Iraqi Dinar Revaluation (Currently IQD 1,000 is worth around €0.60 and US$0.85 ... ~ Too many zeroes: iraq plans to change currency

[imgesing]

STOP WORRYING ABOUT A LOP. If you and I were the only holders of Dinars Iraq would screw us in a New York second. But if Uncle Sam is the major player, we're just along for the ride. It's been stated in print and prophesy that Iraq would soon become the worlds strongest nation (once again). What makes a nation powerful? Its MONEY, not arms. Without money you quickly run out of ammunition but with money you can buy all the weapons you need to protect your nation. For America to remain as strong as the "strongest nation in the world" America must capitalize big on this event. LOP's would only multiple the Dinars value by 4-5 times at best. America is greedy and so is Maliki. You can sleep confident tonight with the knowledge that we are dealing with major power brokers who play for high stakes - not peanuts. We're just small fry floating upstream with the big fish. Count on at least a par valuation ($1/Dinar) and more likely something in the stratosphere - maybe $3.75 TO $4.75 depending on how confident the GOI is about their near future. Don't forget, Iraq has Oil, Gas and Water. And it's sweet crude oil too - close to the surface and easy to refine. Talk about a literal goldmine. I started out as a cautions skeptic but after a year of research I'l feeling very confident in an unimaginable value - and on Monday no less. Plan on $3.00 and you'll be right in the ballpark.

Go RV on the 1st

As I have been saying the same. 100% agree. Yet it is so up to the proof and we all are unsure because that is the nature of the beast. Nay Sayers are also those who believe they are being realistic. I dont blame them. SOme say HEY be happy with 300% but they cant disprove the chance of this being big and much bigger. It might not but it might. We dont have long to see. SOON so soon...

[In Iraq]

If the plan was to lop. Why didn't they do it in 2003 when the new currency was put into place after the Hyper inflation occurred? A lop will not reduce the paper and is the equivalent of putting your finger over the zeros. Pointless. That 1K dinar note will never again be worth 1000 dollars with a lop. It would be better for everyone if they did nothing at all. Then it would at least have a chance of slowly revaluing.

In 2003 Iraq had no real control over their country (The War was going on). The United States had the reins completely even though we pretend it was not that way. I was over here when they got to vote democratically somewhat if you call it that, with their purple ink stained fingers. They were practically giving the new dinars away when they sold them to you. All they were worried about at the time was surviving day to day. And the 3 main factions or tribes over here were still fighting, killing and arguing with each other. There was no governmental control except for the puppets we had in place. And now what they have is a bunch of criminals in charge instead of just the one (Saddam). This country has a ways to go to be stable. I am still here and I see it.

[onerighthand]

So have we decided what is guna happen yet?

[skepticaldinar]

In 2003 Iraq had no real control over their country (The War was going on). The United States had the reins completely even though we pretend it was not that way. I was over here when they got to vote democratically somewhat if you call it that, with their purple ink stained fingers. They were practically giving the new dinars away when they sold them to you. All they were worried about at the time was surviving day to day. And the 3 main factions or tribes over here were still fighting, killing and arguing with each other. There was no governmental control except for the puppets we had in place. And now what they have is a bunch of criminals in charge instead of just the one (Saddam). This country has a ways to go to be stable. I am still here and I see it.

+1...Thank you for pointing out what many know and oh so many need to be reminded of. This is not some magical happening that has no rhyme nor reason to it.We all want to be rich,but there are too many things that need to be addressed in order for "the dream" to take place.Sure they could RV tomorrow and fall right back to square one soon thereafter.It would take them 20+ years to recover from such a bad/hasty decision.When things are in order,then we will see just where our investment stands.It seems that so many here are counting on Iraq to be the global hoar here.A nice quick shot of economic heroin.And Iraq will be spent directly after and be cut from the knees,left to recover all over again all by it's lonesome.This is why the "realists" say that if something is upon us,it is a redenomination.An rv just doesn't make sense yet.

[ocmba]

I really have a problem with a country skirting the issue of hiding their wealth to the rest of the world. If these guys are truly on the road to producing 16 million barrels of oil ( and from I have heard they are refining it in iraq and then selling gasoline at much higher rate to other countries). Does anybody have any idea how much wealth they pull in from the rest of the world? I have no calculations but I can bet that it is a tremendous amount. So they would LOP their currency to keep outsiders (infidels) from profiting (albeit wildly) from their success is just below the belt. IMO what they came into the iraq war is what they will soon have again if they don't become honorable men.

[Hell froze over]

April 27, 2011

Too many zeroes: Iraq plans to change currency

The Iraqi government plans to chop three zeroes off the national currency. It should make transactions easier and enhance the exchange rate. But local economists are not sure the country is ready.

Recently the Iraqi government announced that they were close to completing plans for re-denomination. Three zeroes will be removed from Iraq’s currency, the Iraqi dinar or IQD, and old banknotes will gradually be phased out. For example, this would make an IQD 1,000 note into an IQD 1 note. Currently IQD 1,000 is worth around €0.60 and US$0.85. if they are dead set on it lop take 2 zeros off and the math works for everyone pretty good there is no law stating one must lp 3 because lop is not even a word or function its just sh@t someone made up. because 3 zeros for us does not fly and will create an " invasion" much like they did to Kuwait . For we are the God parents to the new Iraq. I can see the investors running from them now lop

Logically speaking, re-denomination does not change the value of a currency nor should it cause inflation. It should make currency easier to use and increase its credibility. Re-denomination may also be a matter of political expedience.

For example, when Turkey announced a re-denomination in 2005, the country’s central bank explained that extra zeroes on their banknotes meant “problems in accounting and statistical records, data processing software and payment systems”, adding that the move to cut them was “psychologically and technically essential”.

Re-denomination can usually only be undertaken once inflation is under control and over the last few years, inflation in Iraq has dropped from over 30 percent to single digits. Nonetheless Iraqi opinions about the planned change remain divided.

Qasim Jabbar, an economic researcher, is concerned about the psychological impact the removal of three zeroes will have on locals. Additionally Jabbar does not think the time is right. “We must create a stable environment in political, economic and legal terms, in order to control the conditions during the transition period to a new currency,” he explained. “This is necessary in order to ensure that the transition is not manipulated by government departments and in society in general, where there is rampant corruption.”

Jabbar was also worried about the absence of a central authority that was truly capable of controlling the Iraqi currency market. He believed that the psychological problem will be people “focusing on the change in numbers, rather than in real value”. By rights, re-denomination should not impact the actual value of a currency; it should still buy the same goods as it did before for the same prices. “But a person with IQD 10 million will feel they have lost a fortune when the zeros are removed,” he noted.

Re-denomination is nothing new. “Many countries, such as Turkey and Germany, have also taken this step,” another Iraqi economist Kareem al-Halfi said. “But this doesn’t mean that the Iraqi experience will be like that, of those nations. Iraq has serious structural problems and high rates of unemployment. These problems cannot be solved in the short term and we need to create the economic conditions necessary to allow re-denomination.”

According to Mothahhar Mohammed Saleh, an adviser to the Central Bank of Iraq, which was established in 2004 to administer monetary policy in Iraq, the impact of re-denomination could have both positive and negative effects.

Firstly, a reduction in the large amount of currency in circulation – there is an estimated IQD 27 trillion in circulation – could have a negative impact on everyday transactions, he said. For example, one previously recorded impact in other countries has included the rounding up (or down) of prices due to re-denomination.

On the other hand, the currency will become far easier to use. “In the wholesale sector, goods are being traded using US dollars.” This process is known as “dollarization” and occurs when a country uses a foreign currency, in parallel to or instead of, its own currency because it is seen as more stable and subject to fiscal disciplined.

Anyway, according to Saleh, “this change will not be introduced hastily. It will only be introduced when inflation is under control - and after parliament and the Iraqi cabinet has gone through legislation thoroughly. They will then decide how the [re-denomination] law will be implemented.”

As Saleh said, “the Central Bank is proceeding cautiously in this matter because it realizes re-denomination could cause economic problems if implemented in haste.”

The IQD was first introduced in the early 1930s and was pegged first to the British pound, then the US dollar. After Iraq’s invasion of Kuwait, under the leadership of Saddam Hussein, strict economic sanctions saw the value of the IQD drop. By the mid-1990s, IQD 3,000 was worth around one US dollar.

In order to make purchases in Iraq, huge amounts of cash were needed. An IQD 25 note was the highest denomination available so to make life easier, the government introduced an IQD 250 note. After the American-led invasion in 2003, the Iraqi government issued even more notes with higher values. IQD 25,000 notes were now the highest value.

The average person on the Iraqi street said they would be happy to see the IQD stabilize further. But they are also afraid that the lopping off of zeroes will have a negative impact.

Baghdad merchant Abdul Amir trades in food products and when he deals with wholesalers he prefers to use US dollars because then he doesn’t have to carry as much paper around. “Large transactions require millions of Iraqi dinar. If I use foreign currency, I don’t need as much,” he explained. “But when it comes to daily transactions, I don’t mind using the dinar.”

As to his thoughts on the planned re-denomination, Amir had only questions: “Would there be a loss expected? Would the market be controlled to guarantee its stability?” he asked.

Government employee Sabah Daoud raised further questions: “Would the Iraqi dinar rise against the dollar? Would my salary be worth the same, with and without the zeroes?” He wanted to see more research on the impact of such a step on the average Iraqi citizen.

Currently the Iraqi government seems set on losing the extra zeroes, those digits that have become such a burden on the dinar. But the road toward this goal is a difficult one. And it is just one stop along an even longer road, the one leading toward prosperity and steady, stable economic growth for Iraq.

Niqash: briefings from inside and across Iraq ~ http://www.niqash.or...&id=2826〈=0

[cashin]

I really have a problem with a country skirting the issue of hiding their wealth to the rest of the world. If these guys are truly on the road to producing 16 million barrels of oil ( and from I have heard they are refining it in iraq and then selling gasoline at much higher rate to other countries). Does anybody have any idea how much wealth they pull in from the rest of the world? I have no calculations but I can bet that it is a tremendous amount. So they would LOP their currency to keep outsiders (infidels) from profiting (albeit wildly) from their success is just below the belt. IMO what they came into the iraq war is what they will soon have again if they don't become honorable men.

[Hell froze over]

And why is anyone happy about this????

I keep hearing, don't worry, your notes will still be worth the same yet what isn't being mentioned and ignored is the fact that this is like losing shares in a company... Your 25,000 shares that could have been RV'd at a good rate is now only going to be RV'd at 25 shares instead!

In other words, if the RV happened today with no dropping of zero's at 1 dollar per IQD, you would have that $25,000 dollars. From what I am hearing with the dropping of zeroes, is that they are taking away the possibility of 25,000 dollars and giving us 25 dollars instead!!!!!

WOW !! thats going to really suck when they do that to you.maybe you can hold onto it for a couple of years and double your $$$$ that would be so RAD !

Edited May 1, 2011 by Hell froze over

[cashin]

i agree, i think they are going to REDOM (LOP) for sole purpose of avoiding paying out on the true value of their Dinar,

Im from the UK and we use sterling (the pound) This is what it says on the side of every note we print.

"BANK OF ENGLAND."

I promise to pay the bearer on demand the sum of ? pound.

What It doesnt say is, oh by the way i may wish to pay you 0.005p for it.

Has anyone actually found out if its legal for a country to LOP zeros off and then to Revalue to a much higher rate defrauding everyone. How can Iraq in one breath say we are removing the zeros off our currency which devalues the money only to in the next breath say HEY LOOK our currency is really worth 3 dollars a dinar.

If they do its a FRAUD.

[dinarck]

i agree, i think they are going to REDOM (LOP) for sole purpose of avoiding paying out on the true value of their Dinar,

Im from the UK and we use sterling (the pound) This is what it says on the side of every note we print.

"BANK OF ENGLAND."

I promise to pay the bearer on demand the sum of ? pound.

What It doesnt say is, oh by the way i may wish to pay you 0.005p for it.

Has anyone actually found out if its legal for a country to LOP zeros off and then to Revalue to a much higher rate defrauding everyone. How can Iraq in one breath say we are removing the zeros off our currency which devalues the money only to in the next breath say HEY LOOK our currency is really worth 3 dollars a dinar.

If they do its a FRAUD.

It may seem like fraud to some but in reality it's not. Just because a note says 25,000 on it's face doesn't mean that they have to give 25,000 USD for it. Zimbabwe had notes as high as 50 trillion. Trust me they never gave 50 trillion USD for them. Plus how can it be fraud when no one loses money?

[cashin]

It may seem like fraud to some but in reality it's not. Just because a note says 25,000 on it's face doesn't mean that they have to give 25,000 USD for it. Zimbabwe had notes as high as 50 trillion. Trust me they never gave 50 trillion USD for them. Plus how can it be fraud when no one loses money?

[mordiaky]

No wonder there is no RV yet, you guys can't even agree on whats going to happen from all the news out there, what makes you think the GOI can agree on things, they might be having this same argument at their meetings. I can see it now LOL "well shabibi says removeing the 0's so do we lop it?" another guy " No he means taking the larger bills in" and another guy " your both wrong, they mean from the exhange rate" another guy " I guys my name is Okie!"

[cashin]

hi

well as i pointed out the pound clearly states the the bank of England garrentee to pay the bearer to the value of what note you have in your hand.

What im saying is that Iraq in 1 breath is saying we devalue our currency and then 5 mins later they say oh look our currency is now worth this amount.

The fraud is not that you are getting back more money than you paid its the fact you are not getting what it is truelly worth. If there dinar is going to be worth 3 dollars for example then the 25,000 dinar note you have in your hand should be worth 75,000 dollars, thats the fraud.

STOP WORRYING ABOUT A LOP. If you and I were the only holders of Dinars Iraq would screw us in a New York second. But if Uncle Sam is the major player, we're just along for the ride. It's been stated in print and prophesy that Iraq would soon become the worlds strongest nation (once again). What makes a nation powerful? Its MONEY, not arms. Without money you quickly run out of ammunition but with money you can buy all the weapons you need to protect your nation. For America to remain as strong as the "strongest nation in the world" America must capitalize big on this event. LOP's would only multiple the Dinars value by 4-5 times at best. America is greedy and so is Maliki. You can sleep confident tonight with the knowledge that we are dealing with major power brokers who play for high stakes - not peanuts. We're just small fry floating upstream with the big fish. Count on at least a par valuation ($1/Dinar) and more likely something in the stratosphere - maybe $3.75 TO $4.75 depending on how confident the GOI is about their near future. Don't forget, Iraq has Oil, Gas and Water. And it's sweet crude oil too - close to the surface and easy to refine. Talk about a literal goldmine. I started out as a cautions skeptic but after a year of research I'l feeling very confident in an unimaginable value - and on Monday no less. Plan on $3.00 and you'll be right in the ballpark.

Go RV on the 1st

[randalln]

Why dose everybody always bring up turkey the only thing in turkey is a mountain that might have Nowa's ark on it and the home town of St Nicholas has nothing to do with Iraq

[onerighthand]

I believe your 25 K note will be worth 1000 25 notes. Hence losing the ZERO's.

We shall see.... Be well.

EXACTLY! Like getting 100 one dollar bills for a single one hundred dollar bill.

[Hell froze over]

i agree, i think they are going to REDOM (LOP) for sole purpose of avoiding paying out on the true value of their Dinar,

Im from the UK and we use sterling (the pound) This is what it says on the side of every note we print.

"BANK OF ENGLAND."

I promise to pay the bearer on demand the sum of ? pound.

What It doesnt say is, oh by the way i may wish to pay you 0.005p for it.

Has anyone actually found out if its legal for a country to LOP zeros off and then to Revalue to a much higher rate defrauding everyone. How can Iraq in one breath say we are removing the zeros off our currency which devalues the money only to in the next breath say HEY LOOK our currency is really worth 3 dollars a dinar.

If they do its a FRAUD.

Iraq is still an occupied country by the United States .I would bet that the former administration would say that is not in the plan. To lop for everyone but the U.S. and G.B. would be fair since we did make it possible for them.

[dinarck]

hi

well as i pointed out the pound clearly states the the bank of England garrentee to pay the bearer to the value of what note you have in your hand.

What im saying is that Iraq in 1 breath is saying we devalue our currency and then 5 mins later they say oh look our currency is now worth this amount.

The fraud is not that you are getting back more money than you paid its the fact you are not getting what it is truelly worth. If there dinar is going to be worth 3 dollars for example then the 25,000 dinar note you have in your hand should be worth 75,000 dollars, thats the fraud.

Yeah but think about it. What you are saying is Iraq can have a redenomination but they cannot raise their currency value any time afterwards because that would be fraud to the people who bought the currency in the past. Na. As long as you can exchange the currency for the stated exchange rate then there is no fraud.

[skepticaldinar]

i agree, i think they are going to REDOM (LOP) for sole purpose of avoiding paying out on the true value of their Dinar,

Im from the UK and we use sterling (the pound) This is what it says on the side of every note we print.

"BANK OF ENGLAND."

I promise to pay the bearer on demand the sum of ? pound.

What It doesnt say is, oh by the way i may wish to pay you 0.005p for it.

Has anyone actually found out if its legal for a country to LOP zeros off and then to Revalue to a much higher rate defrauding everyone. How can Iraq in one breath say we are removing the zeros off our currency which devalues the money only to in the next breath say HEY LOOK our currency is really worth 3 dollars a dinar.

If they do its a FRAUD.

Legal? You might be better suited to spend the time that you planned on browsing this forum today.browsing the web instead.Do a little research... It is no way fraudulent nor it is intended to be.

Edited May 1, 2011 by skepticaldinar