My worth on this investment.

[Scrumdiddles]

My worth on this investment. This is just ideas and thoughts thru research. No need to bash, up for interpretation. No need to neg, or + me. This is my comfort in this investment and no one will persuade me otherwise. I do believe that I know nothing and I always challenge my beliefs, however a LOP I stand firm on will not happen. The other details are up for interpretation. I have a firm ground on this investment as it should be, that is why I am invested. If I truly believed that a lop is possible I would not be here. Now are we going to make loads of money, questionable up to Iraq. Exchange rate is the key, and no one knows.

1. Money supply.

CBI on countless occasions has said they want to reduce the money supply in country. This action is linked to a RV of the currency. Even if they decide to lop they will still have to much currency in the market without reducing the money supply. It would make no sense to reduce the money supply and lop at the same time. They would just Lop the currency, bring the new currency and exchange the old for the new. This is not what they are talking about.

2. Deleting the zeros.

The also talked many time about the deleting of the zeros. This is referred to taking the 000 bills out of circulation. Hint: reducing the money supply. Taking them off the market to make room for the lower denom bills which will slowly be introduced throughout a 2 to 3 year period. They will slowly strengthen the dinar and raise the value over time.

3. Strengthen the Dinar.

Strengthen the dinar has also been talked about by Shabibi. This is the number one thing he wants to do. With a lop of the currency, it will bring down the value of the currency, only after a rv it will increase. The action of a lop will ultimately decrease the value against what Shabibi has been saying all along.

4. Notes off the market.

Taking the notes off the market will reduce the liability for iraq only after they give incentive to collect the bills, after RV. How much incentive will there be after a lop. One will hold on to the bill to gain value or just to break even. This would not go with Shabibi’s plan to take the notes off the market. So the idea of a small RV with a time limit to cash in will be more of what his plan is.

5. 1 Dinar to 1 USD exchange

The 1 to 1 exchange is what Shabibi wants. Now will that be the initial rate? Maybe, however he does want to get the larger denom off the market and move the value of the larger denom to the smaller denom hint the 1 to 1 exchange for the larger denoms to the smaller denoms. Then taking the larger denom off the market like he said he will do many times. A lop will not accomplish this. A lop will not move value it will destroy value. He wants to have two currencies active for a 2 to 3 year period. It would not make since to lop like what happen to the saddam notes. They replaced the whole currency at one time and destroyed the value at a certain time.

6. Policy Watch.

Policy watch is the only way to tell what will happen with this investment. Law is what will drive this investment in any direction. Shabibi is a important part of it, however the RV is a closely guarded secret to any country. Smoke and mirrors are more often what you read and hear. They will not tell the whole truth about what is happening with the RV. Sometime people slip and offer truth amongst all the smoke.

7. ROI

Reinstatement of the Dinar to former value is a possibility. However, to think that the rate will go back to 3 and some change to 1 USD will leave Iraq in a bad situation. They can not do that right away, they need to improve their infrastructure. To high of rate will send their economy into a buying frenzy and the government will not be able to keep up with demand from the citizens.

8. Raise the Value.

They will raise the value of the dinar over time as Shabibi has said many times. This leads me to think that a low RV for the high denoms to get them off the market. Then a step up from that and take the mid range denoms off the market, like the 1k and 500 dinars. Then another RV for the the introduction of the new lower denoms. They will be released not all at one time, different bill values at a time probably starting with the higher new dinars first then cascading down to the 1 dinar and coins.

9. Reasons for this investment.

The reason for the investment is because of the way the groundwork is for the new currency. Main reason is the reduction of the current currency. The 000 notes, they want to remove as many as they can. The CBI doesn’t have to release any information on what the in circulation amount for currency because they are not out of chapter 7. They do not have to release any book yet. When they do the true value of the Dinar will be known.

10. Needs to happen before the RV.

US troop pull out, ending chapter 7, ERBAL, and a full seated government are some of the things that need to happen before the RV will take place.

11. US treasury will buy our dinars.

The Banks then the US treasury will purchase our dinars, the credit or the money will come from our country first when cashing in dinars. The US treasury will ultimately end up with our dinars and it will be up to them what they will do with them. IRAQ will not give cash for our dinars unless you travel to IRAQ to cash in. The money that will come from the cash in will be mostly in electronic form in a bank account. You will need to provide armored service for cashing in and requesting the cold hard cash for your investment. Banks will issue paper currency in form of travelers checks, cashier checks, which is not FRNs. To think there is not enough FRN in circulation is no correct, they will not be needed in large chunks.

[keepmwlknfny]

Not bashing, but you could read up a little more on redenominations and what happens.....it would clear up alot of your points.....

[MrDinarman]

When they talk about "deleting the zero's" they are not talking about taking the large notes out of circulation. They made that quite clear in hundreds of articles. Also Shabibi said himself in English that they are talking about deleting the zeros from the notes.

Obviously just doing a LOP would not accomplish much other than making transactions easier and would greatly reduce the number of "Dinar" in circulation.

No matter what they decide to do at some point the zeroes have to come off. Hopefully they will RV in the .01-.10 range or RD or restructure their currency in a way that will make us a nice profit. Who knows at this point.

[trooper]

Iraq Said To Be Planning Currency Overhaul, Redenomination

Iraq's 25,000-dinar banknotes apparently won't get you as far as they used to.

June 24, 2011

BAGHDAD -- A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL's Radio Free Iraq reports.

Mudhhir Muhammad Salih, a member of the bank's advisory panel, told RFE/RL on June 23 that in the short term, larger banknote denominations of the dinar would be issued to simplify major transactions.

He said that because so many Iraqis still dealt mainly in cash, it was cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases -- as well as many entrepreneurs -- to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 would be issued to simplify major purchases, and new coins and lower denominations would be introduced for smaller transactions.

In the longer term, Saleh said a redenomination was needed wherein three zeros will be dropped so that the 25,000-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note.

He said the change was inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.

Saleh said there were currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also caused complications for the Central Bank and government, as well as commercial accounting departments.

Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund, of which Iraq has been a member since 1945.

The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein's reign.

http://www.rferl.org...n/24245867.html

Read more:

Pretty detailed for smoke and mirrors act..

Edited November 8, 2011 by trooper

[20MillionDinar]

Not bashing, but you could read up a little more on redenominations and what happens.....it would clear up alot of your points.....

Keep, why haven't they RD's already?

Couldn't they have done it anytime in the past 3 years?

Why wait and stall it out?

In fact, by waiting longer and longer aren't they putting themselves in a worse situation in regards to inflation?

I would like your input when you get a chance, thanks.

[Scrumdiddles]

Not bashing, but you could read up a little more on redenominations and what happens.....it would clear up alot of your points.....

I am fully aware of what a redomination of currency is.

Redenomination is the process of changing the face value of banknotes or coins used in circulating currency.

My questions:

How long does a redomination last?

Shabibi said he will have 2 currencies for a period of 2 to 3 years. That would be a long RD.

Has Shabibi or CBI actually said they are going to RD there currency? They have not said in those words RD. They have said raising of the zeros, deleting the zeros, taking the zeros off, and many other versions of that.

Brazil (1990), Ukraine (1992), and Austria (1892) all redominated there currency at a 1 to 1 exchange rate, however Austria increased the value of there currency going from the silver standard to gold standard. Look at Iraq, the economy is about to boom, oil production is increasing, billion dollar investments are coming to iraq, ISX is about to take off. To think that they are going to devalue there currency is ridiculous, and that is what a lop is. There currency is already undervalued and then lop it, devalue it more, nope dont think so. They will RD there currency to rename it and get the new lower denoms in circulation and the higher denoms out of circulation.

[IchDien]

Keep, why haven't they RD's already?

Couldn't they have done it anytime in the past 3 years?

Why wait and stall it out?

In fact, by waiting longer and longer aren't they putting themselves in a worse situation in regards to inflation?

I would like your input when you get a chance, thanks.

Good question, I'm curious about this as well.

[Maggie123]

Keep, why haven't they RD's already?

Couldn't they have done it anytime in the past 3 years?

Why wait and stall it out?

In fact, by waiting longer and longer aren't they putting themselves in a worse situation in regards to inflation?

I would like your input when you get a chance, thanks.

Darn Good Question 20MillionDinar I have been wondering the same thing. My sweet young daughter pointed that out to me a long time ago...when I was explaining a possible "RD" to her. Sure made me think twice.

[keepmwlknfny]

Keep, why haven't they RD's already?

Couldn't they have done it anytime in the past 3 years?

Why wait and stall it out?

In fact, by waiting longer and longer aren't they putting themselves in a worse situation in regards to inflation?

I would like your input when you get a chance, thanks.

The only thing that comes to mind is Shabs plan....they started it like 3 or 4 years ago? I cant remember exactly, but they had to put this plan together over the years to make sure everything is in order to handle such a change, no different then a RV because clearly after the RD there would be some sort of RV on the currency....so you could ask the same question about why havent they RVd already? Seems they just arent ready....well I mean now it seems they are if this plan to delete the zeros really is in front of parliament waiting to be voted on....

I figure our best hope is that it gets dragged on further....the longer time goes, I feel the less likely it is to happen....

Dont forget Maliki and his crew are totally against this plan.....Maliki is on our side....not Shabs....

There has been a ton of opposition to this plan through the govt and its in their hands now.....

[Flyers1]

The only thing that comes to mind is Shabs plan....they started it like 3 or 4 years ago? I cant remember exactly, but they had to put this plan together over the years to make sure everything is in order to handle such a change, no different then a RV because clearly after the RD there would be some sort of RV on the currency....so you could ask the same question about why havent they RVd already? Seems they just arent ready....well I mean now it seems they are if this plan to delete the zeros really is in front of parliament waiting to be voted on....

I figure our best hope is that it gets dragged on further....the longer time goes, I feel the less likely it is to happen....

Dont forget Maliki and his crew are totally against this plan.....Maliki is on our side....not Shabs....

There has been a ton of opposition to this plan through the govt and its in their hands now.....

Keep do you have any idea when there supposed too vote on it?

[keepmwlknfny]

I am fully aware of what a redomination of currency is.

Redenomination is the process of changing the face value of banknotes or coins used in circulating currency.

My questions:

How long does a redomination last?

Shabibi said he will have 2 currencies for a period of 2 to 3 years. That would be a long RD.

Has Shabibi or CBI actually said they are going to RD there currency? They have not said in those words RD. They have said raising of the zeros, deleting the zeros, taking the zeros off, and many other versions of that.

Brazil (1990), Ukraine (1992), and Austria (1892) all redominated there currency at a 1 to 1 exchange rate, however Austria increased the value of there currency going from the silver standard to gold standard. Look at Iraq, the economy is about to boom, oil production is increasing, billion dollar investments are coming to iraq, ISX is about to take off. To think that they are going to devalue there currency is ridiculous, and that is what a lop is. There currency is already undervalued and then lop it, devalue it more, nope dont think so. They will RD there currency to rename it and get the new lower denoms in circulation and the higher denoms out of circulation.

RD can last a couple years...the discretion is up to the country....

It has come from Shabs mouth.....redenominating by deleting the zeros....its been quite clear....

http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/

Here is a paragraph taken from this article.....

Sanan Al Shebeibi [sinan Al-Shabibi], Governor of Iraq’s Central Bank, affirmed during the meeting of independent commissions on June 19 with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

A RD does not devalue the dinar......the exchange rate will remain the same for the old currency until it is replaced by the new which would carry the new rate.....

There is no devalution....thats what has been spread around by the many "gurus" to push you away from the idea and to make it sound like it would never happen.....

Keep do you have any idea when there supposed too vote on it?

I really have no idea bro....thats why I roam the forums looking for any indication.....

[20MillionDinar]

The only thing that comes to mind is Shabs plan....they started it like 3 or 4 years ago? I cant remember exactly, but they had to put this plan together over the years to make sure everything is in order to handle such a change, no different then a RV because clearly after the RD there would be some sort of RV on the currency....so you could ask the same question about why havent they RVd already? Seems they just arent ready....well I mean now it seems they are if this plan to delete the zeros really is in front of parliament waiting to be voted on....

I figure our best hope is that it gets dragged on further....the longer time goes, I feel the less likely it is to happen....

Dont forget Maliki and his crew are totally against this plan.....Maliki is on our side....not Shabs....

There has been a ton of opposition to this plan through the govt and its in their hands now.....

Thanks for your input Keep, always appreciated.

I agree with most of what you are saying except for this: "But they had to put this plan together over the years to make sure everything is in order to handle such a change." When we invaded Iraq a new currency was printed and everybody exchanged old bills for new. This process took just a few months and this was during a time of war and massive chaos. That was a denomination, nothing more and nothing less.

So there is definitely something else going on right now:

1) Either an RV first with a RD following immediately after

2) OR, they are going to RV and then RD immediately after

3) Let the currency float and let supply and demand determine the true value of their currency

Is it pretty safe to say that they are not going to just Re-denominate?

Edited November 8, 2011 by 20MillionDinar

[Scrumdiddles]

RD can last a couple years...the discretion is up to the country....

It has come from Shabs mouth.....redenominating by deleting the zeros....its been quite clear....

http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/

Here is a paragraph taken from this article.....

Sanan Al Shebeibi [sinan Al-Shabibi], Governor of Iraq’s Central Bank, affirmed during the meeting of independent commissions on June 19 with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

A RD does not devalue the dinar......the exchange rate will remain the same for the old currency until it is replaced by the new which would carry the new rate.....

There is no devalution....thats what has been spread around by the many "gurus" to push you away from the idea and to make it sound like it would never happen.....

I really have no idea bro....thats why I roam the forums looking for any indication.....

Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged.

In common modern usage, it specifically implies an official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, depreciation is used for the unofficial decrease in the exchange rate in a floating exchange rate system. The opposite of devaluation is called revaluation.

The part of this definition that gets me is: other monetary units with which that currency can be exchanged. So you are telling me that Loping the zeros is not taking away the value of the currency. Monetary units would be the new ID right, so if it is not devalued you would receive the equal amount of dinars for say the 25k note, like 250 of the new 100 dinar notes right. Otherwise if you received a 25 note for the 25k note you would be decreasing the value of the 25k note by removing the 000s right.

[Flyers1]

RD can last a couple years...the discretion is up to the country....

It has come from Shabs mouth.....redenominating by deleting the zeros....its been quite clear....

http://www.iraq-businessnews.com/2011/06/27/iraq-prepares-to-redenominate-its-currency/

Here is a paragraph taken from this article.....

Sanan Al Shebeibi [sinan Al-Shabibi], Governor of Iraq’s Central Bank, affirmed during the meeting of independent commissions on June 19 with Prime Minister Nuri Al Maliki that the bank is preparing all requirements needed to replace the Iraqi Currency.

A RD does not devalue the dinar......the exchange rate will remain the same for the old currency until it is replaced by the new which would carry the new rate.....

There is no devalution....thats what has been spread around by the many "gurus" to push you away from the idea and to make it sound like it would never happen.....

I really have no idea bro....thats why I roam the forums looking for any indication.....

Thanks Keep!

[keepmwlknfny]

Thanks for your input Keep, always appreciated.

I agree with most of what you are saying except for this: "But they had to put this plan together over the years to make sure everything is in order to handle such a change." When we invaded Iraq a new currency was printed and everybody exchanged old bills for new. This process took just a few months and this was during a time of war and massive chaos. That was a denomination, nothing more and nothing less.

So there is definitely something else going on right now:

1) Either an RV first with a RD following immediately after

2) OR, they are going to RV and then RD immediately after

3) Let the currency float and let supply and demand determine the true value of their currency

Is it pretty safe to say that they are not going to just Re-denominate?

All they had to do was print a new currency and exchange it from the old.....the new dinar carried along with it its low value and inflated supply.....They didnt need to reform the banking sector, build up reserves or even get any sort of govt approval since there was none......much easier task!

I do agree however they wont just redenominate......but If this plan is passed I dont see the RV coming before it.....if they are able to RV, there is no need to perform a textbook redenomination.....just simply introduce a few more bills into the market and watch the larger ones naturally disapear....

Devaluation is a reduction in the value of a currency with respect to those goods, services or other monetary units with which that currency can be exchanged.

In common modern usage, it specifically implies an official lowering of the value of a country's currency within a fixed exchange rate system, by which the monetary authority formally sets a new fixed rate with respect to a foreign reference currency. In contrast, depreciation is used for the unofficial decrease in the exchange rate in a floating exchange rate system. The opposite of devaluation is called revaluation.

The part of this definition that gets me is: other monetary units with which that currency can be exchanged. So you are telling me that Loping the zeros is not taking away the value of the currency. Monetary units would be the new ID right, so if it is not devalued you would receive the equal amount of dinars for say the 25k note, like 250 of the new 100 dinar notes right. Otherwise if you received a 25 note for the 25k note you would be decreasing the value of the 25k note by removing the 000s right.

You said it yourself....the opposite of a RV is a devaluation....RV refers to raising the exchange rate.....devaluation is lowering the exchange rate (which doesnt happen in a RD)

You are trading a 25k note (worth about 21.30USD or so) and you would recieve a new 25 note with the SAME VALUE.....21.30USD.....

You just traded equally in VALUE.....so no lopping doesnt take away the value of the currency cause the value is 1170(21.30USD)......that doesnt change in a RD.....its a revenue nuetral event....the value or exchange rate of the dinar will stay exactly the same until the currency is deemed worthless.....thats why a RD wouldnt screw anyone....unless you paid a high mark up!

If you trade a 25k note, and recieve 250 of the new 100s (which would carry a higher VALUE) then you just made money and ripped off the CBI.....you think the CBI is gonna do that??

Thanks for your input Keep, always appreciated.

I agree with most of what you are saying except for this: "But they had to put this plan together over the years to make sure everything is in order to handle such a change." When we invaded Iraq a new currency was printed and everybody exchanged old bills for new. This process took just a few months and this was during a time of war and massive chaos. That was a denomination, nothing more and nothing less.

So there is definitely something else going on right now:

1) Either an RV first with a RD following immediately after

2) OR, they are going to RV and then RD immediately after

3) Let the currency float and let supply and demand determine the true value of their currency

Is it pretty safe to say that they are not going to just Re-denominate?

I do have to add that if there is any sort of RV before the RD, it would be to bring the dinar up to 1000 to 1 to make the RD process easier.....and the new dinar would be right on par with the USD

Edited November 8, 2011 by keepmwlknfny

[Scrumdiddles]

You are trading a 25k note (worth about 21.30USD or so) and you would recieve a new 25 note with the SAME VALUE.....21.30USD.....

Read more:

There it is the LOP, now Keep.

Would it not be the same to issue 250 100 notes at the same exchange rate as the old 25k note.

Just like you say to exchange a 25k note for a new 25 note. See this is a lop and it will not happen.

Who would be getting screwed. Both are the same. So why lop.

a country may revalue its currency higher (the opposite of devaluation) in response to positive economic conditions, to lower inflation, or to please investors and trading partners. This would imply that existing currency increased in value, as opposed to the case with redenomination where a country issues a new currency to replace an old currency that had declined excessively in value (such as Turkey and Romania in 2005, Argentina in 2002, Russia in 1998, or Germany in 1923).

[keepmwlknfny]

So why lop.

To reduce the money supply to a more managable number not only for banking transactions, but for the opportunity to add more value to the dinar....the less there is of something, the more value it will carry....simple supply and demand tactics......to add confidence in the dinar.....to rid themselves of past monetary policy mistakes with the inflated money supply

Exchanging a 25k note for 250 new 100 dinar notes doesnt reduce anything.....leaves things exactly where they are now.....

Edited November 8, 2011 by keepmwlknfny

[Scrumdiddles]

To reduce the money supply to a more managable number not only for banking transactions, but for the opportunity to add more value to the dinar....the less there is of something, the more value it will carry....simple supply and demand tactics......to add confidence in the dinar.....to rid themselves of past monetary policy mistakes with the inflated money supply

A lop will not reduce the money supply, all the 25k notes will still exist, no matter if they are only 25 notes with the 000 ripped off of them. The only way to reduce the money supply literally is what shabs is doing taking them off the market before the RV like he said he would do. He is adding confidence to the dinar right now by taking the most bills off the market before the RV, how do you think he is controlling the inflation in the country?

[keepmwlknfny]

A lop will not reduce the money supply, all the 25k notes will still exist, no matter if they are only 25 notes with the 000 ripped off of them. The only way to reduce the money supply literally is what shabs is doing taking them off the market before the RV like he said he would do. He is adding confidence to the dinar right now by taking the most bills off the market before the RV, how do you think he is controlling the inflation in the country?

It surely does.....if you have to trade in your 25k note for a new 25 note, you just removed 24,975 off the market and the 25k note is destroyed......

The 25k notes will not exist after the exchange period is over....unless of course you missed the bus to the CBI LOL.....thats why they keep saying they are planning to REPLACE the currency......

Controlling inflation by raising interest rates is one way....which there was an article not too long ago about the very thing....of course since it wasent about a RV, it probly didnt get much attention....

I believe they also control inflation and the exchange rate (even though its locked) through the auctions.....

There are many ways of controlling inflation, but we havent seen the one that we want yet (which would be raising the value of the dinar)

[MrDinarman]

A lop will not reduce the money supply, all the 25k notes will still exist, no matter if they are only 25 notes with the 000 ripped off of them. The only way to reduce the money supply literally is what shabs is doing taking them off the market before the RV like he said he would do. He is adding confidence to the dinar right now by taking the most bills off the market before the RV, how do you think he is controlling the inflation in the country?

If they were to LOP it wouldn't reduce the physical paper notes, but it would greatly reduce the amount of dinar. After a trade-in period for the new notes, 000 notes would not exist. That is one way of getting them out of circulation. After that they could RV to $1-$3 if they wanting, still yielding us a nice ROI. So, theoretically it could been done and can be done. Other countries have done that exact thing...even without hyperinflation. BTW, 5-7% inflation is not bad. Also, do you have any evidence that they are collecting money??

If they are, they aren't doing a very good job and whats in circulation now is still waaaay to much for them to RV to a significant amount.

They could only support a .01-.10 at this time IMHO

[Scrumdiddles]

It surely does.....if you have to trade in your 25k note for a new 25 note, you just removed 24,975 off the market and the 25k note is destroyed......

The 25k notes will not exist after the exchange period is over....unless of course you missed the bus to the CBI LOL.....thats why they keep saying they are planning to REPLACE the currency......

Controlling inflation by raising interest rates is one way....which there was an article not too long ago about the very thing....of course since it wasent about a RV, it probly didnt get much attention....

I believe they also control inflation and the exchange rate (even though its locked) through the auctions.....

There are many ways of controlling inflation, but we havent seen the one that we want yet (which would be raising the value of the dinar)

Well an exchange for 1 bill to 1 bill is not reducing the overall currency. Introducing electronic form of dinar would be reducing the currency. Which is also what the CBI announced for the Iraqi people. Do you really think all the high denoms are going to be exchanged for actual bill? They are trying to create more confidence in the banking system in Iraq, which means electronic dinars with bank accounts. Yes you will add bills if you were to cash out for more new ID, but it wont be even close to 24, 975 unless you get all 1 dinar notes.

[keepmwlknfny]

If they were to LOP it wouldn't reduce the physical paper notes, but it would greatly reduce the amount of dinar.

It would reduce the physical bills some, people who have anything less then 1000 would more then likely get fils (coins) in return......

[Scrumdiddles]

If they were to LOP it wouldn't reduce the physical paper notes, but it would greatly reduce the amount of dinar. After a trade-in period for the new notes, 000 notes would not exist. That is one way of getting them out of circulation. After that they could RV to $1-$3 if they wanting, still yielding us a nice ROI. So, theoretically it could been done and can be done. Other countries have done that exact thing...even without hyperinflation. BTW, 5-7% inflation is not bad. Also, do you have any evidence that they are collecting money??

If they are, they aren't doing a very good job and whats in circulation now is still waaaay to much for them to RV to a significant amount.

They could only support a .01-.10 at this time IMHO

Only the evidence that Shabibi said he was reducing the money supply now. I mean really what else do we have to go by. Yes there inflation is not bad. So if a LOP would not reduce the money supply, and that is what Shabibi wants to do they why lop? No reason to LOP other then to Cheat to gain advantage in the currency market. Ride with what you got is the way to do it with merit right? Are they not trying to gain investors? Would that not show more to the international community than a lop?

[keepmwlknfny]

Well an exchange for 1 bill to 1 bill is not reducing the overall currency. Introducing electronic form of dinar would be reducing the currency. Which is also what the CBI announced for the Iraqi people. Do you really think all the high denoms are going to be exchanged for actual bill? They are trying to create more confidence in the banking system in Iraq, which means electronic dinars with bank accounts. Yes you will add bills if you were to cash out for more new ID, but it wont be even close to 24, 975 unless you get all 1 dinar notes.

No your right, 1 bill for another wouldnt....but like I just mentioned what about all the people who have bills less then 1000?? They would be getting coins or fils....it will reduce the number of bills some but thats not the biggest issue....the issue is reducing the currency in circulation from 30 trillion to 30 billion....that also has been stated...

Do they want to increase the amount of electronic banking? Of course they do....but even electronic accounts will be affected and reduced.....

Can they reduce the physical amount of bills by pushing banking accounts?? They sure can, but the inflated money supply stays unless they RD.....

Its not all about the individual bill numbers, but more about reducing the total amount in value......and RD is the only way I have seen the CBI speak about reducing the amount in circulation.....still searching for them to come up with a better idea for us.....

So if a LOP would not reduce the money supply, and that is what Shabibi wants to do they why lop?

It does.....if they lop they would end up with 30 billion in circulation.....take 30 trillion and lop 3 zeros....what do you get?

The money supply of 30 trillion dinar is the problem.....I think your confusing it with the number of physical notes which is completely different.....but it would drop the number of physical notes a little.....

[jeepguy]

heyyyyyyyyy the zero thing ------------ i like option number two in the first posting,,,new eyes on this ,,,,,delete the zero`s can also mean,,,getting rid of zero bills 25000.oo OR get them off the streets ---- this could have been double speak from shabbi,,, i never thought of it this way,,,, we need too take zero`s off meaning a lower rate too start will get the zero`s off,,, then r v at a higher rate------------------ that must be it thanks scrummmdididdles and every one else ----now lets get tooo the date --------- come on r v eeeeeeeeee