Dropping Zeros????

[keepmwlknfny]

KEEPS.

Of course they are not going to advertise that because that would be suicide for them.but I believe they are removing the zero's through the money auctions we have been over this a hundred times.what else would the Goi be doing bringing in all those dinars,they are not recirculating all of them back into the economy the majority of them is getting put away.the people prefer the usd and this makes the perfect time to flood the market with usd and remove the zero's and once they got the amount of the dinar in circulation they could easily revalue it.a lop or remove the zero's off the currency just does not make sense.

Well the auctions are just a way of balancing everything out...which is how it affects inflation and keeping the exchange rate stable

It seems they have to keep selling and buying of USD and dinar and just cycling it back into the economy....

When the banks have too much USD, they sell for dinar, when they have too much dinar, they sell for USD.....

It just goes back and forth. I want to believe that they have been pulling in and retracting the money supply, and there are ways availible for them to do it, the only problem is that there is no evidence of that being done so its a little hard to run with that thought when everything points to the exact opposite.

[Darin]

Well the auctions are just a way of balancing everything out...which is how it affects inflation and keeping the exchange rate stable

It seems they have to keep selling and buying of USD and dinar and just cycling it back into the economy....

When the banks have too much USD, they sell for dinar, when they have too much dinar, they sell for USD.....

It just goes back and forth. I want to believe that they have been pulling in and retracting the money supply, and there are ways availible for them to do it, the only problem is that there is no evidence of that being done so its a little hard to run with that thought when everything points to the exact opposite.

You have to ask yourself, is it wise for them to show any evidence of reducing their circulation amount? If they had a trend where they were clearly pulling in IQD to reduce their money supply, it would become obvious that their IQD is under-valued.

For example, if they had enough liquid assets to support the current rate against what is in circulation by 200%, would you not agree that they should increase the exchange rate?

[Rudolph_the_Red]

Okay- If I am not mistaken dropping zeros is referred to as LOP. This is the most tricky thing and many people get confused on this. This is my view on the matter and not a professional investors view. From the Iraqis that I have talked to, LOP seems very realistic, but they do not have a definate answer on whether it will happen or not. They have seen on the news in the past that it is going to happen. My one friend, Hasan, told me that it was televized in Erbil, Iraq that it would happen in Mid-November (This was in August he told me) As I talked to different Iraqis they all had different opinions and no one is for certain One guy, Mohammed, told me a couple hours ago that he searched all last night for any answers on new currency or the dropping of the three zeros. He could not find anything except speculations on what might happen, no hard evidence though. He GUESSES it will "happen in the second month after the new year 13" which I take as February 2013. Sometimes it is hard to understand and we cannot relay all of our thoughts because of the language barrier and only knowing so much in each other's language. If the LOP does happen, all new currency will be printed.

THIS IS HOW IT WORKS:

Before the LOP Iraqi Dinar will be indicated as IQD(1)

After the LOP Iraqi Dinar will be indicated as IQD(2)

Before the LOP you can buy a toy car for 25000 IQD(1). All of a sudden this LOP happens, all currency in circulation is still valid for a certain time and still holds same value. Then the government issues the IQD(2). Now both IQD(1) and IQD(2) are in circulation but you will have maybe two months to turn in your IQD(1) to be exchanged and destroyed. Now while both are valid you can buy that same toy car for either 25000 IQD(1) or 25 IQD(2). After the grace period the IQD(1) is no longer valid and will not be accepted anywhere.

I pray for an RV but reality is showing the odds are wavering towards a LOP first. But there is still chance of an RV after that to a certain extent, because most countries issue new currency and then RV.

Kuwait didnt necessarily LOP before the RV but the changed their currency multiple times before they "RV'ed" even thought they didnt necessarily RV, their Government never officially devalued the KWD, the people lost confidence in the dinar,and uncertainty of the future and sold for USD at a lower rate(0.10 -1.00 USD)

SOURCES:

en.wikipedia.org/wiki/Kuwaiti_dinar

http://www.bankintroductions.com/kuwait.html

http://www.oanda.com/convert/fxhistory

Search anywhere from 1976-2003 and 1 KWD = 3.33 USD it never lost value it only lost confidence cause it to be auctioned at a lower rate.

I want to apologize for anything I may have done to offend you, I am not saying it will not RV (as I hope it does) but it looks like it will LOP first (so trade your bills in when you can for the newer ones) and then when you have the new bills pray for RV!!!

GO RV! Please do not treat me like I have a RED NOSE and exclude me from your games!

Edited November 16, 2011 by Rudolph_the_Red

[precious1]

Do NOT drop the zeros! They will cause a HUGE mess with them laying all OVER the place! It would make such a saftey hazard!

Be safe! RV!!