(ICB) has confirmed it will issue a new bill with a value of 50,000 IQD ($43) but marked as 50 dinars.

[E. 1999]

I am very excited about this article. I read it that the 50 IQD will be worth .86 a Dinar. That is what the USD is aprox. worth. That means to me we are looking at a 1 for 1. After all these years you have to read between the lines and also remember it is being translated. Keep it simple boys!!!!

i like you ma

[JWJW11]

do you need me to hold your hand while i explain this again

i will write it in caps just in case your site is suspect.

WHEN THE DINAR RV'S, THERE DINAR RV'S AS WELL, WHICH WILL ALLOW THEM TO COVER IT SINCE THEY HAVE MORE IN THE CBI, THAN IS OUT OF CBI.............THIS IS THE LAST TIME I WILL TELL YOU THIS.......MAKE A MENTAL NOTE........YOUR WELCOME

Lol! Thanks sonny1...pretty simple to me! I got it

[hame55]

It doesn't. You can't cover a currency with more of the same currency. If that made any sense at all, or was at all possible, why wouldn't every CB just print 500 trillion in currency and then leave half of it in their vaults to "cover" it?

really?

HOW ABOUT THE FED PRINTING 16 TRILLION TO COVER THE 2008 CRASH - THAT'S BASICALLY COVERING THE DOLLAR, AS THE DOLLAR WOULD BE WORTHLESS IF WE LOST ALL OUR BUSINESSES. DO YOU THINK THE US BACKS ITS MONEY SUPPLY TOTALLY? NO WAY.

[E. 1999]

You know that all the oil and natural gas reserves they have total like almost 20 trillion dollars......

Even if they could all of a sudden use the value of all their natural resources to back the dinar, it still wouldnt cover a dollar RV.........

Thats why something has to give.....either the money supply, the GDP, or the foreign reserves....something needs to make big moves and big moves now...

dunno why you got all those negs but i have appriciated your thought more than most on this subject

[MovieMaker]

Or three fiftys if you include the $US 50.

Does this include the new Iraq $50.00's we hold? Are these new? or Old? (I'm meaning... was there ANOTHER $50 note that came out after our 2003 printed $50?

[E. 1999]

Rick, isn't it interesting that they anticipate the 50 IQD being worth $43 USD, or .86 each IQD, and the current value is .000855 a Dinar... Now, if we LOP off these 3 zeros, it too makes it .86. Perhaps in all the translating everyone is looking at the wrong 3 zeros. Just my opinion of course.

the more i read your posts the more i like you ma

[DinarDana]

Question? - How many trillion dinars will be taken out of circulation (locally) if they proceed with this concept. For each 50 dinar note the central bank will take in (2) 25,000 notes? Has anyone thought of this as a way of reducing the 000 notes in country? thus reducing trillions in circulation? Just thought.

[Darin]

Shabbs has been quoted saying something to this effect, "Very little dinar resides outside of Iraq except a little bit in the neighboring countries, where the dinar made its way there because of tourism, trade, or vacationing.."

Now, we can also conclude that dollarization is a threat in Iraq. People prefer to use the Dollar over the Dinar. The Iraqi citizens know its a convertible currency, accepted nearly everywhere, and holds stability.

With all that said, why would 30 trillion need to exist even at the current exchange rate? The country itself has a high poverty rate, but is full of natural resources.

The exchange rate has remained pretty stable...

Now think about this, inflation is low but the money supply has inflated itself over the last few years. Why inflate your money supply when inflation is low??

This comes the theory: They really only have a "x" amount in circulation that is a true liability. They likely have 30 trillion on the books as a liability, but in reality, some of that could easily be wiped from the books.

They printed 6.38 Trillion from the get-go. 2 Trillion was allocated to reserves. Every year since the new dinar's inception, the CBI has printed on average 3 trillion per yer (Exception, 2007 or 2008, it had an uptick of 6 trillion, but figure a civil war and inflation on the rise could be the cause).

Now, Iraq is a country that relies on physical currency for use in their own marketplace. Their economical conditions are rather tough on elements that are exposed to them. Dinars are used in a much more frequent use and likely need to be replaced frequently. This is likely a problem for the CBI as they have to continue to print notes to replace the soiled ones. The CBI should likely be attempting to make a push for digital currency (Much like how it is in the West).

Okay, if an average Iraqi is skeptical of using a bank to store their cash or money while they get handed a card, how would a re-denomination decrease their skepticism? Something to chew on.

If the CBI wants to get the average Iraqi to rely more on the dinar over the USD, how would a re-denomination help?

I'm going to think like how I would if I was an Iraqi.

First, I would be skeptical of the banks... When Saddam was in power, he basically tried to take over the banks and inflated the money supply. My faith in the dinar is nearly lost, and I would be skeptical to hold large amounts of it in fear of losing money. I would likely wish & desire to hold USD over IQD. Now, the deleting of 3 zero articles would also have me skeptical. Would there be an ease of exchange, would all market places willing accept old & new dinars? I likely would be thinking, "Forget this, I'll rely on the trusty dollar that is used everywhere.."

Now consider this: In 2004, upon the inception of the new Iraqi Dinar, a very limited window of exchange was given to exchange old Saddams for new dinar. Borders were closed down & entry was prevented. This came during a time when conflict was high, so some people likely feared going to a bank or surrounding themselves near large groups of people (likely place for bombings).

What does this mean?

Saddam Dinars were inflated, due to an abundance of printing by the former regime. However, a lot of dinars were outside of Iraq & a dollarization was an issue even at that time. This exchange likely greatly reduced the liabilities of the dinar in itself... If a rather large portion of psychical cash resided outside of Iraq, the CBI did not have to pay for its exchange. Also consider how some average Iraqis may have never took their savings to the bank due to other fears.. Or even a small few had trouble finding their hidden stash buried in the sand.

One of the main problems with the lopsters is how they view the current monetary system for the CBI & they believe it is likely to continue that route. The route that they currently go is that every dinar is backed by a liquid asset. A liquid asset is what is in the foreign cash reserves. For example, for every 1,170 dinars, the CBI holds $1 (Or the equivalent to a $1 through Euros, Gold, Francs, GBP, etc). Demand in itself has no factor in raising the value...

The foreign reserves for the US alone are roughly $150 billion. Could you imagine how fast the value of the Dollar would drop if they followed that type of monetary policy? Even millionaires would be starving...

So, if the CBI amends their monetary policies (Which could be expected as they drive to become a free-market economy w/ a democratic government), have a much lower amount in circulation as claimed, and have an increase in their own economy as their market booms, I would conclude nearly anything to be possible.

This does not confirm or deny their intentions or likely process on how this will play out... But, their removal of the 3 zero articles are pretty cryptic & confuse not only us, but the local citizens of Iraq. They're speculation articles mostly, just as we speculate.. They reference history, we speculate from their wealth (natural resources)

PTB, would likely wish & desire to create as much success in Iraq as possible to show that democracy works!!

Theorize this: A lot of people enter terrorism as a way to support their families. Now, some will receive a good chunk of change to go to their family if they strap a bomb to their chest & go blow up somewhere. With poverty, comes violence.... With wealth and prosperity, comes peace.. I think we can all mostly agree to that..

I relate it to how it seems back in historic periods, Christians traveled the regions & tried to push Christianity on tribes or other non-Christians.

Does it not seem purpose defeating in a sense to have a domestic currency back 100% by liquid assets? Their currency is pegged to the dollar, dollarization is an issue, so they may as well use a currency like the USD.

They sure spew out a lot of currency articles on a daily/weekly basis... One would have to wonder it would be for good reason..

[tigerstripes]

Shabbs has been quoted saying something to this effect, "Very little dinar resides outside of Iraq except a little bit in the neighboring countries, where the dinar made its way there because of tourism, trade, or vacationing.."

Now, we can also conclude that dollarization is a threat in Iraq. People prefer to use the Dollar over the Dinar. The Iraqi citizens know its a convertible currency, accepted nearly everywhere, and holds stability.

With all that said, why would 30 trillion need to exist even at the current exchange rate? The country itself has a high poverty rate, but is full of natural resources.

The exchange rate has remained pretty stable...

Now think about this, inflation is low but the money supply has inflated itself over the last few years. Why inflate your money supply when inflation is low??

This comes the theory: They really only have a "x" amount in circulation that is a true liability. They likely have 30 trillion on the books as a liability, but in reality, some of that could easily be wiped from the books.

They printed 6.38 Trillion from the get-go. 2 Trillion was allocated to reserves. Every year since the new dinar's inception, the CBI has printed on average 3 trillion per yer (Exception, 2007 or 2008, it had an uptick of 6 trillion, but figure a civil war and inflation on the rise could be the cause).

Now, Iraq is a country that relies on physical currency for use in their own marketplace. Their economical conditions are rather tough on elements that are exposed to them. Dinars are used in a much more frequent use and likely need to be replaced frequently. This is likely a problem for the CBI as they have to continue to print notes to replace the soiled ones. The CBI should likely be attempting to make a push for digital currency (Much like how it is in the West).

Okay, if an average Iraqi is skeptical of using a bank to store their cash or money while they get handed a card, how would a re-denomination decrease their skepticism? Something to chew on.

If the CBI wants to get the average Iraqi to rely more on the dinar over the USD, how would a re-denomination help?

I'm going to think like how I would if I was an Iraqi.

First, I would be skeptical of the banks... When Saddam was in power, he basically tried to take over the banks and inflated the money supply. My faith in the dinar is nearly lost, and I would be skeptical to hold large amounts of it in fear of losing money. I would likely wish & desire to hold USD over IQD. Now, the deleting of 3 zero articles would also have me skeptical. Would there be an ease of exchange, would all market places willing accept old & new dinars? I likely would be thinking, "Forget this, I'll rely on the trusty dollar that is used everywhere.."

Now consider this: In 2004, upon the inception of the new Iraqi Dinar, a very limited window of exchange was given to exchange old Saddams for new dinar. Borders were closed down & entry was prevented. This came during a time when conflict was high, so some people likely feared going to a bank or surrounding themselves near large groups of people (likely place for bombings).

What does this mean?

Saddam Dinars were inflated, due to an abundance of printing by the former regime. However, a lot of dinars were outside of Iraq & a dollarization was an issue even at that time. This exchange likely greatly reduced the liabilities of the dinar in itself... If a rather large portion of psychical cash resided outside of Iraq, the CBI did not have to pay for its exchange. Also consider how some average Iraqis may have never took their savings to the bank due to other fears.. Or even a small few had trouble finding their hidden stash buried in the sand.

One of the main problems with the lopsters is how they view the current monetary system for the CBI & they believe it is likely to continue that route. The route that they currently go is that every dinar is backed by a liquid asset. A liquid asset is what is in the foreign cash reserves. For example, for every 1,170 dinars, the CBI holds $1 (Or the equivalent to a $1 through Euros, Gold, Francs, GBP, etc). Demand in itself has no factor in raising the value...

The foreign reserves for the US alone are roughly $150 billion. Could you imagine how fast the value of the Dollar would drop if they followed that type of monetary policy? Even millionaires would be starving...

So, if the CBI amends their monetary policies (Which could be expected as they drive to become a free-market economy w/ a democratic government), have a much lower amount in circulation as claimed, and have an increase in their own economy as their market booms, I would conclude nearly anything to be possible.

This does not confirm or deny their intentions or likely process on how this will play out... But, their removal of the 3 zero articles are pretty cryptic & confuse not only us, but the local citizens of Iraq. They're speculation articles mostly, just as we speculate.. They reference history, we speculate from their wealth (natural resources)

PTB, would likely wish & desire to create as much success in Iraq as possible to show that democracy works!!

Theorize this: A lot of people enter terrorism as a way to support their families. Now, some will receive a good chunk of change to go to their family if they strap a bomb to their chest & go blow up somewhere. With poverty, comes violence.... With wealth and prosperity, comes peace.. I think we can all mostly agree to that..

I relate it to how it seems back in historic periods, Christians traveled the regions & tried to push Christianity on tribes or other non-Christians.

Does it not seem purpose defeating in a sense to have a domestic currency back 100% by liquid assets? Their currency is pegged to the dollar, dollarization is an issue, so they may as well use a currency like the USD.

They sure spew out a lot of currency articles on a daily/weekly basis... One would have to wonder it would be for good reason..

Interesting thought about what their actual cash requirements are in Iraq. The latest figures state just under 26 trillion "currency outside banks". How much of this currency is in use in country? The article some time back said about 4 trillion. I'd hate to think that there is over 20 trillion dinars worth of currency outside the country. So where is the rest of the currency? Also, how much of the currency that has been printed has actually been destroyed, lost, disintegrated, blown away in the wind, and is never really accounted for? Do all of the damaged notes get returned to the CBI?

[Darin]

Interesting thought about what their actual cash requirements are in Iraq. The latest figures state just under 26 trillion "currency outside banks". How much of this currency is in use in country? The article some time back said about 4 trillion. I'd hate to think that there is over 20 trillion dinars worth of currency outside the country. So where is the rest of the currency? Also, how much of the currency that has been printed has actually been destroyed, lost, disintegrated, blown away in the wind, and is never really accounted for? Do all of the damaged notes get returned to the CBI?

If they have 20 trillion outside of the country, they likely can't afford to do a re-denomination.

Their reserves will take a significant HIT....

That's anywhere from 15+ billion out of their reserves as people exchange out the currency... And a lot of it would happen rather quickly, I would imagine.

[markchem]

J Anderson You make valid points even though highly unpopular with the tenor of the majority of us that hold high hopes for a favorable RV. The many visitors I see here on a regular basis (obviously I have become one of those people as well) ,even though many try to downplay it, are of belief (or at least wishing/praying) that a RV could be imminent. Even the generator of this site has put out specific dates, or groups of dates that are NOW (people reread the previous two chats if you disagree with me). What I can't totally understand is your perspective - Are you strictly out to antagonize many by raining on their parade? Or are you a disgruntled dinar investor who has taken the opinion that whole Iraq and DInar scenario is, from a RV perspective, an unattainable possibility? You owe no explanation for why you steadfastly discredit this investment, but I, for one, could embrace the tenor more if I knew your perspective.

[unirod]

Amazing when you think about it .That inflation could be so low at anound 7% when the Iraq currency is not being counted at the banks but weighed instead. And they are willing to except a 1.3% loss on phony bills

[Roadie]

oops that was supposed to be a gif, I fail.

Edited November 29, 2011 by Roadie

[Nelg]

I don't like the reading. Doesn't mean it isn't what they are going to do, but I don't like it.

Hope it is only "smoke and mirrors".

[TQueezy]

I'd be interested in that as well especially since the CBI stated the currencies will co-exist for a time.

Yes, two currency denominations (50 IQD bill worth 0.043 US cents, and 50 IQD bill worth $43 USD) will co-exist until all the original currency has been returned on trade-in/exchange.

In essence, the country is drawing in its own wealth and replacing it with a different level of wealth that will be honored by other countries based on the reserves, assets, and other wealth that can BACK it.

They will probably do this with other currency denominations in the near future, and there will be more LOP/No-LOP argument threads like this until we see the final result, or it slips under the radar and we're all cashing in and forget about these ridiculous forums...

[uncirculd]

To me it is all saying straight up RV.

[keepmwlknfny]

Question? - How many trillion dinars will be taken out of circulation (locally) if they proceed with this concept. For each 50 dinar note the central bank will take in (2) 25,000 notes? Has anyone thought of this as a way of reducing the 000 notes in country? thus reducing trillions in circulation? Just thought.

That's pretty much what the CBI has been saying they will do.....lop the currency to reduce the amount in circulation by trillions....you walk into the bank with two old 25k notes and you would receive 1 new 50 note......

[Shick]

I PRAY THAT THIS CHANGE WILL BE FOR THE BETTERMENT OF US ALL, BUT TIME WILL TELL. GO RV!

[DinarBot]

That's pretty much what the CBI has been saying they will do.....lop the currency to reduce the amount in circulation by trillions....you walk into the bank with two old 25k notes and you would receive 1 new 50 note......

What About DinarBots current 50, 250 & 500 Notes. DinarBot can't chop chop chop 3 zeroes where none exist. Interesting times. Advanced math for a civilization that can barely read & write.

http://www.cbi.iq/index.php?pid=Banknotes

DinarBot Archive:

** Because of under-funding by the Hussein regime, in 2003 an estimated 80 percent of Iraq’s 15,000 school buildings needed rehabilitation and lacked basic sanitary facilities, and most schools lacked libraries and laboratories.

In the 1990s, school attendance decreased drastically as education funding was cut and economic conditions forced children into the workforce. After the regime change, the system included about 6 million students in kindergarten through twelfth grade and 300,000 teachers and administrators. Education is mandatory only through the sixth grade, after which a national examination determines the possibility of continuing into the upper grades. Although a vocational track is available to those who do not pass the exam, few students elect that option because of its poor quality. Boys and girls generally attend separate schools beginning with seventh grade. In 2005 obstacles to further reform were poor security conditions in many areas, a centralized system that lacked accountability for teachers and administrators, and the isolation in which the system functioned for the previous 30 years. Few private schools exist.

Edited November 29, 2011 by DinarBot

[Jeff Rasmussen]

Lets hope the two currencies (new & old) will coexist like has been mentioned previously. Then value will be transferred to old notes as well.

[keepmwlknfny]

What About DinarBots current 50, 250 & 500 Notes. DinarBot can't chop chop chop 3 zeroes where none exist. Interesting times. Advanced math for a civilization that can barely read & write.

Its all about the decimal place mr.bot......This is where the coins/fils come into play

Your 50 becomes a nickel, your 250 becomes .25 dinar and so on.....

All your doing is moving the decimal place over 3 for everything....

[sportfisher]

What is everyones take on this ? Good, bad , what ?

my take on this article if it has any accuracy at all is;

1) may be describing a Redenomination(LOP), and a replacement currency.

2) may be describing the release of a newly designed note (not a replacement currency) that has the same value as the current 50 note, yet pointing to a RV value

of $43 USD for all 50 notes, which happens to be the current value of 50,000 IQD.

There can't, and will not be 2 different 50 notes in circulation at the same time with different values.

Edited November 29, 2011 by sportfisher

[keepmwlknfny]

There can't, and will not be 2 different 50 notes in circulation at the same time with different values.

If there is two different currency codes then its possible....which would happen with a lop....

Gotta keep our eyes open for any information about a new currency code for the dinar....

[sportfisher]

If there is two different currency codes then its possible....which would happen with a lop....

Gotta keep our eyes open for any information about a new currency code for the dinar....

Yes keepm that's true, only with a Redenomination(LOP).

I know it is possible, but that's not something I'm entertaining.

Edited November 29, 2011 by sportfisher

[drc85260]

2) may be describing the release of a newly designed note (not a replacement currency) that has the same value as the current 50 note, yet pointing to a RV value

of $43 USD for all 50 notes.

There can't, and will not be 2 different 50 notes in circulation at the same time with different values.

I agree...however, if a 50 IQD is worth $43.00 (1 IQD = .86 ) sounds great if the revalue comes before the decimal move to the left.

Since the CBI has stated on numerous occasion that they will delete 3 zeros, (move the decimal to the left) and I have asked this question to a number of Gurus and have not gotten an answer?

At the risk of sounding like a lopster...why wouldn't they remove the zeros then revalue equal to a dollar?

i.e.: 25,000 IQD = approximately $21 now....remove the zeros...25,000 becomes 25 IQD and then revalue to a dollar to equal $1.

To put another way 1,000,000 IQD = $1,200 now...remove the zeros and 1,000 IQD will equal $1,000

Please tell me I am wrong.

Hopeful,

DrC