CBI decides to restructure the Iraqi currency

[Hesalwayswithus]

I can't wait to look at an Iraq news website and see the exchange rate at close to a dollar!! I'm tired of seeing 1170.... Hope it happens soon!

[AZ Native]

WE all want to see that one.

[DinarChiTown]

This should be a wake up call to all.....the plan of redenomination is real....and they are trying to get it passed.....I know you all along with myself are going to be upset that we arent going to make what we thought we would initially.....this plan out SUCKS!!!

Who will be the first guru to spin this to meaning its gonna RV this month??

You really need to read up on redenominations.....it happens all the time....just open your eyes a little....it can happen....and no one is going to cast Iraq out of the global economy for it....they have a serious issue with their money supply being inflated and this is how they plan on fixing it....

Keep, do you think there's a possibility that the RD would be "in-country" only? Meaning they would honor what ever rate they come out with to outside Dinar holders? Grasping at straws here...

[Nelg]

It seems to me, if the 3 zeros are lifted from the IQD, then .00086 to 1 USD would change to .86 to 1 USD. If an Iraqi was being paid 234,000,000 IQD a year ($20,000 USD) before RV, then post RV he would be paid 23,400 IQD to equal $20,000 USD (or something similar). Today, both currencies are used, but because of the "fixed rate" of the Dinar, it takes a thousand times more Dinar to buy what a Dollar costs. (Hence, the 5,000 and 10,000 and 25,000 Dinar notes, instead of 1 Dinar, 5 Dinar, 10 Dinar, 20 Dinar, 50 Dinar and 100 Dinar. Even 1,000 Dinar were not needed with an abundance of 1 Dollar bills...)

Isn't that how the IQD would adjust relative to the USD? If 3 zeros are being lifted, or the 1,000 to 1 exchange is being changed to essentially 1 to 1, then employment contracts in IQD would be adjusted to reflect the new parity with USD.

Why couldn't large IQD in circulation co-exist for time as they get exchanged for smaller denoms? With the value of the IQD now equal with USD, it means you can use a 1 Dinar or a 1 Dollar note. The price of bread would not stay at 2300 Dinar, because then it would also cost 2300 Dollars. The Dinar would change relative to the Dollar, not vice versa. After an official RV, then Dinar in country could converted for Dollars according to the official exchange rate. All the Finance ministry has to do is broadcast the their national currency is now worth the same or MORE than the USD, the currency of their America conqueror. The proud Iraqi who wants all American gone, will gladly conduct business in Dinar exclusively, and charge a premium for Dollars if possible. Does that make sense?

You cannot simply lop the value off a 5,000 Dinar without also lopping the value of a 100 Dinar note. If you did, the 100 Dinar note would be worth a fraction of a penny. Does that make sense?

What does make sense is to change over to new value of currency, and therefor make the lower denoms worth something, and you only do that by making the large denoms worth much, much more. That requires exchanging for small denoms, and phases out the need to use USD 1, 5, 10, 20 and 100 notes. By making Dinar worth slightly more, there is no benefit to exhanging to USD unless traveling out of country.

I also can see that after an RV making the Dinar equal to the Dollar, lowering the amount of Dinar necessary to buy products by a factor of about 1,000 to 1, the CBI could then turn around and increase the value of the Dinar by tripling the value relative to the Dollar....making it 3.60 Dinar to 1 Dollar. That would then give Iraqi's 3 times the buying power of before, so then if they were being paid only 23,400 Dinar a year, it would then be equivalent to $60-70,000 USD.

Now that would make even those poor Iraqi much happier, putting them way ahead of inflation!

This is just my humble opinion, I am not a college graduate, but I adhere to the KISS philosopy of life.

God Bless America,,,,America, Bless God!

I agree with your explanation. It is logical and corresponds with what has been stated in the news. Whatever the RV amount, it will continue to float and rise in the Forex until it reaches the highest amount. Example: Rvs at 1.20 and by 2012 or 2013 it gets to $4. or $5.; baring any unforeseen radical decline in the economy or political upheaval in the government.

Good and clear post.

[sandyf]

I know you and everyone else have been repeatedly told this Zab by these false Gurus... but it simply isn't true. As the article states.... they will be printed with the Kurdish language on them. That is the constitutional requirement that occurred after 2003! If the lower denoms were printed in 2003 as you state, then all of the notes you presently hold would also have the Kurdish language on them. Clearly they don't.

This is outlining a re-denomination which really really sucks. I truly wish they would consider a different route but they seem to be full steam ahead. I am quite concerned with the CBI's plan to facilitate fair exchange to international Dinar holders. Yes...US!

Hi Drox

I have to disagree in part as it was documented back in 2005 I think that 14 denominations had been printed. Only seven have seen the light of day so there is a question mark over the other seven. I doubt very much they were big notes, why would they need another seven, so the obvious conclusion is they are low denominations. It would appear the change in the currency was all part of the "plan"

There were several theories last year regarding an additional print with the Kurdish language to help pacify the Kurds. This was to be distributed to that area when available. One theory being there was insufficient printed initially.

The talk of new currency can be quite confusing. The current currency in circulation is in fact the new iraqi dinar. Any currency printed in 2003 but just released would be considered "new" as it had not been seen before. As would any currency that had recently been printed.

At the end of the day the outcome is a matter of speculation as we cannot be 100% sure on the translation of what has been said. We can only try and decipher the information and each to their own opinion.

Edited June 24, 2011 by sandyf

[keepmwlknfny]

Hi Drox

I have to disagree in part as it was documented back in 2005 I think that 14 denominations had been printed. Only seven have seen the light of day so there is a question mark over the other seven. I doubt very much they were big notes, why would they need another seven, so the obvious conclusion is they are low denominations. It would appear the change in the currency was all part of the "plan"

There were several theories last year regarding an additional print with the Kurdish language to help pacify the Kurds. This was to be distributed to that area when available. One theory being there was insufficient printed initially.

The talk of new currency can be quite confusing. The current currency in circulation is in fact the new iraqi dinar. Any currency printed in 2003 but just released would be considered "new" as it had not been seen before. As would any currency that had recently been printed.

At the end of the day the outcome is a matter of speculation as we cannot be 100% sure on the translation of what has been said. We can only try and decipher the information and each to their own opinion.

Yes the outcome is speculation, but the three zero notes articles are pretty clear if you understand the reaons behind it and why they would do it......If you take many of those and put them together there isent anything else you could come up with other then a redenomination.....unless of course you have been listening to the gurus meaning of it

[debratzz]

Yes the outcome is speculation, but the three zero notes articles are pretty clear if you understand the reaons behind it and why they would do it......If you take many of those and put them together there isent anything else you could come up with other then a redenomination.....unless of course you have been listening to the gurus meaning of it

What is your take on the 14 denoms sandyf is speaking of?

[keepmwlknfny]

What is your take on the 14 denoms sandyf is speaking of?

I really really really really really really (should I continue? lol) want it to be true......and I had sooo much faith it in when I found that article last year....then after I detached my emotions from this investment my thinking got the best of me! Its the only piece of ANYTHING ever written that states there were 14 denoms printed...just started to get harder and harder to believe thats all......just a random piece out of no where and there is never any mention from any other source about it...I know it could all be part of the secret plan to RV, but you would think we could pick that piece of info from at least one other source....maybe even from US sources that helped print and install the current dinar....if it were the case for the RV, they surely wouldnt need to come out with any articles about making a brand new currency with the kurdish language and they wouldnt need to put out all the deleting the zeros articles either......

[Aquarius]

I've been reading the News thread entitled "Central Bank Declares Its Readiness...", and find it confusing that the link to support the text about the "three zeroes" has nothing to do with "three zeroes" or "redenomination" or anything similar. Here is the translated link:

http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&sl=ar&tl=en&u=http%3A%2F%2Fwww.alsumarianews.com%2Far%2F5%2F16911%2Fnews-details-.html&act=url

...and here is the text:

Demonstration of central Baghdad, raising images of Che Guevara and demands to change the country's policies

Editor: CC | BR

Friday 04 شباط 2011 08:20 GMT

Side of the street demonstration Friday Mutanabi

Alsumaria News / Baghdad

Hundreds of activists and young people in central Baghdad on Friday to demand a change of policies in the country, the methodology and the application of the promises of the members of the House of Representatives during the election period.

The reporter said "Alsumaria News" in Baghdad that hundreds of intellectuals, activists and young people demonstrated today in Mutanabi Street, the center of the capital, demanding the Iraqi government to change its policies methodology such as laws and find ways to improve services, pointing out that they called on Members of Parliament to fulfill their promises they made to the people during the period of the announcement of their election programs.

The reporter said the protesters also asked their support of Iraq's intellectuals in the mass demonstration and large in Tahrir Square in central Baghdad in support of the Iraqi people.

The correspondent added that the protesters were accused of sectarianism and the House of Representatives condemned the use of bullets in a demonstration yesterday in the Hamza the province of Diwaniyah, which led to the deaths and wounding of four civilians, calling not to impose restrictions on the freedoms and not to use the policy of gagging.

The reporter pointed out that the demonstrators carried photographs of Argentine revolutionary Che Guevara and chanted slogans that (Leave Leave Parliament is unable, for security) and (Kandahar, Baghdad will not be). "

Baghdad witnessed another demonstration today in the courtyard of paradise in which dozens of families of past on state property expressing their rejection of what they call "state terrorism", as banners reading "No to violations of privacy."

Scene of Diwaniya on Monday demonstration in which tens of citizens to demand better services and the elimination of unemployment, have met to shoot them randomly by security forces, killing one person and wounding four others were seriously injured.

The demonstration Mutanabi Street today the first of its kind in terms of claims to change the policies of the country, where claims were limited to the statements by some political blocs and criticized a number of politicians.

Correct me if I'm wrong, and I apologize for posting this in News if it should have been posted elsewhere, but just felt that if it is in error in News, it should be corrected in News.

[Aquarius]

Here is the correct link:

http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http%3A%2F%2Fwww.alsumarianews.com%2Far%2F3%2F23866%2Fnews-details-Iraq%2520business%2520news.html

Central Bank declares its readiness to start deleting zeros from the Iraqi currency, and add the Kurdish language on the new

Editor: CC | AA

Thursday 23 حزيران 2011 14:02 GMT

Alsumaria News / Baghdad

Central Bank of Iraq, Thursday, for his willingness to delete the zeros of the Iraqi currency, and as he emphasized that this step is one of the strategic functions of the Bank, pointed out that the new currency will contain on the Kurdish language in addition to Arabic.

The adviser said the Iraqi Central Bank Governor appearance of Mohammed in an interview for "Alsumaria News", "zeros are added to the Iraqi currency during the last period, formed a cluster of large cash $ 28 trillion and 500 billion Iraqi dinars, nearly five trillion banknote," noting that "Bank created all the supplies for the deletion of zeros from the currency."

Saleh added that "the process is one of the strategic functions of the Central Bank of Iraq," adding that "monetary policy of the Bank based on the structure and reduce the volume of currency in a country moving to the stage of the economy."

Salih stressed that "the project to delete the zeros have been completed and will be presented to the management of the Central Bank of Iraq during its next meeting, and then will be submitted to the Council of Ministers to be presented to the House of Representatives for a vote," pointing out that "the mechanisms of switching and changing the currency would gradually be preceded by awareness campaigns to citizens. "

He added that the benefit of "the new currency that will be printed after the deletion of zeros will contain the Kurdish language in addition to Arabic, as well as some pictures that refer to the heritage and civilization of Iraq and symbols of Iraqi scientists and intellectuals."

The Iraqi Central Bank Governor Sinan Shabibi said at a meeting of independent bodies with Prime Minister Nuri al-Maliki, which took place in the 19 of June, and, ready to create all the supplies to replace the Iraqi currency.

The Central Bank of Iraq, has four branches in Basra and Sulaymaniyah, Irbil and Mosul, which was established as a bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March 2004, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of reserves and the issuance of foreign currency management, as well as to regulate the banking sector.

[joekooltrips]

It seems to me, if the 3 zeros are lifted from the IQD, then .00086 to 1 USD would change to .86 to 1 USD. If an Iraqi was being paid 234,000,000 IQD a year ($20,000 USD) before RV, then post RV he would be paid 23,400 IQD to equal $20,000 USD (or something similar). Today, both currencies are used, but because of the "fixed rate" of the Dinar, it takes a thousand times more Dinar to buy what a Dollar costs. (Hence, the 5,000 and 10,000 and 25,000 Dinar notes, instead of 1 Dinar, 5 Dinar, 10 Dinar, 20 Dinar, 50 Dinar and 100 Dinar. Even 1,000 Dinar were not needed with an abundance of 1 Dollar bills...)

Isn't that how the IQD would adjust relative to the USD? If 3 zeros are being lifted, or the 1,000 to 1 exchange is being changed to essentially 1 to 1, then employment contracts in IQD would be adjusted to reflect the new parity with USD.

Why couldn't large IQD in circulation co-exist for time as they get exchanged for smaller denoms? With the value of the IQD now equal with USD, it means you can use a 1 Dinar or a 1 Dollar note. The price of bread would not stay at 2300 Dinar, because then it would also cost 2300 Dollars. The Dinar would change relative to the Dollar, not vice versa. After an official RV, then Dinar in country could converted for Dollars according to the official exchange rate. All the Finance ministry has to do is broadcast the their national currency is now worth the same or MORE than the USD, the currency of their America conqueror. The proud Iraqi who wants all American gone, will gladly conduct business in Dinar exclusively, and charge a premium for Dollars if possible. Does that make sense?

You cannot simply lop the value off a 5,000 Dinar without also lopping the value of a 100 Dinar note. If you did, the 100 Dinar note would be worth a fraction of a penny. Does that make sense?

What does make sense is to change over to new value of currency, and therefor make the lower denoms worth something, and you only do that by making the large denoms worth much, much more. That requires exchanging for small denoms, and phases out the need to use USD 1, 5, 10, 20 and 100 notes. By making Dinar worth slightly more, there is no benefit to exhanging to USD unless traveling out of country.

I also can see that after an RV making the Dinar equal to the Dollar, lowering the amount of Dinar necessary to buy products by a factor of about 1,000 to 1, the CBI could then turn around and increase the value of the Dinar by tripling the value relative to the Dollar....making it 3.60 Dinar to 1 Dollar. That would then give Iraqi's 3 times the buying power of before, so then if they were being paid only 23,400 Dinar a year, it would then be equivalent to $60-70,000 USD.

Now that would make even those poor Iraqi much happier, putting them way ahead of inflation!

This is just my humble opinion, I am not a college graduate, but I adhere to the KISS philosopy of life.

God Bless America,,,,America, Bless God!

Thanks for the post bro, that's how I understood it to be. With June coming to an end Iguess we'll/we're about to find out.

[quadraph0nic]

*GULP*

[WHATTHE]

i've read through most of this thread and haven't seen this brought up (sorry if i missed it), but do you think all the politicians in iraq are gonna screw themselves? they all hold dinar and perhaps a lot of it. are they really gonna lose out by killing the value of their own holdings? i don't think so. what am i missing here?

[SR71_Blackbird]

Here is the correct link:

http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http%3A%2F%2Fwww.alsumarianews.com%2Far%2F3%2F23866%2Fnews-details-Iraq%2520business%2520news.html

Central Bank declares its readiness to start deleting zeros from the Iraqi currency, and add the Kurdish language on the new

Editor: CC | AA

Thursday 23 حزيران 2011 14:02 GMT

Alsumaria News / Baghdad

Central Bank of Iraq, Thursday, for his willingness to delete the zeros of the Iraqi currency, and as he emphasized that this step is one of the strategic functions of the Bank, pointed out that the new currency will contain on the Kurdish language in addition to Arabic.

The adviser said the Iraqi Central Bank Governor appearance of Mohammed in an interview for "Alsumaria News", "zeros are added to the Iraqi currency during the last period, formed a cluster of large cash $ 28 trillion and 500 billion Iraqi dinars, nearly five trillion banknote," noting that "Bank created all the supplies for the deletion of zeros from the currency."

Saleh added that "the process is one of the strategic functions of the Central Bank of Iraq," adding that "monetary policy of the Bank based on the structure and reduce the volume of currency in a country moving to the stage of the economy."

Salih stressed that "the project to delete the zeros have been completed and will be presented to the management of the Central Bank of Iraq during its next meeting, and then will be submitted to the Council of Ministers to be presented to the House of Representatives for a vote," pointing out that "the mechanisms of switching and changing the currency would gradually be preceded by awareness campaigns to citizens. "

He added that the benefit of "the new currency that will be printed after the deletion of zeros will contain the Kurdish language in addition to Arabic, as well as some pictures that refer to the heritage and civilization of Iraq and symbols of Iraqi scientists and intellectuals."

The Iraqi Central Bank Governor Sinan Shabibi said at a meeting of independent bodies with Prime Minister Nuri al-Maliki, which took place in the 19 of June, and, ready to create all the supplies to replace the Iraqi currency.

The Central Bank of Iraq, has four branches in Basra and Sulaymaniyah, Irbil and Mosul, which was established as a bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March 2004, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of reserves and the issuance of foreign currency management, as well as to regulate the banking sector.

Now what exactly does this mean? Is this where a 25,000 Dinar note becomes a 25 Dinar note...or your 'current' notes mean nothing because we're now publishing a new currency?? You know, it doesn't seem to matter how 'close' you think you've gotten to the end of this battle, you can only get so close...a carrot on a stick comes to mind. No matter how close to the completion of this 'thing' we get, there's always one more hurdle. DISGUSTING!!!

[zaborniake]

They're going to redenominate by removing the large notes and replacing them with smaller notes. This is going to occur simultaneously with the RV. They aren't recalibrating the currency, or further devaluing it. How hard is this to understand?

[Zildjian67]

Ok... my point Bondlady is that you have no proof of this other stuff either... i.e. the lower "pre-printed denominations". People look up to you and when anyone speaks matter-of-factly about issues as sometimes you do, a lot of people consider it a truth. Have you ever done the math on this?

If an Iraqi makes $300 a month. That is 351000 dinar. If it RV's at $1 that means that same Iraqi makes $351,000 a month overnight. He makes over a million dollars in one year. Your bread at the corner store just went from $2 or 2340 iqd... to $2340. For a loaf of bread??? Not only that... you seem to suggest that they remove the higher denominations like 25000 for some reason. So they will have to carry around that much cash? What if they need more then bread? Now before you say prices and income won't go up... How will Iraq benefit from a $1 RV then if they can't tax on these things? Are they doing it to be kind? All numbers across the board will be relative in value. You cannot pick and choose certain things that will or won't change. Yes...imports will be much cheaper but that doesn't mean the merchant won't raise his prices to cater to the mega rich new Iraqi. How about the 30% of the population that don't have a job? How will they benefit? How about the other 30% on top of that that have no savings? Are you suggesting that 2/3rds of the country will get nothing so that the 1/3rd will live like kings? You think Iraqi has security problems now you wait for that scenario to unfold. Please... think about that.

For the contractor in iraq. He has 1/2 Americans making $100,000 a year and 1/2 Iraqis they pay $20,000 (23,400,000iqd). Upon an RV... do they keep paying the Iraqis $20,000 or do they now pay them $23.4 MILLION a year? Do they fire them all and bring in an all American workforce? How does that help unemployment in Iraq? I would love for you to address these questions because I can't seem to wrap my head around these other gurus logic. Thanks!

Wouldn't that be adjusted as well as food prices etc.? For example.....A coke costs 1,000IQD now. The zero's shift (RD or RV) the can of coke is now 1IQD. I would assume if an Iraqi worker makes 300,000IQD per month, that salary too would be adjusted in the process to 300IQD per month.

"D"

[quadraph0nic]

Drox, I appreciate your conservative stance on this. You are a clear thinker and a man who looks at the facts. I do also, however, diaagree with your assessment of the current situation. If you read some of the news coming out of Iraq, I clearly believe the CBI is about to introduce a 100.000 dinar note (a note equal to US $100) which is what the articles are stating. Everyone is assuming lower denoms but I am not so sure. Re-read the article and assume the introduction of a 100,000 dinar note, and it all make sense. We will see a huge windfall from this investment. Perhaps just not as soon as some think.

Peace to you my friend.

Oh you saw that too? Earlier this year Drox had a great take on the 100,000 note.

There was a new article that said larger denom and small denom. I wish i had the link to it but that's what I immediately thought of.

If they do it so be it because they are not going to print off another three zero note if their intentions are to LOP. Cost wise it doesn't make sense to introduce new currency with wrong face value. Plus they talk about making it easier for the people to use the currency. This would accomplish that and hopefully keep our dream alive.

Nice catch Munson I hope its correct.

They're going to redenominate by removing the large notes and replacing them with smaller notes. This is going to occur simultaneously with the RV. They aren't recalibrating the currency, or further devaluing it. How hard is this to understand?

And they will support the Trillions they have out their? The only data I have to go by is what's reported by the central bank of Iraq.

What I would like to know is what kind of monetary policy are they going to go with to support those trillions (our millions)?

Would they be allowed to ditch the whole reserve banking system?

I know this country has the goods but those goods are in the ground.

I really really really really really really (should I continue? lol) want it to be true......and I had sooo much faith it in when I found that article last year....then after I detached my emotions from this investment my thinking got the best of me! Its the only piece of ANYTHING ever written that states there were 14 denoms printed...just started to get harder and harder to believe thats all......just a random piece out of no where and there is never any mention from any other source about it...I know it could all be part of the secret plan to RV, but you would think we could pick that piece of info from at least one other source....maybe even from US sources that helped print and install the current dinar....if it were the case for the RV, they surely wouldnt need to come out with any articles about making a brand new currency with the kurdish language and they wouldnt need to put out all the deleting the zeros articles either......

MMmm well unless those missing denoms have arabic and kurdish writing on them, i dont believe they were ever printed or maybe they were printed but never used because they are worthless and if that were the case then maybe someone made a big mistake printing them kind of like the coins in Iraq and how they are worthless, not even in circulation. Might be nice to get some of those and add them to my kids monopoly set....

Keep, i forget to bookmark stuff and sometimes i have bad memory. What was the name of the professor that was a conultant on the creation of the new iraqi dinar? I'm trying to back track my way back to an old article that I read a long time ago and it quoted shabibi saying it was unfair of the IMF decision to carry over all the bad things from Sadam to the NID and I remember i was reading about that professor when i came across that article.

Thanks dude

[MAW33326]

The only question I still ponder is what they will do for people with bank accounts? Cut three zeros from their accounts?? Or the people in country with large bills get screwed but the people in country with 50's are spared?? I would think they would find some sort of happy medium to quell these issues.

This ones easy as pie, if its in a bank, you have x dinar. After rv, you still have x dinar, but now you have a smile. lol

[tommyboy]

That original link, when run through google translate, doesn't even mention anything about the CBI. It's all about demonstrations.

BAD LINK

[keepmwlknfny]

i've read through most of this thread and haven't seen this brought up (sorry if i missed it), but do you think all the politicians in iraq are gonna screw themselves? they all hold dinar and perhaps a lot of it. are they really gonna lose out by killing the value of their own holdings? i don't think so. what am i missing here?

They arent screwing themselves out of anything and they dont lose anything.....its a neutral change of events when it happens in country.....hopefully if it happens, we will see a rise in the exchange rate as well...

[MrFnHappy]

MrFnhappy,-So you think Iraqi people are going to stand for walking into a store holding a 1000 IQD note and then agreeing that it now suddenly worth a 1 IQD note? ? You quote the translations of the articles literally and use the order of the words as a logical tell that this particular translation you have of this RV process is the only way it could be...however if youve noticed the ordering of words from these arabic articles are totally ass backwards everytime there is a new one and the translations lead to varying word orders from one person to the next. So I think taking a 3 word blurb from the translated article and sighting the order of the words in that blurb to hold literal or empirical logic is just not accurate.

I've been reading these translations for 7 years now....of course that doesn't make me an expert, but I feel I have a pretty good handle on it. Further, there have been many articles from as early as 2005 stating they wanted to rd. Add to all these articles, the pure economics of it, and historical precedents (Turkey has been mentioned more than once) that these articles refer to and it's pretty hard to not reach the conclusions that I and others have come to.

What many don't seem to understand is that in the event of an rd, in the scenario you present, the iraqi customer handing over his 1000 dinar note and having it treated as a 1 dinar note has NOT lost purchasing power. 1000 dinar is currently worth $.86, and after the proposed rd, the 1 dinar note will be worth the same $.86 The underlying value in USD will remain the same.

Edited June 24, 2011 by MrFnHappy

[k98nights]

bump

[hoopdog]

Keep.....Do you have a Warka bank account? Just curious, I have looked into it, but just can't seem to pull the trigger. However wouldn't that protect against an RD. A million in the bank is a million in the bank, no 0's attached to anything, just a number? I am talking Dinar in the bank of course. Just trying to way my options, that's all.

[jmw]

to me the challenges are in how you look at the impact for Iraqi's...for example...some look at this as the Iraqi's will be wealthier and as a result prices will be lower, wages will be adjusted down, etc...but because the increase in value is only in an exchange rate...Iraqi's aren't actually any wealthier...they can only import things much cheaper...If I am a grocery store owner and I currently buy cokes from a distributor for 500 dinar and sell them for 1000 dinar...after it revalues and let's use 1 to 1 to make it simpler...my prices wouldn't come down until my distributor sold all of his stock and was able to replace it with a lower priced version...so even after a RV a store owner would continue to sell that coke for 1000 dinar (now worth 1000 US dollars) until he was able to purchase new ones at a lower price. So at what point would someones pay be reduced?...when it revalues or after some prices started to fall?...and the only prices that fall would be for imported items...What would change for us if the US dollar went up 1000% to the Euro?....would our pay be reduced?

[taboo]

LOOKS LIKE A LOP TO ME.....SORRY