NO LOP NO LOP NO LOP! This should put it to rest!

[rnldtippitt]

I thought about the math today. Take 28 trillion, and remove 3 zeros - What's left? Not even enough to pay debts - Set aside multiplying it by .00085xxx. It simply cant happen, and what a waste it would be to print small denoms that wouldn't even buy you your neighbors used toe nails.

[MarchMadnes]

Great debate everyone both sides have good points! I know everyone here would be happy with a nice RV, I guess it remains to be seen the final answer! Thanks everyone!

[Star Ship]

Seems to me that it is confirmation of a lop! If a new 10 dinar note is about to be issued and it has the same value as the current 10,000 dinar note, no matter how you slice it, THAT IS A LOP! They may revalue the currency at the same time but if the new notes (without the zeros) are worth the same as the old notes (with the zeros), that is a lop. If this article is true, there will clearly be a lop. I agree with you that it should put the lop issue to rest.

The below explanation was copied from another site - just posting it for an F/Y/I. If it has been posted before please forgive my redundancy.

Lift the 3 zeros from the exchange rate!! Not the bills themselves..... Iraq IS REMOVING notes with the 3 ZEROS.... but... do NOT get it confused with the articles that mean DIFFERENT!

TODAY ~ $1 USD = .00086 IQD.....

Remove 3 zeros from that.... you get

AFTER ~ $1 USD = .86 IQD.....

IFFF.... that were ALL..... Making the Dinar worth 1,000 times more.....

But.... there is MORE!!

Once you bring Iraq back to the value it was PRE war... (Remove the 3 zeros) then you have REMOVED THE 3 ZEROS FROM THE EXCHANGE RATE....

A N D..... also made it instead of ONLY $0.86 per dinar..... you make it $3.22...... which is what Shibibi said he want's to do.... (Just like we did with Kuwait)

Hope this helps...

If you want the exact link send me a private post.

[Networth]

Not if they give you 1000 ten dinar notes for your 10,000 dinar note in exchange.

The CBI has repeatedly said they intend to denominate the currency by issuing new, lower denomination notes. An existing 10,000 dinar note will be exchangable for the new 10 dinar note. Both notes will be acceptable currency with the SAME purchasing power. You can wish it away all you want but it won't make it so. There are going to be a lot of disappointed people if they continue to try to defy logic and simply deny the information they've actually been told.

[MarchMadnes]

Here is a couple theories that makes sense to me! Your opinions welcome!

"Lifting the Zero's" or "Raising the Zero's" simply means the CBI will create currency using smaller numbers similar to what we have here in the USA.

It is presumed the CBI will ask Iraqi's to cash in their existing large note bills which will be exchanged for smaller currency notes such as a 10, 20, 50 etc.

Now..the math...

In the USA the US dollar will always be worth $1 however foreign currencies have exchange rates.

If the dinar revalues tomorrow at $0.86 up to $4.00 that is the exchange rate either on the 25,000 note you have now..or a new currency note with 25 they may produce or may have already produce but waiting to put into circulation.

Currently the exchange rate of the dinar is $0.00086 to the dollar.

For example a typical Iraqi worker brings home the 1,755,000 per month in salary which is the equivalent of $1500/mo USD at the current exchange rate. (1,755,000 dinars x $0.00086 = $1,500 USD)

Now lets say the CBI dropped the zeros without revaluing the exchange rate (theory behind the dreaded LOP). The 25000 note at the same exchange rate of $0.00086 would mean the 1,755,000 in dinar earnings he brought home yesterday would only be worth $1.50 not $1500.

This would send Iraq into a tailspin and an economic collapse.

It is anticipated the revalue and the dropping of the zero's will occur simultaneously to avoid the situation described above.

If the CBI revalues its currency at an exchange rate of $0.86 upwards to $4.00 USD the Iraqi workers earnings from yesterday now becomes worth $1,500,000 to $7,000,000.

Another theory out there believes the removal of the zero's would be from the exchange rate itself. Meaning the currency exchange rate of $0.00086 would then become $0.86. Therefore the 25000 dinar note today would equate to $21.50 but after the zero's are removed the 25000 note would equate to $21,500. In turn the CBI would call in large notes and insert small notes into circulation.

There are going to be some negative theories out there as well however I believe the above theories make sense.

[umbertino]

Quote

It talks about the raising of the three zeros as new currency being issued, and this new currency does not have the three zeros on them... hence raising the three zeros.

End Quote

Then why your title NO LOP NO LOP NO LOP???? How would you call this??'?

[MarchMadnes]

Ok LOPPERS show me how this will benefit the world! Not just Iraq but all govts involved and everyone else! My guess is this will crush everyone and especially the govts that have helped them! Not stating it as fact just my opinion with all monies shelled out! As I stated previously you think the govts involved will allow this! I am shaky on this subject due to that considering our country paid there war debt to Kuwait and if true that we hold 3.9 trillion that may equate to half what they owe us back with a LOP! It just doesnt make any sense how this could happen! This will screw up many plans for alot of people including the govt I would think! Please give your input not just how this benefits Iraq but govts and all of us if you can?

[umbertino]

Quote

raising the 3 zeros is how a lop?

End Quote

What you mean "raising the 3 zeros is how a lop?" ? That's called a lop.

Any LOPsters wanna put their money where their mouths are????

I will make a wager with anyone willing and it goes like this...

If the the IQD is a straight LOP or a LOP/RV I will give you 50% of my measley pre tax profits.

If their is no LOP and only a straight RV/RI, you give me 50% of your enormous pre tax profits.

I am so sure that a LOP is NOT AN OPTION for Iraq under their current economic conditions that I am willing to forego the "you're wrong, I'm right" BS, put my ego on the shelf and call a spade a spade. Any takers please feel free to leave a message on my profile page and we can work out the arrangements.

Peace

Hey......I'd be more than happy if that was the case (no lop) .Obviously.........The truth of the matter is that we get more or less cryptic messages all the time ...... So the problem is that we can't be sure of plain anything when it comes to the freaking IQD and how it 's going to develop........I can only hope

[cwhthpne]

http://www.xe.com/currency/iqd-iraqi-dinar

Notice: IQD may be redenominated:

In 2010, the Central Bank of Iraq announced their plans to redenominate the Iraqi Dinar to ease cash transactions. The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars. Although the announcement stated that the change would take place by the end of 2010, there has been no redenomination as of January 2011 and no further announcements have been made. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." For more information about the redenomination, read "Iraq Planning Currency Redenomination."

I know i'm new and you all may have seen this b4. bash me if you want. I hope i'm wrong but its obvious what they are saying. Does any one know if this is just mis information?

[Networth]

The below explanation was copied from another site - just posting it for an F/Y/I. If it has been posted before please forgive my redundancy.

Lift the 3 zeros from the exchange rate!! Not the bills themselves..... Iraq IS REMOVING notes with the 3 ZEROS.... but... do NOT get it confused with the articles that mean DIFFERENT!

TODAY ~ $1 USD = .00086 IQD.....

Remove 3 zeros from that.... you get

AFTER ~ $1 USD = .86 IQD.....

IFFF.... that were ALL..... Making the Dinar worth 1,000 times more.....

But.... there is MORE!!

Once you bring Iraq back to the value it was PRE war... (Remove the 3 zeros) then you have REMOVED THE 3 ZEROS FROM THE EXCHANGE RATE....

A N D..... also made it instead of ONLY $0.86 per dinar..... you make it $3.22...... which is what Shibibi said he want's to do.... (Just like we did with Kuwait)

Hope this helps...

If you want the exact link send me a private post.

Look, I know everyone WANTS "lifting the 3 zeroes" to mean lifting them in the exchange rate. But it doesn't. The CBI has NEVER said that. Others have simply inferred, implied or interpreted that action. Despite what other people have said, that is not what the CBI said. They have specifically said they intend to re-denominate the currency by issuing new, smaller denomination bills. Those bills will have the same purchasing power as the the higher bill with the 3 zeros on it. For example, the new 25 dinar note will have the same value as the current 25,000 dinar note. You can choose not to believe them. They are not particularly trustworthy. But you cannot deny what they have said. And unless we read information from them (not editorializing from a third party) that states otherwise, the appropriate assumption to make is that their intentions have not changed.

[keepmwlknfny]

The below explanation was copied from another site - just posting it for an F/Y/I. If it has been posted before please forgive my redundancy.

Lift the 3 zeros from the exchange rate!! Not the bills themselves..... Iraq IS REMOVING notes with the 3 ZEROS.... but... do NOT get it confused with the articles that mean DIFFERENT!

TODAY ~ $1 USD = .00086 IQD.....

Remove 3 zeros from that.... you get

AFTER ~ $1 USD = .86 IQD.....

IFFF.... that were ALL..... Making the Dinar worth 1,000 times more.....

But.... there is MORE!!

Once you bring Iraq back to the value it was PRE war... (Remove the 3 zeros) then you have REMOVED THE 3 ZEROS FROM THE EXCHANGE RATE....

A N D..... also made it instead of ONLY $0.86 per dinar..... you make it $3.22...... which is what Shibibi said he want's to do.... (Just like we did with Kuwait)

Hope this helps...

If you want the exact link send me a private post.

That would be the case except they have NEVER referred to the exchange rate....only removing the 000s from the currency itself....two different things.....

Ok LOPPERS show me how this will benefit the world! Not just Iraq but all govts involved and everyone else! My guess is this will crush everyone and especially the govts that have helped them! Not stating it as fact just my opinion with all monies shelled out! As I stated previously you think the govts involved will allow this! I am shaky on this subject due to that considering our country paid there war debt to Kuwait and if true that we hold 3.9 trillion that may equate to half what they owe us back with a LOP! It just doesnt make any sense how this could happen! This will screw up many plans for alot of people including the govt I would think! Please give your input not just how this benefits Iraq but govts and all of us if you can?

Any govts involved with helping setting up Iraq are probly getting deals on oil....being able to set up shop to pump oil just as the US and China are....thats a more stable thing to hold and guaranteed return.....we still benefit from a lop and a rate increase back to the 3 dollar range....doesnt make us all millionares but still puts money in your pocket so how can you be upset with that?

[cwhthpne]

Bash if you want since im a newbie to this site, but i agree with keep. Everything i have found on my own seems to me to point to a lop. 25000dinar = 25 dinar.. i really hope this is wrong!

[YourIntelSux]

So what about all the Iraqis that are holding "000" notes in case of a LOP?

[truthful1]

Look, I know everyone WANTS "lifting the 3 zeroes" to mean lifting them in the exchange rate. But it doesn't. The CBI has NEVER said that. Others have simply inferred, implied or interpreted that action. Despite what other people have said, that is not what the CBI said. They have specifically said they intend to re-denominate the currency by issuing new, smaller denomination bills. Those bills will have the same purchasing power as the the higher bill with the 3 zeros on it. For example, the new 25 dinar note will have the same value as the current 25,000 dinar note. You can choose not to believe them. They are not particularly trustworthy. But you cannot deny what they have said. And unless we read information from them (not editorializing from a third party) that states otherwise, the appropriate assumption to make is that their intentions have not changed.

I am with you 99% on this. In the event Iraq was to rv, they would never tell us anyway. If there was a plan it would look disguised as this. Perfect confusion, but doing exacly what you plan, while leaving speculators speechless. So I am patiently waiting like everyone else and looking for to a conclusion.

[TFK]

Another possibility that is the worst of all. No Lop, No RV, just a call in on the current currency for replacement then once new currency handed out, they outlaw the old currency and it's worthless. What a nightmare that would be. All all get stuck holding toilet paper.

Excuse me. May I ask why you are here?

If another site brings back his "buzzkill" award, you'd win it every week!

Why don't you go on some other forum, preferably not a Dinar one, and bug a new group of people.

You are rather annoying. Sort of like a mosquito!

Edited April 19, 2011 by TFK

[truthful1]

Excuse me. May I ask why you are here?

If another site brings back his "buzzkill" award, you'd win it every week!

Why don't you go on some other forum, preferably not a Dinar one, and bug a new group of people.

You are rather annoying. Sort of like a mosquito!

the kool-aid stand is the next topic over. No buzzkill on this topic, hey where did you guys catch a buzz?

[TFK]

Bash if you want since im a newbie to this site, but i agree with keep. Everything i have found on my own seems to me to point to a lop. 25000dinar = 25 dinar.. i really hope this is wrong!

I'll buy your Dinar for cheap if you want!

[truthful1]

j/k on last post. Its a win-win. Everyone should feel positive about this investment. Either way the dinar will rise in value. No need to get personal about it.

Edited April 19, 2011 by truthful1

[skepticaldinar]

I see people want links for the op's news.Here is a similar piece from an Iraqi Television News Network from April 14th....

Iraq Central Bank ‘To remove 3 Zeroes from Dinar”

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

According to the report from Alsumaria TV, the re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.

A Central Bank’s advisor, Mothahhar Mohammed Saleh, said in a statement to the agency that the plan aims to reduce transactions costs and help people carry less money.

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 rate, he said.

In an earlier statement to Alsumaria News, he confirmed 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.

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”.

(Source: Alsumaria TV)

ap

[keepmwlknfny]

I see people want links for the op's news.Here is a similar piece from an Iraqi Television News Network from April 14th....

Iraq Central Bank ‘To remove 3 Zeroes from Dinar”

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

According to the report from Alsumaria TV, the re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.

A Central Bank’s advisor, Mothahhar Mohammed Saleh, said in a statement to the agency that the plan aims to reduce transactions costs and help people carry less money.

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 rate, he said.

In an earlier statement to Alsumaria News, he confirmed 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.

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”.

(Source: Alsumaria TV)

ap

It clearly states redenomination many times in this article....and many others....how many times do people need to see that word before they realize thats NOT the same as a straight up RV.....sheesh.....

[skepticaldinar]

It clearly states redenomination many times in this article....and many others....how many times do people need to see that word before they realize thats NOT the same as a straight up RV.....sheesh.....

Exactly! And so many are saying that Iraq is stating they want to increase buying power and if they drop three zeros and a 25k note becomes worth 25 then they haven't increased anything. Well I beg to differ.... These people don't exactly word things as you and I do. I don't think that this is talking about an Iraqi citizen's buying power at the local market(does any government really do anything like this for the people)they are talking about their international buying power being increased for imports. The Dinar would now be in line with the US Dollar and not just appear to be funny money to the rest of the world.How many of us would have bought into the Dinar at a 1 to 1 rate even if it were being said that it would be worth much more? I don't think too many would, as we would feel that it's value was already established and was not vastly undervalued,but actually strong(in a sense).

[snakes251]

The NEW currency is the lower denominations--the 100,20,10,5,1,1/2,1/4----------------------------------and has ABSOLUTELY nothing to do with lifting the 3 zeros---they have ALREADY been "lifted' (removed from circulation---at least most of them have)The remainder are mostly out of the country (mostly in the US),and will never make it back to Iraq-except electronically,where they will be used to buy oil. IMHO

OK, so will those of us who have larger denoms (i.e. 25K, 10K notes, etc.) be able to cash these in or no? Should I be looking at possibly exchanging these for lower denoms? I can never seem to get an answer on this...

[skepticaldinar]

OK, so will those of us who have larger denoms (i.e. 25K, 10K notes, etc.) be able to cash these in or no? Should I be looking at possibly exchanging these for lower denoms? I can never seem to get an answer on this...

Do you live in Iraq? If not, where are you going to exchange them?

[Prim]

It clearly states redenomination many times in this article....and many others....how many times do people need to see that word before they realize thats NOT the same as a straight up RV.....sheesh.....

sheesh lol, I haven't heard that one in a while.... Very clean Keepm, just like all your posts.

[Darin]

It clearly states redenomination many times in this article....and many others....how many times do people need to see that word before they realize thats NOT the same as a straight up RV.....sheesh.....

Yup.. That must be their intent, huh? ;:

And, if they were in reality going to re-value, they would clearly state that in numerous articles too, right?

Basically blasting to the world they were going to increase their value via exchange rate.. right?

Hmmm.. Shabs even said so himself in D.C. - if he knew, he could not Tell you...

So they're not going to lead many hints that this is their course of action.

And if anything, they may try to hint they do the opposite (Re-denom)

Articles contradict each other, mass confusion, sounds about right for a setting prior to an increase in value, right?

gotta look at it two ways... I know I lean more towards the RV side versus the opposite, but, I try to gain a perspective from both sides..

If they were likely to truly truly lop.. I think they may have done it by now.. right? I'm just thinking it would of been something they could of done w/ ease (especially if the new denoms are already printed & ready to go)