Iraq’s Central Bank announced on Tuesday that the project to re-denominate the Iraqi Dinar, removing three zeroes, is close to completion.
According to the report from Alsumaria TV, the re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.
A Central Bank’s advisor, Mothahhar Mohammed Saleh, said in a statement to the agency that the plan aims to reduce transactions costs and help people carry less money.
Iraq’s central Bank has managed during the past five years to reduce inflation rates from 34% to 3 or 4% and stabilize Iraqi Dinar exchange rate, he said.
In an earlier statement to Alsumaria News, he confirmed that the bank plans to remove three zeroes from the Iraqi Dinar, noting that the zeroes which were added to the Iraqi currency previously constituted a large money supply estimated at 27 trillion Iraqi Dinar.
Saleh revealed on the other hand that Iraq engages for the first time in banks payment system as it moved from manual to electronic clearance. The system includes six banks in addition to electronic deeds exchange, he said adding that the smart and credit cards will be bound to the central bank system.
Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar "which the government has hopes high on it".
(Source: Alsumaria TV)
This would be awesome if I made some money....just sayin
Stew, I know, I know. lol
LOL... Andy... it will be awesome if you just don't lose any money.
so what really happens if they loose the 3 .. 000s
lower doms?
higher doms? who out thier knows?
I think this is positive news.I'm just glad my dinars are in the ISX and Iraqi banks..Heck I'd be tickled pink with a 10th of a penny increase..
what isx? peter ?
Hi 'B' .The ISX is The Iraqi Stock Exchange..It's up huge so far this year..with a lot more to come..love it!!
Go to http://www.Rabeesecurities.com for a taste.Enjoy ;-))
Here is a question for the RV to $1 or more crowd.
Iraq has 28 trillion dinar and you think they can RV to $1
So... after they lop, remove 3 zeros and they have 28 Billion dinar... will you buy a ton of it and wait for it to RV to $1000 per dinar.
Cuz that's exactly what you are expecting right now.
thanks guys..go dinar
why havnt i recieved my dinars yet...ordered them from 5/3rd over a week ago...why the delay for only currency?
fantastic!
About 80 times in the last 30 or so years countries have "deleted zeros".
In every single instance of that... it was a lop.
Not one single instance of deleting zeros has ever been a big RV like the scammers are claiming.
To think this is a big RV you have to believe Iraq has been pre-announcing a big 100,000 RV to the world, weeks, months, years in advance.
Countries deny and lie about increasing their currency value 1 or 2 percent. Why is Iraq being so nice to announce to the world a 100,000% increase?
This will not be any different than all the other instances of deleting zeros.
The Lop cometh.
It is ridiculous to think that Iraq would let everybody know that they are going to increase the value of their currency. Traders would be buying dinar like crazy. And what would that do? First they would be printing more and then It would drive the price Down not up and spur inflation that would send them directly back to the zero's only this time adding a few more.
Not to mention what if the price of oil goes down like it did in 2008. They have nothing to sell to the world except Oil!
There are approxmitaly 28 trillion dinar in circulation. Do the math, an rv of even a few cents if not feesable.
Stew is correct, a lop is coming and it will not change the value of the dinar. If they keep a stable GOI, if they rebuild their infrastructure, if they boost their agriculture, if they reduce thier unemployment, they might raise in value over time. There are a lot of If's.
Is it possible they could rv to the dinar to 10 cents?
This makes no since to me... The 25000 dinar note will now be worth less than the 500 dinar note, seems to me this could create an uprising if this happens. I know there are few Iraqi citizens with 25000 note but...
Hi LZ,
I feel that is entirely possible..very realistic..i'd be VERY happy with that..(just don't ask mister negative that question..haha..
enjoy..love light and truth ;-))
PS ;LZ
I find the last statement in the article particularly interesting..can anyone say "smoke screen "..or " dis-info "..that the optimists view..but again gang,,,, we all know what the pessimists view would be..just ask St**...hehe..funnnnnn ;-)))))))
classic dinaraholic/pumper behavior. Anything that doesn't sound good has to be a smokescreen.
Have you seen the latest dinar news story out today. Talking about restructuring the dinar. They state that they are going to the same thing Turkey did, except Turkey deleted 6 zeros.
Turkey lopped... it was no RV at all.
But I guess it's more smokescreen.
They are really saying 100,000 RV... riches for averyone!!
anyone that thinks iraq is gonna lop their money is an idiot your gonna tell me that one guy has a 25,000 note and another guy has a 50 dinar note and they drop the three zeros and the guy with the 50 is gonna have more money get real they have to rv if they want to do all the crap they are needing to do as well as join the wto!!
and another thing countries lop there money also when they have hyperinflation and iraq does not have that!!!
Classic... you have no clue how a lop works. ALL currency will be exchanged, not just the large notes. Every lop in the history of lops has done it that way. Plus... lops are done to erase the effects of PAST inflation. A lop has nothing to do with current inflation. Iraq suffered MASSIVE inflation during the late 80's and ninties.
You might want to be careful throwing the word “idiot” at others when your ignorance on the subject can only be described as staggering.
Raising of the 3 zeros actually means off the nominal value which right now is .00086, that is what 1 dinar is worth at this moment, less than 1/1000 of a US dollar. After they remove the 3 zeros the new value of a dinar will be .86, 86 cents to our dollar. It DOES NOT mean they are removing 3 zeros from the actual paper money, that is totally ridiculous and would be impossible to do. The face value of the actual paper note will not change, if that were the case Iraq would have to print brand new paper notes and all the notes that are in circulation right now would be worthless.IT IS OFF THE NOMINAL EXCHANGE RATE. .00086 now will be .86
Yes Evan... countries always discuss openly for years their plan to increase the value of the currency 100,000%.
(sarcasm off)
Why do you say it's impossible and ridiculous?? In the last 30 or so years countries have done exactly what you claim to be impossible over 80 times.
Yet... this 100,000% RV you see happening. Nothing even remotely close to that has ever happened even once. I have never heard of any currency RVing more than 1 or 2 percent... and countries lie and do their best to hide those increases.
[...] claim that a redenomination of the Iraqi currency will have important economic effects. (See this story.) Replacing all the dinars currently in circulation with new ones at a rate of 1,000 to one, [...]
Stew, I think you interpret what I wrote backwards. Iraq has indeed approved the raising of the zeros which is very good as it states in the above article, They have also printed new currency back in 03-04, to remove Saddam's picture and to add many new security features so that the new notes are now very hard to counterfeit. Since they designed the new currency only a few years ago after the old Regime had fallen I think it would certainly be ridiculous at this point in time to do that all over again....
By the way Peter, how many different stocks do you own on the ISX, I recently bought Coca-Cola. Investing in the ISX will make you $$$. After I cash in my Dinars I intend to invest heavily in Iraq.
What are you people smoking? The actual paper currency will not physically be altered. Eliminating 3 zeros MEANS OFF THE EXCHANGE RATE ONLY FOLKS. .00086 NOW BECOMES .86 THE SAME EXACT DINARS WE HAVE NOW WILL EXCHANGE AT A MUCH BETTER RATE AGAINST THE US DOLLAR. The govt of Iraq will NOT be collecting all the paper currency in Iraq and abroad and then turn on the printing presses to make new dinars to trade back to every individual who currently holds Iraqi currency. The currency we hold now will not become worthless either.Most of us have no trouble understanding that changing the units used to measure something does not change the character of the thing being measured.
thats ok stew ill be laughing all the way to the bank!!!
i agree with evan they arent gonna drop the zeros off the actual currency either too costly to change their currency duh!
Hi Evan,
I own about 30 dif companies on the ISX..A good broker you can use is Rabeesecuriries.com but they do impose a 100k minimum for new clients.
I've been in since early Nov...very happy..It looks as if the big run up has taken a breather over the last month,it has consolidated/corrected some of the froth into what is starting to appear as a bullish pennant,very nicely,,so we may be setting up for the next leg up..which suits me just fine..I think we can easily see 100% this year from here..
Get in on the ride..I doubt you'll regret it..
Evan... They have specifically stated in a number of the articles that they will print a new currency and add the Kurdish language to it. Did you miss that part?
Rich, you are on a roll. After showing you don’t have the basic knowledge of what a redenomination/lop is or does…. You now parrot one of the most ridiculously stupid claims in all of dinarland… and there are a lot of stupid claims, but that I think is the topper.
You claim that it’s too costly to print a new currency… yet somehow they can afford to RV the current dinars 100,000%. They would have $28 Trillion worth of dinar in circulation… that’s hilarious.
Plus… even if they could afford this fantasy RV like you think… they would still have to print new currency and distribute it.
Iraq will lop. To "Rich" (the guy who claimed Iraq didn't suffer from inflation) you are joking right? The Iraq Central Bank has openly admitted Iraq's inflation was over 30% for literally years, and the reason for that is obvious - if you can't buy, sell or borrow (due to economic sanctions / embargoes) then the only thing left to do is print. That's why the Dinar is so weak - it has been massively inflated under Saddam. Proof of that lies in the fact the obsolete "Swiss Dinar" (used in the Kurdish North of the country) wasn't inflated and was much closer priced to the $. It's all down to inflation - just like every other country that prints too much money. Stew is absolutely correct on this issue.
What will happen is this : three zeroes will be "lopped" off and old (current) notes exchanged for new at same ratio. If you've bought $1,000 worth of Dinar's at 1170:1 (1.17m Dinars), they'll be exchanged old for new at 1000:1 (you'll get back only 1,170 Dinars) but they'll be worth 1,000x more (1.17:1). You won't lose any money (other than trading fees / commission, etc), but you certainly won't make $1m just from changing $1,000 worth of Dinars into $1,000 worth of $, any more than you'd make €166,000 from changing 166,000 old Spanish Pesetas into €1,000 (at set 166:1 rate) during the 2004 Euro RV process. Common sense tells you the cashier isn't going to hand you $990,000 for nothing, any more than the entire population of Turkey suddenly became millionaires when 6 zeroes were lopped off the Lira and they swapped a 1200000:1 exchange rate for a 1.2:1 one!
This process is nothing new and has happened literally dozens of times around the world:-
http://en.wikipedia.org/wiki/Denomination_(currency)#List_of_currency_redenominations
Mike... this was in a congressional report on Iraq that the link no loger works for... but this was copy pasted it from it.
(http://www.export.gov/iraq/pdf/crs_iraq_economy.pdf).
“This report was originally prepared at the request of the Senate Committee on Foreign Relations. With the Committee's permission, it is being made generally available for the use of Members.”
During the 1990s, a period of hyperinflation occurred. The government continued to print money to meet expenditures while economic sanctions shut off the supply of imported goods leading to a classical monetary overhang. A yearly inflation rate of upwards of 2,000% per cent was reported in open market food prices between 1990-1991.36 Another source estimated that inflation increased 5,000% between 1990and 1995.
shabibi said yesterday their inflation rate right now is around 5% so that ends your theory mike and stew i dont mean to come off like a butthead im really going off what alot smarter people than me are saying they ae saying that iraq wont lop they are saying their gonna lift the three zeros off the numeral rate and then raise the value of their money so i apologoze to ya stew
Rich... the people telling you that are scammmers. They are the same people that have been lying about weekly RVs for the last 5 or so years. Why on earth would you believe these people?
Again... you are not understanding why and when a redenomination/lop happen. They are done to remove the effects of PAST inflation. Iraq suffered MASSIVE inflation in the past which is evident by the huge denominations they have... and the reported 28 trillion dinar in circulation. They have inflation under control now... so it is the PERFECT time to redenominate/lop. Russia did it that way. Turkey did it that way. Both got their inflation under control before lopping. Many countries have done it that way and it is the much prefered way to do it.
Yes... There are examples of countries redenominating/lopping while inflation is high. Zimbabwe is an axample of that. They had to because the notes grew so huge they had no other choice. They didn't address the cause of the inflation so they ended up lopping 3 times. Eventually they just gave up on their currency and decided to use foriegn currency. That obviously is NOT the preferred method.
"shabibi said yesterday their inflation rate right now is around 5% so that ends your theory mike and stew"
I'm talking about past inflation which is what caused the value to have already dropped. Low current inflation now just means the Dinar won't plummet even further away from the $ (2000:1, 3000:1, etc), not that inflation didn't cause it in the first place:-
"Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars."
http://www.exchangerate.com/iraq_currency_exchange.html
Just to add to above comment, why do you think Iraqi rent costs of an average Iraqi home is currently around 250,000 Dinar per month and bread between 150-250 Dinar bought with 25,000 Dinar banknotes if there hasn't been rampant inflation? If the Federal Reserve printed enough money that the price of bread rose to $250 and Americans carried $25,000 banknotes, would you say "there is no inflation" too?
Iraq's chronic hyperinflation is quite obvious and well documented, and is no different to other countries such as Turkey, Venezuela, Argentina, Germany, etc. Yes they'll get it sorted and under control, but as I said previously, no-one's going to be given $1m for $1k worth of currency. That's not how "cutting zeroes" / redenominating works at all.
i will tell u this..every counrty that5 has invested will not loose money on this,i promise u ..if they come out and people loose even 1 dollar it will be wwIII..dont think so guys.think about it !!!!
B... what country has invested? There is not one single shred of evidence that shows even one country has even 1 single dinar.
That whole line of thinking is nothing but dealer/pumper hype.
A lot of countries do foolish things with their money... but none are so foolish to have bought dinar waiting for a big RV.
Stew,
Its just impossible to get through to the ''Dinaraholics''.The pumpers have them so brainwashed into thinking that the IMF wont allow Iraq to Lop or you need hyperinflation to lop. The Dinaraholics spend countless hours reading all these nonsense chats and posts with Medic, Mailman, Frank, Okie, Nightkick,etc. According to Okie,Its gonna RV Thursday....
So here is my question... How will the pumpers react and spin their stories when Iraq does Lop?
hey mike and stew i do appreciate your takes on why you think their gonna lop but i personally dont listen to all those pumpers i know what you mean i actually only listen to a few very conservative people and even they say iraq is not gonna lop shabibi has even said he wants to raise the value of the dinar and from what i hear our own govt. has triliions of dinar and i do remember george bush saying we will not pay for this war alot of countries are relying on iraq to rv their money and especially their own people.
Hi Rich. Killing three zeroes / redenomination IS a lop. It's the same thing as many, many other countries have gone through:-
http://en.wikipedia.org/wiki/Denomination_(currency)#List_of_currency_redenominations
"lop" is just slang speak for redenomination. It's not an "RV" at all (in the sense of say revaluing a long-term gold-pegged currency during the process of being depegged from the gold standard and free-floated on the Forex market), it's a redenomination like Turkey, etc, went through. The Iraqi central bank have stated very clearly and very plainly this is what's to happen:-
"Iraq’s Central Bank announced on Tuesday that the project of Iraqi Dinar *re-denomination* consisting of removing three zeroes is close to completion. The *re-denomination* project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete."
http://www.alsumaria.tv/en/Economics-News-Iraq/3-62912-Iraq-Central-Bank-to-remove-three-zeroes-from-Iraqi-Dinar.html
Highly respected *professional* currency trading sites with *genuine* rolling Forex news (not trash talk rumor invention sites by posers and conmen) have also clearly stated this:-
"In 2010, the Central Bank of Iraq announced their plans to redenominate the Iraqi Dinar to ease cash transactions. The intention would be to drop three zeros from the nominal value of bank notes; but the actual value of the dinar would remain unchanged. That would mean that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) would both be worth the same amount in US Dollars"
http://www.xe.com/currency/iqd-iraqi-dinar
"Raising the value of the Dinar" doesn't mean there won't be a "lop", it simply means that as zero's get "lopped" off, people are psychology more likely to trade it and thus it may naturally appreciate vs other currencies by a small amount 5-30% over a period of years as some currencies have done because of that. It certainly doesn't mean an outrageous and mathematically impossible 1,000x fold (99,900%) RV / purchasing power increase overnight.
As to the rest of your comments, Bush's "we will not pay for this war" has more to do with the neocons plans to basically steal Iraq's oil. And the other comment "alot of countries are relying on iraq to rv their money and especially their own people" simply is not true. Countries aren't trading the Dinar at the moment, and do not hold any significant reserves of Dinar's anywhere. As far as foreign held FX reserves are concerned, 61.4% is the US $, 26.3% is the Euro, 4% is the £ British, 3.8% is the Japanese Yen, 0.1% is the Swiss franc, and the 4.4% left is literally all other currencies of all other +160 countries combined.
Countries do not hold large sums of Iraqi Dinars any more than they hold large sums of the Algerian Dinar, Albanian Leks, or Iranian Rials, etc. All third-world currencies combined make up <1% of FX reserves held by most nations. In fact, the total number of Dinar's outside Iraq is estimated to be barely $6bn - nothing more than a barely visible rounding error to most nations. And as far as oil is concerned, it's not purchased in Dinars - it's purchased in dollars. That's where the term "petrodollar" comes from and is yet another misconception by the Dinar "experts" that selling oil will automatically boost the Dinar. All this "the world is waiting on the Dinar" is just another recirculated lie, hyped and hugely misunderstood "pumper rumor".
There have been 49 countries which have so far removed zeroes from their currency. These include Brazil (who removed 18 zeroes in 6 operations), Argentina (who removed 13 zeroes in 4 operations) and Poland (who removed 4 zeroes in 1 operation). In particular, Turkey removed six zeroes in January 2005 when they introduced the New Turkish Lira (YTL), and nobody became millionaires because of it. This is the honest factual truth without putting anyone down personally.
"Its just impossible to get through to the ”Dinaraholics”. The pumpers have them so brainwashed into thinking that the IMF wont allow Iraq to Lop or you need hyperinflation to lop. The Dinaraholics spend countless hours reading all these nonsense chats and posts with Medic, Mailman, Frank, Okie, Nightkick,etc. According to Okie,Its gonna RV Thursday…." - LZ
Indeed:-
"[OKIE_OIL_MAN] THE 27TH STILL LOOKS LIKE AN OPTIMUM TIME BUT IT MAY OCCUR PREVIOUS TO THAT" - March 22nd 2011
"[OKIE_OIL_MAN] i don’t do time—will occur at any time from now thru tomorrow evening our time. no need for further calls–all is settled and done" - Feb 13th 2011
"[OKIE_OIL_MAN] more confirmation coming in from many sources–looks like monday will be a day that will be really busy if your a banker. you guys–screw your heads on straight–monday will probably be the 1st opportunity to cash in—-geeeessssshhhh. its all done–what more is to be said. he filled the positions yesterday. everything done yesterday" - Feb 3rd 2011
"[OKIE_OIL_MAN] Hearing no later than Wednesday or Thursday. signed off on RV yesterday Shabibi ordered to Parliment meeting today we are 48 hrs. oil production goes into affect on Feb 2.. has to happen before then This source is very very good..." - Jan 31st 2011
Much of this "I'm part of some ultra-secret intelligence group with top-level 'sources' and here's the latest 'intel'" stuff in reality, is little more than a bunch of posers pretending to be something they aren't, and inventing rumors to keep people who bought some Dinar's both confused as to how the process (and Forex in general) works and hooked into an unhealthy mental state of permanent excited anticipation.
mike i appreciate your info and believe me im not one of those people that believe his crap as well as other pmupers out there i know where your coming from lol im gonna see if i can get this one guy to address your concerns maybe he can do a better job of responding as to why iraq is not gonna lop but i do enjoy our conversations with you and stew lol!
Rich... you say that, yet everything you have said on this board is straight out of the mouth of dinar pumpers.
Your info on lops was made up lies from pumpers.
Your belief that a new currency would be too expensive while saying a 100,000% RV is right around the corner obviously came from the scammers.
Your belief that the US has Trillions of dinar is pure pumper fantasy.
None of your points so far come from any kind of independent research. Everything you have said was made up by dinar scammers.
So... "this one guy" that you'll get to explain this... is this one of the same guys that has supplied you with the knowledge you already have?
Hi Rich. By all means talk to your friend, but as I said, the "re-denomination" quote came straight from the top of the Iraqi Central Bank - the people who are in charge of the whole process - on Tuesday April 12th. When they call it a "lop" (re-denomination) and do it repeatedly, the only thing left to argue about is the psychology of denial.
everyone keeps saying :look at what turkey did: well keep looking cuz i believe thier cur.didnt bottom out or have 15-20 years of war and needed team america(world police)lol...to help out. what is hppening is in a catigory all by itself...do not try to compare because nothing else can come close...40yrs from now best belive whats happing now will be in history books at schools around the globe...
B... don't believe us when we say they will do as Turkey did.
But read this.
http://currencynewshound.wordpress.com/2011/04/16/cbi-the-restructuring-of-the-iraqi-currency-inflation-fit-the-cash-block/
Last paragraph.
"To that, the adviser to the Central Bank of the appearance of Mohammed Saleh, said that such fears are unwarranted, and that the economic situation in Iraq is good and able to withstand the application of this project, and that this experience had previously been applied in countries such as Turkey, which has by deleting six zeros from the currency before the period is not too distant future."
You might want to believe it when the CBI rep says they will do as Turkey did.
Stew I completely agree with you. However I do the the math LOP( 1000 IQD = $1) is gonna happen(Real Truth)
I spent lot of time in reading msg boards, waste of time and energy..
Absolutely right Stew. People keep throwing out the same old "Iraq is special" pumper disinfo, and yet the Iraqi Central Bank themselves have openly stated they're modelling their RD (not RV) lop process on next-door-neighbour Turkey. All of these "never happened before", "Iraq hasn't suffered from chronic inflation", "Don't look at Turkey" claims have already been totally and thoroughly debunked by the Iraqi Central Bank themselves! The only real issue is that people who've been suckered into believing there's a suitcase with $1m notes just heading their way for just changing up $1k worth of banknotes during a non-unique been-done-dozens-of-times-before based-on-Turkey re-denomination process simply don't want to believe it, and choose to keep the lies, invented rumors and disinfo flowing out of blind greed.
For those in any doubt that the reason the Dinar is so weak is because of inflation (overprinted), here's a serious reality check:-
USA : There are $10.2tn (last Fed Reserve M3 figures) dollars created from a country (USA) with a population of 310m people of which approx $938bn are banknotes in circulation (M0 figures). This works out to approx $32,903 Dollars per American and $3,025 Dollar banknotes in circulation per American.
Euro : There are €8.5tn (ECB M3 figures) Euro's created from an entire continent with a Euro-using population of 327m people of which approx €840bn are banknotes in circulation (M0 figures). This works out to approx €25,993 Euro's per European and €2,568 Euro banknotes in circulation per Euro-zone European.
Iraq : There are 27 trillion Dinar's created by a very small country (Iraq) with a population smaller than Canada (31m) of which approx 80% (21.6 trillion) are banknotes in circulation. This works out to a whopping 870,967 Dinar's created per Iraqi and 696,744 Dinars of banknotes creates per Iraqi.
To put that bluntly - in absolute decimal terms, Iraq has printed 230x more Dinar banknotes for Iraqi's than the USA's Federal Reserve has for Americans, and 271x more than Europe's ECB has for Europeans.
The above is chronic inflation and is precisely why the Dinar has such a low ratio vs the $ and Euro, and this is why there will be no 1:1 "RV" - it will be an RD "lop" - and yes - it IS due to inflation. The only thing "special" and "unique" about the Iraq situation is the absurd level of disinformation, hype and scamster pumpers playing victims for fools sometimes with outrageous whopping lies such as "governments around the world hold huge sums of Dinars"...
...which takes all of 5 seconds to debunk when you see what they're actually holding in reality:-
http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf
I spent $331 to get 250,000 dinars, If they drop the 3 zeros does that mean I spent $331 dollars for $250 U.S. dollars minus the 35% exchange rate ? Does this mean everyone who bought dinars will take a loss ? My thinking is if 1000 dinar equals 1 US dollar I'm screwed ! Can someone help me out with this, I'm I right , wrong or what ?