This is a follow up on my Blog from yesterday, delete zeros articles.
There are still a few that are confused over the meaning of Iraq taking the banknotes from (example) 25,000 dinars and those becoming 25 dinars by the CBI deleting the zeros off them.
They think that this only means one thing, delete the zeros like Turkey, Lebanon, Russia and others have, which is also called re-denominating (RD).
These countries re-denominated without adding value to the currency. But there are other actions that could take place, as delete the zeros and then revalue by adding value after the fact (RD-RV).
Not what we want but it still makes a return and could be the way it takes place. Also Iraq can revalue their currency and delete the zeros at the same time (RV).
Read More Link On Right
All possible end results but one thing we can rest assured of, Iraq will delete the zeros because they want to make currency transactions easier.
One of our members had a comment that inspired todays Blog: Maybe I don't understand how our 25k Becomes a 25 Dinar note will benefit us?
First off, we don't hold 25 dinar notes we hold 25,000 and some hold other 3 zero notes, we are speculating that they hold their value, simple as that.
He also believes that they will revalue after the fact and that will be the best case scenario that can happen. He also used this article as an example: LINK
This Blog is not meant to insult him or to dispute his way of thinking but to help understand the differences that are possible with the facts that are out there. I will start off with this article that he pointed out as the example:
I started out by asking him; where in this article that you are referring too does it say that they are going to take the 25,000 dinar notes and make them 25 dinars and at the same time devalue the 25,000 dinar notes?
It doesn't say that, it says; “is not the first experiment of its kind” Deleting the zeros as in printing new currency without the zeros and replacing them with the notes that their citizens hold, that's all he is talking about when it comes to deleting the zeros!!!
Deleting the zeros doesn't mean that they are just going to re-denominate like the other countries, this person is just saying it has been done in other countries, removing zeros, that's all.
In this same article he says that they want to strengthen the purchasing power, not like these other countries did, this part should excite people. You can’t compare this article with what other countries have done even though he says it has been done successfully because this article does include increase the purchasing power.
Some people have it in their mind that all they are going to do is delete the zeros and then revalue; there is no proof of that, not one article points to that result. Matter of fact there are several articles in our archives that say that Iraq wants a $1:1 value or even better.
Almost every one of these articles that are out are saying they have an undervalued dinar and they need to change their exchange rate.
Our site provides more real facts of Iraqi's real wealth and how they can do it by revaluing and deleted zeros (exchanging the large notes with newly printed lower denominations) and people still only believe we will only gain maybe three times the value or even a neutral effect.
Not a problem that people think that way and I like it when folks ask questions, we know it could happen that way but we also see how it has a better chance of working out the way we see it.
There are facts about their resources and the backing of the IMF that point to the way we believe it has a chance of taking place but we still know there is a chance that it can take place the other way too.
What makes some members get touchy is that this site is full of research that says it can happen in a much larger way and I provide info based on articles like this one on a daily bases that gives us facts of a larger percentage of return, yet people can't see it.
We could all be wrong but this site is dedicated to facts and our facts show a different end result then some do.
From the article referred too here:
Quote: **** "The experience of the deletion of zeros from the Iraqi dinar is not the first experiment of its kind, as some expected, but that there are many experiences in the world has proved successful, pointing out that a number of measures should be taken when you begin to replace the currency, including strengthening the purchasing power of the dinar."
The key is that they want to give it more purchasing power with the real wealth that the IMF allows under their guidelines of international standards.
I hope this helps a few understand the real options that are in front of Iraq and even they are confused of which way the CBI is going but let’s hope we all find out before long. Stryker