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The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein's reign.

its not a done deal yet folks calm down we all knew it was an option here but this won't stick.

Misinformation if its coming from saleh.

Correct Easy, also the dinar did not lose value due to hyperinflation, the UN crushed the dinar which had a false value created by Sadaam. It was devalued so iraq had no purchasing power. It was a punishment. Saleh is the BS minister. Dont get too upset.

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in the short term, larger banknote denominations of the dinar will be issued to simplify major transactions.

He said that because so many Iraqis still deal mainly in cash, it is cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases -- as well as many entrepreneurs -- to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 will be issued to simplify major purchases, and new coins and lower denominations will be introduced for smaller transactions.

To me that means in the short term add a 100,000 note and maybe a small rv or none at all for a while...imo

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" In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note."

This leads me to believe that, when they do revalue a 25,ooo dinar note will be worth face value 25,ooo dinar..But after a time limit (In the Longer term) the 000's will be dropped or taken away and it will then be the new 25 dinar note.

Exactly what I understand this to mean. Just relax and let it happen. We will have plenty of time to cash out.

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Iraq News

Iraq’s Central Bank plans to delete zeroes of Iraqi currency.

Friday, June 24, 2011 11:23 GMT

Iraq’s Central Bank announced on Thursday that it is planning to delete the zeroes of the Iraqi currency.

This step is one of the bank’s strategic missions; the Central Bank said adding that the new currency will include the Kurdish language in addition to the Arabic language.

“The zeroes that were added to the Iraqi currency previously constituted a large money supply up to 28.500 trillion Iraqi Dinar and 5 trillion banknotes”, the advisor of Iraqi Central Bank governor Mothahhar Mohammed Saleh told Alsumarianews.

“The Central Bank has prepared all requirements needed to delete the zeroes of the Iraqi Currency”, Saleh said.

“This step is one of the Iraqi central bank’s strategic missions. The monetary policy of the bank aims to structure and reduce the currency in a country moving towards an economic phase”, he added.

“The project of deleting zeroes is complete. It will be submitted to the central bank’s administration in the next session. Then, it will be passed to the ministerial council before presenting it to the Parliament for vote. The mechanisms of changing the currency will be gradual. It will be preceded by awareness campaigns for citizens”, the adviser of Iraqi Central Bank governor said.

“The new currency will be printed after deleting the zeroes and will include the Kurdish language in addition to the Arabic language. It will bear as well photos of Iraq’s civilizations and patrimony in addition to symbols of Iraqi intellectuals and figures”, Saleh noted.

On June 19, Iraq’s Central Bank Governor Sanan Al Shebeibi affirmed during the meeting of independent commissions with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

Iraq’s Central Bank has four branches including Basra, Sulaimaniah, Arbil and Mosul. It was founded as an Iraqi independent bank by virtue of Iraq’s Central Bank Law issued on March 6, 2004.

The bank is responsible for the prices stability and the implementation of monetary policy including exchange rates, the management of foreign reserves, the issuance of currencies and the organization of the banking sector.

Article 2

BAGHDAD -- A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of the bank's advisory panel, told RFI on June 23 that in the short term, larger banknote denominations of the dinar will be issued to simplify major transactions.

He said that because so many Iraqis still deal mainly in cash, it is cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases -- as well as many entrepreneurs -- to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 will be issued to simplify major purchases, and new coins and lower denominations will be introduced for smaller transactions.

In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note.

He said the change is inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.

Saleh said there are currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also causes complications for the central bank and government, as well as commercial accounting departments.

Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund (IMF), of which Iraq has been a member since 1945.

The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein's reign.

They're busy over there today!

and it flat out says a 25K bank note will become a 25 bank note

theres no links for either of them

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In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note."

This leads me to believe that, when they do revalue a 25,ooo dinar note will be worth face value 25,ooo dinar..But after a time limit (In the Longer term) the 000's will be dropped or taken away and it will then be the new 25 dinar note.

I agree with Snatcher on this one, maybe i am wrong, but i have been invested for a long time now, but lets hope!!!!

Come on RV!!!!

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Not sure what to think here. Translations differ at times, and everyone who reads into it seems to pull their own bias out of it. Personally I don't think they will snub the rest of the world. Granted world governments could probably exchange dinar for oil, but I have no need for unprocessed crude. I would also think that the average Iraqi who has saved a pittance his whole life would now see his money made completely worthless. If you think they have civil unrest now imagine after being told they have less than before. Just my observation, but I am a newbie here, so what the hell am I supposed to know?

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Not sure if Kap is referring to the same articles but this adds a little (calming) perspective...

Please note: The article links in the text below are not working

Kaperoni Chat: Dinar Alert 6/23/11 (Final Chat)

June 23rd, 2011 11:19 pm · Posted in CHATS & POSTS (Iraqi Dinar Info)

http://xxxx .com/2011/06/23/kaperoni-chat-dinar-alert-62311-final-chat/

[kaperoni] Many of you know I have a great friend who I met a few years ago. He is an Arabic translator and has many times interpreted the articles and links I have sent him.

[kaperoni] His contribution to figuring out this information is simply invaluable. His insight has simply again been invaluable to us a team working to achieve the same goal. He has my full trust and I have tremendous respect for his dedication.

[kaperoni] Thank you my friend the Arabic translator!

[kaperoni] Now, in recent days there have been several articles out pertaining to the dinar. Articles that say, in essence, the preparations are done and they are ready to move ahead with the new currency of Iraq…the lower denominations.

[kaperoni] Tonight, I will share the links to these articles and provide insight from my Iraqi translator friend. His translations often pick up information that the standard translator does not such as Google, Bing. etc.

[kaperoni] Here is the first article..

[kaperoni] Central decides to restructure the Iraqi currency

[kaperoni] http://www.microsofttran ··· 47913%2F

[kaperoni] Here are my friend’s views…

[kaperoni] “This article basically states that CBI intends to release a new currency, and that this plan was agreed upon with CBI in conjunction with the IMF as part of Iraq’s plan

[kaperoni] for strategic long-term economic development and that the IMF would continue to support the Iraqi economy.”

[kaperoni] Do you see what he said?

[kaperoni] This is the plan for them to move forward as the IMF is their guidance.

[kaperoni] “The article states that the new denominations will reach up to 100 Dinars.

[kaperoni] This means that the highest bill that will be in circulation will be a 100 Dinar bill.

[kaperoni] The rate must be realistic with that note being the largest.

[kaperoni] There will be other smaller bills, but the article does not specify what they are going to be (if they will be 1, 5, 10, etc). They state that this will help with payments and purchases

[kaperoni] and make those transactions easier for people and for government transactions, such as paying for war reparations. The article also states that this is a change in tune from what was said earlier in the year, when the GOI denied that there

[kaperoni] would be any changes to the currency.”

[kaperoni] Here is the next artricle… Advisor to the Central Bank’s “by the people”: “Structuring currency” includes lifting of the zeroes and the issuance of new categories

[kaperoni] http://translate.googleu ··· 583%2B%2

[kaperoni] From my translator friend…

[kaperoni] “This one also re-states what the previous articles have said and really discusses more of the reasons for the removal of the 3 zeros and the new lower denoms, which are the same

[kaperoni] reasons that we talked about before, such as giving more purchasing power to a smaller amount of notes (instead of big bills with little purchasing power) and facilitating private and government transactions and reducing inflation and

[kaperoni] strengthening the Iraqi economy, etc. “

[kaperoni] Now here is the last one…Pay close attention to this article….Maliki’s meeting of independent bodies

[kaperoni] http://translate.google. ··· 66-.html

[kaperoni] We are going to key in on the bottom paragraphs here, as these are statements from Shabibi himself the head of the CBI….

[kaperoni] “The bottom statement, the one from Shabibi, states that there will be an upcoming change with the Dinar within the next week to no more than 10 days. He says that there

[kaperoni] will be lower denominations in the Dinar, and that he understands that people may be worried about how the new currency will work, but he says that there should be no reason for people to worry about it because it is all really simple mathematical calculations

[kaperoni] and they will quickly learn and get the hang of it. The last part to the statement is not well worded, but from what I understand it is something along the lines of they

[kaperoni] are waiting for a final vote (I assume he is talking about parliament or the council of ministers) and that all the people that were needed for the vote were not present, but they working to get it set up where everyone who needed to be

[kaperoni] present for the vote would be so they could vote and complete the last step needed.”

[kaperoni] Ok, we now have confirmation of the RV window!

[kaperoni] More from my translator friend …

[kaperoni] ” It truly sounds promising to me! As I have mentioned when we’ve talked previously, I wouldn’t be worried about the vote because CBI is independent and they have basically

[kaperoni] made up their mind that they are going to RV and they have printed all of this money obviously if they plan to do it within 7-10 days, so I don’t think they would have gone through all this trouble if they knew that there was a chance that it could

[kaperoni] be blocked or not approved. I truly believe the vote is just a “legal formality” and that CBI is going to get this done either way. “

[kaperoni] “And truly, 7-10 days is just around the corner, which would be the 30th to the beginning of July, and that is the date that we have been watching out for. “

[kaperoni] That is the end of this chat. I believe we now know the window of the RV, and it is in the month of June.

[kaperoni] Kap

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After this RV/RD/minus 3 zero's (or whatever we are going to call it) happens

Can I take a 25k dinar note and get 1k 25 dinar notes? It's still 25 thousand Dinar.

I ask this because several of the articles say there will be no impact on the citizen or his pay.

I take that to mean that Iraq wants to get rid of the large denoms and issue small ones.

So, if I have a 25,000 IQD note and I walk into a store and but a 500 IQD Coke, I would get 24,500 IQD back in low denom notes.

Sounds good to me. I don't care if I am holding one 25K note or 100 250 IQD notes, it all adds up to 25K.

And the exchange RATE for the notes will be exactly the same for all of the notes. The rate will not be different for 25 IQD note vice a 25K IQD note.

Rememer that the inverse is true here:

An Iraqi citizen would need a wheelbarrow full of cash to buy a car with 3 zeros missing from his IQD.

AND buying a coke with a note with 3 extra zeros on it will pose exactly the same difficulty.

The goal of the CBI is to create a stable, usable currency.

The point I am trying to make is that the exchange rate is important here, not wether or not there are 3 extra zeros.

I invite comment on my theory.

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Not sure what to think here. Translations differ at times, and everyone who reads into it seems to pull their own bias out of it. Personally I don't think they will snub the rest of the world. Granted world governments could probably exchange dinar for oil, but I have no need for unprocessed crude. I would also think that the average Iraqi who has saved a pittance his whole life would now see his money made completely worthless. If you think they have civil unrest now imagine after being told they have less than before. Just my observation, but I am a newbie here, so what the hell am I supposed to know?

Aloha Bro....

I agree with ya ..... B) .

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No. I million dinars is still one million dinars, just in small denomination bills.

NOW multiply the exchange rate.

Keep in mind, if you have ten one dollar bills, it is still the same as a two five dollar bills or one ten dollar bill.

Make sense? Your one million is still one million. The CBI just wants all the large bills back to destroy them and they will give you the small bills in exchange.

Only you won't get the small bills will you? You will just convert to USD and stay in the United States and enjoy your windfall.

The people in Iraq though, they will get the small bills.

Because they live there and their currency is not an investment to them.

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No. I million dinars is still one million dinars, just in small denomination bills.

NOW multiply the exchange rate.

Keep in mind, if you have ten one dollar bills, it is still the same as a two five dollar bills or one ten dollar bill.

Make sense? Your one million is still one million. The CBI just wants all the large bills back to destroy them and they will give you the small bills in exchange.

Only you won't get the small bills will you? You will just convert to USD and stay in the United States and enjoy your windfall.

The people in Iraq though, they will get the small bills.

Because they live there and their currency is not an investment to them.

I sure hope you are right because it does make sense to us and the people within Iraq.

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This is all in country stuff... Thats why saleh is providing info... He is no more than and aide to Obama here in the states. they will not $%^K the investors that have brought liquidity to thier economy. Plus we and other will not stand to re-invest in other projects that they have on the table if we get bent over with no vasoline.

Hang tight and let it play out. I have double digit dinar holding and would not have if I though a L was even possible. L with RV is plausible but do not see that either. From what my folks say..... Sit back and watch the Fireworks..

Nothing happens till Shabbs get back from Rome anyway, so drink some beer, burn some meat and get ready for TUES, WED, THURS, and then we ride.

If not then, it will not be for several months, but everything points to the 30th or possibly a few days after when we are standing in line at the bank!!

Good Luck all, and stay focused on the FINISH!! :)

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These are the same articles from yesterday and they're Radio Free Europe's interpretation. I saw them on harrysmug's post on DD taken from milliondays on PD. Here's the link.

http://www.rferl.org/content/iraq_said_planning_currency_overhaul_redenomination/24245867.html

Not sure I'd buy the 25K note turning into a 25 note. I don't think whoever wrote this understands this investment.

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Hehe I can't stop staring at the 25k note will be worth 25 IQD. If you don't think a LOP is possible your wrong, it has happened in MEXICO and other countries during a REVALUE.

I know Mexico and Iraq are two different stories but it is important to realize any and all possible outcomes to our investment.

As for me I am hoping we are going to get a straight revaluation. If my 25k notes turn into 25 I don't see much profit being made.

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"In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note."

It does not mean necessarily the value of the 25k, but what bill is the largest denomination. Don't freak and read something into this that may not be there!

I totally agree lets not do lop talk they do not have hyper inflation.

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