7 replies to this topic

[LuvRubies]

I am fairly new to this, but have completed a voluntary crash course over the last few weeks.

Suppose I inherited an old US $1000 bill. This denomination has been out of circulation for a long period of time. (However, based on my research there are over 165k people who have them !)
If I elected to take this bill to a bank and request that they cash it, they WOULD do so since it is still considered legal tender in the United States. They would cash it with lower denominations of my choosing that equal the $1000 bill I handed over.

Based on the above scenario, it only makes sense for the same to happen in Iraq.
My opinion is that the rate will be set first. The new currency will then be rolled out. The old dinar (with many zeros) will be recognized at it's face value (much like the US $1000 bill example) and will be valued at the same rate as the new currency. By doing so, the poor people of Iraq will immediately benefit as well as a boost to the local economy while they await the big economic boom.
It would be totally unfair to the people of Iraq to be told that the new rate applies to the new currency only.
-And it's recognized for them, it will be recognized for any holder of dinar across the globe.

Thoughts ???

[Skubyact]

works for me!

[edbeach]

Hopefully
Keep in mind this is Iraq, this government does not do the normal way of business.
as you can see from different reports about Iraq I believe we be in for surprise not for good
of us. Sure hope I am wrong. IMO

[BillQ]

I agree.

[keepmwlknfny]

In a straight up RV that's probly correct.....but in the manner they are describing rolling out this new currency it wouldn't work like that.....they are talking about redenominating to reduce the inflated money supply in which every old bill you have it would be divided by 1000 to equal only 1 of the new notes depending on the denomination in question.....hopefully they are just pulling our leg and won't go through with it but that's what they have been talking about for the past couple years.....

[Dalite]

As many will tell you, and history will verify, a RD will remove the after affects of past hyper inflation.

Since the US hasn't experienced this, they have not added zeros to have to remove.

Compare to Turkey or Venezuela to get the proper perspective...

Also, you could get more for the US $1k bill from a collector than face value, as it is a curio; just like Silver Certificates are.

[dog53]

I am fairly new to this, but have completed a voluntary crash course over the last few weeks.

Suppose I inherited an old US $1000 bill. This denomination has been out of circulation for a long period of time. (However, based on my research there are over 165k people who have them !)
If I elected to take this bill to a bank and request that they cash it, they WOULD do so since it is still considered legal tender in the United States. They would cash it with lower denominations of my choosing that equal the $1000 bill I handed over.

Based on the above scenario, it only makes sense for the same to happen in Iraq.
My opinion is that the rate will be set first. The new currency will then be rolled out. The old dinar (with many zeros) will be recognized at it's face value (much like the US $1000 bill example) and will be valued at the same rate as the new currency. By doing so, the poor people of Iraq will immediately benefit as well as a boost to the local economy while they await the big economic boom.
It would be totally unfair to the people of Iraq to be told that the new rate applies to the new currency only.
-And it's recognized for them, it will be recognized for any holder of dinar across the globe.

Thoughts ???

In a straight up RV that's probly correct.....but in the manner they are describing rolling out this new currency it wouldn't work like that.....they are talking about redenominating to reduce the inflated money supply in which every old bill you have it would be divided by 1000 to equal only 1 of the new notes depending on the denomination in question.....hopefully they are just pulling our leg and won't go through with it but that's what they have been talking about for the past couple years.....

In other words LOP !!!!!!! Oh bad bad JUJU

[keepmwlknfny]

In other words LOP !!!!!!! Oh bad bad JUJU

Dont say that dirty word!!! Your gonna get us in trouble!!!