Lop? Red flag?

Finance Committee Member: Iraq’s procedure to drop zeros from currency will start this year
Posted: July 27, 2013 in Iraqi Dinar/Politics
Iraq: the start of procedures to delete 3 zeros from Alamlha the
July 27, 2013

BAGHDAD, Iraq – said the Finance Committee representative in Iraq, said the central bank, according to the communications of the official start of this year procedures deleting three zeros from the local currency, saying that it would lead to the development of cash transactions and international economic, in a new development at the level of currency Iraq, which has suffered large waves of inflation and the decline in exchange rates.

It quoted “IMN” official member of the Finance Committee, Abdul Hussein al-Yasiri, saying that he is supposed to begin preparations necessary to delete the three zeroes from the local currency, adding that the local currency “will reduce from four billion units to one billion units, which will make a smooth flow in the process of transfer of the currency. “

Yasiri between the Finance Committee “to make changes to support the local currency because of the economic importance of the country.” The central bank says that the deletion of zeros is part of a plan to develop its monetary policy and currency management reform.

The CBI had said last August that he plans to delete the zeros from the Iraqi dinar to facilitate financial transactions carried out through cash in most cases.

Among the difficulties faced by Iraq if they wanted to embark on the deletion of zeros from the dinar is pulling about 30 trillion dinars in circulation in the Iraqi market now, then get rid of them and replace them with a new currency.

===

Baghdad, Iraq –Iraq’s parliamentary Finance Committee that the Central Bank, according to official correspondence, will start this year with three zeros deleted from the local currency, saying it will lead to the development of international economic and monetary transactions, in a new twist in the Iraqi currency, which suffered waves of inflation and exchange rates.

“The Iraqi media network,” the official, a member of the Finance Committee, Abdul Hussein Al-yasiri, said that he would begin preparations for the deletion of three zeros from the local currency, adding that the local currency “will cut 4 billion to billion, which will make a smooth transfer currency”.

Yaseri that the Finance Committee “supports the changes to the local currency because of the economic importance to the country.” the Central Bank said that the deletion of zeros is part of a plan to develop monetary policy and currency management reform.

The CBI had said in August that it planned to delete the zeros of the Iraqi dinar to facilitate financial transactions made through criticism most often.

Among the difficulties facing Iraq if he wanted to delete the zeros of the dinar is pulling about 30 trillion dinars circulating in the Iraqi market is then discarded and replaced with a new currency.

http://bit.ly/1c037j3

About these ads

Share this:
Tumblr
More
Comments are closed.

Or rv?

When is the official start of this year?

Their fiscal year starts Jan 1.

I found this phrase interesting:

adding that the local currency “will reduce from four billion units to one billion units, which will make a smooth flow in the process of transfer of the currency. “

It appears in both versions ... I'm guessing that they are referring to the actual number of bills in circulation, but it does not seem to add up. I would think the piece count, especially in a LOP would remain roughly the same. For example, instead of using a 25,000 dinar note to pay for groceries, you would use a 25 dinar note. different denominations, but the same quantity of bills needed.

its all rubbish .they really have no clue . everyother day iit seems they are comming up with different things. it seems they could not fifght there way out of a paper box if they tried

Yeah it didn't add up to me either Kevin... However to me this has lop written all over it...

Any way you read this, it sounds like we are a long ways off.

Unless it meant as a reduction from 4 to 1 before deleting the zeros ?

Ie reign in 3/4 of the currency in circulation to 7.5 trillion (from 30)

It still reads lop to me though

Andy, define LOP.

LOP, or loss of principal. That's where a sovereign gov't literally drops the (3) zeros on the larger denomination notes, and a 25,000 dinar note becomes and is treated as a 25 dinar note, thus a loss of principal

Has any country ever done that before?  What did Kuwait do when they reinstated their currency?  

If it went down like that all the countries holding Iraqi Dinar, including the US who liberated Iraq, get stiffed.  I just have a hard time thinking that will happen.

Has any other country done that before? Come on Waco no disrespect... But do your home work and don't get completely wrapped up in it all....

Thanks.

No, no country in Iraq's situation has lopped. Yes, I know that there have been LOPs, but in every case, those countries were dealing with out of control inflation, high deficits, and little if any reserve. None of those conditions fit Iraq. Inflation is controlled, they are running a budget surplus with the lowest debt ratio in the Middle East, and their cash and gold reserves are huge.

They had inflation under Saddam, but that was driven by the sanctions, not by any underlying financial flaw. Then after the war, the new currency was put into place with, IMO, an artificially low rate. Is a LOP possible? Sure, you don't need to be an Einstein to figure that out. Is it likely, IMO no, but even IF it occurs, we stand a solid chance of turning a very nice profit. Personally I think we will see an RV. Not because of some secret agreement, or the UN, IMF, or any of the other alphabet soup of entities said by some to be involve. Simply because it will be good for Iraq, and they have indicated time and again that they want to see values back to where they were pre-Sadam.

From my past homework.   I don't get  those who say deleting zeros is a LOP when this indicates the Dinar will revalue when the zeros are removed.


Iraq Business News - June 27, 2012
 
The Iraqi Parliament and the Finance Committee support the Central Bank of Iraq (CBI)’s efforts to revalue of the Iraqi Dinar through the removal of three zeros from the currency, according to a report from AKnews.
 
The CBI has announced that it has finalized plans to remove three zeros from the Iraqi currency in order to revalue it. The smallest unit of the current Iraqi current is 250 Iraqi Dinars which is equivalent to $0.20.  The removal of three zeros is expected to raise the value of the Dinar as well as facilitate dealing with the currency and the payroll system in the country.  The Iraqi government and the securities committee have raised concerns that the process will negatively affect the Iraqi stock market.
 
A member of the Finance Committee, Najeeba Najeeb, told AKnews that “there is a trend in the attitude of the legislative authority to support the CBI to restructure the Iraqi currency and remove three zeros by early next year.  This subject is starting to become more significant for the Finance Committee members and the Economic Committee day after day … though the preparations by the CBI to implement the process are ongoing, they are not complete yet”
 
According to Najeeba, the process of removing the zeros from the Iraqi Dinar will be implemented over a period of two years through governmental banks. Also, the new currency will include small bills and coins as well as large bills equaling about $180 each.
 
http://www.iraq-businessnews.com/2012/06/27/parliament-and-finance-cmte-support-revalue-sic-of-iraqi-dinar/2/

There are those who will argue that any reference to removing the zeros is referring to a LOP. Others argue that the wording is an anomaly in the translation, and that they are actually talking of increasing the value of the Dinar so that the "three zero" currency is no longer needed. Time will tell.

LOP WILL NOT HAPPEN TO THE IRAQ DINAR !!!!!!!!

"new currency"

freedom1292 wrote:LOP WILL NOT HAPPEN TO THE IRAQ DINAR !!!!!!!!

What makes you so confident of that?