Replies to post #23665 on Iraqi Dinar Discussion Board (IQD)

[FX35]

That's a sham.
Once I got to this I stopped.
(2) We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills) and (4) privately held physical currency sold to increase the foreign currency reserves.

Anyone so clueless of currency in circulation numbers doesn't deserve the time of day.
Foriegn Currency Reserves of other countries, electronic??????????????? LOL
Currency that has not been release????????? LOL
Privately held blah blah blah.... what the heck is he talking about?

This sounds like a dinar dealer interviewing himself, pretending to be an economist.

[Botat]

Ema although much of this makes in logic sense the majority of analysts saw the Dinar prewar only actually worth about 1.50. Now I like your scenario better, but the reality of it will fall back on fair market value. Saddam had the Dinar overpriced so to say. I think the 1.50 mark is reasonable to start having it float to a possible higher level. I still believe that even though they will eliminate the higher notes they will do as you have said and remove them gradually so if 1 iqd = 1usd then 25k IQD note would equal 25k usd. Good post though. Your teacher seems to know a little, but a lot of it is still speculation.

[sparkplug]

Ema very interesting article-
I'm wondering why paragraph 3 tells the theory of how (we really don't want it to go)! ie. reverse process of old dinar exchange. In his example the iraqis turn in a 25k note and get a 25 dinar note in return worth $25 for the pre rv notes, and the 25k note gets destroyed, then laughs about a lop, but the iraqis only have 25 dinar = $25 worth of dinar from their 25k note. OK then now its 1 to 1 roughly.
Then part 2 has US speculators turning in 10k notes for a bit less than $10,000. Iraqis get screwed? That won't happen! He contradicts himself you follow. Some of these brainiacs?? lol. Am I missing something?


(3) We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddams picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.