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Thread: Delete the zeros of the Iraqi currency pending the formation of the government and the parliament's decision

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    Default Delete the zeros of the Iraqi currency pending the formation of the government and the parliament's decision

    Delete the zeros of the Iraqi currency pending the formation of the government and the parliament's decision



    24.11.2010
    Faris Omar
    Over time the Iraqi dinar was one of the strongest currencies in the Middle East. The value of the national currency with the height of the Iraqi oil boom during the second half of the seventies, while the Iraqi dinar exchange rate more than three dollars for dinars.
    Today, it seems as if this number belongs to another century and not before one generation only. The international sanctions imposed on Iraq after its invasion of Kuwait in 1990 and the wars that went on Iraq unleashed rampant inflation, came on the value of the Iraqi dinar has become even mobilize citizens Slalhm dinars to buy a loaf of bread.

    Despite the improved situation is relatively the Iraqi dinar exchange rate now is still more than a thousand dinars to the dollar. Causing this figure various difficulties in trade prompted the Iraqi Central Bank to think about dropping zeros from the currency. But political and security developments kept the idea to the shadow Phanzot waiting for the right time.

    The day after the agreement of the political blocs on a formula for sharing power and functions of the House of Representatives directly work out the central bank idea to delete the zeros of inclusion and shake off the dust to start translating them into reality after the formation of the new government and submitted to the House of Representatives.

    The central bank adviser and director of the Department of Planning and Statistics and Studies in the Bank the appearance of Mohammed Salih said in an interview with Radio Free Iraq that the national currency lost value in connection with the phase of economic decline, and it was time to rectify this situation in line with the stage of investment and economic recovery is expected.

    The Chancellor stressed that Mohammed Saleh deletion of zeros from the Iraqi dinar is part of the reform of the currency management system in preparation for the next stage, referring to the difficulties caused by the cluster size of cash now.

    He said Mohammed Saleh complete preparations for the implementation of the project to delete the zeros of the Iraqi currency, but added that this project of national interest to the country and the people and therefore it needs to support the legislative and executive branches and requires careful procedures.

    He pointed out that the decision by deleting the zeros will be followed by a period of awareness to dispel fears and shed light on the fact that the repair procedure is designed to facilitate the exchange will not affect the incomes and wealth.
    He acknowledged the central bank adviser retardation Iraqi banking sector in general and need to be developed in a protracted process, calling for reduction of the dominance of government banks.

    Counsel noted Mohammed Saleh, said that private banks despite the presence of 37 or 38 banks, including the contribution to the GDP contribution is not significant.

    Faced with this situation the central bank adviser said the appearance of Mohammed Saleh, said that the goal of fiscal policy in the next stage is to build a financial and banking system, calling for a competitive private banks merge with each other and raise capital to create a strong banking institutions provide better services and more.

    Estimates that the Iraqi Central Bank to the amount of Iraqi dinars in circulation rose from about $ 25 billion in 1980 to about 27 Trliuna at the present time it has increased any and eighty thousand times.

    Details in
    the audio file , which contributed to the correspondent of Radio Free Iraq in Baghdad, Mohamed Karim

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    "He pointed out that the decision by deleting the zeros will be followed by a period of awareness to dispel fears and shed light on the fact that the repair procedure is designed to facilitate the exchange will not affect the incomes and wealth."

    doesnt sound like a rv to me........

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    Is it just me but all the threads are in one long line except the replies!! what have I done wrong?

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    Quote Originally Posted by lglwzrd View Post
    "He pointed out that the decision by deleting the zeros will be followed by a period of awareness to dispel fears and shed light on the fact that the repair procedure is designed to facilitate the exchange will not affect the incomes and wealth."

    doesnt sound like a rv to me........
    Please explain why it doesn't or what the RV would sound like. Cause, with all the "removing zeros" articles, we maybe in the "period of awareness to dispel fears and shed light on the fact that the repair procedure is designed to facilitate the exchange will not affect the incomes and wealth."

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    Default Now keep in mind this is just a thought!!!!!

    Quote Originally Posted by MartyChubbs View Post
    Please explain why it doesn't or what the RV would sound like. Cause, with all the "removing zeros" articles, we maybe in the "period of awareness to dispel fears and shed light on the fact that the repair procedure is designed to facilitate the exchange will not affect the incomes and wealth."
    Economic Expert: The process of deletion of zeros from the currency is an important step will lead to economic recovery

    Posted: November 21, 2010

    Between academic and an economist at the University of Karbala, said that the process of deleting three zeros from the Iraqi currency will lead to currency appreciation and to increase the purchasing power of citizens, ……… The deletion of three zeroes from the Iraqi currency, which intends to apply the Central Bank of Iraq became a target and a national demand as a benefit of the Iraqi economy.

    He added: Iraqi currency must be stabilized and take its place with the power of the Iraqi economy ……… pointing out that the central bank’s move is a step towards the correct solution of the Iraqi currency and the Iraqi dinar ……. noting that the first steps is to issue two classes of currency and one paper of a class of one and the second category of a thousand dinars….. but not more than this step for the year or two ……

    He explained that the citizen has to know that the deletion of zeros would have been useful and beneficial because it will carry papers, reviews are few and raise the value of the currency and increase purchasing power and restore confidence in Iraqi dinars, policy of balanced economic and financial, as will step into an increase in the national currency,

    http://www.alsabaah.com/paper.php?so...age&sid=111701

    Following are a couple of partial articles I have found searching IIF postings….

    06/26/07
    The statement said Mr. Zubaidi. The value of the Iraqi dinar is related to the monetary policy and the political responsibility of the Iraqi Central Bank and the Ministry of Finance responsible for fiscal policy.

    He added, but I proposed to Mr. Governor of the Central Bank, Dr. Sinan Shabibi need to raise the value of the Iraqi dinar and return to normal through the raising of three zeroes him!

    Voadeni governor well in the expanded meeting would be held next month to study the proposal by experts in this area of the Iraqi Central Bank, Ministry of Finance and the Commercial Bank to the effect that the proponents get equal value of the Iraqi dinar to the American dollar and this goal we will strive to achieve that, God willing

    06/29/07
    The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars. This was pre 1980 before Iraq became involved in three destructive wars that at one time led to the currency's value dropping to a level of 3,000 Iraqi dinars to one US dollar. The proposal has the support and approval of the World Bank.

    A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar. He explained that the financial authorities were set on holding a meeting next month to discuss the matter. The meeting is to be attended by experts and specialists from the Ministry of Finance, the Iraqi Central Bank and the Commercial Bank .

    Just a thought, …… are they saying in these articles that they are going to have two sets of bank notes (for a time period the rest of this year and next year). One set will have the power of 1, meaning the new lower denomination, say a 25 banknote is 25 dinars….. the second set (1,000) is the already existing 25,000 banknote which is in the second class as stated above and the 3 zeros deleted makes it also 25 dinars, same with the 10,000 = 10 / 5,000 = 5 / 1,000 = 1, until the 000 notes are all taken out of circulation, which will take some time to do so (2010 –2011), …. At the same time they are going to raise the three zeros from the value…. Today it is (1 divided by 1170 = 0.0008547) raise the three zeros from the value and you have 0.8547 making it more valuable…. 25 dinars (@ .00008547) = $0.02 vs 25 dinars (@ 0.8547) = $21.37. Over the years they have been stating they want the dinar to be par with the USD. This is only 15 cents ± difference. I have also read about 3 or 4 years ago, (and some of you old timers might remember this) that the CBI (Shabibi) and MOF in an interview wanted to return the value of the dinar to the citizens and in the same article said “delete the 3 zeros from the banknotes raise the 3 zeros from the value” (don’t remember the exact wording) this was sometimes made in the same statement in an article, at the time it was confusing because of translation, “delete – raise”, but now it seems to be making more sense with more info being released…..

    These articles say remove 3 zeros (1,000 to 1) making 25,000 banknote 25 dinars. At the same time increasing the value of the dinar….. What?????? This doesn’t increase its value, and its buying power for the citizens……. Unless you raise the 3 zeros from the value also….. (interpretation remove, taken, raise, delete: all meaning the same thing?) 25,000 banknote = 25 dinar and 0.0008547 value equals 0.8547 after raising the 3 zeros….. so 1,000,000 dinar now 1,000 dinar equals $854.70...... , average income of an Iraqi worker is 5,000,000 dinar per year remove 3 zeros 5,000 X 0.8547 = $4273.50 US…… (Today’s 5,000,000 X 0.0008547 = $4273.50 US) Par to the dollar….

    And there’s more:

    News Alaguetsadipalmsdr: Dar Al Hayat - 20/11/2010

    it stressed that the cancellation of zeros from currency is a national project strategically to reform the system of currency Iraqi ……..He said the Executive Director of the Association of Iraqi private banks Abdul Aziz Hassoun told «life», that the intention of the Central Bank of the deletion of three zeroes from the national currency requires careful consideration, in order to avoid chaos and confusion in the commercial market,

    http://www.iraqdirectory.com/Display....aspx?id=14288

    Delete three zeros from Iraqi dinar
    November 22, 2010

    The newspaper quoted "life" of London for a Chief executive's Bank "guidance," Abdul Aziz al-Hassoun, the job step, referring to the "it needs to be studied carefully in order to avoid chaos and confusion in the market,

    http://www.moheet.com/show_news.aspx?nid=414812&pg=31

    Remove 3 zeros from the dinar (1,000,000 divided by 1000 = 1,000) and from the economy and traders confusing to the people of iraq, as stated in some of the articles…… 25,000 banknotes now are 25 dinar (after 25,000 divided by 1,000), now it effects the economy and traders causing confusion……

    As stated in the article posted here by scooby, the exchange will not affect the incomes and wealth. Using the info above from the articles combined: today’s loaf of bread in the open market is 12 dinar (1 cent US), so its effect on confusing the economy and traders meaning they also would have to delete 3 zeros from their prices, making a loaf of bread 12 divided by 1000 = 0.012 dinar a loaf. 0.012 dinar X (applying the above) 0.8547 = 0.01 cent US making it par with the US dollar,…. gas is about 60 dinars per gallon (5 cents US), making gas 60 divided by 1000 = 0.06 dinar per gallon. 0.06 dinar X 18 gallons = 1.08 dinar, 1.08 dinar X (applying the above) 0.8547 = 92 cents US to fill their tanks, notice that 60 dinar (5 cents) X 18 gallons = 0.90 cents US, making the dinar par with the US dollar….. an other example a coke or pepsi is about 375 dinar in open markets (32 cents US), so its effect on confusing the economy and traders meaning they also would have to delete 3 zeros from their prices, making coke or pepsi 375 divided by 1000 = 0.375 dinar per….. 0.375 dinar X (applying the above) 0.8547 = 32 cents US, making the dinar par with the US dollar ….. making 1,000,000 dinar divided by 1,000 = 1,000….. 1,000 X (apply the above) 0.8547 = $854.70 US….. now Iraq keeps its reserve and does not go broke paying out to an RV and slowly raise the dinar back to $3.33 per 1 dinar…. Making 1,000,000 dinar divided by 1,000 = 1,000….. 1,000 X 3.33 = $3,330 US….. Iraq saves ($854,700 – 3,330 =) $851,370 per million dinar in payout….. and the people of Iraq are back to 1 dinar = $3.33 as pre-war market….. We still make money just not the millions we wanted…….

    if this is not done with the economy and traders also, then a loaf of bread would be (1 to 1) 12 dinar / $12 a loaf, also a gallon of gas would be (1 to 1) 60 dinars / $60 USD a gallon, or a coke / pepsi would be (1 to 1) 375 dinar / $375 USD…..

    Don’t bash me, Tell me I am wrong and tell me why…… just trying to look at all options and scenarios
    Sometimes, when you cry...no one sees your tears.
    Sometimes, when you worry...no one sees your pain.
    Sometimes, when you're happy...no one sees you smile.
    But fart just ONE TIME.…

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    The way I see it is 25,000 x 00008547 = 25 x 0.8547. simple math, so dropping three zeros does not increase the valve or change the buying power of Iraqi citizens. Investors will not cash in because they will not be making any money. If they raised the value to 100 dinar per 0.85 cents (US) or 0.008547 per dinar, you would have lots of people exchanging their dinars. At 0.008547 per dinar, 1,000,000 dinar would be worth $8,547.00 (US). Would I sell my dinar for that? You bet I would. I might keep some in reserve, but I would sell most of it and get off this slow moving train with a profit.

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    At the current rate 1170 nock the 3 zeroes off is 1.17 to the $ with 27B NID in circ and $50B reserves they could go from 1.17 to 1.85NID to the $

    ie $50B divided by 27B NID after the 3 zeroes removed.

    I read that they were going from 27T in circ to 15B so

    $50B divided by 15B after lop = 3.33NId to the $

    I also think that a rate increase (other than lop) would not come untill all the 3 zeroe notes are back in and the Iraq public are used to the the new 000 zero reduction unless it was small to fight inflation.

    EB
    A day without laughter is a day wasted: Charlie Chaplin.

    NO RV TODAY! MAYBE TOMMOROW!

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    It is only in dinarland (ie the BS dinar sales sites and the dinar forums) that any kind of multi-thousand percent rv possibility exists.

    They must be roaring with laughter down at the cbi, thinking of the many thousands around the world, hanging on every press release, every tiny bit of news, trying to sniff out their fortune.

    Face it.......... the fabled rv, ain't gonna happen.

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    Quote Originally Posted by English Bob View Post
    At the current rate 1170 nock the 3 zeroes off is 1.17 to the $ with 27B NID in circ and $50B reserves they could go from 1.17 to 1.85NID to the $

    ie $50B divided by 27B NID after the 3 zeroes removed.

    I read that they were going from 27T in circ to 15B so

    $50B divided by 15B after lop = 3.33NId to the $

    I also think that a rate increase (other than lop) would not come untill all the 3 zeroe notes are back in and the Iraq public are used to the the new 000 zero reduction unless it was small to fight inflation.

    EB
    So there will not be any instant millionares from being a dinar holder?

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    Quote Originally Posted by 24mm exposed grid View Post
    It is only in dinarland (ie the BS dinar sales sites and the dinar forums) that any kind of multi-thousand percent rv possibility exists.

    They must be roaring with laughter down at the cbi, thinking of the many thousands around the world, hanging on every press release, every tiny bit of news, trying to sniff out their fortune.

    Face it.......... the fabled rv, ain't gonna happen.
    Why are you here, if you are so confident of this?

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    Quote Originally Posted by English Bob View Post
    At the current rate 1170 nock the 3 zeroes off is 1.17 to the $ with 27B NID in circ and $50B reserves they could go from 1.17 to 1.85NID to the $

    ie $50B divided by 27B NID after the 3 zeroes removed.

    I read that they were going from 27T in circ to 15B so

    $50B divided by 15B after lop = 3.33NId to the $

    I also think that a rate increase (other than lop) would not come untill all the 3 zeroe notes are back in and the Iraq public are used to the the new 000 zero reduction unless it was small to fight inflation.

    EB
    Bob... problem with that... everyone gets rapped up in the currency in circulation numbers. It's really the entire M2 that Iraq supports at 100%, and last time I looked that was about 55 Trillion.

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    The Iraqi Dinar Sucks. Lol - there is NO RV planned only a lop of 3 zero's. I could be wrong, but folks, your 1 million dinar is now only worth (in the up and coming) 1 thousand dollars. Some of you made a profit by only paying around $500.00 per million in the very begining, everyone else who spent around $800.00, well, yeah - go buy some tape and glue and get your walls ready for the paper! hahaha, too bad, I had hoped for much better. Oh well, as long as the Iraqi Government hopefully gets themselves together and the war stops, that is one thing that counts also.

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    0.87 lol

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    Quote Originally Posted by fb481777 View Post
    The Iraqi Dinar Sucks. Lol - there is NO RV planned only a lop of 3 zero's. I could be wrong, but folks, your 1 million dinar is now only worth (in the up and coming) 1 thousand dollars. Some of you made a profit by only paying around $500.00 per million in the very begining, everyone else who spent around $800.00, well, yeah - go buy some tape and glue and get your walls ready for the paper! hahaha, too bad, I had hoped for much better. Oh well, as long as the Iraqi Government hopefully gets themselves together and the war stops, that is one thing that counts also.
    Flip flop flip flop......Which way is the wind blowing today...

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    Eb... "I read that they were going from 27T in circ to 15B so " That is an interesting statement. Surely there would be one hell of a shortage of paper cash if the value is what it is today... Speaking of... are all the 25,000k notes dried up on the streets in Iraq. I heard the banks were not reissuing (handing out) large notes, ie. 10k,25k...
    "yadda-yadda" "Prada-Prada"

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    Quote Originally Posted by Bubblincrude View Post
    Eb... "I read that they were going from 27T in circ to 15B so " That is an interesting statement. Surely there would be one hell of a shortage of paper cash if the value is what it is today... Speaking of... are all the 25,000k notes dried up on the streets in Iraq. I heard the banks were not reissuing (handing out) large notes, ie. 10k,25k...
    If they lop that is 27T to 27B if then then have 15B in circ where has that gone or more importent who is not going to be cashed out???????

    are they estimating that 10-12B is out of country and not getting returned???

    Are they simply going to Burn 10-12B..........but they cannot destroy whats in circ and they would have to replace what is handed in, so seems they are estimating 10-12T will not be handed in ...............that's alot!

    Some thing does not add up


    There GDP is $60+B and that is mostly from oil sales in $ so a Circ of 15B NID at 1.17 to $1 seems ok

    JMO

    EB
    A day without laughter is a day wasted: Charlie Chaplin.

    NO RV TODAY! MAYBE TOMMOROW!

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    How long does it take to get a post approved on this site?????

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    Dinars out of the country are at serious risk of becoming worthless if you ask me.
    what, no blini?

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    IMO Iraq's wealth has never truely been disclosed to the public. I think that was for debt forgiveness reasons. Iraq has a lot of resources, bank accounts ect. We have only found bits and pieces.They are worth alot more than they are telling.

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    Now that's a "FIRE"

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