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Alexyn1006
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Just a question;

Please indulge me, I'm playing devil's advocate here on this one;So, if according to Shabibi, during his now infamous video, wherein he states that Iraq's inflation rate is relatively low, combined with the fact that Iraq can make money off its oil by selling via Turkey, and... they could reissue the lower denoms so people aren't carrying around so much cash.....with all of this considered, why does Iraq have to revalue sooner than later?

Also, I'm still confused on this (as I've heard differing opinions): Do the security ministers have to be re-seated to see an RV/RD/RI?

Thanks again, all. I value your thoughts.

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Unless they revalue, issuing smaller denominations means they will be carrying around even MORE wads o' money. They must RV AND issue the smaller denoms at the same time. Most as anyone can tell, security ministers SHOULD be seated, but we cannot agree if this is a requirement.

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Unless they revalue, issuing smaller denominations means they will be carrying around even MORE wads o' money. They must RV AND issue the smaller denoms at the same time. Most as anyone can tell, security ministers SHOULD be seated, but we cannot agree if this is a requirement.

No it doesn't. Just like Turkey and Zimbabwe have done all you need is a lopping off the zeroes to ease cash transactions and use LESS cash. It even says so right on the Forex site and I've posted that link.

Instead of 2,000 dinars to buy a loaf of bread you just lop off 3 zeroes and now it's 2 dinars. No revalue needed!

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No it doesn't. Just like Turkey and Zimbabwe have done all you need is a lopping off the zeroes to ease cash transactions and use LESS cash. It even says so right on the Forex site and I've posted that link.

Instead of 2,000 dinars to buy a loaf of bread you just lop off 3 zeroes and now it's 2 dinars. No revalue needed!

Anyone with an "Excellent Reputation" want to respond, please?

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No it doesn't. Just like Turkey and Zimbabwe have done all you need is a lopping off the zeroes to ease cash transactions and use LESS cash. It even says so right on the Forex site and I've posted that link.

Instead of 2,000 dinars to buy a loaf of bread you just lop off 3 zeroes and now it's 2 dinars. No revalue needed!

you have to raise the value, listen the iraqi people are not stupid they know their cpuntry is wealthy and they MUST give the purchasing power back rto their people how do they intend to do that. To raise the value of the dinar eventually back to where it was before saddam era they have even stated it in articles thats where they want to be, so you are very wrong.

P.S. Iraq is NOT turkey or zimbabwe please stop comparing them.

Edited by easyrider
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you have to raise the value, listen the iraqi people are not stupid they know their cpuntry is wealthy and they MUST give the purchasing power back rto their people how do they intend to do that. To raise the value of the dinar eventually back to where it was before saddam era they have even stated it in articles thats where they want to be, so you are very wrong.

P.S. Iraq is NOT turkey or zimbabwe please stop comparing them.

Nonsense. You increase purchasing by strengthening the economy which takes DECADES. It's not done by a fantasy RV that will NEVER happen.

Even Iraqi economists have said purchasing power will not be increased by any redonimation of the dinar. Sorry, you are wrong.

Just like how the Kuwaiti dinar has NOTHING to do with the Iraqi dinar.

The comparison used is WRONG. Yes the Kuwaiti Dinar crashed as a result of the 1990 Iraqi invasion, but this ONLY applies to notes in circulation at that time. After the Kuwaiti Government was restored, they issued a new series of banknotes with the same US Dollar exchange rate that the Kuwaiti Dinar had been fixed at before the war. Kuwaitis with old notes had to hand them in to be swapped for the new money. When the notes were being handed in, they were checked against the known serial numbers of notes in stockpiles at the Central Bank of Kuwait which had been stolen during the Iraqi occupation.

Stolen notes would not be exchanged - point blank. Other notes could only be exchanged by Kuwaiti residents during a very short period of time, after which all previous banknote issues were declared worthless. And in this case worthless means WORTHLESS. Current 20 Kuwaiti Dinar notes have a face value of about 75.00USD at the exchange booth. Older ones sell on ebay for about 10.00USD to collectors - and that's for one without any folds.

Investing in currency can sometimes be a good idea. Investing in the paper kind like the Iraqi Dinar, when you don't live anywhere near the issuing country is a BAD idea. Unlike the USA and UK, most countries demonetize their old currency. When Iraq issues new notes, and probably lops off four zeros in doing so, they are likely to give Iraqis a short window to exchange their old money, and then declare all previous banknote issues as being worthless. Joe Schmo won't be able to do very much with his prized 1,000,000 Iraqi Dinar cash investment once that happens.

http://www.iraqi-dinar.org/iraqi-dinar-currency/

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Nonsense. You increase purchasing by strengthening the economy which takes DECADES. It's not done by a fantasy RV that will NEVER happen.

Even Iraqi economists have said purchasing power will not be increased by any redonimation of the dinar. Sorry, you are wrong.

Just like how the Kuwaiti dinar has NOTHING to do with the Iraqi dinar.

The comparison used is WRONG. Yes the Kuwaiti Dinar crashed as a result of the 1990 Iraqi invasion, but this ONLY applies to notes in circulation at that time. After the Kuwaiti Government was restored, they issued a new series of banknotes with the same US Dollar exchange rate that the Kuwaiti Dinar had been fixed at before the war. Kuwaitis with old notes had to hand them in to be swapped for the new money. When the notes were being handed in, they were checked against the known serial numbers of notes in stockpiles at the Central Bank of Kuwait which had been stolen during the Iraqi occupation.

Stolen notes would not be exchanged - point blank. Other notes could only be exchanged by Kuwaiti residents during a very short period of time, after which all previous banknote issues were declared worthless. And in this case worthless means WORTHLESS. Current 20 Kuwaiti Dinar notes have a face value of about 75.00USD at the exchange booth. Older ones sell on ebay for about 10.00USD to collectors - and that's for one without any folds.

Investing in currency can sometimes be a good idea. Investing in the paper kind like the Iraqi Dinar, when you don't live anywhere near the issuing country is a BAD idea. Unlike the USA and UK, most countries demonetize their old currency. When Iraq issues new notes, and probably lops off four zeros in doing so, they are likely to give Iraqis a short window to exchange their old money, and then declare all previous banknote issues as being worthless. Joe Schmo won't be able to do very much with his prized 1,000,000 Iraqi Dinar cash investment once that happens.

http://www.iraqi-din...dinar-currency/

ok well obviously im not gonna convince but may i ask why are u here???? it makes no sense for you to stay around, do you even own dinar?

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ok well obviously im not gonna convince but may i ask why are u here???? it makes no sense for you to stay around, do you even own dinar?

I'm just trying to enlighten people to not throw their money away on an investment that will likely break even or only have a nominal increase for waiting YEARS. There have been naive fools who have sold everything or a lot of valuable assets to buy dinar and they will find themselves ruined.

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I'm just trying to enlighten people to not throw their money away on an investment that will likely break even or only have a nominal increase for waiting YEARS. There have been naive fools who have sold everything or a lot of valuable assets to buy dinar and they will find themselves ruined.

well, im glad you are concerned for my well being and others but i think many can make their own decisions if they find themselves in ruins then so be it. All we can do is wait and see what happenes none of us know exactly what will take place, I feel we are on the brink of something happening IMHO so we shall see.

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you have to raise the value, listen the iraqi people are not stupid they know their cpuntry is wealthy and they MUST give the purchasing power back rto their people how do they intend to do that. To raise the value of the dinar eventually back to where it was before saddam era they have even stated it in articles thats where they want to be, so you are very wrong.

P.S. Iraq is NOT turkey or zimbabwe please stop comparing them.

Iraq is NOT a wealthy country. Please stop saying it is. It is the 97th largest economy in the world. It has no manufacturing. It has no agriculture. It has no tourism. It does have rampant corruption and graft. It does have sectarian and religious violence. And it does have considerable oil and natural gas reserves. That's it. The only possible way they can raise the value of the dinar to where it was before the Saddam era is to dramatically reduce their money supply. The only possible way to do that is through a redenomination. After all, money is only piece of paper with ink on it. Once printed and disbursed, it can't be unprinted. A redenomination does not create or destroy value or wealth. It only changes the unit of measurement. You are delusional. Why do people insist on denying that the laws of economics do not exist in this case?

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Iraq is NOT a wealthy country. Please stop saying it is. It is the 97th largest economy in the world. It has no manufacturing. It has no agriculture. It has no tourism. It does have rampant corruption and graft. It does have sectarian and religious violence. And it does have considerable oil and natural gas reserves. That's it. The only possible way they can raise the value of the dinar to where it was before the Saddam era is to dramatically reduce their money supply. The only possible way to do that is through a redenomination. After all, money is only piece of paper with ink on it. Once printed and disbursed, it can't be unprinted. A redenomination does not create or destroy value or wealth. It only changes the unit of measurement. You are delusional. Why do people insist on denying that the laws of economics do not exist in this case?

I think you need to study on the history of Iraq's agriculture. Also, show me proof that they haven't reduced currency in circulation.

Edited by LaGrange
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I think you need to study on the history of Iraq's agriculture. Also, show me proof that they haven't reduced currency in circulation.

Since you won't bother to look.

http://www.fas.usda.gov/icd/iraq/Iraqfactsheet.asp

http://www.fao.org/nr/water/aquastat/countries/iraq/index.stm

They have great potential if irrigation is practiced, Saddam blocked the canals to the south to starve the people. The only problem I saw was every time a water well was drilled, they would hit oil. Sad huh?

Edited by LaGrange
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No it doesn't. Just like Turkey and Zimbabwe have done all you need is a lopping off the zeroes to ease cash transactions and use LESS cash. It even says so right on the Forex site and I've posted that link.

Instead of 2,000 dinars to buy a loaf of bread you just lop off 3 zeroes and now it's 2 dinars. No revalue needed!

Everything you stated is true except for the part where you said "to ease transactions and use LESS cash. If they lop 3 zeroes then 2,000 dinars would be 2 Dinars. The loaf of bread will cost 2 dinars, right?

2,000 IQD Loaf of Bread = 2 1,000 Dinar Notes (today)

2 IQD Loaf of Bread = 2 1 Dinar Notes (after redenom)

Still takes 2 notes... And yes this theory will apply to everything in Iraq, including big ticket items.

Edited by 20MillionDinar
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Everything you stated is true except for the part where you said "to ease transactions and use LESS cash. If they lop 3 zeroes then 2,000 dinars would be 2 Dinars. The loaf of bread will cost 2 dinars, right?

2,000 IQD Loaf of Bread = 2 1,000 Dinar Notes (today)

2 IQD Loaf of Bread = 2 1 Dinar Notes (after redenom)

Still takes 2 notes... And yes this theory will apply to everything in Iraq, including big ticket items.

I'm taking it straight from the Forex site:

In 2010, the Central Bank of Iraq announced their plans to redenominate the Iraqi Dinar to ease cash transactions. The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars. Although the announcement stated that the change would take place by the end of 2010, there has been no redenomination as of January 2011 and no further announcements have been made. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system."

http://www.xe.com/currency/iqd-iraqi-dinar

OF COURSE it makes things easier. Instead of dealing with thousands and thousands of dinars for buying groceries you're only dealing with a few dinar! The RV is a fictional scheme the dinar sellers have dreamed up to get naive sheep to buy dinar!

I really doubt you guys want to wait years and decades to get a few percentage points. You can do that in a few months or a lot sooner in the stock market.

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I'm just trying to enlighten people to not throw their money away on an investment that will likely break even or only have a nominal increase for waiting YEARS. There have been naive fools who have sold everything or a lot of valuable assets to buy dinar and they will find themselves ruined.

or......you can leave your money in the bank with no chance of increase in value (factor. fees, lack of interest) if you are going to park some money....IQD is not a bad place to park some, and take that nominal increase as you call it. Probably better than the net interest on your savings account. just saying

Edited by detroitjazzman
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or......you can leave your money in the bank with no chance of increase in value (factor. fees, lack of interest) if you are going to park some money....IQD is not a bad place to park some, and take that nominal increase as you call it. Probably better than the net interest on your savings account. just saying

No, the stock market is a lot better than the dinar any day. The dinar has been stuck at 1170 to 1 forver. You can make a lot more in stocks and options.

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I am not an economist but I cannot see the logic in the statement below. In this example, it states that after the re-denomination a loaf of bread that once costs 2,000 dinar now can be purchased with 2 dinar.

At the current value of the dinar (1170 to one US dollar) a loaf of bread that costs 2,000 dinar to buy costs about $1.70 US.

If after the re-denomination the loaf of bread (that still costs $1.70 US) can now be purchased for only 2 dinar, that means that 2 dinar has the same value as $1.70 US.

In this example the dinar has revalued to about $.86 US to one dinar. That is a number I have heard quite often!

I cannot see any other way to explain how 2 dinar can have the same purchasing power as 2,000 dinar without a revaluation. If the US lopped the zeros off the $100 bill and stated that the $1 bill now has the same purchasing power as the $100 bill, that would mean that the $1 bill has increased 100 times in value. I could then fill my gas tank in my car for about 50 cents.

If the larger notes are taken out of circulation and the lower denomination notes are released without the dinar revaluing, then an Iraqi would have to fork over 2,000 one dinar bills, 200 ten dinar bills, or 200 one hundred dinar bills to buy a loaf of bread that currently costs 2,000 dinar.

This would not accomplish what the CBI has stated below. Their main goal is to ease cash transactions and not make them 100 times worse! If you look at the quote below that is being discussed, it states "That would mean that the 1,000 IQD (pre-redomination) and 1dinar (post-redenomination) would both be worth the same amount in US Dollars." At its current value at 1170 to one US dollar, 1,000 dinar is worth about $.86 US. If after the re-denomination one dinar note now has the same value in US dollars as 1,000 dinar once did, then the one dinar note is now worth $.86.

"In 2010, the Central Bank of Iraq announced their plans to redenominate the Iraqi Dinar to ease cash transactions. The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars. Although the announcement stated that the change would take place by the end of 2010, there has been no redenomination as of January 2011 and no further announcements have been made. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system."

http://www.xe.com/cu...iqd-iraqi-dinar

Everything you stated is true except for the part where you said "to ease transactions and use LESS cash. If they lop 3 zeroes then 2,000 dinars would be 2 Dinars. The loaf of bread will cost 2 dinars, right?

2,000 IQD Loaf of Bread = 2 1,000 Dinar Notes (today)

2 IQD Loaf of Bread = 2 1 Dinar Notes (after redenom)

Still takes 2 notes... And yes this theory will apply to everything in Iraq, including big ticket items.

Edited by Miningstocksguy
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