Dropping Zeros, Gaining Credibility? Currency Redenomination in Developing Nations

[keepmwlknfny]

All the countries that did Lop/Rd had triple digit inflation. What is Iraq inflation at right now?

It not matters what the inflation is now because RD usually are done AFTER periods of hyperinflation when they can stabilize the economy....

Turkeys was very high but waited until they got down to 10% before doing a RD....Zimbabwe tried RD during hyperinflation and it failed miserably....they were the case in point of what NOT to do....

[uncirculd]

It not matters what the inflation is now because RD usually are done AFTER periods of hyperinflation when they can stabilize the economy....

Turkeys was very high but waited until they got down to 10% before doing a RD....Zimbabwe tried RD during hyperinflation and it failed miserably....they were the case in point of what NOT to do....

Yeah, but inflation is not the case with Iraq. It is exaggerated that they are hyperinflation. And they keep lying about their deficit. Yeah, I forgot about that. "lightbulb" They may just RV then RD. Keepmwlknfny, don't count the dead ones till their buried.

[keepmwlknfny]

Yeah, but inflation is not the case with Iraq. It is exaggerated that they are hyperinflation. And they keep lying about their deficit. Yeah, I forgot about that. "lightbulb" They may just RV then RD. Keepmwlknfny, don't count the dead ones till their buried.

I dont think anyone considers Iraq being in the present state of hyperinflation....just that they were at one point which is all that matters because they are still carrying around the effects from being in hyperinflation to this day....ie the currency, the large bills, and the inflated money supply....all which happens because of suffering hyperinflation.....

They have always said they are going to run a deficit...and every year it seems they come out ahead because they budget for smaller oil prices and then magically every year the price of oil goes up above those prices lol....imagine that!

But your right, they are no longer in a period of hyperinflation...it has been in control for sometime now which unfortunately puts them in a better position to RD.....I just hope they really have been pulling in notes under our noses and that the current numbers we see are off by trillions...

[genevieve]

People need to understand that Iraq is experiencing inflation, but there is a difference between a currency going through inflation vs.inflation as it relates to the ability to buy goods and services. Iraq is a country that utilizes multiple currencies (different animal).

Iraq uses the US dollar mainly, you ask why? It was by design. Look how much USD we sent over there to dollarize Iraq. (fun with figures we took in roughly 2 trillion and we printed roughly 6 initially (4 for Circ and the CBI kept 2)that's why folks say it was devalued and of course we know Iraq WAS HYPER INFLATED BY THE TIME OF THE INVASION. SADDAM WAS RUNNING THE PRESSES.

IMO, the only reason we printed this current version of this dinar is to fill their foreign reserve coffers, and when the time is right they will DE-dollarize and re denominate to set the balance right. If Iraq could of easily just started with a currency that was equal to where it was in their golry days. Why didn't they? Simple, the US was in control, Iraq had no seated government, and the powers that be wanted to get all their contracts for the lowest price in the free market. You have to admire Halliburton and many of the other companies that went in, now that is business savvy. As far as making more money then you ever dreamed possible for 3000 bucks. Ha, be realistic..we'll see a return but clearly if you think you will retire from the little bit you spent, you clearly have never invested. I'm sure, I'll be bashed and that's fine. Just trying to keep my heels on the grounds. I prefer low highs and high lows.

..I just hope they really have been pulling in notes under our noses and that the current numbers we see are off by trillions...

Yup, if they are back to between 4-6 really in circulation we are back to 2003. That would be good. Anything is possible assuming the supply is contracted and Iraq can easily be DE-dollarized. It's all about the money supply when currency value is involved. :rolleyes:

[uncirculd]

I dont think anyone considers Iraq being in the present state of hyperinflation....just that they were at one point which is all that matters because they are still carrying around the effects from being in hyperinflation to this day....ie the currency, the large bills, and the inflated money supply....all which happens because of suffering hyperinflation.....

They have always said they are going to run a deficit...and every year it seems they come out ahead because they budget for smaller oil prices and then magically every year the price of oil goes up above those prices lol....imagine that!

But your right, they are no longer in a period of hyperinflation...it has been in control for sometime now which unfortunately puts them in a better position to RD.....I just hope they really have been pulling in notes under our noses and that the current numbers we see are off by trillions...

Agreed, and Shabibi has been working behind the scenes. Sure he has been pulling in those notes for 2 years now. The numbers they've been putting out there are not the same either lately. Have you noticed that? It's getting real interesting now. I love it. Come on Shabbs either hurt me good, or burn me.

[genevieve]

Agreed, and Shabibi has been working behind the scenes. Sure he has been pulling in those notes for 2 years now. The numbers they've been putting out there are not the same either lately. Have you noticed that? It's getting real interesting now. I love it. Come on Shabbs either hurt me good, or burn me.

Nice comment, I've notice we can get clear numbers from the CBI about their Foreign reserves but as far as their Money supply it gets really foggy.

Sneaky boys, Ha!

[Anti This Anti That]

great! Just what I need! Hahaha thanks....

Its all just a show LOL....but really I have just read A LOT of information the past two years....and from that I just call it like I see it!

They could def raise the value of the dinar, but for them to do that there are a couple things that need to happen in my mind for us to see the kind of returns we all want...

The amount in circulation needs to be reduced, the reserves need to get stocked (they are rising which is a VERY good sign) and the GDP needs to improve as well which it is slowly. More realistically I could see them moving up in steps....maybe going from 1170 to 5 or 600, then maybe 100 to 1 and go from there.

There really hasent been any gigantic jumps in value for any currency in history going from 1100 something to 1 on 1 with the dollar....not saying it couldnt happen, but that seems to be a HUGE stretch in my mind....

Bottom line I dont see how it would be possible to go to 1 to 1 with the USD, without lopping first given the current circumstances of over 25 trillion dinar being in circulation and only 60 billion in reserves.....thats of course if those numbers are correct, but one of those would have to be off by trillions.....

There is less than 4 trillion dinar in circulation in Iraq, not 25 trillion.

[genevieve]

There is less than 4 trillion dinar in circulation in Iraq, not 25 trillion.

I'd love the linky buddy to prove it.

I'd love the linky buddy to prove it. If no proof must be stinky.

[HopefulTxn]

There is less than 4 trillion dinar in circulation in Iraq, not 25 trillion.

Unfortunately the only place that the 4 trillion number has been shown is in translated articles, and not the CBI financial statements. The CBI states that there is 25 trillion in circulation outside the banks, and another couple of trillion in the banks themselves.

Just for fun, lets say there were only 4 trillion - it would make a difference but what about the 30 or so trillion of electronic dinar? That has to be taken into consideration for the purpose of setting their currency value as well.

[Jaysonguru1]

great! Just what I need! Hahaha thanks....

Its all just a show LOL....but really I have just read A LOT of information the past two years....and from that I just call it like I see it!

They could def raise the value of the dinar, but for them to do that there are a couple things that need to happen in my mind for us to see the kind of returns we all want...

The amount in circulation needs to be reduced, the reserves need to get stocked (they are rising which is a VERY good sign) and the GDP needs to improve as well which it is slowly. More realistically I could see them moving up in steps....maybe going from 1170 to 5 or 600, then maybe 100 to 1 and go from there.

There really hasent been any gigantic jumps in value for any currency in history going from 1100 something to 1 on 1 with the dollar....not saying it couldnt happen, but that seems to be a HUGE stretch in my mind....

Bottom line I dont see how it would be possible to go to 1 to 1 with the USD, without lopping first given the current circumstances of over 25 trillion dinar being in circulation and only 60 billion in reserves.....thats of course if those numbers are correct, but one of those would have to be off by trillions.....

Very true i think your on the right page, i feel the same all i can say is no matter what happens we all have learned a lot about currency and maybe should take jobs working at forex lol, I also hope they rv but find it kinda hard and what they are putting out there everyone keeps saying ohhh they said rv lmao no country is going to come out and say hey people we are rv, ing our currency!!!!!

[keepmwlknfny]

There is less than 4 trillion dinar in circulation in Iraq, not 25 trillion.

There has been one article that said there was 4 trillion in the domestic marketplace but it was not very detailed about it.....now would you trust a single,random article written, or the numerous and countless audits and financial indicators that have been published by the CBI, IMF, and by the outside agencies hired to keep iraqs financials on the books??? I know we wanna hear there is 4 trillion but unfortunately there is no such evidence of that being possible.....

[keepmwlknfny]

There has been one article that said there was 4 trillion in the domestic marketplace but it was not very detailed about it.....now would you trust a single,random article written, or the numerous and countless audits and financial indicators that have been published by the CBI, IMF, and by the outside agencies hired to keep iraqs financials on the books??? I know we wanna hear there is 4 trillion but unfortunately there is no such evidence of that being possible.....

This article talking about only 4 trillion in the domestic market, reminds me of two other incidents where something was said in an article, and instead of looking deeper into what was being said, everyone just assumed and jumped on board no questions asked and it turns out the articles were not clear enough and were leading people to the wrong assumptions...

1 being the article saying that 250 billion USD was handed over to Iraq from the DFI funds......250 billion was the total amount that had ran through that "checking account" since 2003.....there was nothing close to that amount actually handed over....as of Dec 2010 there was only 7.5 billion physically in that account...

The second was the article stating that the reserves in the banks in Iraq reached 250 billion.....alot of people immediately thought it meant that the foreign currency reserves (which back the value of the dinar)......When in fact, it was speaking about the capital reserves of the banks under the CBI....it is a new mandatory requirement set by the CBI that all banks have that cushion in reserves by 2012 I think it was....but it has nothing to do with the actual reserves in the CBIs vaults...