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Thread: Iraqi Finance: Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary

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    Default Iraqi Finance: Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary

    Iraqi Finance: Delete the zeros from the currency will strengthen the position of Iraq to the International Monetary

    18/11/2010 16:37

    Baghdad / November 18 (Rn) - The Iraqi Ministry of Finance, Thursday, that the deletion of zeros from the local currency will liberate the Iraqi economy from the constraints and enhance the value of the Iraqi dinar in the International Monetary Fund.

    The chancellor of the Iraqi Ministry of Finance Zia Alckheon Kurdistan News Agency (Rn) that "the process of removing three zeroes from the local currency will strengthen Iraq's economic position in the international community and specifically the International Monetary Fund."


    He added that the "survival of the current currency and the current status would not address the question of the economic gap taking place in the Iraqi dinar as it will increase the burden on the Iraqi economy."

    And that "the process of changing the currency certainly will take time and money, but is required to remove the barrier between the Iraqi economy and the global economy and to give more than the value of the Iraqi dinar."

    In the view of the central bank to raise the three zeroes from the local currency is a complex process and need to be thorough economic study.

    He expressed the International Monetary Fund in August last support of the Iraqi economy in the event of having a number of economic measures, including privatization of banks and raise three zeroes from the local currency and to meet debt and compensation is the responsibility of Iraq.

    The Iraqi government denied conducting any change in the local currency this year in order to reduce inflation.

    The news has recently indicated that the Iraqi government plans to make changes to the local currency, including raising three zeros in order to reduce inflation suffered by the Iraqi market, as well as add the language Kurdish paper currency.

    The local Iraqi currency has gone through several changes in its history, most recently in 2004 when the former Governing Council replaced the previous currency, which was a symbol of the former regime.

    http://www.aknews.com/ar/aknews/2/196160/

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    interesting language...a mix of lop talk and revalue speak!!!!!

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    Article is about 2 years old, just updated to appear as if it was just released....

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    how many more times are they gonna re-hash this commercial, each time originating from different guys.

    for once in your lives just do SOMETHING and let's all go home.

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    zerooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo ooooooooooooooooooooooooooooooooooooosssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss sssssssssssssssssssssssssssssssssssssssssss!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    A veteran - whether active duty, reserve, national guard or retired - is someone who, at one point in their life, wrote a blank check made payable to "The United States of America", for an amount of "up to and including my life." - That is Honor, and there are way too many people in this country who no longer understand it.

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    Quote Originally Posted by Ringworm View Post
    zerooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo oooooooooooooooooooooooooooooooooooooooooooooooooo ooooooooooooooooooooooooooooooooooooosssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss sssssssssssssssssssssssssssssssssssssssssss!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
    take 3 zero's off that ... or not

    they seem to do that pretty good!

    zero sum game = same thing = same game

    nothing from nothing = nothing

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    It's an old article, nothing will be than this year as it was already said.
    "When you sit with a nice girl for two hours, it seems like two minutes. When you sit on a hot stove for two minutes, it seems like two hours that's relativity." -- Albert Einstein

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    Old article again can anyone find anything positive, PLEASE. It is a saturday morning here in Iraq and I am bored.

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    This isn't an old article , this website doesn't recycle news .

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    Quote-

    The chancellor of the Iraqi Ministry of Finance Zia Alckheon Kurdistan News Agency (Rn) that "the process of removing three zeroes from the local currency will strengthen Iraq's economic position in the international community and specifically the International Monetary Fund."

    end quote

    I don't remember seeing this particular article before either. But I like the idea of them removing 3 zeros to strengthen their economic position in the international community. To me that says take the zeros off the exchange rate to make the dinar more powerful, because taking the zeros off the bills is an even swap, nothing for nothing. enjoy the ride

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    If you remove 3 zeros from the currency you at the same time remove 3 zeros from the rate and exchange and it revenue neutral.

    If you have a 25,000 dinar note it is worth 25,000/1170 = $21.37. If you delete 3 zeros from the 25,000 it loses no value and is still worth $21.37 as a 25 dinar note. What has happened is that the 25,000 dinar note has been divided by 1000. and 24,975 dinar have been taken out of circulation although no value of the money supply has been lost. However at the same time the 24,975 dinar is removed from circulation, the rate is also change from 1170 rate to 1.170 rate. Before $21.37 X 1170 = 25,000 dinar. After the removal of the zeros the rate would be $21.37 X 1.170 = 25 dinar. The exchange with the 25,000 note was 1/1170 = .00086 exchange. With the lopped 25 dinar note the exchange will be 1/1.170 = .86 exchange.

    Before the lop if one had a 25,000 dinar note the exchange would be .00086, the rate 1170 and the value $21.37.

    After the lop one's 25,000 note will be reduced to 25 dinar with a exchange of .86, a rate of 1.170 and the same value of $21.37.

    A lop is revenue neutral as the CBI has explained many times.

    It is impossible to lop the currency 3 zeros and maintain the same value without also at the same time changing the rate and exchange by 3 zeros.

    Its why a lop is used to reduce the currency in circulation. Because at the same time the rate and exchange are also changed to reflect the lop making the action revenue neutral while the convenience of use of the currency is enhanced.

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    Quote Originally Posted by ramacow2545 View Post
    Old article again can anyone find anything positive, PLEASE. It is a saturday morning here in Iraq and I am bored.
    Sure can, Pres. Talabani attended the Socialist International congress on Nov 15th :)

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    Hey SE,
    If they do in fact lop 3 zeroes, and adjust the rate at or close to the dollar, or revenue neutral, do you think that the purchasing power will be overvalued? At their CURRENT economic strength, can they really be worldly recognized at such a value and still be backed by investors, and have the confidence of other countries? Its easy as us investors and speculators to predict Iraq's prominent economic future, because we bought in so cheap and at .0008, surely it can only go up. But what happens after the lop, when revenue neutral kicks in, but room for decline will be available?...We all assume their economy and currency will grow, but are other countries willing to hold on to their current and future Iraq currency and assets, esecially if its lopped and theres no initial gain for insurance?.... Forgive my lacking of economics expertise, Im sure there are simple answers to all my questions, but any thoughts by anyone would be appreciated. Thnx.

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    Quote Originally Posted by dinali's View Post
    Hey SE,
    If they do in fact lop 3 zeroes, and adjust the rate at or close to the dollar, or revenue neutral, do you think that the purchasing power will be overvalued? At their CURRENT economic strength, can they really be worldly recognized at such a value and still be backed by investors, and have the confidence of other countries? Its easy as us investors and speculators to predict Iraq's prominent economic future, because we bought in so cheap and at .0008, surely it can only go up. But what happens after the lop, when revenue neutral kicks in, but room for decline will be available?...We all assume their economy and currency will grow, but are other countries willing to hold on to their current and future Iraq currency and assets, esecially if its lopped and theres no initial gain for insurance?.... Forgive my lacking of economics expertise, Im sure there are simple answers to all my questions, but any thoughts by anyone would be appreciated. Thnx.
    Until or unless Iraq changes its monetary policy the value of the dinar is pegged to the dollar whether the dinar lops or not. The only dinar I am aware of being held out of county is by speculators. Certainly, no county is holding dinar as a foreign exchange asset to back their money supply. The dinar is not even tradable or crediable on any foreign exchange.

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    Quote Originally Posted by Panasonic View Post
    Excellent theory, can't wait to see what actually happens ; )
    Lops are not theories. They are simply a mathematical tool used by Central Banks to reduce the amount of currency without changing its total value. Central Banks have used this tool over 60 times in the last 30 years.

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    Quote Originally Posted by Panasonic View Post
    SE, your summation/theory is based on previous LOPs that have occurred because a LOP has not occurred in Iraq "yet" - you're merely hypothesizing.

    Much like the statement below: It's a theory until it's proven without a doubt.

    "Scientists supposed that large dinosaurs lived in swamps"
    A 3 zero lop is a slang term for dividing the currency by 1000. In all cases of 25,000 currency notes if the 3 zeros are deleted or the 25,000 note divided by 1000 the result will be 25. Thats not a theory or summary, its a mathematical proof. It doesn't matter how many times one divides 25,000 by 1000 or deletes 3 zeros from 25,000 the result will always 25. Its a mathematical proof. Likewise if a Central Bank wants to reduce its currency 10 times it deletes one zero or divides it by 10. To reduce it a 100 times they delete two zeros or divide by 100 etc. The CBI has said it is going to reduce its currency a 1000 times using a three zero lop. You need to tell them that you don't agree based on a scientific theory of dinosaurs living in a swamp which renders their mathematical proof and laws meaningless. You are making accusations like someone on the IIF announced a dinar lop. They didn't, the CBI announced they are considering a lop within a certain time frame, if you think they are lying or what they announced is just a theory your argument is with them. I simply explained how a lop works.

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    worthy of its own thread.....
    Last edited by AbuSpinoza; 11-21-2010 at 05:31 AM.

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    Quote Originally Posted by Panasonic View Post
    I understand all of this, with all due respect I don't need your cached volumes of LOP talk. I'm merely stating the LOP information you have is based on countries that have LOPPED in the past but to date a LOP is not part of Iraq's history. You are forcing a LOP down people's throats based on historical data. Once again, I say this to you, we have had just as many "pro" LOP articles come from CBI reps as we have had "con". This is why I can respect your opinion, because it is just that, an opinion. It is a non-conclusive theory since it has not happened in Iraq.

    PS * The dinosaur ref. was an added feature as I wanted to portray the difference between fact and theory. I thought you were clouding the two together and it might have shed some light on the matter.


    A
    What you need is not my concern and thats your own problem. If you don't agree with what I post don't read it or put me on ignore. Also what I post is not your problem. There are people here who would like to know how a lop works without all the hype. As to the difference between fact and theory, it is not a theory that the CBI has announce it is considering a lop. Its a documented material fact, not a opinion. It will continue to be announced many times to educate people concerning the process.

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    it all comes down to one fact that has been announced, interpreted, hypothesized, published and analyzed-if it is the removal of 3 0's from the currency, it is a lop....if it is 3 0's removed from the value, it is a rv. if it is 3 0's removed from the currency-then the dinar's value is made to be on par with the usd-then we make a little profit...END of STORY-it has been decided-but not implemented yet so we all wait. this should clear it up for the newbies scratching their heads wondering what the difference is.

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