!! Reuters Article on XE.COM VERIFIED by Reuters Via Email !!

[Kent]

I did some math, just for myself, to try and understand if a lop would work without an RV. These are 2006 figures, but I doubt the numbers are significantly different from today.

Just as an example, if the $25,000 dinar notes were changed to $25 dinar notes this is how everyday payroll and purchasing would look.

Payroll:

Laborer makes between $10 - $35 USD, which is approx $11,700 - $40,950 dinars

Civil Servant $72 - $380 USD, or $84,240 - $444,600 dinars

If the laborer cashed his check and received the pay in $25 dinar bills rather than $25,000 dinar bills he could receive 1638 banknotes to put in his wallet

The civil servant could receive as much as 17,784 banknotes for his wallet

When they go to spend that money they would need:

1kg lamb = $6 USD = $7020 dinars or 280 $25 dinar banknotes

1kg bread = $.50 USD = $585 dinars or 23 $25 dinar banknotes

1kg rice = $.50 USD = $585 dinars or 23 $25 dinar banknotes

So you would have to carry in your wallet more than 326 $25 dinar notes just to buy dinner. IMO either the dinar has to become more valuable, or the wallets have to get much larger.

Mhammock, that just isn't the way a redenomination works. The prices change at the same time. A redenomination is "a cosmetic change to the bank notes to make payments easier" by deleting zeros. If you want to understand how it works, this is a brochure used to explain it when Venezuela did it. Two currencies. Prices and payroll changed to reflect the new currency immediately. Replacement and retirement of the old with all the zeros. Folks please read this whether you think it will RV, Lop or both. So many people so drastically misunderstand by accepting the statements of others! Please read this:

http://www.reconversionbcv.org.ve/pdf/TripticoColorIng.pdf

Then decide if you think the recent articles describe a redenomination or not... I have no problem with the disagreement over what will or can happen, but at least it should be based on accurate statements.

<<<.........just got off soapbox.

[epicmotors]

I've posted this in a few spots,

Ok folks, I feel like this a great post but keep in mind that the total amount of dinar in circulation 1990 was 25 billion that was worth approximate 70 75 billion us dollars. Now, there is 25 trillion dollars in circulation. TRILLION!! that is a huge huge # 25,000,000,000,000.00 compared to 25,000,000,000.00 that is 1000 times more notes than it was originally. Maybe they purposely printed 1000 times more currency knowing that they would redenominate in the future where both bills would carry the same value, how ever not the value stated on the note itself!!!!!! which is a lop by redenomination. which will bring the total # of bills in circulation to the same number as before (1990), so in the end no gain no loss same # of bills which is easier to bank with less handling as they stated. I beleive the reval will be for the redenominated currency. Example 25,000. exchange for 25 then at some point and time either at the same time or later after the redenomination takes place the reval will take place for the new currecny only, for instance lets say it revals to three us dollars keeping it simple for demonstration purposes then the 25 dinar would then be worth 75 us dollar, which would make things the way they were before (1990) or at least close to it. What does that mean for us, well forget the million dollar dream, but instead a more conceivable realistic return on your investment then the proposed gains of 1000 times or more. three times is still a good ROI better then most I would say. I came into this with high hopes to be indepently wealthy as did most and now it is very clear if you open your eyes to the reality that it is just not possible to revalue 25 trillion dollars more then all the worlds money incirculation combined. I just wanted to shed some light on my my perspective which is only my oppinion, I respect the oppinion of others as well and hope the best for this investment for the betterment of all people. So dont go quiting your day job. ty. aka epicmotors

[Fi3ry_Ph03n1x]

I've posted this in a few spots,

Ok folks, I feel like this a great post but keep in mind that the total amount of dinar in circulation 1990 was 25 billion that was worth approximate 70 75 billion us dollars. Now, there is 25 trillion dollars in circulation. TRILLION!!

There is not 25 Trillion in circulation. 25T is the M2 number. This is all physical currency AND electronic currency. The actual currency in circulation not certain, but probably between 4-7T.

FP

[epicmotors]

There is not 25 Trillion in circulation. 25T is the M2 number. This is all physical currency AND electronic currency. The actual currency in circulation not certain, but probably between 4-7T.

when a rv occurs it will be for both m1 and all including digital wich would be m2 (all physical currency AND electronic currency)the only dinar that wont be a liability to iraq is the dinar printed not released to circulation held at cbi. all other digital or otherwise will rv and follow the same trend as each digital and printed.

FP

when a rv occurs it will be for both m1 and all including digital wich would be m2 (all physical currency AND electronic currency)the only dinar that wont be a liability to iraq is the dinar printed not released to circulation held at cbi. all other digital or otherwise will rv and follow the same trend as each digital and printed.

[errivas]

Yes, but they will only have to have 100% of the M0, as oppose to 100% of M2 (which is a big difference).

[tucson]

IMO, a lop would not help Iraq and there would be no pride in it which it part of the process (restoring pride that is). My understanding is that the UN charter says that if Iraq does what is required, they will be reinstated to the rate they were at when they were invaded by the US. They were at around $3.82 at the time of the invasion I believe.

[Kent]

There is not 25 Trillion in circulation. 25T is the M2 number. This is all physical currency AND electronic currency. The actual currency in circulation not certain, but probably between 4-7T.

FP

Fiery, I normally agree with you completely and frankly this is not the most important issue, but the money in circulation, the M1 and M2 are all easily documented on the Central Bank of Iraq website and your statement is incorrect. A link for the definitions and the link with the CBI numbers are in this post. http://dinarvets.com/forums/showthread.php?10890-TidBit-from-Phonex-on-Dinar-in-Circulation/page2

Phoenix was basing his low figure on not seeing a news article about Iraq printing more money. That is a very flimsy basis for a low figure when the CBI has one on their website.

I also totally agree with epicmotors. If the people in Iraq want their own bank account RV'd you have to use either M1 or M2 in any assessment of the cost to Iraq. About the only thing that is not RV'd is currency in CBI reserve. Everything else (digital or otherwise) that is in circulation gets converted in either a RV or a lop.

[dinarded]

I just wanted to BUMP this thread and remind everyone that the Reuters article, sourced at XE.COM, has been verified through email from Reuters.

[skelly]

from what i understand....we're all going to be rich 3/1/2010

[bootsintaji]

no u wont. as amatter of fact i work with iraqi gov. workers and ill see if they take this pay cut crap and ill let u know if any of this being rich crap is true. if all gov employees are taking a cut then that means military as well. No worries, i will see what really happens.

[quadraph0nic]

I think very soon, I'm either going to be so elated because i will be filthaayyy rich....

or

Im going to be seriously entertained by watching all of the people come out and wwwwhhiiiinee....boo hoo hoo...

I say bring on whatever!!

[hiloeven]

no u wont. as amatter of fact i work with iraqi gov. workers and ill see if they take this pay cut crap and ill let u know if any of this being rich crap is true. if all gov employees are taking a cut then that means military as well. No worries, i will see what really happens.

Any first hand feedback from the worker(s) in Iraq, one way or the other, would be much appreciated-ASAP.

[bootsintaji]

Any first hand feedback from the worker(s) in Iraq, one way or the other, would be much appreciated-ASAP.

Nothing like whats posted here. They believe that there is a wait involved. No high spirits here

[wrebiejo]

At least we now know Reuters is just as much in the dark as we are.

[ronscarpa]

The 3 zeros to be removed from circulation 2010 are: 25K, 10K, 5K, 1K.

The 500, 250, 100, 50, 25, 10, 5, 1, and coins will remain in circ.

In line with what wilecoyote's remark - any RV will have to apply to all currencies from 25,000 to 1, to coins. they can't only selectively devalue the value of certain currencies, and leave others untouched. (ie: one Iraqi hasw 500,000 in 10K notes, and another has 500,000 in 50 IQD notes - their value is & will be the same). Also, as many of our brethern have indicated - RV, then RD. Anyway, that's how I interpret what hjas been said. RON

[racbluto]

The only real reason for bringing out the new smaller denomination is to deal with the problems that come with future increasing value of the dinar. Smaller bills will be needed for accurate market activity. if the dinar reaches a 1:1 value, could you imagine paying for a loaf of bread with the smallest denomination you have being a fifty. by introducing smaller denominations, accurate trade with a higher value dinar becomes possible. leaving the larger bills on the market with such a high value will only invite every counterfeiter in the world to reproduce such a high value ($25000.00) document. They must be removed as the dinar gains in value and replaced with smaller, more realistic denominations. In doing so, you would trade in your 25000 dinar notes for smaller notes like 50-500 dinar notes which still gives you 25000 dinar. if you think about it, changing the value of the 25000 without changing the value of all the notes is a recipe for an economic catastrophe both within the country and with international investors. IMO We will soon change our large notes smaller notes of equal dinar value. It's the only thing that makes since.

This is my thinking exactly, very well put. Thanks for the post.

[racbluto]

How could Iraq ever expect to get the world to invest and help rebuild there economy if they screwed the people who have already invested in them. They maybe hard to understand sometimes and some of this may be smoke and mirrors, but I hope they are not this stupid. I tend to believe the earlier posts of a exchange of the big bills for smaller denominations. Thus removing 000's. A RV/RI as explained by some of our economist is very logical and is a win/win for everyone. And as I remember it explained in one post a 10000 dinar note would in the end cost Iraq about 130 USD by the time it gets back to them. And everyone along the way makes money as well as goverments collecting taxes. While a RV/RI of the value we speculate about would be a epic event never seen before, I still have faith in this investment. ~~~Bluto

[RICK C]

WAS THERE A linc TO VERIFY THIS posted somewhere, if so I missed it. I would like to read it for myself. thank you.

[RICK C]

I see now that this article was from Feb this yr, so nothing NEW to get excited about.also there would not be 2 Currency's-they would issue New lower denominational bills to replace the Large bills. Much like we did with the $1,000.00 US BILL. Perhaps when they get a Prime Minister named and IN Office they'll get down to business and MAYBE -Just maybe the Finance commissoner will hold a meeting when the Oil starts Flowing and see's the Value of it and THEN talks will begin on a true Value for the Dinar, Then we might see a Revaluation. Hopefully. This is ONLY a thought on my part.

[doubleyouiniraq]

Cool Beans....