Slice zeros and keep value? Dinar Confusion.



The biggest article out right now on the Iraqi Dinar seems to be the one about redenomination. Us Dinar speculators are hearing more and more talk about the slicing and revaluing.

One such article came out today on Reuters and several other news agencies regarding the Central Bank of Iraq’s decision in 2007 to come out with lower denominations. The article started with a headline that reads,

“Iraq plans to slice three zeros off currency notes”

And then later in the article it says:

“The dinar’s value will remain unchanged, he said.”

Are you kidding me, Reuters? How can the Iraqi Dinar “slice three zeros” and then remain unchanged in value? It can’t, so one of your points is wrong! I’m betting on the first point being wrong.

It’s widely accepted that sometimes countries will “lop” zeros, either off the notes or off the exchange rates. This is usually necessary when inflation is rampant or there are multiple currencies in place. Iraq has neither, so we have to wonder whether Iraq would truly “lop” it’s currency.

Next, Iraq has been allowed into the Extractive Industries Transparency Initiative (EITI) by unanimous decision, according to the Iraqi Ministry of Oil. Iraq will have one of the largest reserves among the groups in this organization, which obviously has positive implications for Iraq’s political influence on future oil based transactions.

And when I say “oil”, I mean black gold. For all the “green” movements in the world right now, oil is still king and will remain king for a long time to come.

14 Responses to “Slice zeros and keep value? Dinar Confusion.”

  1. [...] View original post here: Slice zeros and keep value? Dinar Confusion. | Iraq Dinar Speculation [...]

  2. Emily Jones says:

    Everyone is getting nervous where as I am remaining positive and hopeful that my small investment will pay off in some way. There is so much good I can do, and hope I can spread with the revaluation. I will continue to hope for the RV to happen this month, because I know a lot of people who can use the help.

  3. Dennis says:

    Adam, thanks for posting this and “calling out” Reuter’s, while pointing out the major points of why this article makes no sense concerning what is really going on here.

  4. stephen says:

    Adam, based on the last several days it would appear we are sitting at the table with even money, Iraq is still dealing, Come on Iraq, Hit Me!

  5. leydic says:

    the meaning behind the reuters claim “the value will remain unchanged” is a simple balance in the math formula.

    when they reduce your old 10000 dinar note to a newer 10 dinar note, they mean they will print new currency in smaller denominations. a new 10 dinar would be the same as an old 10,000 dinar. (maybe even less since it is now an outdated bill) the old 10,000 note will only be valued as a 10 dinar note in the new currency change. the purchasing power of the dollar has not decreased.

    When you are investing in a foreign currency with US dollars, you are betting that the foreign currency will outgrow the US dollar, inflation, and the costs to convert it.

  6. Joe says:

    They say that because if they lop and it remains the same means our 25,000 dinar note that is now worth $25 US will lose the 0’s and still be worth $25 US.I know it is all of our biggest fear.Please Please let it be propaganda.I hope it works and all the people thinking about investing don’t.So they beleived it worked and do a real RV like we all want.I still will try to stay possitive.

  7. ANGEL says:

    ā€¯Finance Ministry has prepared a plan to increase the value of the dinar against the dollar and then delete the three zeroes from the dinar’s value to contribute to the advancement of the Iraqi economy during the coming period with the Iraqi central bank denied the rumors making the dollar worth 1000 dinars and said in a statement issued by the Ministry of Finance:, the Minister Baqir Jabr said During his recent visit to the Jordanian capital Amman, said the CBI chagrin financially estimated $22 billion and three tons of gold intended to support the Iraqi dinar. COME ON EVERYONE CHEER UP. HERE WE GO AGAIN MORE AND MORE GOOD NEWS IS COMING TO HIT THE JACKPOT. JUST BE PREPARED. GO RV GO RV

  8. Joe says:

    Thanks Angel.

  9. Matthew9 says:

    So nothing happened today. I assume that we now have to wait until after the election based on the laws which state nothing can take place with an RV 30 days prior to an election. So, that being said, are the elections still set for the 12th? How does Maliki plan on winning this thing without an RV? Any thoughts?

  10. John says:

    Angel, where you have read this news?

  11. Matt9 says:

    this delay is going to seriously curtail my valentine’s day gift-buying experience.

  12. jones says:

    I don’t think that there will be any removal of “zeros” from the iraqi dinar. How will they account for people with millions of dinars in bank accounts vs. people with millions of dinars in cash. So if I hold 5,000,000 cash it will be changed to 5,000, but if I have 5,000,000 dinar in bank account it will remain unchanged (I don’t think so). I don’t think any lop of zeros from currency will occurr.

  13. Joe says:

    There will not be a RV like we want there is way to speculation on this investment and the CBI knows its.It will most likely be a slow climb and oneday………oneday we might see it hit where we want it.I pray I’m wrong.

  14. Rob says:

    I just dont understand why everyone wants to take the re-denom and twist it to a lop its easy math and some of the best news out and the simplest to understand if an iraqi goes to buy a loaf of bread after the rv the store might have to close or order an armorred car to give the man his change if they did not re-dom but again there is no mention of a lop . Simply put it into usd terms and at the bank you recieve 5 twentirs instead of a hundred dollar bill . I dont think I can paint a more simplistic picture but if I think of one Ill post !! Dont get stressed over a simple matter Besides they probably started the large de-noms first to easily exchange at an RV so there is not so much paper to deal with . Would you think you might be a bigger target at rv if you backed up to bank with a dolly and brick after brick of small paper or would you rather have an envelope in your pocket un-noticeable just think on this and dont stess yourselves out !!