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That's not a twist Panhead, it's a statement by the Central Bank Of Iraq.
The twisting is being done by the people that have been claiming for years that we have no way of knowing how many dinar have been bought back.
It's simply not true. The CBI has records for every single auction and every other redemption of dinar, and they report that it's accounted for in their reported numbers.
That has been claimed over and over and it’s not true.
The Central Bank of Iraq accounts for all currency bought back in the figures they report.
You can claim it’s all a lie, but they do report the munbers.
http://www.cbi.iq/documents/Key_Financial_Indicators_Documentation.pdf
a - Currency outside banks, i.e., the currency component of the money supply as shown in the Analytical Balance sheet (Item 8) which is derived from the following sources (currency put into circulation reported by Issuing Dept. less vault cash(item 8.1 of Analytical Balance Sheet) reported by Research & Statistics Dept.). From December 2003, currency in circulation is the new currency issued by the CBI less redemption of old and damaged new currency notes. Prior to October 2003, currency in circulation is all Iraqi Dinar (other than the 25 swiss Dinar notes) issued by the CBI (both Swiss and Saddam Dinar at face value) less redemption of old and damaged notes and issued currency in vaults of CBI.
Redemption means bought back.
Good point Strong
Still number one story on Iraqi Dinar news search.
http://www.zawya.com/story.cfm/sidZW20100315000097/Iraq%20Ctrl%20Bank%20Plans%20To%20Rebase%20Dinar;%20No%20Time%20Fixed%20Yet
If the rebase decision is taken it means a current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars.
This is a nice looking place.
Do you honestly think for one second that they will pay for those planes with Dinar?
You really think Boeing will accept Dinar for an airplane?
Old Article? LOL
So that's the explanation of this... it was written in 2008?
http://www.zawya.com/story.cfm/sidZW20100315000097/Iraq%20Ctrl%20Bank%20Plans%20To%20Rebase%20Dinar;%20No%20Time%20Fixed%20Yet
If the rebase decision is taken it means a current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars.
Well... maybe some should point this out. How in 2008 did they know the rate would be 1170 now. It didn't become 1170 until 2009.
"the value of the Iraqi dinar which is trading Monday IQD1,170 against one US dollar."
And before they change the story to "It was written in early 2009"
Might as well point this out too. Pretty amazing to write about December 2009 in the past tense.
"The inflation rate fell to 6.1% in December 2009"
How does that in any way at all suggest no lop?
He might as well have stated... "It snowed last night, so no lop"
Some IMF SBA highlights
Or maybe lowlights.
http://www.imf.org/external/pubs/ft/scr/2010/cr1072.pdf
32. The lack of data and large structural changes in the Iraqi economy preclude any meaningful estimation of the equilibrium real exchange rate. A very crude assessment suggests that the dinar is broadly in line with fundamentals.4 With the drop in oil prices, it appears that a possible prior undervaluation has disappeared, and that the dinar could even be somewhat overvalued.
4 Rough estimates based on the external sustainability approach aimed at determining the current account balance that would stabilize the country’s net foreign asset position relative to GDP suggest that the real effective exchange rate is broadly in line with the equilibrium real exchange rate. The current account norm for 2014 was estimated at a surplus of 2.9 percent of GDP. Under current projections, the current account surplus isexpected to be only marginally lower than the norm in 2014.
55. Staff supports the CBI’s intention to continue to manage the exchange rate with a view to keeping inflation under control. Although difficult to assess, the exchange rate appears to be broadly in line with fundamentals, taking into account the expected increase in oil production.
6. With headline and core inflation low, the exchange rate has been stable since the beginning of 2009. The policy interest rate has been reduced gradually to 7 percent. Net international reserves increased to $50.2 billion at end-2008, but have fallen to $44 billion at end-2009, reflecting the drawdown of the government’s deposits with the CBI
Whole lot of posts being deleted over at the other board.
I work as an Aerospace Engineer. I do design work on a computer and work on some pretty big files. So while the computer is chugging along, I have time to read the internet. Only takes a few seconds here and there.
I like informing people of an obvious scam.
Like this.
Iraq has announced removing 3 zeros and making the new dinar worth 85 cents.
There are two outcomes being predicted.
I predict that it is a normal redenomination/lop, just like Turkey and Russia and other countries have done about 70 times in the last 30 or so years, just as the articles state. Iraqis will trade in 1000 of there current dinars for 1 new dinar and that will remove 3 zeros from the money supply numbers... reducing from trillions to billions.
The other prediction being told to people is that Iraq has preannounced a 100,000% increase in the value of the dinar they hold. That they will turn in their big notes for an equal number of smaller notes (25k note for 25K in smaller notes). That will reduce the money supply numbers by not one single dinar, NOT ONE.
Iraq having made this 100,000% increase announcment is still selling dinars for a rate of 1170 per dollar and anyone in the world can get them for near that rate until the announced rate is put into place.
One of those predictions is normal. One is so crazy it defies description.
If I ever venture into another investment similar to this... I hope and pray there will be someone like me there that is very informed about it... and doesn't let the scammers spread misinformation unchecked.
Wayne... what are you talking about? "Telling the leaders of this country:????? HUH?
The article you linked... it is credited to "Dinar into Dollars". They are dinar dealers.
It amazing that you claim I'm trying to decieve.
My articles today were from DOW JONES NEWSWIRE.
Then you post stuff written by dinar dealers?
It's obvious here who's decieving.
No... even back then dinar dealers and their pumpers were writing crap like that to confuse people and put out misinformation about redenominations.
That was written by a lightweight.
So what Afghanistan had 4 different currencies. They could have just done a 1:1 exchange if that was the only reason. They lopped 3 zeros because there had been masive inflation and the exchnage rate had fallen to 50,000 to 1. They lopped 3 zeros and went to 50 to 1.
Russia got their inflation under control before lopping... just like Iraq has.
Sparky... check this out...
This link no longer works, but I bet if you serch Hugh Tant and dinar... the info is in other places too.
http://www.usip.org/library/oh/sops/iraq/sec/tant.pdf
A few highlights.
Brigadier General Hugh Tant, retired, is a career army officer who has extensive experience in financial management. Most recently, he spent five-an-ahalf years in charge of two-thirds ($44 billion) of the Army's budget. He volunteered to lead the currency exchange program in Iraq. He was stationed in Iraq from September 2003 to January 2004. The currency exchange program ran from October 15 2003 to January 15 2003.
Currency exchange was necessary for five reasons; (1) two currencies were in circulation, the old Swiss dinar in the north and the Saddam dinar in the rest of the country; (2) inadequate numbers of denominations existed, the Swiss dinar came in 3 denominations and the Saddam came in only two denominations;
(3) the currency was poorly made and easily counterfeited; (4) the Saddam dinar had been devalued and the public had little trust in it; (5) the presence of Saddam on the currency was inappropriate.
TANT: You had the Central Bank which answered, of course, to Saddam. And whenever he directed, they had to print more money, which was a negative inflationary monetary policy. That was one of the reasons why the currency had to be replaced.
But, in the great majority of the country, they had the Saddam dinar with Saddam's face on it. There were basically only two denominations of that: there was a 10,000-dinar note, which was worth about $5, and there was a 250-dinar note, which was worth about 12.5 cents, 12 cents. The reason its value had dropped so low was because of Saddam’s inflationary monetary policy. In comparison, back in the '80s, before the Saddam dinar came about, the rate of exchange was about $3 to one dinar. But because of Saddam there was now a total upside-down situation where one dollar was worth about 2,300.
So they were using only two denominations of Saddam dinars. the 250 and the 10,000.
So Emma is trying to get you to believe that Iraqis were running around in dirt poor Iraq with only $750 and $30,000 bills.
Here... I found more....
http://georgewbush-whitehouse.archives.gov/ask/20031120.html
"Right now, the majority of notes in the central and southern parts of Iraq are either 250 dinar or 10,000 dinar. Nothing between them."
More...
http://www.iqdclub.com/pages/3/index.htm
The dollar is being exchanged at the time of writing at ID 1500 using ID 250 bills and at ID 2000 using the ID 10,000 bill. The exchange rate is very volatile, from ID 2500 just before the war, down to ID 1000 several weeks back, then up to ID 1650 a few days back
Wayne... where do you get this crap from?
Venezuela was recent lop and this is what they did. Every country that lops has two currencies running for however long the exchange period is.
http://www.reconversionbcv.org.ve/pdf/TripticoColorIng.pdf
When does the transition period begin and how long will it last?
As of January 1st, 2008 the “bolivar fuerte” will start
circulating and for a period no shorter than six months will
circulate simultaneously with the current bolivar; this means that these last ones will continue circulating and people will be able to use them the same way they are used at present. During the transition, the payment of any goods or services may be made with both currencies but keeping the equivalences: if a kitchen costs Bs.F. 800, it can also be paid with Bs. 800,000.
In order to make the learning of the equivalences easier, starting on October 1st, 2007, all goods and services, for example, magazines, menus, school registrations, publicity, classified adds, public services, groceries, among others, should be marked in current bolivars as well as in “bolivar fuerte”. So,
for example, home appliances stores should include in the labels of their products the description of the prices both in “Bs.” as well as in “Bs.F.”.
Jeez… use to be nice to pop in to Dinar Daddy’s site to see what all the pumpers were saying. Dinar Daddy is now charging $15 a month to see all the misleading info.
Wow... mighty quiet.
The pumpers must be on a conference call with Ali right now figuring out how to explain/confuse this latest statements.
Can't get much clearer.
http://articlesofinterest-kelley.blogspot.com/2010/03/iraq-central-bank-plans-to-rebase-dinar.html
If the rebase decision is taken it means a current 25,000 Iraqi dinar banknote will become IQD25, and a dollar will equal only 1.17 dinars.
Currency rebasings are usually monetarily neutral and are introduced to make commercial calculations easier and cheaper. Turkey, for example, knocked six zeroes off its lira currency in 2005. Russia did the same for its currency.
Again... same as Turkey and Russia... NOTHING NOVEL HERE.
Removal of 3 zeros from the Iraqi dinar.
That’s a lop… all by itself, nuff said… but
Currency is currently valued at $ 25 thousand dinars will be 25 dinars, while the dollar will equal only 1.17 dinars.
25 thousand dinars will be 25 dinars and dollar will equal 1.17 dinar (1 dinar will equal 85 cents.… pretty clear
This often cuts neutral monetary terms
Yes… MOST people understand this. Monetary Neutral, no gain, no loss… for Iraqis.
Turkey, Russia…
They lopped, why say this is what they did if this is a “Novel Event”
It is noteworthy that the Iraqis gave out 3 months to replace the old dinars in possession of the new dinar
Sound like they might be getting people ready for another 3 month exchange. Might be trouble for foreign cash holders.
Update: the CBI plans to cut the dinar and the date remains unknown
Source: Dow Jones
(Includes additional comments and details of the new)
By Hassan Hafez
Of the agency, "Dow Jones Newswires"
AMMAN (Dow Jones) - The Iraqi Central reduced the Iraqi dinar, but has not decided yet when daring to move, as reported by the bank in a statement issued the day Monday.
The statement added that the Central Bank underlines its commitment to its projects strategy, notably the removal of 3 zeros from the Iraqi dinar.
In spite of the technical and logistical preparations for the ongoing implementation of the project, but we have not set after the appropriate timing for implementation of the project," adding that the choice of time will not be tied exclusively to the economic, but also the security situation.
On the other hand, the appearance of the denominator, senior adviser in the Central, during a meeting with the agency, "Dow Jones Newswires" that the removal of three zeros will contribute to the upgrading of the value of the Iraqi dinar traded at 1.170 see dinars against the dollar during the day Monday.
In the event a decision was cut, means that the currency is currently valued at $ 25 thousand dinars will be 25 dinars, while the dollar will equal only 1.17 dinars.
The bank said that the removal of three zeros from the dinar, "will contribute to improving the management of currency and facilitate cash transactions," adding that the decision came as a result talks were held with the Economic Committee in the Iraqi government.
This often cuts neutral monetary terms, and depend to facilitate trade accounts and reduce cost. Turkey has embarked on, for example, removal of 6 zeros from the lira in 2005; just like Russia, which has the same step with regard to its currency.
He attributed the reasons for reducing the denominator of the Iraqi dinar to the efforts made by the bank to reduce the high inflation rate in the country. The Hui inflation to 6.1% in December 2009, this apostate, down from record levels reached 60% in late 2006.
In July 2004, the U.S. civil administrator in Iraq, a body that no longer exist today, printed currency as an alternative to the current that was carrying a picture of former Iraqi President Saddam Hussein. It is noteworthy that the Iraqis gave out 3 months to replace the old dinars in possession of the new dinar.
He pointed in the same context that the bank will be forced to print new banknotes in the event the project entered into force.
By Hassan Hafez
(END) Dow Jones Newswires
Copyright © 2008 Dow Jones & Company, Inc Copyright © 2008 Dow Jones & Company, Inc
http://translate.google.com/translate?hl=en&sl=ar&u=http://www.zawya.com/arabic/story.cfm/sidZDA20100315130021539/&ei=E1WeS_PeOIrKNbKs2YkF&sa=X&oi=translate&ct=result&resnum=3&ved=0CFMQ7gEwAg&prev=/search%3Fq%3D%25D8%25A7%25D9%2584%25D8%25A3%25D8%25B5%25D9%2581%25D8%25A7%25D8%25B1%2B%25D8%25AF%25D9%258A%25D9%2586%25D8%25A7%25D8%25B1%2B%25D8%25B9%25D8%25B1%25D8%25A7%25D9%2582%25D9%2589%26hl%3Den%26client%3Dfirefox-a%26sa%3DG%26tbo%3D1%26rls%3Dorg.mozilla:en-US:official%26tbs%3Dqdr:d
What is your point with this?
You can also add Iranian Rial, IRR, and it shows numbers too.
What will happen if they don’t lop.
If they don’t go through with the lop plan… they will just wait and do it later. It will eventually lop.
If they don’t lop, expect the exchange rate to get worse… yes WORSE. All these articles that have come out where economist and others are against the lop, they don’t think the economy is ready for it yet. They are against the currency auctions. Iraq has been using tons of dollars to buy back dinars to keep the money supply in check to keep the exchange rate where it is. That has been at the expense of the economy. These people want Iraq to loosen monetary policy… allow banks to lend a lot more money, allow more dinar into the market to spur the economy. They want those dollars to be spent on the economy instead of buying back dinar. That would be good for the economy, but it will cause the dinar to loose value.
Funny… you’ve been calling this a “novel event” where people would see a 100,000% increase in their investment. Now you find this where they say they might not do it…. And suddenly you call it a lop???? Which is it?
Sparky is right, all this is saying is that the CBI hasn’t OFFICIALLY announced anything yet. But all of the other remove 3 zeros articles are quoting CBI officials and advisors.
LOL... are you sure this was meant for me?
Botat... 10 cents would be a 10,000% increase, 30 cents is a 30,000% increase. You don't consider that huge?
Iraq has announced a Redenomination and a removal of 3 zeros. That is a lop.
Unless they change that plan, that's what will happen.
Botat… I’m afraid what is not being understood here is this.
You do not understand the meaning of “Redenomination and remove 3 zeros”.
There are a lot of people with a vested interest to keep you and others confused so you will continue to hold and buy dinar. But without a doubt, 100% sure, this is a lop.
They will have new bills and coins… the exchange will be 1000 old for 1 new.
Bank accounts will lop also.
That will reduce the M2 from 45 Trillion to 45 Billion.
And currency in circ from 22 Trillion to 22 Billion.
Try paying for either with dinars.
Yes... there are countries out there that have totally given up on their own currency and only use the US dollar. there are many many other countries that use it in addition to their currency.
http://en.wikipedia.org/wiki/Dollarization
There are only a few currencies that are used like this. What makes you think that Iraq... with no economy except for Oil which is sold for dollars... what's going to make people around the world want to hold dinar?
I don’t understand… good one.
Look… most physical currency is NOT held by banks and corporations. I don’t know where you are getting that information from. Currency in circulation is just that… currency out there circulating around. The USA has a little less than one trillion of it, and Iraq has about 22 trillion of it.
HUGE HUGE HUGE demand for dollar world wide. ZERO ZERO demand for dinars world wide, except for dinar speculators.
Now… what you are talking about is M2… M2 is the currency in circulation PLUS a number of different types of bank accounts. Yes a large majority of M2 is held by banks and large corps… of course that’s true because a majority of it is just electronic digits. Obviously you can’t put that in your pocket.
The US has a M2 number around 8 trillion I believe… they also use to report a M3 number, they no longer report it. It is estimated to be around 15 trillion I believe.
Iraq has and reports a M2 number, it is 45 Trillion.
Kuwait… you do realize that Kuwait is still pegged to the dollar don’t you? The only thing Kuwait did was they use to be pegged ONLY to the dollar. They changed it to a basket of currencies. That basket is made up of dollar, euro, sterling, Swiss franc… and I bet the dollar is weighted at about 50% and the other make up the other 50%.
Thanks for helping me understand.
That's common for the US dollar because it is the international currency of choice. Why would any company or bank hold dinar? What business transactions are being done in dinars.
Iraq sells oil for dollars, and that isn't going to change anytime in the near future.
You just posted the fact that there are less than 1 Trillion dollars world wide... and the dollar is THE main international currency... yet you don't see a problem with Iraq having 20 some Trillion.
Yes... the CBI financials says it's billions. But it is 21 thousand billion. A thousand billion is a trillion.
So the CBI financials says it's 20 some trillion... and practically every single one of the redenomination, raise 3 zero, articles talks about the 20 some trillion. Why do you not believe it?
http://en.wikipedia.org/wiki/Highest-valued_currency_unit
http://en.wikipedia.org/wiki/Least_valued_currency_unit
Check out the two links above... a long time ago when I invested in dinar I found those links. I went to each ones central bank web site and found out how much currency they had. I checked M2 at the time, because M2 is actually more representative of money supply that needs to be supported than simple currency in circulation.
Guess what i found. EVERY one of the countries on the Least Valued currency list has an M2 well into the trillions. EVERY one of them.
The highest valued list... they all had M2 in the low billions, 10-30 billion mostly... with the exception of the US and the Euro countries which have low Trillions, but that is explained by the fact that both have 13 trillion dollar GDPs driving demand for the currency.
Again.... WHY are you converting it to US dollars?
The Central bank of Iraq reports that currency in circulation is 21.7 Trillion.
M2 is 45.6 Trillion
http://www.cbi.iq/documents/key_financial.xls
The Kuwait central bank site is down right now so I can’t get the latest numbers… but lets say it 30 billion M3 and 1 billion in circulation.
Again… that 22 thousand times more currency in circulation
And 1500 times more M2/M3
If you don’t believe the Central Bank of Iraq numbers then I don’t know how we can have a discussion at all.
Also... why did you convert the Kuwait dinar to dollars. Why don't you do the same for Iraq.
You won't like the currency in circ numbers comparison at all.
Iraq has $18.5 billion and Kuwait only has about $3.5 billion
M2/M3 is a little better for you.
Iraq has $40 Billion, and Kuwait has about $100 billion.
Brilliant Eddy... you blast me for using Wiki... yet you present nothing that shows their info is wrong.
How about this link
Investopedia... from Forbes.
http://www.investopedia.com/terms/f/forwardmarket.asp
Forward Market
What Does Forward Market Mean?
The over-the-counter trading of forward contracts.
Investopedia explains Forward Market
Forward contracts are personalized between parties and therefore not frequently traded on exchanges. The forward market is a general term used to refer to the informal market in which these contracts are entered and exited.
It's the same thing
Botat... you might want to look up Kuwaits currency in circulation numbers. They have less than 1 billion if I remember correctly.
Iraq 23 Trillion... Kuwait 1 Billion.
That is 23 Thousand times more currency than Kuwait.
More misinformation from the pumpers.
A lot of the due diligence experts are claiming that this “Forward Market” Iraq is talking about means they are going on the FOREX.
Well… it’s amazing just how many times these guys can be wrong… or lie… neither is good for investment advice.
http://en.wikipedia.org/wiki/Forward%5Fmarket
The forward market is the over-the-counter financial market in contracts for future delivery, so called forward contracts. Forward contracts are personalized between parties.
Over-the-counter (OTC) or off-exchange trading is to trade financial instruments such as stocks, bonds, commodities or derivatives directly between two parties. It is contrasted with exchange trading, which occurs via facilities constructed for the purpose of trading (i.e., exchanges), such as futures exchanges or stock exchanges.
So the facts are the exact opposite... the FACTS are they are actually telling you that the dinar will not be on the FOREX.
Yeah… you’re a great guy Wayne.
Har-Shay just showed up on the Dinar boards and never said one bad word to anyone. But because he/she doesn’t believe in your big RV, what do you do.
You insult her/him by calling them a Walmart worker (which is insulting to anyone that works at Walmart or anything like that… nice guy).
And then you follow it up with calling him/her an IDIOT!
Yes Wayne… you’re a peach!
I am truly sorry for your ailments and problems, we all have some I’m sure.
LOL... Wayne... I’m going to do you a huge favor. Please… open up Word or some software that does spell and grammar check. Type your messages in there and then cut and paste them into your responses on here and other places you post.
You have the nerve to call others idiots while your posts show the literacy of about a second grader. It’s truly hilarious… and yet sad.
It has been known as a HARD COLD FACT for about 4 years now that the current Iraqi dinar HAS ABSOLUTELY NO CHANCE of increasing to anywhere near what the dealers and their pumpers proclaim. This thing has never stood a chance of even being worth 1 cent. Selling people on a 1 cent RV would be a huge scam.
Selling them on a $1 to $3 RV is a scam of EPIC proportions!
Yours and the other believers estimates of a currencies worth are off by 100,000% to 300,000%... and you have the nerve to call anyone an Idiot.