41 replies to this topic

[Stevevintennessee]

Ok guys. I am not a lop guy but have a question about the RV that I have never understood. Currently a 25,000 note is worth approx $21.50 USD. If you take the new 25 dinar note revalued at .86, then you have a note worth approx $21.50 USD. At that point you have a revalued currency worth something, and an even trade... 25,000 for 25. I don't understand why people think this is outlandish, and by people think it can not happen. Can someone who knows more than me please explain? It seems more and more like this is the likely scenario.

[Dalite]

Ok guys. I am not a lop guy but have a question about the RV that I have never understood. Currently a 25,000 note is worth approx $21.50 USD. If you take the new 25 dinar note revalued at .86, then you have a note worth approx $21.50 USD. At that point you have a revalued currency worth something, and an even trade... 25,000 for 25. I don't understand why people think this is outlandish, and by people think it can not happen. Can someone who knows more than me please explain? It seems more and more like this is the likely scenario.

I offer no opinion, other than the link below is probably one of the more consise views of ReDenomination

Deleting Zeros

[Realdinar]

If a 25000 dinar note says 25000 dinars, 1 dinar = .86, then who in their right mind would be cool trading a 25000 note for a 25 note?
if 1 dinar is to = .86,
25000 dinar should=$21, 500.00
If you think its just wonderful to trade 21,500.00 dollars worth of dinars for $21.50, ummm...yeah.

[Dalite]

I offer no opinion, other than the link below is probably one of the more consise views of ReDenomination

Deleting Zeros

And concise too. My spell checker is on vacation..

[Sparky69]

Ok guys. I am not a lop guy but have a question about the RV that I have never understood. Currently a 25,000 note is worth approx $21.50 USD. If you take the new 25 dinar note revalued at .86, then you have a note worth approx $21.50 USD. At that point you have a revalued currency worth something, and an even trade... 25,000 for 25. I don't understand why people think this is outlandish, and by people think it can not happen. Can someone who knows more than me please explain? It seems more and more like this is the likely scenario.

Hey Steve,
If you are saying that 1 usd would be the equivalent of .86 dinars then one NEW 25 dinar note would be worth $29.07 USD(1IQD=1.17 USDx 25=29.07).If they do indeed lop 3 zeroes off of the current 25,000 dinar notes most of us are holding then that would also be worth $29.07 USD.If they revalue the current Iraqi dinar to .86=1usd without lopping then the 25,000 dinar notes we hold will be worth 29,007 USD which of course is what we are all hoping for.Will it happen?Who knows.Certainly none of us.

It is my belief....and hope,that if the CBI wants to remove the three zero notes from circulation then the only way to achieve this is by a simple revaluation with a timeframe to cash in the dinar we currently hold.After the specified time anyone not wise enough to cash out at whatever rate they give will be left holding worthless dinar.After the timeframe(bounty) has elapsed(and the dinar is internationally recognized and traded) they can then allow the dinar to float upward based solely on their economy and stability as a country.

JMO but It is the ONLY way I will turn mine in.After that is accomplished they will have achieved their goal of "deleting the three zero notes from circulation" and any notes that don't get turned in will become null and void.I think this is why they (CBI) are saying it could take up to a year to delete the zeroes.If it was going to be a lop it would happen at the stroke of a pen and that would be it!Done and they would be left with absolutely no investor confidence.Of course it would still be a great place to invest your money but I would be so pissed off I wouldn't even consider investing another dime in Iraq.I'm sure others would be too.

I may be way off base but hey....that's what I think.Hope it helps.

Cheers,
Sparky

[skitealwedrop]

If a 25000 dinar note says 25000 dinars, 1 dinar = .86, then who in their right mind would be cool trading a 25000 note for a 25 note?
if 1 dinar is to = .86,
25000 dinar should=$21, 500.00
If you think its just wonderful to trade 21,500.00 dollars worth of dinars for $21.50, ummm...yeah.

Real hit the nail on the head. I agree with his or her's post.

Personally, I believe that we will see a RD/LOP that coincides with a RV or RI to offset the deletion of the zeros that we read about often. The CBI can't chop zeros off a 25k note without restoring it's value in some way.

I wish I had Dr. Shabibi's cell number. I would love to pick his brain on the matter.

[WorkerBee]

Real hit the nail on the head. I agree with his or her's post.

Personally, I believe that we will see a RD/LOP that coincides with a RV or RI to offset the deletion of the zeros that we read about often. The CBI can't chop zeros off a 25k note without restoring it's value in some way.

I wish I had Dr. Shabibi's cell number. I would love to pick his brain on the matter.

I assumed (dangerous I know) the plan was they would give you a new IQD note of equal value?

[cheevo]

A dinar is a dinar isnt it??? One says 25 dinars and other says 25 thousand dinars!!!!

[doctor robbins]

There's no point in getting a new dinar with equal value unless they just want a different design. The point is to reduce the money supply, and they can only do that by removing the zeros from the exchange rate which would then be reflected on the notes. So if they do that your 25K note would be replaced by a new 25 note. It's not a 1:1 exchange but a 1000:1 exchange. I'm not saying that they will lop, BTW. I'm just explaining the proposed process.

[skitealwedrop]

I assumed (dangerous I know) the plan was they would give you a new IQD note of equal value?

Here's something to think about. Let's say the CBI announces to the Iraqi's that their 25k notes have been deduced to 25 dinar. Can you imagine that scenario? That would create financial hysteria in Iraq.

There will be some other mechanism to adjust the value of IQD when the LOP/RD occurs.

Chop away CBI. Bring the new currency.

[WorkerBee]

If the value or purchasing power remained the same, I don’t see how that could be a problem. What other scenarios do you have in mind? Come on, spill the beans!

[dinarck]

Here's something to think about. Let's say the CBI announces to the Iraqi's that their 25k notes have been deduced to 25 dinar. Can you imagine that scenario? That would create financial hysteria in Iraq.

There will be some other mechanism to adjust the value of IQD when the LOP/RD occurs.

Chop away CBI. Bring the new currency.

Why would it cause hysteria if the 25,000 note is worth 25 USD now and the NEW 25 note will be worth 25 USD? How did Iraqis lose anything other than a hyperinflated currency?

Like I said in another thread, Zimbabwe had notes with face values of 50 trillion. Do you think the people of Zimbabwe felt cheated that they didn't get 50 trillion USD for each of those notes?

This is nothing new in economics. It has been done many times and the only reason it is done is to bring a currency out of a hyperinflated state. Nothing is lost, nothing is gained (other than a new currency not in a hyperinflated state).

Just because we as speculators don't like it doesn't mean that it is unethical, disgusting, a rip off or whatever. It's just an economic tool to erase the effects of hyperinflation from your currency.

All we can do is hope they choose to go another route but it seems pretty clear that it is going ahead.

[MrFnHappy]

Why would it cause hysteria if the 25,000 note is worth 25 USD now and the NEW 25 note will be worth 25 USD? How did Iraqis lose anything other than a hyperinflated currency?

Like I said in another thread, Zimbabwe had notes with face values of 50 trillion. Do you think the people of Zimbabwe felt cheated that they didn't get 50 trillion USD for each of those notes?

This is nothing new in economics. It has been done many times and the only reason it is done is to bring a currency out of a hyperinflated state. Nothing is lost, nothing is gained (other than a new currency not in a hyperinflated state).

Just because we as speculators don't like it doesn't mean that it is unethical, disgusting, a rip off or whatever. It's just an economic tool to erase the effects of hyperinflation from your currency.

All we can do is hope they choose to go another route but it seems pretty clear that it is going ahead.

There won't be any hysteria, except perhaps, on the part of the RVers. Some of which will still be asking, WTF happened? Your post is spot-on.

[skitealwedrop]

Why would it cause hysteria if the 25,000 note is worth 25 USD now and the NEW 25 note will be worth 25 USD? How did Iraqis lose anything other than a hyperinflated currency?

Like I said in another thread, Zimbabwe had notes with face values of 50 trillion. Do you think the people of Zimbabwe felt cheated that they didn't get 50 trillion USD for each of those notes?

This is nothing new in economics. It has been done many times and the only reason it is done is to bring a currency out of a hyperinflated state. Nothing is lost, nothing is gained (other than a new currency not in a hyperinflated state).

Just because we as speculators don't like it doesn't mean that it is unethical, disgusting, a rip off or whatever. It's just an economic tool to erase the effects of hyperinflation from your currency.

All we can do is hope they choose to go another route but it seems pretty clear that it is going ahead.

Look sweetie. You are a lopster. I have read your posts. Direct your question to Adam, if you have the balls to do so. I'm not going to waste my time arguing with you.

Peace dude.

[dinarck]

Look sweetie. You are a lopster. I have read your posts. Direct your question to Adam, if you have the balls to do so. I'm not going to waste my time arguing with you.

Peace dude.

Ok.


I wasn't trying to start drama. Seems plenty of that is going around lately. Was just stating a fact.

[zigmeister]

We don't want no RD. I'm tired I ate too much chocolate cake with mouse frosting.

[doctor robbins]

Dinarck is exactly right. That's what the education process is for - to ensure that the people understand that they're not losing anything. It's just being done to make things simpler. There were no riots when they did this in Turkey, Romania, Russia, Zimbabwe, Brazil, or any other country that redenominated over the past 20 years, so why should there be in Iraq?

[skitealwedrop]

Ok.


I wasn't trying to start drama. Seems plenty of that is going around lately. Was just stating a fact.

You were stating a fact? Hmmmm. What fact were you stating Dinarack?

[dinarck]

You were stating a fact? Hmmmm. What fact were you stating Dinarack?

My whole post was the fact that I was stating. If you disagree with anything in the post please explain what and why you disagree with it. I think it would make for a better exchange then having to bother Adam like you suggested before for some reason.

[rockfl9]

Why is the CBI pushing for this RD? To reduce operating costs.. It costs the same amount to print a one dinar note ( worth.00086) as it does a 25K note.. But it must continually replace those one dinar notes to support street trade The RD will reduce operating costs by a factor of 10 or more...This is a DONE deal for sure...Look for all oposition to subside and more detailed instrctions for the populus IN THE COMMING DAYS!