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.
The security situation is so bad that you can forget planning such project. So this will be yet another fruitless debate on a subject that has been debated many times.
Once the current inefficient government is changed and especially once the current illegal CBI administration is removed, maybe the debate will have a chance of being implemented.
A more important question is: "what has this deletion of zero's have to do with revaluing the Iraqi Dinar?" or "Is this an attempt to make the currency in circulation worthless to those of us who actually have Iraqi Dinar in our procession?"
Speaking solely for myself: “Where would I exchange my old dinar for new dinar as I am in the United States?”
I suspect this is all politics as usual probably being fueled by our own government and Obama’s staff of henchmen.
There is no "revaluing" Mark. The "RV" is a huge deliberate mis-representation of what is a simple redenomination as described in article, and has been all along. Your Dinar are worth 1,000x less than the $ only because Iraq has massively overprinted them (long before we invaded in 2003) during their period of chronic inflation.
A redenomination will correct that by reducing Iraq's money supply from 80 trillion Dinar to 80 billion Dinar - raising the exchange rate from 1166:1 to 1.166:1 making it more in line with peer countries like Kuwait (whose money supply is 32bn KWD - 2,500x smaller than Iraq's 80,000bn IQD) - but that won't make anyone rich. This is what "deleting 3 zeroes" has meant all along in reality away from "guru/pumper-land".
Iraq's planned redenomination (or "lop" or "deleting 3 zeroes" as some call it) is real - it's the "100,000% RV" by Western Dinar pumpers selling Dinar to Westerners (and taking an extortionate 20-30% "cut" in exchange premiums) that's fake.
As for where you'd change them up, that depends on Iraq. Best news is at any bank. Worst news is a repeat of what they did in 2003 where they instigated currency border controls, and you need to travel to Iraq to change them up. Don't count on being able to sell them back from the same people you bought them off as they already do everything they can to weasel out of "buy-backs" even today. A lot of people waking up to the scam are already selling theirs on Ebay.
Executive Order 13303 and Coalitional Provisional Authority Article 39 are not scams but US Govt directives of the highest order.
I thought I will be a rich man buying dinars, I am so disappointed
the guru land said it is going to happen any day (RV)
so ,if they take the 3 zeros We all are dumb?
Mark, it has nothing, and everything to do with revaluing the dinar.
Nothing, because the mythical RV is just that, a myth. As Barry has stated, people have misrepresented the RD (i.e. lop) as an RV in order to make profits. And profits they've made, Dinar Trade has made hundreds of millions of USD off the lies about the dinar.
And it has everything to do with it, because if they ever manage to actually redenominate, it will be extremely bad news for dinar investors. You see the pumpers/liars/scammers state, over and over again, that the dinar is the greatest investment in the world because you have a chance at 100,000%+ profits, and worst case scenario is that they RD and you exchange and break even. That is total nonsense, in both cases. There's zero chance of a massive profit, and the worst case isn't break even, worst case is you lose 100% of your investment.
Iraq has stated, numerous times, that it's illegal to take more than 10 million or so dinar out of the country. Dinar Trade, IIRC, says they sold over 500 billion dinar in 2011 alone. Do the math. They never want to see that dinar again, and given that taking it out of their country violated their laws, they'd be perfectly justified in not allowing it back in. As Barry stated, they didn't allow dinar back in when they switched from the Saddam dinar to the IQD back in 2003, unless you managed to be there in person and sneak it past a border patrol, they could easily do that again.
So to answer your question: "Where would I exchange my old dinar for new dinar as I am in the United States?"
You most likely would not be able to. Currently banks in the US don't deal in the IQD, even though it's the current and valid currency of Iraq. You think they're going to want to deal with hundreds of billions, or trillions, of it when it is in the process of being demonetized? Incredibly unlikely.
The dinar is like a lottery that never has a drawing. You've got 0% chance of hitting it big, 80% chance of losing 20-40%, and 20% chance of losing everything (and this number increases the longer you hold it). Is that the kind of "investment" you're looking for? You literally have better odds going to Vegas and stuffing your money in a slot machine. Plus that's a lot more fun. I recommend the Willy Wonka slot machine, the oompah loompah bonus is totally fun. Also, FYI, it's the Gene Wilder crazy/weird Willy, not the Johnny Depp crazy/child molester Willy.
Member of Congress -"Executive Order 13303 and Coalitional Provisional Authority Article 39 are not scams but US Govt directives of the highest order."
Sorry to burst your bubble but neither have anything to do with the Dinar. EO 13303 is about protection of oil assets & the development fund for Iraq within Iraq from being seized or nationalized whilst CPA *order* 39 (not "article") simply promotes foreign investment in Iraq's actual real economy (ie, setting up a tangible business, etc, which doesn't amusingly include sticking $850 worth of Dinar in your sock drawer which you bought for 15-20% more than their market value off a Western pumper and calling it a "$1m investment"). 🙂
As usual those who try and "educate" others on "what they really mean" haven't actually bothered to read what they've trying to quote... The full text of both can be found in 30s flat on the net, and is hardly some "big secret" that needs "interpreting" by "guru's".
barry forgets to mention that after INDIA and IRAQ completed their trade agreement india TURNED DOWN the payment iraq offered in USD and requested IRAQ DINAR! don`t listen to these clowns just like you can go in any bank that deals in FOREIGN CURRENCY and buy as much as you want if any of those currency where to rise like the KUWAIT DINAR over the last 90 day`s from $3.50 to 3.82 if you could`ve afforded to buy KWD you would have made a profit so kuwai issued new notes sunday the 6th the people inside iraq exchanged for the new issue at 1 to 1 investors here in america who were holding HARD CURRENCY went into the bank and asked the teller to EXCHANGE THESE FOR ME PLEASE AND GOT + .32CT PROFIT! go to bank of america you can see the numbers for yourself! currency trading has been around for years! man took it ELECTRONIC now the money is called PIPS!
2collectg - "barry forgets to mention that after INDIA and IRAQ completed their trade agreement india TURNED DOWN the payment iraq offered in USD and requested IRAQ DINAR!"
A lot of countries also trade in Euro's directly without going through the $ as an intermediate. So what? This has been explained to you before. For some reason you keep "forgetting" and trying to "educate" others on what they've previously explained to you laughably as your "proof of the RV"... 🙂
Kuwait's money supply is about 30bn KWD. Iraq's is now over 80,000bn IQD. Anyone with half a brain can figure out why the IQD's value is where it is...
2collectg - "buy as much as you want if any of those currency where to rise like the KUWAIT DINAR over the last 90 day`s from $3.50 to 3.82"
LMAO!!!! OMG.... You've done it again... 🙂 The Bank of America's 3.8496 "rate" is their BUY SPREAD (ie, how many DOLLARS it takes to buy 1 KWD). Its increase from $3.50 to $3.82 is the BoA's internal increased spread / exchange premium (due to a temporary internal shortage of currency). The SELL SPREAD rate at which BoA will buy back your KWD's from your for $ (at time of writing) is "1 Kuwait Dinar (KWD): 3.1992". Just like BoA's rates are 1.4287 to buy Euro's but only 1.2790 to sell them back. And the KWD's actual exchange rate is the same $3.50 average rate now as it was in Jan within normal 2% trading variation:-
Jan 2013 1KWD = $3.5517
Feb 2013 1KWD = $3.5461
Mar 2013 1KWD = $3.5137
Apr 2013 1KWD = $3.5088
May 2013 1KWD = $3.5248
Jun 2013 1KWD = $3.5173
Jul 2013 1KWD = $3.4977
Aug 2013 1KWD = $3.5224
Sep 2013 1KWD = $3.5116
Oct 2013 1KWD = $3.5370
Here's today's KWD vs USD rate (1 USD = 0.282738 KWD / 1 KWD = 3.53685 USD):-
http://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=KWD
"The Kuwaiti Dinar has risen 10% and I've just made 10% profit in PIPS!". LOL. Utterly priceless (as usual)... 🙂 BoA's website actually says the exact opposite of what you think it does! If you bought KWD's at $3.50, the BoA will give you back $3.1992 for each of them resulting in a 9.4% loss! 🙂
2collectg - "ELECTRONIC now the money is called PIPS!"
The money is not called "PIPS". A PIP is a fraction of one percent of a pro-Forex trading pair and doesn't involve changing any banknotes or high-street exchange rates at all. You're just blindly repeating terminology you overhead on your special "RV" forums, without really understanding any of it (as usual) to try and "impress" other people...
The above is precisely what marks someone out as a "total newbie" to almost anything related to Forex. Congratulations - 2collectg, you've (yet again) managed to get everything as completely back to front as you possibly could...
LOL! So 2collect buys Kuwaiti Dinar at $3.53 per KWD, and thinks he's made "10% profit" selling them back for only $3.1192 per KWD just because the BoA have increased their high-street buy spread premium to $3.82 per KWD and he's got the two mixed up... So if you bought 500KWD ($1,765) at 3.5, then right now BoA will buy them back for $1,559, and he's confused that with the $1,910 that BoA will sell them for? You too could take 2collectg's "Kuwait guru" advice and make a $206 loss today! Call now! 🙂
I'm not remotely surprised Barry. This is the same guy who a few months back on another topic, couldn't even tell a million from a billion even with two attempts with a calculator. LOL. Some people are just born to get suckered into the RV scam.
2collect - "go to bank of america you can see the numbers for yourself! ".
LOL. I just did here:-
https://www4.bankofamerica.com/foreigncurrency/exchgforeigncurrency.action
Current "buyback" rate of KWD = $3.1992. Enough said...
Since I was one of those talked into buying IQD, and in the US, does this mean that you guys believe I was just fooled ? I did think of the idea that it would be possibile that when Iraq revalued and reprinted, we could all just lose. and the only people making money would be those we bought it from, so I knew going in it could be a scam. I called a couple of banks today, and both said they deal in currncy, but not IQD. ADVISE PLEASE.
Cheryl, the problem is the IQD isn't currently officially traded. That means you can't just walk into any bank / money exchange / Bureau de Change and change them back to $. Even when the new notes come out, banks outside of Iraq may only trade $ for new notes. Many Westerners selling Dinar to other Westerners are doing so dishonestly on the back of a mythical "RV". What Iraq are planning in reality though is a 3-digit redenomination / lop / deletion just like neighbor Turkey went through several years back.
This means when the new notes come out, people will change them up at 1:1000 ratio, ie, 1x 25,000 Dinar note at current 1166:1 rate, will be exchanged for a new note of just 25 Dinar but at a higher 1.16:1 rate vs the $ (1166 with 3 zeroes lopped off). The value ends up the same - there is no "get-rich-quick" RV at all - and the maths balance out as they have to or Iraq would destroy its own economy and would end up with stupidly prices $1,000-$3,000 loaves of bread if some pumpers junk economics ("100,000-300,000% increase in value with no redenomination!") were to be believed! 🙂
The issue though is that it may be very difficult to change them up if Iraq decides to only change notes within Iraq as happened last time during the changeover from Saddam Dinars to current NID's (New Iraq Dinars) during 2003-2004. In theory Western pumpers pushing the "RV" scam claim to "buy them back". If the "RV" was real they'd be falling over themselves to hoard every Dinar they could (they certainly wouldn't be selling them!) and get rid of as many $ as they could buying them back. In reality, the exact opposite is true. That speaks volumes!
Nearly all Dinar sellers come with a "we don't have to buy any back" disclaimers, many regularly try and weasel their way out of it. I know someone who tried to sell his Dinar and was rejected by no less than 4 major Dinar scammers who repeatedly "promised" they'd "honor" buy-backs with all sorts of false excuses. Eventually he got rid of them on Ebay (as many others waking up to the mis-selling scam and realizing that Dinar exchanges are often a "one-way trip" are currently doing).
And yes the only people making money on this are those selling Dinar (for 20% more than their market value). This is why people like "Ali" of Dinar Trade are now millionaires (from taking a 20% cut in every note exchange, and reselling "buy-backs", etc) whilst those who bought Dinar at typical 1200:1 rates still haven't even broke even after 20-30% buy/sell exchange spreads are taken into account.
Hope things work out for you! If all else fails, you can sell them on Ebay and get 70-80% of your money back before Iraq's redenomination.
and here`s the exchange price you get at bank of america
https://www4.bankofamerica.com/foreigncurrency/currencyOrderStart.action
i have know reason to lie it`s at $3.84 bank rate not a currency exchange!
Those are BoA's *BUY* rates 2collect, which is the KWD's $3.509 exchange rate + the 10% spread BoA charge = $3.84. BoA's SELL rate is the KWD's $3.509 rate - 10% spread = $3.1992. My God you really don't understand ANYTHING about foreign currency do you?
LOL. No, Barry he doesn't have a clue. 😉 For some reason some Dinaraholics cannot grasp why banks list foreign banknotes with two prices - what you buy them at with $ (which is above actual FX rate) and what you sell them back at for $ (which is below actual FX rate). The difference is the "spread" which covers the cost of the bank acquiring foreign banknotes + staff wages of dealing with customers + a small profit margin. Certain "RV special snowflakes" here who've never traveled abroad in their life have no clue whatsoever between BUY vs SELL vs FX rates (yet still feel the need to run around loudly trying to "lecture" people on the "truth" of their "investment"). 🙂
The Kuwaiti Dinar's FX rate is $3.5096 as is plain for all to see here:-
http://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=KWD
BoA's BUY rate is $3.84 (what it costs you to buy KWD's from the bank) and their SELL rate is $3.1992 (how much you'd get if you sold your KWD's back to the bank for $). Both links for respective buy/sell pages on BoA's website have already been posted - no point in repeating them over & over.
Presumably 2collect also cheers for joy when he sees a car he wishes to buy at the local garage increase in price from $20k to $25k whilst its trade-in price for his existing car of $12k remains the same... If you don't understand it by now 2collect, you should quite frankly be banned from owning any foreign currency, setting foot inside any bank or using the Internet unsupervised for life purely on mental health grounds...
2collect - "and here's the exchange price you get at bank of america"
No it isn't. Look at your own hyperlink "currencyOrderStart.action" (ie, what it costs you to order KWD). Now look at the link Barry gave you:-
https://www4.bankofamerica.com/foreigncurrency/exchgforeigncurrency.action
exchgforeigncurrency meaning what it costs you to exchange KWD's back for $. You are well & truly muddled up 2collect, if you think someone raising the purchase price of something makes the buyer "richer", that the KWD's exchange rate has "gone up" or if you can't tell the difference between the purchase price and trade-in price of something.
Happy Birthday Dinar!!!
10 years ago today... October 15, 2003
It's gonna happen any time now. 🙂
Stew, I wouldn't be in the slightest bit surprised if there were still people clinging onto an absurd "hope of a 100,000% RV" in Oct 15th 2023. It ends up almost like a drug addiction to some...
They are NOT taking three zeros off the currency itself. The notes have been printed. They are taking three zeros off the low value. Which means the Iraqi Dinar will go from .0008 to .8 per U.S. Dollar. Get it correct.
Think about it this way.... Did the U.S. government EVER take a $10,000.00 note and make it worth $10.00? It does not happen.....
Sure thing Alaxander. They have been talking about removing 3 zeros since 2007. So you believe Iraq has been pre-announcing to the world a 100,000% increase in their currency, giving years for anyone interested to accumulate all they can?
It’s stunning what people will convince themselves of.
You’re right about the US, they never did that, but how is that relative in any way. Many countries have never done that. But it has happened about 80 times in the last 40 or so years. That’s about twice a year a country does it. I suggest you read up on currency redenominations and stop believing what you read on highly moderated dinar web-sites. I remember years ago the scammers trying to draw the comparison to the US $10,000 note and other big bills. I researched it and provided the number of those notes ever printed and it was a pretty paltry number. I think it was about 100,000 of them ever printed. Many of those probably replace existing ones, so who knows how many were ever in circulation at any one time. I bet there have been more than 10,000 25,000K dinar notes on e-bay for sale every day for the last 8 or 9 years.
You might also want to review exchange rate basics a little also. You got that backwards too.
Nice job.
Alexander Hues - "They are NOT taking three zeros off the currency itself."
Sigh. Yes they are Alexander, you just don't understand what you're talking about (and didn't even bother reading page 2 of the article where three people openly talk about just that). Iraq are planning to redenominate (3 zero lop) as they’ve said about 40 times now over the past few years and openly broadcast on Iraqi TV & printed in Iraq papers to 30m Iraqi’s. The Dinar will just move from 1166:1 to 1.166:1 (deleting 3 zeroes), and each of your 25,000 Dinar notes currently at 1166:1 will be exchanged for a new 25 Dinar note at 1.166:1. The maths balances out (as it has to). The only people talking about “rates” are the scammers. The real “new rate” is simply 3 zeroes less of what the Dinar is at now (ie, 1166 -> 1.166). If you have 1m Dinar banknotes, they’ll be exchange for 1k new Dinar banknotes with a 1,000x higher value.
“Deputy chairman of the CBI Dr Muzher Saleh said the bank is working to issue the new currency in addition to coins in both Arabic and Kurdish. This will include a new 50 Dinar bill with a value of $43 (50,000 current note Dinar).” - Central Bank of Iraq Statement
“The change that will take place with the Iraqi currency will change the face value of the dinar and not the real value as measured by the value of Iraqi dinar against the dollar and gold,” Sami Atrushi, Iraqi Finance Committee
“Mahma Khalil, Member of the Iraqi Parliament and official spokesperson of the Economic Committee stated that the new bill will be printed by a European company and introduced to the market gradually and in a well-planned schedule to ensure it will not result in shocks and would not have a negative impact on the market,” explained MP Khalil. He added the exchange rate between the new banknotes and the old ones would be 1:1,000.”
As plain as day to anyone who isn't so brainwashed by the "RV" scam they can see nothing else. Stop hanging round dumb "RV" forums, they'll rot your brain. All these stupid long-debunked pumper claims of "only low notes will be redenominated" are pure delusion, not to mention junk economics ("Hey guys my 5 cent coin and your $50 note should have the same value!"). Um, no... Iraq have already described their notes in detail. They are replacing ALL of them. As they've been saying over and over.
Alexander Hues - "Did the U.S. government EVER take a $10,000.00 note and make it worth $10.00? It does not happen"
ROFL! Of course redenominations happen. About 50 times now on every continent on Earth...
http://en.wikipedia.org/wiki/Redenomination#List_of_currency_redenominations
Alexander Hues - "Which means the Iraqi Dinar will go from .0008 to .8 per U.S. Dollar. Get it correct."
Meanwhile, back in the real world (from the article)...
- "Nafee Elias, a financial advisor at the North Bank, told Al-Monitor that the step to delete zeros is merely an administrative process, and the currency equation should remain the same. This means that the purchasing power of the new currency should be equal to that of the old currency.
- Ahmed Faizullah, deputy head of the parliamentary Finance Committee, agreed with Elias. Speaking to Al-Monitor, he noted that the deletion of zeros will not affect the Iraqi dinar’s purchasing power.
- The price of a share is one dinar, so currently 1,000 dinars are equal to 1,000 shares. Following the deletion of zeros, the new dinar will be equal to 1,000 shares"
People really shouldn't be allowed to pump the retarded "Buy $850 worth of Dinar off me for $1,000 and someone else will give you $1m for them, this weekend, soon, imminent!" scam here.
and that`S my point the bank has a higher BUY BACK RATE DON`T TWIST THE SUBJECT if you have just left KUWAIT and have 100,000 in kuwai dinar when you get here in america you get 3.85 as of today and i`ve exchanged currency at bank of america it`s a simple process so keep lying to those who will listen to you but a currency event like this has happend in my life time 3 times if someone who knew had just told me to invest in the EUR IN 1980 I WOULD`NT BE ON HERE ARGUING With YOU CLOWNS about a TRADE that`s been around since the beginning of the monetary system when men used REED AND MUSTARD SEEDS TO USE AS COUNTER BALANCE!
2collectdinar - "if you have just left KUWAIT and have 100,000 in kuwai dinar when you get here in america you get 3.85 as of today"
Dear God, give me strength...
2COLLECTDINAR (looks like you've changed you name from "2collect" after getting banned for trolling - hardly surprising...) You are severely mentally confused. That much is obvious. The "buy back" rate is around 3.2, as is plain for all to see here:-
https://www4.bankofamerica.com/foreigncurrency/exchgforeigncurrency.action
Click above link, enter your state, then click "All Currencies by Country", click "Kuwait" & "Add", now read out what it says under "Exchange for U.S Dollars". In your own time...
The 3.85 rate is what it costs to buy KWD with $. The 3.2 rate is what it costs to sell KWD for $. That's why they're listed on separate pages. Now stop trolling these forums and humiliating yourself with your silly failed scam-pumping & chronic financial illiteracy.
2collect the troll - "if you have just left KUWAIT and have 100,000 in kuwai dinar when you get here in america you get 3.85 as of today"
Congratulations on yet again getting everything as completely back to front as you can by getting the BUY and SELL prices mixed up...
Seriously, you have to be trolling. No one can be THAT mentally retarded. And you post under several different names too, yelling in CAPS. Enough said...
You can believe the fairy tale all you like people. The fact IS that Iraqi Dinar will go from .0008 to $1.00 TO .8 per $1.00 eventually. The lop is coming off the valuation and not the currency. Britain did not print all the new currency to have the higher denominations worth the same as the 25 dinar note. Also, the United States is the biggest purchaser of Iraqi Dinars for a reason. Iraq always stated that the U.S. War would be fully paid back. How do you think that was going to be accomplished? With Dinars my friends. If you missed the boat, then that is not anyone else's problem. You had your chance to buy dinars years ago. I believe facts straight from a banker. My tip to buy dinars was given to me buy someone who predicted the financial collapse of '08 over a year before it occurred. He has deep pocket clients who purchased dinars by the trunk load and will be billionaires overnight very soon. All you need to do is listen to the rich, because a poor person has no good advice. Get a piece, or clam up.
Alexander Hues - "The lop is coming off the valuation and not the currency"
Nonsensical double-speak gibberish. "Valuation" of what - magic beans?
Alexander Hues - "Britain did not print all the new currency to have the higher denominations worth the same as the 25 dinar note"
Like most of the "RV" bunch, you have absolutely no idea what your talking about - you simply blindly parrot stuff sales talking points (masquerading as "secret intel") you hear from Dinar salesmen that you desperately want to be true but isn't. Here is Iraq's new banknotes as announced by the CBI:-
New Iraqi Redenominated Banknotes:-
- 100 Dinars (will be exchanged for 4x 25,000 current banknotes) will have the design of the Azwaip in Baghdad on the front, and the University of Baghdad on the back. ONE new redenominated 100 Dinar "University of Baghdad" design note will replace FOUR current red "Kurdish farmer & tractor (front) / King Hammurabi (back)" design 25,000k notes.
- 50 Dinars (will be exchanged for 2x 25,000 current banknotes) will have design of King Codaa (Lagash II dynasty) on the front and a picture of Fort Ukhaydir (a Fort archaeological dates back to the era of the Abbasid) on the back. ONE new redenominated 50 Dinar "King Codaa" design note will replace TWO current red "Kurdish farmer & tractor (front) / King Hammurabi (back)" design 25,000k notes.
- 25 Dinars (will be exchanged for 1x 25,000 current banknotes) will have a picture of King Hammurabi receiving the law on the front, and a picture of a peasant from Iraqi Kurdistan working in agricultural fields on the back. ONE new redenominated 25 Dinar "King Hammurabi" design note will replace ONE current red "Kurdish farmer & tractor (front) / King Hammurabi (back)" design 25,000k note.
- 10 Dinars (will be exchanged for 1x 10,000 current banknotes) will have the Arab-Muslim image of the Dinar on the front, and a picture of the Hadba Lighthouse in Mosul on the back. ONE new redenominated 10 Dinar "Mosul Lighthouse" design note will replace ONE current green "Abu Ali Hasan Ibn al-Haitham (front) / Great Nurid mosque in Mosul (back)" design 10,000k note.
- 5 Dinars (will be exchanged for 1x 5,000 current banknotes) will have a Kurdistan waterfall on the front, and a picture of an Iraqi palm on the back. ONE new redenominated 5 Dinar "Kurdistan Waterfall" design note will replace ONE current dark blue "Geli Ali Beg waterfall (front) / Al-Ukhether desert fortress (rear)" design 5,000k note.
New Iraqi Redenominated coins:-
NB: Iraqi coins are measured in "fils" which are like US "cents" except there are 1,000 rather than 100 subdivisions, ie, 500 fils is 1/2 Dinar, 250 fils is 1/4 Dinar, 100 fils is 1/10th of a Dinar, etc.
- 1 Dinar coin (will be exchanged for 1x 1,000 current Dinar banknote) will contain the design of a map of Iraq and highlight the Tigris and Euphrates. ONE new redenominated 1 Dinar "Iraqi Map & Rivers" design COIN will replace ONE current brown "Iraqi coin (front) / Mustansiriya School Baghdad (rear)" design 1,000k Dinar note.
- 500 fils coin (will be exchanged for 1x 500 current Dinar banknote) will contain a larger image of just the Euphrates river. ONE new redenominated 500 fils "Euphrates" design COIN will replace ONE current bluish-green "Dûkan Dam on the Al Zab river (front) / Assyrian winged bull (rear)" design 500 Dinar note.
- 250 fils coin (will be exchanged for 1x 250 current Dinar banknote) will contain a larger image of just the Tigris river. ONE new redenominated 250 fils "Tigris" design COIN will replace ONE current bluish-purple "Astrolabe (front) / Samarra Mosque minaret (rear)" design 250 Dinar note.
- 100 fils coin (will be exchanged for 2x 50 current Dinar banknote) will contain an image of a Babylonian lion. ONE new redenominated 50 fils "Lion" design COIN will replace TWO current purple "Basra grain silo (front) / Date palm (rear)" design 50 Dinar notes.
- 50 fils coin (will be exchanged for 1x 50 current Dinar banknote) will contain an image of a Mesopotamian palm. ONE new redenominated 50 fils "Palm" design COIN will replace ONE current purple "Basra grain silo (front) / Date palm (rear)" design 50 Dinar note.
- 25 fils coin (worth half of 1x 50 current Dinar banknote) will contain an image of the Babylonian Ishtar Gate. TWO new redenominated 50 fils "Ishtar Gate" design COINS will replace ONE current purple "Basra grain silo (front) / Date palm (rear)" design 50 Dinar note.
That's straight from the Central Bank of Iraq, without being "misinterpreted" or "twisted" by American salesmen and their shills (like yourself Alex) on stupid "conference calls" or "rumor tidbits" to suit their own dishonest agendas.
The only "fairy tale" comes from those who think that nice bureau de change cashier has a suitcase full of $1m notes with their name on it just because you changed $1,000 from USD->IQD and back again and called it a "secret investment". "Missed the boat". ROFL! 🙂
Barry, nothing's funnier than an RV scam victim running around telling everyone the Central Bank of Iraq, Iraqi Finance Committee, etc, "are all clueless about the Dinar" because they don't read Dinar Daddy's tidbits 🙂
The "Iraq is only going to replace lower redenominations" is 5-year old pumper propaganda debunked by the CBI years ago (when they announced above banknotes). People like Alex still pumping it are stuck in 2008. It's also completely delusional anyway for the obvious reason banks don't keep track of what denominations account balances were deposited in, and electronic transactions get redenominated too. It's just a small handful of people investing shared fantasies to try and "explain" why "their" Dinar is "different" and "special". It's not an argument or "proof of the RV" - it's a cry for help.
At the end of the day, Iraq has $70-80bn worth of FX reserves to back the Dinar's value. And they've printed 80 TRILLION Dinar. That's why the Dinar has a value under 1000:1 vs the $. It's not that hard to understand for those who actually want to understand it, and not driven by greed-fuelled delusions of grandeur (a common trait amongst Dinar "investors" - a second common trait is the comical need to try and make others "jealous". LOL). Any moron like Alex who thinks the Dinar's going to leap up in value 1,000x is missing the obvious point the CBI and all Iraqi banks would run out of money and go bankrupt before they even changed up 0.1% of all Dinar in circulation for $. Duh!
As mentioned previously, it's value cannot be any higher or the Central Bank of Iraq will simply run out of money to back it (causing its value to tank and be treated as a junk currency) - just like if you owned your own micro-business, and you sold 1,000 gift vouchers and you had $10,000 in the bank, each gift voucher could not have a value of more than $10 or you'd be bankrupt. If you sold 1,000x $10 gift vouchers, then suddenly declared each one to be "redeemable for $10,000 due to a 99,000% gift voucher RV", but you still had only $10k in the bank, you'd only be able to redeem one single voucher, and you'd end up $9,990,000 in debt! (ie, totally & catastrophically bankrupt)! 99.9% of people who owned your vouchers wouldn't even be able to "cash in" at all because your bank account would be empty after changing up just 1 voucher.
The stupid "99,000% RV" argument is exactly the same - and just as absurd and mathematically nonsensical for the same reasons - if the Dinar leaped up 1,000x, then 99.9% who owned Dinar wouldn't be able to exchange them at all because a (delusional) $80,000bn worth of Dinar backed by only $70bn FX reserves doesn't work out too well, does it?... The only way of getting the maths to balance is a lop - which is exactly what Iraq are going to do outside of about 7 hyper-delusional online web forums (all run by scammers who can't even be honest about their own names like "Dinar Vets" Adam Montana (real name : James Wolf).
Iraq have created over 80 trillion Dinar. The population of Iraq is only 30m people. They've printed over 2.7m Dinar per Iraqi (and over 700x more Dinar that the $ value of their whole economy including every drop of oil sold)! As has been seen in Zimbabwe, Vietnam, Iran, Germany, etc, when everyone in the country is a "millionaire" in the local currency (despite the average iraqi earning only average $4k annual salary in reality) because the government has printed too much money - and yet the government has only about $70bn of money to back all those tens of trillions of local currency units with internationally, then 1m units of that currency actually ends up being internationally worth a market value of less than $1,000.
Not undervalued, just basic supply & demand - as all currencies work. People wouldn't use it for trade if the maths didn't add up! And no businessman outside of Iraq will trade with Iraq if it will cost him 1,000x more in real-terms to buy all future Dinar tomorrow vs today - the second "elephant in the room" that flat-out debunks the "RV" even more (if that's even possible).
John Richardson - "And no businessman outside of Iraq will trade with Iraq if it will cost him 1,000x more in real-terms to buy all future Dinar tomorrow vs today – the second pretty obvious “elephant in the room” that flat-out debunks the “RV” even more (if that’s even possible)."
Indeed, John. It's so absurd it beggars belief it still needs pointing out to a grown adult. If people don't understand John's comment, I will repaste an example I used elsewhere previously:-
***
REDENOMINATION : If something in Iraq costs 10,000 Dinar ($8.59 current value at 1164:1), and Iraq redenominates the Dinar to 1.164:1, then its price will have 3 zeroes lopped to 10 Dinar and be exchanged internationally at 1.164:1. It will still cost $8.59 both inside Iraq and its international exported value. This is what both Iraq and non-Iraqi's who trade with Iraq WANT to happen. And what Iraq has repeatedly announced they will eventually do in reality.
*
"RV" FANTASY : But if something in Iraq costs 10,000 Dinar ($8.59 current value at 1164:1), and it "revalues" 1:1 vs the $ without any redenomination / lop the way the pumpers are promoting (simply arbitrarily declare the currency 1,000x more valuable, everything else stays the same, no "lop"), then its price will remain at 10,000 Dinar inside Iraq (due to no 3-digit currency redenomination / lop) and yet the new exchange rate will be 1:1. This means it will now cost $10,000 to purchase 10,000 Dinar to import an $8.59 product from Iraq (which still costs only $8.59 to import the same product from say Jordan or Turkey whose currencies wouldn't have moved 99,000% vs the $) due to a fake 1,000x out-of-whack-with-reality artificial "RV" over-peg! That's so utterly absurd it defies belief people actually believe in it even for one hour let alone years on end!
*
- Even if Iraq "revalues" to 3:1 ($1 = 3 Dinars), "guru's" are still arguing that non-Iraqi's will now pay $3,333 to buy 10,000 Dinar to import an $8.59 product which is still only $8.59 everywhere else on Earth due to a fake 388x out-of-whack-with-reality artificial "RV" over-peg!
- Even if Iraq "revalues" to 10:1 ($1 = 10 Dinars), "guru's" are still arguing that non-Iraqi's will now pay $1,000 to buy 10,000 Dinar to import an $8.59 product which is still only $8.59 everywhere else on Earth due to a fake 116x out-of-whack-with-reality artificial "RV" over-peg!
- Even if Iraq "revalues" to 100:1 ($1 = 100 Dinars), "guru's" are still arguing that non-Iraqi's will now pay $100 to buy 10,000 Dinar to import an $8.59 product which is still only $8.59 everywhere else on Earth due to a fake 11.6x out-of-whack-with-reality artificial "RV" over-peg!
- As for the ludicrous 1:3 rate (1 Dinar = $3), "guru's" are still arguing that non-Iraqi's will pay $30,000 to buy 10,000 Dinar to import an $8.59 product which is still only $8.59 everywhere else on Earth due to a fake 3,492x out-of-whack-with-reality artificial "RV" over-peg!
No matter what absurd "rate" you use for your theoretical "RV" or what the pumpers advertise, - 1:3, 1:1, 3:1, 3.33;1, 5:1, 19:1, 37.2347:1, 100:1, whatever - the entire "logic" and maths behind it are a joke that doesn't even begin to add up. The export vs domestic prices don't add-up with either each other or the global market for the same goods in peer countries! The "RV" argument is complete nonsense that attempts to create a Communist-style banana-republic dictated rate with a ludicrous massive artificial split between domestic & prices of exported goods when valued in other currencies almost completely divorced from reality! No matter what you claim - back in the real world, people will not buy anything from Iraq via such a ludicrously overvalued (RV'd) currency, their exports would collapse to zero and the Dinar turn into a "junk currency" virtually overnight.
The exchange rates ALWAYS have to match BOTH ways or the loser simply wouldn't use the currency for trade, and the only way is via a redenomination / "lop" which resets prices and money supply by the exact inverse factor as the currency grows in strength. THIS IS WHY THE WHOLE REDENOMINATION PROCESS EXISTS IN THE FIRST PLACE! - To allow countries to neutralize all that inflation without screwing up everything else Ie, if Iraq wants 1,000x stronger currency, they'll exchange bank-notes at 1:1000 and divide prices by 1,000. A 24,950 Dinar item of clothing will become 24.95 Dinar and 1x current 25,000 Dinar note (1164:1) will be exchanged for 1x new 25 Dinar (1.164:1).
This is how it works in reality, always has done, and is what Iraq have repeatedly said they'll when they eventually get around to it. There is simply no other magic, secret or way it can work - Iraq no exception. People are just blinded by raw greed into not seeing anything beyond "my banknotes, my banknotes, my banknotes..."
I can't help but shake my head. 2Collect comes on and makes a complete fool of himself by getting buy and sell prices backwards. It's then explained to him and shown where his mistake is and what does he do. He keeps on coming back and making the same stupid claim.
Collect, if what you say is true, and BofA will give you $3.80 for Kuwaiti dinar, and they sell it to you for $3.20. Then why aren't you standing there all day long buying it from them and selling it right back to them. You could make a fortune.
Alexander, how have we missed out on our chance? It hasn't RVd yet and there are still BILLIONS if not TRILLIONS of dinar sitting around for sale to anyone who wants them.
I bet fairly soon we will be able to buy all the dinar we want for about $400 per million, maybe even cheaper.
LOL... Collect, one more thing. Please tell us how you would have made a bundle off the Euro if you had invested in 1980. In your explanation please account for the fact that the Euro didn't exist until 19 years later in 1999.
You all forgot one little detail in your old thinking habits. The U.S. has $125 Trillion in unfunded debt that continues to grow out of control due to social spending IE Socialism put in by the party we all know that starts with a "D". When the U.S. finally reveals the true purchasing power of the dollar.... You will see hyper inflation. And with that the Iraqi Dinar re-evaluating to maybe even $5.00 per dinar.
So you might as well mention this very important twist to others that you keep conveniently leaving out of the equation and discussion. Maybe on purpose?
Alex, all you're doing is mindlessly regurgitating other people's straw men that went out of fashion about 4 years ago. "The Dinar must make me a millionaire because the US has a large national debt if you count every cent spend over the next 75 years worth of debt and try and squeeze all that into 2013 but only for the USA" is not an argument, it's a cheesy pumper sales slogan. It doesn't work like that at all since most of that "unfunded debt" is internal, not external. Iraq is also running an annual budget deficit even with all that oil being sold. Personally I couldn't care less about your Republican vs Democrat whining (some of us grew out of "goodie vs baddie" partisan politics long ago) or your ongoing mental confusion over what Iraq's planned redenomination is. This is a forum for serious tangible investments in Iraq, not childish fantasy-based scams. That's why it's called "Iraq Business News" and not "thedinargetrichquickscam.com". You're new here, so before embarrassing yourself further, it's probably best if you took the time to figure out this website isn't a "pumper" run board nor is about the "RV" scam by any measure.
Yeap, Alexander’s post is more fairy tale economics made up on dinar forums years ago.
Just for a second let’s pretend it might be true, and the dollar will suddenly crash in value.
What these nitwits don’t take into account is that the Iraqi dinar gets it’s value from FX reserves they hold, and the vast majority are US dollars. So if the dollar did crash, then the Iraqi dinar would crash the same relative amount.
Iraq would have to sell all their dollar reserves and replace them with something else before the crash. They have diversified their reserves some over the years, buying a little gold and adding other currencies, but it’s a small percentage.
Alexander still hasn’t explained how we’ve missed out. Iraq is telling the world they will delete 3 zeros sometime in the future, yet there are still billions/trillions available for purchase at .00086. The CBI holds an auction 5 days a week and they offer both dinar and dollars. Banks buy dollars from the CBI, selling their dinar back to Iraq… to the tune of 100’s of million dollars worth every day.
Alex and dinar gurus and followers believe that Iraq has announced a 100,000% increase in the value of the currency sometime soon, yet the CBI is forced to buy back 100’s of billions of dinar in exchange for 100’s of millions dollars 5 days a week in Iraq.
Obviously not one of the banks participating in the auctions believes a big RV is coming.
When a rich person lays down $2.5 Mil on an investment, I listen. Chase Bank sold that much Dinar to the client of my banker exec.
Take the info. the way you like. No one puts up that much moola to lose it.
Snooze and lose. It's your choice. Good Luck, cause you'll need it.
Alex: "When a rich person lays down $2.5 Mil on an investment, I listen. Chase Bank sold that much Dinar to the client of my banker exec."
Did they really or is this yet another fake made-up "source" everyone is supposed to swallow at face value deriving from the same old bunch of compulsive liars and blindly repeated on the same old forums (DinarVets, DinarRecaps, etc) every single year since 2007?...
So what's this "guy's" name? Do you have his phone number handy? What amazes me is how you believe we're gullible enough to think most "bank managers" supposedly run round telling complete strangers details of confidential transactions, and everyone is supposed to believe RVaholics word of mouth of what they say their "bank manager tells them". LOL. See a problem with the credibility of that?
My bank manager said to buy $10 worth of Zimbabwe Dollars (which I just happen to be selling for $15) because they'll shoot up 1,000,000,000,000,000x in value overnight making you a quadrillionaire! But I can't tell you his name or give you his phone number - it's a "secret". LOL. 🙂
No one cares about your "appeals to popularity" Alex or your utterly laughable attempt to make others 'jealous' of your 'secret' (ie, scam-victim status). We've heard it all before - "I play golf with the Joint Chiefs and they say...", "My best friends friend is Shabbibi's niece and she says...", "Oh yeah?!? Well my best friend bought 9 squillion Dinar but i'm not going to tell you his name!", "All my sources say it's done!" blah, blah, [insert 5001 other 3rd hand made-up fantasies here then "rise & repeat every week for 10 years"]...
If your friend bought it (assuming he actually did) because he expected the Dinar to shoot up 99,000%, then all that proves is that your "friend" is as utterly clueless about both Iraq, Forex & currencies in general as you are. Owning a business and understanding Forex are two completely different things. As Dr. K explained to you earlier, if the Dinar rose 99,000% vs every other country on Earth, Iraq would end up with $1,300 / €942 / £806 loaves of bread. If you do not see a problem with that, well what does that say about your almost total lack of common sense?
If Iraq made its currency 1,000x more expensive for non-Iraqis to buy, their entire export economy would collapse overnight and everyone would universally reject the Dinar for trade as it would be like South Korea "rv-ing" the Dong and charging $499,000 for a $499 LG TV for non-South Koreans (but still trying to compete with $499 Sony & Panasonic TV's from Japan). It wouldn't make the Dong "priceless", it would make it worthless, as it would essentially charge everyone a 99,000% "tax" to trade with that country in its local currency in all future transactions, and subsequently be universally rejected.
The old saying is quite true : Greed really is blinding. Some people are so ferverously obsessed with the Dinar "because they were promised $1m" by a nameless, faceless stranger over the net who sold them $860 worth of currency for $1050, they literally shut down any and all common sense. The fact you haven't even attempted to address a single point mentioned in any above posts speaks volumes.
LOL. Trying to explain the fallacy of the "RV" to an RVaholic who ignores every fact you give and just shouts the same nonsense louder is like arguing with 6 year old over the existence of Santa to which their only argument is a repetition of "Well Timmy says yes. And reindeer really do exist!"
The "RV" is like swapping a modern $5 note for your buddy's modern $5 note, then expecting him to pay you back $5,000 without ever explaining why beyond screaming "I WANT FREE MONEY" at the top of your lungs or a mentally confused "well that's what it was worth decades ago so it must be worth the same now!" - interspersed with an almost child-like "I know something that you don't, ner-ner-na-ner-ner, you're jealous! Go on, say you're jealous of me!" - ignoring the fact that neither of the modern $5 banknotes you both hold never had that value of decades past banknotes with completely different face-designs...
People hooked on this scam really need to start with the basics - like what "inflation" is, and why back in the real world, the reason it now takes over 1,000 Dinar to buy a loaf of bread in Iraq (and why the Dinar is no longer worth $3) - is exactly the same reason for exactly the same reason you can't buy a house for the same $2,500 your grandparents could back in 1941 - except that whereas $1 (1940) = $16.71 (2013), due to much higher chronic inflation under Saddam in Iraq, $1 (1980's) now = $1164 (2013) not because of the war but simply printing too much money even before the war kicked off.
Not that difficult to understand from an "IQ" perspective, but massively difficult to understand if you have "entitlement addiction" issues that cause you to see only what you want to see...
Apparently most here never heard of removing paper money from circulation the same as stock buybacks either. LOL
Answer this question: What happens when they destroy most of the Dinars? What happens to the value of the remaining left in circulation?
Alex, please stop embarrassing yourself. First of all currencies are not "stocks". Secondly, the Iraqi govt has around $70bn to "buy-back" 84,000bn Dinar. You do the maths and you'll see the Dinar's current value under 1000:1 IS its fair market value due to the sheer amount of money Iraq has printed. Iraq has created 84 TRILLION Dinar. Kuwait only has 30 BILLION Kuwaiti Dinar. That's the real reason why the Iraqi Dinar is over 2000:1 weaker than Kuwait's. If the Iraqi govt were to "buy back" Dinar at a rate of 1:1, 99.916% of Dinar holders would get nothing - they could not "cash in" a single note at all - because the CBI would run out of $ FX reserves and go bankrupt before even 1% of notes were "bought back".
Thirdly, deleting 3 zeroes does not mean a ludicrous Communist wealth confiscation of 99.9% of everyone's private wealth like your delusional fantasy involves. Most Dinar is owned by ordinary Iraqi families - the Iraqi govt isn't going to kick down doors and steal 999 Dinar out of every 1,000 Dinar Iraqi's have in their wallets, bank accounts, savings, business accounts, etc, like a few deluded Westerners have been brainwashed into thinking by a few conmen. Even if that were physically possible (which it isn't), it would do nothing but trigger off a total economic collapse and food riots in the streets.
It would be like Obama using FEMA to kick down every American's door, and steal $99 from every $100 from all pensions, savings, bank accounts, physical notes, stock values, bond values, etc, and ultimately reducing American's average salaries from $40,000 to just $400 per year whilst the price of food, fuel, utility bills, property, etc, all remains the same. The entire country would literally starve to death. The economy would be literally decimated. Taking 99.9% of money out of circulation outside of a redenomination is one giant delusion to the core. It's just pumper verbal diarrhea, invented to con economically illiterate amateurs into thinking the Dinar is some get-rich-quick "investment". It isn't.
Finally, we've already answered your question and explained Iraq's redenomination process and you ignored the answer because it isn't what you wanted to hear. I suggest you go back and re-read what everyone has been telling you particularly myself, John, Dr. Keiferland and Stew's past posts, starting with the very first post I answered you and move on from there:-
https://www.iraq-businessnews.com/2013/10/03/economists-divided-over-deletion-of-zeros/comment-page-1/#comment-276522
Alexander Hues - "Answer this question: What happens when they destroy most of the Dinars? What happens to the value of the remaining left in circulation?"
Alex, if you genuinely are interested in the facts of what occurs during a redenomination, then here is reality : There is no "RV" in the "get rich quick" pumper sense. Iraq are planning a redenomination. They've started this dozens of times and openly broadcast it on Alsumaria Iraqi national TV and in the national press to 30m Iraqi's. Almost everyone on the planet understand this except for a few people in the West clinging onto the fake "interpretations" of a bunch of cowboys selling Dinar banknotes to naive 'investors' at outrageous ripoff prices off the back of fake made-up "intel" (fabricated 'rumor' designed to keep people 'hooked' on 'hope').
A redenomination is a value-neutral process involving removing 3-zeroes to take out past inflation and restoring the face values of currency to match peer countries. Iraq will replace all banknotes with equivalents minus 3 zeroes and you will "cash in" your notes at a rate of 1:1000. 25,000 Dinar gets exchanged for 25 Dinar. 10,000 Dinar gets exchanged for 10 Dinar, etc. The lower denominations get exchanged for coins (eg, a 500 Dinar note becomes a 0.5 Dinar (500 fils) coin). A "fils" is the Iraqi equivalent of "cent". There are 1,000 "fils" to a Dinar (just like there are 100 cents to a $).
This process of exchanging 1:1000 reduces Iraq's money supply by 1,000x (ie, 84tn Dinar becomes 84bn Dinar) and it's that, that has the effect of "lifting" the currency's value 1000x from 1166:1 to 1.16:1, because Iraq would then have only 84bn Dinar with $70bn USD = 1.2 Dinar per $ instead of 84,000 Dinar with $70bn = 1,200 Dinar per $. Since the new currency (which will have a new currency code, possibly the IQN instead of IQD) has a 1,000x higher purchasing power, the prices of goods will have 2 prices during the changeover period. Eg, a 24,950 Dinar product will be priced at 24,950 IQD (current Dinar) or 24.95 IQN (redenominated Dinar). This will continue until the changeover period is complete, at which point ALL current notes will become demonetized (no longer legal tender), and Iraq will use IQN notes permanently.
How will this effect you? Basically, you will exchange each 25,000 Dinar note currently worth about $21.44 (25,000 divided by 1166:1 rate) for 1x new 25 Dinar note with a value of $21.44 (25 divided 1.166:1 rate). But you won't get rich from the process, just like you wouldn't have gotten rich from Afghanistan's similar 3-zero redenomination in 2002, from Venezuela's 3-zero redenomination in 2008, from Turkey's 6-zero redenomination in 2005, from over 50 other countries similar past redenominations, (including every country in Europe moving to the Euro!)
No-one ever has or ever will get rich from a redenomination which is value-neutral by design. The maths always have to balance out - Iraq is no exception. If Iraq just swaps 84tn Dinar of one banknote design for 84tn Dinar of another design, then the value isn't going anywhere because nothing has changed. Where do you think most IQD banknotes are? In the hands of ordinary Iraqi's. Earned wages aren't the CBI's "property" to confiscate at will anymore than the Federal Reserve can tell the police to break into your house and steal $100 from your wallet and mail you 10 cents back in return, then turn your $100,000 pension into a $100 pension, then remove $4,995 from your $5,000 savings account (and you amusingly think doing that in Iraq will make Iraqi's "richer")? The only country on Earth that does mass confiscation stuff remotely like what Dinar pumpers are pumping is North Korea (and even that isn't a ridiculous 99.9%)...
Hope this explains the issue better as there's a huge amount of lies & disinformation churned out by some scammers playing naive but well meaning people for fools with not just absurd but literally mathematically impossible promises of turning $1,000 into $1m, just from changing up $1k of USD into $1k of IQD then back into $1k of USD's during a simple redenomination on the back of fantasy junk economics. That's not what Iraq are planning at all.
Another example:-
Say you're a Jordanian businessman buying agricultural goods from Iraq (say 100 tons of Iraqi wheat at $326 per metric ton for a total market value of $32,600). Current exchange rates are:-
- 1164:1 IQD vs USD
- 1644:1 IQD vs JOD
- 0.708:1 JOD vs USD
This $32,600 global market value of 100t of wheat works out to be both 37,946,400 (37.9m) Iraqi Dinars and 23,080 Jordanian Dinars.
- If Iraq redenominates ("lops") and deletes 3 zeroes, then the Dinar moves to 1.164 vs the USD and 1.64 vs the JOD. Price of wheat gets 3-zeroes lopped off and falls to 37,946 new Iraqi Dinars. Price in Jordan is still 23,080 Jordanian Dinar's. Both reflect the global free-market value of 100t of wheat, and everything balances out (as it must do - or the loser simply wouldn't make the trade if it would make him 1,000x worse off...)
- If Iraq "RV's" to match the $ 1:1 or 3:1 in the pumper sense (ie, NO redenomination / "lop") by demanding everyone else on the planet now pay 1,000-3,000x more for Dinar's in all future transactions when trading with Iraq, then the Dinar moves to 1.164:1 vs USD and 1.64:1 vs JOD, but the price of that wheat stays the same (37.9m Dinars) because it hasn't been redenominated with a 3-zero lop. Iraq's wheat price is now manipulated by an artificial "RV" peg which results it all Dinar priced goods being 1,000-3,000x higher than every other country on Earth. So the Jordanian businessman now sits there in bemused disbelief after being asked to pay 23m JOD's ($32.5m) to buy 37.9m-113.7m "RV'd Dinar" that's now 1,000-3,000x more expensive to trade in order to purchase the same amount of wheat that he can still import elsewhere from Turkey, Greece, Europe, Asia, S. America, N. America, Russia, Eastern Europe, Africa, etc, for their real market value equivalent of 23k JOD's / $32.6k...
And a 1,300 Dinar ($1.11 pre-"RV") loaf of Iraqi bread will now cost $1,116-$3,348 to import (whilst every other country's bread still costs only $1.10)... (And this is supposed to be "restoring its value" 😉 )
The RV equations are absolutely absurd & bogus because they cause a massive, artificial & ludicrous anti-free-market 1,000-3,000x fake split between the price of what goods are sold at between Iraq and every country other than Iraq! It's like if South Korea RV'd the Won by 1000:1 without any lop / redenomination, and you seriously expected people to "not notice" the price tags of Sony TV's soaring from $499 to $499,999 whilst Japanese Sony & Panasonic TV's were still priced at $499, and you see no problem in people buying $500 Korean TV's for half a million dollars or $15 Korean toasters for $15,000 without noticing 99,000% price inflation?...
If you make the Dinar 1,000x more valuable in real terms, then that's the same effect on global trade as if the Dinar remained stable and everyone else on the planet all devalued their currencies by 1,000x!
Did you people really think redenominations / lops exist for no reason? Are "RV" people really that cocky you believe "the masses are too stupid to see 'the secret' that a country can make itself 1,000x richer by yelling "today, we're 1,000x richer" and making all their exports 1,000x more expensive by making it 1,000x more expensive for foreigners to buy Dinars in every future business transaction?"? That's so utterly preposterous it defies belief people believe in it even for one hour let alone year after year...
The U.S prints money without backing it up. Same thing works in reverse. If you believe that a nation can't print paper without backing it up with gold and there are no consequences.... Well then you believe in a one way street without an opposing direction. That is not reality.
In reality if the printing can occur, then the reverse is true and the removal of currency can in fact occur as well.
Ever hear of an exit strategy? There is ongoing discussion at the FED on how to remove the physical dollars from circulation in the best way. What this means is that there most certainly are procedures of doing just that. If a currency is overprinted? Currency can be removed, and they DON"T have to "buyback" the paper either. It just returns to the reserve banks and gets shredded. Easy and as simple as that. Because the money printed in the first place was excessive to begin with and hence, no repercussion whatsoever when destroying. Phony value in and phony value out = the end sum gain of ZERO effect.
Maybe I am talking over most of your inflated heads. Because I get the sense that I am reading a dance of many black belt karate experts putting on a show with fancy moves that have no impact. It looks fancy, but it is useless and can be stopped by a 12 year old girl with a single precise blow. Thanks for the laughs! LOL
Alex - "The U.S prints money without backing it up. Same thing works in reverse"
The Dollar is a floating currency. The Dinar is *pegged* to the $. Any pegged currency must have the FX reserves to back it up with or the central bank would run out of money and default. This is plain and simple fact. Secondly, the USA's money supply is approx $11tn and the USA's economy is approx $16.6tn. Compare that sub 1:1 figure to Iraq's massive 84,000bn Dinar money supply but only $130bn economy, and a child of 9 can see the glaringly obvious difference. A $130bn economy is not going to support even 1% of a stupid delusional $84,000tn money supply. 84 TRILLION dollars is more money than the whole global economy (of which Iraq makes up just 0.15%. Again - common sense seems to be the first casualty of RVaholics absurd fantasies...
You're arguing that the Dinar "must" have 672x more money than the size of their whole economy and that each of those Dinar "must" have a value 1:1 vs the $ for no other reason than "I want free money - a man on the Internet promised me. Waaahhhh!" without understanding the slightest thing about currency valuations or Iraq in general beyond some vague mumblings of fiat currencies which you've twisted wildly out of context to the point of unintentional self-parody.
No country on Earth is on the gold standard sure - but that doesn't mean countries can print several hundred times more money than the size of their economy, than attach arbitrary values to it based on confused nostalgia for the 1970's. If you do not see the delusion in trying to re-label +600% chronic inflation as "hidden wealth" by now, then quite frankly you're a lost cause, brainwashed to the core by a greed addiction...
No country can "remove" 99.9% of all banknotes in circulation without redenominating because it would trigger a massive depression long before even 30% of notes were removed. The entire populace would literally run out of money to buy food. Just like if the Federal Reserve removed 99.9% of your wages on $50k, all you'd be left with to live on is $50 per year when everyone wages tanked because there was literally no money circulating anymore.
Ultimately, all you're laughably doing is cheering on Communist style wealth-confiscations and creating a massive liquidity crisis & depression for Iraq out of the confused, blind greed and a wildly over-inflated sense of entitlement that "your" banknotes are "special" whereas 99.9% of Iraqi's identical banknotes are "worthless" and "needs destroying" like some old medieval colonialist sneering down on "the little people". That's the pinnacle of raw arrogance.
This is a serous business forum, not a junk pumper board for get-rich-quick scam addicts. You have absolutely no idea how utterly ridiculous you look churning this long-debunked cr*p out, trying to find "the true answer" which has already been given to you - several times by several different people. The rest of your post is just shouting the same nonsensical gibberish over and over and emotional outbursts "I want free money!" foot-stamping - more to convince yourself than anyone else.
Alex: "Currency can be removed, and they DON”T have to “buyback” the paper either. It just returns to the reserve banks and gets shredded. Easy and as simple as that."
Alex, you've been given the truth repeatedly. All that "overprinted" currency is in circulation amongst the public. It's the wages Iraqi's earn and the grocery shopping, rent, etc, that they spend. The notes may have been originally issued by the CBI, but they're not sitting unused in a warehouse that's 100% the property of the bank to destroy at will. A form of society where the government 100% owns everyone else's property is called "Communism".
"Hey guys, the central bank wants everyone in the country to hand in their $20 notes, and they'll give you all 2 cents in return, and no-one will notice that their new annual salary of $50 won't even pay for 1 week's grocery shopping! Yes, yes that's it - that's how I'll make "my" million dollars"
That's the beginning and end of your "argument" (if you can call it that). Do you even begin to understand how insane & desperate you sound? It's like something out of a mental health clinic. There is no "magic" 'only Iraq can print itself 1,000x richer' by calling inflation "my secret windfall". No Iraqi's going to hand in any 25,000 Dinar banknotes outside of a redenomination as it will make all Iraqi's 1,000x POORER. That's why redenominations were invented in the first place.
You're in a world of your own, and are simply going through the "panicked desperation" phase that many RV scam victims go through when confronted with the facts (which like yourself go out of their way to ignore as you've done repeatedly above) who then frantically scrabble around inventing a fantasy economic system in their head where 30m people will be plunged into dire poverty and have 99.9% of their money stolen from them so you can "get your fill". It's not even a sane form of greed...
When Iraq pegs the Dinar to the U.S. Dollar, it will be at least .8 from the current .0008
That will not trigger a depression in Iraq. It will actually create wealth for Iraq people. They will now be able to buy a loaf of bread for 10 Dinar instead of 10K.
Do you realize how silly you sound? I am on the side of the Iraqi people, and want them to prosper. They deserve it. Don't you think so?
The CBI solely has the ability to value the Dinar to whatever it chooses. No one else can tell them otherwise. If they choose to make it peg at $3.00 per Dinar, then that is their prerogative. Me thinks you are jealous and envious of Iraq. Why? Do you hate them?
Your speak is actually opposite of logic. You can't raise the purchasing power of a currency to have the citizens of the nation go poor. That is backwards. They are increasing the value of the currency. That equals increasing the nations wealth. Holy smokes batman!
I am convinced that those here do not want others to build wealth or become wealthy. Because no one on the up & up would try so hard to save someone from them-self without a reason of WIIFM (What's In It For Me). You rich folk are going to have to get used to it. The People will not tolerate a ruling class of elitists and a pauper class of slaves. Not in Iraq, and not in the U.S. or anywhere else. The meek will inherit the earth. You can count on that. God sees all you do.