13 replies to this topic

[skrappyone]

Mexico removed 3 zero's from its currency and 1000 pesos became 1 and it was equal to the dollar. Now today it takes over 13 pesos to equal a dollar. Now their peso is worth .0769 to our dollar.

Turkey removed 6 zeros from its currency and 1,000,000 turkish lira became 1 lira. It took 1.29 lira to equal a dollar. Now today it takes 1.89 lira to equal a dollar. This is just a 4 year period.

I thought it would be interesting to see iformation on other currencies and how they hold up after the removal of the 0's. I was wondering how removing the zeros would help in the Iraq situation. If there is no response I will close it, but I just thought would be something to keep our minds thinking while celebrating Ramadan.

[Redwizard]

Thank you for the post, something to think about.

[Happy Man]

in the 60, france issued a new currency.
The old one was worth 1/100 of the new one.

[Sanssouci]

Tsar Nicholas I of Russia was correct in 1853 to refer to the Ottoman Empire (i.e., basically today's Turkey) as "a sick man—a very sick man," and a "man" who "has fallen into a state of decrepitude." I am sure, however, that the tsar was not aware of how prescient his words would be in the world today. And it is this Turkey that is to be Iraq's new model for success? Am I to laugh or cry?

Edited by Sanssouci, 19 July 2012 - 11:53 PM.

[keepmwlknfny]

Mexico removed 3 zero's from its currency and 1000 pesos became 1 and it was equal to the dollar. Now today it takes over 13 pesos to equal a dollar. Now their peso is worth .0769 to our dollar.

Turkey removed 6 zeros from its currency and 1,000,000 turkish lira became 1 lira. It took 1.29 lira to equal a dollar. Now today it takes 1.89 lira to equal a dollar. This is just a 4 year period.

I thought it would be interesting to see iformation on other currencies and how they hold up after the removal of the 0's. I was wondering how removing the zeros would help in the Iraq situation. If there is no response I will close it, but I just thought would be something to keep our minds thinking while celebrating Ramadan.

The only purpose of redenominations is to reduce the money supply, and remove past effects of hyperinflation, leaving each remaining bill worth more......if your economy is not stable, strong, or diversified then regardless of if you RD or RV, your currency will probly depreciate....

Revaluations and redenominations are not a fix all to a countries problems....

With Iraq, it WOULD take care of the inflated money supply....make transactions/accounting easier, and they would end up with a stronger valued dinar....but again, if their economy is not up to par, chances are the value could dip back down but thats NOT the result of redenominating.....

There is a difference between monetary policy and economic policy....

[keepmwlknfny]

Without a fully-functioning government, it hardly seems the way for Iraq to go. It's a recipe for disaster.

Your correct....any sort of big transition with the current stability issues whether it be political or economical will only hurt them......they gotta get their s&$t together first regardless of what they plan on doing....

[skrappyone]

Thanks for the responses. Your right keep, without building up the economy afterwards, there is no way for the currency to go but back down. I think Iraq has the opportunity to rebuid and gain from lessons learned. Whether they will or not is the key question. Thanks again.

[DaveD]

Without a fully-functioning government, it hardly seems the way for Iraq to go. It's a recipe for disaster.

So when the RV crowd ask the question over and over and over again "Why haven't they lopped yet if it's a neutral event?"
You can explain to them that they need a stable gov first.

Edited by DaveD, 20 July 2012 - 06:27 PM.

[Sanssouci]

So when the RV crowd ask the question over and over and over again "Why haven't they lopped yet if it's a neutral event?"
You can explain to them that they need a stable gov first.

Way to go, Dave. You missed the nuance of my point yet again. They could LOP tomorrow, but it would be a failure without a stable government.

[DaveD]

Way to go, Dave. You missed the nuance of my point yet again. They could LOP tomorrow, but it would be a failure without a stable government.

Stable is a relative term. They seem to feel they are stable enough at this time to lop.
These forums will be long gone by time the verdict is in on whether it's a success or not.

And I totally got the nuance of your post. I just thought that now that you understand a country should have a stable economy and gov before redenominating, you could explain to all the RVrs that's why it's taken so long.

Edited by DaveD, 20 July 2012 - 09:01 PM.

[Doctor Smith]

Most of the currencies have continued to depreciate after the LOP.

So if anyone thinks they are going to 3 time their money after a LOP, they are probably mistaken. Especially after all these investors realize they aren't going to make the money they were led to believe. After a LOP the money will be dumped by investors and it will plummet in value.

The way I see it, Iraq would be a fool to LOP. If the IMF will let them RV they should do it! They'll be able to buy up that much more foreign products for nothing. And more people will have confidence in the Dinar and will likely buy more of it.

So it comes down to. Will the IMF allow Iraq to RV? Will Iraq have the sense to RV?

[jg1]

Quote 1000 pesos became 1 and it was equal to the dollar. Pritty sure, it was equal to 10 cents and now 0.07 or 14 to the dollar. Up until recently it was 12, plus or minus 1 peso to the dollar.

[respectron]

Sanssouci, I think DaveD is your trying to get you to come to the darkside

[Realdinar]

Most of the currencies have continued to depreciate after the LOP.

So if anyone thinks they are going to 3 time their money after a LOP, they are probably mistaken. Especially after all these investors realize they aren't going to make the money they were led to believe. After a LOP the money will be dumped by investors and it will plummet in value.

The way I see it, Iraq would be a fool to LOP. If the IMF will let them RV they should do it! They'll be able to buy up that much more foreign products for nothing. And more people will have confidence in the Dinar and will likely buy more of it.

So it comes down to. Will the IMF allow Iraq to RV? Will Iraq have the sense to RV?

This is exactly why the loppers act so smart, and we laugh. Why are the loppers holding? "to make maybe three times my return" they say. Too bad they never look at the facts. They hold dinar wishing for a lop, to only get hardly any return at all. Ye, this why we laugh. Hours and hours of non sense, and they make okie look credible.