OZmosis & Members Discussion on Zeros – From Dinar Vets

Post From Dinar Vets

ZERO DISCUSSION — AGAIN — No pun intended — lol

OZmosis: Article Quote: “CENTRAL BANK DELETED THREE ZEROS from the currency early NEXT YEAR (2014) to eliminate the forged currency & the new project would be ISSUED COINS up. Student Economist Salim Al-daini, the application of the draft Central Bank deleted three zeros from the currency early next year, to eliminate the forged currency in the local market.

He said Al-daini (News Agency): draft three zeros from the currency, deletion would serve the Iraqi citizen in terms of reducing large categories and easily traded, as well as support the economy through the withdrawal of counterfeits, which are widespread in the market.

He added: the project must be applied after you set the kvoaeh management for the Central Bank to be implemented early next year (2014), it is one of the strategic projects in the country.

He noted that the current categories of national currency is easy to damage, forcing the State printing new currencies for every three months and these constitute an additional burden on the State funds for printing new currencies, indicating that the new project would be issued coins up for more than 25 years.
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Read More Link On Right

  The Council demanded that the Prime Minister earlier in the previous administration for the Central Bank to wait to delete the three zeros from the local currency, saying that a large project and needs sufficient time to apply.” END Article Link

OZmosis Comment: Let me get this straight – is the suggestion to remove 3 zeros early 2014 just an opinion expressed by Student Economist Salim Al-daini ?? … or is he saying this is what the CBI intend to do? If so, does this mean the order of events will be:

1. RV now (1:1 sounds good and is also logical for more efficient transition re prices as Iraq already has adjusted to dollar value – it just becomes 1 dinar in lieu of 1 dollar)

2. Then quickly bring out some small denoms as if a cup of coffee will cost 3 dinar after RV – how will they give change of from a 25,000 note…so they will need some coins less than value 1 dinar, some 5 dinar notes, 10 dinar notes, 25 dinar notes, etc etc.

3. From RV onwards – as worn larger value notes flow back to the CBI – they shred them and replace with smaller denoms (no lop re value) but say, replace 1 old 10000 dinar note with 200×50 new dinar notes. And, if they are really concerned about quality of notes – they make better ones that last longer – simple.

4. The cut-off date to cash in larger notes becomes early 2014….it is by then they want all large notes in and they will be destroyed. At that time, the 3 zeros will be gone…ie, removed but by management of a plan to discontinue the larger denominations and all done and achieved without a lop. This makes more sense than the above suggestion by Student Economist Salim Al-daini – or is this what he means by “3 zero’s removed”

I don’t get that bit about “damaged notes” as being a valid argument in isolation for replacing the entire currency – as in every country globally I would imagine that worn/torn/damaged notes are simply taken out of circulation and replaced. For instance the UK pound normally lasts about 12 months before it needs replacement.

Surely the quality of the dinar is as good as the UK pound? For example I have had my dinar quite a while and it is as good as new !!! I would however relate to an argument that Iraq is talking about new currency because they will need some smaller denoms very sooooon – coins etc of value less than 1 ie 5, 10, 20, etc as they will need much smaller coin and note values if the RV results in the dinar being as 1:1 value to the US$..and, lots of new dinar notes in smaller denominations.

DONTLOP REPLIES:  if the cost is more than one dinar  to print a dinar note valued at one dollar . its not worth it to print it .. so it has to be made out of metal . .. the large notes would have to co exist for a time period ,. so they can make change for the 25 k notes ..

 the 25k notes would have to go first .. then the 10 k notes . then the 5 k notes .. then the 1000 kn notes ….you will need the 10 k  and smaller notes during the lifting of the 25 k notes …. after those are gone .. you will need the 5k notes to get rid of the 10 k notes ….

after that they could get by with the 500 notes and the fiftys .. but i think they will be adding  the 100  notes also to the addition of the small denominations which will  co exist …. they wouldnt need them to co exist if they are rermoving them ..

they will simply just cease to exist because of demand .. their wont be any need for the large  notes  any more except for maybe bank  transafers .. which would be done electronically any way ., so they will just become obsolete .. so why keep printing up new ones ..

after an exchange period of a couple years  they will demonetize them .. even though a few lopsters think demonetizing  currency doesnt mean anything … it does .. legal tender laws define  whats legal and what isn’t

why co exist .. why not have an exchange .. they talk about a two year coexistance . maybe not in this peticular article .. but they talk about two years coexistance… they exchanged all the dinars in 2003 in less than 3 months with out banks .. in a war zone

adding smaller notes is necessary if they raise the nominal value ..

 they are going to delete 3 zeros off the nominal value of the dinars . if you have a 10000 note .. that gives you 10000 times the nominal value of a  single dinar .

  .00086  <<<<<<<<<<  nominal  value of one iqd <<<>>>go ahead delete 3 zeros off the nominal value  of the iqd . what do ya get ..   i dont see articles saying they are deleting the amount of dinars you have .. just zeros off the nominal value

this is my favorite one >>> BAGHDAD, April 12 (Reuters) – Iraq has decided to hold off on a plan to knock three zeros off the nominal value of bank notes of its currency because it does not believe the economic climate is suitable, the cabinet secretary said on Thursday.  LINK

Iraq halts plans to cut zeros off dinar currency-cabinet

http://www.reuters.com/article/2012/04/12/iraq-currency-idUSL3E8FC8G120120412

 http://www.reuters.c…E8FC8G120120412

UNCIRCULD REPLIES:  ok, they have already picked up some of the 3 zero notes.  I think they are finding out that there are a lot more out there (in country, and most likely the crooked MP’s & Ministers) and they would like to get a bit more before re-denominating and/or raising the value. 

Heck, they can steal billions of dollars monthly, what part of afford don’t they get?  I guess the part that says that their government is nothing more than a bunch of thugs, and thieves.  So it is greed that has held this up, whether greed for power or greed for money or both.

Getting a grip on the political scene and the corruption (which is rampant) would be the first thing for them to tackle.  Shabibi worked on the project from his end.  The laws, the economics etc etc.  With much resistance I might add from none other than Maliki. 

He kept on pushing Shabibi’s progress back until finally Maliki just decided in order to stop Shabibi from progressing the country financially (securely) he had to trump charges on him to get rid of him.  And he we are waiting on a Turkey (Turki) to make a move. 

But mr turki got in there and enabled Maliki to do exactly what he tried but Shabibi would not let him and that is get his grubby greedy hands on the reserves.  There is one small detail that maliki overlooked, the Feds and IMF are monitoring the CBI. 

This is to protect the money of Iraq from it’s government.  He may get away with it right now but later, he will have gotten away with nothing.  Unless of course they allow him out with a free get out of jail card

ALBUNDY ASKS: dontlop: ” knock three zeros off the nominal value of bank notes of its currency “, I am still confused about this sentence. Does that mean that delete 3 zeros from the nominal value of bank notes ( 25,000 bill delete 3 zeros= 25 IQD ) or the currency’s rate ( 0.00086 delete 3 zeros= 0.86 or Is it one of them=RV ( or both of them=RD )? I hope I was wrong. help me out.

DONTLOP REPLIES:  this is the nominal value of one dinar .. >>> .000865

 knock 3 zeros off the nominal value of one dinar .. .865 per dinar

 did you ever see where they will knock the zeros off how many dinars you have ?

  there have been so many diferent storys about this that no one knows ..  heres a story .. its going to rain , its not going to rain .. end of story ..  is it going to rain ?  lol

 i know they have talked about deleeting 3 zeros off the nominal value .. if that is true .. i think that means one dinar will be worth  86 cents .

 then they would have to add small denominations of dinars to the currency  in exchange for the big notes .they would need small denominations of the dinar  to make change .

 if its the other way .. and they delete how many dinars you have ..  and….  delete three zeros off the nominal value of the dinar. then it will mean your 25k note is only worth 23 dollars ..

   if they delete how many dinars you have  and they dont delete  3 zeros off the nominal value  ,, then they robbed us .lol

 if they just delete the zeros off the nominal value .. that means your 25k note is worth 23 thousand dollars ..  take your pick of the smoke screen they put up .

SANDSTORM REPLIES:  deleting zeroes, is a topic of redenomination.  simply put, you replace with a new currency without three zeroes. i.e. 1,5,10,25,50,100.

 Nominal is face value, the new currency will not have three zeroes.

 Delete Three Zeroes- two exchange rates for local currency.

 old dinar–10,000IQD X .00086= 8.86

 new dinar–10 new dinar X .86= 8.86

 A neutral event. As you see the three zeroes were adjusted on exchange rate.  The zeroes dont come off the old notes,  its just the exchange rate is locked. Then the new dinar, has three less zeroes, but the exchange rate is .86. So an old 10K note and a new 10 dinar, have the same value.