Iraq to remove three zeros from the dinar
The Iraqi Central Bank announced the completion of a plan to remove three zeros from the dinar, replacing current banknotes with new ones. The Bank will re-print 30 trillion dinars (26 billion dollars).
According to Mazhar Mohammad Saleh, an expert in the Iraqi Central Bank, in a speech with the ALHAYAT of London, “our problem lies in the timing of the currency exchange, as we need to select a suitable time for implementing the project without obstacles.”
The Central Bank planned to remove three zeros from the Iraqi dinar, after suffering from inflation and the decline of the currency during the nineties, due to economic sanctions. The value of the dinar decreased internationally to its current value of approximately 1120 dinars per dollar.
In 2003, the Central Bank adopted a new mechanism to maintain the dinar’s exchange rate. It created a foreign exchange auction to sell dollars that Iraq obtained from the sale of oil in the global markets and then transferred to the bank to sell in local currency, which helped raise the value of the dinar over the last few years to more than 2000 points.
Saleh estimated the government will exchange more than 30 trillion Iraqi dinars, or more than $26 billion dollars. The most important change after deleting the zeros, is to reduce the number of banknotes in circulation, simplifying the payment system in Iraq.
Some economists have warned that the process of exchanging the Iraqi currency will be rife with corruption due to the inaccurate structuring of Iraqi banks. Previous attempts to exchange the currency resulted in major corruption, costly to the Iraqi economy. However, Saleh responds that the process of changing the currency in 2004, occurred under the exceptional circumstance of an occupation, was managed by a civil American governor, and was still successful.
The Central Bank sells, through a daily auction, between $150 million dollars and $190 million dollars daily to clients of private banks and the financial companies. (Source: www.yallafinance.com)
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Guess what guys, and gals, all of you are off on your rates, dates, etc, etc. There will be no lop as you like to refer to it, and there will be no RV. There will be an RI to Saddams old rate, because that is the way the big boys set it. You were not suppose to be involved in this, but they have decided to let you stay, so hang on to what you have.
Wow...this last fella is really nuts! The fed does not hold any Dinar...this is another crock of Hooey made to entice you to buy this worthless crap. It is a damn shame that people can post whatever they want online and it is taken as fact. It makes ne sad that something as wonderful as the net is consumed by rumor and porn...lol...ooh well!
This is just another of those rubbish articles about Iraq trimming three zero's from its currency.
Firstly these rumours have been going around for years, and it has yet to happen.
And secondly, website owners who publish these articles know that mentioning a lop causes a great stir and panic, and people read these articles, thus pushing up the click rate and therefore the value of the site because of ad revenue.
Websites publishing these articles are merely acting out the old maxim, 'In a goldrush, you don't sell gold, you sell shovels'.
In this case, websites are selling gossip, and making money from it.
like :)
You can turn in your old dinars. Just go to the Central Bank of Iraq. What? There's no branch in your town? Well, then just go to your local Dinar Dealer. He'll be glad to help you.
Now really, folks, those who buy these silly things are being hoo-doo-ed coming and going. First they sell them to you at about a 40% mark-up, so your "investment" (not) needs to gain 40% just for you to break even. Then, here's the question: IF (and that's a big IF) these things ever gain value, WHY SHOULD ANYONE give you money (as in U.S. Dollars) for them? Say, you have whatever number of dinars which after the RV is now worth one million U.S. dollars. And then, say, I happen to HAVE one million U.S. dollars. here is the question:
WHY SHOULD I BUY YOUR DINARS? I already have a million US dollars. The only reason I would do this is so I could make more money than I have. Which means I'm going to discount your million, and give you, maybe $750,000 for them. Then I can turn around and make a cool quarter million by turning them in for what they're worth.
Get it? These "suckers" are being taken coming and going. And that's only IF the stupid things ever appreciate, which they won't.
As has been said, "You can fool some of the people some of the time..."
Tsk tsk tsk.
Replacing current banknotes with new ones - what happens if you can not trade your 25000 notes in?
if I have a 1000.00 dinar and it changes to 1.00
.....possibly enough to buy a Snickers candy bar...king size if we are lucky!
The value you receive will equal the value you turn in. For example, at the current rate, you turn in 1,000,000 old dinars with a value of $892.86. In exchange, you get 1,000 new dinars with a value of $892.86. Your money still has the same "value."
Second scenario: if you go into a store to purchase say a load of goat feed and the cost is $892.86, you pay 1,000,000 old dinars or 1,000 new dinars. You get the same value, no matter which currency you use.
Those investors that expected the revaluation to increase the value of old currency did not understand basic economics.
Does this mean the dinar I currently own will not be accepted as legal currency? Will I be able to convert it or trade it for the new currency
it will remain the same
Didnt you read the last sentence? They are not auctioning dinar. They are selling USD. Pulling in Dinar.
Good grief people. Read.
The Central Bank sells, through a daily auction, between $150 million dollars and $190 million dollars daily to clients of private banks and the financial companies.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
They sell Dinar daily. Check out this link:
http://www.cbi.iq/index.php?pid=CurrencyAuctions
what man junk is another man treasure Go RV
please clarify. if I have a 1000.00 dinar and it changes to 1.00 will it be worth the same exchange vs US Dollar?
About the same, minus the rate of exchanging currency.
what will it be worth
It will be worth 1,000 dollars or at least 800-900 USD.
1000 dinar minus 3 zeros will be worth 1 dollar. The same amount you paid to buy 1000 dinar.
No because its still 1000 IQD. When you cash it in at the bank you will get the exchange rate of equal to 1000 IQD not 1. 1000 IQD is still 1000 IQD, they are simply removing it from circulation.
Yes, It will be worth $1000.00 USD!
Some people say no, but it is stated in the PLAN! Just hold on to it and you will be very glad you did!!
NO. It will NOT be worth 1,000 USD, an old 1,000 IQD will be worth 1 IQD within the new system, and the exchange rate is NOT 1 USD to 1 IQD.
PLEASE do not make comments like this mistakenly telling people false information that will cause them to make bad decisions without at least doing some research before you post.
So why does the Iraqi Bank continue to auction off worthless currency then...? The more they put in circulation, the more they have to take back.
The fed prints money out of thin air. Iraqis want USD as it is the most valuable currency around even though it is limping badly right now, Once they RV their money, the bank will have 100's of billions of USD in their vault, USD is the valuable currency. The fed holds anywhere from 3-20Trillion worth of Dinars. They paid about 1 dollar for each 4,000 dinars back in 2002. It has revalued since then. The US wants the oil in the ground and wants it denominated in USD to keep us hostage in the US. Huge tax revenues. The Iraqis pull it out and our oil companies buy it and make a profit without the cost of drilling it up and out. In order for their oil industry infrastructure to get back to snuff, billions of USD will have to be invested. Big companies do not want dinars, they want dollars. The oil in the ground in Iraq is said to be in the trillions of $ and with the price of oil in the $100 per barrel price line, it will be worth trillions. Not every dinar will be exchanged for dollars when the Rv happens. It will take time. Money will be made turning dinars to dollars as well. The fed can print all the dollars it wants to without anyone knowing what they do. The more dollars circulating around the world, the less they are worth and the debt is actually less and less. Holders of 10 year Treasuries will be paid in 2011, 2012 2013 dollars who bought in 2001, 2002, 2003. Each year the dollars are worth less and less. 2001 dollars bought a lot more gas and food and car than they do now. It takes 50% to 300 to 500% more dollars to purchase food, gas, yachts, cars, liquor etc today than it did in 2001 2002. Houses are the only thing about the same today as they were in 2001. Treasuries were considered a quaranteed investment back then but no longer but they still didnt pay out 50% in interest over 10 years. The entire war in Iraq was about dollars and oil and they are almost interchangeable and equal. Oil makes the world run and money is the lubriicant to make it run smoothly. And weapons cost a lot of money to produce and make billions for a few and help others make billions to rebuild all the while reducing the population for the elites who are complete cowards afraid of everyone who comes into their presence. Less people, less afraid. True cowards
The fed will throw money at Iraqi after the revaluation to build up their ability to get to the oil at a price. The fed will have a few more trillion in their coffers after the revaluation. Where does it come from? Their basement. Several hundred billion dinar owned by banks and individuals in circulation who will all have to pay taxes on their gains which brings up to 30% back to the fed in taxes-more billions. More and more billions and the money becomes more and more worthless and the amount of the debt is lessened and lessened. This revaluation will put 3 to 20 more trillion dollars into the world economy and cause the dollar to plummet and be more and more worthless. It is a vicious circle. More and more money is needed to keep up with the cost of goods going higher and higher due to a devaluing dollar so they print more and give it away to keep the masses happy, just like they did in Rome and Jordan and Saudi Arabia. But eventually because of real supply and demand, the masses wont be able to afford $10 gas on their welfare payments and SSI payments and wont be able to afford their $2000 one bedroom slum on sec 8 money, which can only be so much money. You then will have hyperinflation as a result and it will cost $500 to buy a gallon of gas and $50 for a loaf of bread.
The axe will have to fall eventually unless the fed collapses and the notes are taken in by the US government and then we will have goods sold to the highest bidder like an auction.
Pretty scary stuff. This Dinar thing has been planned since the 90's or even before then. Wall street saw a gold mine in the middle east in the 70's and wanted the gold. that is why we dont drill here. sure some small companies are pulling oil out of shale in Texas and Montana but phoney regulatons will stop that unless the free people of Texas and Montana tell uncle sam to gth and stuff it. They pull 3-400,000 barrels a day out of these two areas. very impressive.
Any way, there you have the big picture
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