IQD To Be The Strongest Currency In The Middle East

[zul]

Hey Zul,

They also only had like 2 denominations of bills before we invaded.....so practically a whole new currency was introduced....they had a 250 dinar note and a 10k note.....so they did already have a 000 note, but a whole line of notes had to be created to make things a tad easier. So yes technically they did add notes into circulation....but I wonder since I didnt read what your referring to, if he could have been speaking about in Saddams era when they added 000 to make the 10k note simply because of the loss in purchasing power??

In any case, its the details of these delete the zeros articles that come flying out that point to it not just being about taking notes out of circulation....there are key phrases they use that point to what we dont want! Such as reducing the cash block (30 trillion to 30 billion), the reference to 1k note being equal to 1 new, and naming off countries that lopped.....Especially just using the term removing the zeros, has never been used (to my knowledge) to describe wanting to just pull a few large notes out of the money supply....its always used when redenominating and replacing a currency with a new one....

Keep,

Just for your reading pleasure

CBI confirms willingness to delete zeros from currency after formation of the government directly

Central Bank confirms its willingness to delete the zeros from the currency after the formation of the government directly

The Central Bank of Iraq, on Tuesday, his willingness to delete the zeros of the Iraqi currency after the formation of the Iraqi government directly, pointing at the same time that those zeros that are added to the Iraqi currency during the last period formed a cluster of large cash amounted to 27 trillion Iraqi dinars.

Adviser, said Iraqi Central Bank Governor appearance of Mohammed Saleh said in an interview for "Alsumaria News", "The zeros that are added to the Iraqi currency, during the last period, formed a cluster of large cash amounting to more than four trillion paper cash, financial value of 27 trillion Iraqi dinars, Up from 25 billion dinars in 1980," adding that "Iraq is not capable of managing the bloc because it is a small country where the large number of money circulating in the Iraqi market has led to a confusion in business dealings in the work of large banks."

[Captjohn]

WOW the articles coming out today are incredible Thank you for the post K98 Everyone in DV land should have one big fat smile on their face today !!!!!!

Read F*A*T for me! Looks like the set-up for a perfect dinar storm.

[Mazzz27]

Hmmm well lets think here for a moment.....

What can the lop accomplish?? Reduces the money supply to a more manageable amount (would bring 30 trillion to 30 billion) That is also a less diluted supply of money so that it can have more value.....

The value of the dinar can be increased significantly with a lop (like they state in the delete the zeros articles of getting the dinar 1 to 1 with the USD) Thats a HUGE jump in value......that is your strengthening dinar with more credibility and purchasing power

The after affects of hyperinflation can be erased and put behind them (a sign of stability and economic growth) and also adds faith to the currency and the economy....

The lop can pave the road for the dinar to go down and gain much value in time....

Hmmmm.....not exactly stricktly a revenue neutral event now is it? That term is just used to describe how no one loses money in the process because alot of people have listened to the gurus too much saying that its devaluing the money but its really not.....

So who is it again who only reads what they want to read?? Sure doesnt seem like its the people who understand both sides of this investment.....seems more so to be the ones that categorize the ones they dont agree with as lopsters just because they dont think this is a guaranteed million dollar maker.....

it has been said before that inflation has nothing to do with the value of the dinar...

here...

CBI confirms the value of the dinar is not affected by high inflation rates in the country

02/09/2011 11:10

02/09/2011 11:10

Baghdad, September 2 / September (Rn) - The Central Bank of Iraq, Friday, on the value of the dinar is not affected by high inflation rates in the country, denying the existence of any economic risks on the country it came from.

The World Bank called Bank of Iraq, the Ministry of Finance, on Thursday to take action to prevent increasing the persistence of high monthly inflation.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "the concerns of the international financial institutions of high rates of inflation, monthly and annual amounts which are under the control of the Central Bank of Iraq and any threat does not cause deterioration of the value of the Iraqi dinar."

Iraq has seen a rise in inflation for the month of July in 2011 compared to the same month of 2010 by 7.1% after it was last year's 2.4% due to higher prices of housing rent allowances.

He pointed out that "the crisis of the dollar and the rising prices of rents and higher wages for electricity and the main reasons behind the persistence of high inflation in the country."

He explained that "the Central Bank of successful political support in reducing the rate of inflation and reduction in line with demand and supply prices on the Iraq dinar and increase the monetary value."

Defines inflation as excessive in the general level of prices and rising incomes in cash or a component of cash income such as wages or profits as well as high costs and over-the creation of cash balances. And worried about a number of economists from the continuing high rates of inflation in the country in the absence of mechanisms to reduce height of the government institutions involved in the management of the economy in the country.

http://translate.goo...oogle.com&twu=1

Read more:

[Priscilla]

not for nothing, i have to give adam montanta where credit is due.....he didnt call the Rv or anything but he did say that we should be able to see some real good articles coming out of the sand box.....

this looks pretty damn good......

GO RV!

Yes indeed...go RV

[JWJW11]

it has been said before that inflation has nothing to do with the value of the dinar...

here...

CBI confirms the value of the dinar is not affected by high inflation rates in the country

02/09/2011 11:10

02/09/2011 11:10

Baghdad, September 2 / September (Rn) - The Central Bank of Iraq, Friday, on the value of the dinar is not affected by high inflation rates in the country, denying the existence of any economic risks on the country it came from.

The World Bank called Bank of Iraq, the Ministry of Finance, on Thursday to take action to prevent increasing the persistence of high monthly inflation.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "the concerns of the international financial institutions of high rates of inflation, monthly and annual amounts which are under the control of the Central Bank of Iraq and any threat does not cause deterioration of the value of the Iraqi dinar."

Iraq has seen a rise in inflation for the month of July in 2011 compared to the same month of 2010 by 7.1% after it was last year's 2.4% due to higher prices of housing rent allowances.

He pointed out that "the crisis of the dollar and the rising prices of rents and higher wages for electricity and the main reasons behind the persistence of high inflation in the country."

He explained that "the Central Bank of successful political support in reducing the rate of inflation and reduction in line with demand and supply prices on the Iraq dinar and increase the monetary value."

Defines inflation as excessive in the general level of prices and rising incomes in cash or a component of cash income such as wages or profits as well as high costs and over-the creation of cash balances. And worried about a number of economists from the continuing high rates of inflation in the country in the absence of mechanisms to reduce height of the government institutions involved in the management of the economy in the country.

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Read more:

Correct but thats all the lopsters got.....if you take that a way they got nothing! Anyways the dinar cannot gain value with an RD and accomplish what Iraq has stated they want to accomplish. I dont even agree an RD is a "revenue neutral" event....it would screw everyone involved. Most importantly the citizens of Iraq. Not gonna happen that way............make no sense at all........period......

[The Chancellor]

Is it true that the RV may not happen until the troops leave??? Thoughts?

[JWJW11]

Is it true that the RV may not happen until the troops leave??? Thoughts?

Personally dont see how that s possible with the security issues in Iraq but I am sure you will several different takes on this question.

[Mazzz27]

Is it true that the RV may not happen until the troops leave??? Thoughts?

that could be...terrorist would just buy a nuke lol

[Alex38]

Is it true that the RV may not happen until the troops leave??? Thoughts?

We will ALWAYS be there! We built 9 bases... has nothing to do with it IMMHO.

[The Chancellor]

We will ALWAYS be there! We built 9 bases... has nothing to do with it IMMHO.

Hope you are right. I have heard this at least twice and it worries me.

[k98nights]

I have no doubt the USA will always be there in one form or the other... and I agree... I don't think that has anything to do with the RV.

[keepmwlknfny]

it has been said before that inflation has nothing to do with the value of the dinar...

here...

CBI confirms the value of the dinar is not affected by high inflation rates in the country

02/09/2011 11:10

02/09/2011 11:10

Baghdad, September 2 / September (Rn) - The Central Bank of Iraq, Friday, on the value of the dinar is not affected by high inflation rates in the country, denying the existence of any economic risks on the country it came from.

The World Bank called Bank of Iraq, the Ministry of Finance, on Thursday to take action to prevent increasing the persistence of high monthly inflation.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that "the concerns of the international financial institutions of high rates of inflation, monthly and annual amounts which are under the control of the Central Bank of Iraq and any threat does not cause deterioration of the value of the Iraqi dinar."

Iraq has seen a rise in inflation for the month of July in 2011 compared to the same month of 2010 by 7.1% after it was last year's 2.4% due to higher prices of housing rent allowances.

He pointed out that "the crisis of the dollar and the rising prices of rents and higher wages for electricity and the main reasons behind the persistence of high inflation in the country."

He explained that "the Central Bank of successful political support in reducing the rate of inflation and reduction in line with demand and supply prices on the Iraq dinar and increase the monetary value."

Defines inflation as excessive in the general level of prices and rising incomes in cash or a component of cash income such as wages or profits as well as high costs and over-the creation of cash balances. And worried about a number of economists from the continuing high rates of inflation in the country in the absence of mechanisms to reduce height of the government institutions involved in the management of the economy in the country.

http://translate.goo...oogle.com&twu=1

Read more: http://dinarvets.com.../#ixzz1X66XUy5x

Yes, it speaks about current inflation wont affect the value of the dinar and thats because its on a locked, program rate......if it wasent for that, it would be a different story....

But truth be told, hyperinflation is what got them to the value we see today......hyperinflation and a diluted money supply.....thats what happens when there is nothing to back it up

[Dalite]

So what does that figure out to... 40 cents?

Nice work, if you can get it..

[djgabrielie]

Whoo Hooo go K98 go RV

[k98nights]

Nice work, if you can get it..

I'll take 40 cents all day long!

[Francie26]

We will ALWAYS be there! We built 9 bases... has nothing to do with it IMMHO.

Thanks for reminding us of this, Alex. We simply have to stay in Iraq to assure that what we have accomplished won't turn back to sand and dust immediately after we leave. The democracy of Iraq is entirely too fragile for us to leave it to the likes of Sadr and their neighbor, Iran, which are both just waiting and salivating over what they will do to Iraq when we are gone. All those heavy-duty international organizations (WB, IMF, UN, WTO, etc.), will simply not allow Iraq to be unprotected so those wolves can come back in and take over. In fact, i suspect that Maliki and Allawi both had better get their shiny little acts together pretty quickly, since the world's financial Mega--Powers aren't going to let them keep playing toeses much longer with everything that has been accomplished to bring Iraq into the modern world. They are not about to just easily let go of all Iraq's oil and other natural products which can change the world and realign it financially. The big picture shows us again that Iraq isn't going to sink back into the thousand-year quagmire of tribalism because too much depends on them being dragged, even when kicking and screaming, into the modern world. In the long run, whether Maliki or Allawi sees this bigger picture and acts on it will determine whether either of them will prevail. But it's for sure that Iraq will prevail as a democratic nation.

[In Iraq]

I just finished conversing with an Iraqi merchant about the dinar. He was joking with an African that the 25000 dinar note he gave him was a counterfeit. It wasn’t. I asked him when he thought the dinar was going to change in value. He stated the first of the year they will lift 3 zeros and the dinar will be equal with the US 1 for 1. So I asked him what the 25000 note he held would be worth he said 25 US dollars, the 1000 dinar note 1 US dollar, etc. He also said the dinar will be equal to the Kuwait money gradually. Not exactly the news I cared to hear since I have 6 million but about what I expected from these crooks in Iraq. It sounds like Iraq is getting an interest free loan from the investors and that the only ones profiting are the dinar dealers. Take it for what it is worth but he was happy about this.

[keepmwlknfny]

I just finished conversing with an Iraqi merchant about the dinar. He was joking with an African that the 25000 dinar note he gave him was a counterfeit. It wasn’t. I asked him when he thought the dinar was going to change in value. He stated the first of the year they will lift 3 zeros and the dinar will be equal with the US 1 for 1. So I asked him what the 25000 note he held would be worth he said 25 US dollars, the 1000 dinar note 1 US dollar, etc. He also said the dinar will be equal to the Kuwait money gradually. Not exactly the news I cared to hear since I have 6 million but about what I expected from these crooks in Iraq. It sounds like Iraq is getting an interest free loan from the investors and that the only ones profiting are the dinar dealers. Take it for what it is worth but he was happy about this.

Your not the only one who has talked with Iraqis and posted exactly what you did...there have been others....

Seems to me that the overall mindset of these Iraqis is that a RD is what they want and need....not that they feel like they will be getting screwed at all....

[RICK C]

I just finished conversing with an Iraqi merchant about the dinar. He was joking with an African that the 25000 dinar note he gave him was a counterfeit. It wasn’t. I asked him when he thought the dinar was going to change in value. He stated the first of the year they will lift 3 zeros and the dinar will be equal with the US 1 for 1. So I asked him what the 25000 note he held would be worth he said 25 US dollars, the 1000 dinar note 1 US dollar, etc. He also said the dinar will be equal to the Kuwait money gradually. Not exactly the news I cared to hear since I have 6 million but about what I expected from these crooks in Iraq. It sounds like Iraq is getting an interest free loan from the investors and that the only ones profiting are the dinar dealers. Take it for what it is worth but he was happy about this.

. He also said the dinar will be equal to the Kuwait money gradually. Not exactly the news I cared to hear since I have 6 million

well since the Kuwait dinar is worth $3.66 TODAYS VALUE -I'LL TAKE IT. THANK YOU VERY MUCH.

[Realdinar]

I just finished conversing with an Iraqi merchant about the dinar. He was joking with an African that the 25000 dinar note he gave him was a counterfeit. It wasn’t. I asked him when he thought the dinar was going to change in value. He stated the first of the year they will lift 3 zeros and the dinar will be equal with the US 1 for 1. So I asked him what the 25000 note he held would be worth he said 25 US dollars, the 1000 dinar note 1 US dollar, etc. He also said the dinar will be equal to the Kuwait money gradually. Not exactly the news I cared to hear since I have 6 million but about what I expected from these crooks in Iraq. It sounds like Iraq is getting an interest free loan from the investors and that the only ones profiting are the dinar dealers. Take it for what it is worth but he was happy about this.

So is the project of the removing of the three zeros an rv?

Could be!

What doesnt make sense to me is if they are rding, they are failing from the get go, if they want a smooth transition. If I held 25000 dinars, and the CBI told me my dinars were going to be the most powerful currency in the ME, Why would I exchange 25000 for 25? See how it can be confusing?

Disclaimer- I know the lopsters arguement that during an rd its a revenue neutral event. Im just calling it like I see it. I can only imagine what a typical Iraqi would react to an rd. Yes keepm I know what an rd is, you dont have to explain, im just trying to look at other angles.

[LOWESTCOSTWIRELESS]

Interesting,

Having been absent from following the progress on the dinar for close to a year, I see nothing has changed, the same confusing misinformation is being talked about over and over again. Makes you wonder if this will ever be over. lol Articles state the removal of zeros, nothing new here, then in same article they say they will restore zeros? Then they claim high inflation and need to reform dinar, add coins and new notes, and here we are still no further along than years ago with same confusion. Could reform mean revalue or restore in Iraqi language? Oh well, glad I stopped torturing myself day to day or I would be in nut house by now. lol

Good luck to all,

[Dalite]

I just finished conversing with an Iraqi merchant about the dinar. He was joking with an African that the 25000 dinar note he gave him was a counterfeit. It wasn’t. I asked him when he thought the dinar was going to change in value. He stated the first of the year they will lift 3 zeros and the dinar will be equal with the US 1 for 1. So I asked him what the 25000 note he held would be worth he said 25 US dollars, the 1000 dinar note 1 US dollar, etc. He also said the dinar will be equal to the Kuwait money gradually. Not exactly the news I cared to hear since I have 6 million but about what I expected from these crooks in Iraq. It sounds like Iraq is getting an interest free loan from the investors and that the only ones profiting are the dinar dealers. Take it for what it is worth but he was happy about this.

It sounds like he is at the same place we are, after reading all the redenomination articles.

The downside to that is for the most part they same the same thing in his native language as we are reading in the translations.

The upside is that the plan to ReDenominate has not won full approval yet.

If voted down, other options would be explored.

It is never over until it's over.

[Darin]

Oh, the silly gold rush... Should of been a shovel salesman, I'd be quite wealthy by now.

I find this quote that was inserted by another DV member interesting, as it appears it was from an old article.

CBI confirms willingness to delete zeros from currency after formation of the government directly

Central Bank confirms its willingness to delete the zeros from the currency after the formation of the government directly

The Central Bank of Iraq, on Tuesday, his willingness to delete the zeros of the Iraqi currency after the formation of the Iraqi government directly, pointing at the same time that those zeros that are added to the Iraqi currency during the last period formed a cluster of large cash amounted to 27 trillion Iraqi dinars.

Adviser, said Iraqi Central Bank Governor appearance of Mohammed Saleh said in an interview for "Alsumaria News", "The zeros that are added to the Iraqi currency, during the last period, formed a cluster of large cash amounting to more than four trillion paper cash, financial value of 27 trillion Iraqi dinars, Up from 25 billion dinars in 1980," adding that "Iraq is not capable of managing the bloc because it is a small country where the large number of money circulating in the Iraqi market has led to a confusion in business dealings in the work of large banks."

25 Billion dinars in 1980. I believe the rate was roughly in the $3 range (as the economy was still doing exceptionally well from their agriculture sector).

The old regime may have been a factor in the drop in value, but if my memory serves me right,t he old regime took over in 1979, so I find it hard to believe he would have had an immediate substantial impact.

So, in USD - that 25 billion equaled $75 billion.

Now they're stating 27 trillion... Well, if you remove the zeros, that brings it 27 Billion

27 Billion Xs 0.86 = 23.22 $Billion

Hmm, see the imbalance here?

1980 --- $75 billion

2011 --- $23.22 billion

Okay, so they could likely triple the value and meet their $75 billion. But, what about inflation, population increases, rises in costs of living expenses, higher demand for electricity, etc. etc.

I am prety sure it is "beyond" $75 billion to effectively run that economy.

The USD was flown in to that region to help "prop up" the economy.

Now dollarization is a threat...

So, if they were to LOP, dollarization would still be a threat for some time as it would practically be vital to sustaining the economy.

75/23.22 = 3.23

0.86 x 3.23 = 2.7778

2.77 would be required just to live the life like in 1980. (This does not factor in population increases, inflation, costs of living increases, etc. etc.)

A R/D (revenue-neutral event) is a band-aid so to speak... In the next 10-15 years, it may be very likely their population will double. The economy needs to prepare for the upcoming working class.

I think they are planning accordingly to help ensure democracy does not fail. Many factors that are different from other countries.. So this situation is unique in its own right.

R/D "Removal of 3 zeros" are fear articles. They allow people to be aware of the worst-case scenarios. Does that mean they do not intend to do that? No, it just helps suppress speculation. The rest is still up in the air.

[AudiS4]

I feel the need to chime in. Many of these articles are being mis understood. The claim that it will be the highest valued currency in the region and prospects of 1 dinar to 1 dollar are not lies. What you are forgetting to understand is that their vehicle for these claims is a lop/redenomination. please dont think it means they are going to revalue and that's that. They are making it sound like they will redenominate at the same time they also revalue therefore making a complete wash in increased purchasing power. Yes, a lop would technically increase the value of the dinar, but it doesnt increase purchasing power.

Just because these articles ARE claiming a redenomination/lop doesn't mean I believe that's what they should do. I'm STILL confused as to how all this praise for "removing the zeros, yay for us, we're Iraq and this is a huge step moving forward" really is a step at all. It does nothing financially for them and is permanently screwing the citizens of Iraq.

Also, I know you'll all hate this, but think of it this way. When they say "remove the zeros", some of you think they mean remove the zeros from the currency (which is correct). Others think this means remove the zeros from the exchange rate... which is incorrect. 1) There has been a few articles that clearly spell out in exact words: "remove the zeros from the currency", yet was still interpreted as "remove zeros from exchange rate". Stop lying to yourself. 2) In comparison to the exchange rate of other currencies of the world, some would not have three zeros... so you're assuming that when they "remove the three zeros from the exchange rate" that they're talking about USD... which is an assumption at best. Maybe they're talking about the Yen? Who's really to say which currency they're talking about. Wouldn't they come out and say "yes, we meant exchange rate against the USD" if your assumption of "remove zeros from exchange rate" was true?

Ok so now that I got that off my chest, I still have to admit that I disagree with the lop/redenomination procedure. I have not switched sides to become a lopster... simply have to give credit where credit it due... and that's with the truthful content of what these articles are stating. The whole theory still doesn't make any sense to me and at this point, I dont think it ever will. If they're going to lop/redenominate... why not just DO IT? Why are they talking about it so much? Why couldn't Shabibi tell everyone the details during his videos from April when asked flat out? ("Well even if I knew, I couldn't tell you")... why not, Shabibi? If it's just a redenomination... what are you hiding?

I still think there's more at play here than they're giving out (obviously)... and until the process (whether it's RD or RV) is complete, I'm still in the RV camp.

[Raleighwood]

I feel the need to chime in. Many of these articles are being mis understood. The claim that it will be the highest valued currency in the region and prospects of 1 dinar to 1 dollar are not lies. What you are forgetting to understand is that their vehicle for these claims is a lop/redenomination. please dont think it means they are going to revalue and that's that. They are making it sound like they will redenominate at the same time they also revalue therefore making a complete wash in increased purchasing power. Yes, a lop would technically increase the value of the dinar, but it doesnt increase purchasing power.

Just because these articles ARE claiming a redenomination/lop doesn't mean I believe that's what they should do. I'm STILL confused as to how all this praise for "removing the zeros, yay for us, we're Iraq and this is a huge step moving forward" really is a step at all. It does nothing financially for them and is permanently screwing the citizens of Iraq.

Also, I know you'll all hate this, but think of it this way. When they say "remove the zeros", some of you think they mean remove the zeros from the currency (which is correct). Others think this means remove the zeros from the exchange rate... which is incorrect. 1) There has been a few articles that clearly spell out in exact words: "remove the zeros from the currency", yet was still interpreted as "remove zeros from exchange rate". Stop lying to yourself. 2) In comparison to the exchange rate of other currencies of the world, some would not have three zeros... so you're assuming that when they "remove the three zeros from the exchange rate" that they're talking about USD... which is an assumption at best. Maybe they're talking about the Yen? Who's really to say which currency they're talking about. Wouldn't they come out and say "yes, we meant exchange rate against the USD" if your assumption of "remove zeros from exchange rate" was true?

Ok so now that I got that off my chest, I still have to admit that I disagree with the lop/redenomination procedure. I have not switched sides to become a lopster... simply have to give credit where credit it due... and that's with the truthful content of what these articles are stating. The whole theory still doesn't make any sense to me and at this point, I dont think it ever will. If they're going to lop/redenominate... why not just DO IT? Why are they talking about it so much? Why couldn't Shabibi tell everyone the details during his videos from April when asked flat out? ("Well even if I knew, I couldn't tell you")... why not, Shabibi? If it's just a redenomination... what are you hiding?

I still think there's more at play here than they're giving out (obviously)... and until the process (whether it's RD or RV) is complete, I'm still in the RV camp.

Very good summary.....your on the right track and I agree with you!