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For 3 years they have said they will issue a new currency and lop 3 zeros. They have not announced when, and they will not pre announce it. The official announcement will probably be made a few days, maybe up to a full week prior to the exchange taking place.
The last currency exchange in Iraq lasted 3 months… I would expect the next one to be about the same.
If this happens and there’s a 3 month exchange period… the only way to get rid of it will be to sell it back to dealers who can get it back to Iraq quickly. If the dealers decide to take the risk of buying it back hoping they can get it exchanged in Iraq… they will rake you over the coals to do it. The value will plummet the day the lop is announced. The amount it plummets will be determined by the exchange period. If it’s a year, it won’t plummet too much… if it’s only a couple months, it will fall dramatically.
I just posted an article about the Iran lop. Not that Iraq will do the same… but Iran gave 7 days to exchange all currency and put a cap on the amount allowed to be exchanged. They basically made a large percentage of their currency worthless.
This is the risk you take holding dinar.
Don’t say it won’t happen. 70 some countries have done exactly that in the last 30 or so years.
Not one has ever RV’d like the dinar dealers/pumpers want you to believe will happen in Iraq.
Exactly Strong. The chance of the dinar free floating on the FX… ZERO CHANCE.
It will not happen.
The GCC currency that they are talking about joining. That’s the five or so middle east countries that will have a joint currency. That currency is slated to be pegged to the dollar. They have stated that there is a chance that currency may in the future float on the FX. I read recently the GCC currency would not exist until 2013, then today Kuwait has said that it could take up to 10 years to get the GCC currency started.
Kate… I got rid of my dinar. But I can’t tell you to get rid of anything your son gave you. I would suggest you have your son come here and read the information I’ve posted… then you and your son can make the decision together.
I don't know about you... but I'm picturing Wonder Woman when she posts... so I like it.
No... I got out when they started talking about issuing a new currency and lopping 3 zeros. To risky from that point on to me... plus with the huge supply numbers they have, a huge move up in value just seems unrealistic. I still say 10 or 20% is possible... but I don't see more than that. So… high risk, low reward at this point in my opinion.
I still believe they will issue a new currency and lop zeros. I don't know when... they may wait until they join the GCC and make it part of that move... but I believe it will happen.
You call it being hard on the dinar. To me it’s just disseminating facts. I had over 10 million dinar at one time. No one wanted this to be true more than I.
When I started researching this, I was hoping to find facts that would support a huge RV, or even a huge slow grow. But that’s not what I found… if you read my post you’ll see the facts I found. But remember… I didn’t go looking for negative facts… I had 10 million dinar, I wanted it to RV.
Bringing up these facts got me banned from the dinar sites… that said a lot about those sites.
I spent so much time researching all this stuff… that’s why I’m still interested in it.
No grudge, not trying to get even. But I will admit I’m not a big fan of the people pushing these crazy rumors.
It was quite a while back... but I think he posted under his company name... DinarTrade, or maybe DinarTrader. He didn't post a lot.
There are different types of pegs. There are Hard pegs (fixed), Dirty pegs, Floating pegs.
The dinar is not truly pegged… a peg would mean they would announce a rate, or a rate range, and it will remain at that rate or in the pre-set range.
The dinar technically is on a “managed float”. The CBI controls the value.
A true float the value is controlled by the free market.
The thing is… the CBI is managing it as a peg. The proof is the last 9 months. The $ has crumbled… but the dinar has maintained the same value against the $. The dinar has lost ground against other currencies. It’s acting as if it’s pegged.
The reason for this… Iraqs currency is backed by foreign currency reserves. Probably 99% of those reserves are dollars. That’s what they sell oil for, so that’s what they have. They could convert those dollars to Euros if they want, but they are not as of yet.
So as the value of the dollar sinks, the value of the reserves which back the dinar sink, so the dollar and dinar stay relatively the same.
Just common sense huh?
Can you list for the board the other middle east oil producing countries that have free floating currencies on the FX?
Any middel east country that floats?
I explained it a bit here.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=42992384
Medic works with Ali. He's the admin on a number of Dinar forums. He is the admin on Ali's forum. They work together (Ali pays Medic) to pump out rumor after rumor. Medic has even admitted Ali is his source.
Ali and a few of his pumpers use to post on this board. But becuase ihub wouldn't ban me, they went off to greener pastures.
Go to their forums... be nice... try to question them. You will be banned.
The dollar is down about 20% since March... why hasn't the Dinar moved one single bit in that time?
I'll answer that... the dinar is backed by and pegged to the dollar... therefore, as the dollar goes, so goes the dinar.
To inform... I'm just posting facts and figures.
Think about this. I very seldom give my opinion on the dinar. I seldom say what I really think about this investment. The majority of my posts are facts and figures. Those facts and figures don’t paint a rosy picture… so I’m labeled a hater and a naysayer.
The people that sell and pump the dinar… they have no facts and figures to back their claims. The numbers they do produce are so thin a 3rd grader can poke holes in them. They claim Kuwait has a $3 rate… therefore Iraq should have the same. Come on… get real. Currency is valued by supply and demand and the dealers/pumpers refuse to even address the supply side of the equation. They have no answer for it. Even questioning them about it on their sites will get you banned. Their only answer so far has been that it’s a lie. So they want to base an investment on the HOPES that Iraq is lying to the world about how much dinar they have. The majority of their information is unfounded and comes from so called “sources”. For 5 years these “sources” have been wrong.
Yet people still believe them.
The worlds GDP is about $60 Trillion.
The high side of the Iraq GDP estimates are about $100 billion.
So Iraq's percentage of word GDP is .166%
That’s not 1 percent… that is one and a half tenths of one percent.
Please explain how a country with that tiny fraction of the worlds economy is going to have 3, 4, or 5 times more currency than the rest of the world combined. And that’s the low end of the estimates. If you believe the 3.50 rumors, they would have 15 times more currency than the rest of the world combined.
So you would be happy if Iraq values their currency so that they have a M0 of $15 Trillion and a M1 of $24 Trillion, while the rest of the world combined has a M0 of $5 Trillion and M1 of $20 Trillion?
So Iraq would have a M0 3 times larger than the rest of the world combined?
Yes… I can see where you would be happy… but the rest of the world might have a bit of a problem with it.
North Korea RVs
This what the press call an RV?
http://www.washingtonpost.com/wp-dyn/content/article/2009/12/01/AR2009120101841.html?wprss=rss_world
That’s interesting. You claim it would be a great expense to print and distribute a new currency. I think it cost $300 million the last time they did it.
But you don’t think it would be any expense for them to RV 31 Trillion dinars already in the hands of people.
And just for a second… let’s assume this mythical RV did happen. They would still have to print and distribute new currency… unless you think the people of Iraq will be walking around with $25000 bills (or $75000 bills if you believe 3:1) in their pockets.
So… from $1.50 to $3.50
http://www.cbi.iq/xl&wr/key%20financial.xls
Line 65… Iraq has “Currency outside of banks” (That’s M0) 21 Trillion
Look at line 72… Iraq has an M1 of 32 Trillion.
So $1.50 would give them a M0=$31.1 Trillion and M1=$48 Trillion
$3.50 would give Iraq a M0=$73.5 Trillion and M1=$112 Trillion
http://dollardaze.org/blog/?page_id=00023
The whole world combined as of now.
M0 $5 Trillion
M1 $20 Trillion
I guess that makes me a “Naysayer”
All that time? There's like 1 post a day here on average. How much time do you think that takes?
Other currencies... there could be a huge flight to dollars soon. Not that I recommend playing it.
Also... are you claiming there is a difference between "lifting" and "dropping" zeros.
They also use the term "raise" and "remove"... they all mean the same thing, they are all a lop. None of those things are a huge RV.
Iran has not lopped yet. They have announced they will lop, but they are waiting for inflation to drop first.
http://www.presstv.ir/detail.aspx?id=106378§ionid=351020102
The top Central Bank official added that while the decision is final, the administration would not implement the measure until the country's inflation rate has slipped further down.
Which I'd like to point out is the exact opposite of what the dinar experts have been saying. I've read a million times that countries only lop if they have high inflation. Wrong... countries lop because of high inflation, that's what ruins the value of the currency, but they try to wait until inflation is under control before actually lopping.
Iran has been talkintg about it for years. Nigeria hes been talking about for years. Venezuala years. The first Iraq lop article came out in the summer of 2006, so that is 3 and a half years.
Not sure where you are getting your information from… but many countries have talked for years about lopping before doing it.
They said back in August that it would require the passage of a law.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40549659
“Advisor, Central Bank of Iraq the appearance of Mohammed Saleh, said that the deletion of zeros from the Iraqi currency will depend on the long-term monetary policy, indicating that this step requires the issuance of laws and legislation before the foot as part of the strategy for the management
of the currency in Iraq.”
Also… it’s pretty ironic that you say none of the countries that lopped had the #3 oil reserves… well, in some list Iran is the #3 country in oil reserves… and Iran has been discussing lopping zeros from their currency. Venezuela, which is #7 on the list is talking about lopping zeros. Russia, which is #8 has already lopped zeros. Nigeria which is #9 was talking about lopping zeros.
Every other country that has been in this situation that restored the value of their currency. Every one of them did it the same exact way.
They issued a new currency and lopped zeros.
It’s an opportunity for dealers to pump out multiple RV rumors tied to it. They’ve been discussing article 7 for years and dealers have already linked rumors to it… and will continue until 7 is lifted.
But… just like the hundred or so other events they have tied the mythical RV to over the years, it will pass and nothing will happen to the dinar… because it means absolutely nothing to the dinar.
Afghanistan lopped 3 zeros to get to .02
They were just saying this in August
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40549659
I don't see what you are talking about. Can you please copy and paste a link.
The dinar is not a hoax, it’s a legitimate currency.
The notion that the dinar will increase 100,000% or more is a scam of epic proportion.
Can you please provide a link of this article you speak of… Condoleezza and .83.
The Central Bank of Iraq will be the first to announce any change in the dinar. The dinar value is fixed and controlled by the CBI.
Forgot to add.... when they do issue the new currency. Anyone holding cash will be facing a huge risk. If it's a short exchange period (last time they gave 3 months) no banks will touch it. Cash holders will have to sell back to the same dealers they bought from. The dealers will gouge them on that transaction even worse than they gouged them when they purchased.
Sorry to say... the dinar is going nowhere. It might move 10 or 20 percent, but there will be no huge move like being talked about. It's all dinar dealers and their paid pumpers putting out rumors and people falling for it. There is a MASSIVE supply of dinars and it explains exactly why the value is where it is now. They will eventually reduce that supply by issuing a new currency and doing a 1 for 1000 swap. (3 zero lop).
Don't take my word on it. Read this. This is from a Central Bank of Iraq Senior Advisor. He says has said a number of times, and continues to say they will issue a new currency and lop 3 zeros. This was back in August.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=40549659
That's been out for a year and a half.
I guess the retirement party is on hold?
Not necessarily true.
The dinar is pegged to the dollar, and is supported by foreign currency reserves which are US dollars held by the Iraqi Central Bank.
If the dollar collapses, that means the value of the dollars they hold to back the dinar collapse.
Iraq would need to un-peg from the dollar and peg to the Euro (or their currency of choice) and then also convert their foreign currency reserves into that currency to really gain from a collapse of the dollar.
On the other hand… as the dollar goes down, Oil goes up, so Iraq would be getting more dollars. They could add those to the currency reserves to back the dinar, but the extra dollars would probably be needed to fund shortfalls in the budget due to the declining value of the dollar. So that sounds more like a break even event.
I also find it funny that Ali saying one thing to people like your… all the while he’s working behind the scenes with pumpers on different dinar boards helping to spread these $3 rv every week rumors. I know that for a fact.
There’s also a former contributor to this board that can attest to Ali being involved with the rumors going out on dinar boards. Not sure how much he’s willing to share though.
Yes... that is part of M1
Good info here.
http://en.wikipedia.org/wiki/Money_supply
M0
Laura has ten US $100 bills, representing $1000 in the M0 supply for the United States. (M0 = $1000, M1 = $1000, M2 = $1000)
Laura burns one of her $100 bills. The US M0, and her personal net worth, just decreased by $100. (M0 = $900, M1 = $900, M2 = $900)
M1
Laura takes the remaining nine bills and deposits them in her checking account at her bank. The bank then calculates its reserve using the minimum reserve percentage given by the FED and loans the extra money. If the minimum reserve is 10%, this means $90 will remain in the bank's reserve, and the remaining $810 can be used by the bank as lending money. The M1 money supply increased by $810 when the loan was made (assume no further loans); money has been created. (M0 = $900, M1 = $1710, M2 = $1710)
Laura writes a check for $400, check number 7771. The total M1 money supply didn't change, it includes the $400 check and the $500 left in her account. (M0 = $900, M1 = $1710, M2 = $1710)
Laura's check number 7771 is destroyed in the laundry. M1 and her checking account still have $900 because the check is never cashed. (M0 = $900, M1 = $1710, M2 = $1710)
Laura writes check number 7772 for $100 to her friend Alice, and Alice deposits it into her checking account. M0 still has that $900 in it, Alice's $100 and Laura's $800. (M0 = $900, M1 = $1710, M2 = $1710)
Laura deposits her paycheck for $5,000 in her checking account. That part of M1 money came from her employer's checking account. (M0 = $5900, M1 = $11210, M2 = $11210) [M1 = $1710+$5000+0.9($5000)=$11210]
M2
Laura writes check number 7774 for $1000 and brings it to the bank to start a Money Market account. M0 goes down by $1000, but M2 stayed the same, because M2 includes the Money Market account, but also everything in M1. (M0 = $4900, M1 = $6710, M2 = $6710)
Wed has come and gone in Iraq... Thurs is the last day of their week. Fri and Sat are their weekends.
The link that I put up is through Sep, 2009
http://dollardaze.org/blog/?page_id=00023
If you can find something more recent, or even anything that disputes the numbers, I'd be happy to see it.
Remember though... the US has less than $1 trillion currency in circulation. The US has about 14 or so Trillion in M3, which is currency in circulation plus electronic currency.
Most of whats been added lately has been to the electronic money. They're saying "We're printing money like crazy"... but that's just a figure of speech.
So the US has less than $1 trillion in hard currency... and that currency is used all over the world. Iraq has 20 trillion dinars, that have no use anywhere but in war torn, dirt poor, no economy outside of oil (which is dollars) Iraq.
Even 50 cents gives Iraq a MO, currency in circulation, of $10 trillion. That's still twice as much as the rest of the world combined.
Does that sound realistic?
World money supply numbers.
http://dollardaze.org/blog/?page_id=00023
The whole world combined...
M3- $60 Trillion
M0-Currency in Circ- $5 Trillion
Iraq has about 40 trillion M3 and 20 trillion in M0
So if they revalued that currency to $3.47
That would mean that Iraq would have an M3 of about $140 trillion... or about 2 1/2 times more than the rest of the world combined.
MO, currency in circulation, they would have about $70 Trillion... or 14 times the rest of the world combined.
LOLOLOLOLOLOLOLOLOLOLOL... I can't stop laughing... LOLOLOLOLOLOLOL.. oh wait... people actually believe this will happen... that's not funny. That's sad.
It's just as true as what you posted last week.
"My friend, who has 12 million shares, says this is the week, or atleast this mth.
He said this should have happened in Aug but didn't because of China. Not sure what he means by that."
That was an outright lie made up by Medic and Ali. About the 100th time they have done so.
Your friend who told you this latest thing. Why didn't you post where he got the info from? I'm sure you asked him where he heard it from didn't you?
Is that the latest tale from Medic & Ali?