sense. You had me up to the point where you said that 1 dinar of the new currency will be worth 1000 of the old currency. THAT'S THE EXACT DEFINITION OF THE LOP,...the value of the dinar will go up 1000 times, but you now have 1/1000th of your previous holding in dinars. It's like a reverse split. Overall value of your dinars doesn't change.

On the other hand, the RV we are all hoping for is just a revaluation (or should I say an increased valuation) of the dinars we currently have. To say that there is an "old" and "new" currency, is not exactly right. Yes, there is "new" currency, in that the CBI will be introducing denominations less than the currently smallest 50 IQD note. They have to. How else are you gonna buy that $1 loaf of bread with nothing smaller than a bill worth $50. But that's it. They're just smaller denominations, necessitated by the fact that currency is worth 1000 times more.

In a straight RV, our 25K bills will be exchangeable for 25,000 dinars in the smaller denominations, at whatever the new exchange rate is.

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I totally agree with this....the removal of the zeros is a very good thing for us...NOT A LOP!!! I dont believe for a second that they will reval at .87 either! They want their currency to etiher equal, or exceed the value of the dollar due to their projections of highly increased oil productions for the rest of this year...and years to come. They are in this to do many things, the first of which is to make more money, pay of outstanding debt, attract investment, etc..... It would not really make sense to place a value on the dinar that is less than the USD, if nothing else, I believe with everything in me that we will see ...and are seeing the zeros gone...and a rate not under 1:1! But, I truely think that they , with their resources in high demand will go alittle farther than just a buck!!! Though they dont want to jump too high, it seems plausable to see it somewhere in the neighborhood of 1.25-2.00. Just my opinion obtained from looking at many different FACTS..IE: Crude prices, expected production increase, etc...all of which are fact..as stated..not speculation!! Just one more little tid-bit in requards to a time frame, and this may or maynot hold true...but if you look at the history of previous revals, and other adjustments made to the dinar....since 1985...everytime something has been done, it has always been in the month of April, and always been on the 28th, 29th, or the 30th! Exept for two times when it happened in Sept. I believe! May not mean anything, but as we all know....History do have a way of repeating itself!!! Just some "food for thought"! Warm Wishes and Gods Blessings to All!!! :D

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Unfortunately, this LOP crap does increase the buying power of the dinar, but not in the way they are wanting, IMHO.

If today an ounce of gold costs roughly 1.5 mil dinar, then post LOP 15,000 dinar will do they same thing. Seems like less dinar for the same thing means more power, right? Not really....

The only problem here is that you NO LONGER have 1.5 mil dinars on hand, you still only have enough to purchase that one ounce. If you were to purchase that gold pre LOP for 1.5 mil, then sell it post LOP and get 15,000 dinar, nothing happened.

You can still only buy the same things with the the amount of new dinar as with the old dinar. Technically speaking, the power of the dinar itself was increased, but the amount of dinar available was reduced counteracting the entire process.

I could see a ME country doing this to screw other people, but NOT themselves.

Remember, these guys had dinar worth 3000 times more than what it is worth now, only to have it stripped to nothing overnight. Why would they NOT RV at some decent rate to get what they lost back?

Edited by Rome M
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Look, ANY yes ANY removal, deletion, or whatever that removes the three zeros is a LOP and very bad for us - it just reduced the potential value of 1 Dinar by 1,000 - not to our advantage. Although an RV at 75 cents makes more sense and would be fantastic for us, we can't ignore the constant press about the three zeros. If someone can show us how a LOP is not possible please do so. We are all very anxious and interested.

Thank you for the info! And I completely agree, if someone can show us how a LOP is not possible please please do so!!

No. kevnutz,the exchange rate is stated in DOLLARS, so removing deleting the zeroes from the exchange rate of .00087 would make one dinar worth $.87. Regardless, if this is this law will do, all of our investments just increase 1000 fold. That's a 100,000% ROI and one hell of a capital gain! Let's see a fund manager match that. and that's just a re-value to $.87.

GO RV!!

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Look, ANY yes ANY removal, deletion, or whatever that removes the three zeros is a LOP and very bad for us - it just reduced the potential value of 1 Dinar by 1,000 - not to our advantage. Although an RV at 75 cents makes more sense and would be fantastic for us, we can't ignore the constant press about the three zeros. If someone can show us how a LOP is not possible please do so. We are all very anxious and interested.

I know what you mean bro.....I wish there was something that proves a LOP is not possible but of course as it stands there is nothing to that degree....

Remember, these guys had dinar worth 3000 times more than what it is worth now, only to have it stripped to nothing overnight. Why would they NOT RV at some decent rate to get what they lost back?

They can......immediately by a LOP and RV back to previous rates....(unfortunately) if that is done prices are adjusted in country and the purchasing power does increase dramatically......because what they could previously buy for a 1000k note, they can now purchase for a 1 dinar note....(post lop) I hate this idea....but its the one that makes most sense at this point.....unless they can somehow get the citizens to deposit all their physical notes into the banks and turn it electronic.....

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You know my dad use to say "if you were born a nickle there`s no way you will ever die a dime" . It was his way of saying it is what it is. I have been following these post for 2 years trying to learn what I could. And I have come to think, like keep that there isnt really any other choice for iraq but to lop. Its plain horse sense. Look think about it. We purchased cheap money. Why is it cheap well cause we made it cheap by placing sanctions on it. Where at one time a iraqi could buy a loaf of bread for a dinar . The world community now says that loaf of bread is 1000 dinar. So they had to print money that reflected that change. Now that those sanctions have lifted they are going to undo what the world community did. Return it back to normal. With that being said do you really think that the Iraqi gov is going to say " Hey take that 1000 dinar bill that we lop`ed to 1 dinar and go buy a 1000 loves a bread with it. DONT THINK SO. or better yet some of the post I have read where its just suppose to happen incountry localy. I play that one back in my head also. The Iraqi gov saying " Ok your 1000 dinars that we turned into 1 dinar will buy 1 loaf of bread but the americans 1000 dinars that we also turned in to 1 dinar will buy 1000 loafs a bread. Again DONT THINK SO . Hopfuly it will rv when it lops in which case we make money. But if your smart just hang on to it cause in time when Iraqi is truly back on its feet and prospering in the years to come that 1 iraqi dinar may well be worth 9 or 10 dollors. Even if its 10 years down the line thats a he!! of a return for money spent.

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You know my dad use to say "if you were born a nickle there`s no way you will ever die a dime" . It was his way of saying it is what it is. I have been following these post for 2 years trying to learn what I could. And I have come to think, like keep that there isnt really any other choice for iraq but to lop. Its plain horse sense. Look think about it. We purchased cheap money. Why is it cheap well cause we made it cheap by placing sanctions on it. Where at one time a iraqi could buy a loaf of bread for a dinar . The world community now says that loaf of bread is 1000 dinar. So they had to print money that reflected that change. Now that those sanctions have lifted they are going to undo what the world community did. Return it back to normal. With that being said do you really think that the Iraqi gov is going to say " Hey take that 1000 dinar bill that we lop`ed to 1 dinar and go buy a 1000 loves a bread with it. DONT THINK SO. or better yet some of the post I have read where its just suppose to happen incountry localy. I play that one back in my head also. The Iraqi gov saying " Ok your 1000 dinars that we turned into 1 dinar will buy 1 loaf of bread but the americans 1000 dinars that we also turned in to 1 dinar will buy 1000 loafs a bread. Again DONT THINK SO . Hopfuly it will rv when it lops in which case we make money. But if your smart just hang on to it cause in time when Iraqi is truly back on its feet and prospering in the years to come that 1 iraqi dinar may well be worth 9 or 10 dollors. Even if its 10 years down the line thats a he!! of a return for money spent.

As more and more time pass I am beginning to feel that your summation is bang on.....I so want to be wrong but...."if you were born a nickle there`s no way you will ever die a dime". Your dad was a very wise man

Be blessed

Joe

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