39 replies to this topic

[WorkerBee]

In light of recent news articles, here is a guide book on the process a country goes through when redenominating their currency. In this case, it was Venezuela's redenomination, they also removed three zeros from their currency. This isn't necesarily about why but how it's accomplished. I'm sure it's been posted before but it's worth reviewing.

http://www.reconvers...enomination.pdf

Sorry, but I don't know how to create your own link, hope this works.

[keepmwlknfny]

I can already hear whats coming....

"Iraq and Venezuela are not the same!!" and "Iraq is a completely different scenario!"

Good info Bee!!

This should be read through by many....will answer a lot of questions more then likely....

[WorkerBee]

I can already hear whats coming....

"Iraq and Venezuela are not the same!!" and "Iraq is a completely different scenario!"

Good info Bee!!

This should be read through by many....will answer a lot of questions more then likely....

Ha ha, yeah that's why I stated it's a HOW TO GUIDE, not a why would they guide. I'm sure I'll get some negs but oh well.

[wealthhound]

WorkerBee...thanks for the info...I gave the messenger a +1!

[pocono]

I can already hear whats coming....

"Iraq and Venezuela are not the same!!" and "Iraq is a completely different scenario!"

Good info Bee!!

This should be read through by many....will answer a lot of questions more then likely....

Well...Iraq and Venezuela are not the same and you're missing the significant difference...
They are spelled differently..Venezuela has more letters...
As far as the RD...I think they'll be pretty similar..

Edited by pocono, 03 March 2012 - 03:10 PM.

[dinarck]

Way to go Bee!! This cannot be posted enough in my opinion. Should be required reading in any dinar 101 course. Lol. Unfortunately Kaperoni chats and Oakie post are studied at length.

[WorkerBee]

Way to go Bee!! This cannot be posted enough in my opinion. Should be required reading in any dinar 101 course. Lol. Unfortunately Kaperoni chats and Oakie post are studied at length.

Thanks, but as you know, it won't get much attention....This has all the answers...."what about bank accounts?", "what about wages?", what about store prices?", "what about international contracts?" "what about existing indebtedness?" even better "exchanging old notes for new"....blah blah blah.

This is for Venezuela but it will be very similar for Iraq. I don't know...maybe there's too many pages...too many words?

Go RV!!!!! (wards off negs)

[keepmwlknfny]

Well...Iraq and Venezuela are not the same and you're missing the significant difference...
They are spelled differently..Venezuela has more letters...
As far as the RD...I think they'll be pretty similar..

[bamagirl]

So do you guys think there is absolutely no chance of an RV without an RD first?? It still hasn't been passed yet so maybe we're still good....

[pocono]

So do you guys think there is absolutely no chance of an RV without an RD first?? It still hasn't been passed yet so maybe we're still good....

I think they'll 'tweak' the exchange rate to 1000 to 1..,technically an RV and then delete the zeros...that would put the dinar on par with the USD..jmo

[WorkerBee]

So do you guys think there is absolutely no chance of an RV without an RD first?? It still hasn't been passed yet so maybe we're still good....

Hey Bama, glad you are ok. You probably want an educated response to your question but I'll tell you my thoughts on this. .when I read these articles about removing the zeros, I read them as a straight up redenomination. Old notes .00086, new notes .86, even exchange. The new denomination will resemble the US denominations. This to me accomplishes what they say they want to do, reduce the money supply, bring the dinar on par with the dollar, simplifiy transactions.

I can't argue this opinion with a reasonably intelligent educated viewpoint. It is just my comprehension of the articles I've read.

[sonny1]

I can already hear whats coming....

"Iraq and Venezuela are not the same!!" and "Iraq is a completely different scenario!"

Good info Bee!!

This should be read through by many....will answer a lot of questions more then likely....

you do know that iraq and venezuela are totally different situations.......right?.............lol

all seriousness though, they are......

[HopefulTxn]

you do know that iraq and venezuela are totally different situations.......right?.............lol

all seriousness though, they are......

They may have gotten to the point of hyperinflation through different means, but all countries have gotten rid of the effects of hyperinflation of their monetary system the exact same way...

[sonny1]

the good news is.......according to iraq, we should know soon.

[HopefulTxn]

the good news is.......according to iraq, we should know soon.

Yeah, but we have become full aware of what their 'soon' means...

[bamagirl]

the good news is.......according to iraq, we should know soon.

One way or the other, I am ready for soon to arrive.....thanks Sonny....

Thanks for the answers guys....I am still thinking RV first but I'm not stupid enough to think the other isn't a possibility.

[dvforumuser]

the good news is.......according to iraq, we should know soon.

The new currency from an RD won't be available until Sept 2012 or maybe Jan 2013 or somewhere in that range and I'm guessing that no matter what Iraq says many believers will not accept that an RD is coming until there are actual notes that exchange at 1000:1 while the IQD USD exchange rate remains (largely) the same. I suppose there might be some that are not even convinced by the RD actually occurring.

[bamagirl]

The new currency from an RD won't be available until Sept 2012 or maybe Jan 2013 or somewhere in that range and I'm guessing that no matter what Iraq says many believers will not accept that an RD is coming until there are actual notes that exchange at 1000:1 while the IQD USD exchange rate remains (largely) the same. I suppose there might be some that are not even convinced by the RD actually occurring.

I will be convinced of Lop if it actually happens but nothing is for certain til the fat lady sings....good luck to us all!

[sonny1]

The new currency from an RD won't be available until Sept 2012 or maybe Jan 2013 or somewhere in that range and I'm guessing that no matter what Iraq says many believers will not accept that an RD is coming until there are actual notes that exchange at 1000:1 while the IQD USD exchange rate remains (largely) the same. I suppose there might be some that are not even convinced by the RD actually occurring.

whatever you say. lol

[keepmwlknfny]

So do you guys think there is absolutely no chance of an RV without an RD first?? It still hasn't been passed yet so maybe we're still good....

Not at all.....they could surely find and implement another way of raising the value......but the CBI seems dead set on RD first....hopefully Maliki and his govt wont approve it....

you do know that iraq and venezuela are totally different situations.......right?.............lol

all seriousness though, they are......

They are different countries, and they did follow a different path to get to where they are, but as far as reasons to redenominate, they arent that different at all....