Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by cigarman

read this guys post,
Secret is easy look at the article. It talks about "rampant inflation" like Russia in the 1990s. Check the facts Iraq does not have rampant inflation. The article states the smallest denomination note is 250 dinars but I hear there are 50 dinar notes on the street and there are also 25 dinar coins that are also denominations. The IMF agreed to a SBA with Iaq in Dec 2005, if Iraq needed economic boosts why haven't they utilized one cent of the SBA? Don't forget the President can authorize the use of the ESF (Exchange Stabilization Fund) to shore up Iraqs exchange rate and also the IMF can utilize ESF (Exogenous Shocks Facility) funds to also help. Not to mention the DFI will most likely be turned back over to the GoI after July 17th and then theres the whole monetizing of the oil which Iraq can now use toawrd its exchange rate. The oil sales up until the DFI is released go into the DFI which is extensively monitored by the IAMB and is to be used exclusively for reconstruction not exchange rate shoring. Don't even get me started on the fact that Iraq has secured 80% debt reduction worldwide.

Bottom line.....Iraq has ABSOLUTELY no justification of a zero lop on their currency and as a member in good standing with the IMF they will not be allowed to lop ANY zeroes off their currency. If Iraq does chose to take this drastic and un-called for measure they will undoubtedly have chosen to move away form IMF membership which creates a economic collapse for Iraq. Without IMF membership the SBA would need to be repaid (easy enough, its unused), the Paris Club agreeement would be null and void as well as the WB support. Nuff Said.
My thoughts...so relax it is just an article."
not sure if i can doo this but i thought it important

No you can do it. This should go over very well with the readers. I for one had the thought of the null for the Paris club agreement. The other you mentioned, just blew me away and educated me on the others. So thank you from me too, for your wisdom. I can now sign-off with easy and go watch some tube. cigarman, when this think hits send me your address. I would like to send you some good cubans. (unless you prefer others) I will be able to offered them then. See you all later.

Yes Libby! I completely understand how you are feeling...to tell you the truth, when I read it I thought "UH-Boy!"

They are having an ABSOLUTE FIELD-DAY with that article over on IIF...that forum gives me a head-ache at times! lol!

BUT! It just wouldn't make sense! Cigarman...amazing post...Mike, as always! I think of the Iraqi People and for the few that may have 25,000 dinars TOTAL ...to have them be told that "Oh! By the way...you only really have 25 dinars now..." Think about it! Some prices have been raised already...how can their currency get 'chopped'? Seems absolutely rediculous to me.

That would be like all the prices being raised here in the U.S. and then G.W. announcing that "Oh! Didn't I tell you? We decided to remove a zero from our bills...that's really only a $5 dollar bill now!"

That's just what's rolling around in my head about this at the moment! Just common sense is all...and Cigarman brought up a WICKED point...80% of Iraqs debt has been forgiven...think of the global uproar if the reval was a lop!

Tiff

It was a shock at first sight for sure... BUT.. I after a second look, it really is just the good news we expected and not a "lop" at all.

They will be (or already have) printing new smaller denomination notes, and AFTER THE REVAL, a NEW one dinar note will have the same value as the current (pre reval) 1,000 dinar note. The "lop" folks seem to think that we would have to exchange our existing notes directly for new notes with 3 less zeros.. just not what they are talking about.

Anyway, my heart is beating ok again. Hope that's true for all the others here too.

Adster with the angel on his shoulder,
Your dear wife still feeling good about the 28th? How about you?
And Monica, if everyone that wants to buy the first round does buy a round at some point in the festivities, no one is going to draw a sober breath for a week. At least.
You all are great. when I get home from working my buns off, hot and tired and ready for a more prosperous experience, it's a relief to get on this forum and read the latest. Thanks everyone.

Abbey & Tiffany,

You have not fully read my post........

Lopping 3 zeros at the SAME TIME as a reval at 1:1 would INCREASE the average Iraqi's buying power, not decrease, as I have demonstrated with the 25,000 example.

Cigarman, that was a good and informative post. Cannot say that I understand it totally though.

Just so you all know guys and gals, I'm not trying to derail the train, just trying to be realistic.

I really do hope that it revals at 1:1 as it is so my bunch of 25,000's are all worth $25,000... but I just have this niggling doubt.

Regards
Neil

Couldn't have said it any better Kristen

Speaking of sobriety, I think it's time for another cold one HAHAHA.

Cheers all,

Rob

Originally Posted by njd2004

Abbey & Tiffany,

You have not fully read my post........

Lopping 3 zeros at the SAME TIME as a reval at 1:1 would INCREASE the average Iraqi's buying power, not decrease, as I have demonstrated with the 25,000 example.

Cigarman, that was a good and informative post. Cannot say that I understand it totally though.

Just so you all know guys and gals, I'm not trying to derail the train, just trying to be realistic.

I really do hope that it revals at 1:1 as it is so my bunch of 25,000's are all worth $25,000... but I just have this niggling doubt.

Regards
Neil

Neil, you are not the only one with doubts.

The article says they are considering "redenominating" the dinar," and also makes reference to "removing the inflation-generated zeros from its currency." I'm sorry, but to me this just does not sound good for dinar investors.

Maybe another article will come out soon contradicting this one....but for now I feel rather deflated.

Obviously some kind of change is going to happen soon....so we will won't have to wonder much longer how this is really going to pan out.

Caroline

Help.............

Anyone here know the way to get ahold of Bruce for dinar. I never used him, so I don't want to refer anyone personally, but a few references would be nice for someone who asked me via PM and I didn't have info.

Thanks, Mike

Hey Neil... I don't like to shoot messengers regardless of the message as long as we are all on the same train trying to get to the same place..... and I think we are... This particular subject has been dis-sected pretty good in the past and keeps coming back to the same bottom line... lopping just wouldn't benefit the Iraqi people in any way or the rest of the world that is involved to various degrees. We are all just abit sensitive to the thought that all our energy and $$ might be on the wrong track.. so also understand our temporary moments of panic...
Many in this forum seems to be well informed so we are not just hearing what we want to hear but is based on good research and logic... when a confusing tid-bit comes in... people here are good at looking at the big picture and putting it in its proper prospective.. I really hope they are right and I am choosing to trust their logic.. although I for one want to look at anything newsy from all angles so there are no surprises... Thanks again everyone for your imput.. Tiffany your zero-ing in on the debt relief was a good point...
Libby

Originally Posted by njd2004

Unfortunately, I still see zero lopping as distinct possibility, and nothing I've seen or heard has convinced me otherwise.



Constructive comments only please..........

Regards
Neil

I am sorry to report that our worst fears are now a reality :(

BAGHDAD - Iraq is considering redenominating the dinar, printing new banknotes to remove inflation-generated zeros from its currency, the finance minister said on Thursday.

Senior government and central bank officials have told Reuters 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 U.S. dollar.

Asked about such a suggestion in an interview on Arabiya television, Finance Minister Bayan Jabor said: "This is the ministry's suggestion to the central bank. We think in the long term it will be for the benefit of Iraq."

Jabor said surveys indicated popular support for the move. The oil-rich nation's currency was once worth more than $3, he recalled, before the ruinous wars and international sanctions during the rule of Saddam Hussein.

There are currently about 1,450 dinars to the dollar, a rate that has been relatively stable since shortly after the U.S. invasion in 2003. At that time new banknotes were issued by the U.S. occupiers to remove Saddam's image.

Other nations that have been through rampant inflation have followed a similar course, notably Russia in the 1990s. Until the 1980s, many prices in Iraq commonly also used the fils. One dinar equals 1,000 fils. The smallest denomination note today is 250 dinars.
(c) Reuters 2006.

http://s3.phpbbforfree.com/forums/ur...m/id/13738902/