New Dinars for Old

[Snazzy11]

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/

[DinarSeeker]

This article is dated July 5, 2011. Right now, I wouldn't believe much of anything from the news outlets in Iraq. Every article that has come out over the last few months have been proven misinformation. If you were Iraq, confusion would be your best ally right now. And with their track record of continual contradictions from the CBI to the GOI on a daily basis, I can only surmise that all Iraqis currency will be honored in current form, in any country per executive order 13303. This order gives me legal right to invest into Iraq. The real answer to this is to wait and see how it will all play out. For now, you should refrain from spreading this kind of article to people here, it cannot be proven, or disproven. Therefore, it is only conjecture, and that is where it will remain.

[Luigi1]

Dinar Banker & Dinar Trader will buy back your old ID at 15% commission & re- issue new ID at another 15% commission in addition to the initial 15% commission originally purchased. That's a whopping 45% after all is said & done at ID 885 marked up to $1190 per million ID per transaction. The ID traders are making a killing & loving every minute of it.

[en1gma]

maybe its smoke maybe not...

Eventually iraq will have to rd, post rv , pre rv or simultaneously

Either way at least the current iqd will look pretty as a table top piece or something at the least hahaha

[Redriverfan]

Can we buy the new currency in the USA.

[2fast4u2c]

This has been posted....5 times.

[Darren77th]

Dinar Banker & Dinar Trader will buy back your old ID at 15% commission & re- issue new ID at another 15% commission in addition to the initial 15% commission originally purchased. That's a whopping 45% after all is said & done at ID 885 marked up to $1190 per million ID per transaction. The ID traders are making a killing & loving every minute of it.

This has been my point for a long time. Dinar dealers I am begining to think are going to end up being the only people that will make a profiton this. I have said in previous post that with an R/D we ill lose almost half of what we originally paid. We wont come even cllse to breakkng even. Thus this why so many have called this a SCAM. Because this would be a text book definition of what a scam is. Im very upset with myself for falling for it. Now im stuck with millions of dinar on the glimmering hope it might go up enough I can break even

[Retiredofficer]

This article is dated July 5, 2011. Right now, I wouldn't believe much of anything from the news outlets in Iraq. Every article that has come out over the last few months have been proven misinformation. If you were Iraq, confusion would be your best ally right now. And with their track record of continual contradictions from the CBI to the GOI on a daily basis, I can only surmise that all Iraqis currency will be honored in current form, in any country per executive order 13303. This order gives me legal right to invest into Iraq. The real answer to this is to wait and see how it will all play out. For now, you should refrain from spreading this kind of article to people here, it cannot be proven, or disproven. Therefore, it is only conjecture, and that is where it will remain.

Thanks for clearing the the smoke bank.

[RV on my mind]

I'm starting to think this may have been a scam. If this is true it dosen't suprise me that Ali left town. Wouldn't you have high tailed it outta here?

[RVnow4meplease]

This article is dated July 5, 2011. Right now, I wouldn't believe much of anything from the news outlets in Iraq. Every article that has come out over the last few months have been proven misinformation. If you were Iraq, confusion would be your best ally right now. And with their track record of continual contradictions from the CBI to the GOI on a daily basis, I can only surmise that all Iraqis currency will be honored in current form, in any country per executive order 13303. This order gives me legal right to invest into Iraq. The real answer to this is to wait and see how it will all play out. For now, you should refrain from spreading this kind of article to people here, it cannot be proven, or disproven. Therefore, it is only conjecture, and that is where it will remain.

I agree with you.

I'm starting to think this may have been a scam. If this is true it dosen't suprise me that Ali left town. Wouldn't you have high tailed it outta here?

This is not a scam. Trust me the USA need this RV to help out our debt problem. If not we will go Belly Up!

[frankc]

I'm starting to think this may have been a scam. If this is true it dosen't suprise me that Ali left town. Wouldn't you have high tailed it outta here?

I'm having my doubt's too and also consider that could be why Ali moved to another country. Problem Iraq is going to have is if they make it difficult for people in the USA to exchange their dinar holdings there will be millions of very angry people to deal with as well as our own govt for allowing this to happen.

[RV on my mind]

I think that what our current asminstration wants (for us to go belly up). Thast why I wonder.

[en1gma]

maybe they do want us belly up....then they can finally adopt the amero currency like the euro and be that much closer to one world government...there's penty of evidence that supports it...scary thought...

If that's true, our country's founding fathers are rolling around in their graves right about now

[Luigi1]

I agree with you.

This is not a scam. Trust me the USA need this RV to help out our debt problem. If not we will go Belly Up!

The USA will belly up with or without RV.. .RV only delays the USA downfall by a few months. We are broke. Default will happen sooner rather than later.

[DinDinar]

Sorry to say this, but don't write ridiculous statements like "this administration wants to see us go belly up"...come on. Let's act civilized and be reasonable. That's not what this or any administration wants in this country.

[Luigi1]

Sorry to say this, but don't write ridiculous statements like "this administration wants to see us go belly up"...come on. Let's act civilized and be reasonable. That's not what this or any administration wants in this country.

I never said the government wants to see us go belly up. Government shutdown is a real possibility if we don't get a handle on the nat'l debt or borrow more money to keep running.

ID RV will not solve government problems. It may only delay while we wait on a miracle.

[tandy]

Folks, it's difficult not to be disappointed about an rv but...it does not help to be gloomy and doomy...it is what it is so for you folks that haven't been invested for 5-8 years like some...try to relax and forget about this for awhile like many of the veteran investors have...the people controlling the finale of this don't give a horse biscuit about anything except what's in it for them in the long haul & they are going to make sure every avenue is covered for their benefit b4 an rv takes place...the people that keep giving all the wonderful news of an rv tomorrow or next Monday or next whenever so far have not proved they know one iota more than you or me...so don't abandon ship....you probably were not rich before you invested in this so weather the storm cause there just might be a pot of gold at the end of the rainbow afterall...cheers friends

[andy3978]

Isnt there some law stating a currency can only be changed after a 10 year period? I believe this is the case.

[HopefulTxn]

Isnt there some law stating a currency can only be changed after a 10 year period? I believe this is the case.

Based on the fact that there have been a few countries that have redenominated multiple times within a 10 year period, which would have completely replaced their circulating currency with a new one, there does not seem to be any restriction on how often a country/central bank replaces their currency.

Brazil redenominates 18 zeros in 6 operations (1967/70/86/89/93/94)

Argentina 13 zeros in 4 operations (1970/83/85/92)

Israel 9 zeros in 4 operations (1980/85)

Peru 6 zeros in 2 operations (1985/91)

http://mpra.ub.uni-muenchen.de/23195/1/MPRA_paper_23195.pdf

[tjmunson]

So many newbies, so much to learn. Just sit tight people and don't believe everything you read.

Peace

[TruthNTime]

Sorry to say this, but don't write ridiculous statements like "this administration wants to see us go belly up"...come on. Let's act civilized and be reasonable. That's not what this or any administration wants in this country.

What fairy tale have you been reading? There is nothing rediculous about the statement in question. I do however wish to point out the intent on your part to stifle another persons viewpoint, which shows your intolerance to the anti-establishment or intelligent point of view.

The founding fathers of this country were speaking the same language (the King will see this nation belly-up) just before the undertaking of removing the snakes head! Docile and naive are those that believe freedom, liberty, or prosperity are born into a man, and that all men are lovers thereof! A free man knows and recognizes the inalienable rights endowed by the creator, resists tyranny and despotism, and see's a tyrant for what he is and realizes the effect of his tyranny. Any man who stands against the founding principals seeks ruin, financial and otherwise for the country, territory, or village he represents. Tyranny is destruction and loss economically and institutionally for the many, great gain economically and institutionally for the tyrant, the end result is a nation "belly-up". You should get a grip on reality and replace your tired false patriotism for the real thing. Was the King civilized DinDar, did we gain freedom by denying truth and free speech, is it our place then to blindly trust government and silence or repress suspicion thereof? Seriously, I can't believe adults think this way.

[rnldtippitt]

Omg. Here we go again. The porpoise of the re-denomination is ease of transactions in country. The re-denomination I'd in country. The larger bills will continue top be used for large transactions only. It's their backup. Their banking system and power supply behind it it too limited and tenuous to be relied upon in and of itself. Nuff said.

[kid4dinar]

What fairy tale have you been reading? There is nothing rediculous about the statement in question. I do however wish to point out the intent on your part to stifle another persons viewpoint, which shows your intolerance to the anti-establishment or intelligent point of view.

The founding fathers of this country were speaking the same language (the King will see this nation belly-up) just before the undertaking of removing the snakes head! Docile and naive are those that believe freedom, liberty, or prosperity are born into a man, and that all men are lovers thereof! A free man knows and recognizes the inalienable rights endowed by the creator, resists tyranny and despotism, and see's a tyrant for what he is and realizes the effect of his tyranny. Any man who stands against the founding principals seeks ruin, financial and otherwise for the country, territory, or village he represents. Tyranny is destruction and loss economically and institutionally for the many, great gain economically and institutionally for the tyrant, the end result is a nation "belly-up". You should get a grip on reality and replace your tired false patriotism for the real thing. Was the King civilized DinDar, did we gain freedom by denying truth and free speech, is it our place then to blindly trust government and silence or repress suspicion thereof? Seriously, I can't believe adults think this way.

Right on Right On.. this administration want to destroy this system. he has said it. That is what he ran on "CHANGE" well i don't wanty any part of it. This Congress better not vote to raise the debt . if they do. more collapse of this country. He wants this country to fail. He wants us to depend on this gov't He wants to bail out Greece for what so he can say look how good Greece is doing we shoild be just like them. him..and his change.. to much said goodnight.

[Carrello]

Isnt there some law stating a currency can only be changed after a 10 year period? I believe this is the case.

NO