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Same News - But Better Written?


Mr. Cool
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Hi Guys, Been a while since i have posted but just came across this article, after doing some research. I think its written a little better as to what the CBI has said, and if i'm not mistaken it shows a better outcome????

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.

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

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Its just my take but why talk about introducing high and low denomination bills unless your adding value to the entire structure? IMHO they low ball an RV now, with the release of high and low denoms, then over the next few years start pulling the 000 bills out of circulation. I think this would allow for a "time release" RV and allowing the rates to return to pre saddam prices???

Edited by Mr. Cool
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I wonder what Adam thinks about these articles and what is being said in the news, and i wonder if his contact at the CBI would know more on what is going on?

I always look for Adam to give us insight to this investment, thanks for all he does and the Mods!!!

Go RV!!!!

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I wonder what Adam thinks about these articles and what is being said in the news, and i wonder if his contact at the CBI would know more on what is going on?

I always look for Adam to give us insight to this investment, thanks for all he does and the Mods!!!

Go RV!!!!

Good questions. Would you remember to add this to the "Questions" thread for next Wednesday's chat?

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Wow !!! We have to wait until next Wednesday ???? just to get his opinion on some of these news articles ??? I thought he was in this with all that is on his forum.. I am very confussed by this and would love to hear Adam's thoughts Thank you

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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."

I hope this is just a bad translation. A 25,000 dinar note BECOMES a $25 dinar note? If no lop then shouldn't that say something more like, a $25,000 dinar note will be replaced with a new $25 dinar note, or something to that effect?

They have had a lot of articles come out suggesting this and also stating how this dropping the zeros would NOT AFFECT the CURRENT exchange rate.

So for example, the current exchange is $1 per 1170 dinar

So if we took a $100 USD that would get you $117,000 dinar based on current exchange rate.

If they dropped the zeros and came out with a new exchange rate of $1.17 dinar to $1 USD, and you take $100 USD x $1.17 dinar = $117 dinar per $100 USD.

In this example you end up with the exact same exchange rate which does not effect the current exchange rate.

Soooooo....the question is....after they drop these zeros, will they allow the current $25,000 dinar note to be treated as still being worth $25,000 dinars OR will they just come out and say, nope, that $25,000 dinar note is only worth $25 dinar now and the $25 dinar note is now based on a $1.17 USD exchange rate....which ends up being the exact same exchange rate the current $25,000 dinar note is now. This would reflect a dropping of the zeros where it would not affect the current exchange rate as other articles have stated.

So are we all just reading into things we want to believe by trying to justify our way of thinking or are all these articles just misleading with a lot of bad translations to confuse us?

If this thing happens here in the next week or so I guess whatever they do we are about to find out exactly what all this means in the end. I just hope whatever the new rate is that the current $25,000 dinar notes remain being accepted as having $25,000 dinar and they don't actually treat them as BECOMING just a $25 dinar note!

And IF this is what they do, then we will have to hold onto our dinar for another 6 months to 3 years or whatever time it takes them to get the rate up to $3.51 just to triple our investment, minus the premiums we paid to buy this dinar over and above the current exchange rates.

Don't shoot the messenger. I'm merely looking at this possibility based on all their articles that came out over the last several months where they have stated dropping the 3 zeros would NOT effect the current exchange rate and the only way this can't effect the current exchange rate it would have to happen like the above example. Hopefully those articles were just misinformation being put out to distort from what really will happen and all the gurus are right in their thinking that it can't happen this way.

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I am a little confused here as all the rumors have been floating around for years. Way back when, we knew they were going to pull back all the 25K notes and take them out of circulation? There would be no loss in the value of the 25K notes. This would destroy the Iraqi economy. Just think about it, I am an Iraq with a 25K note in my pocket and you are now telling me it is only worth 25.00???? Something is wrong with this picture and it just doesn't make any sense to me. I was under the impression the the notes would co-exist together for a period of time as the 25K are taken out of circulation? Correct me if I am wrong but this is what I have been lead to beleive for 6 years. No one here can bust my bubble so just let me know if I am right or wrong to set the record state from someone with the experience and the background to back up their statements.

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Am I reading this correctly? That would mean that a purchase of 250,000 dinar @ an approximate cost when purchased last year of $250 would become

$250?

Just a thought. Do you think that Adam would be working extremely hard to set up investments for us if we were going to be no better than when we bought the dinar? I don't think so. All our speculation will soon be over and we will know. If I'm a millionaire when it RVs, great. I'm a happy camper! If it I get my money back and make just a few bucks, then its back to the drawing board. I'm not happy, but life goes on.

Personally, I think it is going to be a financial windfall and I'll be doing my Snoopy dance.

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How in the world is a redenomination a better outcome???????????????????????????????

NNNNNNNNNNNNNOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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How in the world is a redenomination a better outcome???????????????????????????????

NNNNNNNNNNNNNOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

might be for long term which slaeh stated but we will be long gone before it takes place they want to pull back the 25k notes get them out of circulation roast them in a fire or malikis can wipe his booty with them i don't care. they wil be releasing the lower denoms. So many lopsters want to tell me this has been a plan for years i mean years. Its been said in articles before also and youre gonna tell me they wanna redenominate when they have little inflation and want to get back in with the big boys on the market trading to have a poor iraqi have a 25k note and all of a sudden screw him and give him 25 lol now tell me does that make any sense. I wil admit they will than likely redenominate later and ONLY oncce their 3 zeroes are back and destroyed we will be long gone!!!!!!!!!

Edited by easyrider
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I think maybe the purpose to release the small denoms before the adjustment is so they are readily available and accepted for use when the change happens. Does that make any sense?

It makes sense the only thing that doesn't make sense is how a species like humans can have such different patterns of thought processes.Even baboons act and process the same whether in Africa or the St. Louis zoo. The folks in the ME just don't think like we do (my opinion).I guess it's the choices that GOD allowed us to make.

Your reasoning makes sense. Thx

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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."

I hope this is just a bad translation. A 25,000 dinar note BECOMES a $25 dinar note? If no lop then shouldn't that say something more like, a $25,000 dinar note will be replaced with a new $25 dinar note, or something to that effect?

They have had a lot of articles come out suggesting this and also stating how this dropping the zeros would NOT AFFECT the CURRENT exchange rate.

So for example, the current exchange is $1 per 1170 dinar

So if we took a $100 USD that would get you $117,000 dinar based on current exchange rate.

If they dropped the zeros and came out with a new exchange rate of $1.17 dinar to $1 USD, and you take $100 USD x $1.17 dinar = $117 dinar per $100 USD.

In this example you end up with the exact same exchange rate which does not effect the current exchange rate.

Soooooo....the question is....after they drop these zeros, will they allow the current $25,000 dinar note to be treated as still being worth $25,000 dinars OR will they just come out and say, nope, that $25,000 dinar note is only worth $25 dinar now and the $25 dinar note is now based on a $1.17 USD exchange rate....which ends up being the exact same exchange rate the current $25,000 dinar note is now. This would reflect a dropping of the zeros where it would not affect the current exchange rate as other articles have stated.

So are we all just reading into things we want to believe by trying to justify our way of thinking or are all these articles just misleading with a lot of bad translations to confuse us?

If this thing happens here in the next week or so I guess whatever they do we are about to find out exactly what all this means in the end. I just hope whatever the new rate is that the current $25,000 dinar notes remain being accepted as having $25,000 dinar and they don't actually treat them as BECOMING just a $25 dinar note!

And IF this is what they do, then we will have to hold onto our dinar for another 6 months to 3 years or whatever time it takes them to get the rate up to $3.51 just to triple our investment, minus the premiums we paid to buy this dinar over and above the current exchange rates.

Don't shoot the messenger. I'm merely looking at this possibility based on all their articles that came out over the last several months where they have stated dropping the 3 zeros would NOT effect the current exchange rate and the only way this can't effect the current exchange rate it would have to happen like the above example. Hopefully those articles were just misinformation being put out to distort from what really will happen and all the gurus are right in their thinking that it can't happen this way.

"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."

OK, this statement completely contradicts the above statement. This statement would appear to imply the $25k dinar notes would still represent $25k dinar AFTER they drop the zeros. Otherwise if this were not the case then the larger $25k dinar note would not make larger transactions simplified.

So I LIKE this second statement much better! LOL

They did say that right before this does happen there will be tons of BS misleading articles coming out. So here's hoping the first statement is the BS misleading one and this second one is more accurate! I just wish they would get this done already so we all can know exactly what is what and be able to move on!

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I see it like this....they are going to RV but at a very low rate (plz don’t flame me on this its just IMHO) at the same time start releasing high and low denominations. Say at a rate of .0086 to start, this turns my 25k note that’s worth about $25 bucks (speaking as an Iraqi…) into say a little over $200. Now to do this I'm going to head to my local Iraqi bank and turn them in, as I’m just a normal hard working Iraqi, and feel blessed that the government has done me well and my measly little $25 is now more then $200. Hell I’m not rich but I can buy more, and that’s what was promised. Now I walk out of the bank with 200 brand new low denomination Dinar or 2 new 100’s.

Now as for speaking as the government, I have raised the currency value, as required by my obligations (no one said by how much) and I have started to remove all the triple 0 notes, thus curbing inflation and making trade easier for the masses.

As time continues the Dinar begins to increase as the economy grows, step by step, they eventually make it to the pre saddam rates of lets say $3.

Back to us the investors, we all see the new rate , know that the lower bills are out there but decide to take the .0086, and turn our investments in for a 1000% increase (forgive the math, plz its just an example), some will stay in turning their bills in for new bills others will get out and say “well I made something”

This is just my opinion, and not what I would hope for but I see this as a very real scenario.

Edited by Mr. Cool
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might be for long term which slaeh stated but we will be long gone before it takes place they want to pull back the 25k notes get them out of circulation roast them in a fire or malikis can wipe his booty with them i don't care. they wil be releasing the lower denoms. So many lopsters want to tell me this has been a plan for years i mean years. Its been said in articles before also and youre gonna tell me they wanna redenominate when they have little inflation and want to get back in with the big boys on the market trading to have a poor iraqi have a 25k note and all of a sudden screw him and give him 25 lol now tell me does that make any sense. I wil admit they will than likely redenominate later and ONLY oncce their 3 zeroes are back and destroyed we will be long gone!!!!!!!!!

weren't you talkin' "in Country" redenomination yesterday?

I never said they were gonna redenominate. :)

Redenomination: http://en.wikipedia.org/wiki/Redenomination#Redenomination

does not fit this scenario, Iraq does not have a high inflation situation.

Why do you think they would redenominate later????????? :huh:

Edited by sportfisher
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Maybe some one can help me understand, but when there is talk of reducing the value of 25,000 note to a 25 note, it only makes sense to me to do this if it were a direct result of an over abundance of dinars in circulaton- dilution in a manner of speaking. However, i have read, or think I have read that there is not enough cash in circulation for the average personin Iraq. So even if there were 28 trillion dinars issued and in circulation at some point, where are they now and how can there be a lack of dinars to go around now when they had plenty when they only had 25 billion in circulation before the new dinars were printed. seems to me if there is a lack of cash in people's hands that a large portion of the 28 trllionis either in a shoe box or back in the hands of he govenment -- maybe??

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