Mountain Goat - Q & A Deleting the Zeros from the Iraq Dinar 1/14/19

by **Mountain Goatee** Mon Jan 14, 2019 10:46 pm

Questions & Answers -Deleting the Zeros from the Iraq Dinar

Deleting the Zeros from the Iraq Dinar

More Questions and Answers

I know many of you reading these notes want simple short answers to your questions. When I give through explanations you simply think it is too long to read and give up. Then you keep asking the same questions over and over again thinking the answers will change somehow. Simply put, take the time to learn about your investment.

I have also written another Facebook NOTE explaining the entire process of deleting the zeros and how it works. Have you read this one too? Here is the link:

https://www.facebook.com/notes/latest-mnt-goat-news-letter/the-project-to-delete-the-zeros-explained/723333494668712/

I encourage everyone reading this NOTE today to respond to it with a question by adding a comment, if you have a question. I will try to answer all questions and then add them to this NOTE for the benefit of others too.

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Question: So what happens to the currency in circulation and the currency that was printed but never circulated when this takes place? Does the value go down? e.g. 25,000 notes become worth only 25 dollars?

Mnt Goat Reply: If they delete three 0’s 1 dinar would be worth 0.85 cents as of today.

Question: The literal translation of ‘delete the zeros’ means remove the leading zeros, so if they did, 1 dinar would be worth 25 dollars at 1:1?

Mnt Goat Reply: That is correct that same value a 25k notes has today in Iraq under the CBI program rate of 1190.

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Question: When will the 3 Zeros be DELETED?

Mnt Goat Reply: The CBI will only complete the project to delete the zeros until the CBI and the finance committee can come together on an agreement as to when to do it. Then we hope nothing changes their mind in the meantime since scheduled. We are not waiting for the economy to take off or for reconstruction to first happen. I know for a FACT that the reinstatement is part of the condition by the IMF to release reconstruction funds. This was a plan from 2018-2022 so it already late. They need to know that the funds are secure and will be used for this purpose. There are billions at stake and, quite frankly, Iraq does not have a very good track record already of using investors money properly. This time will be different. This is what makes this past May 2018 election so important. Investors and the IMF want technocratic cabinet members who are honestly going to move Iraq forward. No more playing games. They don’t care how long it takes. They will not budge until the government is fully formed and Iran is out of the politics to a point they can no longer harm the process.

I know this from past articles which I resurfaced and explained all this very clearly for everyone to read. Their words NOT mine. We must pay attention to what they tell us and stop making up stories. Please see my Jan 9th 2019 newsletter. I point out these issues to you from the articles.

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Question: Is the CBI saying replacing the larger 3 zero notes with new currency?

Mnt Goat Reply: If they remove three zeros the IQD it will be replaced by a new lower category currency thus when the CBI reinstates the currency they will have to raise the rate. But they do not need to get all the 3 zeros notes changed over. In fact the plan does not call for all of them either. Once the reinstatement occurs they told us it will take up to 10 years to get all these 3 zero notes out of circulation. So the reinstatement is also pivotal in this process.

We already know the value is there since a 25k notes is not worth 25 dollars at 1:1. So the IQD that investors hold will be re-demonetized however this process is going to be much different that how normal re-denominations work. We know from other countries namely Zimbabwe, Venezuela, Germany, etc and this has been done re-denominations many times in the past. This is the risk you take when you invest in a currency with zeros added because of inflation. But when they delete these zeros due to very high inflation the re-denomination is termed a “lop” and yes the currency can become almost worthless overnight. But wasn’t it almost worthless anyhow? So for Iraq we know the value is much greater than reflected in the current CBI rate. We also know inflation is controlled to 2% of less. So they are not going to “lop”. We also heard it right from the mouths of the CBI leadership that the plan calls for the 3 zero notes to “coincide” with the newer smaller category notes for up to 10 years afterwards. This hardly sounds like a “lop” to me.

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Question: A committee member, Abdul Hussein al-Yasiri has released a statement, in which he stated that the process of deletion of zeros from the national currency will begin in 2014, through an agreement with the central bank. Further he mentioned in that same statement, “This project will lead to reducing the proportion of the national currency traded from 4 billion to one billion. WHAT DOES THIS MEAN? They need to trade trillions!

Mnt Goat Reply: Yes the process has begun in 2014. Remember it is process and they do not mean to be “fully” executed in 2014 in this article. Yes they have said many times they need to reduce the amount of currency from 120 trillion dinars down to to 90 trillion dinars as part of the project to delete the zeros. This is getting 1/3 of the total hard currency off the streets. That’s a 30 trillion to get out of the hands of the citizens. Later the CBI finally tells us in late 2017 this was completed successfully with the implementation of electronic banking and the use of ATMs for small amounts of cash withdrawals, keeping hard cash off the streets.

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Question: Will by deleting the zeros it makes the currency stronger , therefore making our investment more valuable?

Mnt Goat Reply: Yes, by deleting the ZEROS this will make the currency stronger thus also our investment. On the surface it looks like your 1,000 dinar note would only become worth only 1 dinar. But what most forget or don’t know is that the two currencies will “coincide” together for up to 10 years. That means the older 3 zero notes and the newer lower category notes will both be in circulation at the same time.

How can banks then differentiate the rate to the different notes? They can’t and so a dinar is a dinar. Example: So let’s say you took a newer category note of 1 dinar to the bank and exchanged it after the reinstatement. The new rate is 1: 3 meaning 1 IQD is worth $3 USD. You would get $3 USD. Then if you took an older 25,000 dinar note to the same bank they would have to apply the same FOREX rate of 1: 3 to this note too. They will not be able to differentiate. Get it? Thus you would get $75,000 USD in exchange. So yes, the currency you hold would be much stronger.

The CBI has told us in multiple articles that the 3 zero notes would be used later (after the event) almost exclusively for inter-banking transactions for trading. Later these larger notes are NOT meant to be in the publics hands thus 10 ten years to get all of them (the remaining 2/3 out of circulation). So you as an owner of these larger notes, when you do to the bank, the banks will want these dinars since they will be VERY valuable. When we exchange our dinars, we are acting as we are bankers not ordinary Iraqi citizens. This is the key to understanding this exchange process and just because it is so different than other forms of re-denominations many do understand and then refuse to take the time to learn. They shoot off their mouths and confuse everyone based on only what they know from other historical re-denominations of other countries.

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Question: Is it still too early to make a solid call on the 5 year implementation in 2019?

Mnt Goat Reply: Nothing set in stone yet. We can only go by what they told us. In my Jan 16th 2019 newsletter I resurrect many old articles going back to 2011-2014. In one of the articles the CBI has told us then they needed to wait yet another five years. This article was from 2014. This was due to ISIS invasion in Iraq. We know the invasion was overrun and ISIS was defeated by late 2017. So 2019 is within the this 5 year mark and very probable. How time flies…

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Question: Why are some people so stupid. Deleting the zeros is exactly like a negative stock split. In a 1:1000 negative stock split, the value of the note would increase by 1000. However, if you previously had 1,000,000 shares you would only have 1,000 after the split. The same goes with currency. The value increases by 1,000 but the trade-in rate is 1000:1 to get the new currency. You end up with exactly the same amount. Even then, as most banks won’t accept dinar to be exchanged for US dollars, you’ll need to pay a premium to get US dollars. In other words, your dinar is virtually worthless and I can guarantee that anyone who invests will lose some or close to all of their “investment”. A sucker really is born every day.

Mnt Goat Reply– Really? Then why are reading then all the intel on the dinar revaluation and why are you poking your head around all these articles if you truly believe this is all just a scam. Currency dealings are not like stock transactions and you only show your stupidity in making this comparison. Also the Iraqi currency is not supposed to “revalue” anyway. It first has to be “reinstated” back to the global currency exchanges and so your comment on this shows just how dumb you are in this investment. Next the higher rate hike is going to come from the float once back on the currency exchanges. The future investors will drive the rate up until eventually it settles down to is “nominal” market rate. This is the rate it can most efficiently survive based on many factors. One is the other assets backing the currency, another is the ability to be in demand for neighboring countries for use for trade. And then there are the speculators who will want to get a piece of the action on the currency exchanges just other currencies trade every day. So the rate is where it is today at 1190 since it was ripped off the global exchanges in 2003. This is just a rate to discourage using the dinar to finance terrorism during the invasion and post invasion. This rate is NOT indicative of its true VALUE. There is difference between rate and value. That’s what makes speculation what it is. I also can see by your description of the process to delete the zeros is not well informed and you are just shooting off your mouth without any education in this investment.

I recommend you get some education on this investment. I can see you do own dinar too just by the way you are mouthing off and venting negatively. You are discouraged this is not paying off on your timeframe.

Remember anything you comment on is being read by thousands of investors or some thinking about investing. So you should be accurate and well-studied in your point of view. Obviously, you are NOT.