[grand pubah]

The article states that should this happen that both new and old bills will be good through the end of the year.

[eageleye]

lacoquiPR said:

Esto demuestra que nuestra inversion pronto echara sus frutos!!!!

Acho que sim.

[mikemd115]

I am trying to avoid seeing things only in light of what is best for me. But consider this, half of how currency works is psycological. We have faith in the dollar. What Iraq's need is faith in the dinar. When you have to buy a loaf of bread for 25,000 dinar there is no faith. So set up a value system with the big players before an RV. Example say to China you hold dinar now worth little but we all agree it revalues to say the value of the Euro and together we all agree to support that value for a year. That allows you to forgive debt now (done), have significant buying power at least for that year but most likely longer. Over that year of stable value the denominations are allowed to rearrange. That means when I go to cash in my large denominations I now have faith in the dinar, ie I bet it will go higher, I take some back in the form of dollars or euros and dinars of appropriate denominations. After stability period the people of Iraq can now buy a loaf of bread for 4 dinars, they have not themselves rushed to buy up dollars because one it isn't the legal currency where they live but they now also have faith in the dinar. At that point the value is let to float in the world currency market, all the high denominations have been retired. And then we either win or loose again depending on what world markets look liked in a year. This is all IMO based on following this for a couple of years. I am not an economist.

[therentman]

sonny1 said:

This is great news, let me explain, if they come out with lower denoms and do not change the exchange rate a 20 dinar note is worth 2 cents, and it would take 50 of those to make 1 dollar. This is not the way to make things easier, it would only complicate things. Goods cost the same, just because the people in iraq are broke does not mean they get goods cheaper if that were the case everyone in etheopia would be full. Here is what logicaly will go down. First they will have to up there exchange rate, second they will release the lower denoms, and give us a firm timeframe to cash our notes in, third once they get these large bills back in there hands they will either vault them, or destroy them. I cant beieve they let this out, it shows me that we are so very close. They will have to lop at some point, its called smaller denoms!!!

5) Really, Redenomination doesn't make the Ghanaian currency stronger?

Ans: NOPE! The strength of a currency is determined by the market factors, ie demand and supply for the currency. Since the purchasing power of the currency remains unchanged after redenomination, we should not expect demand for GHC to change. Similarly, redenomination doesn't give the monetary authorities any justification to change the supply of money.

Redenomination of currency is nothing but a recalibration and a change of name of the currency. This by no means imply the appreciation or depreciation of the currency.It's important that we don't mistake redenomination with appreciation of a currency. We would have an appreciation if we instead have 1 Cedi (AND NOT 1 GHC) = 1 dollar. The cedi and GHC, like identical twins, are separate currencies!!!

http://ghanaconsciou...nk.org/node/437

Even though this talks specifically about the currency in Ghana, the principles still apply, especially since Iraq is not in hyperinflation. The purchasing power remains unchanged. JMO

This post has been edited by therentman: 06 February 2010 - 01:02 PM
Reason for edit: Highlight

[Kent]

It's fascinating isn't it how people read the exact same words and some see a lop and others see good news for an RV.

[jeff stevens]

I did not see the word lop.

[cococrm]

I am just patiently waiting, with all my hopes looked over, written down, justified, and,,, Helping family & Friends!!!

[sonny1]

therentman said:

5) Really, Redenomination doesn't make the Ghanaian currency stronger?

Ans: NOPE! The strength of a currency is determined by the market factors, ie demand and supply for the currency. Since the purchasing power of the currency remains unchanged after redenomination, we should not expect demand for GHC to change. Similarly, redenomination doesn't give the monetary authorities any justification to change the supply of money.

Redenomination of currency is nothing but a recalibration and a change of name of the currency. This by no means imply the appreciation or depreciation of the currency.It's important that we don't mistake redenomination with appreciation of a currency. We would have an appreciation if we instead have 1 Cedi (AND NOT 1 GHC) = 1 dollar. The cedi and GHC, like identical twins, are separate currencies!!!

http://ghanaconsciou...nk.org/node/437

Even though this talks specifically about the currency in Ghana, the principles still apply, especially since Iraq is not in hyperinflation. The purchasing power remains unchanged. JMO

a couple of differences though, first iraq has oil on the surface, second we didnt save ghana we saved iraq

[Jewel]

Good news?? bad news?? lop?? Propaganda?? who knows i wish i was an economist that spoke arabic to read the squiggly version. lol

[wishfulthinking]

I'm so confused and a little doubtful! What I see is that they will revaluate maybe 1.49 or the previous rate of 3. something and at the same time take the 3zeros out of the currency. I had seen a report of them stating that they would give a few months for the exchange of 3zeros currency. They are stating that the 3zeros currency will be the same value as the new lower denoms. IMO those 3zeroes currencies will be nulled at the same time of the revaluation. So I don't see our gains being as much as we had hoped. Please someone make me change my view!!!!

[iraqivet44]

Good news but not set in stone yet

[judydinar]

Let's pray that the RV/RI happens real soon!

[roxbutterfly]

http://www.rferl.org....n/1950504.html <---is this the only site that has reported this? I checked aswat al iraq and didnt see anything mentioned there...is this news site legit? just wondering..id hate to get excited about this and its just a bogus site...thanks

[supersoul]

This is just my opinion, but I don't see if I take a $25,000 dinar note to the bank that they could tell me it's a $25 note. No, I see them recognizing the worth of the note's face value and then removing it from circulation. But who knows? I'm a "glass half-full" thinker.

[kjurb]

let's all hope this is the light at the end of the tunnel!

[deacon]

Thanks for the information but the question still stand when.

[Dave321]

How can they make everyone in Iraq, and all of the dinar investors instant millionairs? Gotta be lop/reval. Nice to be wrong....but

[BR549]

That would seem logical. If they remove three zeros then RV we're still further ahead than we were to begin with and personally, I'm thankful.

[dizzylamb]

today, I bought some more Dinars from my bank...I was told they can sell and buy Dinars but on the computer screen it said that we could not take it out of the country....she coudn't understand why......I'm here in the UK

[hunter1]

I am confused is this a good thing or a bad thing? I understand that either way we can trade in and make money. But are we leaning toward making a little money or a lot of money after this announcement? Any answers appreciated!