Dinar News Article from XE Forex

[FMCC]

http://www.xe.com/currency/iqd-iraqi-dinar

More currencies

Iraq, Dinar

The Iraqi Dinar is the currency of Iraq. The currency code for Dinars is IQD, and the currency symbol is د.ع . Below, you'll find Iraqi Dinar rates, a currency converter, Iraqi Dinar News and more. You can also subscribe to our currency newsletters with daily rates and analysis, or take IQD rates on the go with our XE Mobile apps for your iPhone, BlackBerry, or even your regular phone.

The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system." For more information about the redenomination, read "Iraq plans to slice three zeros off currency notes."

[Riley]

http://www.xe.com/currency/iqd-iraqi-dinar

More currencies

Iraq, Dinar

It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars.

Thank you.....

[afarns]

I'll be interested to see how everyone attempts to explain this one away so as not to imply a lop.

[cinnibuns]

at first glance im sure people are going to say lop, but i think its more smoke and mirrors IMO

[captainamerica]

well that doesn't sound good. Does anyone know where you can exchange 25k notes for dinar notes of 100?

[Matt]

No lop! They are not / cannot lop their currency! Imf will not allow it. Be calm and prepare to claim your reward for it will be great!

[War Eagle]

I have a question???? What can the average Iraqi buy with 1 dinar worth .0008547???????????????????

[Matt]

I have a question???? What can the average Iraqi buy with 1 dinar worth .0008547???????????????????

Nothing. That is why they have large bills, until they RV, then the small bills come into play

[keylime]

they say by the end of 2010 they will introduce the new notes....well does that mean the RV, if it happens between now and the end of March we will have at least eight months to cash in before they drop three zeros. And between the RV and dropping three zeros they will introduce the new lower denom notes? This scenario would allow the dinar to rise in value against the dollar, allow all of the large notes to be exchanged or cashed in over an 8 month period while at the same time introducing the new notes during that period, and THEN near the end of 2010 delete the three zeros while maintaining the RV value that happened 8 months earlier. Certainly the dinar must RV before the end of 2010. ???????

[quadraph0nic]

I'll be interested to see how everyone attempts to explain this one away so as not to imply a lop.

What is there to explain? Like this is the smoking gun on the LOP? big deal...believe everything you read if you like.

If it does LOP guess what, I can afford to be wrong. But if you act on this article by pulling out of this investment, and there is no LOP...wow...

If your scared of a LOP maybe try investing in the ISX.

[fatcat]

Let it ride

[lancer22]

I'll be interested to see how everyone attempts to explain this one away so as not to imply a lop.

come on. what have you been reading/studyin..... oh. hahaha nothing. wow afarns....

[jlldrs]

Just wondering if anyone thinks these articles about a LOP are coming out to keep other speculative investors out of this opportunity as we are so close to an RV.

When these stories come out the question that I keep asking myself is why would our own governments supposedly be so heavily invested in this only to get their original investment back.

I for one do not believe their will be a LOP. Thoughts anyone?

[Method_BudC]

It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars.

lop or not what does it matter if value is the same?????

[Torey0112]

Wow..peeps really bash and hate it when a true news article comes out... But peeps love it when rumor mongers put out a false rumor and date.. They seem to worship the ground they walk on!!!... So ... Let me get this straight... News is false and rumors are real!!??!?? Glad I sure don't drink the koolaid... I stick to whiskey!!

[scoty1967]

People wanna put all fath in something they want to hear and when they hear otherwise they think ist a trick.Face it the Dinar will not get us rich,Go on to the next investment and good luck.

Wow..peeps really bash and hate it when a true news article comes out... But peeps love it when rumor mongers put out a false rumor and date.. They seem to worship the ground they walk on!!!... So ... Let me get this straight... News is false and rumors are real!!??!?? Glad I sure don't drink the koolaid... I stick to whiskey!!

[JOHNJOHNNY]

I have a question???? What can the average Iraqi buy with 1 dinar worth .0008547???????????????????

Now ask yourself how big of a money bag or Bus do I need to carry my 1,5, & 10.00 dinar's around in.

[mrref]

This is old news, that news has been going aroung for several months now. Again you cannot predict what these people (Iraqi) are thinking.

[scottiraq04]

I have a question???? What can the average Iraqi buy with 1 dinar worth .0008547???????????????????

The article is explaining a Redenomination at its most basic level...Please let me explain.

"It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars."

Since this was written in English it's easier to breakdown their word for word meaning...Here is what the second sentence is saying:

1,000 IQD (current) = 1 USD

and

1 IQD (new) = 1 USD

This gives us 2 exchange rates during the transition (but only one exchange rate at any given time will be shown on the FOREX's...the timing of when to change it will be up to the CBI):

1,000 IQD (current) = 1 USD an exchange rate of 1 IQD (current) = .001USD

and

1 IQD (new) = 1 USD and exchange rate of 1 IQD (new) = 1 USD

This is perfectly monetarily neutral...hence, "the actual value of the dinar will remain unchanged"

and this is for all those "Logic" people out there:

Premise 1: 1,000 IQD (current) = 1 USD

Premise 2: 1 IQD (new) = 1 USD

Conclusion: 1,000 IQD (current) = 1 IQD (new)

That is a Redenomination...also known as a "LOP", "cutting zeros", "slicing zeros" and "deleting zeros"

The biggest challenge during any Redenomination is "price stability" and "public awareness". It's the CBI responsibility to not only issue the new denominations but make sure the domestic markets are reflecting the proper pricing when comes to the new denominations. This process is slow and very calculated.

The definition of "redenomination" isn't going to change, nor are the historical facts of numerous countries doing this in the past for numerous reasons.

If someone wants to argue that a "redenomination" AKA "LOP" is not going to happen, then I can respect that. Also, if someone is going to argue that all of this is just smoke and mirrors, then I can respect that too......But people, please try not to re-define what a "redenomination" is; the definition is pretty much set in stone...and so far there have been at least 10 really good articles, papers, historical examples and noteworthy definitions explained with good links on this site.

[scottiraq04]

lop or not what does it matter if value is the same?????

Good question...if the value of the Dinar is to "remain unchanged", then this does nothing for the people in the short run (2+ years)...it will only effect the financial system positively...but in the long run (5+ years) it could "possibly" open more doors than you can imagine it closing. Only time will tell....and that's only if this whole thing is not smoke and mirrors.

[scottiraq04]

Just wondering if anyone thinks these articles about a LOP are coming out to keep other speculative investors out of this opportunity as we are so close to an RV.

That is a real possibility...

[scoty1967]

There is no news on the RV, All I see is news on the lop.I cant even find news about a RV.RV is a mith they had this planed all allong

[allooh]

It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars.

Here is my take on this:

I paid $1064 for 1 Million IQD the actual rate was $860 for 1 million IQD

old=pre-redenom , new=post-redenom.

the new 1 IQD will = 1000 old IQD in value

which means 1 new IQD = $0.86 which will also = 1,000 old IQD

Next if they revalue the Dinar to $1.50 just for even numbers then:

1 new Dinar = 1000 old Dinar =$1.50

1,000 new Dinars = 1 million old Dinars =$1500

so now my $1064 investment = $1500 after the RV to $1.50

$1500 - 1064 = $436

if you go to Ali to cash in then $436 - $150 = $286

if you go to the bank @1% = $15 then $436 - 15 =$421

Which is not a bad return on my investment, but we all know

that was not what we got into this investment for.

IMO this is the worst case with the lop but it is still good.

I hope I am wrong and I have been wrong before...A lot.

[penski]

Useful info--i think!

[FMCC]

Did anyone see pre and post? I believe that post denomination will be after RV.