2 articles - last hour

[Doctor Smith]

Trying to interpret these articles is insane! I can't wait to see how they do this... The LOP is not logical and if they're not at least going 1 for 1, why introduce lowers? I think there is some hard info to interpret here and maybe a bit of propaganda. Bottom line is something is happening, and soon!

Exactly. Why bother trying to interpret them as they are probably just propaganda. Then you have the language barrier on top of the encrypted talking in circles.

[FishmanTx]

That is a great breakdown of it RVDinar4MyFamily. The only thing about the second senerio is that banks would have to give lower denoms for the 000 notes which would add a huge amount of bills to the population and the articles clearly state that they want easier transactions from the RD. I guess it is possible but unlikely in my opinion. Thanks for sharing that breakdown. Think ya nailed it.

Yeah, but they don't HAVE to put all of it into circulation. They stockpile the larger notes, out of circulation, and there you have a reduction of available dinars. Just because they printed 27T IQD doesn't mean they have to circulate them and inflation is based on AVAILABLE currency. Less available notes equals a STRONGER currency. This why our economy sucks, remember? As the Fed keeps printing the notes and USING THEM the value of the dollar goes DOWN. Basic economics.

Ya'll leave a LOT of factors out of your logic.

[WesParsons]

Exactly. Why bother trying to interpret them as they are probably just propaganda. Then you have the language barrier on top of the encrypted talking in circles.

Because...the lop doesn't just take the three zeros' off the currency

it takes it off the prices too

it takes three zeros away from everything

Every price tag

Every purchase

Every checking account balance

Every paycheck

Every happy meal

Every rent price

Every mortgage payment

Everything everywhere....

They move, the entire currency and all financial data, three decimal points left

it's very very simple

[dinarck]

Yeah, but they don't HAVE to put all of it into circulation. They stockpile the larger notes, out of circulation, and there you have a reduction of available dinars. Just because they printed 27T IQD doesn't mean they have to circulate them and inflation is based on AVAILABLE currency. Less available notes equals a STRONGER currency. This why our economy sucks, remember? As the Fed keeps printing the notes and USING THEM the value of the dollar goes DOWN. Basic economics.

Ya'll leave a LOT of factors out of your logic.

Wait. You have lost me. If they are bringing in lower denoms without a RD then they would have to give each Iraqi lower denoms for his 000 notes. Don't see how they could get around that. It is true that outside speculators such as ourselves wouldn't really need to exchange. Our notes would retain their face value but that doesn't mean they are not in circulation. So if there is say 17 trillion in Iraq, that will not change when lowers are exchanged and the other 10 trillion outside the country still remains 10 trillion so 27 trillion remains in circulation. If I am missing something then please explain.

[FrankenSLI]

“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.

Read more:

Sounds to me like they are going to gradually remove 000's from circulation in order to insert ld's while at the same time reducing dinar in circulation.

Actually depending on what line you read it also says... "The project of deleting zeros is complete" Which would coincide with the Scooter Breitling theroy that the removing of the zeros is actually removing the three 000 dinar. Not that this is my belief but my hope.

[HappySteel]

RVD4Family, now you have me confused. Help me here.

You say:

"This is what the CBI does . . . RV the exchange rate from .00085 to 1.0

"Remove the larger notes from circulation for use in bank to bank and other large transactions leaving the 50, 250, and possibly the 500 as the largest denominations in circulation. So, the currency will look like this

"25,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 25,000 dinar)."

So . . . If it's still worth 25,000 dinar, and the dinar is RV'd to 1.0 ----- then it's worth 25,000 x 1.0 = 25,000 USD !!!!!!!! Yes ???? Happiness!!!!

Are we together on this?

This is my belief, right on brudder

[dinarck]

Actually depending on what line you read it also says... "The project of deleting zeros is complete" Which would coincide with the Scooter Breitling theroy that the removing of the zeros is actually removing the three 000 dinar. Not that this is my belief but my hope.

I wonder what Scooter and Brietling mean by the 000 notes have been removed. What where they exchanged for? How many were "removed"? How were they "removed"? What are the Iraqis using for money? Why haven't we heard confirmation from people on the ground that there is no longer any 000 notes on the streets? If they gave USD for them, why would they buy their own money just to destroy it?

[WesParsons]

I wonder what Scooter and Brietling mean by the 000 notes have been removed. What where they exchanged for? How many were "removed"? How were they "removed"? What are the Iraqis using for money? Why haven't we heard confirmation from people on the ground that there is no longer any 000 notes on the streets? If they gave USD for them, why would they buy their own money just to destroy it?

why remove them only to turn around and release even bigger notes as indicated by the articles today?

[FishmanTx]

Wait. You have lost me. If they are bringing in lower denoms without a RD then they would have to give each Iraqi lower denoms for his 000 notes. Don't see how they could get around that. It is true that outside speculators such as ourselves wouldn't really need to exchange. Our notes would retain their face value but that doesn't mean they are not in circulation. So if there is say 17 trillion in Iraq, that will not change when lowers are exchanged and the other 10 trillion outside the country still remains 10 trillion so 27 trillion remains in circulation. If I am missing something then please explain.

Smart card use and the fact that the large bills will be removed from circulation by attrition and by our cashing in. When we exchange, that Dinar is not replaced like it is in country, it's a foreign exchange. All the govt, corporate, and individuals notes are exchanged for the appropriate foreign currency. Remember the "blurb" about increasing foreign currency holdings in one or two reports, also the DFI? When we exchange, that foreign currency is used to bring all that dinar back home to the vault, thereby reducing the amount in circulation by a significant number.

I'm sure there are many more ways to reduce it further. This is why oil money (which is dollars) will be used to fund the exchange (as well as the DFI, etc...).

Edited June 25, 2011 by FishmanTx

[dinarck]

Smart card use and the fact that the large bills will be removed from circulation by attrition and by our cashing in. When we exchange, that Dinar is not replaced like it is in country, it's a foreign exchange. All the govt, corporate, and individuals notes are exchanged for the appropriate foreign currency. Remember the "blurb" about increasing foreign currency holdings in one or two reports, also the DFI? When we exchange, that foreign currency is used to bring all that dinar back home to the vault, thereby reducing the amount in circulation by a significant number.

I'm sure there are many more ways to reduce it further. This is why oil money (which is dollars) will be used to fund the exchange (as well as the DFI, etc...).

Yeah electronic banking in Iraq could solve alot of the questions that I have as far as a RV goes but we will be waiting some time for it. Less than 1/5th of Iraqis have accounts so they have a long way to go. I am willing to wait as long as they don't LOP first.

[zul]

I wonder what Scooter and Brietling mean by the 000 notes have been removed. What where they exchanged for? How many were "removed"? How were they "removed"? What are the Iraqis using for money? Why haven't we heard confirmation from people on the ground that there is no longer any 000 notes on the streets? If they gave USD for them, why would they buy their own money just to destroy it?

CBI collected a lot of IQDs at the daily auctions. The daily auctions sells foreign currencies mostly USD....and the participating bank pays CBI using IQDs. Imagine all those 150 million USD (average) worth of IQDs....'removed' on a daily basis.

The only reason this does not cause shortage of currencies on the street is because they are using dual currency (IQD and USDs). They got their IQDs from the sale of their oil. I think 30% of the sale goes to Iraq..?

ooopss....they got their USD from the sale of their oil.

[JOLLY ROGER]

We are almost to the end. Why jump now? Like I said. I hope to make money on this deal yet. Double or even triple would be great. Then again that may not even occur but you win some you lose some. What you won't see me doing is throwing tantrums saying I win I win I win no matter what.

When climbed aboard, my plan was to ride it all the way to the top OR all the way to the bottom....

I haven't changed my position on that. One day, we'll know for sure.

[dinarck]

CBI collected a lot of IQDs at the daily auctions. The daily auctions sells foreign currencies mostly USD....and the participating bank pays CBI using IQDs. Imagine all those 150 million USD (average) worth of IQDs....'removed' on a daily basis.

The only reason this does not cause shortage of currencies on the street is because they are using dual currency (IQD and USDs). They got their IQDs from the sale of their oil. I think 30% of the sale goes to Iraq..?

ooopss....they got their USD from the sale of their oil.

So what you are saying is that USD is being used primarily on the streets?

When climbed aboard, my plan was to ride it all the way to the top OR all the way to the bottom....

I haven't changed my position on that. One day, we'll know for sure.

Think you and I are on the same boat. Or ship. AAARGGGG!!!

[Solarcloud]

Apparently scooter has shared his opinion with some people I have talked to. He says this information is being interpreted wrong and is positive.

I don't revoke my previous comments at all though. If the article states what it states, we could be in trouble. I like to look at both sides of the story though!!!!

GO RV!?

[zul]

So what you are saying is that USD is being used primarily on the streets?

This was in response to the low auction of daily auctions back in April..?

In an interview with "the world," said Amir Matar, the owner of well-known foreign exchange company in Baghdad, said "the Central Bank of Iraq has not only sold twenty million dollars, while he was selling up to ten days ago, nearly two hundred million a day."

He adds that "the Iraqi market needs to at least 150 million dollars a day, but the low sales of the dollar will have an impact on consumer prices, and the injured citizen would be first place."

He attributed the decline in sales of auction-Sarraf the central bank to "differences with the latter and the Ministry of Finance."

The claim about the central bank to financial intermediation companies disclosed the number of tax clients, finds that "this will stop the auction is final, by the refusal of customers", and stresses that he "will contribute to the smuggling of currency, due to suspension of remittances, which will reflect negatively on the national currency."

If 150 million USD daily can be considered 'primarily'...then the answer is yes.

[RVnow4meplease]

Thanks!

[DgreenFSU66]

If the new 25 Dinar note will be equal to the current value of the 25,000 note, then is that not an RV???? How is this so hard to understand? K.I.S.S.

[MrFnHappy]

So ... 1 million dinars becomes 1,000 dinars x the rv rate, if they rv....say x 3.25 = $3,250 less expenses from purchase = profit.

Exactly....

[JOLLY ROGER]

So what you are saying is that USD is being used primarily on the streets?

Think you and I are on the same boat. Or ship. AAARGGGG!!!

Right there with you my friend!! You can be part of my crew any day. Damn the torpedoes and full speed ahead !!!!!!!!!!

[jlldrs]

$ 28 trillion and 500 billion Iraqi dinars, or nearly 5 trillion banknote

I do not understand M0. M1 or M2 when it comes to economics, but with the statement above, if it is true , is this saying that they only had 5 trillion printed in physical currency or does it literally mean 5 trillion banknotes. If it means the 5 trillion banknotes, my guess would be there are alot of lower denoms in there somewhere 1, 5, 10, etc.

These articles can get so confusing sometimes.

[dinarck]

I think that if you read the article he is talking about the plan to remove 000's from circulation that has been completed, sent to ministers for their approval, then on to parliament for a vote.

“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.

Read more:

Well if it is complete then why do they need to vote on it? Wouldnt they have voted to begin the project of removing large notes from circulation? Again. What are Iraqis using for money? You simply cannot remove the majority of a money supply from a country. It is impossible. What they are saying is that the plan or project by top economist for the redenomination is complete and now a vote is needed to implement it. I vote no. haha

[WesParsons]

Well if it is complete then why do they need to vote on it? Wouldnt they have voted to begin the project of removing large notes from circulation? Again. What are Iraqis using for money? You simply cannot remove the majority of a money supply from a country. It is impossible. What they are saying is that the plan or project by top economist for the redenomination is complete and now a vote is needed to implement it. I vote no. haha

The CBI formulated the plan

the CBI wrote the plan up

the CBI defines economic policy

Parliament approves economic policy proposals and turns them into economic policy law.

It has NOT gone to parliament for a vote yet (good for us)

They are not talking about 'removing' money supply from the country, they're talking about moving the decimal three places left.

I vote NO as well.....wonder if it counts (i'd vote twice if it did)

[dinarck]

In answer to your firsrt question....Protocol. Research will tell you that the US dollar is being used predominantly in Iraq in day to day dealings.

UUUMMM......Say what? We have people in Iraq who tell us that is not the case. 000 notes are prevelant on the streets. Although it is true that USD is used as well. Now if an Iraqi wants to buy a car then sure he will use a combination of 000 notes and USD but so what. What does that prove as far as 000 notes have been removed? Nothing.

[bluemtnbri]

I feel that the removal of the zeros is like a stock having a roll back..... in essence you gain no value immediatley it just reduces the float. the new bills that will be put into circulation will reflect the 3 zero deletion... the new100 dinar bill would be equivalent to a 100,000 old dinar. an old 25,000 dinar will be the same as a new 25 dinar note. It is my belief that if this happens we may only see a 3-5 times our investment .....as the dinar will increase . I believe that it is still a good return on my original investment but far shy of the 1000- 3000 times return many people that believe will happen.

cheers and I hope I am wrong.

P.S. I really like this site as it has great info and allows for a super forum to share ideas and hopes on this dinar investment.

BLUE

[Quietlearner]

Please keep in mind who is invested in the Iraqi Dinar. Saleh is stating his opinion as he has in the statement some time ago that we were going to see 1.30 USD on the RV.

Not buying it. Are we really still believing that Iraq has control of how this is going to go down? I dont think it matters what Saleh thinks, I think it more falls into the hands of the US, the UK and a handful of others that have for the most part bought and paid for Iraq. No disrespect, just been at it to long to believe Saleh has any power at all let alone that kind.

Quietlearner