Statement by Iraqidinars.com on Proposed Redenomitization of the Iraqi Dinar

Further to my statement of last week , I wish to state the following :-

  • We have been dealing in Dinars since March 2003 . We are not investment advisers and have never purported to give investment advice . We have never expressed any optimistic opinions about a so called RV (revaluation) that appear in bulletin boards and other forms of social media that we have never taken part in. Whilst we are obviously aware of never ending rumors regards this and have clients that firmly believe in this , it is our opinion and has been , that as Iraq rebuilds the currency will slowly appreciate .
  • Purchasing any currency is HIGH RISK . I would never personally advise anyone to purchase what they cannot afford to lose . It is imprudent to put your life savings for example into the Dinar in my opinion .
  • The Iraqis have stated various times since 2005 that they intend to redenominate (zero lop) three 0´s from the Iraqi Dinar. The Central Bank of Iraq , CBI , has now indicated that they have Parliamentary approval for this now and plan to change the old currency currently in circulation for New denominations after a zero lop in September later this year and to run the two currencies side by side for a period of 1 year whilst they do the change . In reality the initial change will have zero impact on the value of the Dinar as it is merely a change of denominations as many other countries have done after having periods of high inflation and then seeing stability in their economy . In the long run , it is my opinion that it could appreciate slowly as the outlook looks brighter in Iraq .
  • With this in mind we have discussed the issue of currency change with principal dealers we currently deal with in the Middle East and whilst we will try our best to have some process to exchange the old for the new , we cannot guarantee this as there are many complications with such a change and many steps involved with returning the currency for change as well as many risks involved . At this stage we are looking at a potential buy back of old currency plan instead of change provided certain criteria are met . These are our current plans , they can and may change over the coming months .
  • Since we commenced dealing in Iraqi money in 2003 we have faced many challenges and shipping of the currency as well as government regulations and controls of the shipping agencies we use to move the money has changed dramatically . It is largely due to this that a change of physical currency for new is complicated for us at the moment . The Iraqis are fully aware that a large percentage of their money supply is in foreign hands , so we hope they will assist also in this process since Buyers always showed immense optimism in their money . Since they have decided to change it now , they should make provisions for the large currency holdings outside their country and provide some means of exchange as well . In no way can we have predicted or be held responsible for any currency change like this . Our responsibility was purely to deliver what what was bought at the time of purchase and this is what we have done for the past 9 years without any complaints of any kind .

  • We cannot be held responsible for government controls , changes of regulations , currency changes and other factors that may occur over time . Purchasing currency always involves risk much like does any purchase of any item , and it is up to our buyers to be fully informed at the time of purchase as to what they are buying and the risks involved .
  • As stated above , we are actively looking into plans to assist with the currency change for clients we have dealt with and who might be interested in what we are able to propose . As the issue becomes clearer we will divulge further information .
  • Potential buyers and holders of current Iraqi Dinars are fully entitled to opinions they might have on the Dinar , the above is our honest opinion on things as they stand now as of today . The Iraqis may still delay the zero lop and external factors may affect it but I felt it necessary to make the above statement based on what we are aware of .


www.iraqidinars.com

4 thoughts on “Statement by Iraqidinars.com on Proposed Redenomitization of the Iraqi Dinar”

  1. Does the LOP mean, for example: 25,000 IQD=$21 USD (present) will thus be 25 IQD = 21 USD? OR, will it mean, 25 IQD = $.021 USD?

  2. So with the lobbing off the three zeroes, there goes the dreams of making a million or so USD off of an erstwhile 1 Mil IQD investment. . . .

  3. If they do this , that will be true , but we always believe that was unrealistic , and in a gradual increase , again this is just an opinion of course .

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