Central Bank reveals details of the Iraq Currency

[Carrello]

I would like to see a translation other than Google of this article. Perhaps Bond Lady or Kaperoni will have this one translated. I will check on their sites, but I don't have much time today. Those easy access days are over.

I may be able to get it translated later in the day for $20. Maybe Iraqi Queen will move through today and give us a translation.

[Sanssouci]

I'm sorry but is that sarcasm?? I can't tell...

Of course it is. Dalite and others of his ilk consider their sarcasm a strong suit. But it gets old...

[keepmwlknfny]

They can't take the old and make change with the new.

That doesn't address the remnants of the past high inflation, nor limit the liability to back the 30 trillion the CBI is so worried about.

What you continue to describe has never happened before in the history of currency.

I am not saying it can't, but the odds are extremely high that not only has it never been done before, it is unlikely to ever be done in the future.

The concept is to remove the negatives of past inflation, reduce the cash liability and give the money strength, while prepping the economy for expansion and growth.

Shabibi plans on increasing foreign reserves to 70 billion, so you can see he has definite plans for growth and to be able to back higher exchange rates in the future.

I really would like to see it play out the way you keep describing it, when you post these articles to taunt others.

Unfortunately, the CBI sees a redenomination as a redenomination, and plans on executing it as such.

Having said that, like others have already said, we will know for sure once it is done.

All we are doing is discussing possibilities and probabilities at this point.

Imagination creates the possibilities; history defines the probabilities.

Wow....couldnt have said it better myself

[Aqua Dude]

Awesome.

Now, they are adding 3 zeros to your 25,000 dinar notes to make them 25,000,000 notes, while deleting 3 zeros from the exchange rate to make it $.86.

That would make each 25,000 dinar note worth $21,500,000.

'Nuffi said; it just doesn't get any better than this.....

increase by three zeros = remove three zeros

.00086 --> .86

.86 is an increase of three zeros

.86 is a removal of three zeros

yes, you are right, AWESOME!

increase value? The IRaqis are the biggest pumpers of all...

hahaha.....

Remove 3 zeros, increase value? A lop and what? change their monetary policy so they only have to back 20 - 25% of it and give u $3+ to one dinar......yeah Iraq I dare you!

Guess what? We'd all cash in....ALL OF US AROUND THE WORLD!! MUWAHAHAHA!!

There were articles the other day that says there is only 4 Trillion dinar in circulation IN IRAQ...when you look at cbi's M1 for their dinar, its like 55T

How much did we buy? How much did CBI collect? hmmm??

I'm betting we bought A LOT and CBI has collected a lot from their citizens!!!

Do you really think these Iraqis want to pay us all at once by doing anything definite to their currency? Do you think they will tell us? They friggin hate us! and for those that think they are talking about an RV, I'm sorry to say that's wrong...but keep buying dinar please! hehehe

Lets be honest, there's no way they can go straight up from 1170 to the dollar to an exchange rate of 1 to 1 overnight...NOT happening...thats not how the world works...when has that ever happened before?

Is this a currency that represents a nation and its economy, or is the dinar like a stock?

I do believe they will start to manipulate the exchange rate letting it increase against the dollar over time once they are done playing political theater with this issue and once they have enough currency withdrawn and they sell more securities...but they are not in a hurry or possibly not ready, and at this time, I believe their economy has full support of our US dollar acting as a surrogate currency and anyway no other lopping country has done that. Also,. most Iraqis' savings is in Dollars. Remember that. Those reasons and the fact that we are holding so much dinar which they must honor (YES THEY MUST!) since they issued it, is why they can't ever LOP or do an RV and their only option with their currency is to allow it to appreciate slowly and hope to cash us out here and there rather than ALL AT ONCE!! Think about it! Be ready for this as a possibility people!

imho this is the only way everyone including Iraq can prosper

"Iraqis" can pay us all day FOREVER in oil and other commodities they have in excess, they will never have to give the US USD

[ssmith]

Awesome.

Now, they are adding 3 zeros to your 25,000 dinar notes to make them 25,000,000 notes, while deleting 3 zeros from the exchange rate to make it $.86.

That would make each 25,000 dinar note worth $21,500,000.

'Nuffi said; it just doesn't get any better than this.....

I love it , thank you..

[Sanssouci]

"Iraqis" can pay us all day FOREVER in oil and other commodities they have in excess, they will never have to give the US USD

Right. As I have said before, oil wealth and mineral wealth is the new "gold standard."

[Aqua Dude]

They can't take the old and make change with the new.

That doesn't address the remnants of the past high inflation, nor limit the liability to back the 30 trillion the CBI is so worried about.

What you continue to describe has never happened before in the history of currency.

I am not saying it can't, but the odds are extremely high that not only has it never been done before, it is unlikely to ever be done in the future.

The concept is to remove the negatives of past inflation, reduce the cash liability and give the money strength, while prepping the economy for expansion and growth.

Shabibi plans on increasing foreign reserves to 70 billion, so you can see he has definite plans for growth and to be able to back higher exchange rates in the future.

I really would like to see it play out the way you keep describing it, when you post these articles to taunt others.

Unfortunately, the CBI sees a redenomination as a redenomination, and plans on executing it as such.

Having said that, like others have already said, we will know for sure once it is done.

All we are doing is discussing possibilities and probabilities at this point.

Imagination creates the possibilities; history defines the probabilities.

your arguement that it has never happened before does not suffice....there are many things that have never happened before, but yet occur.....please come with something more concrete...please don't accuse me of 'taunt'ing others when NO NAMES were given, please, just stop.......actions like these are what ends up classifying one as a basher

Edited October 13, 2011 by Aqua Dude

[OregonHopeful]

I don't believe in the lop theory. The people would totally revolt. They are fed up already with their lower class of living since the devaluation.

I think some people have a hard time accepting how "value" can be created out of thin air. This happens all the time in IPO's of stocks.

When a company goes public and does an "initial public offering" of their stock, they set the value for the opening price. This creates an instantaneous

influx of value and funds to the company. Anyone that already owned stock (the founders and management of the company) become instant millionaires because of the value of their stock that just took a huge leap.

The same can happen with Iraq's currency. Iraq is like a company that will do an "IPO" of their currency to the global market.

[Sanssouci]

your arguement that it has never happened before does not suffice....there are many things that have never happened before, but yet occur.....please come with something more concrete...please don't accuse me of 'taunt'ing others when NO NAMES were given, please, just stop.......actions like these are what ends up classifying one as a basher

Correct. It was said that nothing like 9-11 had ever happened before, and most people agreed.

[Aqua Dude]

"realists", IMHEO, dinars that will be cashed in at banks offshore from iraqi will be used as oil credits, those dinars will be sent off to the treasury and the treasury will conduct wire transfers or palate shipments of dinars back to Iraq, iraq will pay us in oil and commodities and VERY LITTLE CASH, we get the oil.....gov sells it to oil co's, oil co's give US treasury the money for payment, that money goes to fund the banks, so we can spend it on oil, in different ways of course, like geeting food to the market from the farm, everyday driving, cruises, airplanes, transporting all kinds of stuff....oil co's get more money, to buy more oil, money goes to gov for payment for oil coming from iraq...and the circle continues....you do know that the US is supposedly opening new pipelines and old oil wells as a cover

but what do i know, the whole above situation i said makes no sense at all, afterall, simple because IT NEVER HAPPENED BEFOooooOOoorreeeeeeee

Edited October 13, 2011 by Aqua Dude

[xyzzy]

"Iraqis" can pay us all day FOREVER in oil and other commodities they have in excess, they will never have to give the US USD

When you go to cash in I'm sure you will be happy to not get USD but instead get a certificate that says "May be redeemed for an unspecified amount of dollars at an unspecified date in the future dependent on future Iraq oil production"! Edited October 13, 2011 by xyzzy

[Aqua Dude]

When you go to cash in I'm sure you will be happy to not get USD but instead get a certificate that says "May be redeemed for an unspecified amount of dollars at an unspecified date in the future"!

you were better off keeping your fingers still, that made no sense to me, and sense it was directed towards me, then it matters that it doesn't make sense to me, therefore it was a complete waste of your time, and my time for having the feeling arise within me that i need to reply to your nonsensical statement just to let you know that it lacked sense.

[Sanssouci]

When you go to cash in I'm sure you will be happy to not get USD but instead get a certificate that says "May be redeemed for an unspecified amount of dollars at an unspecified date in the future dependent on future Iraq oil production"!

Two words: Oil credits.

[billbill]

Lets getter done already!!!!!!!!!!!!!!!!!!!!!!!

[trooper]

25,000 = 21$ now.... Remove the zero's.. 25 now RV that at 3 dollars = 75$ that's what i get from all these articles... I am no Lopster by any stretch of the imagination...

[xyzzy]

Correct. It was said that nothing like 9-11 had ever happened before, and most people agreed.

9-11 was a singular event. It did not require an entirely new mode of interaction between airplane manufactureres, airlines, airports, passengers, ATC, etc across the global air transportation system.

A RV for the Iraqi dinar at $3 would require a complete restructuring of the global economic system which arbitrarily and overnight puts Iraq on top and thus also greatly decreases the wealth of the rest of the world in comparison. Believe that will happen if you like, I think its nonsense. A RD of course requires none of the that but gets Iraq were they need to go for future growth. Iraq is planing for stable long term economic growth, not a scheme for riches beyond imagining overnight.

[Aqua Dude]

25,000 = 21$ now.... Remove the zero's.. 25 now RV that at 3 dollars = 75$ that's what i get from all these articles... I am no Lopster by any stretch of the imagination...

sensible, and respectful towards other opinion while letting yours be heard, bravo i must say

IMO, 25,000 IQD = $21, now at a rate of 1 USD to 1170 IQD a.k.a 0.00086 nominal or .00086 USD per IQD, 'remove three zeros' off nomial which would become 0.86 which makes the exchange rate .86 USD per 1 IQD making 25,000 dinar worth $21,150 USD

as you see the purchasing power has 'increased by three zeros' like the article stated(use to be worth $21 now worth three zeros more, $21,150) AND the CBI has "deleted three zeros" from the exchange rate/nominal value(used to be .00086 and now is 0.86) LIKE THE ARTICLE STATED

+1 if you understand this math

Edited October 13, 2011 by Aqua Dude

[xyzzy]

Two words: Oil credits.

Waving your hands saying "oil credits" does not answer the problem. Iraq brings in maybe $50B in oil dollars today and over the next few years that likely will rise to maybe $200B . They need that money to build their infrastructure. Why would they RV just to have to borrow money against future oil revenue and thus immediately go into debt, when it all it does it make investors wealthy?

[trooper]

sensible, and respectful towards other opinion while letting yours be heard, bravo i must say

IMO, 25,000 = $21 no at a rate of 1 USD to 1170 IQD a.k.a 0.00086 nominal or .00086 USD per IQD, remove three zeros off nomial which would become 0.86 which makes the exchange rate .86 USD per 1 IQD making 25,000 dinar worth 21,150

as you see the purchasing power has 'increased by three zeros' like the article stated AND the CBI has "deleted three zeros" from the exchange rate/nominal value LIKE THE ARTICLE STATED

+1 if you understand this math

I am hoping for that exact thing to happen.. Delete the zero's off of the nominal value.. Finger's crossed

[Dalite]

25,000 = 21$ now.... Remove the zero's.. 25 now RV that at 3 dollars = 75$ that's what i get from all these articles... I am no Lopster by any stretch of the imagination...

You don't have to be a lopster to be able to read, and as most are realizing, you are describing exactly what could happen if the redenomination is executed, as these news articles suggest to be the plan.

Whether or not we would get the full $3.00 in the first exchange rate increase is not known, but it is not unreasonable to see it reach that value after redenomination.

A straight revaluation of a penny to a nickel would be doable, but would still require a RD in the future to cure the existing problems that it would just magnify.

It's great to dream, and everyone should dream big; but be aware of the possibilities, as you are.

Edited October 13, 2011 by Dalite

[xyzzy]

you were better off keeping your fingers still, that made no sense to me, and sense it was directed towards me, then it matters that it doesn't make sense to me, therefore it was a complete waste of your time, and my time for having the feeling arise within me that i need to reply to your nonsensical statement just to let you know that it lacked sense.

So you are entitled to make silly statements like ""Iraqis" can pay us all day FOREVER in oil and other commodities they have in excess, they will never have to give the US USD" but I am not allowed to respond in kind?

[GMartin]

So how is this hard to understand. I have been saying this from DAY 1. For example take USD 1000 Bill. They changed it out with TEN 100's Bills. I believe Iraq might do the same and remove large notes in currency and come out with smaller notes or COINS. It is cheaper then completely revamping an entire currency. In order for them to get their LARGE NOTES, they have to have a decent rate...

Nuff Said. BOOYA!

[xyzzy]

So how is this hard to understand. I have been saying this from DAY 1. For example take USD 1000 Bill. They changed it out with TEN 100's Bills. I believe Iraq might do the same and remove large notes in currency and come out with smaller notes or COINS. It is cheaper then completely revamping an entire currency. In order for them to get their LARGE NOTES, they have to have a decent rate...

This does nothing to change the size of the money supply but just adds the problem of supporting a value many times larger by an economy that has not changed.

[rider460]

increase value? The IRaqis are the biggest pumpers of all...

hahaha.....

Remove 3 zeros, increase value? A lop and what? change their monetary policy so they only have to back 20 - 25% of it and give u $3+ to one dinar......yeah Iraq I dare you!

Guess what? We'd all cash in....ALL OF US AROUND THE WORLD!! MUWAHAHAHA!!

There were articles the other day that says there is only 4 Trillion dinar in circulation IN IRAQ...when you look at cbi's M1 for their dinar, its like 55T

How much did we buy? How much did CBI collect? hmmm??

I'm betting we bought A LOT and CBI has collected a lot from their citizens!!!

Do you really think these Iraqis want to pay us all at once by doing anything definite to their currency? Do you think they will tell us? They friggin hate us! and for those that think they are talking about an RV, I'm sorry to say that's wrong...but keep buying dinar please! hehehe

Lets be honest, there's no way they can go straight up from 1170 to the dollar to an exchange rate of 1 to 1 overnight...NOT happening...thats not how the world works...when has that ever happened before?

Is this a currency that represents a nation and its economy, or is the dinar like a stock?

I do believe they will start to manipulate the exchange rate letting it increase against the dollar over time once they are done playing political theater with this issue and once they have enough currency withdrawn and they sell more securities...but they are not in a hurry or possibly not ready, and at this time, I believe their economy has full support of our US dollar acting as a surrogate currency and anyway no other lopping country has done that. Also,. most Iraqis' savings is in Dollars. Remember that. Those reasons and the fact that we are holding so much dinar which they must honor (YES THEY MUST!) since they issued it, is why they can't ever LOP or do an RV and their only option with their currency is to allow it to appreciate slowly and hope to cash us out here and there rather than ALL AT ONCE!! Think about it! Be ready for this as a possibility people!

imho this is the only way everyone including Iraq can prosper

I agree except with the hate us part.

[sonny1]

9-11 was a singular event. It did not require an entirely new mode of interaction between airplane manufactureres, airlines, airports, passengers, ATC, etc across the global air transportation system.

A RV for the Iraqi dinar at $3 would require a complete restructuring of the global economic system which arbitrarily and overnight puts Iraq on top and thus also greatly decreases the wealth of the rest of the world in comparison. Believe that will happen if you like, I think its nonsense. A RD of course requires none of the that but gets Iraq were they need to go for future growth. Iraq is planing for stable long term economic growth, not a scheme for riches beyond imagining overnight.

Your comments on this are ridiculous. Seriously. I do agree the rate won't be close to 3.00