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Hay Wayne, can you do me a favor and get someone to post all my TOU post links on the other board too. I feel so bad for misleading everyone for so long, I'd really feel better if you expose me for what I am over there too.
Sorry Matt and I conspired to have you banned
Think about this with the pumper on the other board.
He claims he is going to sue people who call him a pumper or dealer.
Why is that? If he’s telling the truth and the dinar is truly going to RV 100,000% any day now, then how could it be slanderous to be labeled a pumper or dealer. Pumpers and dealers of a 100,000% increase would be heralded as a heroes. They would be practically god like.
The only way that it would be slander to call him a pumper or dealer of this investment is if the investment itself is CRAP! It’s only slander if he’s lying.
It gets even funnier... now that his "I'll sue you if you call me a pumper rant" got pulled.
This got posted over on Dinar Daddy. Pretty funny stuff
You must be a pumper
If you can take the most minute, unrelated incident and twist it so that it indicates an RV is coming you must be a pumper : Example: I watched TV today,and Rocky Balboa was the name of a character. Iraq has rocks in it, so that’s code for Iraq is RV’ing”,
If you get paid by multiple sites to push the dinar, yet you tell the people on your site that you need donations to (buy a server/take a trip to verify the RV/treat a rare medical condition-cranial/rectal inversion), you must be a pumper.
If you recycle lies to keep sheeple buying dinars, you must be a pumper.
If your website bans any/all who question the constantly changing RV dates, you must be a pumper.
If you’re a non-US citizen yet you claim to be from the midwest, and write an over-priced book that consists of 60% posts from your site, random babblings, and pretentious double-speak, you must be a pumper.
If you use so many different IDs on your sites that you program the chat software to enter different words for specific IDs so you can keep track of where you’re dumping your “intel” at the time, you must be a pumper.
If you suddenly decided to post a BS statement about copyrights on a public forum to prevent others from saving/sharing the lies your IDs spread (even though random data in a public forum can NOT be copyrighted), you must be a pumper.
If you get into staged “arguments” with other site owners who have made so many BS predictions on your site , then ban them after theyve lost all credibility, you must be a pumper.
If you accuse others of bashing when they object to lies being told, then use different, multiple, IDs to comment with insults/threats when others post an actual fact-based article that indicates the RV may not come, you must be a pumper.
If you get to the point where you’ve banned everyone on your site but the multiple IDs you created for your own use, you must be a pumper (but a funny one, because you try to sell dinars to yourself).
Guys, this is just a short ‘you must be a pumper’ list. Im sure we can come up with MANY more because there are so many pumpers around. Please add more.
That post was hilarious. Get this.
He sent it to Dinar Daddy to post on his site, except he changed the name to Phoenix. That’s his pumper name over there.
It got ripped to shreds. Even most of the Cool-Aide drinkers over there were put off by it.
The comments went so bad for him that Dinar Daddy had to pull the whole thing.
What an embarrassment for the guy, that site has many many more readers than over here. He’s humiliated himself.
What he doesn't understand is this.
He’s acting as if this is the first time any country has ever forgiven a debt to another country.
It has happened throughout the history of the world.
Now then. What would piss me off as a country would be if I forgave debt, and then that country turned around and suddenly made themselves instant (as Forrest Gump would say) Gazillionaires. (if that was possible, we know it's not)
Now I know he think it’s the plan that they forgave debt and now are holding dinars waiting for the big RV to get repaid… but if that was true, then why isn’t Kuwait and the other countries that have refused to forgive debt going along with the plan. It would be so simple if that was the case.
The reason is, there is no plan like that. Countries can’t just declare themselves wealthy. It’s a fantasy.
Even more lunacy.
How many times have you been told that Iraq will not lop because lops are only for struggling countries. Not a powerhouse like Iraq!! That has been pumped and pushed repeatedly.
Well check out this list. These following countries are like Iraq, this is a list of the other countries in the world currently under an IMF Stand By Arrangement. Some real powerhouses here.
http://www.imf.org/external/np/tre/activity/2009/123109.htm
Angola, Armenia, Belarus, Bosina, Costa Rica, Dominican Republic, El Salvador, Gabon, Guatemala, Georgia, Hungary, Iceland, Latvia, Maldives, Mongolia, Pakistan, and Romania
Get this, they are now PROMOTING that Iraq is under an IMF Stand By Arrangement.
that is a loan from the IMF.
This is what the IMF says about it.
http://www.imf.org/external/np/exr/facts/howlend.htm
When can a country borrow from the IMF?
A member country may request IMF financial assistance if it has a balance of payments need—that is, if it cannot find sufficient financing on affordable terms to meet its net international payments while maintaining adequate reserve buffers going forward. An IMF loan provides a cushion that eases the adjustment policies and reforms that a country must make to correct its balance of payments problem and restore conditions for strong economic growth.
Are you kidding me... they are promoting that... and at the same time trying to tell you Iraq is increasing it's money suppy over 100,000%.
This is getting funnier by the minute.
You have an anonymous poster on a board telling people they are about to receive a 100,000% or more windfall on their investment… in the face of an announced redenomination that in fact threatens a severe loss of investment.
Now said anonymous poster is threatening legal action under the guise of defamation.
Entertaining if nothing else.
Who is lolo?
Hey... who reported his post. Please don't do that. I know he called me scum. Well, in his on special way, he called me scun... lol.
There is no way in heck I want that post deleted. Those links he put up are absolutely beautiful!!!
That is the Funniest post of all time.
I hope everyone reads the links you posted as being TOU.
Practically every post there is simply a link. I didn’t even add a comment on most of them.
You sir… are priceless.
I see a mod on the other board is still making up lies. Not just about the dinar, but about me also.
This is why I got banned. He deleted a bunch of my post as personal attacks and then asked the admin to ban me. The admin told me I was banned because I had had a lot of post deleted for personal attacks.
When I asked the admin to review the post… they were all restored with the exception of a few. Those few were links to old post by the board liar, which proved him a liar. I didn’t add one word to those couple post.
But as you can see here… http://investorshub.advfn.com/boards/board.aspx?board_id=7851&NextStart=21084
I was banned for having a bunch of post deleted for personal attacks, but then those post were restored.
Interesting huh?
Well, the other board just sunk to an all time low. You know who is now posting Medic chats on the board.
LOL... you understand him??
I can usually read through his illiteracy and tell what he's TRYING to say... but that one stumped me.
"You can not have two currencies on the market at the same time with different values."
That is so absolutly wrong.
EVERY redenomination/lop does exactly that.
They issue a new currency. There is a given exchnage period. some as short as as a week, some as long as a year. During that exchnage period BOTH currencies are valid. Both currencies have a different exchnage rate.
In this case the current dinar will still be worth .00085.
The new dinar will exist side by side with it but will have a rate of .85
Say you go to the market to buy a loaf bread. That bread will either cost you 5000 current dinars, or 5 of the new dinar.
So imagine you pay with a 25,000 dinar note for that loaf of bread. You will get either 20,000 of the currenct dinars or 20 of the new dinars as change.
As the exchange period ends, all currennt dinar will have to be exchnaged for the new dinars, at a rate of 1000 current for 1 new. The currenct dinars will become invalid the day the exchange period is done.
that is why it is described as gradually removing the zeros. It would be a nightmare and probably impossible to do it overnight.
For those that claim currency in circulation is uknown and classified.
FACT: that's a bald faced lie to confuse.
http://www.cbi.iq/documents/key_financial.xls
Line 73, currency outside of banks. Last reported in Dec of 2009 as 21.8 Trillion.
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.
Now that is clear as day to a third grader. Not sure why you are having such a hard time understanding.
The US Fed Res bank doesn’t call it M0 either, they also call it currency outside of banks.
http://www.federalreserve.gov/releases/h6/current/h6.htm
Click on M1 at the top of the first chart. Then scroll down to table 3. The break down M1 and give you the currency part of M1.
It’s currently. It’s currently 864 billion
The 1 beside the word currency… means
1. Currency outside U.S. Treasury, Federal Reserve Banks and the vaults of depository institutions
That is almost exactly how Iraq words theres.
So there you have an absolute comparison.
We have 864 Billion of something that Iraq has 22 Trillion of.
It’s currency in circulation. You can whine and moan, and obfuscate because it doesn’t say M0. You can call those numbers what ever you want to, but the fact is they are both reporting the same thing…. We have 864 billion. Iraq has 22 Trillion
XE.com LOWERS THE BOOM!
http://www.xe.com/currency/iqd-iraqi-dinar
The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system.
Someone please ask the guru on the other board how this fits his prediction.
I see the claim being made that this is not a lop. But the same person is claiming that M0 will be reduced because they are taking the large denomination out of circulation.
Excuse me… but that makes ZERO sense. If you turn in a 25K note and they give you 25K in smaller notes, how does that reduce M0 by even 1 dinar.
The only way M0 would be reduced is if when the current dinar is turned in they don’t give back as much of the new dinar.
Which of course is exactly what is going to happen. 1000 current for 1 new. That removes 3 zeros, JUST LIKE THEY SAY THEY WILL DO.
illegal to export the dinar
http://www.newsweek.com/id/52948
According to Ahmed Muhammad, a deputy governor of Iraq's central bank, roughly half the 4.5 trillion new dinars have been removed from domestic circulation, either stashed away at home or smuggled out for sale abroad. Iraqi officials say it's illegal to export the dinar
10000 dinars will turn to 10 dinars
http://en.wikipedia.org/wiki/Iraqi_dinar
discovered ,that (millions), which is no longer owned only (thousands) of Iraqi dinars
It gets even clearer.
deletion of three zeros from the Iraqi currency will sign a citizen under the illusion of money cash
Expert economic: the deletion of three zeros from the Iraqi currency will sign a citizen under the illusion of money cash
20/02/2010 17:42
20/02/2010 17:42
Dohuk February 20 (AKnews) - The Iraqi economic expert, Saturday, that the deletion of three zeroes from the Iraqi currency will sign a citizen under the illusion of money in cash.
The peace Smeisim told Kurdistan News (AKnews) that "the most negative aspects that can affect the Iraqi citizens in the event of the deletion of three zeroes from the current currency is the emotional impact and the occurrence of the individual under the illusion of money and monetary shock injury."
It explained that "all this will be a result of collision with the value of the new currency after the deletion, which leads him to believe that the value of its assets had fallen by zeroes divided by three."
The Central Bank of Iraq announced last week a plan to complete the deletion of three zeroes from the Iraqi currency in order to restore the Iraqi dinar value against foreign currencies.
On the hiring economists from the countries of Iraq prior to this experience, such as Brazil and Turkey, she Smeisim surprising, "but enough of our dependence on IMF experts so we draw on experts countries that have implemented the solution to the tips of the Fund and what the solution is mainly the same countries that I mentioned, with Turkey and Brazil" .
Just like Turkey and Brazil, they lopped!
Smeisim and stressed that "the most dangerous thing that can be referred to is the cost of printing the currency, because Iraq had bitter experience during the previous regime and the economic blockade since the value of the dinar to its lowest levels of Iraq was not even cover the cost of printing and the Iraqi economy is still paying for it dearly" .
The Iraqi dinar has reached its lowest level against the U.S. dollar in the mid-nineties of the last century when it became one dollar corresponds to more than 3000 Iraqi dinars.
That kinda goes against what some are trying to get people to believe.
Smeisim believes that "with the allegations of government reported a decline in public revenue and the weight of old debts and economic balances, I do not know how the government would take on such burdens may have hidden sources."
And about what can affect the impact of the Iraqi individual myself in case he discovered ,that (millions), which is no longer owned only (thousands) of Iraqi dinars Smeisim noted that "it would be a reflection of savings in the banks, here comes the fears of a slide is a significant segment of retirees will be affected as well as term transactions and financial markets. "
It can't get much clearer than that. They will discover that millions owned will now only be thousands.
And went on to say: "It will need a period to adjust and to absorb the impact on the price of shares and securities and that will affect the stability of the market."
She stressed that "crises of the Iraqi economy carry enough frustration, so the time is not appropriate at all for such a change in particular, and we are on the threshold of a number of the most important Alantkhabyat legislative changes and the withdrawal of American forces."
www.aknews.com/ar/aknews/2/116759/ - 6 hours ago
http://www.google.com/url?sa=t&sourc...17e8xDvCcqUWBw
Redenomination... please read!
Iraq has announced a redenomination. That is a LOP. They don't use the word lop, becuase it's just a slang term. The real term is redenomination, and every article has said the same thing.
Look at this... this is a study of all the lops done in recent history. Notice the title of the study.
Dropping Zeros, Gaining Credibility?
Currency Redenomination in Developing Nations
Remember... this is a study of 70 lops!!! Now open the document and search for the word lop. Not once in the study do they use the word lop... you know why, because the real term is redenomination... and redenomination is exactly what Iraq has said they will do.
http://www.unc.edu/~lmosley/APSA%202005.pdf
That absolutly IS A LOP!! LOL
They are clearly stating that they will REDENOMINATE by "knocking 3 zeros off"
How much morre closely do you need it worded.
Knocking 3 zeros off, Lopping 3 zeros off... that's exactly the same thing.
The dinar's value will remain unchanged, he said.
That is more pfoof that it is a lop.
You have 1,000,000 now worth $850
After it's 1,000 worth $850
EXACTLY like he states, 3 zeros removed, value remains unchanged.
They have announced a Redenomination and are going to remove 3 zeros.
A redenomination means there will be a NEW currency. They have said there will be a new currency with lower denominations. You will have to give 1000 current dinars to get 1 of the new dinars. That's the remove 3 zeros part.
This is exactly the same thing as a reverse split in stocks.
You are buying a currency that will have to be exchanged soon, and the only people who MIGHT exchange it for you are the dealers. And they are going to charge you a big % of your money to do it.
Senior Economist: Raising the zeroes will not improve the value of the Iraqi currency 17/02/2010? - 5:15 ? | ???? ???????: 33
17/02/2010 - 5:15 pm | Hits: 33
".
Said an economic expert member of the Iraqi National Coalition Smeisim peace: "The lifting of the zeroes will not be an improvement in the value of the Iraqi currency as the illusion of the Iraqi individual strength of the currency or to breathe life into the Iraqi dinar."
She told the National Iraqi News Agency / NINA /: "The process of removing the zeroes are the readjustment of the Iraqi currency and beautify its image without improving the real value".
She said: "The nominal value of the standard did not reflect the real value of the currency or power, and, therefore, fall into the trap of illusion citizen cash. When you tell him you will get a salary of 100 thousand dinars, that is the nominal income The income is the amount of real goods and services that that person can get them through use of this income. and then value of zeros here has nothing to do with it as well as if you omit the fact is the same yellow. "
It stated: "The value of the currency is related to the economy as a whole, the situation of scales external deficit or surplus is the most important factor. And the presence of the deficit in the external balances help decrease the value of the currency by increasing the demand for foreign exchange in order to fill this deficit and its obligations . In other words, increased demand for foreign exchange is a direct impact on determining the value of the currency and economic status. "
Reported: "The strengthening of the currency depends on many factors. And playing with zeroes is not to save as much currency as cash to address the mentality of a trader to monetary union, the Iraqi and trying to sow hope in the hearts of Iraqis that does nothing but will not improve the economy and our budget deficit and where this balance of payments is suffering from economic mismanagement in all joints. will not work, but the performance of a new representative first, and least the factual lives of ordinary citizens that make it a target for monetary illusion trap that income improvement and the value was higher than ever before. "
The sources in the Central Bank announced that the end of this year will see the lifting of the zeroes of the Iraqi currency
http://translate.google.com/translate?hl=en&sl=ar&u=http://wwww.alforattv.net/index.php%3Fshow%3Dnews%26action%3Darticle%26id%3D43487&ei=VKt8S6etGdOJtgedi72dCA&sa=X&oi=translate&ct=result&resnum=4&ved=0CC8Q7gEwAw&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%26lr%3Dlang_ar%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DG%26tbo%3D1%26tbs%3Drltm:1
LOL... I guess the dinar dealers and pumpers need to to tell this economist that she is wrong.
Yes... the new lower denomination dinars, the ones you will have to give 1000 of yours to get one of the new.
You made the right choice.
These people are going to loose their butts once the exchange is announced. They are going to have only one option, and that is to sell back to the same dealers they bought from. I bet they'll only pay about $500 per million. That's probably the best outcome they can expect. And that's only if it's a long enough exchange period and the dealers are sure they have a way to get it back into the country.
Do not be surprised if Iraq clamps down on currency re-entering the country once the lop is made official.
The whining and moaning about how Iraq has ripped them off should be entertaining. They will probably never turn against the dealers and their pumpers who sold them on this crap.
LOP 100% for sure.
Delete the zeros of the national currency .. ? Among those considered progressive policy and sees absurdity
?. Aswat al-Iraq: Iraqi Central Bank defended its policy to withdraw cash for inflation by the deletion of zeros from the currency in front of his critics as a policy of "progressive" long-term, with most critics consider to be unit, which the Economic Adviser to the Prime Minister.
. Policy "absurd" the budget will cost a lot to no avail real. ?
”. This is because the appearance of the central bank adviser Muhammed Salih Al-economic policy of the central bank for withdrawing cash from the local market to "inflation suffered by the money supply, which rose from 25 billion dinars in 1980 to 23 trillion dinars, now it is important to reduce," noting that the process of lifting the zeroes are "long-termpolicy adopted by the Iraqi government and the central bank , which will direct the project as soon as the development of the Iraqi economy and this may be this year or next and will probably require more time, depending mainly on the stability for the operation."
Ok... they clearly talk about how the money supply rose from 25 billion to 25 Trillion... and that now it is important to reduce.
Only a lop will do that. If they just exchange large bills for small bills as the pumpers claim, it will not reduce the money supply one bit. If you turn in a 25,000 note and recieve 1000 25 dinar notes in return then the money supply doesn't change. Turn in a 25,000 note for 1 25 dinar note, that reduces by 3 zeros, exactly as they are claiming.
”. Saleh added that "there is no need to rush the process at the moment but at the same time is required because the subject of reform will not change the value of thecurrency , but anything to make them smaller," stressing that Iraq "During the next few years and applied to the new development plan will raise its oil production and increase resources significantly and we therefore need a strongcurrency and low at the same time and easy to handle. "
Clearly says this will not change the value of the currency, Just make it smaller. If an Iraqi has 1,000,000 dinar now worth $850, he will exchnage it for 1000 new dinars and that will still be worth $850.
”. On Alontkadt being sent to the Central Bank because of his announcement to change the currency, Saleh said he viewed the economic future of Iraq "in an optimistic either the failures of the present and the situation is stable, it is something that will not last forever, but the situation is constantly improving," adding that the central ideas of "progressive ideas facing the reactionary want to go back Iraq to thirty years ago. " ??
Thirty years ago Iraq had 25 Billion dinar, that's what they will have after the 3 zero lop.
Criticize the economic adviser to Prime Minister Abdel Hussein, the Iraqi Central Anbuge vision of the nature of inflation in Iraq, and regards as "a misconception of the nature of inflation in Iraq, which he considers the central result of the increasedmoney supply, which is directly linked to the purchasing power of the currency and the ability of per capita income for goods and services", wondering If the "delete the zeros will increase the purchasing power of the citizen? ?
?”. Is that the zeroes are the trap, which was the increase? ".
LOL... OK... think about this statement. If what the pumpers claim was going to happen. If 1 million dinars was going to become 1 million dollars... then this would be the STUPIDEST question ever asked in all of mankind. Obviously he would not ask that question if there was a massive RV coming as being pumped.
He's asking becuase there will be no change, just lopping zeros.
”. He said this action "could have come from a luxury, not economic for a country full of economic problems, her first and do not have another, go to solutions, paper and fake" and that the deletion event scheduled, it "will leave little impact onset where there will be a cash they would not get the level of improvement living and thus begin to calculate the new rates of inflation. "The solution of the problem of inflation Ferry Anbuge should come from" The fact that inflation Iraqi boat comes because of the high costs and the existence of the needs of unsaturated and structural imbalance "is passed through the" operation andinvestment and rebuilding of structures destroyed and production management reflected positively on the standard of living of the individual, either to be deleted is the futility of the zeroes will costthe budget a lot and has no justification for the time being. "
Again... no impact, will just cost money to do it.
Would anyone say that if the dealers and pumpers were right?
”. And stresses businessman Jassim Al-Aradi the importance of "non-launch the process of deleting zeros from the currency only after clarifying the concept and its way through the media extensively to educate citizens about the rules and deletions to prevent exploitation by some operations on the black market because of lack of awareness," adding that the operation "will not change the force per capitapurchasing power will not affect the general situation in Iraq. " ?
LOL... Sounds like this might be more needed on dinar baords in the USA. Again... will not change the purchasing power.
”. Aradi and hit the ideals of "the Turkish experience in the deletion of zeros, which came after the country experienced economic crises, followed by a boom became looking for the strengthening of itscurrency , especially after the desire to enter the European Union," adding that the operation in Iraq "needs a more stable economic situation than it is now. "As for how it sees the entire process of deletion Aradi noted that it" is being gradually by injecting a certain amount of criticism is the category of dinars, equivalent to one thousand dinars to declare clearly that it would not be of value above or below AZ of dinars to the Atstgl on the black market because of the ignorance of citizens so "in addition to that the deletions" are within a few years to withdraw the same amount that was issued but a newcurrency to be changed completely, "a process" slow and gradual, not like changing the currency because we're not going to new version, but just delete the zeros only. "
Same as Turkey... it's a lop, not an RV as some continue to push.
Look... if this was being seen in Iraq as an RV... there would be caos in the streets, people would be going crazy doing everthing they could to get dinar. The street price would have already skyrocketed. That is not happening. The only place this big RV lives is in the criminal minds of dinar dealers and their pumpers.
http://translate.googleusercontent.c...b7elec5LH6PG8g
"Some have said.... " That really means... The dealers and their pumpers have made up...
Rumor is the othe dinar board is being ruled by a guy who works with a dinar dealer.
The rumor is substantiated by his own words.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29238332
"Just finished with a Chat with Ali. Told me to report that he has filled all orders up to this point tonight."
Yes... one of the new dinars. One that you will have to give 1000 of your dinars to get. Hence lopping 3 zeros.
And also no change in value from what you have now.
From that link...
"This proposal by the Ministry of Finance to the Central Bank of Iraq was not affected increase or decrease but it is just delete the zeros vocation not only the case in many countries"
It is not an increase or a decrease in the value of the dinar, it is just removing zeros.
You will either have to sell on e-bay to people who don't understand what is happening, or you will have to sell back to a dealer for substantial fee.
Those are the two best options.
You might be stuck with worthless paper.
LOL... ok... I'll ask. If that's not a lop, then what is it?
Can you please tell us what a redenomination is?
Apparently this redenomination will be different than the other 100 or so redenominations that have happened. It will be different than Turkey, Russia, and Brazil, which they used as examples.
Tell us please, what will happen?
This is how it was explained about a year ago.
The Central Bank of Iraq Central Bank of Iraq Central Bank of IraqCBI Iraq | Financial Services News | Profile | Officers » Research
has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank said Tuesday.
"We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes," Mudher Qasim, the bank's senior advisor, told Dow Jones Newswires in an exclusive interview.
"The process is progressing and we have taken some steps," Qasim said. "We will issue a decision in due time."
Qasim didn't give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken.
Iraqi Finance Minister Bayan Jabor said his ministry had suggested to the central bank to take off three zeroes from the current Iraqi dinar banknotes. "The Central Bank Governor (Sinan Al-Shabibi) has informed me that the bank is in the process of taking that decision," Jabor told the state-run al-Iraqia Satellite Channel Monday.
"The Central Bank of Iraq Central Bank of Iraq Central Bank of IraqCBI Iraq | Financial Services News | Profile | Officers » Research
supports what the finance minister was saying," Qasim said.
If the rebase decision is taken, it means a current 25,000 Iraqi dinar banknote will become IQD25, for example.
Tuesday, the Iraqi dinar traded at IQD1,200 against the dollar, according to a trader in Baghdad. When three zeroes are knocked off the Iraqi dinar, a dollar will equal only 1.20 dinars.
Currency rebasings are usually monetarily neutral and are introduced to make commercial calculations and cash dealing easier and cheaper. Turkey knocked six zeroes off its lira currency Jan 1, 2005, for example. Russia did the same for its currency. "In a country like Iraq where cash consists 80% of money dealing, we need smaller bank notes," Qasim said, adding that current Iraqi banknotes were difficult to store and need strict security measures when moving money from one place to another.
There are now some 20 trillion Iraqi dinar banknotes in use in the market, which is a very big amount and if Iraq knocked 3 zeroes it would become IQD20 billion which is a reasonable amount, he said.
Qasim also said one of the reasons for rebasing the Iraqi dinar is because the bank has managed to reduce the country's high rates of inflation. The inflation rate fell to 14.7% in May this year from a record high of 60% in late 2006.
In July 2004, the now dissolved U.S. civilian authority in Iraq decided to print the current Iraqi banknotes replacing those used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.
"This time we aren't in hurry, if it takes two years to swap the new currency with the old one, then let it so," Qasim said.
The current banknotes were printed by Britain's De La Rue Plc (DLAR.L), the world's biggest commercial printer of bank notes.
Jabor said in November last year that the central bank would rebase the dinar in early 2008.
-By Hassan Hafidh; Dow Jones Newswires; + 962 799 831 831; hassan.hafidh@dowjones.com
(END) Dow Jones Newswires
19-08-08 0720GMT
Imagin that. A dinar dealer that doesn't understand REDENOMINATION.
The new currency will have a new value.
The current currency will continue to have the same value it has now, it will simply become invalid at the end of the exchnage period.
Iraqis will be able to exchnage 1000 current for 1 new... therefore lopping 3 zeros from the currency.
That is how Turkey, Russia and Brazil did it... and they have used those countries as an example of what they will do.
Not only is that how those 3 countries redenominated, it's how EVERY country that has ever redenominated has done it.
Only difference is the amount of zeros.
If this is not a lop, then why are these two statement included.
monetary reform after hitting a currency issued in circulation now 25 trillion dinars, while in 1990 was about 25 billion dinars and this in itself calls for the deletion of zeros
Why would they point out the 25 Trillion dinars as a reason needed to do this. If they were just taking the big bills out as some have claimed, that would not reduce the 25 Trillion. A 3 zero lop, a 1000 old for 1 new exchange, which is what this is, will reduce the 25 Trillion to the 25 Billion figure he talks about.
many countries replaced their currency and benefit from their experiences in this area, including Turkey, Russia, Brazil and others
Those countries all lopped, nobody made a penny off of any of them. Why o why would they use those countries as an example?
Isn't it so nice of the Iraqis to give us this heads up. Give everyone in the world about 10 months notice to save up and buy all the dinar they can... then we'll increase the value of it over 100,000%.
What a swell bunch o guys those Iraqis are.
And those dealers... who are sitting on Billions... they could be Trillionairs. But out of the goodness of their hearts. They will continue to sell us over $1,000,000 worth of dinar for a measely $850.
I'm almost brought to tears.
Why did all those banks stop dealing in dinar?