Replies to post #7150 on Iraqi Dinar Discussion Board (IQD)

[Aerospace]

1260 is the exchange rate that the budget was set on. According to this source they are now targeting 1250. The $1.26 rumor is ridiculous. It’s based on the budget number of 1260. Coupled with the Minister of Finance's suggestion last June of raisng 3 zeros from the Dinar.

There is a whole lot wrong with that though.

First… even if it was the exchange rate they were going to remove the zeros from it would be the $.00079 number and not the 1260 number.
Second… the Minister of Finances suggestion was to raise zeros from the dinar… there were many articles that all interpreted it as a zero lop from the currency, your 25000 note would be worth 25 new dinars.
There were ZERO articles that interpreted the other way.

http://www.iraqdevelopmentprogram.org/idp/news/new1297.htm
Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said yesterday.
Senior government and central bank officials have said the proposal has been under consideration for some time to make one new dinar equal to 1,000 current dinars, a move that would bring the currency closer to parity with the US dollar.

CEO of Al-Warka Bank Mr. Saad al-Bunnia
http://www.americancontractor.com/2007/05/american_contractor_email_inte_1.html#more
“If it was not for the daily intervention of the central bank of Iraq in selling in the range of 500 million dollars per month, one would expect the exchange rate to reach as high level as 5000 dinars to the one dollar.”
“It has always been the case since many decades ago that Iraqi currency is not allowed to be exchanged or exported outside Iraq. The law is still on now. Nothing deters the Iraqi businessman(smuggler ) from looking at an opportunity and grasping it which will generate him huge profits. Even with sadam stringent fist and control could not stop the smuggling of the Iraqi dinar before the invasion of Kuwait (as after wards there was no value to the Iraqi dinar).My advise to those Iraqi dinar speculators is that they are taking the risk of by buying Iraqi dinar because I really do believe that the currency will be changed in the near future once the government is stabilized and settled and also there is a large number of fraudulent currency moving in the economy in which it will be difficult to control. The reason for that falls in two points. The first point is that the central bank of Iraq is putting an RFP to the supply of printing money machines. The second point, there is no signature of the governor of the central bank of Iraq on these notes which by law is not acceptable.”