Parliament and Finance Cmte Support "Revalue" (sic) of Iraqi Dinar

The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency, according to a report from AKnews.

The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it. The smallest unit of the current Iraqi current is 250 Iraqi Dinars which is equivalent to $0.20.

The removal of three zeros is expected to raise the value of the Dinar as well as facilitate dealing with the currency and the payroll system in the country.

The Iraqi government and the securities committee have raised concerns that the process will negatively affect the Iraqi stock market.

51 Responses to Parliament and Finance Cmte Support "Revalue" (sic) of Iraqi Dinar

  1. Stew 27th June 2012 at 07:23 #

    The term revalue is often used when talking about redenominations/lops.
    The current dinar is worth $.00085. The new dinar will be worth $.85
    Pretty easy to see why it might be described as a revalue. In this case they even specifically state it will be revalued by removing 3 zeros.
    So this is eaither a standard 3 zeros lop... or Iraq is announcing to the world they will revalue their currency %100,000 early next year.
    The slightest bit of common sense should tell you which one it is.

  2. Evan Kurtz 27th June 2012 at 11:01 #

    You are a pessimist Stew, open your eyes. Maybe you can't afford to buy any dinars for yourself, or maybe you are an employee at the CBI. "The slightest bit of common sense should tell you which one it is."

  3. Stew 27th June 2012 at 16:20 #

    Yes. Incredibly pessimistic of me to not believe Iraq is announcing a 100,000% revaluation of their currency in advance.

  4. 2collect 27th June 2012 at 19:50 #

    hey stew i bought this stuff for a PENNY just want to sell mine back for a DIME!!!

  5. Stew 27th June 2012 at 20:16 #
    “Turkey carries out currency revaluation.”
    “In response to rampant inflation and ever-confusing prices, Turkey revalued its currency in 2005, dropping 6 zeroes. One million Turkish Lira became 1 Yeni Türk Lirası”
    “Russia plans to revalue the rouble”
    note: in 2007 Ghana revalued its currency with 10,000 old cedis equal to 1 new cedis
    Zambia revalues kwacha by removing three zeros
    North Korea revalues and replaces currency

    These are all lops. I could go on and on but I hope you get the point. Go to a search engine. Type in the name of any country that lopped along with revalue, currency, and zeros.
    Ex. “Turkey revalue currency zeros”
    EVERY country that lopped will have articles that used the term “Revalue” do describe it.

  6. Kaperoni 28th June 2012 at 00:18 #

    Stew, you may want to read Dr. Bakri's paper on Iraq....He says matter of factly there are two choice for country after a time of war...

    1. replace the entire currency with new lower denominations

    2. remove the zeros from the current currency (LOP)

    He says the current administration has decided (not guessing here) to do a change in currency.

    Therefore, ole pal Stew, there is no LOP, a straight currency exchange and those lucky enough to own the 3 zeros dinar will benefit greatly from the appreciation of the exchange rate.

    BTW, if you don't know the credentials of Dr. Bakri, he is the one teaching the people of Iraq at the various symposiums.

    What are your credentials for your constant bs?

  7. Stew 28th June 2012 at 06:19 #

    So you think this guy is going around Iraq informing people of a soon to be 100,000% increase? And while he’s doing that the street value of the dinar is going down? Iraqis are being told 1000 dinar will soon be worth $1,000,000 and yet no one wants it?
    How do you get people to believe such BS Kap?

    Here is what he said.
    “has proceeded to one of two actions, either you change the national currency or Removing the zeros of them to go back to square economic stability. In the experience of Iraq and after the fall of the previous dictatorial regime has the Coalition Provisional Authority to change the Iraqi currency a new currency, but equal to that in value,”

    He says you either 1. Change the national currency. Or 2. Remove the zeros.
    He then goes on to say that after the fall of Saddam they changed the currency to a new one, but equal in value. That mean they did option one. He then goes on to say they will now remove the zeros. Option 2.
    Once again you have totally misinterpreted what he said. You have misled many people with your lies.

    How are t-shirts, hats, and coffee mugs selling these days?

  8. Thor 28th June 2012 at 10:29 #

    I love a good debate! I haven't done all my homework but i've done a lot of research, my math may be off but Stew how are you coming up with your figure of %100,000 increase? And 1000 Dinar being equal to $1,000,000? A lot of people have spent $1000 to buy 1M Dinar in the hopes that it revalues to $1M but not 1000 Dinar turning into $1M....I'm not trying to bust your chops, i'm just following you and Kaps debate and you mentioned the %100,000 figure twice and i couldn't figure that out so i'm asking you to explain. Please and thank you

  9. Stew 28th June 2012 at 16:38 #

    Sorry Thor. I meant to say 1000 "dollars worth of dinar" becomes $1,000,000 according to Kap.
    That would be a 1000 times increase. That's 100,000%
    up by 1x is 100%
    up by 10x is 1000%
    up by 100x is 10,000%
    up by 1000x is 100,000%

    I would like to hear Kap or anyone who claims the CBI and these economist are telling the world a 100,000% RV is happening in the near future... I want them to explain why the dinar is sinking in value. The street rate in Iraq is below the official rate and they can't figure out how to raise it. If they were pre-announcing a 100,000% RV as Kap claims the street rate would be skyrocketing. The street rate would already be over 50 cents a dinar, because in the real world people will do anything they can to get a sure fire 100% gain. If I thought the current dinars would be worth 85 cents in the near future. I'd be willing to buy every single dinar I could get my hands on for 50 cents a dinar. But for some reason the dinar isn't even worth the 1166 official rate. The street rate is still over 1200 last I saw.

  10. ADRIAN 28th June 2012 at 20:06 #

    Stew, do not worry about chaperoni, everyone knows it is a pumper of the oldest and liar. Chaperoni = Pumper = scammer. they are all trying to get out of what they have in stock before the fall dle dinar.

  11. ADRIAN 28th June 2012 at 20:37 #

    I can not understand that people have in the head to believe that buying dinars is to become a millionaire. Someone other than the 100,000 believe in absurdities they write in the forums and sites that sell dinars has stopped to think what the real situation of residents of Iraq. They have stopped to think that if it were true what they say each of these charlatans distorting news, inventing stories, saying that gurus are geniuses on information from Iraq and they know everything, they have to contact within the cbi, which have more than thousand sites as centers of false information that they themselves have invented to promote sales of the dealers who buy large quantities to the broker, it would make sense that you sold the currency to the Iraqis themselves. Please know that one of the human senses loads a crude cell but we have to use smart to counter it. when people will understand that this was a scam and no one will become a millionaire except the broker and dealers who are already chaperoni and some others. The pumper will already couple of months with the word RESET ...... replaced reassess ... RESET now .... here has its reset. All are wondering where are the feds who still has not been involved with these people who have made a biggest scam of the Madoff and Stanford. Where are the hand feel cramped federal individual under these deceptions were speculating and making up lies to make sales of dinar dinars. For lying to the people even using the word of God. Enough can not keep giving these people more forum to continue deceiving people.

  12. Edward 28th June 2012 at 22:46 #

    I tune in 5 months later and Stew has adjusted the Spew to 2 possibilities. 5 months ago or so it was only 1 possibility a LOP. If any of us have went to the CBI web site, we find that the 250 Dinar note IS NOT the smallest note Iraq has in circulation right now at this very moment. Second the current rate IS NOT a real rate it never changes even when Iraq added 15 Trillion to their existing 15 Trillion.With that said when you don't have the complete numbers and a dirty float is the basis for the current rate, then how can a %100,000 increase be an impossibility for only the pumpers and the gullible to invest in?

  13. Edward 28th June 2012 at 22:54 #

    Explain for me please why the scam has paid me interest into my Iraqi Bank account. I just got paid %3.40 on my money for the first 6 mo's of 2012. How much is being paid on anyones savings account in the USA? the scam is the US Banks my friend. In Iraq I'm making tons of $$$ In the words of Austin Powers "YEAH BABY!!!

  14. Edward 28th June 2012 at 23:06 #

    Very poor reporting in Iraq when the writer or even the CBI official being quoted doesn't know the smallest Dinar note in circulation. I have many 50 Dinar notes right now. This is why anything being reported out of Iraq is so hard to sift through. It does make it hard for investors to take Iraq serious. IMO...

  15. Kaperoni 29th June 2012 at 00:19 #


    Hah! I guess you didnt read Dr. Bakri's paper. Here is the next quote after he mentions the choices...

    “This does not affect the value of the dinar so far but it opens the dinar to the free currency market such as against the dollar, etc.”

    And then he follows that up with this gem...

    “If three zeros were lifted from the IQD, this means the IQD becomes stronger 1000 times in terms of value.”

    Still not convinced? Well he continues with this one...

    “For example, a pack of cigarettes that was selling for 1000 dinar would be only 1 dinar. If it was a conversion like that, if the three zeros were lifted from the previous currency, this means the old 1000 dinars will buy 1000 packs of cigarettes instead of 1.”

    So to answer your he going around telling people there dinar will increase in value? Well he is in this paper, and I would expect he would be also at the various symposiums he is teaching.

    Now is is right? That's another conversation. But he is a well known economist, and professor, and is hired by the CBI to teach the process.

    Am I a No, i just research and post facts. Take it or leave it.

    Yes shirts, hats coffee mugs are going well. Post RV, you might want to get one since i am the one who is teaching you the facts in Iraq.


  16. Stew 29th June 2012 at 01:08 #

    “If three zeros were lifted from the IQD, this means the IQD becomes stronger 1000 times in terms of value.”

    Your logic is twisted Kap.
    The statement is true… but because of lifting 3 zeros, you will have 1000 times less currency.

    You have 1 miilion dinar right now. If 3 zeros are lifted from the dinar (as stated by Bakri) you will then have 1 thousand dinar. Those new dinar will be 1000 times stronger.

    So he’s saying option one just changes for a new currency and that’s what Iraq did 8 years ago. Option 2 removes the 3 zeros and the currency becomes 1000 times stronger. But there will be 1000 times less currency.

    Edward… The two options are from Kaps post. You must have missed that point in your state of rage.
    The reason the rate didn’t change when they added 15 Trillion in circulation was because they also added about $15 billion in FX reserves during that time. $15 billion backs 30 Trillion dinar at 1:1000 which is pretty much what the exchange rate is. Simple math. It has nothing to do with a “dirty float”. Stop listening to Breitling. He is clueless when talking economics and currency. A dirty float and a managed float are the exact same thing.

  17. Stew 29th June 2012 at 01:24 #

    Look at this translation of the article Kap….
    A little different than your translation.

    "any box of cigarettes that were sold (1000) dinars possible purchase after the lifting of the zeroes dinar and one, a thousand dinars and modern can be obtained by the A pack of cigarettes."

    I found this same translation on a couple different websites.

  18. Edward 29th June 2012 at 02:25 #

    Thanks Stew for stepping in it ! Now please explain why in recent months the CBI has reported that there is between 4-6 Trillion Dinar in circulation? I have read these articles myself and don't need Breitling. Yet with less Dinar in circulation the exchange rate stays the same? The reserves are over 60 Billion and the exchange rate stays the same? With that said why is it an impossibility for the Dinar to increase %100,000 if we are not getting the real numbers? you have already stated there are 2 possible outcomes a LOP or a %100,000 increase. ARGHHHHH!!!! That's my rage LOL

  19. Stew 29th June 2012 at 04:06 #

    Ed... can you provide a link to one of those articles that states 4-6 Trillion. Every article I've seen lately states they have 30some trillion.
    There were one or two articles that stated 30some trillion dinar made up from 4-6 Trillion actual notes. That was obviously a mistake because most of their notes are in Thousands. So obviously it's 30some Trillion dinar made up by 4-6 BILLION notes.
    You reading comprehension skills are sorely lacking. I have never stated a 100,000% increase is possible. It's a made up fantasy from scam artist or economic ignoramuses.

  20. adrian 29th June 2012 at 04:25 #

    Edward, I do not sound foolish less spoiled, but you sound like gurus dinar cheats. I lost count of how many times I read other the same as you. I get lucky with you. I have no explanation for something I have not seen, nor is if true, show it in b / w.,,,,,, Sorry .. words of Mr. Adrian bush, yeah right. I repeat I hope that you show in b / w.

  21. Jim Sullenger 29th June 2012 at 06:00 #

    I think the thing that many people miss when they think about forex currency is that it is all speculative. There is no way that someone can know for sure about something that will happen next week. It is all speculative. If you were to buy any for currency as any investment be sure aware that you are doing it with risk. Again the more information that you can get the better. That is what I like to do anyway. I make sure that I know exactly what what I am getting myself into before I make any bold moves. It works best for me.

  22. Edward 29th June 2012 at 07:50 #

    I'm not sure what you mean by B/W? and I'm not totally comprehending your message sorry.

  23. PAFH 29th June 2012 at 09:21 #

    CBI spokesmen have been publicly saying for years that there is going to be an inevitable redenomination of the existing Iraqi Dinar banknotes and coins, and that at the same time there will be an international revaluation of the new IQD banknotes and coins against the USD.
    With this planned method, the CBI has been trying to reassure everyone that the value of everyone’s (both Iraqi citizens and foreign investors) IQD investment will retain its value after the redenomination ~ by keeping the value (in USD) the same as it was before the redenomination.

    Altering the face value of a currency without reducing its (fixed by the CBI) foreign exchange rate is a redenomination, not a lop and not a revaluation.
    Revaluation (RV) means a calculated rise in a country’s official (fixed) foreign exchange rate of its own currency, relative to another country’s currency.
    Mazhar Mohammad Saleh, a senior member of the CBI Advisory Panel has repeatedly stated publicly that the GOI has adopted a CBI drafted two-pronged plan to restructure the national currency ~ to include physical banknotes and coins and electronic bank accounts.
    One prong is the long overdue (domestic) redenomination of the existing large denomination banknotes by introducing new banknotes and coins into circulation.
    The other prong is a simultaneous (international) revaluation of the new banknotes and coins to increase the value of the IQD against the USD.
    He has emphasized (as have others) that nobody loses any value in their investment ~ whether it’s an Iraqi citizen going about his daily business, or a foreign investor looking to make a profit.
    These CBI goals are public knowledge, not speculation or rumor.

    Buying IQD on the internet and/or holding IQD in cash form, in my opinion will be (depending on when you bought IQD) a more or less zero gain investment for a foreign investor, just as it will be for all Iraqi citizens.
    The CBI will soon recall all the existing large denomination banknotes and exchange them inside Iraq for the new banknotes.
    At that time, the new banknotes probably won’t be available to foreign investors who want to trade-in old banknotes outside of Iraq and even if they are, the CBI has continually repeated that a trade in (redenomination) will be a no loss, neutral gain event for everyone.

    Existing banknotes with the (current) CBI fixed exchange rate of 1: 1166, can only be used inside Iraq, will never be used for purchases internationally and will only be able to be universally exchanged outside of Iraq at the rate just prior to the redenomination (whether it’s 1: 1166 or something else at the time the redenomination actually happens).

    Existing IQD Banknotes:
    •IQD 25,000 = $US 21.44
    •IQD 10,000 = $US 8.58
    •IQD 5,000 = $US 4.29
    •IQD 1,000 = $US 0.86
    •IQD 500 = $US 0.43
    •IQD 250 = $US 0.21
    •IQD 50 = $US 0.04
    There are also IQD 100 and IQD 25 coins but they are not currently in circulation, and are not for sale to foreign investors on the Internet.

    New banknotes with the anticipated CBI fixed exchange rate of 1:1.17 are still yet to be issued, will replace the existing notes and the USD over time; and will be able to be exchanged and used for purchases outside of Iraq ~ only after an official international revaluation has been established and recognized by the IMF, World Bank and the rest of the international community.

    New IQD banknotes and coins not yet issued:
    •IQD 100 = $US 85.76
    •IQD 50 = $US 42.88
    •IQD 25 = $US 21.44
    •IQD 10 = $US 8.57
    •IQD 5 = $US 4.28
    •IQD 1 = $US 0.85
    •IQD 0.50 = $US 0.42
    •IQD 0.25 = $US 0.21
    •IQD 0.10 = $US 0.09
    •IQD 0.05 = $US 0.04

    When the redenomination process starts (reportedly in late 2012 or early 2013) these new banknotes and coins with their new CBI (fixed) exchange rate will be introduced into circulation and will co-exist with the already existing banknotes and their old CBI (fixed) exchange rate along with the USD, until the existing notes and the USD are sufficiently removed from circulation ~ to the satisfaction of the CBI and the GOI.

    In the recent past (2003) when the existing notes replaced those with Sadaam’s picture on them the process took approximately 90 days.
    That relatively small window of opportunity was because of the war and the Coalition Provisional Authority (the US and the British) introducing both the USD (as the new Iraqi international currency) and the currently used IQD banknotes (made in England and serving as the new domestic (only) currency) into the Iraqi economy.
    Directly after the start of the US led CPA invasion, everybody was in a hurry so that the Iraqi economy didn’t collapse completely.

    The approximate US$21 Billion introduced into the economy was flown into Iraq in C-130 Hercules transport planes in cash, in bricks of $100 bills that were shrink wrapped to pallets. The pallets were fork-lifted off the planes, loaded onto trucks and delivered to the Iraqi banks by heavily armed US Military Police convoys.
    The Brits flew in the new large denomination IQD banknotes the same way and delivered them to the banks.
    All of those $100 bills and all of those new IQD banknotes were not a loan to Iraq from the US and the UK.
    Instead, they were purchased with frozen Iraqi assets which all ended up in a Trust fund administered by a US House of Representatives Committee acting as Trustees for the fund.
    That fund is called the Development Fund for Iraq (DFI) and was turned over to the GOI by the UN at the end of June 2011 with approximately US$400 Billion in it.
    The DFI also paid for other costs of prosecuting that decade long Iraqi war, thereby keeping the actual cost to the US and UK governments in check ~ somewhat.

    Since December of 2010, when the UN lifted all of the Chapter 7 sanctions (except those having to do with Kuwait), 95% of all the oil revenue from Iraq’s current oil production (approximately US$60 Billion annually) still goes to the DFI with the remaining 5% going directly to Kuwait for reparations from the first Gulf War.
    The GOI’s annual budget comes from that fund and the DFI will continue to exist as a Trust until such time as the all the UN Chapter 7 sanctions are lifted.
    At that time the GOI and the CBI will have full authority over its use.

    This time around with redenomination, the CBI is going to allow both kinds of banknotes (the newer lower denomination bills and the existing larger denomination bills) to co-exist for a (reportedly) 1 - 2 year period until the CBI is satisfied that the redenomination has been successful.
    Redenomination success would mean that the majority of the existing large denomination IQD banknotes are exchanged out of circulation and the Iraqi citizens become confident enough in the value of their own new low denomination currency that the use of USD banknotes is phased out as well.

    The Saddam banknotes could not be spent outside of the borders of Iraq.
    Instead, there was an international version of the IQD that was made in Switzerland and recognized and exchanged for other currencies by the international community.
    Similarly, the existing IQD banknotes cannot be spent outside of the borders of Iraq.
    Instead of an international version of the IQD made in Switzerland, the Iraqis currently use the USD, which is made in the US, and recognized and exchanged for other currencies by most of the international community.

    In order for the new low denomination IQD banknotes to replace the USD as the Iraqi international currency, the new low denomination IQD banknotes will have to recognized and be exchangeable by the international community before they can be used for the purchase and importation of goods and services into Iraq.

    UN Sanctions under Chapter 7 will have to be resolved and the Iraqi HCL will have to be in place (and effective) before the international community will unilaterally recognize the new lower denomination Iraqi banknotes (yet to be issued) as the legitimate international (and exchangeable) currency of Iraq.

    That being the case, when the redenomination process starts, all three types of currency (the existing high denomination IQD, the new low denomination IQD and the USD) will at first all be recognized, exchanged and used inside the borders of Iraq and only the USD will (still) be spendable outside of Iraq.
    The existing large denomination banknotes will be exchanged at the current CBI rate of $1: 1166 (or whatever the exchange rate is by the time redenomination starts) and the new lower denomination banknotes will be exchanged at the new rate of $1: 1.166.

    That way an existing IQD10000 banknote and a new IQD10 banknote will both be able to be exchanged for US$8.57 and the economy will absorb the two different rates and the 3 different currencies (including the USD) smoothly and without a lot of strife.
    Iraqi merchants will just have to decide whether to advertise their goods and services at the existing currency rate or the new currency rate.
    Either way, IQD10000 or IQD10 or US$8.57 will all spend equally.

    Since the existing large denomination notes will never have the new exchange rate attached to them, they will not even be useful for future interbank transfers inside Iraq and will likely just be destroyed once they have been collected.

    The Iraqi people will certainly be able to cope with using three different currencies, because they are already dealing with the existing IQD and the USD.

    What the Iraqi people really want is to become international citizens again with their own IQD international currency, instead of having to depend on the USD to purchase goods and services outside of Iraq.

    In fact, the Iraqis are so ready for equality that they are already using the existing domestic IQD notes against the USD in a de-facto ‘unofficial’ street level exchange rate of 1: 1000.

    For example, right now in Iraq and mainly because there’s no practical way to make small change:
    •IQD 25,000 = $US 25
    •IQD 10,000 = $US 10
    •IQD 5,000 = $US 5
    •IQD 1,000 = $US 1
    •IQD 500 = $US 0.50
    •IQD 250 = $US 0.25
    •IQD 50 = $US 0.05

    Something that needs to be re-emphasized ~ (currently) the existing IQD banknotes and coins can only be used and/or exchanged for USD inside Iraq ~ nowhere else.

    So, if anyone is holding the existing large denomination banknotes outside of Iraq, how are they supposed to cash them in for USD outside of Iraq?

    The answer is that they are not going to be able to ~ not now, not after the redenomination process starts inside Iraq and not even after the international revaluation of the new Iraq Dinar notes has been declared and recognized.

    The reason is that no bank outside of Iraq will ever recognize the existing large denomination banknotes as legitimate international currency and so will refuse to cash them in, even at the existing exchange rate of 1:1166.

    There will of course be exceptions, whereby an enterprising financial institution or a forward thinking US bank or an IQD dealer or a VIP group may choose to trade through a third party that is willing to transport the physical notes back to Iraq for the final exchange with the CBI; however, the existing large denomination IQD notes will never be on that same enterprising bank’s ‘accepted currencies’ list for foreign exchange with the USD.
    The larger than normal fee for this (potentially) exceptional service will most certainly wipe out any profit that might be anticipated from the IQD’s gradual rise against the USD.

    Anyone holding existing IQD notes outside of Iraq will at most only be able to get their purchase costs back outside of Iraq (minus exchange fees).
    If a foreign investor purchased his IQD early enough in the game, there could also be a possible gain in value from 2000 to 1166, but the larger than normal exchange fees will only counter that (potential) gain back to close to neutral.

    When an international revaluation takes place and the IQD is again recognized by the global community, it will be only the new notes with the new rate that will be recognized and exchanged and/or accepted as payment outside of Iraq ~ not the existing notes with the larger denominations.

    A foreign investor holding the existing large denomination notes outside of Iraq may be able to at least retain what value the CBI gives the notes right now by immediately converting the physical notes into USD cash (via EBay or an online IQD trader) and then wire the USD cash into an electronic line item in a bank account ~ provided the bank will support an IQD account. There are not too many (if any) of those banks around outside of Iraq.

    Even though the value the CBI has assigned to the notes at the current rate of 1:1166 might be far less than what the foreign investor paid for them over the Internet; it would still be a way of rescuing the investment from being a total loss, and might even be a way of gaining more value (at least up to par) through financial products that such a bank has to offer ~ such as Certificates of Deposit or Savings Accounts with higher rates of interest than are currently offered by US banks.

    Out of necessity, such a bank would have to be a private bank and probably would also have to be located in Iraq.

    One such bank is the Warka Bank for Investment and Finance with 120 plus branches and 350 plus ATM machines scattered throughout Iraq.
    At one time, Warka accepted FedEx packages of physical IQD banknotes in order to fund an account, but they can no longer do so due to new laws enacted by the GOI and the CBI to prevent money laundering.

    Right now Warka Bank is under the Guardianship of the CBI due to liquidity problems which have made it temporarily insolvent, but that state of affairs will soon be adjusted by an independent Auditor appointed by the CBI ~ or not.

    Emotionally, it might be wise to accept that even thousands of USD invested in an electronic IQD bank account won’t make anyone an instant overnight millionaire ~ and that would hold true for Iraqi Citizens as well as foreign investors outside of Iraq.
    The advantage of a Warka Bank account (and other private bank accounts inside Iraq) is that because they are electronic they will be uniquely positioned to take advantage of future international revaluations of the IQD ~ possibly even up to past exchange rates of US$2+ to US$3+ per IQD. That could double or even triple the initial investment.

    Trading on the ISX could mean explosive potential as the country and core infrastructure companies grow with the economy.
    In 2011 the aggregate growth of the Iraqi Stock Market was 36% for the year.
    It is expected to do as well or better in 2012.

    Until the Warka Bank audit process is over you won’t be able to wire transfer USD back to the States or purchase stock on the ISX through the Warka Bank ISX Department.

    In my opinion, it would be wise to visit often in order to keep up on the latest news of Warka Bank, the Iraqi Stock Market and the Iraqi Dinar Re-denomination process.

    I personally don’t see the USD ever recovering from its decades long decline, so I’m sticking with gold, silver and copper bullion and the IQD at Warka to put my savings into.

    The Real IQD Revaluation (RV)

    When all of this redenomination has successfully taken place, the Iraqi currency as a whole (including the new lower denomination IQD banknotes, electronic Warka accounts and stock prices on the ISX) will (finally) be in a position to incorporate a significant revaluation to match the growing Iraqi economy.

    A revaluation could take the exchange rate from $1:1.166 to $1:1 or even more; but while the rest of the world (and especially IQD foreign investors) wouldn’t mind a revaluation to $2:1 or even $3:1, the CBI and the GOI are going to want to keep that exchange rate as low as possible in order to be competitive exporting Iraqi oil, natural gas, gold, silver, dates, copra, etc……
    The GOI will also want to encourage tourism and foreign investment into its infrastructure, so it will serve the Iraqi economy best to be the new international “bargain” by keeping the exchange rate of its currency as low as possible.

    For IQD investors it will mean a chance to possibly double or triple a Warka Bank investment in the future; but in the meantime while we are waiting, we can still enjoy 7% on savings, 8.5%, 9.5% and 10.5% on CD’s and possibly even more by investing in the ISX.
    You never know when an Iraqi company might suddenly take off and become the next “Microsoft” of the investing world, especially with the encouragement of foreign investment and technology.

    No foreign investor or any Iraqi citizen for that matter is suddenly going to be a millionaire based just on a new revaluation of the IQD, but that doesn’t mean the investment is a bad idea.
    In fact, in my opinion, it’s still the best investment choice available to the average investor.

    For additional information on the owner’s of Warka Bank go to:

  24. DavidD 29th June 2012 at 10:43 #

    This is simple. $.00085USD will become $.85USD.
    A 25,000IQD will not become 25IQD.
    Outside Iraq 1,000,000.00IQD will become $850,000.00USD.
    The bankers in Kuwait get this. It would be a nightmare negating the 0's from a 25,000IQD note making it equal to 25IQD and would keep most any country from dealing in the IQD, per NBK (National Bank of Kuwait). It was expressed to me by a Branch Manager at NBK that the large notes turned in would be used in banking transactions between the banks and the governments. The 'new' notes are to be used for transactions in daily life in Iraq, as no one operating a shop could not change the larger notes.
    Here the shopkeepers freak out when you pull out a twenty KD note.
    P.S.: 1,000,000.00IQD sells for 240-245KD ($856.80-874.65USD) in Kuwait.

  25. [...] more here: Parliament and Finance Cmte Support “Revalue” (sic) of Iraqi Dinar … ← * Biden cannot solve the controversial oil issues between Baghdad [...]

  26. ADRIAN 30th June 2012 at 21:45 #

    Edward says:
    June 29, 2012 at 7:50 am
    I’m not sure what you mean by B/W? and I’m not totally comprehending your message sorry.

    B / W means black and white. When you show in b / w what you said then I'll believe. I've been reading the same from others for years, which have today disappeared. It might have become millionaires? I doubt it, with great respect.

  27. Barry 1st July 2012 at 11:29 #

    Edward - "Now please explain why in recent months the CBI has reported that there is between 4-6 Trillion Dinar in circulation?"

    Iraq has a whopping 73 Trillion Dinars in circulation with double digit annual money supply growth over 23% and the CBI have the figures on their very own website which you can download and check for yourself:-

    Iraq's annual M2 Money since the invasion:-

    2004 = 12.25tn Dinars
    2005 = 14.68tn Dinars
    2006 = 21.08tn Dinars
    2007 = 26.95tn Dinars
    2008 = 34.92tn Dinars
    2009 = 45.44tn Dinars
    2010 = 60.26tn Dinars
    2011 = 65.11tn Dinars
    2012 = 73.28tn Dinars

    To keep things in perspective : 1. Iraq's economy is only about $140bn and 2. Kuwait's M0 money supply (banknotes only) is only 1.2 billion (yes, billion) KWD's and their M2 (inc electronic money, bank deposits, etc) is 28.8bn KWD's. The IQD is so weak because it's so overprinted. Just like Iran's. It's common sense that no-country will print 540x more money than the size of their entire economy (that's called "triggering off hyper-inflation"). It's also common sense that if the Dinar shot up 1,000x fold in value overnight, then Iraq's will kill off its own export economy by making everything more expensive for non-Iraqi's to import (as newer post "RV" Dinar's would end up costing more $, Euro's, etc, to buy for trading vs now)...

    People need to snap out of the "me want free money" shallow thinking and look at how the whole system genuinely works (as opposed to how some want it to work out of desperation) as this is the obvious absurdity of a 1:1 non-redenomination note swap : You have bought 1m Dinars for $850 and expect $1m Dollars (it really doesn't work like that) - but even if that ever did happen, that also means "post-RV" it simultaneously now takes 1,000x more Dollars for non-Iraqis to buy the same amount of IQD's to import Iraqi products priced in Dinars, as yesterday 1 Dinar = 0.00085 and today 1 Dinar = $0.85). In other words, a 10,000 IQD product (worth $10) would now cost $10,000 (without a redenomination) to import, which is stupid. Do people really not think about this obvious reverse effect trade on the Dinar vs $ "post-RV"?

    This is why a redenomination is inevitable - without it you totally screw up the prices of everything when compared to everything outside Iraq by essentially devaluing everyone else's currencies on Earth by 1,000 without redenominating (which is exactly the same effect as what the "RV" argument that some pumpers & Western Dinar salesmen promote is - If the IQD shot up 1,000x in value in real terms vs everyone else's (without redenominating), then the weakened purchasing power effect on non-Iraqi's is exactly the same as if every country except Iraq all simultaneously devalued their currency's value (USD, Euro, etc) by 1,000x)! Of course the maths have to balance out both ways. It's quite crazy to think they won't (who the hell would suddenly pay 1,000x more for something tomorrow than today, when currencies & similar goods continue to cost the same in every other country) and is also why the article has "sic" after the word (it's widely used in publishing to indicate obvious errors that have been intentionally repeated to highlight that obvious point)...

  28. Barry 1st July 2012 at 11:42 #

    PS : The World Bank also verifies this figure (Iraq's overprinted inflationary money supply):-

    “The Money and quasi money (M2) (current LCU) in Iraq was last reported at 61,393,052,000,000.00 (61tn) in 2010, according to a World Bank report”

    With double digit growth figures (24.3% growth every year), Iraq's M2 has since increased from 61tn IQD in 2010 to 73tn IQD today (Apr 2012).

    As for the "4-6 trillion", I think you're confusing that with something else entirely (eg, central bank capital reserve requirements).

  29. ADRIAN 1st July 2012 at 19:38 #

    The broker best known in America as Dinartrade, (which after a long time for legal reasons had to close their business in California and other states and now is located in Nevada) DinarBanker and others, together with its various dealers, gurus (alleged key people contacts with reliable information on the CBI, the same contacts in iraq soldiers and contractors, the White House, IMF, World Bank and other sites in one form or another had to do with the dinar and r / v) according to them they offered secret privileged information and were responsible for inducing people to invest in dinars with Legal Information alleged that proved to be all lies, all, all, were lies from 2004 to the date of today.

    How many websites I've read where people keep up with bilirubin, with news of oil and assumptions that investors are entering Iraq or found gold, if new banks entered and all about pumpers. Sites where if someone asks a question and a dealer or guru can not answer because the truth would have to say, insult the forumers and removed from the forum because the forumer not a visionary.

    People, let's assume it is true that the dinar will revalue, ie to 0.10 cents, to change everyone who invested in dinars, we would need to take a loan to the Martians. Imagine you if the r / v is 1.0 to 1.0 please, I imagine the gurus telling clients that their bosses learned that United States will sell Iraq's moon to afford the r / v and that they give light with the moon from kuwait. (Who remembers when they said in the forums would happen to people as in Kuwait, which was untrue, but many still believe it and repeat it.) And worst of all is that as many of them sell this investment on behalf of God and that is a blessing from heaven, the gullible will believe it and will sit and wait to sell the moon to Iraq to see his blessed r / v.

    This has already arrived at their highest levels of what is known as a global scam in the form that made him believe people would be millionaires. The reality is that those who became millionaires with this were the brokers, dealers and their employees who are masquerading as gurus and pumper with false rumors.

    All that in one way or another on different websites bring the truth of how markets currency investments, such as revaluations and devaluations work of exchange of x country, are bringing their best to help others who do not understand not really know what it is not even an investment and that it is. We often think that not having an effect, but the truth is that if this working, because they have been much that they have realized that they have cheated.
    stew and barry, good job.

  30. Ken 1st July 2012 at 21:01 #

    How long must you people keep debating this waste of time and effort on a country who has no direction or purpose. Taking 3 zeros off or 6 will not change anything. It's a merry go around that keeps on turning, with no goal set at all. Just spin, spin, spin, over and over. P.T Barnum was RIGHT! A sucker born every minute. Take 10 zeros off, so what, no change. They can't agree on anything!!! Do you think this currency thing will be any different. Aye Yi Yi, you squabblers need to have your head examined. It's been 11 yrs. now, and the only ones benefitting from Iraq and their resources are the carpetbaggers. Look at their unemployment rate! 30% unemployed, last report. Their economy sucks worse than ours!!! Stop wasting your time on this Dinar rhetoric. It's sickening and eventually will die out, with no end in sight. They say, never say NEVER, but NEVER applies here, and the ones promoting it are laughing all the way, taking your hard earned valuable currency, in exchange for worthless currency. WW II Germany, had all kinds of German marks, remember. it took a wheel barrow of German marks to buy a loaf of bread. Same thing here. Until there country grows from within and develops in industry, nothing will change. And if they CAN'T agree on ANYTHING, there will not be industry growth, development, etc. Economics 101 applies here. Pull your head out of your A**, and stop proclaiming the ANY DAY NOW, it will HAPPEN BS!! IT AIN't gonna HAPPEN!!!

  31. Barry 1st July 2012 at 21:18 #

    Hi Adrian. Thanks, and absolutely true about Dinar Trade. The well known guru "Ali" (to whom many have developed a cult of personality attachment to) who runs it claimed he took a year out as "his family were threatened". What actually happened is that he was slapped with a cease & desist order, a $20,000 fine and shut down inside Arkansas by the Arkansas Securities Commission. The legal document can be found here (Ali's signature is even on the bottom left of the document admitting his dishonesty!) if anyone needs proof of that:-

    "By agreement and with the consent of the Staff and the authorized representative of Dinar Trade, it is hereby ordered that Dinar Trade shall be responsible for the payment of a civil penalty in the amount of $20,000.00 to the Arkansas Securities Department. The violations by Dinar Trade support an assessment by the Commissioner of a civil penalty against pursuant to Ark. Code Ann. 2365-805.."!userfiles/Orders/2011/Consent%20Order%20C-11-0205-11-OR02.pdf

  32. Coqui 1st July 2012 at 21:37 #

    Hey Stew here's another one!

    Bank of Indonesia on "lopping" their currency:

    "The central bank confirmed yesterday that it was examining the idea of lopping off a couple of zeros from the currency to make transactions more efficient."

    "The Bank Indonesia governor was at pains to stress that the value of the currency will remain the same, and that the move was completely different from a devaluation, a step usually taken when inflation is no longer controllable."

    "And in practical terms, the lopping off of the zeros has already become an increasingly common practice among restaurateurs, who wisely keep the zeros off their menus."

  33. Coqui 1st July 2012 at 22:12 #

    Highly respected professional currency trading sites with genuine rolling Forex news (not trash talk rumor invention sites by "secret intel agent" posers and conmen) have also clearly stated the exact process as well:-

    "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.

    XE is one of the top FX sites and has the top 300 to 400 ranking of all sites worldwide by internet traffic. The CBI quoted above openly and repeatedly speaks of an RD not an RV. Anyone who continues to say the CBI are saying the opposite is now a proven bald-faced LIAR. That's it for the Dinar RD - yes RD - stuff.

  34. Coqui 1st July 2012 at 22:30 #

    Alsumaria TV to Re-Run Dinar Re-Denomination Program

    "Iraq’s Central Bank set up a new strategic project in 2007 under the name of “Iraqi Currency revaluation” under the recommendation of the Supreme Economic Committee related to the Ministerial Council with the support of Iraq’s Finances Ministry. The project aims to re-denominate the national currency by removing zeros from the currency"

  35. Coqui 1st July 2012 at 22:52 #

    Central Bank: the deletion of zeros from the Iraqi currency has nothing to do public prices or exchange rate

    Sunday, June 26, 2011 10:43

    A Deputy Governor of Central Bank of Iraq, Ahmed Ibrihi that "the deletion of zeros from the Iraqi currency has nothing to do at the exchange rate and prices."

    Ibrihi said in a statement to the Agency all of Iraq [where] on Sunday, said: "Some people imagine that the state wants to influence prices or exchange rates (a reduction or waiver) by the deletion of zeros and this is not true."

    He added that "the deletion of zeros nothing to do with price and exchange rate and that the addition of larger groups of the currency does not require the deletion of zeros."

    He continued that "it is not expected to convene official in the state to promote a false consciousness about life and the promotion of economic illusions create disorder."

  36. Coqui 1st July 2012 at 22:58 #

    Special Inspector General for Iraq Reconstruction

    Quarterly Report and Semiannual Report to the United States Congress

    January 30, 2009

    "Since October 2008, no progress has been made toward rebasing the value of the Iraqi dinar against the U.S. dollar. Treasury continues
    to recommend measures to improve the rates of exchange. Further, it recommends that the GOI reissue banknotes in denominations that are
    more convenient and less costly to produce"

  37. Coqui 1st July 2012 at 23:12 #

    Fortunes in Iraqi Bills Gone Overnight
    Published: May 16, 1993

    "We thought this high-grade currency would never be canceled, while the cheap post-war currency might," said Mr. Abu Bakir. "So, of course, we held on to the old stuff and got rid of the new stuff as fast as we could." Unseen Players

    But there were other, unseen players in the speculating game, some say. Iraqi officials, along with some Western diplomats, contend that Saudi Arabia, Kuwait, Israel and Iran flooded the market with forged Iraqi bills as part of an effort to destabilize Mr. Hussein's Government.

    As the old 25-dinar notes began to disappear from the market, inflation soared, and Iraqi monetary officials, in what Western diplomats describe as a desperate effort to stifle it, invalidated the old notes. The move abruptly removed an estimated 25 billion dinars from circulation.

    "This decision, in the short term, helps Iraq," one Western diplomat said. "But in the long term it could prove devastating. Few people outside Iraq will now trust the currency, making imports harder to get and bleeding the hard currency reserves. Eventually this could fuel hyperinflation, as there will be lots of money and little left to buy."

    Baghdad permitted Iraqis to exchange the 25-dinar notes for the new currency, but they closed the borders for six days to keep speculators outside the country. The border was reopened Tuesday, after the Monday deadline to turn in the old notes passed. Baghdad Imposes Exit Tax

    In an effort to cut down on smuggling, Baghdad also imposed a stiff exit tax of 15,000 dinars, the equivalent of $250 on the black market and $48,000 at the official exchange rate. The tax has slowed cross-border traffic from Iraq to a trickle.

    Iraqi officials say they have no intention of compensating anyone else, even the Jordanian businessmen they traded with.

    "It was their mistake to speculate in Iraqi currency," Shawki Kubaisi, the chairman of the Iraqi Trade Bank, said in Amman. "This is a matter of our national sovereignty, taken to improve our economy."

    But Jordanian businessmen, who have lost tens of millions of dollars, say the move was akin to theft.

    "I sold flour to Iraqi farms and they paid me in money they now say is worthless," said Nabil Ahmed al-Kaid. "This isn't business. It's robbery. The next time the Iraqis want something they'd better show up with dollars."

  38. Coqui 1st July 2012 at 23:26 #

    "Note: The 2006 exchange rate used to convert Iraq dinars into dollars
    was 1500/$1. Using the same exchange rate to convert both the 2006 and
    2007 budgets to U.S. dollars retains the same percentage change between the two years as is found when comparing the change between the two years in dinars. The U.S. Treasury uses an exchange rate of 1260/$1 for the 2007 Iraq budget (the appreciated exchange rate in the table), reflecting the recent exchange rate appreciation of the Iraqi dinar relative to the U.S. dollar."

  39. diva 11th July 2012 at 12:19 #

    Can I ask anyone if the old notes can still be used after revaluation?

  40. Barry 14th July 2012 at 07:40 #

    diva - "Can I ask anyone if the old notes can still be used after revaluation?"

    Hi, they can be used for a while during whatever changeover time-limit is set by the Iraq Central Bank (last time it was about 3 months - from Oct 15th 2003 to Jan 15th 2004). After that, they will become demonetized (ie, declared worthless and non legal-tender).

  41. emmett 29th July 2012 at 01:07 #

    I still think the only people that will come on top will be those of us that invest our money in the Iraqi Stock Market!!!

  42. mark proper 15th August 2012 at 00:28 #

    Ok if they dropped 3 zeros than the 500 dollars I've invested since 2009 would be breaking even. Bad banking.

  43. Iraq Investor 15th August 2012 at 00:54 #

    @ Mark Proper: Bad banking or bad "investing"?

  44. Popo 20th August 2012 at 01:04 #

    Well, i too dropped a grand on this long shot. The US stock market is also a longshot... just look at what Fannie Mae and Freddi Mac were at and are at. NOW... LOOK AT ANY CURRENCY CONVERTER, AND NOTICE THAT IQD HAS FLATLINED FOR THE LAST WEEK....NOT A GOOD SIGN AT ALL!!!! IS MY PATIENT DEAD??? I DON'T KNOW FOR SURE.... ONE THING SURE IS WE'LL KNOW VERY SOON, AND THE PUMPERS WILL HAVE TO ACKNOWLEDGE "IT'S OVER JOHNNY, ITS OVER!". which of course they wont!

  45. Michael valdez 4th January 2013 at 03:02 #

    The only reason the value of the dinar is low is because the is artificialy kept low because of money supply and it is competing against the dollar...lopping zeroes only occurs in high inflation economies....iraq is in single digit imflation...this is simple reduce the money supple ,which then you can raise the value to atleast 1 to 1 ...then they can dedolarize....cuz the citizens will then trade there dollars for and demand will drive the dinar to 3+ ....we wont see that but i belive we will see a very profitable return...i just spent 9 years as a contractor all over iraq.....loper will eat crow....when im cashing in

  46. John Richardson 12th January 2013 at 10:27 #

    Michael valdez - "The only reason the value of the dinar is low is because the is artificialy kept low because of money supply and it is competing against the dollar"

    Just like every other overprinted currency then. LOL. There's nothing "artifical" about it. You print more money - your currency falls in value. Look at Iran, Vietnam, Venezuela (pre redenomination), Turkey (pre redenomination), 1920's Germany, Zimbabwe, Argentina, etc. Dozens of countries have been through this. The only thing unique about Iraq is the absurd "$1m for $1k" mis-selling scam specific to Iraq and the number of people who fall for it...

    Michael valdez -…lopping zeroes only occurs in high inflation economies

    Wrong. Lopping zeroes actually occurs during a lull in inflation in economies which have experienced prior high inflation but inflation has since fallen. No-one "lops" during high inflation. A pumper created myth. Over 70 countries have done this in the past on every continent on Earth - it's nothing new at all.

    Michael valdez -iraq is in single digit imflation this is simple reduce the money supple

    Yes - reduce it by "lopping"... An "RV" is just an external fixed-exchange rate peg adjustment, it doesn't take ANY money out of circulation at all. You can't "RV" away internal inflation, and new banknotes aren't issued for a peg movement, they're only issued for a redenomination (lop). See China's "RV" of the Yuan vs the $ in recent years as a perfect example. That's why the whole process of redenominating was created in the first place - to actually take money out of circulation that caused the fall in value in the first place...

    Michael valdez -supply and demand will drive the dinar to 3+

    LOL. It's precisely "supply & demand" that's drove it and is keeping it below 1,000:1. Kuwait's money supply is 29bn KWD. Iraq's is 72,000bn IQD. Doesn't take a genious to figure out why the Iraqi Dinar's value is +2,000x weaker when they've printed +2,000x more banknotes. Iraq has printed so much money it has more Dinar in circulation than 3x USA's AND 3x Europe's COMBINED - for a country smaller than Canada. There is no "hidden wealth" to "restore" - it's collapse has been due to plain and simple inflationary devaluation (printing too much money under Saddam).

    Its value in the 1980's when it had a money supply in the billions is as utterly irrelevant to today's 72,000bn money supply as the $'s value under JFK on the gold standard is to the modern USD or Korean-war era house prices are to today's realtors. You can't just "pretend" it's still the 1970's but only for Iraq. That's so silly it starts to look like a mental illness.

    Michael valdez - i just spent 9 years as a contractor all over iraq..loper supporters…aka…haters… will eat crow….when im cashing in

    People who use "haters" to describe those with all the facts show themselves to be driven by emotional desperation. "OMG, ur a h8ter, u must be jealous!" went out of fashion back in 2008...

  47. Michael valdez 12th January 2013 at 17:44 #

    Stewy....000...will be taken off the nominal value .86 and of course reduce money supply......and there you have it.....sounds like your not so full of facts like you say

  48. Stew 12th January 2013 at 19:46 #

    Michael. Do you not understand that 000 will be taken off the supply during the process that raises the value 000? So yes new dinar will be worth .86, but if you have 1,000,000 of them, you will only have 1000 after.
    If you don't understnd that, then you are one of those people that believe a country would announce a 100,000% RV for years in advance.
    It take a "special" person to believe that.

  49. Dinarguy 23rd January 2013 at 07:13 #

    I thought I would be able to double or triple my money. They LOP then show a traded rate of 3 bucks or so. 100 bucks of dinar is 300 bucks. After reading PAFH's article, I am not sure that my physical notes will be worth anything except lighting fires or Cigars with. Any thoughts?

  50. Michael valdez 23rd January 2013 at 11:30 #

    A dinar is a dinar.....there will not be a difference , i just left iraq and its true they have sucked most of the 000 off the street the dinar is competing with the dollar ...that is what keeps it at a rate....once they dedollarize they can add value....i dont think..100,00 % ....but they can correct the rate by reducing money supply...collecting our notes and dedollarizing.....and come out at a lower rate ....and let the market drive it up..


  1. Parliament and Finance Cmte Support “Revalue” (sic) of Iraqi Dinar … | Investing In Iraqi Dinar - 29th June 2012

    [...] more here: Parliament and Finance Cmte Support “Revalue” (sic) of Iraqi Dinar … ← * Biden cannot solve the controversial oil issues between Baghdad [...]