CBI Postpones Iraqi Currency Redenomination

The Central Bank of Iraq (CBI) has ruled out deleting the three zeros from the Iraqi currency in 2013 because it needs time and a new fiscal year.

The Deputy Chairman of the CBI, Mudhir Mohamed Salih, told AIN on Wednesday:

“The project of crossing out zeros from the Iraqi currency takes time … The Council of Ministers has instructed to take extra time to consider this project.”

According to AIN, Salih denied “The reports over a malfunction that took place while implementing this project in the exchange rate of the Iraqi Dinar against the foreign currencies.”

The report also said that the Council of Ministers decided during its session on 10th April to postpone the deletion of zeros from the Iraqi currency until further notice.

(Source: AIN)

24 Responses to CBI Postpones Iraqi Currency Redenomination

  1. Stew October 4, 2012 at 8:22 pm #

    Translation… we need one more year to sell our worthless currency to ignorant foolish foreign currency investors.
    The scam that just won’t go away.
    More indictments please.

  2. Jimbo October 5, 2012 at 12:58 pm #

    The mother of all scams. The ENTIRE Iraqi government should be SHOT!

  3. NAWAZ October 5, 2012 at 1:41 pm #

    its seems wise decsion , Iraq should graduaaly enhance valaue of NID so that peoples of Iraq could change their social status like other oil rich countries.

  4. 2collectg October 5, 2012 at 2:15 pm #

    poor stew has nothing better to do then to holla boo boo boo the dinar is a scam for you!!! stew get out of the basement let some FRESH AIR GET TOO YOUR BRAIN!! they do not have to redenominate to give the currency a rate! if the CBI MAKES ALL DINAR WORTH A DOLLAR!! YOU STILL WON`T ACKNOWLEGE ALL THE HEAVY HITTERS INVOLVED IN THE CURRENCY ARAB MONATARY FUND DUBAI CAHMBER OF COMMERECE IMF WORLD BANK GCC UN UNAID BP CHEVRON LUKOIL RUSSIAN OIL COMPANIES BRITISH OIL COMPANIES AND SO ON! see you at the bank soon stew you got dinar hid in your draws!!!

  5. iraqi dinar October 5, 2012 at 6:07 pm #

    One benefit to investing in Iraqi dinar is that there is very little to no risk in making such an investment. Iraqi dinar can be purchased at an extremely cheap price, which is the reason that such an investment is risk free. The only harm that an individual can do is to become careless and not budget properly, becoming carried away with spending money on purchasing Iraqi dinar. All an individual has to do is budget properly, and he or she can be on the way to become rich down the line.

  6. Rasica October 10, 2012 at 9:04 am #

    The most interesting aspect of this article, is that
    They never spoke of redenomination.

    They spoke of deleting zeros – which btw, they are
    doing now by buy back on the open market place.

    This is nothing more than a propaganda hit piece.

    They will never ever openly talk about dates, rates,
    In reference to releasing the IQD from tight monetary
    control.

  7. Stew October 10, 2012 at 7:18 pm #

    Rasica, you are lying and a few of your pumper buddies got indicted a few weeks ago for among other things telling this same lie.
    Here is the indictment.
    http://www.realscam.com/attachments/f12/1576d1348185792-bayshore-capital-investments-bh-group-bhgroup_indictment.pdf
    “8. A “redenomination” of the dinar refers to an actual proposal by the Central Bank of Iraq, announced as recently as June 21, 2011, to re-print the currency to REMOVE THREE ZEROS from the physical banknotes as a matter of convenience. A redenomination of the Iraqi currency would not lead to a revaluation by the same amount, and may have no effect on the currency’s value. Under a redenomination, a new currency replaces an old currency, but the value remains the same. Under the proposed redenomination, the Iraqi government would issue a new dinar note that will be equivalent to 1000 current dinars. The exchange rate would be 1.17 new dinars to the dollar, equivalent to 1,170 current dinars to the dollar.”

  8. John Richardson October 10, 2012 at 10:57 pm #

    Rasica, “deleting 3 zeroes” IS a redenomination. LOL. It’s only dishonest pumpers who’ve been trying to convince naive first-time Forex first-timers otherwise. They aren’t “deleting zeros” at the moment either. The Dinar money supply is going up not down! They won’t talk about “set dates”, simply because they haven’t set one yet (which is why pumpers who run around saying “this weekend!”, “by November”, etc, just show themselves up to be chronic compulsive liars).

    And the “rate” is already set – it’s 1000x less (hence “delete 3 zeroes”) than the current rate. Eg, at a rate of 1165:1, the new rate will be 1.165 (vs the $), ie, for every 1m Dinars you hand in, you will get aprox $858 back. Like Iraq (and everyone else except the pumpers) have been saying all along…

    “Mahma Khalil, Member of the Iraqi Parliament and official spokesperson of the Economic Committee stated that the new bill will be printed by a European company and introduced to the market gradually and in a well-planned schedule to ensure it will not result in shocks and would not have a negative impact on the market,” explained MP Khalil. He added the exchange rate between the new banknotes and the old ones would be 1:1,000.”

  9. Rasica October 11, 2012 at 9:52 pm #

    Well I see that your replies from both yourself Stew and John are the same positions you have taken for quit some time.

    I will explain it for those who happen onto this site so they may know the inconsistencies that I observe.

    First:

    On your indictment that is supposed to be relevant to the IQD, no where is it mentioned that IQD, Iraq, Dinar, is a topic of dispute. Therefore I did not read anymore of your .pdf file.

    Second:

    Removal of three zeros has nothing to do with the process of re-denomination. Why?

    A)
    Because GOI, CBI have been removing the three zero notes from the market since 2008 through buy back at market value rates. This IS called removal of the three zeros! Recall I have posted The article from the 2008 New York Times many times for you.

    B)
    Re-denomination has nothing to do with LOP. The IQD is NOT pinned to Iraq’s GDP/GNP. This is why in technical financial terms, the IQD will never ever be re-valued by the strictest sense of the word when it does ‘revalue substantially’ for the first time! This first time process is actually called a “release” of the IQD to the GDP/GNP which removes it from its artificial “tight monetary in country value” to an open free market economy WTO.

    c)
    The so called re-denomination process will be exactly as it was in the U.S. The IQD must come out with a substantial value before it can ever be re-denominated by the exchange process in the open market. For example; a person goes products for his home with a 1,000 dinar note. The 1,000 IQD is put in the register at the store and CHANGE is given using the New Notes (for the purpose of changing) several 50s, couple 20s, and a 5 & 1 dinar.

    Third:

    This IS the re-denomination process as was used in The USA and it MUST be this way!

    A)
    If as you suggest, 3 zero notes are stripped from the existing notes and replaced at the BANK for lower zero notes without a SUBSTANTIAL re-valuation preceding this process there would be pandemonium.

    B)
    Imagine the 1,000 IQD note you’re holding now, instantaneously becoming a 1 IQD without a value adjustment. The 1QD is now only .0008 in value it is NOT .0008 x 1000 or 8 cents $.08. That said, if the values were to be the same under both scenarios as you suggest it is painfully insufficient. Now one would have to use a wheel barrow to accumulate enough IQD to buy a gallon of milk. This process actually increases the amount of currency above and beyond what they presently have in the open market place in Iraq. This process is also known as a LOP where with it is completely out of line for a currency that is not pegged to their GDP/GNP and their present “tight monetary control” inflation rate is unbelievably low. Recall LOPs are used for extremely high inflations rates with currencies PEGGED to their present GDP/GNP and with multiple and “different based” currencies inside the nation’s borders. Iraq is NOE of that!

    C) We also know that the IQD is presently at .00085 of a dollar and interestingly, that is EXACTLY 3 zeros from Iraq’s present Cost Of Living Index of $.85.

    I suspect when the IQD is “released” from their artificial “tight monetary” process and then “pegged” to their GDP/GNP we will necessarily see a substantial value of the IQD in the range of $.85 to $1.21. This will instantly put Iraq on par with The U.S., on par with their Living Index of $.85, will discourage Corporate currency investors as the value will be “substantial”

    In the last several days I have read articles that Iraq will be experiencing soon a windfall of OIl sales. Just look around The Middle East and its not hard to see, especially when U.S. oil has been shut down by the democrats.

  10. Stew October 11, 2012 at 10:06 pm #

    I see an indictment in your future if you continue push lies like this.

  11. Rasica October 12, 2012 at 2:56 am #

    LOL :O)

    Well we know what is happening to your dumper buddies and how they want investors
    to remain in the pump/dump cycle of bankers so they can loot them.

    http://www.dailynews.com/ci_21416994/arrests-ongoing-massive-socal-bank-scam-that-could

  12. Stew October 12, 2012 at 3:13 am #

    From your link.
    “Bank of America and Chase and U.S. Bank have been amazing,” Shields said. “The banks have bent over backward to help the victims. They’re trying to make it right.”

    “Bent over” can also be used to describe the relationship between dinar dealers and dinar scam victims.

  13. Rasica October 12, 2012 at 8:22 am #

    Yes, we know all too well how this works :O)

    Money is gone – inside help – people loose another $100 million.

    Further, they can’t hide the fact that $100 million is now gone – but they can hide the facts about how!

    Then we move to circumstantial or direct evidence! A jury of their peers – hey ya just never know, the black glove may not fit again!

  14. John Richardson October 12, 2012 at 9:59 am #

    Rasica – “Removal of three zeros has nothing to do with the process of re-denomination”

    Rasica, you’ve just destroyed your own credibility in about 5 seconds flat there. What next – “printing money has nothing to do with inflation?” “Exporting has nothing to do with selling goods aboard”? As I said, there are one or two pumpers inventing their own definition of what it means, and plenty of gullible people like yourself clinging to those fake definitions out of desperation and twisting it to mean what you want it to mean.

    Rasica -“Because GOI, CBI have been removing the three zero notes from the market since 2008 through buy back at market value rates. This IS called removal of the three zeros! Recall I have posted The article from the 2008 New York Times many times for you.”

    No they haven’t. The CBI have been buying back a number of notes to try and match up the weaker-than-official street value with the official pegged value. They haven’t removed any of Iraq’s Dinar money supply in real-terms either total money supply or banknotes (and by repeating the long debunked lie that “Iraq have taken all the big notes out of circulation”, you show yourself up to be a pumper addicted liar parroting long-debunked 2008-era lies):-

    Iraq’s Dinar Money Supply Annually Since The 2003 Invasion:-

    2004 – (7.1tn banknotes) / (12.2tn total money supply)
    2005 – (9.1tn banknotes) / (14.5tn total money supply)
    2006 – (11.0tn banknotes) / (21.1tn total money supply)
    2007 – (14.2tn banknotes) / (27.0tn total money supply)
    2008 – (18.5tn banknotes) / (36.9tn total money supply)
    2009 – (21.8tn banknotes) / (46.4tn total money supply)
    2010 – (24.3tn banknotes) / (60.4tn total money supply)
    2011 – (26.3tn banknotes) / (65.1tn total money supply)
    2012 – (29.8tn banknotes) / (72.0tn total money supply)

    Source – Central Bank of Iraq.

    http://img31.imageshack.us/img31/6500/iraqdinarmoneysupply200.jpg

    So much for “removing all the three zero notes since 2008”, eh? Instead the opposite is happening – they’ve printed and put almost 60% more notes into circulation… Why do you lie so much about things that are both so obvious and so easily debunked in about 5 seconds flat on the CBI website? If Iraq took all the banknotes out of circulation outside of a redenomination, there’d be riots in the streets as the country would literally run out of money to buy even food…

    Rasica – “Re-denomination has nothing to do with LOP.”

    ROFL!!!! A redenomination IS a LOP! OMG, you’re priceless. “Deleting zeroes”, “cutting zeroes”, “lopping zeroes”, etc, all mean the same thing and always have done including the 60-odd other countries who’ve been through exactly the same process!

    “The IQD is NOT pinned to Iraq’s GDP/GNP. This is why in technical financial terms, the IQD will never ever be re-valued by the strictest sense of the word when it does ‘revalue substantially’ for the first time! This first time process is actually called a “release” of the IQD to the GDP/GNP which removes it from its artificial “tight monetary in country value” to an open free market economy WTO.”

    You keep shovelling that same stupid meaningless sales slogan “pinned to GDP” that has already been debunked years ago on other topics. To start with, Iraq’s economy is about $160bn and their money supply is about 72,000bn Dinar. At 1165-1170:1 their money supply is already fairly valued as it is. People who keep parroting “The Dinar will magically grow 1,000x more valuable” are basically claiming that Iraq’s $160bn economy will support a $62,000bn money supply and Iraq will have almost 500x more money in circulation than the size of their economy… This is precisely where you end up debunking yourself by getting everything completely back to front. The Iraqi Dinar is about 500x more “closer to GDP” right now than it would ever be after a theoretical “RV”. You contradict yourself.

    Rasica – “This first time process is actually called a “release” of the IQD to the GDP/GNP which removes it from its artificial “tight monetary in country value” to an open free market economy WTO.”

    Pure pumper sales talk based around an obsession with Orwellian “NewSpeak” definitions. “It’s not a LOP, it’s a release to value”! There is no “hidden value” though, it’s all inflation. Seriously, you have no idea how absurd that sounds. No-one in Iraq is using those terms. They were invented by American salesmen and are only used on pumper boards now that the pumpers are being openly contradicted by the CBI. “OMG! Iraq have announced yet another press release on the redenomination. We can’t keep telling people they haven’t said it anymore. I know! Let’s pretend a redenomination isn’t a redenomination by making up our own definition!” This is the pumpers (and your) argument in a nutshell.

    Rasica – “The so called re-denomination process will be exactly as it was in the U.S. The IQD must come out with a substantial value before it can ever be re-denominated by the exchange process in the open market.”

    The IQD doesn’t have to move in value at all before redenomination. The whole process is revenue neutral by design. Please learn what you’re talking about before embarrassing yourself further.

    Rasica -“For example; a person goes products for his home with a 1,000 dinar note. The 1,000 IQD is put in the register at the store and CHANGE is given using the New Notes (for the purpose of changing) several 50s, couple 20s, and a 5 & 1 dinar.”

    OMG! You mean old notes will be changed for new notes just like every other country on Earth who has also redenominated? How do you think Turkey & Afghanistan managed who went through exactly the same redenomination / LOP process with the Lira (6 zeros deleted) & Afghani (3 zeroes deleted)? Or the Euro when it changed over a dozen currencies for 300m people in barely a few weeks? The fact you’re acting like this is something new and a novelty is pretty much a self-admission of being clueless about the Forex market and redenominations in general.

    Rasica – “If as you suggest, 3 zero notes are stripped from the existing notes and replaced at the BANK for lower zero notes without a SUBSTANTIAL re-valuation preceding this process there would be pandemonium.”

    No there wouldn’t. God knows where you got that from. The whole process is revenue neutral by design. It doesn’t affect the international value at all (as Iraq have been saying all along). This isn’t new, countries have been through it literally dozens of times before.

    Rasica – “Imagine the 1,000 IQD note you’re holding now, instantaneously becoming a 1 IQD without a value adjustment. The 1QD is now only .0008 in value it is NOT .0008 x 1000 or 8 cents $.08. That said, if the values were to be the same under both scenarios as you suggest it is painfully insufficient. Now one would have to use a wheel barrow to accumulate enough IQD to buy a gallon of milk.

    OMG. Dude, take a time-out and learn how it actually works:-

    Redenominating:-

    Your 1,000 Dinar note will become a 1 Dinar note, you will exchange at 1:1000 ratio (and the currency will move 1,000x higher precisely because you will exchange at 1:1000 ratio which has the effect of taking 99.9% of money out of circulation – that’s what drives the 1,000x movement in the first place!) Kuwait’s money supply is about 30 billion KWD. Iraq’s is about 72 trillion (or 72,000 billion) IQD (they’ve printed over 2,000x more money). The value of the IQD isn’t going anywhere until they redenominate / LOP 3 zeroes off because it’s precisely that that removes 99.9% of money from circulation and brings Iraq’s trillions of banknotes in line with Kuwait’s billions of banknotes.

    So your 1m Dinar (currently worth $858 at 1165:1 ratio) will be exchanged 1:1000 for 1k Dinar (also worth $858 at 1.165:1 ratio) with a 1,000x higher ratio. You won’t gain or lose anything. It isn’t that difficult to understand once you put delusions of grandeur, deliberate pumper disinformation & blind greed in general aside… Iraq never was going to make people 100,000% richer nor was it intended to (nor is it possible to). That whole sales pitch is one giant confidence trick.

    Rasica – This process actually increases the amount of currency above and beyond what they presently have in the open market place in Iraq. This process is also known as a LOP where with it is completely out of line for a currency that is not pegged to their GDP/GNP and their present “tight monetary control” inflation rate is unbelievably low.”

    What on Earth are you talking about?!? A 3-zero LOP / redenomination REDUCES the money supply by 99.9% not increases it! That’s the whole point of doing it in the first place! Can you get nothing right? Do you honestly not understand a single word of which you are speaking? Iraq’s inflation isn’t “unbelievably” low either. Something bought for 1000 Dinar in 2007 would cost 1419 Dinar today. Those figures come straight from the CBI.

    Rasica – “Recall LOPs are used for extremely high inflations rates with currencies PEGGED to their present GDP/GNP and with multiple and “different based” currencies inside the nation’s borders. Iraq is NOE of that!”

    LOPs can be used by anyone at any time. Most LOPs occur during a lull in inflation (after a period of high inflation) which ironically is exactly the same situation s Iraq is in right now…

    And shouting “pegged to their GDP/GNP” is utterly meaningless as well. All you’re doing is confusing Iraq’s internal economic measurement with Iraq’s external currency measurement. Currencies are valued vs other currencies (via money supply), not “pegged” to their own economic measurements (otherwise smaller countries would have values nowhere near that of larger countries). It’s like saying “a kilogram is ‘pegged’ to a inch” as if it means something. They’re completely different units of measurement, measuring completely different things!

    And even if it were “pegged”, as mentioned above – Iraq’s GDP is approx $143bn. How on Earth is a 60,000bn “RV’d” money supply (Iraq’s 72,000tn money supply at 1.165:1 vs the $ without a LOP) even remotely “pegged” to $143 at 1.165:1? Not only do you not understand what I’m saying, you don’t even understand what you’re saying or see how your own bogus “maths” and ‘junk economics’ debunks your own argument…

  15. Rasica October 12, 2012 at 10:10 pm #

    Interesting spin John! Most Dinar Investors do not argue with just a few of you dumpers. But I occasional do! Keeps us Real!

    But your whole repertoire does not address the point:

    Fact:

    “The Iraqi central bank is& has been buying back its currency at a feverish pace, forcing the value of the Iraqi dinar higher……………..

    http://www.nytimes.com/2008/06/21/world/middleeast/21security.html?hp
    By STEPHEN FARRELL and RICHARD A. OPPEL Jr.
    Published: June 21, 2008
    Page 3″

    ==============================================

    CALCULATION to establish a Buy Back Timeline by CBI based upon the premise that there are 36T Dinars in circulation which actually includes Digital Loans/Promissory from M2.

    A) Iraq’s buy back rate = $1,500,000,000.00 USD Per Month on Open Market began in 2008.

    B) Open Market Value of Dinar In House Value 1168 which = $.000856 USD

    C) Divide $1,500,000,000.00 BY $.000856 this = 1,752,336,448,598 Dinars/month removed from inventory.

    D) Take 1.752 Trillion Dinars removed each month from Open Market Place Value of $.000856 and divide it into our Presumed Maximum of 36T from M2 and on the outside this gives us a Time Line of 20.54 Months to buy ALL Dinars on the Open Market which in reality also includes the DIGITAL Promissory/Loans.

    So at the most, we are looking at 20 1/2 Month Buy Back Time Line for total Dinar Inventory (based upon M2) at a buy back rate of the max $1.5B.

    Of course this has not been sustained as Iraq would be out of Digital and physical Dinar Currency.

    Present “”physical”” currency in the open market place is approx. +3 Trillion – Do not confuse this with M2 Digital Dinar Values.
    =================================================

    A REVALUE IS THE SAME AS A VALUATION OR THE SAME IN THIS CASE AS REMOVING THE ZERO’S IN ANY AMOUNT FROM THE NOMINAL VALUE.   

    WHAT IS THE NOMINAL VALUE? 

    THE NOMINAL VALUE IS WHAT IS USED WHEN COMPARING ANY CURRENCY AGAINST THE USD.  RIGHT NOW THE DINAR IS 1166 BUT THE NOMINAL VALUE IS .00086 AND SINCE CBI STATED THEY ARE REMOVING THE ZERO FROM THE NOMINAL VALUE OR THE THOUSANDTH, THIS IS WHERE THIS THOUSAND TO ONE KEEPS POPPING UP, THE DINAR IS RECOGNIZED IN THE THOUSANDTH THE USD IS NOT.  

    BY REMOVING THE 3 ZERO’S OR THE THOUSANDTH POSITIONS THEY ARE NOW BROUGHT IN LINE WITH THE NOMINAL VALUE OF THE USD.  

    NOW WHAT IS THE CONVERTED VALUE AFTER THE REMOVAL OF THE ZERO’S?  1.17 DINARS = 1 USDOLLAR OR .86 CENTS SAME AS IRAQ’S PRESENT LIVING INDEX.
    ===================================================

    CURRENCY [SUPPLY] IS NOT CURRENCY [CIRCULATION]!!!! CURRENCY SUPPLY IS M1 WHILE M2 CONTAINS FRACTIONAL DIGITAL CIRCULATION!

    The U.S. alone has approximately 3 TRILLION CURRENCY SUPPLY WHILE THE U.S. HAS (ADMITTED) 72 TRILLION CURRENCY CIRCULATION!!!!!

    WHEN ALAQ SAYS “WE HAVE 30 TRILLION IN CIRCULATION” THIS IS M2 WHICH IS FRACTIONAL BANKING BY DIGITAL CIRCULATION!

    THIS HAS NOTHING TO DO WITH CURRENCY SUPPLY WHICH THEY HAVE BOUGHT BACK AT THE RATE OF $1.5 BILLION/MONTH!

    IRAQ HAS REDUCED THE [SUPPLY] AKA; ACTUAL PHYSICAL IQD NOTES THAT YOU CAN TOUCH, FEEL, AND TAKE PHYSICAL POSSESSION THEREOF -> BY 70%, WHILE FRACTIONAL BANKING IS DIGITAL CIRCULATION
    WHICH CAN INCREASE IRRESPECTIVE OF THE ACTUAL PHYSICAL NOTES M2!

    MAYBE THIS IS WHY YOU SIMPLY DO NOT UNDERSTAND THE M0-M1-M2 INFORMATION AND WHY THE MANTRA’D 30 TRILLION-60 TRILLION HAS [NOTHING] TO DO WITH THE REVALUATION!

    PLEASE STUDY FRACTIONAL [RESERVE] BANKING!

    IRAQ IS WELL BELOW 4 TRILLION CURRENCY “””””SUPPLY””””” WHERE AS U.S. IS NEAR 3 TRILLION CURRENCY “””””SUPPLY”””””.
    ===================================================

    Real World Dinar

    COST OF IRAQ LIVING VALUATION INDEX CAN BE FOUND HERE!

    MILK IS $1.85 USD (NOT IQD) OR 2.155 IQD AFTER $.85 RELEASE.

    Iraq does not publish official house price statistics, and all other statistical work in Iraq is in abeyance (IQD is NOT) pegged to a GNP/GDP like all Nation States that deal with Re denomination/LOP/Exchange.

    The IQD value of .00085 is for churning purposes through their choreographed ‘auctions’ to generate profit while Iraq rebuilds its Infrastructure through tight monetary control.

    For those above who have a difficult time understanding the mechanics of ‘tight monetary control’ simply think “IQD is NOT real world yet” it has NOT been assigned a value in the world market place.

    Please also remember that the USD is used for OIL transactions until IQD is pegged.

    For that matter, even though Iraqis use a government card for food etc, when they do come in contact with the IQD they shun from it and opt for the USD when possible. Its the PEOPLE of Iraq who want the IQD pegged.

    Local Price of Goods – Iraq Compared to Continent ~

    UAE $1.37 Kuwait $1.14 Israel $1.04 Qatar $0.95 Bahrain $0.86 Saudi Arabia $0.83 Oman $0.82 Libya $0.78 Jordan $0.77 Algeria $0.69Lebanon $0.67 Morocco $0.62 Syria $0.60 Yemen $0.58 Iran $0.51 Tunisia $0.48 Egypt $0.45

    Iraq is ==> $0.85

    Notice that this price is exactly 3 zeros less than the ‘tight monetary controlled’ IQD $.00085 or 1165 to 1 USD.

    Iraq’s functioning value is at $.085 with an IQD that is simply being used presently by Iraqis which is not released to the real world thus keeping Iraq safe from high or even higher hyperinflation that plagued Germany after WWII.

    Very smart move by Iraq and the IMF.

    This is a cost of living indicator. The figures show how much how much a bundle of goods and services costing US $1 in the US would cost in other countries (similar to The Economist’s Big Mac Index).

    To arrive at the figure, the Global Property Guide takes the difference between the IMF’s nominal GDP figures, and their purchasing power parity GDP figures for the latest year available.

    Note that currency undervaluation (as measured by PPP) is not a good predictor of future currency movements.

    These cost of living indicators refer to data collected annually (for date of collection, see Data FAQ )

    Source: calculated using figures from the IMF World Economic Outlook Database

    REMEMBER NOW THE COUNTRIES BELOW HAVE THEIR CURRENCY PEGGED TO THEIR GDP/GNP IRAQ DOES NOT. IRAQ IS UNDER “TIGHT MONETARY CONTROL”. SO COMPARING APPLES TO APPLES DOES NOT WORK HERE.

    THOUGH IRAQ HAS A NOMINAL VALUE OF $.0008, THAT NOMINAL VALUE IS BASED ON THE ARTIFICIAL “TIGHT MONETARY CONTROL” {NOT PEGGED TO GDP/GNP}.

    THE OTHER COUNTRY’S NOMINAL VALUE MAY BE SIMILAR TO IRAQ’S NOMINAL VALUE ~ THEIR NOMINAL VALUE ARE TIED TO THEIR OWN GDP/GNP.

    Also remember, TAXES are not being collected yet, no agency exists in Iraq to collect them.

    Iraq’s Cost Of Living Index:

    Salaries – (are going up quickly)

    entry level – 200,000 Dinars a month
    experienced – 300,000 a month
    professionals – 500,000 a month

    Milk is $1.85 or 2,155 dinars

    Cigarettes are $1.50 or 1747 dinars

    Nike Tennis Shoes are $150 or 174,750 dinars

    Rent 1 bedroom apartment/month is $416 or 484,640 dinars

    Average income/month is $561.25 or 653,856 dinars

    Cheese 1kg is $8.40 or 9,786 dinars

    Average electricity bill/month for 2 bedroom apartment is $118 or 137,480 dinars

    Rent/Electricity pretty much uses up 1 month salary

    So when the GOI/CBI went ahead and purchased $1.5 Billion IQD from the free market place/month how did this affect the economy? The wealth of Iraq sky rocketed, but the Dinar was kept under tight monetary control and did NOT reflect this value as the IQD is NOT tied into their GDP/GNP.

    We all know the Dinar is being kept artificially low until ready to be released. This is why AMERICANS could only buy DInars By A Presidential Executive Order 13303. The Dinar IS NOT tradable on the open market ~ it has NOT been released YET.

    It simply kept in ‘tight monetary controlled’ which slowly encourages savings/loans inside Iraq and keeps prices stable. Its like feeding a baby ‘baby food’. Iraq was not ready for for the WTO yet until its infrastructure reaches an ‘apex’ with supply demand.

    This point has now been reached and “release of the dinar” is nearing that point to be accepted by The WTO aka; World Market!

    Why does Iraq want to “release the dinar” aka; revalue and then slowly re denominate over approximately a 2 year period? It is to slowly accumulate the remaining 3 zero notes from the market place and from abroad just like The USA did.

    They were not able to buy back EVERY dinar while the dinar remained under “tight monetary control of 1165. They must now enter the Open Market to buy back INVESTORS who still hold onto the remaining Dinars.

    The buy back of dinars by American Investors will NOT be done directly with Iraq. It will be accomplished through “local banks”. Who in turn sell the dinars to the Federal Reserve where they will be kept in storage until Iraq buys them back from the Feds.

    The Trigger for this process, will be the “release” of the IQD from “tight monetary control” by the GOI/CBI.

    So any arguments about Iraq not having enough money is a moot point. Their physical currency in the current market place based upon “tight monetary control” is about +3 Trillion and continually going down. ONly the “digital” is fluctuating up and down M2 -> which is also a moot point about “release” or what some have called “revalue”.

  16. Rasica October 12, 2012 at 10:26 pm #

    THE OIL GOLD RUSH IN IRAQ: FUNNELING AMERICA’S MONEY TO IRAQ CONTINUES UNABATED!

    http://politicalvelcraft.org/2012/10/11/the-oil-gold-rush-in-iraq-funneling-americas-money-to-iraq-continues-unabated/

  17. John Richardson October 12, 2012 at 10:38 pm #

    Rasica – “CALCULATION to establish a Buy Back Timeline by CBI based upon the premise that there are 36T Dinars in circulation which actually includes Digital Loans/Promissory from M2.”

    Rasica, you posted the same lies before claiming first of all it was “4 trillion” (on another topic), now you’ve changed your tune to “32 trillion”. Even your own false beliefs are inconsistent. The real figures are as plain as day and clear for all to see right there on the CBI’s own website:-

    Dinar Banknotes (M0) in circulation:-

    2002 = 2.5tn
    2003 = 6.7tn
    2004 = 7.2tn
    2005 = 9.1tn
    2006 = 10.9tn
    2007 = 14.2tn
    2008 = 18.5tn
    2009 = 21.8tn
    2010 = 24.3tn
    2011 = 25.8tn

    2012 January = 28.0tn
    2012 February = 28.8tn
    2012 March = 29.1tn
    2012 April = 29.8tn
    2012 May = 29.6tn
    2012 June = 30.7tn
    2012 July = 30.794tn
    2012 August = 30.959tn

    http://www.cbi.iq/documents/Monetary_Aggregates_f.xls

    The problem with your “buyback” obsession based on a 4-year old article is that it completely ignores the fact Iraq are continuing to print new money. Since that article you quoted was written (back in 2008) Iraq’s money supply has shot up 60%. This isn’t opinion, it is plain, simple and easily verifiable fact. Your economic “understanding” is based on a one-sided confusion of what Iraq are doing in the real world and your maths are meaningless because they 1. Only look at half the issue, and 2. Ignore the other half that already factored your “buyback” issue in. Iraq’s “buy-back rate of 1.5bn per month since 2008” is pretty meaningless given they’re simultaneously inflating the currency by 60% over the same period – and that includes the “buyback effect”! It’s already been factored into the above figures. You’re just trying to double count it and ignore anything you don’t the sound of…

    So like I said, they aren’t taking any money out in real terms at all. That’s why the street value of the Dinar is weaker than the official value, not stronger. Shouting the same confusion over and over won’t make them any more true now than it did the last time you told them on the other topic.

  18. John Richardson October 12, 2012 at 10:46 pm #

    “The U.S. alone has approximately 3 TRILLION CURRENCY SUPPLY WHILE THE U.S. HAS (ADMITTED) 72 TRILLION CURRENCY CIRCULATION!!!!!”

    And this is yet another lie (please just stop lying Rasica, it makes you look so childish). The US has $3tn (M0) and approx $10.2tn (M2). The 72 trillion you quote is Iraq’s genuine M2 figure, not America’s. All you’re doing is inventing your own figures and hoping that if you tell the same lies enough, people will believe you.

    America’s M2 figure is no big secret and is right there on the Federal Reserve’s own website:-
    http://research.stlouisfed.org/fred2/series/M2?rid=21&soid=1

  19. kev October 12, 2012 at 11:16 pm #

    Rasica: “IRAQ HAS REDUCED THE [SUPPLY] AKA; ACTUAL PHYSICAL IQD NOTES THAT YOU CAN TOUCH, FEEL, AND TAKE PHYSICAL POSSESSION THEREOF -> BY 70%”

    What the hell is wrong with you??? The real figures are right under your nose on the Central Bank of Iraq’s own website. If Iraq had 18.5tn Dinar banknotes in 2008 and it’s now over 30tn banknotes in 2012, then quite obviously they haven’t taken anything at all out. In fact they’ve printed and circulated 67% more Dinar!

    You spent a dozen posts spreading the same word-for-word blatantly stupid lies on this topic:-

    http://www.iraq-businessnews.com/2012/08/06/you-cant-fix-stupid-the-iraqi-dinar-scam/comment-page-1/

    You were wrong (and completely, totally and catastrophically destroyed on every single point you made!) on that above topic – and you are wrong now for the same reason on this one. Most of your “arguments” are in fact just regurgitated copied & pasted word for word (literally) and lie for lie from your previously debunked posts on other topics. Half your reply to John is just a jumbled mess of half a dozen posts you threw together before. It’s like you have a text file on your PC with the same nonsensical garbage you blindly repost over & over hoping someone – anyone – will swallow it.

    This is 2012, not 2007. No-one’s buying out of fashion pumper conspiracy theories anymore. You’re 5 years too late for your “copy and paste” pumping…

  20. Rasica October 13, 2012 at 4:51 am #

    Gotta keep it real John:

    Your links are worthless and you are posting Iraq’s (M2) as Iraq’s (M0)!

    Measures of money supply (called monetary aggregates) have different criteria in different countries, and are categorized from the narrowest to the broadest.

    SUPPLY:
    You can easily go onto the internet and find a broad term M0 as suggesting circulation. In the strict meaning of M0 it is physical currency supply that can be physically held in your hands like (notes & coins).

    Circulation:
    Is quit different, as circulation applies to {digital fractional circulation} aka; M1-M2-M3 areas. For the most part Iraq uses M2 for this category. All Nation States are different in how they dress their books.

    This said: We digress from common sense too!

    Now I have given you credible sites to check and you post sites that have nothing to do with the topic.

    You have agreed with me that Iraq has and is to this day buying back IQD off the market place at “tight monetary controlled value”.

    But then “YOU SAY” they are printing “PHYSICAL IQD NOTES”? while simultaneously spending $1.5 Billion /Month to reduce the 3 zero notes?

    Come On!

    What I see going on, is that you are seeing the M2 climb and you are relating that to PHYSICAL IQD NOTES. While The Same Time Iraq Is Buying Back Trillions Of Physical Notes ~ Alarm Bells Are Ringing John!

    What you’re seeing, is the increase in ” Digital Fractional Circulation”. You know computer numbers which are based in Keynesian Economics as “derivatives”.

    M2 IS NOT M0. Indeed M2 does contain some M0 but M0 does not contain “Digital Fractional Circulation”. This is why M2 is meaningless in the concept of “does Iraq have enough money to cover 36-70 Trillion dinars? Its a bogus question to begin with.

    Digital Fractional Banking is being shut down right and left inThe U.S. as MERC is not allowed any longer to foreclose on homes unless the hold the note.

    Digital fractional banking is a casino scam which bases value on a note which derives its value not from from some other source in the future _ basing it upon some future value which in the real world is unknown. It allows for infinite QE3s for example. Its FIAT digital currency if you will.

    United States “Digital Fractional Circulation is near 72 Trillion with an M0 of only 3 Trillion. It cannot be any easier for one to understand the difference.

    When you say they are printing money at the same time buying it back is nonsensical but yet true if you understand “digital fractional banking”. Thats what you’re seeing – your not seeing an increase in physical IQD that you can hold and touch like (notes & coins) because this is where it is being reduced by BUy Back!

  21. John Richardson October 13, 2012 at 10:26 am #

    kev – “You spent a dozen posts spreading the same word-for-word blatantly stupid lies on this topic”

    Kev, I know. He even spams other forum (DinarVets, etc) with the same “copy & paste” garbage. It’s like trying to hold a sensible conversation with a spam-bot. “Your links are worthless”. My links were to the same people who are in charge of the whole process. So now he hates the same people he thinks are going to make him rich when they redenominate… LOL. He then tries to explain “money supply” and “fiat” to us (as if its somehow unique to Iraq) after we had to explain it to him after he got it seriously mixed up over on the other topic a few months back. The guy’s a troll. The ALL CAPS is a dead giveaway. People on the other forum called him out on it too for yelling Saddam Hussein era statistics as if they hadn’t changed in 10 years IN ALL CAPS like a deranged lunatic / troll over & over and “talking past” everyone without understanding a single word of what anyone says. 🙂

  22. Radical October 13, 2012 at 7:19 pm #

    Typical of dumpers when they loose the ‘fact’ debat – resort
    to orchestrated fairy tales.

  23. Stew October 13, 2012 at 7:51 pm #

    Rasica has been posting the same nonsense since 07 or 08. His errors were explained to him 5 or so years ago, yet he continues to push the lies.
    He was a big pumper on IHUB and if you search for Rasica and Ihub you can see his posting history. If you go back in his history you can see he was pumping scam penny stocks before he started pushing the dinar scam. I’m sure that’s where he gained his ability to simply ignore facts, logic and reason and just continue unfazed to push lie after lie.

    Pheonix was also a big pumper on that board. He posted as Ema266 and was also a penny stock pumper before his dinar days.

  24. Stew October 13, 2012 at 8:22 pm #

    Iraq has had about a 100 billion dollar budget for years now. It was stated once that about 80% of their budget is in dinar, the other 20% is dollars.
    So they put 80 billion dollars worth of dinar in the system through budgetary expenses every year.
    That’s about 93 TRILLION dinar a year that they put into the system.
    They have to buy massive amounts back at auction just to keep the money supply reasonably in check. Anyone with half a brain can see they put more into the system than they buy back.