12/31/2012 IndependentRes (Response to Lop vs RV): I don't usually comment in these forums but you've touched on a topic that I happen to know a little about. So, I sat back for a few days and thought about how I'd like to respond.
The recent Lop vs. RV debate is not a new one. For those of us who have owned Iraqi currency for 5 years +, we've seen this, and participated in it, for a long time.
My own personal opinion comes from having done my own research and having personally spoken to Mike Murphy of Kentz co. who recently just won some major contracts in Iraq.
Let's start with the deleting of the zeros. Currently it is cumbersome to carry bags full of money to pay for expensive items which has led to the use USD for those kinds of transactions instead of dinars, something the government wants to end.
This change is inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects. There are 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations.
Read More Link on Right
The CBI plans on solving this problem by re-denominating but may also revalue the currency. There are many conflicting schools of thought on this that weigh the benefits/risks. I can see it going either way myself but I do tend to lean toward a revaluation at some level.
So, what do we really know? Iraq has the third largest proven oil reserves in the world, has discovered large amounts of gold and diamonds and their Central Bank is going to restructure their currency.
In closing, I'd have to agree with much of what others here have already said. SWFloridaGuy and JSan are correct in how they presented much of their information, although, they are more optimistic about its future then I am. Yes, it is possible we may see some very large profits depending on if and how much the CBI decides to revalue their dinar.
For over a year now the CBI has stated 2013 as the target date for restructuring their currency. We should know shortly if this is accurate.