Replying To !! Reuters Article on XE.COM VERIFIED by Reuters Via Email !!

Dustin Hayes

Posted 24 July 2010 - 11:47 AM

mhammock, on 18 February 2010 - 01:11 PM, said:

I did some math, just for myself, to try and understand if a lop would work without an RV. These are 2006 figures, but I doubt the numbers are significantly different from today.

Just as an example, if the $25,000 dinar notes were changed to $25 dinar notes this is how everyday payroll and purchasing would look.

Payroll:
Laborer makes between $10 - $35 USD, which is approx $11,700 - $40,950 dinars
Civil Servant $72 - $380 USD, or $84,240 - $444,600 dinars

If the laborer cashed his check and received the pay in $25 dinar bills rather than $25,000 dinar bills he could receive 1638 banknotes to put in his wallet
The civil servant could receive as much as 17,784 banknotes for his wallet

When they go to spend that money they would need:

1kg lamb = $6 USD = $7020 dinars or 280 $25 dinar banknotes
1kg bread = $.50 USD = $585 dinars or 23 $25 dinar banknotes
1kg rice = $.50 USD = $585 dinars or 23 $25 dinar banknotes

So you would have to carry in your wallet more than 326 $25 dinar notes just to buy dinner. IMO either the dinar has to become more valuable, or the wallets have to get much larger.

Your understanding of a L0P is totally wrong. :blink:

(And pleas do not put a $ sign when you mean IQD)

Lets assume a 1000:1 L0P

I'll use your numbers and call the current dinars IQD and the new dinars NIQD.

Payroll:
Laborer makes $10 USD, which is approx 11,700 IQD

After a L0P he would make 11.70 NIQD, which has the exact same value as $10 USD or 11,700 IQD.

1kg lamb = $6 USD = 7020 IQD = 7.02 NIQD
1kg bread = $.50 USD = 585 IQD = 0.58 NIQD

The value doesn't change. The laborer could get paid $10, 11,700 IQD, or 11.70 NIQD, they all have the exact same buying power.

The good news is that he does not need a bigger wallet.

The bad news is your 1,000,000 IQD is exchanged for 1,000 NIQD, both of which have the same Dollar value.

But hey, I am positive this will not happen, the dinar will RV at $2.00, which gives you a 216,400% gain. :lol:

doubleyouiniraq

Posted 24 July 2010 - 08:02 AM

Cool Beans....

RICK C

Posted 24 July 2010 - 07:58 AM

I see now that this article was from Feb this yr, so nothing NEW to get excited about.also there would not be 2 Currency's-they would issue New lower denominational bills to replace the Large bills. Much like we did with the $1,000.00 US BILL. Perhaps when they get a Prime Minister named and IN Office they'll get down to business and MAYBE -Just maybe the Finance commissoner will hold a meeting when the Oil starts Flowing and see's the Value of it and THEN talks will begin on a true Value for the Dinar, Then we might see a Revaluation. Hopefully. This is ONLY a thought on my part.

Dustin Hayes

Posted 24 July 2010 - 07:49 AM

DgreenFSU66, on 18 February 2010 - 10:18 AM, said:

You cant have TWO currencies... so new 25 Dinar is the same as 25,000 dinar????? I dont buy it, sounds like propaganda....

I'm with you. I think Iraq's plan all along has been to give you 1,000 to 3,000 times what you paid for your dinar. :lol:

RICK C

Posted 24 July 2010 - 07:23 AM

WAS THERE A linc TO VERIFY THIS posted somewhere, if so I missed it. I would like to read it for myself. thank you.

racbluto

Posted 24 July 2010 - 06:24 AM

How could Iraq ever expect to get the world to invest and help rebuild there economy if they screwed the people who have already invested in them. They maybe hard to understand sometimes and some of this may be smoke and mirrors, but I hope they are not this stupid. I tend to believe the earlier posts of a exchange of the big bills for smaller denominations. Thus removing 000's. A RV/RI as explained by some of our economist is very logical and is a win/win for everyone. And as I remember it explained in one post a 10000 dinar note would in the end cost Iraq about 130 USD by the time it gets back to them. And everyone along the way makes money as well as goverments collecting taxes. While a RV/RI of the value we speculate about would be a epic event never seen before, I still have faith in this investment. ~~~Bluto

racbluto

Posted 24 July 2010 - 05:50 AM

TklMonster, on 18 February 2010 - 05:32 PM, said:

The only real reason for bringing out the new smaller denomination is to deal with the problems that come with future increasing value of the dinar. Smaller bills will be needed for accurate market activity. if the dinar reaches a 1:1 value, could you imagine paying for a loaf of bread with the smallest denomination you have being a fifty. by introducing smaller denominations, accurate trade with a higher value dinar becomes possible. leaving the larger bills on the market with such a high value will only invite every counterfeiter in the world to reproduce such a high value ($25000.00) document. They must be removed as the dinar gains in value and replaced with smaller, more realistic denominations. In doing so, you would trade in your 25000 dinar notes for smaller notes like 50-500 dinar notes which still gives you 25000 dinar. if you think about it, changing the value of the 25000 without changing the value of all the notes is a recipe for an economic catastrophe both within the country and with international investors. IMO We will soon change our large notes smaller notes of equal dinar value. It's the only thing that makes since.

This is my thinking exactly, very well put. Thanks for the post.

ronscarpa

Posted 22 February 2010 - 02:21 PM

wilecoyote said:

The 3 zeros to be removed from circulation 2010 are: 25K, 10K, 5K, 1K.
The 500, 250, 100, 50, 25, 10, 5, 1, and coins will remain in circ.

In line with what wilecoyote's remark - any RV will have to apply to all currencies from 25,000 to 1, to coins. they can't only selectively devalue the value of certain currencies, and leave others untouched. (ie: one Iraqi hasw 500,000 in 10K notes, and another has 500,000 in 50 IQD notes - their value is & will be the same). Also, as many of our brethern have indicated - RV, then RD. Anyway, that's how I interpret what hjas been said. RON

wrebiejo

Posted 22 February 2010 - 01:39 PM

At least we now know Reuters is just as much in the dark as we are.

bootsintaji

Posted 22 February 2010 - 01:32 PM

hiloeven said:

Any first hand feedback from the worker(s) in Iraq, one way or the other, would be much appreciated-ASAP.

Nothing like whats posted here. They believe that there is a wait involved. No high spirits here

Review the complete topic (launches new window)

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