Is it time deleting three zeros from the Iraqi currency

[Dalite]

I don't understand this talk about pallets of money.

THESE DAYS, large amounts of money is wired, bank to bank. And Internationally, using the World's Reserve Currency.

So all this talk about pallets of currency is totally nonsensical.

Possibly after introduction and improvements in electronic banking in Iraq.

The speculation here is how many pallets it will take to fly in the new, Article 140 compliant currency.

This will be physical currency; at least enough to match the 30 trillion in the form of 30 billion new Iraqi Dinar.

[MrFnHappy]

IBN: Regarding trade in general, do you think that the Iraqi dinar is at a reasonable level at the moment, or should it be allowed to float and perhaps appreciate over time?

AD: I think it is a wise policy which we are following, to control our currency and not to allow it to fluctuate. We are still in the early stages of opening the market and liberating our markets and we do need to take hard steps to control the currency from such a high fluctuation, which definitely could destroy the market which is still in its early stages and would not be immune to fluctuation. We are going to continue protecting our currency, and deleting the three zeros from it doesn’t have any negative effect, rather it is just a cosmetic step which could make things easier and make for a lower quantity of paper in the market.

http://www.iraq-businessnews.com/2011/09/15/ibn-interviews-dr-ali-al-dabbagh-part-2/

Let's see this get twisted.

[zigmeister]

Let's see this get twisted.

Okay I will try. They are going to give the dinar a face lift. It will be the same old dinar but just a new look. Like Grand Ma with her new chin and nose and pretty dress. But she is still worth the same. Except when she dies of course there will be an RV.

[Dalite]

Possibly after introduction and improvements in electronic banking in Iraq.

The speculation here is how many pallets it will take to fly in the new, Article 140 compliant currency.

This will be physical currency; at least enough to match the 30 trillion in the form of 30 billion new Iraqi Dinar.

Scratch that. I just read the scenario again, more carefully.

Looks like he is going out of his way to find some way to discredit Shabibi; either that or he thinks this is Afghanistan, and it a rather large poppy purchase.

A billion dollar cash transaction is a bit extreme, to try to negate a forgone conclusion.

I guess I could be a guru and claim that we can't purchase a small country using $100.00 bills, so maybe we need to add some more zeros..

Don't they understand if you revalue the dinar to anything over a penny that every Iraqi will climb over every other Iraqi trying to get to a bank and exchange them for dollars?

I wonder, even at the 1:1 reval that they scoff at here; how exactly does the $50 billion that the CBI states is what they have available to back the current rate is going to pay for a $30 trillion dollar demand...

I realize I am not a Harvard PHD, and my math skills may be suspect, but how do you satisfy over 30 trillion in liabilities with 50 billion in assets.

It looks like they will be about 49 trillion, 950 billon dollars short, but what do I know.

But, if you believe the CBI is lying about the 50 billion dollars in reserves, you can create your own reality.

Let's see this get twisted.

Read the chat above.

It got wound up enough that if you could put a propeller on it, you could go from coast to coast before it straightened out again..

[Darren77th]

This is the same plan they were talking about. It clearly said R/D then and its still saying R/D now. But I thought parliament had voted this plan down. Are we looking at this again

[jmw]

Let's see this get twisted.

I think they twisted a fat one....and now they are FnHappy!

Edited September 16, 2011 by jmw

[MrFnHappy]

I think they twisted a fat one....and now they are FnHappy!

BWAHAHAHAHAHAHAHAHA

[NickMc]

Turkey Inflation

Not that facts really matter, but here are the official inflation numbers from Turkey for the years leading up to and following their redenomination in 2005.

They never Lopped, they Redenominated.

Year................percent inflation

1999..................65%

2000.................39%

2002.................45.2%

2003................25.3%

2004................9.3%

2005...............8.2%

2006...............9.8%

2007..............8.7%

2008..............10.4%

2009.............6.3%

2010.............8.7%

Source: CIA Factbook January 1, 2011

Who has been feeding you this nonsense.

It is being quoted all over DV, and is getting pretty obvious that someone has been getting punked.

The next time they lie to you, call them out.

The facts are too easy to find, and verify, to allow someone to keep causing this kind of confusion.

You might want to look at this http://www.tcmb.gov.tr/yeni/iletisimgm/NTL_faq.htm

[Shick]

What was the significance in viewing the Turkish re-denomination?

[Dalite]

You might want to look at this http://www.tcmb.gov.tr/yeni/iletisimgm/NTL_faq.htm

I have read it many times, as well as posted it in it's complete form in the past as well as posted the link on numerous occasions .

Was there something in particular that you wanted to point out?

Edited September 16, 2011 by Dalite

[NickMc]

What was the significance in viewing the Turkish re-denomination?

The significance is that Iraq is in a completely opposite situation as turkey as far as their economy, the amount of notes in circulation and the amount of zeros on their notes so where is the justification for Iraq to follow that example?

[jmw]

The significance is that Iraq is in a completely opposite situation as turkey as far as their economy, the amount of notes in circulation and the amount of zeros on their notes so where is the justification for Iraq to follow that example?

Not exactly....the CBI has been using Turkey as an example of what TO do in a redenomination as it was a very successful one and was very recent. Outside of the number of zeros removed the situation are very similar. Both are redenominating after years of hyper-inflation followed by a stabilization of their economy and currency. Historically this is the best time to redenominate. I think they will follow what Turkey did to a T....even as it pertains to the amount of time to exchange old for new currency.

[FrankieV]

The significance is that Iraq is in a completely opposite situation as turkey as far as their economy, the amount of notes in circulation and the amount of zeros on their notes so where is the justification for Iraq to follow that example?

No, they're in the exact same situation except their inflation hasn't been quite as bad (which is why they would only delete 3 zeros instead of 6) and their (Iraqs) economy is nowhere near as good (around 1/5th of what Turkeys is, the last I checked).

Anyone that doesn't realize that "delete/raise/drop/remove three zeros" = RD (i.e. lop) either hasn't done their homework or has dinar fever so bad they're incapable of rational thought. There have been articles from Iraq that talk about Turkey deleting three zeros, there have been articles that say 30 trillion in circulation becomes 30 billion, there have been articles talking about a completely new currency, there have been articles that say 1200 dinar become 1 dinar and 200 fils. There have been articles that say the value of the money supply doesn't increase.

Anyone that buys into the guru lie that "delete three zeros" = RV is fooling themselves. It really is that simple.

Enoch8 seems to have also not done his homework.

[9/14/2011 11:25:42 PM] Enoch8: She basically said the same thing I did about the article....

[9/14/2011 11:25:54 PM] Enoch8: "We need a few days to decipher that one."

[9/14/2011 11:37:42 PM] Enoch8: Reviewing the article for the second time right now.... in a bit greater depth....

[9/14/2011 11:38:41 PM] Enoch8: So far..... in the first half, he is making the point that the cost of handling international transactions is heavy, using a banknote that is worth less than $21.

[9/14/2011 11:39:44 PM] Enoch8: Making the argument, that it is expensive to handle so many notes.... with so little value and is why dollarization is a problem.... because of the need for a note at least the value of the US $100.

[9/14/2011 11:40:24 PM] Enoch8: I can tell you this..... that the size transactions we are talking about..... even $100 Bills are way to expensive to handle.

[9/14/2011 11:41:07 PM] Enoch8: We need even here, to bring back the $1000 and $10,000 Notes..... or do a 10 to 1 revaluation, ourselves.

[9/14/2011 11:41:39 PM] Enoch8: Example:

[9/14/2011 11:42:44 PM] Enoch8: $ 1 Billion transaction in cash, at $1.00 value on Dinar, would be about a half a pallet in 25,000 IQD notes.

[9/14/2011 11:43:03 PM] Enoch8: At the current value.... it is about 500 pallets!

[9/14/2011 11:43:18 PM] Enoch8: Each should weigh about half a ton.

[9/14/2011 11:44:03 PM] Enoch8: so a Billion Dollar transaction in banknotes would require transport and storage of about 250 tons of paper.....

[9/14/2011 11:44:22 PM] Enoch8: To LOP..... does not fix that problem!!!

Yes, it does. It's quite obvious that it does. When you lop you print COMPLETELY NEW currency. If you're doing that, you don't have to stick with the same old denominations (minus the three zeros). When they lop they can bring out a 100 dinar note (equal to 100,000 dinar at todays values), a 1,000 dinar note (= 1,000,000 current dinar) or WHATEVER notes they want. The fact that Enoch8 doesn't understand this very simple fact leads me to believe anything he says is extremely suspect. He either hasn't done his research or he's pumping without any regard for the truth for some reason.

[Dalite]

I have heard high up sources state there are less than 15 trillion dinars in circulation now. Iraq has been buying up all the dinars with US dollars for years.

A very persistent forum fact.

In actuality, the CBI auctions keep the dinar and dollar both in circulation.

If what you are saying was true, they would not have had dinar in circulation in years.

The CBI says 30 trillion liability currently. They are in a better position than I am to set a number, but in looking at their spreadsheets, it is hard to imagine anything different.

Your high up sources misinterpreted the CBI's progress reports on the completion of the plan that was presented tp parliament; not how many big bills that were taken out of circulation.

If what they are saying is true, there would be only be 500, 250 and 50 dinar notes in circulation since May of this year.

Far too many people currently in Iraq have proven that to be absolutely wrong.

It sounds great, but no basis in reality.

What was the significance in viewing the Turkish re-denomination?

That is a question best asked of Shabibi.

It's his redenomination, and that is his example.

The significance is that Iraq is in a completely opposite situation as turkey as far as their economy, the amount of notes in circulation and the amount of zeros on their notes so where is the justification for Iraq to follow that example?

You could not possibly be any further from the truth while still speaking english.

Turkey had over 100% inflation at it's worst point. Six zeros were added.

When it was reduced below 10% and stabikized, they deleted six zeros.

Wax On, Wax Off

The amount of notes, the exchange rate and production, taken together, determine the balance; or lack thereof .

Iraq chooses to ReDenominate for the same reason any country with zeros added to their currency during periods of hyperinflation does, after inflation is back under control (10% or below, their choice).

All of this idle talk and fantasy chats are great, but it is Shabibi's redenomination, and Turkey is his comparison.

His email address isn't hard to find.

Tell Shabibi.

[BondLady]

getting ready to head home been a very long 18 hour day for me but i told yall if kap came by id copy his chat for yall its not much but here it is, **********[bondLady] ur article sure stirred up some lopsters in a big ol giant pot buddy

[kaperoni] BondLady

[kaperoni] bring it!

[bondLady] man i been fightin lopsters off right an left cause of it

[bondLady] u wanna inerpret it for us kap

[kaperoni] BondLady show them the Turkey facts...that kills most RedLOPsters

[bondLady] ill go get the art for u

[bondLady] an bring it in

[bondLady] i just did kap

[bondLady] u wanna do a chat here on it kap?

[kaperoni] u all know what the exchange rate was in Turkey when they LOP'd?

[kaperoni] um, dont have that much time BL

[bondLady] hold on kap imma grant u VIP while ur here brb

[kaperoni] 1, 800,000 to $1

[kaperoni] yup that right...1 million, 800 thousand to $1

[kaperoni] that 1000 times worse than Iraq

[bondLady] ok what did u take from that art then'an ill not bring it in just talk about it

[kaperoni] is now

[kaperoni] BL, which article? the CBI assistant one?

[bondLady] the 1 u dropped off here

[kaperoni] k

[bondLady] says lopster fishing all over it

[kaperoni] good one

[bondLady] i didnt see it tho

[kaperoni] kap chat today at 4pm cst

[bondLady] i did see what could be used as a rate tho in it

[bondLady] 1.4

[kaperoni] well that could be a good rate

[bondLady] an i did see other things tho but it did almost come right out an say the dirty word

[kaperoni] many feel it will be 3+

[bondLady] 4 trillon divided by 2.8 billon

[kaperoni] getting back to LOP talk

[bondLady] dn figured it for me came out to be 1.4

[dogznova] when i reread it.. it sayed that the amount of paper currency was gonna drop from 4t to 2.8B.....

[dogznova] but I dont think we can get the rate from that

[kaperoni] when a central bank does a LOP, it is, in essence, complete failure of the monetary policy

[shredd] i wouldn't think so dog

[kaperoni] and assuming the CBI was going to LOP, they would be tell Shabibi, sorry your hard work was for nothing

[kaperoni] over the past 7+ years

[kaperoni] and didnt work to control inflation or the exchange rate

[kaperoni] Well that is not the case or is going to happen

[kaperoni] Shabibi has done a great job

[kaperoni] his inflation is under 6%

[kaperoni] and Turkeys was 38%

[kaperoni]

[bondLady] his inflation is close to 10 now kap

[bondLady] even n the cbi its over 7

[kaperoni] so you all can see, a LOP is a last resort

[kaperoni] and is a complete failure of the economic policies

[bondLady] and if u look at the inflation/ core inflation it went up 2.5% last month alone

[kaperoni] which would be desasterious to Iraq

[kaperoni] and that would never happen

[bondLady] it was 7.1 add 2.5 thats 9.6

[bondLady] the cbi graph shows this

[kaperoni] BondLady I saw an article yesterday saying inflation dropped to 5.2% in Sept...i may be wrong

[bondLady] no

[bondLady] it says it rose

[bondLady] 5.2

[bondLady] it went up

[bondLady] not down

[bondLady] go to the cbi

[kaperoni] k

[bondLady] look at the graph

[kaperoni] k

[bondLady] it went crazy last month

[bondLady] ill link u

[bondLady] hold on brb

[kaperoni] to be honest i been really busy studying this other document...u all seen it?

[dogznova] can i ask a ?

[kaperoni] sec

[kaperoni] i get it

[kaperoni] http://translate.google.com/translate?hl=en&prev=/search%3Fq%3D%25D8%25A7%25D9%2584%25D8%25A8%25D9%2586%25D9%2583%2B%25D8%25A7%25D9%2584%25D9%2585%25D8%25B1%25D9%2583%25D8%25B2%25D9%258A%2B%25D8%25A7%25D9%2584%25D8%25B9%25D8%25B1%25D8%25A7%25D9%2582%25D9%258A%2B%25D8%25AD%25D8%25B0%25D9%2581%2B%25D8%25A7%25D9%2584%25D8%25A3%25D8%25B5%25D9%2581%25D8%25A7%25D8%25B1%2B3%2B2011/09/12%26start%3D40%26hl%3Den%26sa%3DN%26rls%3Dcom.microsoft:en-us:IE-Address%26rlz%3D1I7RNSN_en%26biw%3D1280%26bih%3D654%26prmd%3Divns&rurl=translate.google.com&sl=ar&u=http://www.al-ansaar.net/main/pages/news.php%3Fnid%3D8621

[bondLady] this is just the home page an not the graph

[bondLady] Economic indicators Core inflation (YoY): Jul 2011 7.09% Inflation (YoY): Jul 2011 6.18% M2 growth (YoY): Jun 2011 11.5%

User joycer [67.36.183.91] has signed in.

[bondLady] look at this kap

User lightingcslt [24.129.103.4] has signed in.

[bondLady] http://www.cbi.iq/documents/inflation_chart.jpg'>http://www.cbi.iq/documents/inflation_chart.jpg

[bondLady] see july an august

[bondLady] august spiked to the roof of 2.5%

[bondLady] it was 7.1 in july

[bondLady] an now were in the middle of sept

[kaperoni] BondLady only goes to June 2011

[bondLady] the way for u all to read this graph

[bondLady] is to look at it like ur lookin at ur electric bill

[bondLady] u have to go from right to left also because its arabic

[bondLady] so in ur elect bill

[bondLady] they show u a graph

[bondLady] what u used last year

[bondLady] what ur useing this year

[bondLady] and what u will approx use

[bondLady] thats why the 3 sections

[bondLady] the middle 1 is 2011

[bondLady] where the high spike is is august

[bondLady] an it shows u so far whats happen to date for sept

[bondLady] well dur kap this is 2011

[bondLady] what did u want them to show how much in 2012

[kaperoni] BondLady u lost me, that link shows nothing

[bondLady] they show u according to past use what they can approx it at

[bondLady] doesnt mean its gonna be that

[bondLady] it shows the whole inflation graph kap

[bondLady] it shows how much it sky rocketed

[kaperoni] bl i see nothing

[bondLady] http://www.cbi.iq/docume ··· hart.jpg

[bondLady] look again

[bondLady] or go to the cbi an click statistics

[bondLady] then click inflation

[bondLady] under exchange rates

[bondLady] no

[bondLady] hes here

[kaperoni] BondLady well sorry i cannot follow this

[kaperoni] it dont work

[bondLady] no biggie i just wanted him to explain his drive by lop article

[shredd] *****Inflation is rising for the second consecutive month in Iraq ***** http://www.xxxxxxxxxx.com/t11463-inflation-is-rising-for-the-second-consecutive-month-in-iraq?highlight=inflation ··· nflation This article says August 2011 inflation rose 1.5%

ondLady] its up to 1.5 so far this month

[bondLady] the graph i tried to show kap shows that

[shredd] crazy!

[bondLady] so thats goin over 10 now

[bondLady] jan 2011 they had the lowest of any country period

[bondLady] 2.3%

[bondLady] jan 2011 they had the lowest of any country period

[bondLady] 2.3%

[kaperoni] take care

[bondLady] ty

*********** [kaperoni] The budgets are growing and a portion of those budgets would benefit with a better exchange rate

[kaperoni] The banking sector desperately needs an international currency

[kaperoni] Iraq needs a new currency that is less arithmetic with numbers are less numerous on the level of the accounts of the federal budget, budgets of banks and companies

[kaperoni] They need to reverse the trend of negative effects on the regularity of the commercial market and the labor markets and production and living standards of citizens

[kaperoni] And they need to lower inflation which is not reaching dangerous levels in regard to this policy. 7.68% for Aug.

[kaperoni] Therefore, we can conclude that the CBI will do this within the next 30days.

User mikecoy has entered this room.

[kaperoni] . IMO, this could have as soon as this weekend (if the 30 day window started 8/16)

[kaperoni] or it might go out as far as Oct 15th if the window started on 9/14.

[kaperoni] I tend to think, based on the recent article attempting to create a negative effect on the CBI’s efforts we are closer to this than later.

[kaperoni] Now, I need to put this in perspective.

[kaperoni] There are many that still don’t feel that this can happen, that the currency will not be honored at face value at the new exchange rate. They are believer’s of the LOP theory.

kaperoni] Lets that a brief look at Turkey as an example…

[kaperoni] First, a LOP as some call it would be an abandonment of the current economic monetary policy. They would be saying in essence, that the current policy has failed, and we have no choice but to start over sort of speak.

kaperoni] That type of action, has several side effects. First it would be saying to Shabibi, who has spend 7 years controlling inflation and lowering it to 3% (last Oct) and managing a stable exchange rate for over a year, that your efforts were not successful.

kaperoni] Telling one of the best economists in the world that..Dr. Shabibi

[kaperoni] That is not going to happen and is factually an incorrect assessment of his work. In fact Shabibi himself has stated numerous times… “there was a lot for Iraq to learn from Turkey.” And “a time so that the entire market does not have to shut down during

[kaperoni] the transition period”

[kaperoni] You see, he is stating that good economic policies prevents such an event, and as would ahv to occur in a LOP situation (complete shutdown and replacement) he is not going to do that. He is going to do a gradual substitution of notes.

[kaperoni] Large 3 zeros out and small bills in.

[kaperoni] It also states to the world that such action would cause a loss of IMF assistance, and a danger of the losing guarantees on credit and major foreign creditors to further finance reconstruction.

[kaperoni] Again, another reason this will not happen.

[kaperoni] Any such event would be a new currency. and a SWIFT code change would be required…and that make no sense when they just a few months ago were recognized with the New Iraq Dinar (NID). Iraq is not introducing a new currency, just new lower denomination.

kaperoni] As well, we can look at numbers

[kaperoni] At the time of the event, inflation was 40%, and the Turkish Lira was 1,800,000 to $1 USD. 1,000 times greater than currently in Iraq.

[kaperoni] All of these conditions do not exist in Iraq.

[kaperoni] Their policies are sound, there relationship with the IMF is under the frequent review (Standby Agreements), and World Bank, Paris Club have benchmark achievement goals for Iraq under the signed agreements that are frequently reviewed.

DONE

hope this helps ..........BL

[xyzzy]

[kaperoni] That is not going to happen and is factually an incorrect assessment of his work. In fact Shabibi himself has stated numerous times… “there was a lot for Iraq to learn from Turkey.” And “a time so that the entire market does not have to shut down during

[kaperoni] the transition period”

[kaperoni] You see, he is stating that good economic policies prevents such an event, and as would ahv to occur in a LOP situation (complete shutdown and replacement) he is not going to do that. He is going to do a gradual substitution of notes.

[kaperoni] Large 3 zeros out and small bills in.

[kaperoni] It also states to the world that such action would cause a loss of IMF assistance, and a danger of the losing guarantees on credit and major foreign creditors to further finance reconstruction.

Of course markets do not have to shut down, Venezuela did not shut down while it made the transition over 3 years from the VEB to the VEF at 1000:1. Many articles all have talked about "both currencies" existing side by side. I don't know who Kaperoni is, but all he/she is doing is trying to find a way to twist things to show no RD, when in fact all signs clearly point to one. Shabibi has said exactly this, that the decision to RD has already been made and the only question is when. We have him on video on another thread saying exactly this (and of course the instant-millionaires club claim even that is proof of no LOP!).

[FishmanTx]

How is a LOP and RD different? I think they will simply RD so as an example, if right now 1,000 dinar = 1 usd after they Rd it would be 1 dinat to 1 usd. Eventually they will be let out of chap 7 restrictions and we will watch the dinar rise in value over time. It still should give us all a chance to profit on the investment, but it's tough to see why they would RV before RDing....how would that benefit them? They would have to pay out a fortune. They can simply achieve a 1 to 1 value with the dollar by simply RDing. All of their goals would be achieved. Unless there is something I am missing?

A LOP and RD are 2 different functions. An RD is the issuance of a new currency of different denominations as a replacement for those that are currently in circulation. A LOP changes the perceived or effective value of an existing denomination by virtually moving the decimal point on the currency; ex: 25k IQD = 25 IQD. An RV is a change of the exchange rate only.

Any of these can be utilized in any combination, but with either LOP or RD, an RV MUST follow to correct the new currency denominations actual value in the world markets.

Edited September 17, 2011 by FishmanTx

[xyzzy]

A LOP and RD are 2 different functions. An RD is the issuance of a new currency of different denominations as a replacement for those that are currently in circulation. A LOP changes the perceived or effective value of an existing denomination by virtually moving the decimal point on the currency; ex: 25k IQD = 25 IQD.

A LOP as you describe it can not happen in my view. How would it every make sense, in any context for two bills of the SAME currency but of different denominations to have the same value? I think this whole idea of a LOP as you describe it was invented by those trying to trivialize an RD. We have many examples of RDs, can you offer any examples of such a LOP? I doubt it. I don't think they exist.

[RealisticInvestor]

It happens all the time! Turkey went through the process where new notes are worth more than old notes. An old 25k dinar note will equal a new 25 dinar note and they will coexist. It happens all the time! Don't be a fool and say it can't happen because it does! Do a little research next time.

It can't happen in your view because you're wearing dinar goggles ad only a gigantic RV is possible in your view. Take those goggles off and try to learn a few facts. Read my last post if you need some help.

[xyzzy]

It happens all the time! Turkey went through the process where new notes are worth more than old notes. An old 25k dinar note will equal a new 25 dinar note and they will coexist. It happens all the time! Don't be a fool and say it can't happen because it does! Do a little research next time.

It can't happen in your view because you're wearing dinar goggles ad only a gigantic RV is possible in your view. Take those goggles off and try to learn a few facts. Read my last post if you need some help.

To what post are you responding? Edited September 17, 2011 by xyzzy

[tyron]

Will whoever is giving Dalite a minus on every single post the guy writes, please kindly stop! It slows my reading down quite a bit to have to even him out so much.

[zigmeister]

Will whoever is giving Dalite a minus on every single post the guy writes, please kindly stop! It slows my reading down quite a bit to have to even him out so much.

Holy Smokes I have some extra +'s why did you not mention it? I hate to see Dalite unbalanced here.....

I know its a dirty job but someones got to do it!

Edited September 17, 2011 by zigmeister

[Dalite]

Holy Smokes I have some extra +'s why did you not mention it? I hate to see Dalite unbalanced here.....

I know its a dirty job but someones got to do it!

Thanks guys.

I know I wear out my welcome sometimes.

I appreciate the support.

We all may not always agree on everything, but we are all on this together

[buffalowade1]

How is a LOP and RD different? I think they will simply RD so as an example, if right now 1,000 dinar = 1 usd after they Rd it would be 1 dinat to 1 usd. Eventually they will be let out of chap 7 restrictions and we will watch the dinar rise in value over time. It still should give us all a chance to profit on the investment, but it's tough to see why they would RV before RDing....how would that benefit them? They would have to pay out a fortune. They can simply achieve a 1 to 1 value with the dollar by simply RDing. All of their goals would be achieved. Unless there is something I am missing?

Yes and how do they operate and do buisness with no currency to speak of. Most of it I'm sure is already outside the country in investors and different countries hands, due to their ongoing auctions that's been selling dinars for years Their Dinar would still be virtually worthless still. Most people are not going to give it back to them without seeing a good profit. Also that would put an end to them selling dinars on auction. Very few investors would buy them anymore. Really need to think outside the box on this one. I do not see them Lopping the currency period.Just not going to happen.

Edited September 17, 2011 by buffalowade1

[Francie26]

Maybe I'm too simplistic, but it just seems to me that Shabibi intends to take 30 million in large dinar notes off the market, and replace them with 30 million dinar in smaller notes, making no change in the currency value.