ctoddy

It could lop, just because it's been done in cases of high inflation, doesn't mean they can't. They want to get rid of the higher denominations that's a way to do it. They want to RV they RV. They want to let it float. They can let it float. That's not one I've looked at yet, but very possible. I appreciate you bringing that into the equation. Very possible.

Ok, am I the only one who thought of Ferris Beuler when he read this? Not bashing just saying Man that's a great show.

I've got to agree somewhat with dinarmoneyman. This is not going to happen to pay off the US or anyone else's debt. It's happening for Iraq and anyone else is along for the ride. I do not believe you can look outside Iraq for times and reasons. You have to look inside Iraq for any verification or information.

The change in your scenario would be 5 IQD. The 25,000 would only be worth 25. Those people who talk about not having enough currency are wrong. They would change the underlying exchange rate as well.

I think its kind of fun. Like SNL weekend update or the Colbert Report.

I had to do a double take on this comment. On the surface what you say sounds correct. However what will happen is they will lop and bill at the 1,000 or higher. Thus no suitcase needed. Its not a 25 = 25,000 its 25,000 now = 25. The underlying rate will change. This could mean that the larger bills will always be legal tender this there would be no reason to cash them in for smaller bills. The cost and headache to do that, I can tell you that Ali won't be doing it for free. Your local bank would be a better place to try and make that transaction, however you most likely could just hold your large bills until the rate rises. I do think this will kill an actual RV and instead the rate will float.

I agree. Our tax laws are not dictating when or why this this RVs. I feel that's extremely US-centric thought. What is being referenced here however is the Bush tax cuts which expire at the end of the year if the government doesn't vote to extend them. Specifically the rate on short term capital gains goes up.

Not good at all.

I find it funny that there seems to be no clear cut answers. Any gains on investment should be capital gains. However as we are trading cash currency it changes things. Look here: http://www.traderslog.com/tax-strategies-for-forex-traders/ It's as clear as anything I've seen. In a nutshell theres no way you paid cash for the currency (I don't think anyway) so use whatever mechanism you used to purchase the currency as your proof of date of purchase.

The stress comes at tax time. 45% just gone. For most of us you pay off your house and factor in taxes. BOOM - there's a big chunk of your "wealth." it'll be a shock to the system of most of us to see that much money go that fast.

Dude, you're mixing two things up. Ali's not flying and picking this stuff up. You could go down to your local chase bank and get 50,000 in pounds if you choose to. This is no different. Customs just means you have to declare it, its not illegal to carry it. But it's two different methods.

Dude you are going to get ignored basically. Too much of this has been covered, how accurate it is, different story. Being series 7 lets talk currency speculation. That's what we do.

2 dinars, let's see. That works out to like .02 cents? Doesn't buy what it used to huh :-)

For some reason I can't edit. You can SWIFT basically anywhere. Swifts website talks about 200 countries. I promise you that 200 countries don't have a value higher than a USD. SWIFT website

Not true. You can swift to Canada. Have been able to since like forever.

The Rothchilds and The President of the US have nothing to do with the RV. Thats my opinion and those who think otherwise, it's just your opinion. To get an RV the Iraqi government has to peg their currency to the US dollar, the Euro, or a basket of currencies like China is claiming to do. At that point it's really just whatever the Iraqis want to do that the IMF will allow. Otherwise they allow it to float as the GBP and the Euro and the Dollar do. For that to happen it just has to be freely traded on the Forex market. That would not create an RV and would not result in large gains.

Eventually you get to where the hurling just doesn't bother you any more...

Any bank that does Foriegn Exchange. There's 100s of them.

The reason it makes no sense is because all oil through OPEC is priced and sold in US dollars.

Contracts signed? That would be great if it was anything more than conjecture. No way no how it can be proven.

To say this has been beat to death would be charitable. Let's talk facts though. Not conjecture. Fact 1- it could lop. That would make 25,000 = 25. If they do that the underlying exchange rate would also change. Net benefit to speculators (of which we all are) 0. Fact 2- an RV is more rare than a lop in currency management. Fact 3- debt forgiveness is not unusual. Paris Club has been doing it since 1954. Fact 4- Iran has just as much oil and their currency is 10340 to $1 USD. These are facts. I want it to RV, but the fact is it may not.

Wow! I'm not saying I agree with everything, but man you did your research! Again, WOW!

I'm not at all jazzed about this. I'll be jazzed when something offical happens and at no other time. I'm thinking this exact same kind of info has been passed on when Iraq had a GOI the first time. However the question was asked if Forex is open on Thursday. Yes it is.

This basic conversation is going on under news right now. The fact is: It CAN LOP. You can't say it can't. You talk about the value of the oil. Iran has the world's 3rd or 4th largest proven reserves. Their Rial is 10340 to 1 USD. The guest has a point on his 2 items. I'm not saying it will. I hope it won't. I've got dinars that I'm keeping and am not looking to sell. But the fact is it can LOP. To use the Paris Club as a reason for RV is also incorrect. The implication in that argument is that they forgave the debt because they expected it back in another form. IE the value of the dinar will offset the debt. The Paris Club forgives debt. It was not a one time occurrence. It's very possible they just forgave it.

TKM - I hear the logic in what you are saying. I truly do. However, it is conjecture. I'm not even saying I disagree with you. What I am saying is you cannot rule out a LOP. You just can't. Look at Iran. They are something like 3rd or 4th in worldwide oil reserves. Their Rial is 1 USD = 10370 Rial. Again all I'm saying is it does not HAVE to RV it can LOP and we should have that in the back of our minds. Trust me I do not want that. I don't.