Central Bank Governor Sinan al-Shabibi in talks with the prime minister, Noor al-Maliki, on how to go ahead with the bid to issue dinars

[coldwarvet]

Thank you sonny1, for weighing in. I really appreciate your words and insight. I also agree that disrespecting others, whether or not they do the same to you, is inappropriate. The DinarVets site, which you and Adam have worked so hard to build and maintain, deserves better.

I very much appreciate the varying points of view I find here on DinarVets. Much of the information, pro- and con-RV, is very valuable and clearly expressed.

But that appreciation evaporates when people start taking personal shots at each other. In my six plus decades on this planet, I've learned that sometimes you're more of a man when you don't fight back, even in the face of provocation. I'dl like to see more of us conduct ourselvves that way while we're online here. Thanks for listening.

[Darin]

keep and theadicts, please stop talking to people like there stupid. to be honest you guys have no clue what they are going to do, unless of course you are believing what iraq says. lol. keep i always tell people to respect you and your opinion, please do the same to others. plus why would iraq lop it makes no financial sense. they gain no purchasing power and build no private sector. there is a 0% chance they lop, they would of done it 2 years ago, plus the imf will never-never-never-never let them lop. theadicts who were you when you were banned no-one who just joined on july 13th would waste there time on here if they thought they were lopping.... ill just look up your ip address... stop it guys

I agree, KeepM does bring a grounded approach... Which is necessary because like you said, we don't know what they're going to do.

Here's another thought, but doesn't really prove anything really, but something to think about.

If you were Shabbibi, what would you be more proud of being a part of?

A re-value of the dinar?

Or a re-denomination of the dinar?

One says success

Another shows failure

Hmmmmm

[IQD1217]

I agree . It's ok to disagree with each other and we learn more from the different views of people.I feel to personally attack someone is childish and should be banned from the site.

[sonny1]

i like keep, he is good for the site, he brings a different approach to things, i find him very sharp, and knows what he is talking about, but like some believe okie he is believing iraq.... horse a-piece

[proteus]

I believe this is GREAT NEWS,

Whether they RD or not, They still have to PULL the 000's Bills off the street,

they need to do this to have funding equal to release the new smaller denoms...

Thus chances are that they will trade 1 to 1, OLD dinar for NEW dinar,

then appreciate the value of the New dinar smaller denom's...

This method is exactly what happened in Kuwait,

also the same when Paul Bremer revalued currency in Iraq,

citizens had time to exchange OLD Dinars for NEW Dinars, 1 to 1,

then after a set amount of time the OLD Dinars became useless,

it appears that History could repeat itself....

ALSO,,

Since IRAQ seems to be modeling their currency similar to the USD,

it it only logical that they could model the change over policy,

the same as history has proven it to have happened...

Shabibi said: " issue dinars with lower denomination and higher appreciation."

He never said "PRINT" new lower Denoms, HE SAID "ISSUE",

the NEW LOWER DENOM's are probably already printed,

The question is when will the initiate issuing them!

IMHO,

We need to watch for:

M2 in circulation dropping, (which just dropped 3% yesterday)

Inflation rising approx. 7.5% or higher,(which is very close now)

Taxes/tariffs activity of bi-lateral pressures at ports,(taxes and tarrifs were just passed this week)

these indicators will push Shabibi to pull the trigger.

Just my on the post...

Edited July 16, 2011 by proteus

[Darin]

May be noteworthy to make the point that the M2 valued by the CBI is not valued the same way in the US.

Not sure on the details, but I am looking for a thorough explanation on that.

Also, their on a more up to date banking system, or implementing a new banking system

Basel 3

U.S. is on basel 1 with parts of 2 implemented..

[acceb75]

May be noteworthy to make the point that the M2 valued by the CBI is not valued the same way in the US.

Not sure on the details, but I am looking for a thorough explanation on that.

Also, their on a more up to date banking system, or implementing a new banking system

Basel 3

U.S. is on basel 1 with parts of 2 implemented..

If you figure that out let us know. I think that explanation would help a LOT

[coldwarvet]

Darin, I wholeheartedly agree with acceb75. That info would be worth a whole new post. Thanks in advance!

[keepmwlknfny]

Hey Keep,

Problem with Turkey is that they were in the middle of their hyperinflation crisis. When they removed 6 zeros in 2005, they also had to set a plan to control inflation. Iraq had hyperinflation, but brought it under control and have steadly brought the exchange rate up from its low of more then 4000 iqd to 1 usd. I understand your thoughts on the "lop" being possible and I agree with you that there is always the possibility, but it is not necessary for them to do it in order to control inflation like Turkey did. Shabbs, the CBI, and the CPO did a good job at saving the dinar and its increase from that low to todays value of 1170 iqd to 1 usd is testimony to that. To rednominate Iraqs currency would make all that they accomplished for not. If they were going to do it, they could have done it in 2003 when they released the current denominations.

My stance isent that the RD is needed to control inflation, but the fact that RD are done also to show stability and to erase the after affects of hyperinflation....in order to show the world that their monetary policy mistakes are a thing of the past.....

As for why they didnt do it in 2003, well the same could be the said for the reason they didnt RV......cause with a RD, a RV would be sure to follow.....

But more then likely its because they wanted to get things under control, get a handle on inflation first, instead of trying to redenominate during high inflation and fail like alot of countries have done.....better to do it right the first time eh?

keep and theadicts, please stop talking to people like there stupid. to be honest you guys have no clue what they are going to do, unless of course you are believing what iraq says. lol. keep i always tell people to respect you and your opinion, please do the same to others. plus why would iraq lop it makes no financial sense. they gain no purchasing power and build no private sector. there is a 0% chance they lop, they would of done it 2 years ago, plus the imf will never-never-never-never let them lop. theadicts who were you when you were banned no-one who just joined on july 13th would waste there time on here if they thought they were lopping.... ill just look up your ip address... stop it guys

No, your right, I dont know exactly what they are going to do.....thats why Im here lol.....but these articles are about a RD....all wishful thinking aside.....I dont want it as much as the next guy but I dont think we can ignore it....

Iraq does gain purchasing power with a RD and a RV....which is exactly what the articles point out, and is usually what happens after the RD process just like Turkey did.....Now of course they are two different countries but thats just an example of how the purchasing power is increased with a RD.....why are you so sure they would have done it two years ago if they were def going to do it?? And what is it that makes you think the IMF will never let this happen??

I don't sugar coat things either. Im diabetic

LOL well its good that you have a sense of humor about it!! That was pretty funny!!

[tjmunson]

My stance isent that the RD is needed to control inflation, but the fact that RD are done also to show stability and to erase the after affects of hyperinflation....in order to show the world that their monetary policy mistakes are a thing of the past.....

As for why they didnt do it in 2003, well the same could be the said for the reason they didnt RV......cause with a RD, a RV would be sure to follow.....

But more then likely its because they wanted to get things under control, get a handle on inflation first, instead of trying to redenominate during high inflation and fail like alot of countries have done.....better to do it right the first time eh?

No, your right, I dont know exactly what they are going to do.....thats why Im here lol.....but these articles are about a RD....all wishful thinking aside.....I dont want it as much as the next guy but I dont think we can ignore it....

Iraq does gain purchasing power with a RD and a RV....which is exactly what the articles point out, and is usually what happens after the RD process just like Turkey did.....Now of course they are two different countries but thats just an example of how the purchasing power is increased with a RD.....why are you so sure they would have done it two years ago if they were def going to do it?? And what is it that makes you think the IMF will never let this happen??

LOL well its good that you have a sense of humor about it!! That was pretty funny!!

Black and white thinking in a rainbow world. You know I respect your intellect and knowledge Keep. However, when dealing with Iraq and this investment, you can not play it by the book. What you think won't happen is exactly what most likely will happen. The smoke and numbers are so thick with rhetoric God only knows what will happen. All I know for sure is that we can't go off of the numbers and articles being released by the Iraqi news sources.

Sonny....please accept my apology for what has taken place between us in the past. I was angry with you for putting your credibility on the line by throwing out a rate and a date (sort of). I have always had such respect, and still do, for your intell, that when you did what you did and it fell through I was pissed that you put yourself in that position. Please accept my apology and know that I still respect fully what you bring to this investment.

peace

[jmw]

plus why would iraq lop it makes no financial sense. they gain no purchasing power and build no private sector. there is a 0% chance they lop, they would of done it 2 years ago, plus the imf will never-never-never-never let them lop.

Not very good advice Sonny...there is actually a very high probability that they will...the imf has no say in whether they re-denominate or not...you can't ignore all of the articles that continue to come out that clearly spell out the process of re-denominating....the goal of everyone here it to make as much as possible off of this investment and the best way to do that is to understand all of the options that are possible and to plan accordingly....Iraq is in no position to re-value based on a money supply of 59 trillion...but they are in a very good spot to re-denominate....many look at this as a bad thing but it is the best possible scenario for the value of the IQD to continue to rise...they can't jump the price thousands of percents over night...it can only go up gradually.

[theadicts]

Why does it matter who I am Sonny1. Also you can look up my IP all you want, I love having a static address. Whats the grudge? You can most likely figure out who I am through other ways, sounds like a fun game!

Just because I have joined does not excuse the fact that Iraq is saying re-denomination. I consider they could RV then RD. Or vice versa.

Going off of their articles is more valid than saying what should or is thought to happen!

Hopefully we can end this ride on a good note!

[sonny1]

Not very good advice Sonny...there is actually a very high probability that they will...the imf has no say in whether they re-denominate or not...you can't ignore all of the articles that continue to come out that clearly spell out the process of re-denominating....the goal of everyone here it to make as much as possible off of this investment and the best way to do that is to understand all of the options that are possible and to plan accordingly....Iraq is in no position to re-value based on a money supply of 59 trillion...but they are in a very good spot to re-denominate....many look at this as a bad thing but it is the best possible scenario for the value of the IQD to continue to rise...they can't jump the price thousands of percents over night...it can only go up gradually.

59 trillion. true. but 3/4 of that they hold, that money goes up too, and they profit from the reval. plus check astonia they jumped from iraq levels to the euro on jan 1st 2011.

tj... were good.....much respect.....sorry on my end as well

[acceb75]

Wouldn't the revalue give the US more money to pump into oil sales too?

[RVDinar4MyFamily]

My stance isent that the RD is needed to control inflation, but the fact that RD are done also to show stability and to erase the after affects of hyperinflation....in order to show the world that their monetary policy mistakes are a thing of the past.....

As for why they didnt do it in 2003, well the same could be the said for the reason they didnt RV......cause with a RD, a RV would be sure to follow.....

But more then likely its because they wanted to get things under control, get a handle on inflation first, instead of trying to redenominate during high inflation and fail like alot of countries have done.....better to do it right the first time eh?

That is true, however, Iraq has more then demonstrated their ability to correct the former regimes monitary policy mistakes, and have done an excellent job at not only recovering from hyperinflation, but also in controlling inflation since then.

Its pretty clear that they did not want the dinar to collapse in 2003 when the CPO took over. The plan was to stabilize and let it grow over time, and it has.

Currency reform

Early in the reconstruction, economists worried that the dinar would collapse.

Because each dinar featured the image of a smiling Saddam Hussein, fears that the dinar

would become worthless once the Coalition took over caused it to weaken to more than

4,000 to the dollar in the spring of 2003. Coalition officials, of course, had no desire to

erase the country’s dinar-denominated assets.

Read more:

[tjmunson]

Not very good advice Sonny...there is actually a very high probability that they will...the imf has no say in whether they re-denominate or not...you can't ignore all of the articles that continue to come out that clearly spell out the process of re-denominating....the goal of everyone here it to make as much as possible off of this investment and the best way to do that is to understand all of the options that are possible and to plan accordingly....Iraq is in no position to re-value based on a money supply of 59 trillion...but they are in a very good spot to re-denominate....many look at this as a bad thing but it is the best possible scenario for the value of the IQD to continue to rise...they can't jump the price thousands of percents over night...it can only go up gradually.

You are such a RICHARD!!!

[blonde_minx]

Not very good advice Sonny...there is actually a very high probability that they will...the imf has no say in whether they re-denominate or not...you can't ignore all of the articles that continue to come out that clearly spell out the process of re-denominating....the goal of everyone here it to make as much as possible off of this investment and the best way to do that is to understand all of the options that are possible and to plan accordingly....Iraq is in no position to re-value based on a money supply of 59 trillion...but they are in a very good spot to re-denominate....many look at this as a bad thing but it is the best possible scenario for the value of the IQD to continue to rise...they can't jump the price thousands of percents over night...it can only go up gradually.

Where do you get the high probability it will , do you really think these articles being put out by Iraq are being up front and honest !! ( NO ) do you think they will inform all nations of what they are going to do before they actually implement it, ( NO ), so all this loping is pure guess work unless you have actually been in the meeting with Shabs and Miliki , in fact nobody really knows what will happen until it is released, so lets be real without insulting each other , we can all speculate without being rude and acting as though anyone with a different opinion is stupid,