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New Dinars for Old


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At the end of last month, a spokesman for the Central Bank of Iraq (CBI) told reporters that a plan to redenominate the Iraqi dinar will be presented to the Council of Ministers in the near future. (See here and here.) The Council is then expected to submit the relevant legislation to Parliament for a vote. If the lawmakers approve the project, all existing banknotes will be replaced with new currency at the rate of 1,000 old dinar for one new over some unspecified period of time.

Given Parliament’s current backlog, this change can hardly be imminent. Still, you might think they could get around to voting on the CBI’s proposal some time before the end of this year. In that case, the redenomination could presumably be completed by the end of 2012.

The process will necessarily involve both the exchange of new banknotes for old and the restatement of contractual obligations in terms of the new currency. Among other things, three zeros will have to be eliminated from the share capital of the ISX listed companies as well as from the number of shares each has outstanding. (This will keep the par value at one dinar.)

I’m told this should be a relatively straightforward change for the depository center to make. Trading should not have to be suspended for more than a few days and it may be possible to proceed in phases of a few names at a time so that the entire market does not have to shut down during the transition period.

Similarly, it seems reasonable to expect the CBI to exchange new dinars for US dollars at one thousandth the rate for old dinars. In other words, if the original rate were IQD 1170 = US$ 1, post-redenomination this would become IQD 1.170 = US$ 1.

All of this seems reasonably straightforward for anyone holding assets such as currency or shares inside the country. For those holding dinar cash outside Iraq, however, things may not be so simple. How and on what terms their old dinars will be convertible into the new currency remains an open question.

http://www.iraq-businessnews.com/2011/07/05/new-dinars-for-old/

Post-redenomination this would become IQD 1.170 = US$ 1.

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Did they quote that rate????

I am not seeing fact on the rate........ it is opinion---------->, Similarly, it seems reasonable to expect , you can do this too,( we can predict that), or (we can figure that will be), also you can write to this, All of this seems reasonably or How and on what terms their old dinars will be convertible into the new currency remains an open question. or we can speculate tons of things lol he dont have a clue, he speculate and taking article from the original started long time ago. They are recycled article with opinion, see all 0 article again about 44 now lol, see all the opinion inside and minimal change to them, finished, finalized, denied, approved, middle of 2012, end of 2012 , next, vote, we have decided, we conclude, lol what is next, eariler 2013? lol

Edited by chris2k4
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This sounds like something I was told from a "wise man".....point being if it is not a FACT and hasn't taken place then I'll go back to reading about the celebrity couples! Just as much BS but so much more interesting. Seriously tho, I do enjoy some opinions from those that seriously research this and understand every aspect of it. I'm hoping one of them actually nails it on the head re rates but till the actual change I have to look the other way!

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Thank you for the post! I would be very happy with a return like that! I don't think however, that they would publish that this early without an actual immediate RV, otherwise everyone would be running out and buying more Dinar.

I am sure that we will see this post all over on chat's and rumors, with all the guru's fighting over who's prediction is right! Now, they have a rate in print, and all they have to do now, is to name the date! Oh gosh, they already do that!! lol :P:P:P

Go RV!!

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Well, once they join the WTO, their currency should be able to be exchanged internationally. Certain banks like Chase, for instance, have a list of country codes that tell you which currencies can be exchanged through them. These are all countries that are members in the WTO. Kuwait appears on this list.

Now here's what I think: IF Iraq isn't admitted into the WTO (cuz of the Chapter VII sanctions or some other reason), they could still revalue, but the money could not be traded internationally. That would give their people purchasing power, but it doesn't help them in the long-run. There's the issue of repaying Kuwait, and the fact that so many countries have contracts there. They can't afford NOT to make their currency tradable globally.

Finally, given that so many countries such as China and the US already hold so much currency, it only seems logical they'd have to do this. So, it stands that when these two things happen (WTO membership and lifting of sanctions), we'll start to see some good things happen.

Again, my 2 cents worth, but it seems a logical observation.

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I read that Shibbi's plan was to move the decimal 3 places to the left therefore leading me to believe the rate would be 1.17.... I read that early on in one of the reports. probably the CBI....there are so many pages from these reports it took hours for me to read everything.

Dame

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People. There is no rate here. They said POST REDENOMINATION. I know many don't even know what that means since gurus have done such a good job convincing that it doesn't exsist but redenomination means 1000 IQD becomes 1 IQD so of course 1 USD will buy you 1.17 IQD POST REDENOMINATION. This is not a rate for RV which isn't even hinted at in this article. This article is telling us straight up that they are going to LOP for those who don't know the word redenomination. Also any who have bought the lie that they will give you 1000 new lowers for your 1000 IQD note need to read the first paragraph where they say that they will give 1 new note for your 1000 IQD note. Smoke, opinion, whatever, it is what we have been told for months now. Like the guy said in the article.....it is reasonably straight forward.

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Well, once they join the WTO, their currency should be able to be exchanged internationally. Certain banks like Chase, for instance, have a list of country codes that tell you which currencies can be exchanged through them. These are all countries that are members in the WTO. Kuwait appears on this list.

Now here's what I think: IF Iraq isn't admitted into the WTO (cuz of the Chapter VII sanctions or some other reason), they could still revalue, but the money could not be traded internationally. That would give their people purchasing power, but it doesn't help them in the long-run. There's the issue of repaying Kuwait, and the fact that so many countries have contracts there. They can't afford NOT to make their currency tradable globally.

Finally, given that so many countries such as China and the US already hold so much currency, it only seems logical they'd have to do this. So, it stands that when these two things happen (WTO membership and lifting of sanctions), we'll start to see some good things happen.

Again, my 2 cents worth, but it seems a logical observation.

The WTO does not concern itself with currency value issues, that is the arena of the IMF. When the US was complaining about a perceived unfair currency advantage of the yuan, were they threatening to take the issue up with the WTO? No, they were stating about bringing up to the IMF.

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At the end of last month, a spokesman for the Central Bank of Iraq (CBI) told reporters that a plan to redenominate the Iraqi dinar will be presented to the Council of Ministers in the near future. (See here and here.) The Council is then expected to submit the relevant legislation to Parliament for a vote. If the lawmakers approve the project, all existing banknotes will be replaced with new currency at the rate of 1,000 old dinar for one new over some unspecified period of time.

Given Parliament’s current backlog, this change can hardly be imminent. Still, you might think they could get around to voting on the CBI’s proposal some time before the end of this year. In that case, the redenomination could presumably be completed by the end of 2012.

The process will necessarily involve both the exchange of new banknotes for old and the restatement of contractual obligations in terms of the new currency. Among other things, three zeros will have to be eliminated from the share capital of the ISX listed companies as well as from the number of shares each has outstanding. (This will keep the par value at one dinar.)

I’m told this should be a relatively straightforward change for the depository center to make. Trading should not have to be suspended for more than a few days and it may be possible to proceed in phases of a few names at a time so that the entire market does not have to shut down during the transition period.

Similarly, it seems reasonable to expect the CBI to exchange new dinars for US dollars at one thousandth the rate for old dinars. In other words, if the original rate were IQD 1170 = US$ 1, post-redenomination this would become IQD 1.170 = US$ 1.

All of this seems reasonably straightforward for anyone holding assets such as currency or shares inside the country. For those holding dinar cash outside Iraq, however, things may not be so simple. How and on what terms their old dinars will be convertible into the new currency remains an open question.

This is speculation and the writer’s opinion... seeing is believing

http://www.iraq-businessnews.com/2011/07/05/new-dinars-for-old/

Post-redenomination this would become IQD 1.170 = US$ 1.

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The way I understand this, is when the new dinar appear there will be an exchange of a 25,000 for a 25 dinar. Giving the iraqi people the ability to buy bread for 1 dinar instead of 1000 dinar. So if we can find a place to exchange when the new money comes out we make a profit in a year or two but only at double or triple your inital investment. I would love to be rich but it does not look like it will happen in this life. I would love to just say "SMOKE" as others will but there have been too many articles stating remove the zeros. I will exchange my dinar (if I can) and wait for a profit but not the riches I have dreamed of. I am confused over pay scale issues, it would seem like an adjustment would also need to be announced to go along articles about dinar values changing but I have not seen any of those type of articles posted.

The biggest obstacle I see (for those not in Iraq) is a place to exchange without having to an enormous fee.

Edward

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Seems to be the most accurate compilation of all the CBI Press Releases, and the time frame from middle 2012 to end of 2012 will give adequate time to educate the public, print the Article 140 compliant notes, and spend/loan them into the economy.

RD complete in latter part of 2012, and any RV to follow in 2013.

I don't see this an an unreasonable interpretation or prediction.

UN Security Council is extending the funding for the CH VII progress until December 2011, still no GOI, no HCL, Erbil still not fully implemented, 6 to 12 months to complete the RD process.

This article seems to be the clearest and most realistic info we have seen out of Iraq concerning the RD timetable, to date...

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I think you misunderstood, the rate works out to be exactly the same as it is now. Your 25,000 dinar note that you purchased (if you do it right now) for 1170 dinar/dollar ($21.37, plus some mark up for the seller, probably) becomes a 25 dinar note, which is worth $21.37 (1.170 dinar/dollar). So you lose whatever transaction fees you paid on the buying and selling, and break even on the rate.

Exactly.....in the past, there has been more than one mention of going 1-1, but it's not clear as to whether or not they will do that simultaneously with the rd or some time afterward.

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This is smoke. READ the article for your self .............LOOK at the second comment.

Amastar says:

July 5, 2011 at 12:57 pm

Im sorry, the comment above was made by the owner of a dinar investment website. Those were not my own words. I hit submit before giving credit. I appoligize.

do your own diligence.

Diligence

From Wikipedia, the free encyclopedia

A Russian medal awarded for diligence and zeal

For other uses, see Diligence (disambiguation).

Diligence is steadfast application, assiduousness and industry — the virtue of hard work rather than the sin of careless sloth.

Diligent behaviour is indicative of a work ethic — a belief that work is good in itself.[1]

Expertise in a field such as music requires about 10,000 hours or 10 years of practice and so diligence is commonly required to achieve this.

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Actually, these were the two comments.

The article seems legit.

*******************************

Amastar:

July 5th, 2011 at 12:53 pm

The parliament was scheduled to vote on the dropping of the three zeros.

I have received very good information that from several sources that the parliament has in fact voted and passed that into law along with a few other laws.

Amastar:

July 5th, 2011 at 12:57 pm

Im sorry, the comment above was made by the owner of a dinar investment website. Those were not my own words. I hit submit before giving credit. I appoligize.

*****************************************

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all previous 3 zero attemps have been rejected in the past, what about the shabibi video, we have decided, but when?, oh it supposed to be rejected 2 time from CBI, do you trust these article or bs?

The Central Bank wanted to remove the zeros three years ago, we alleged that it was impossible. They wanted to do it again last year and we rejected the proposal again. The issue is currently brought up once again, but the Ministry of Finance and Economics insists that Zeros will remain,” said Fazil Nabi, the deputy minister of finance and economics. Nabi said removing the zeros will not reduce the inflation rates as Iraq’s inflation has been stable and remained low for quite some time.

http://www.iraq-businessnews.com/2010/08/24/zeros-will-not-be-removed-from-iraqi-currency/

This should have been done way before if they really wanted to do it.

Edited by chris2k4
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People. There is no rate here. They said POST REDENOMINATION. I know many don't even know what that means since gurus have done such a good job convincing that it doesn't exsist but redenomination means 1000 IQD becomes 1 IQD so of course 1 USD will buy you 1.17 IQD POST REDENOMINATION. This is not a rate for RV which isn't even hinted at in this article. This article is telling us straight up that they are going to LOP for those who don't know the word redenomination. Also any who have bought the lie that they will give you 1000 new lowers for your 1000 IQD note need to read the first paragraph where they say that they will give 1 new note for your 1000 IQD note. Smoke, opinion, whatever, it is what we have been told for months now. Like the guy said in the article.....it is reasonably straight forward.

I wonder how long it will take them to start bumping it up if they rd/lop. Iraq is blowing up :D

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