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Economists Divided Over Deletion Of Zeros

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Economists Divided Over Deletion Of Zeros

By Amina al-Dahabi for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

The Central Bank of Iraq (CBI) has been attempting to delete three zeros from the Iraqi currency since 2003. This project has raised many concerns among the Iraqi public and within the business community, and Iraqi economists are divided. While some support the project and consider it a chance to decrease inflation and unemployment, others warn of economic shocks that may prevail over the Iraqi market as a result of the project’s implementation.

Following amendments made by the CBI, implementation of the project has been postponed several times. This is because of fears that are mostly related to the lack of security, the presence of a market open to foreign commodities without any restrictions, the prevalence of counterfeit money in the market and rampant corruption in the country.

The independent Iraqi News Agency (INA) quoted Abdul Hussein al-Yasiri, a member of the Iraqi parliamentary Finance Committee, as saying that 2014 will witness the deletion of zeros from the Iraqi currency. He noted that the deletion will occur in coordination with the CBI, and that as a result of the project, the number of banknotes in circulation will be reduced from 4 billion to 1 billion.

Haider al-Abadi, the head of the Iraqi parliamentary Finance Committee, told Al-Monitor that while deleting zeros from the current currency is possible, this has been postponed until after parliamentary elections. He noted that studies are being carried out to ensure that, following the currency change, counterfeiting is limited and that Iraqis don’t go back to trading in the old currency.

The step to delete zeros from the currency has been postponed several times, leading the parliamentary Economic Committee to demand that the CBI accelerate this project, as Al-Sharqiya reported. In a news conference held July 6, the Economic Committee confirmed that the deletion of zeros will lead to an increase in the value of the Iraqi dinar and will have positive repercussions, including a reduction in unemployment and poverty rates in the country.

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131 Responses to “Economists Divided Over Deletion Of Zeros”

  1. Barry says:

    Bo, Iraq sells about $90bn of oil per year. It would take 933-3266 years to sell enough oil to raise enough $ to “RV” the Dinar anywhere near $1 parity or “$3.5 rates”. And even then the latter figure is equal to 4x planet Earth’s sized economies (whilst in reality Iraq’s $200bn economy makes up about 0.25% of the global economy). That’s how crazily out of whack with reality the whole “RV” fantasy is. And anyway, Iraq sells oil in $ not Dinar, and most oil revenue gets spent on domestic govt spending, not pumped into CBI reserves so the Dinar’s value won’t go up just by selling more oil.

    “If they purge the current currency in which they are doing -they will decrease the amount in circulation.”

    They aren’t “purging” anything. See the figures on the CBI’s website, Iraq’s money supply is going up and up:-

    Iraq’s M2 Money supply by Year since the invasion:-
    2004 = 12.25tn Dinar
    2005 = 14.68tn Dinar
    2006 = 21.08tn Dinar
    2007 = 26.95tn Dinar
    2008 = 34.92tn Dinar
    2009 = 45.44tn Dinar
    2010 = 60.26tn Dinar
    2011 = 65.11tn Dinar
    2012 = 72.02tn Dinar
    2013 = 84.13tn Dinar

    “Iraq have been quietly removing money from circulation” is one of those made-up “rumors” (ie, blatant lies) told on pumper forums (since 2007) that’s the exact opposite of reality. The only way Iraq can remove a massive amount of Dinar from circulation is to redenominate, and you won’t get rich from that (as explained through the thread (and many other threads like it)).

  2. triplelllc says:

    I didnt buy dinars because of fortune tellers. I bought because of the history of iraqs revaluations in the past. True it might not ever happen but if it does its only because of the history of other revaluations.

  3. Stew says:

    Can you tell us about this history of revaluations and where you read about them if it wasn’t from one of the dinar fortune teller sites?

  4. Bo says:

    Well Stew,

    I never give up, I have faith. What if Harriet Tubman gave up? There is no perfect government and over time, I believe the US will collapse. If you were living during the Roman Empire days and you were Roman, you would have full faith in the Roman economy. Yet, we know their outcome. Countries get strong and weak all the time. The fact that they have been crushed, they can only get better. For example, if you loss your home in a tornado, would you rebuild? If you made a zero on a test, on the next test, you can only get better. Plus, they have oil, and last I checked, its still a resource and has value.

  5. Stew says:

    You have faith the US will collapse? That a nice positive thing to have faith in.
    I’m sure you are familiar with Italy. For years and years Italy had an exchange rate around 1500 to 1. During that time they had one of the 5 biggest economies in the world.
    Currently Japan has the 3rd largest economy in the world. Their exchange rate is 100 to 1.
    India has a top 10 economy, with a 60 to 1 exchange rate.
    Economic success does not mean anything for the exchange rate. In fact there are many examples of countries that prosper economically while their exchange rate drops. Dinar forums are full of made up financial/economics fantasies. Just about everything you read on them is complete B.S.

  6. Barry says:

    That’s the problem Bo, the whole “RV” scam basically relies on people who don’t understand a single thing about Iraq, economics or currencies in general, but have a lot of “faith” that the same men who spent the last 10 years getting 7,162 out of 7,162 predictions as wrong as they possibly could might be “right” the 7,163rd time. Then keep moving the goalposts down the line when they aren’t. As Stew said, when a group of people have been caught telling the same ridiculous lies over and over again, at what point do you stop treating them as prophets? Some “RV” forums are literally run like religious cults. You’ve even posted that yourself above : you “have faith” you’re going to be a ‘chosen one’ lifted out of Armageddon. Um, right…

    “I believe the US will collapse. Plus, they have oil, and last I checked, its still a resource and has value.”

    Sounds like another pumper sales pitch. First of all you act like Iraq is the only country on Earth with oil. There are over 100x countries who sell oil, including the USA:-

    US oil production : 8.45m barrels per day
    Iraq oil production : 3.4m barrels per day

    Secondly, if the USA & Dollar “collapsed”, it would take the entire world with it Iraq included (oil is sold in $ not Dinar, and the Dinar is pegged to the $). Are you really planning to emigrate to Iraq? If not, then what do think you’re going to exchange your only-valid-inside-Iraq paper Dinar for, magic beans? The only genuine hedge against the USA collapsing is gold & silver, not someone else’s 1164x more worthless untradable fiat paper.

    Secondly, an $84,000tn RV in a country which sells about $90-100bn annual oil exports is pretty silly, yes? It would take between 800-1,000 years for Iraq to sell enough oil to “RV” the Dinar parity to the $ (without a redenomination / lop) and 2800-2940 years to sell enough oil to “RV” the Dinar at absurd $3.5 pumper rate. That’s pretty much how absurd the whole “belief” is that the Dinar should shoot up 1,000×-3,500x in value from $84bn money supply to $84,000-$294,000bn money supply for no reason whatsoever other than they sell $90bn of oil each year and have the same real-life size economy as Portugal or Algeria…

    Reality check : The whole global economy is only about $80tn. So you’re “having faith” that Iraq (with a 0.25% economic share of that $80tn global economy) “deserves” to have almost 4x Planet Earth’s worth of money and you expect it to be priceless and not worthless?… See the obvious common sense problem there?

    The rest of your post are just false analogies. Yes I would rebuild my house if a tornado blew it down, but that won’t make 1,000-3,500x more bedrooms magically appear out of nowhere for the same price tag supported on the same foundations… Yes if I scored a zero, my test results would improve, but I still wouldn’t get a 100,000-350,000% score even if I got every single question right…

    Common sense is both a wonderful thing and universally the first casualty of the “RV” scam.

  7. Real Dreamer jg says:

    The dinar gurus keep saying the same < the RV is done done done they want to control the mind of thousands of needed people like me. it is very sad and nobody can stop this brain wash.

  8. Carlos says:

    Oil reserves in Iraq is considered the world’s fifth largest proven oil reserve, with 140 billion barrels. While US has 26.5 billion barrels as of 2011. Anyways, if you think the Iraqi dinar is a scam, good then just don’t invest in it. I remember when people back in 2001 said gold and silver will never go up in value, and look how much it has gone since. Apple’s share was almost worthless when that Pepsi guy was the CEO. Look how much each share is worth now. The bit coin was worth almost nothing when it was introduced, and again look at it now. All im saying is you never know how the future might look, and no im not a “guru”, it just gets frustrating when people get skeptical and call everything a “scam”. Investing in Iraq’s economy is a risk, but I don’t mind “wasting” $200 in Iraqi currency. If nothing happens, I don’t mind loosing that amount. Just buy the amount you are willing to risk. If you don’t risk, how can you win? Again, no one is pointing a gun at you forcing you to purchase the Iraqi dinar. Like all investments, you take a risk.

  9. kev says:

    Carlos: “it just gets frustrating when people get skeptical and call everything a “scam”. “

    LOL. In this case it IS a scam. Amazing how people are still being suckered today even after all these years…

  10. Carlos says:

    Ok Kev, if that is what you choose to believe, I respect that. And you should respect mine. It amazes me how hard members on this site try so hard to prove rong the people who either say they believe Iraq has potential or they bought Dinar. Copying & pasting sentences. O’well, I remember when I bought 12oz of gold in 2001, everyone laughed and said that I’ve been ripped off, that I was better off investing in real-estate or stocks. Guess how much I made when I sold everything at $1631 per troy oz in 2011? I am well aware of Iraq and its current situation, which is why I chose to invest a couple of a hundred dollars and not thousands. And no before you reply, my life is not depending on this revaluation. (which I know very well, there’s a chance it might never happen)

    If you don’t risk, how can you win? Even if the chances are very slim. Also, I didn’t get my interest in Iraqi Dinar from these “gurus”. Saying day by day, revaluation tonight, if not tomorrow, but rather by personal believe that Iraq has potential. Again, before someone replies to this “clueless comment” by coping & pasting my words, calling me a “sucker”. I will not reply, I know if I do, more members will reply and start a debate. Like angry school girls on Facebook… All because I said I purchased $200 worth of Dinars…… Amazing.

  11. kev says:

    It’s not “what i choose to believe” Carlos, it is basic objective fact no different to the equally mathematically impossible pyramid scheme spam I get. Everyone can see it’s a scam except for those sucked into it, most of whom simply don’t want to see it out of blind greed, yet still want to mouth off about stuff they simply don’t understand to strangers on investment forums on the net. And I do not “have” to respect any scam or the lies scammers tell when spinning it whether that meets with your ‘approval’ or not.

    Carlos: “It amazes me how hard members on this site try so hard to prove rong the people who either say they believe Iraq has potential or they bought Dinar.”

    Probably because you haven’t figured out that Iraq Business News is a serious website for grown-ups about tangible investments in Iraq, not another scammer forum like “DinarVets” for the addicts to get their fill of “Hopium” based on “beliefs” or “feelings”. We get sick and tired of scammer morons coming over here treating this like a guru forum, so we hit back – with the truth. Your gold is irrelevant since gold isn’t inflated but with over 85tn IQD in circulation, the Dinar obviously is. You might as well compare an elephant with a light bulb.

    Carlos: “If you don’t risk, how can you win? Even if the chances are very slim.”

    The chance is zero because there is no “300,000% RV”. Deal with it and stop making a fool of yourself.

    Carlos: “Again, before someone replies to this “clueless comment” by coping & pasting my words, calling me a “sucker”. I will not reply, I know if I do, more members will reply and start a debate.”

    Right, because as we’ve all seen before multiple times over – honest fact-based debate is the last thing “believers” want as it takes them way out of their comfort zone, so instead, they resort to “hit and run” troll posts, wanting to talk about it then telling people not to respond in case they read something they don’t like and have no answer to…

  12. Barry says:

    Carlos – “Oil reserves in Iraq is considered the world’s fifth largest proven oil reserve”

    So what? The dinar is neither backed by oil nor oil is even sold in Dinar. At 2.7m barrels exports, Iraq sells about $100bn worth of oil per year. It would take Iraq 2,975 years to sell enough oil to back a stupid $297,500bn “$3.5 RV” – that’s how utterly delusional the whole “oil will back the RV” thing is. Currencies don’t even work that way anyway… Gold, Apple shares, etc, are all irrelevant straw-men since the Dinar is already at its fair market value and simply isn’t “undervalued” by any measure. Nor has gold shot up 350,000% from 2001 to $980,000/oz since 2001… I’ve made over 400% profit on gold too, but the RV scam is still a scam.

    Carlos – “it just gets frustrating when people get skeptical and call everything a “scam”.”

    That’s because the “promise” of turning $860 worth of banknotes into $3.5m on the back of a value-neutral redenomination is just that – a scam. It’s not even a sane argument over what’s “likely” – it simply isn’t possible for a country with $80bn of Forex reserves to “support” a stupid $300,000bn RV – it would totally bankrupt every bank in Iraq within 24 hrs before you even “cashed in” 0.03% of your banknotes. Just like it isn’t possible for you to walk into a Porsche showroom and offer to buy a $50,000 Boxster with just $13. They’d point & laugh at you for even suggesting it. The key issue is people hooked on this stuff are so blinded by greed & the addiction to wanting to “feel special” about “knowing a secret” that they shut down all common sense in favor of blind cult-of-personality guru followings for years on end (whilst protesting “I don’t follow guru’s”)…

    Carlos – “Investing in Iraq’s economy is a risk”

    LOL. Buying $200 worth of hyper-inflated banknotes then sticking them in a sock drawer outside of Iraq where they go nowhere near Iraq’s economy or any Iraqi business isn’t “investing in Iraq’s economy”. This is just self delusion.

    Carlos – “Again, no one is pointing a gun at you forcing you to purchase the Iraqi dinar.”

    You’re right but there are plenty of desperate Dinar “investors” who hate obvious honest facts being pointed out by “naysayers” that debunk the scam and blatant guru lies told as it shatters their “dream” which is why so many spend a lot of time either hanging round heavily censored forums like DinarVets, DinarRecaps, etc, or demanding everyone who disagree “stop posting” to make themselves feel less insecure about their “magic bean investment”… ;-)

  13. SIlvia says:

    Can someone help me out, what if Iraq drops the zeroes from its currency. Won’t Iraqi dinar dealers just offer a service where they would exchange your old dinar to the new dinar? And just wait for Iraq’s growth in the future with its new currency? Btw, no I haven’t bought any dinars.

    Question 2, what is keeping the Iraqi dinar so down ever since the invasion in 2003? Why would Iraq print soo many dinars knowing there currency would become worthless? Did the US force them to print more? Also, the Iraqi dinar when Saddam was alive was worth $3.22 per dinar, ever since his regime fell when the American invasion started, the dinar just fell into nothing. Can someone explain to me why their currency fell soo much? Thanks.

  14. Bo$$1237 says:

    Wow, it is really easy to troll you guys, who cares if someone bought dinars or who did this or not. Its not going to kill you. That carlos guy is just trying to troll, and you Barry, Stew, and Kev, which I presume are moderators of this site, just delete their comments, why listen to those people?

    “We get sick and tired of scammer morons coming over here treating this like a guru forum, so we hit back – with the truth”

    Just delete their comments Kev, on every article you guys have posted, there are plenty of comments going back and forth. You will never make them understand. Just like religion, you just can’t fix stupid & you people aren’t any better. Its not like this site gets any attention -_- LOL

  15. Editor says:

    Readers may like to note that comments from “Carlos”, “SIlvia” and “Bo$$1237″ have all been sent from the same IP address.

    – Editor.

  16. Barry says:

    Thanks for the ‘heads up’ Editor! :-)

  17. Carlos says:

    jaja you caught me, let the world know I typed three comments using three different names. Its not gonna change anything…. If I would have known stating that I purchased $200 worth of dinars would get personal with some people……

    Kev: It’s not “what i choose to believe” Carlos, it is basic objective fact no different to the equally mathematically impossible pyramid scheme spam I get. Everyone can see it’s a scam except for those sucked into it, most of whom simply don’t want to see it out of blind greed, yet still want to mouth off about stuff they simply don’t understand to strangers on investment forums on the net. And I do not “have” to respect any scam or the lies scammers tell when spinning it whether that meets with your ‘approval’ or not.

    Carlos: “It amazes me how hard members on this site try so hard to prove rong the people who either say they believe Iraq has potential or they bought Dinar.”

    Probably because you haven’t figured out that Iraq Business News is a serious website for grown-ups about tangible investments in Iraq, not another scammer forum like “DinarVets” for the addicts to get their fill of “Hopium” based on “beliefs” or “feelings”. We get sick and tired of scammer morons coming over here treating this like a guru forum, so we hit back – with the truth. Your gold is irrelevant since gold isn’t inflated but with over 85tn IQD in circulation, the Dinar obviously is. You might as well compare an elephant with a light bulb.

    Carlos: “If you don’t risk, how can you win? Even if the chances are very slim.”

    The chance is zero because there is no “300,000% RV”. Deal with it and stop making a fool of yourself.

    Carlos: “Again, before someone replies to this “clueless comment” by coping & pasting my words, calling me a “sucker”. I will not reply, I know if I do, more members will reply and start a debate.”

    Right, because as we’ve all seen before multiple times over – honest fact-based debate is the last thing “believers” want as it takes them way out of their comfort zone, so instead, they resort to “hit and run” troll posts, wanting to talk about it then telling people not to respond in case they read something they don’t like and have no answer to…

    Barry: Carlos – “Oil reserves in Iraq is considered the world’s fifth largest proven oil reserve”

    So what? The dinar is neither backed by oil nor oil is even sold in Dinar. At 2.7m barrels exports, Iraq sells about $100bn worth of oil per year. It would take Iraq 2,975 years to sell enough oil to back a stupid $297,500bn “$3.5 RV” – that’s how utterly delusional the whole “oil will back the RV” thing is. Currencies don’t even work that way anyway… Gold, Apple shares, etc, are all irrelevant straw-men since the Dinar is already at its fair market value and simply isn’t “undervalued” by any measure. Nor has gold shot up 350,000% from 2001 to $980,000/oz since 2001… I’ve made over 400% profit on gold too, but the RV scam is still a scam.

    Carlos – “it just gets frustrating when people get skeptical and call everything a “scam”.”

    That’s because the “promise” of turning $860 worth of banknotes into $3.5m on the back of a value-neutral redenomination is just that – a scam. It’s not even a sane argument over what’s “likely” – it simply isn’t possible for a country with $80bn of Forex reserves to “support” a stupid $300,000bn RV – it would totally bankrupt every bank in Iraq within 24 hrs before you even “cashed in” 0.03% of your banknotes. Just like it isn’t possible for you to walk into a Porsche showroom and offer to buy a $50,000 Boxster with just $13. They’d point & laugh at you for even suggesting it. The key issue is people hooked on this stuff are so blinded by greed & the addiction to wanting to “feel special” about “knowing a secret” that they shut down all common sense in favor of blind cult-of-personality guru followings for years on end (whilst protesting “I don’t follow guru’s”)…

    Carlos – “Investing in Iraq’s economy is a risk”

    LOL. Buying $200 worth of hyper-inflated banknotes then sticking them in a sock drawer outside of Iraq where they go nowhere near Iraq’s economy or any Iraqi business isn’t “investing in Iraq’s economy”. This is just self delusion.

    Carlos – “Again, no one is pointing a gun at you forcing you to purchase the Iraqi dinar.”

    You’re right but there are plenty of desperate Dinar “investors” who hate obvious honest facts being pointed out by “naysayers” that debunk the scam and blatant guru lies told as it shatters their “dream” which is why so many spend a lot of time either hanging round heavily censored forums like DinarVets, DinarRecaps, etc, or demanding everyone who disagree “stop posting” to make themselves feel less insecure about their “magic bean investment”… ;-)

    Are you guys serious? All that just because I said I bought $200 worth of dinars? If that amount offends you fellow web surfers, im am very sorry.

    Btw, metenze el deditiz por el fufuru alv :D

  18. Stew says:

    No one cares how much money you invested Carlos/Silvia/Bo$$. What people care about is you are lying and misinforming people about the Iraqi dinar which may lead others to waste their money in this scam.

  19. Carlos says:

    Fellow people of the world, do not buy Iraqi Dinar. It is all a big scam, you are wasting money. Stay away from it, listen to Stew, Kev, and lets not forget about Barry. Telling the truth since 2003 :D

  20. Stew says:

    IBN should probably run a story on the front page about this.
    http://www.bbb.org/us/article/foreign-currency-scam-is-a-bad-investment-43607
    Better Business Bureau:
    Foreign Currency Scam is a Bad Investment

    Looking for a safe investment? Don’t fall for promises of fast cash by investing in foreign currency scams.

    How the Scam Works:
    The advertisement promises an easy investment with high return and low risk. With only $5,000 (or a similar sum), you could purchase Iraqi Dinar, Vietnamese Dong or, most recently, the Egyptian Pound. When those governments revalue their currencies, increasing their worth against the dollar, you just sell your Dinar, Dongs or Pounds and cash in.

    It sounds like a great investment, but it’s a scam. The hoax is so appealing because, unlike previous forex (foreign currency exchange) scams where victims were given a bogus “receipt” for their money, you can actually purchase these currencies. The problem is that they will be very difficult to sell, and it’s extremely unlikely they will ever significantly increase in value. Many experts have explained why the investment promises are false.

    The Iraqi Dinar is the most popular currency used for the this scam. But given recent political upheaval in Egypt and the growth of the Vietnamese economy, these currencies are also gaining traction.

    If you believe you are a victim of foreign exchange fraud, please file a complaint with the US Commodity Futures Trading Commission either through their website or by calling 866.366.2382.

  21. Stew says:

    Here’s another story IBN should have on the front page.
    http://www.bbc.co.uk/news/blogs-trending-26187471
    #BBCtrending: #Wearethepeople and the ‘fraudulent’ dinar ruse.

  22. Editor says:

    @Stew: thanks for the tip, that is now on IBN:
    http://www.iraq-businessnews.com/2014/02/18/the-truth-behind-wearethepeople/

    – Editor

  23. Andy says:

    Dinar is SCAM…the same goes to all the world currencies.
    Dinar may added a fewe zeros, some other curremncies added a trillions more copies.

    Is there any currecy currently based on its actual value?

    Knocking off 3 zeros on the Dinar….Why? It has Huge Oil reserve, Gold, Poppy, surplus in BOP. If that has to happen, some other currencies will have to either revalue downward 30% to 50% or remove 2 or morre zeros along the way too.

  24. Barry says:

    Andy – “Is there any currecy currently based on its actual value?”

    Yes, the Iraqi Dinar! With 85tn Dinar printed but only $80bn CBI reserves, a rate of under 1000:1 IS its fair market value (as is obvious to all those not sucked into the “RV” scam…) :-D

  25. Andy says:

    1000:1 ratio is Fiction.
    USD,€,£,$, those which are strong
    In its current exchange value will all
    be reversed. € may be vanished
    post RV, if there is one.
    Could be Replaced by German
    Notes.

    Anyone who has spare cash and
    hoping to hit jackpot, bet only
    Weak value currencies.

    i.e: Rupiah. Back in 1997.
    Ratio was IDR 16,000:USD1
    Before 1991: IDR888:USD1
    Up to 2010 to 2012
    Ratio IDR 8,700 to 9,000:USD1
    Currently, IDR 12,000: USD1

    Even without the RV, it is still a better
    bet. Many followers made so much profit
    back in 1998.

    Dinar..don’t understand. But no harm to
    Collect a chunk of the notes.
    The only opportunity loss is
    Those who bought way back in 90s
    and those bought a week ago.

    Good luck.

  26. Barry says:

    1000:1 fair value is fact. Deal with it:-

    “A report on Monday by the International Monetary Fund (IMF) suggests that the Iraqi dinar is currently fairly valued at 1170 dinars to the US dollar

    It’s called “inflation” Andy, and is the one single thing Dinar “investors” are utterly clueless about. You might want to look it up yourself:-

    Iraq - “Between 1987 and 1995 the Iraqi Dinar went from an official value of 0.306 Dinars/USD (or $3.26 USD per dinar, though the black market rate is thought to have been substantially lower) to 3000 Dinars/USD due to government printing of 10s of trillions of dinars starting with a base of only 10s of billions. That equates to approximately 315% inflation per year averaged over that eight-year period.

    Vietnam - “Vietnam went under a chaotic and hyperinflation period in late 1980s, with inflation peaking at 774% in 1988, after the country’s “price-wage-currency” reform package led by Mr Tran Phuong, then Deputy Prime Minister, had failed bitterly. Hyperinflation also characterizes the early stage of economic renovation, usually referred to as ‘Doi Moi’, in Vietnam.”

    Indonesia - “Rampant inflation, which was 27% in 1961, but jumped to 174% in 1962, by 1965 was 600%, had seen the largest denomination banknote increase 100-fold, from 100 rupiah in September 1959, to 1000 rupiah in May 1960, to 5,000 in October 1963 and finally 10,000 rupiah in August 1964. By 1992, the rupiah was worth less than one fifth of what it had been worth when the 10,000 rupiah note had been introduced in 1970, and so a 20,000 rupiah note was produced, then the largest note ever seen in Indonesia.

    In August 2010 Bank of Indonesia proposed to redenominate the rupiah by truncating the last three zero digits (dividing by 1000). The redenomination is meant to simplify daily transactions, which often run into millions of rupiah. It would reduce the exchange rate with the US dollar from about 9,000 rupiah to 9. Bank of Indonesia Governor Darmin Nasution immediately announced that the planned redenomination of the national currency would not inflict any financial losses as the measure would only strike a few zeros from the current denominations.”

    There’s nothing funnier that watching someone who’s panic-bought the world’s 5 most hyper-inflated currencies on the back of false hype from a few conmen, trying to “explain” how sustained triple-digit inflation ‘has nothing to do with their low value'”. :-D

    Andy – “those which are strong In its current exchange value will all be reversed”

    Nothing more than cut & paste gibberish delusions from “GCR” / NESARA conspiracy forums almost completely divorced from reality… And why in God’s name would an Iraq peg adjustment of the Dinar vs the $ cause the Euro to “disappear”. If the Euro vanishes it’ll be because of the economic issues inside Europe, not because Iraq redenominates. LOL.

    The same people pumping the Dinar have also been pumping the Vietnamese Dong and that has FALLEN 25% since, which is presumably why you didn’t mention that… Just because it has 3-4 zeros after it doesn’t mean a currency is undervalued

    Back in the real word:-

    Iraq’s money supply is 85tn Dinar
    Vietnam’s is 3.5 QUADRILLION Dong.
    Indonesia’s is 3.7 QUADRILLION Rupiah.

    etc, etc.

    Gee, isn’t it “strange” how all these countries with weak currencies have enormous hyper-inflated money supplies? I mean – It’s almost as if printing more money causes your currency to fall in value!… I’m sure you’ll wake up and grasp the obvious eventually, Andy. If not, don’t feel too bad, there are quite a few deluded people who think 5-10% Western inflation is “bad” but 100-800% Eastern inflation is “a sign of undervalued hidden wealth”… ;-)

    Andy – i.e: Rupiah. Back in 1997.
    Ratio was IDR 16,000:USD1
    Before 1991: IDR888:USD1
    Up to 2010 to 2012
    Ratio IDR 8,700 to 9,000:USD1
    Currently, IDR 12,000: USD1

    Indonesia’s 25% appreciation 16,000->12,000 that’s taken 15 years (1997-2012) to achieve works out to an annual compound interest rate of just 1.9%. That’s pitifully poor in the Forex market. In fact it’s less that a risk-free long-term fixed deposit in A high-street bank account (which for 2/3rds of that period (1997-2007) were over 4-5%)…

    This is the second delusion of Dinar investing – you quote your 25% return but not the 15-20 years it’s taken to achieve that. Or the 15-20% typical buy/sell spread you had to pay to buy them in banknotes form (the worst possibly way of speculating on any currency). An absolute 25% return in one year is great. A 25% return over 15 years (1.9% per year on a high-risk Forex investment is a joke). A 25% return over 15 years with a 15-20% buy/sell spread barely breaks even…

    Same with the Dinar – buying at 1460:1 10 years ago with a 15% premium ($780) and selling at 1166:1 today (cash in typically $830) = a “whopping” $50 profit over 10 years ($5 profit per year). “Impressive” :-D

  27. jim says:

    predicting the Iraqi dinar is predicting the seconed coming of Jesus. however both will happen. Jesus will come first.so don’t put your trust in monitary things.

  28. Paul (@specificproduct) says:

    Barry, Stew, and Kev, which I presume are moderators of this site
    LOL

  29. Editor says:

    @Paul: Barry, Stew and Kev have no connection with Iraq Business News.
    – Editor.

  30. Stew says:

    Crap. I thought I might be entitled to some back pay.

  31. Paul (@specificproduct) says:

    @Editor I know that’s why I said LOL


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