Removing the zero's next month

[Ghost Rider]

Can you link some of these news articles? I seem to have mised them. Just trying to figure out how the new currency can exist with the old unless they hold their face value.

There are dozens of articles in the Iraq News forums. I would encourage everyone to go and read the REAL news coming out of Iraq.

GR

[Ghost Rider]

You have misconstrued what they have been talking about....removing the zeros has been talked about for years, they are replacing the currency....that is a RD....they have stated that and the fact that 1000 old dinar will equal 1 new.....that is a RD....they have stated they were using turkey as a template for this plan....that is a RD....where have you been? You sure you aren't reading okies news??

Yes they have stated raising the value of the dinar in these delete the zeros articles, and that's what happens when the RD process is complete and the old currency is deemed worthless....

I'm sorry that you are getting confused about this plan to delete the zeros but its not a straight up RV.....they have NEVER stated that they are just removing the 000 notes from circulation and nothing else, or that you will be able to trade your 25k note in for the equivilant in lower denoms....that also does not reduce the cash block like they have mentioned over and over....

I'm worried to even hear where you are getting your forum facts from.....

Sorry Keep. You are wrong. As I mentioned before, you will be proven wrong in the end. I cannot beleive you have the blinders on still. I guess you'll be disappointed when you find out it RV's. I personally know an Iraqi native that also agrees that this is an RV and not a LOP. You are misleading people here, due to your lack of research and/or lack of being able to correctly intemperate the news that has been streaming from Iraq.

You are titled to your own opinion and I respect that, but I have done my research and it is all FACT straight from Iraq. Nothing "misconstrued", just REAL facts. You are doing a disservice to those on this forum pumping your incorrect LOP cr*p for the past 6 months. Why are you still frequenting this forum if you believe in your LOP?? If you believe you will not make any money on this investment, then why hang around here??? To spread your LOPness? Get with it bro and at least educate yourself. Nuff Said.

[uncirculd]

Sorry Keep. You are wrong. As I mentioned before, you will be proven wrong in the end. I cannot beleive you have the blinders on still. I guess you'll be disappointed when you find out it RV's. I personally know an Iraqi native that also agrees that this is an RV and not a LOP. You are misleading people here, due to your lack of research and/or lack of being able to correctly intemperate the news that has been streaming from Iraq.

You are titled to your own opinion and I respect that, but I have done my research and it is all FACT straight from Iraq. Nothing "misconstrued", just REAL facts. You are doing a disservice to those on this forum pumping your incorrect LOP cr*p for the past 6 months. Why are you still frequenting this forum if you believe in your LOP?? If you believe you will not make any money on this investment, then why hang around here??? To spread your LOPness? Get with it bro and at least educate yourself. Nuff Said.

Yeah, and keepmwlknfny could sell all his/her dinar.

Edited August 28, 2011 by uncirculd

[IowaDinar]

It wont devalue it, its just considered a monetary illusion because it seems like you are losing money but the value and purchasing power is gained with the new bills....

Its actually a neutral event.....what your 25k note used to be able to buy, a new 25 note will be able to buy.....you will be able to use both in the marketplace for sometime until they deem the bills we hold now worthless...

Removing the zeros is NOT what we want!!! Removing, deleting, raising the zeros is a redenomination or lop as many peope like to call it.....no bueno for us....

Its comming off the rate you lop talking idiot:o

http://www.iraq-busi...redenomination/

http://www.unc.edu/~...APSA%202005.pdf

Please read and educate yourself so that you dont confuse and misinform any other people....we have enough of that going on here in dinarland......this removing the zeros or redenominating is pretty straight forward on what it is.....its NOT good for us.....

These are Blogsites Ding-A-Ling:P

[Ghost Rider]

this article from 2006 might change your mind it is a rv and that was the plan from day one.

Iraq plans to revalue currency Gulf Daily News - [7/7/2006]

Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said yesterday.

Senior government and central bank officials have said the proposal has been under consideration for some time to make one new dinar equal to 1,000 current dinars, a move that would bring the currency closer to parity with the US dollar.

Asked about such a suggestion in an interview on Arabiya television, Finance Minister Bayan Jabor said: "This is the ministry's suggestion to the central bank. We think in the long term it will be for the benefit of Iraq."

Jabor said surveys indicated popular support for the move.

The oil-rich nation's currency was once worth more than $3, he recalled, before the ruinous wars and international sanctions during the rule of Saddam Hussein.

There are currently about 1,450 dinars to the dollar, a rate that has been relatively stable since shortly after the US invasion in 2003. At that time new banknotes were issued by the US occupiers to remove Saddam's image.

Other nations that have been through rampant inflation have followed a similar course, notably Russia in the 1990s.

Until the 1980s, many prices in Iraq commonly also used the fils. One dinar equals 1,000 fils. The smallest denomination note today is 250 dinars.

http://www.iraqdirec...ws.aspx?id=1636

You are correct, it is an RV which will take place. Keep has been clinging to and pumping the same 2 or 3 articles of incorrect and irrelavent information for month now. Keep obviously is not reading the dozens of RV supporting articles that have been streaming from Iraq the past several months. I beleive in reading only current Iraqi policy and news genuine Iraqi news articles to gain the true direction of this investment. The articles Keep lists are the same articles he has been listing for many months now and he doesn't seem to be interested in looking at anything else. Oh well... I digress...

[Ghost Rider]

You have misconstrued what they have been talking about....removing the zeros has been talked about for years, they are replacing the currency....that is a RD....they have stated that and the fact that 1000 old dinar will equal 1 new.....that is a RD....they have stated they were using turkey as a template for this plan....that is a RD....where have you been? You sure you aren't reading okies news??

Yes they have stated raising the value of the dinar in these delete the zeros articles, and that's what happens when the RD process is complete and the old currency is deemed worthless....

I'm sorry that you are getting confused about this plan to delete the zeros but its not a straight up RV.....they have NEVER stated that they are just removing the 000 notes from circulation and nothing else, or that you will be able to trade your 25k note in for the equivilant in lower denoms....that also does not reduce the cash block like they have mentioned over and over....

I'm worried to even hear where you are getting your forum facts from.....

You are incorrect, period. I don't get my facts from forums Keep, Just the REAL news streaming out of Iraq many of which are posted on this sites News from Iraq forum. I will believe the News from Iraq over your opinion any day. You need to educate yourself, if in fact you are truly interested in doing so. You can choose to ignore the REAL news from Iraq and wallow in your misinformed LOPness, that is your choice. I for one seek the factual truths and the truth will set you free. Nuff said.

GO RV!!!!!!!

[CO.5-0]

I heard that from one of the Iraqis i know, he said on the news that it would either be 1 to 1 or possibly more. I am sure Okie will call it as well.

(H)okie is going to call it??!!! Again??!! Damn!! For a sec I thought this might be close to over!!!

[B-gap]

Sorry Keep. You are wrong. As I mentioned before, you will be proven wrong in the end. I cannot beleive you have the blinders on still. I guess you'll be disappointed when you find out it RV's. I personally know an Iraqi native that also agrees that this is an RV and not a LOP. You are misleading people here, due to your lack of research and/or lack of being able to correctly intemperate the news that has been streaming from Iraq.

You are titled to your own opinion and I respect that, but I have done my research and it is all FACT straight from Iraq. Nothing "misconstrued", just REAL facts. You are doing a disservice to those on this forum pumping your incorrect LOP cr*p for the past 6 months. Why are you still frequenting this forum if you believe in your LOP?? If you believe you will not make any money on this investment, then why hang around here??? To spread your LOPness? Get with it bro and at least educate yourself. Nuff Said.

I agree keep is a bit of a negative Nancy, however he is far from stupid and has in the past and continues to make very valid points. I have not been keeping up with the news this last week (see what I did there) but I was reading nearly every article posted on this forum in regards to Iraq and would say 8 to 1 of the articles I read convey a message supporting keep's argument. However to my knowledge none of us have had access to a legitimate translation of these articles simply computer algorithms that are prone to a certain degree of error due to their very nature. That being said it's very difficult to come to a concrete conclusion of the original message meant to be conveyed. I myself believe a RD my be imminent (based on my interpretation of the news), but I personally entered this investment for the potential of a 300% gain which is good by any standards (within a certain time parameter). I also like conspiracy theories and to dream. =)

-B-gap

[Dalite]

You are correct, it is an RV which will take place. Keep has been clinging to and pumping the same 2 or 3 articles of incorrect and irrelavent information for month now. Keep obviously is not reading the dozens of RV supporting articles that have been streaming from Iraq the past several months. I beleive in reading only current Iraqi policy and news genuine Iraqi news articles to gain the true direction of this investment. The articles Keep lists are the same articles he has been listing for many months now and he doesn't seem to be interested in looking at anything else. Oh well... I digress...

You do realize the article is about a redenomination (RD), and clearly states it is, don't you?

Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said yesterday.

When 1 new Diner is equal to 1,000 old dinar, it points to dropping 3 zeros and shifting the decimal point 3 places stronger on the exchange rate; thus increasing the value. This is the revaluation this article refers to..

Senior government and central bank officials have said the proposal has been under consideration for some time to make one new dinar equal to 1,000 current dinars, a move that would bring the currency closer to parity with the US dollar.

Here's another small hint; Russia did not RV

Other nations that have been through rampant inflation have followed a similar course, notably Russia in the 1990s.

Please explain to us how you see RV in this article.

If 1 new dinar is equal to 1,000 old dinar, then 1,000 new dinar will be equal to 1,000,000 old dinar.

We have old dinar.

Are you beginning to see a pattern here?

This is one of the earliest articles showing the CBI considering a RD. The later ones follow the same pattern.

This isn't good.

If you are going to defend a RV, don't choose an article in which the Central Bank says they are planning to ReDenominate the currency (RD).

I wish you well in whatever you want to think, but when you get something this wrong, you may want to reconsider telling others they should do some research.

There is no plainer article about RD than this one that you are claiming to point to RV.

It's not what I want, it may not ever be passed by Parliament, but it is what it is.

[GT5Junkie]

Sometimes I think they don't read anything other than the title of the articles.

[abutchbaker]

BS won't happen this year your information is wrong..........

[HopefulTxn]

this article from 2006 might change your mind it is a rv and that was the plan from day one.

Iraq plans to revalue currency Gulf Daily News - [7/7/2006]

Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said yesterday.

Senior government and central bank officials have said the proposal has been under consideration for some time to make one new dinar equal to 1,000 current dinars, a move that would bring the currency closer to parity with the US dollar.

Asked about such a suggestion in an interview on Arabiya television, Finance Minister Bayan Jabor said: "This is the ministry's suggestion to the central bank. We think in the long term it will be for the benefit of Iraq."

Jabor said surveys indicated popular support for the move.

The oil-rich nation's currency was once worth more than $3, he recalled, before the ruinous wars and international sanctions during the rule of Saddam Hussein.

There are currently about 1,450 dinars to the dollar, a rate that has been relatively stable since shortly after the US invasion in 2003. At that time new banknotes were issued by the US occupiers to remove Saddam's image.

Other nations that have been through rampant inflation have followed a similar course, notably Russia in the 1990s.

Until the 1980s, many prices in Iraq commonly also used the fils. One dinar equals 1,000 fils. The smallest denomination note today is 250 dinars.

http://www.iraqdirectory.com/DisplayNews.aspx?id=1636

Unfortunately, what Russia did in the 1990's (LINK) is what Keep is stating that Iraq has said repeatedly is their plan. Is it what we want? Of course not. But it is what it is. The statements that a 25K note will equal a new 25 note, that 30 trillion dinar will become 30 billion dinar, that they are using Turkey as an example, etc. cannot just be thrown by the wayside because it doesn't fit with a theory.

[TRERUMPH]

I spoke with one of the Locals that works here on base today, as he was counting his Dinar. I jokingly said "What you got there about 3 dollars?" He laughed and said next month it will be more. I asked what he meant and he said that on the news it is being said that sometime next month the CBI will be removing the 3 zeroes. He wasn't sure what the new value of a Dinar would be, just that they are planning on removing the 000's next month.

This may all be over soon..........

ok here it is all in one bunch from the big boss man K98night so read this and knock it off with the lop or removal of three zeros, let this kind of talk stay over in the other forums...

REPOST FROM K98NIGHT!!!!!!!!!!!!!!!!!!!!!

Iraq ~ CBI Project to delete the three zeroes from the currency ...

August 28, 2011

Project to delete the three zeroes from the currency needs 2-3 years to implement

Deputy Governor of the Central Bank of the "morning"

بغداد – ياسر المتولي BAGHDAD - Yasser Mutawalli

Implications of the draft central bank aimed to delete the three zeroes from the currency of national debate among economists on the one hand and questions of citizens on the other hand.

The deputy governor of the Central Bank of d.

The appearance of Mohammed Saleh for "morning," said the draft resolution falls within the monetary policy of reform in order to reduce the money supply of hand and calculate the mass of the other.

Saleh explained that this project long term needs to be two or three years and needs a strategy and timing until the completion of the conviction to the project. He suggested that this draft resolution was commissioned by the Economic Commission in 2007 and went on trading of more than 5 years.

Continues ..

And played down in favor of the concerns that Taatari some effects that may result from its application, pointing out that many countries went through this experience, and explained that the draft resolution presented to the Council of Ministers and the Economic Commission and the Parliament in order to enrich the discussion and leave the decision of the proper rule out all the side effects social mother was an economic and called for giving the opportunity to study it before judging it.

He was surprised at the benefit of flying some of this decision, pointing out that the cluster size cash trillions do not exist only in the U.S. and Iraq, and its presence in America reflects the strength and the strength of its economy, either in Iraq is thus expressed cases of inflation and the weak national economy.

He adds that the trend is towards reducing the cash block to rein in inflation on the one hand and raise the value of the Iraqi dinar against foreign currencies on the other hand. and Saleh revealed that the currency will include the proposed coins for small groups to ensure that walking in the local market transactions.

Read more: http://dinarvets.com/forums/index.php?/topic/81617-project-to-delete-the-three-zeroes-from-the-currency-needs-2-3-years-to-implement/#ixzz1WK7D1BXw

http://www.iraq-businessnews.com/tag/redenomination/

http://www.unc.edu/~lmosley/APSA%202005.pdf

Please read and educate yourself so that you dont confuse and misinform any other people....we have enough of that going on here in dinarland......this removing the zeros or redenominating is pretty straight forward on what it is.....its NOT good for us.....

HERE YOU GO KEEP YOU ARE MY FRIEND BUT SEEMS TO ME YOU ARE NOT KEEPING UP....

Iraq ~ CBI Project to delete the three zeroes from the currency ...

August 28, 2011

Project to delete the three zeroes from the currency needs 2-3 years to implement

Deputy Governor of the Central Bank of the "morning"

بغداد – ياسر المتولي BAGHDAD - Yasser Mutawalli

Read more:

[leggman24]

http://www.iraq-businessnews.com/tag/redenomination/

http://www.unc.edu/~lmosley/APSA%202005.pdf

Please read and educate yourself so that you dont confuse and misinform any other people....we have enough of that going on here in dinarland......this removing the zeros or redenominating is pretty straight forward on what it is.....its NOT good for us.....

Keep. Frist off, long time no hear.... . While we are all told it will happen one way, they are saying it will happen another, fact remains we dont know how it will happen. I am not agreeing or disagreeing with you. We just dont know how it will happen. One thing that i keep thinking about is there is a lot lost in translation. We can only hope for the best and prepare for the worst. The main phrase is "deleting the zero's". We really have no idea what this means. The CBI has came out and stated the value of the dinar will not go down. So what that means, noone will know until they actually do it and even then it will still be confusing for us over here due to the translation. I still love it u get the peeps all riled up..... . Keep up the good work brother.

Edited August 28, 2011 by leggman24

[HopefulTxn]

Sorry TRERUMPH but that article really doesn't state in any way that a redenomination won't occur:

The appearance of Mohammed Saleh for "morning," said the draft resolution falls within the monetary policy of reform in order to reduce the money supply of hand and calculate the mass of the other.

And played down in favor of the concerns that Taatari some effects that may result from its application, pointing out that many countries went through this experience

He adds that the trend is towards reducing the cash block to rein in inflation on the one hand and raise the value of the Iraqi dinar against foreign currencies on the other hand.

Those three lines don't discount a redenomination occurring at all. In a 1:1 exchange of dinar you do not reduce the money supply as he states is the plan. What countries is he referring to that have 'went through this experience' since no country has ever increased the value of their currency like people are hoping that Iraq will. Also, a redenomination would increase the value of the dinar in relation to foreign currencies, just not in a manner that increases the holdings of speculators.

I want it to happen that way as much as the next person holding dinar. But stating that it should put the lop (redenomination) aspect to bed because you don't see the word redenomination in it, or whatever, is just plain silly, IMO.

[buffalowade1]

You have misconstrued what they have been talking about....removing the zeros has been talked about for years, they are replacing the currency....that is a RD....they have stated that and the fact that 1000 old dinar will equal 1 new.....that is a RD....they have stated they were using turkey as a template for this plan....that is a RD....where have you been? You sure you aren't reading okies news??

Yes they have stated raising the value of the dinar in these delete the zeros articles, and that's what happens when the RD process is complete and the old currency is deemed worthless....

I'm sorry that you are getting confused about this plan to delete the zeros but its not a straight up RV.....they have NEVER stated that they are just removing the 000 notes from circulation and nothing else, or that you will be able to trade your 25k note in for the equivilant in lower denoms....that also does not reduce the cash block like they have mentioned over and over....

I'm worried to even hear where you are getting your forum facts from.....

I have read both sides of this argument for months, The one thing I can not figure out Is If they remove the 3 000's and a $25,000 note is exchanged for a new $1dinar note , I can't see how this country could operate financialy. I believe there is about 29 trillion dinars in circulation some say as high as 60 trillion. Even so, If they do a RD, How can they possibly operate on 29 billion dinar or even 60 billion for that matter. They would get bought out in no time. And is it legal for them to print as much new currency as they need it. I don't think so. Their currency would still be almost worthless if they were to do this. This whole lop, Rd does not add up. I can not see how this would work for them

[RicknSaudi]

It wont devalue it, its just considered a monetary illusion because it seems like you are losing money but the value and purchasing power is gained with the new bills....

Its actually a neutral event.....what your 25k note used to be able to buy, a new 25 note will be able to buy.....you will be able to use both in the marketplace for sometime until they deem the bills we hold now worthless...

Removing the zeros is NOT what we want!!! Removing, deleting, raising the zeros is a redenomination or lop as many peope like to call it.....no bueno for us....

Hey Keep! ..Ssupp? Back it the states now - FOR GOOD! (PTL). Listen, I just wanted to comment - or rather, add - to what you say here. I too, believe that a "removal of the three zeros" is not what we want. I am inclined to think that this may be what we are stuck with in the short term. I agree that a zero removal in, and of, itself will not change the value or purchasing power of this currency. I am also of the belief that Iraqi's are generally not a complex people due to years of occupation (and all that that implies).

Where am I going with this? I think that the Iraqi's will be exposed to this new system incrementally. First, by a currency that only changes the look (not the value), then a slow and methodical change in value. Too much, too soon with the kind of mindset they have now, in my opinion, would lead to much confusion.

As to the disposition of monies held abroad and how this will affect us foreign investors, I do not have an opinion.

Edited August 28, 2011 by RicknSaudi

[HopefulTxn]

I have read both sides of this argument for months, The one thing I can not figure out Is If they remove the 3 000's and a $25,000 note is exchanged for a new $1dinar note , I can't see how this country could operate financialy. I believe there is about 29 trillion dinars in circulation some say as high as 60 trillion. Even so, If they do a RD, How can they possibly operate on 29 billion dinar or even 60 billion for that matter. They would get bought out in no time. And is it legal for them to print as much new currency as they need it. I don't think so. Their currency would still be almost worthless if they were to do this. This whole lop, Rd does not add up. I can not see how this would work for them

Why hasn't Kuwait been bought out, they only have about 27 billion dinar in their monetary system (M2)? If Iraq was going to get bought up, why would nobody have already done it when their currency is less than a penny per unit? Why wait until the currency is closer to the dollar? Not sure I follow your logic.

Lop (redenomination) is a process that has been done numerous times. Not always successfully, but obviously the countries that do it do so knowing the risks. Also, they wouldn't be making a 25K note worth a new $1 note. A 25K note that is currently worth about $21.35 would be exchanged for a new 25 dinar note that also carried the value of $21.35. If they could not operate financially after an RD, which is generally regarded as value neutral, how have they operated these past several years?

A redenomination is simply a cosmetic change to the notes that does not change the value of the monetary system at all, but makes room for further growth and accelerated appreciation of the currency from what they currently have. Right now, with a 60 trillion dinar monetary system, for every $6 billion added to their foreign reserves the value added to the currency (if the monetary system remained the same size) would only be $0.0001 per dinar. If however they RD and that 60 trillion becomes 60 billion, that same $6 billion increase to the foreign reserves would reflect an increase of $0.10 per dinar. The way it seems right now is that the increased value of their monetary system is stagnated by the volume of dinar, so rather than increasing the value they are increasing volume to maintain their ratio of asset vs. liability. With the reduction in volume, they could shift that focus from increasing volume to compensate for increases in foreign reserves to actually increasing the value.

[keylime]

WOW... Keep, t's obvious that you have not been following the Iraqi news these past few months!!

Shabibi (Gov. of CBI) in many past articles has revealed that "removing the 000's" is referring to the process of taking the 10k, 25k out of the public's hand. Shabibi has also made it clear that this will be a "slow process" and will take a couple years to accomplish. During this time, Shabibi states the "two currencies" (new lower denom's and existing large notes) will coexist. Shabibi has also stated that during this time "the dinar will once again have VALUE and will be powerful".

Folks, this IS a RV NOT a LOP as Keepmwlknfny keeps pushing out there as fact. I have been only been following REAL Iraqi news these past few months and NOT rumors or opinions. For those of you who know me, I keep it REAL and follow only REAL facts coming out of Iraq.

I digress...

You are right on the money...er "dinar". K98 just posted an article today that quotes Saleh as stating this process(removing the 3 zero notes) will take "2 to 3 years to implement on one hand" and at the same time "raising the value of the dinar against foreign currencies and releasing coins(fils) so they can do business in the marketplace".

A "LOP" does not occur over a 2 to 3 year period. It is not open ended. A RD has time limits for the so called "lopped" bills to be turned in or forfeited.

Their plan has an open ended time frame.

[TRERUMPH]

Sorry TRERUMPH but that article really doesn't state in any way that a redenomination won't occur:

The appearance of Mohammed Saleh for "morning," said the draft resolution falls within the monetary policy of reform in order to reduce the money supply of hand and calculate the mass of the other.

And played down in favor of the concerns that Taatari some effects that may result from its application, pointing out that many countries went through this experience

He adds that the trend is towards reducing the cash block to rein in inflation on the one hand and raise the value of the Iraqi dinar against foreign currencies on the other hand.

Those three lines don't discount a redenomination occurring at all. In a 1:1 exchange of dinar you do not reduce the money supply as he states is the plan. What countries is he referring to that have 'went through this experience' since no country has ever increased the value of their currency like people are hoping that Iraq will. Also, a redenomination would increase the value of the dinar in relation to foreign currencies, just not in a manner that increases the holdings of speculators.

I want it to happen that way as much as the next person holding dinar. But stating that it should put the lop (redenomination) aspect to bed because you don't see the word redenomination in it, or whatever, is just plain silly, IMO.

You are correct sir i just reposted this from the administrator or one of them, lets just see how this plays out and i hope brother that we can com out of this looking good....

CAN I LEAVE AFGHANISTAN NOW ? THIS PLACE AND SOME OF THE PEOPLE HERE SUCK!!!!!!!!!!!!!!!! GOOOOO RRR VVVV

[mqchau]

I'm really for this thing to end also...whatever it is just happen already so I can make plans to leave AFGHANISTAN also...its is F'in hot over here...and I don't feel like spending another extra day here.

I hope it RV's like everyone wants...lets do this!

Daddy needs to come home already!!!

[keepmwlknfny]

Keylime,

Well what you stated is still a time frame for this process to occur over.....they are most likely giving the people of Iraq a big time span as to not create such a rush on exchanging the bills and since they dont hold bank accounts like we do and they do not trust the banks, its going to take more time period to get all the bills exchanged....its not like most other countries that have a stable banking sector and that have a balance of electronic and physical currency.....Iraq is more physical cash and so it will take longer to acheive the same goal....but its actually stated in RD studies that it can be as long as a 2 or 3 year process but its up to the specific country to determine a time frame.....I wish this wasent the case and that a longer time frame would disprove a RD happening but it really cant.....for the most part, any sort of time frame on exchanging bills for a new currency is going to be part of a RD....

If they were just trying to get only the three zeros notes out of circulation and they werent RD, there would be no need or any talk of a time frame for exchange....they would just issue new bills instead of restructuring and printing a whole new currency

Hey Keep! ..Ssupp? Back it the states now - FOR GOOD! (PTL). Listen, I just wanted to comment - or rather, add - to what you say here. I too, believe that a "removal of the three zeros" is not what we want. I am inclined to think that this may be what we are stuck with in the short term. I agree that a zero removal in, and of, itself will not change the value or purchasing power of this currency. I am also of the belief that Iraqi's are generally not a complex people due to years of occupation (and all that that implies).

Where am I going with this? I think that the Iraqi's will be exposed to this new system incrementally. First, by a currency that only changes the look (not the value), then a slow and methodical change in value. Too much, too soon with the kind of mindset they have now, in my opinion, would lead to much confusion.

As to the disposition of monies held abroad and how this will affect us foreign investors, I do not have an opinion.

Glad you made it back safe!! Take some time to kick back and enjoy a couple brews!! LOL

[zigmeister]

I spoke with one of the Locals that works here on base today, as he was counting his Dinar. I jokingly said "What you got there about 3 dollars?" He laughed and said next month it will be more. I asked what he meant and he said that on the news it is being said that sometime next month the CBI will be removing the 3 zeroes. He wasn't sure what the new value of a Dinar would be, just that they are planning on removing the 000's next month.

This may all be over soon..........

This to me is very revealing as to what the citizens of Iraq are hearing and what they understand. I was hoping for this, because media from out of Iraq is not always revealing. Okay here is a guy who is counting his dinar. I imagine so are the people of Iraq. A comment was made his dinar was maybe worth three dollars. The Local laughed next month it will be more. Very insightful. To me this means they are deleting zero's but the currency(old, not new) will be more. That spells RV and not in three years but next month.

How much of an RV? I don't know but I would bet it will be in par with the dollar, or more.

[buffalowade1]

Why hasn't Kuwait been bought out, they only have about 27 billion dinar in their monetary system (M2)? If Iraq was going to get bought up, why would nobody have already done it when their currency is less than a penny per unit? Why wait until the currency is closer to the dollar? Not sure I follow your logic.

Lop (redenomination) is a process that has been done numerous times. Not always successfully, but obviously the countries that do it do so knowing the risks. Also, they wouldn't be making a 25K note worth a new $1 note. A 25K note that is currently worth about $21.35 would be exchanged for a new 25 dinar note that also carried the value of $21.35. If they could not operate financially after an RD, which is generally regarded as value neutral, how have they operated these past several years?

A redenomination is simply a cosmetic change to the notes that does not change the value of the monetary system at all, but makes room for further growth and accelerated appreciation of the currency from what they currently have. Right now, with a 60 trillion dinar monetary system, for every $6 billion added to their foreign reserves the value added to the currency (if the monetary system remained the same size) would only be $0.0001 per dinar. If however they RD and that 60 trillion becomes 60 billion, that same $6 billion increase to the foreign reserves would reflect an increase of $0.10 per dinar. The way it seems right now is that the increased value of their monetary system is stagnated by the volume of dinar, so rather than increasing the value they are increasing volume to maintain their ratio of asset vs. liability. With the reduction in volume, they could shift that focus from increasing volume to compensate for increases in foreign reserves to actually increasing the value.

Sorry for the error, I ment $1,000 dinar exchanged for $1 dinar note. As far as Kuwait is concerned They are a extremely small nation with nowhere near the natural resources Iraq has. Also I do not believe they have 60 trillion in circulation. I have yet to see any proof of that. What you are stating I believe will not happen. Mainly because, Most investors are not going to cash in their investment even if they had to exchange it down $1000 for $1 If this were to occur. The 27 to 60 billion dinars would still mostly be in investors hands after exchange. So how can they still operate if most investors are holding on to the currency. Are they just going to keep printing even more currency to keep things going and then in 7 or so more years they RD again when their currency once again is stagnated by the volume of dinar in circulation. No No No, They will increase the value of the dinar before it's time to exchange.

[kjbj5555]

Removing the zero's will not increase value, not even pertaining to the reason, to add value!