Central Bank: Iraq plans to delete the three zeroes from the currency

[RICK C]

Here is a post I saved a while back -the credit for the post goes to carlablum from our board here=.

LOOK AT THE DATE IT WAS POSTED. -------------------------------------------------------------------------------------------------------------------------------------------------

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Banking expert: Delete the three zeros from the Iraqi currency will impact positively on the Iraqi economy

2010-05-09 12:47:49 05/09/2010 12:47:49

BAGHDAD (Iba) Iraqi bank expert said that the process of deleting three zeros from the Iraqi currency will have a positive impact on the Iraqi economy to Tahedvh of an amendment to the conditions of the Iraqi currency in general.

Said Abdul Aziz Hassoun in contact with the agency, the independent press (Iba) "Many countries have taken action himself, including Turkey, which deleted six zeroes from the currency, and therefore the right of the Iraqi Central Bank could adjust the exchange rate this way, especially since there is a difference large numbers no longer reflects the value of domestic production of Iraq. "

"If the exchange rate is adjusted properly the matter would be meaningful as a whole, especially the central bank set the mechanisms and plans for the replacement of banknotes in another new value and the form and a suitable period to allow replacement of all their bank notes."

The members of the Economic Commission in the previous parliament urged the central bank and Ministry of Finance to address what they described as Baltrhl cash Iraqi funds by raising three zeros from the currency.

He Hassoun that the process of lifting the three zeros from the currency will have a significant impact on the Iraqi market because the dinar would be equivalent to one thousand dinars currently, adding that the process will be of positive influence to support the economy of Iraq through the central bank's plan to strengthen the Iraqi currency exchange rate.

He did not specify when the central bank will be picked up the implementation process, while some media sources leaks about the impossibility of implementation of the Central Bank for this operation is to Ststensvh financial resources and enormous economic cadres.

http://translate.goo...1Xtx4GCmNQro29Q

Read more:

[EGP]

A nominal dollar is the worth of a dollar or any currency in the present economy and does not take into account inflation. Because of this, the nominal dollar is often opposed to the "real" dollar when considering the value of money in different years. The "real" dollar accounts for inflation; the nominal dollar does not.

Read more: What Is a Nominal Dollar? | eHow.com http://www.ehow.com/about_6302416_nominal-dollar_.html#ixzz1UGNz50Gu

This definition helps to clarify what they are planning to do with the currency. Thus they are literally raising the value of the dinar or "raising the worth of the dinar" from what it is now in the "present economy" which is .00086 to .86. Now that doesn't necessarily mean they are settling for .86 but they are indicating it will be at least that for the dinar's NEW VALUE.

This also means it does NOT refer to the dreaded "LOP".

Sounds good to me!

Any thoughts on this?

Edited August 6, 2011 by EGP

[DRV1804]

This article seriously makes me feel sick to my stomach...i dont like this one at all!! Not a good way to start off the weekend..

[greyhackle]

Hello, What is confusing to me is if they are issuing coins as part of a new currency with the intention to lop the old by 3 zeroes and maybe the new too? then why would the coins be in what was once considered large denominations for example 25, 50 100 dinar, simple logic says this does not make sense. The more I study the less I am believing the gurus. This is not a slam, I believe the currency will rise in value ever so slowly over the next several years, as Iraq improves it's stability and economy. I have already made money on my dinar since I bought it several years ago and will be happy with that. But I think it will take a few more years for any major revalue to occur, I am beginning to think the reason for creating new currency is for some other reason maybe to get English off their notes so they will be all Iraqi and to also collect all the old notes which represent being controlled by outside sources. Clearly if they wanted to make it simple they would make their dinar equal to or slightly higher than the dollar on a dinar per dollar basis. However this seem illogical without a lop and then a reissue of the dinar. I just have never know anyone or any entity to just had out way more money in a short period of time then the investment was actually worth. I still dream of a significant r.v. however I keep reminding myself that I am dreaming!

[tribear]

Iraq plans to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to simplify financial transactions, a senior central bank official said on Saturday.

Central Bank Deputy Governor Mudher Kasim said he expected the new currency to be used in the market in three years and it would have no impact on inflation.

"This will facilitate the payments system ... instead of carrying a lot of money, we will carry less. This is an important reform," Kasim told Reuters.

Iraq is recovering after years of war and sanctions and oil still dominates the economy, accounting for 95 per cent of government revenues. Investors complain Iraq's still heavily centralized economy is mired in red tape and bureaucracy, and transactions are still often carried out in cash.

Kasim said planning and the preparation for reform was complete and the proposal would be handed to the government in the next month. It would also need parliamentary approval.

Iraq's central bank began discussing the redenomination of the dinar last year aiming to help ease financial transactions.

In Iraq many payments are still carried out in cash because of the underdeveloped banking system.

The Iraqi dinar is traded in auction at a fixed rate of 1.170 per dollar.

Iraq has 30 trillion dinars in circulation, Kasim said, and the project would bring liquidity to 30 billion.

He said the restructuring would include issuing higher categories of currency and the use of coins for the first time.

Iraq's higher denomination currently is a 25,000 Iraqi dinar bill worth around $21. – Reuters

http://www.tradearabia.com/news/BANK_203086.html

This is good news... But guys how many more articles is it going to take to get this thing to pop. OMG.!!!! Guess they like to confuse us. I feel that they do this so some people may turn in there Dinars and give up. To everyone reading this, DON NOT GIVE UP!!!! We are there!!!!

[tribear]

Even at that rate, And I DO NOT AGREE with it, I would never ever work again in my life, Come to think of it Niether would my wife.and I would hold a lot for the Years to come. So bring it on. RV that is.

That Exchange rate .86 does NOT support there budget, sorr y to make you guys mad...Guess we will have to settle for more!!! LOL

[nemesis760]

There is 30 trillion in circulation they want to add liquidity to that 30 trillion.. so they are not decreasing the quantity, just the value, IMO. I think if they lop off 3 0s then they would be saying they want to decrease that number to 30 billion, and add liquidity to that 30 billion. Or something along the lines of wanting to decrease that number in circulation So if there is 30 trillion out there, they rv to 1:1 then they have added liquidity.

[joeintt]

Help!

"Iraq has 30 trillion dinars in circulation, Kasim said, and the project would bring liquidity to 30 billion."

I dont want a LOP...no! Does this statement refer to a LOP? I need someone smarter than me to comment. Thx!

Sorry to say but...YES, it does. Many folks feel that the CBI & GOI are thowing out redenomination "stories" to throw the public off track. Folks even cite other countries and government that have done that - said one thing then did the exact opposite - but we really don't know what will happen here. One thing for sure.....Iraq has maintained the LOP story consistently for nearly two years. More importantly, the only folks who have ever mentioned an RV has been the "very reliable" gurus -(yeah right!!!).

If the LOP story was just designed to throw us off track ---well it is working on me. I really am doubting if there will ever be an RV. I REALLY HOPE I AM WRONG, but honestly, I am expecting a LOP....full stop.

Be blessed....and I truly hope that I am wrong

Joe

[BlueOrchid919]

Hello, What is confusing to me is if they are issuing coins as part of a new currency with the intention to lop the old by 3 zeroes and maybe the new too? then why would the coins be in what was once considered large denominations for example 25, 50 100 dinar, simple logic says this does not make sense. The more I study the less I am believing the gurus. This is not a slam, I believe the currency will rise in value ever so slowly over the next several years, as Iraq improves it's stability and economy. I have already made money on my dinar since I bought it several years ago and will be happy with that. But I think it will take a few more years for any major revalue to occur, I am beginning to think the reason for creating new currency is for some other reason maybe to get English off their notes so they will be all Iraqi and to also collect all the old notes which represent being controlled by outside sources. Clearly if they wanted to make it simple they would make their dinar equal to or slightly higher than the dollar on a dinar per dollar basis. However this seem illogical without a lop and then a reissue of the dinar. I just have never know anyone or any entity to just had out way more money in a short period of time then the investment was actually worth. I still dream of a significant r.v. however I keep reminding myself that I am dreaming!

The new currency will have Arabic, Kurdish and English on it.

The new coins will be for denominations of 1 dinar and lower. The OLD dinar will be exchanged at 1000:1. That will make is super easy for the people and the merchants.

A loaf of bread costing 1000 current dinars will also be sold for 1 new dinar. A soda costing 500 current dinars will sell for a new dinar coin worth 1/2 of 1 dinar. The new dinar will likely be broken down into 100 fils (cents) just like the USD. We will have to wait and see what they have planned for the coinage.

The gurus are blowing smoke.

Edited August 6, 2011 by BlueOrchid919

[MPG350]

there WON'T be a lop, finale- finished- dead. shabibi didn't come to Harvard and ask americas young to invest for no reason. forget the lop. Continue in a HOLDEN PATTEN. THE REVALUATION IS COMING AND iRAQ NEEDS IT JUST AS BAD IF NOT MORE THAN ANYONE ELSE. iRAQ WILL be on PAR with KUWAIT.I have been in this for nie on 8 yrs. forget the stupid lop,PLEASE,

Sorry but a lop has a good chance of happening

Dont put your head in the sand and pretend all is fine.

[2fast4u2c]

Blue Orchid and Joentt....I agree that all of these articles have me thinking LOP ...unfortunately. I also don't believe this will happen before 2012 due to Maliki and GOI.

I hope I am wrong but I don't think so based on Turkey and others.

[ashtray]

if iraq rvs for one penny , then the cbi has a bunch of currency worth one penny. wouldnt that reduce the number of notes ,,, ?

i doubt it if they lop off three zeros then they only have 30 billion dollars worth of currency avaliable

the goi budget is 110 billion dollars or 110 trillion dinars

the population it 30 million 30 billion dollars gives iraqis a per capita of 1000 dollars per person

the per capita right now is 4 thousand dollars .. they would have to cut per capita by 75% to do that

i donbt think its a law that they must delete all three zeros , deleting one zero leaves iraq with 3 trillion dinars

deleting 2 zeros leaves iraq with 300 billion dinars

i really do not believe 30 billion dinars will sustain iraqs economy not even close .

im hanging on to my dinars to the end we should make a nice profit

the un is watching , sanctions could go right back if they dont follow through with what is planned

what that is they havent reveled yet

we have heard many opinions from news agencies in iraq , but not the final plan , that will come with a world recognized tradable currency and not until

thats my opinion

a 2500 note , a 1000 note ,,,a 500 note ,, 100 note ect losing one zero

or a 250 note ,, a 100 note .. a 50 note .. a 25 note ,, a 10 ,,,5,, 1,, and coins to make change ..losing 2 zeros

again its just another speculation .. do they have to remove all three zeros ?

who knows

Edited August 6, 2011 by ashtray

[RICK C]

WATCHING for when the next G-8 SUMMIT TAKES PLACE, And who is there. untill then all is pure speculation .Either way I'm in till the end what ever comes.then I'll send the LOP back to LITTLE RICHARD since he owned it 1st, so till then BOP BOP A LU LOP A BOP BAM BOO. The End.

[thatoneguy]

The more of these articles about the CURRENCY i read, the more confident i become. And look at the amount we have been seeing over the past 30-60 days. IF they LOP, why would they need to put out press releases to "educate" the people? Most unintelligent folks in the world can count money, so long as they can count. So the LOP happens, wow, what complex math it is to drop 3 zeros from the note you're holding. This is all good. IMHO, be happy with where you are and what you have. This may end in 2012, but i doubt it. Right now there is too much, and i quote Shabbs,"propa- ah- ehhh- uhhhh" coming out right now just to shake the trees and root out investors that don't have the stomach for this. Take my opinion for what it is... An opinion.

[thatoneguy]

P.S. at 2.7mbl per day being pumped, and at $2 refining costs @ $85+/1 dollars a barrel, that equals a lot of money a day,(say 228,000,000), if my math is right, so then over a billion dollars a week going somewhere. WHERE? Just keep following the money... All of these outside countries aren't in Iraq only to be good neighbors, and the U.S. sure as hell hasn't put in its two cents just to have this friggin LOP. Again, just an opinion, but i am very comfortable reading what is coming out. Reading between the lines and following the money sometimes isn't always easy, but, easier than following a rainbow to its end.

[BlueOrchid919]

Blue Orchid and Joentt....I agree that all of these articles have me thinking LOP ...unfortunately. I also don't believe this will happen before 2012 due to Maliki and GOI.

I hope I am wrong but I don't think so based on Turkey and others.

Exactly. You've got it!

Recent articles clearly stated they would remove the 3 zeros by or around mid 2012. There was also a statement that the new currency would be released at the same time as the removal of the 3 zeros. So look for those 2 events to occur simultaneously. I doubt very much they'll even have their new currency plan approved by Parliament before year end 2011. Redenomination of a country's currency is not something that is done overnight. They must first educate their people, especially their banking system who will be there to answer questions and help the people in the transition. Then up 3 years to phase out the old currency and transition over to the new. This entire process will take time. Lots of it.

P.S. at 2.7mbl per day being pumped, and at $2 refining costs @ $85+/1 dollars a barrel, that equals a lot of money a day,(say 228,000,000), if my math is right, so then over a billion dollars a week going somewhere. WHERE? Just keep following the money... All of these outside countries aren't in Iraq only to be good neighbors, and the U.S. sure as hell hasn't put in its two cents just to have this friggin LOP. Again, just an opinion, but i am very comfortable reading what is coming out. Reading between the lines and following the money sometimes isn't always easy, but, easier than following a rainbow to its end.

Their 2011 budget is almost $83 billion.....

Their annual oil revenue at end 2010 was approx $60 billion....

Then add what they are required to pay in restitution to several countries, including Kuwait (approx $19 billion still left to pay back).

Then add the enormous corruption over there eating up their funds....

IMO, they're upside down.

http://www.ameinfo.com/249349.html

Edited August 6, 2011 by BlueOrchid919

[Nelg]

Sorry but a lop has a good chance of happening

Dont put your head in the sand and pretend all is fine.

MPG350, I only used your post because it was the shortest. It was succinct.

Sorry, but a LOP doesn't have a chance of happening. Reason: there is no such thing as a LOP. That has been made up by someone posting on dinar boards to explain a RD or raising of zeros. It has been picked up and used by people on the forums, but it try using it outside the forum. People have no idea what it means. I know HOW it is used and I know WHY it is used.

I have heard three or four try to define the removal of the 000s and all of them have some good points. Removing the currency with 000s and replacing them with smaller denominations. Removing the 000s from larger dinar where 25,000 equals 25 dinar. Removing the 000s from the value rating where .00086 becomes .86. Which one is correct?? Only time will tell and not us. We simply ASSUME we know what it means. Personally, I like .86!

Peace

[Markinsa]

"Central" is preparing to replace the Iraqi currency after the cancellation of three zeros from the value of the cluster projected cash of $ 26 billion

The Central Bank of Iraq completing the preparation of a plan to replace the

securities cash current after the cancellation of three zeros of them, including

30 trillion dinars (26 one billion dollars), is the monetary value of the mass

expected, confirming that the timing will be determined by the government and

parliament, Iraqi.

For his part, says the expert, the first in the Central Bank of

Iraq the appearance of Mohammed Saleh, said in an interview with the newspaper

"Life" of London, "Our problem lies in the current issue of the timing of

replacement of the currency, they must choose a date suitable to implement the

project without obstacles."

Before, and the Central Bank announced its intention to raise three zeroes from

the Iraqi dinar, after suffering from inflation and the decline during the

nineties the past by economic sanctions, its value has tumbled to become the

world today, about 1120 dinars per dollar.

The central bank adopted after 2003 a new mechanism to maintain

the exchange rate of the dinar, is to create an auction foreign exchange to sell

quantities of the dollar, resulting from the sale of oil in world markets, and

transferred to the Development Fund for Iraq, which transforms in turn to the

bank to sell in local currency, which helped to raise the value of the dinar

over the past years more than 2000 points.

And as for the size of the cluster monetary circulation or the

size of the liquidity of cash by more than 30 trillion Iraqi dinars, or 26 per

one billion dollars.

He said: "trading system of cash in Iraq after 2003, it became

Mdolra, any market deal dinar and the dollar both, and this means a mass of cash

in circulation in the market but in foreign currency. "

Saleh continued: "We put in the accounts and that the currency

of Iraq or the cash block total traded home and that would be replaced after the

cancellation of zeros will be in the range of 30 trillion dinars, but its value

against foreign currencies will remain constant. This means that the dinar

exchange rate of Iraq now would amount to 1,200 dinars per dollar one ".

In regard to the most important variables that will come after

the lifting of zeros, between the appearance of the central bank solid plan to

rearrange the currency to reduce the number of leaves cash in circulation, and

this is positive. Here, the payments system would be the Iraqi easier.

Economists warned that the process of replacing the currency

of Iraq after the lifting of zeros Schoppea operations by a major corruption due

to structural inaccuracies of Iraqi banks.

They emphasized that the processes of replacement of the

currency operations of the former accompanied by a major corruption cost the

economy of Iraq a lot. But the appearance of favor answer by saying that the process

of replacing the currency in 2004, took place in exceptional circumstances, and

the country under occupation and is administered by the Governor of an American

civilian, and with this process was successful.

And sells the central bank through its daily auction, the 150

million dollars and 190 million dollars a day to clients of private banks and

financial companies, a large percentage go from Khawwalat external payment

transactions of foreign trade.

And confirms the expert's central bank that the application of

the new project to raise three zeroes from the dinar Iraqi and currency

exchange, will be according to mechanisms scalable in the form of do not feel

the citizens, are put quantities in the market and the withdrawal of which is

maintained by the government banks of the block and replace it, and it remains

only in the possession of the citizens of the trading day, and can make any

transactions in both currencies for existing and new, what's goods on the

current price of 1000 dinars for example, a customer can give the seller the

present paper the category of 1,000 dinars, as well as currency can give him a

new category of one dinar.

Source:

Forum upgrade Iraq - The Iraqi

[abby01]

First I tried to understand the nominal rate vs the real rate, and thanks to the person who posted some info about it. I decided to go educate myself (which when it come to dinar is not an easy task) and began to get a grasp on the difference. I spoke to my son about it and he has a masters in acct. and has his CPA, but does not work with this type of acct. issues so...we are thinking the nominal rate is the real rate and then taking in consideration and adding in the inflationary rate to get the nominal rate...lol is that right or wrong??

So if that is right...the rate would add into the real rate ..the rate of inflation into the equation...which is what we have heard many times.

Edited August 6, 2011 by abby01

[BlueOrchid919]

Thanks for the post. Nice to see the news articles on the RD becoming clearer.

1000 dinar loaf of bread can be paid with either currency....1000 old or 1 new.

Can't get any clearer than that.

[easyrider]

Thanks for the post. Nice to see the news articles on the RD becoming clearer.

1000 dinar loaf of bread can be paid with either currency....1000 old or 1 new.

Can't get any clearer than that.

now that you know it gona R/D you better sell.

Edited August 6, 2011 by easyrider

[BlueOrchid919]

First I tried to understand the nominal rate vs the real rate, and thanks to the person who posted some info about it. I decided to go educate myself (which when it come to dinar is not an easy task) and began to get a grasp on the difference. I spoke to my son about it and he has a masters in acct. and has his CPA, but does not work with this type of acct. issues so...we are thinking the nominal rate is the real rate and then takinig consideration and adding in the inflationary rate to get the nominal rate...lol is that right or wrong??

So if that is right...the rate would add into the real rate ..the rate of inflation into the equation...which is what we have heard many times.

The nominal rate IS the current rate. The word nominal in other languages means nominated, stated, actual. It is not a word commonly used in English, but it is common in other languages. The nominal rate for the IQD is 1170. Or 0.00086 in USD.

now that you know it gona R/D you better sell.

Why? It's not costing me anything sitting in my safe. And until I know HOW to get it exchanged for the newer currency, no point in losing money to the IQD dealers....

I may choose to exchange for the newer currency, sit on it for a few more years and at least not lose.... Might even make a buck or 2... I now know it won't be pie-in-the-sky riches.... unfortunately.

Edited August 6, 2011 by BlueOrchid919

[easyrider]

The nominal rate IS the current rate. The word nominal in other languages means nominated, stated, actual. It is not a word commonly used in English, but it is common in other languages. The nominal rate for the IQD is 1170. Or 0.00086 in USD.

Why? It's not costing me anything sitting in my safe. And until I know HOW to get it exchanged for the newer currency, no point in losing money to the IQD dealers....

I may choose to exchange for the newer currency, sit on it for a few more years and at least not lose.... Might even make a buck or 2... I now know it won't be pie-in-the-sky riches.... unfortunately.

so why hang around here arent you just wasting time if you believe they will R/D?

I wouldnt be wasting time anymore if i knew for certain it was gonna R/D

Kinda reminds me of a memeber named networth he cllaims he sold all of his IQD yet still posts and remains on this site. Now does that make any sense? o wait his claim was I am trying to educate people to stop wasting their money and buying dinar becaue they will losse money. Hhahahaha i am not buying that one or the ones that say i kow for a fact it will R/D if so why waste your time on dinar forums?

either you have NO life and just liek to hang out on forums or you really dont know the outcome and hold a bit of HOPE that you might be wrong now which one is it?

Edited August 6, 2011 by easyrider

[abby01]

Here is another link explaining nominal vs real rates:

http://economics.about.com/cs/macrohelp/a/nominal_vs_real.htm

Thanks for the info blue.

There sure is lots of debate on the lop or no lop on this site. I like Breitlings explanation and I am going to stick to my belief until we find out who is right!!! smile!!

When it comes to reading the lopsters comments...an old song just came to my remembrance..Walk on by...walk on byyyy lol

Edited August 6, 2011 by abby01

[BlueOrchid919]

so why hang around here arent you just wasting time if you believe they will R/D?

I wouldnt be wasting time anymore if i knew for certain it was gonna R/D

Kinda reminds me of a memeber named networth he cllaims he sold all of his IQD yet still posts and remains on this site. Now does that make any sense? o wait his claim was I am trying to educate people to stop wasting their money and buying dinar becaue they will losse money. Hhahahaha i am not buying that one or the ones that say i kow for a fact it will R/D if so why waste your time on dinar forums?

either you have NO life and just liek to hang out on forums or you really dont know the outcome and hold a bit of HOPE that you might be wrong now which one is it?

I always hope.

What might be a waste for you is not for me. I work part time so have plenty of time on the PC. I take breaks from the many hours I spend doing research related to my doctorate. Reading the forums is a very nice break for me.

There is ALWAYS a glimmer of hope.... otherwise, why live?