jmakTN

I knew i should have just said inflation, its just my interpretation of what the article was trying to get at, didn't mean hyperinflation literally, thats why i put in quotes. What do you think they are saying, rtucker1965?

Iraq's got "hyperinflation", going from 25 billion to 25 trillion is inflation. It has become so bad that the PPP(purchasing power parity) or purchasing power is way out of control to say the dollar, google "Big Mac Index" for a simple explanation(Henderson, 2006). So to combat such inflation, they are planning to gradually remove zeros from currency, or if you prefer jargon, "lop", not good for us holding dinar. They don't really elaborate on whether or not they are going to revalue, except for the unfortunate devalue, done through removal of zeros. Appears they may implement a gradual increase in value as time goes by, but for now it looks like a 25k note is going to be worth about .02 USD. So, hopefully they will revalue the exchange rate to say 3 instead of its current rate so we might triple our investment, otherwise we be SOL. Although, as long as they don't print new currency or void our current dinar, we could ride the wave up, when they start pumping out 10 - 12 million barrels a day, instead of the 50,000 barrrels they currently are exporting. But i'm sure if you think happy thoughts and have a positive outlook it will actually mean that your 2,000 USD investment is about to become, wait for it, "two million dollars" (you must bring your pinky to the corner of your mouth and draw out the word million while saying of course). Just a bit of gallow humor as i deal with the dissappointment. References: Henderson, C.(2006). Currency Strategy The Practitioner's Guide to Currency Investing, Hedging and Forecasting. West Sussex, England: John Wiley & Sons Ltd. DISCLAIMER: my personal interpretation, in no way directed at a single individual or meant to convey opinions of any other person on this site.

These opinions are not negative, they are observations and conclusion based on fact, real world kind of stuff. You presume bankers are corrupt, maybe, but are we to believe you are virtuous and honest. Many on here remind of Donald Sutherland's character in Kelly's Heros, "Always with the negative waves man, think positive thoughts, we don't need your negative waves man." Yeah, and there is 15 million in gold waiting for you behind enemy lines in a German guarded bank. Can't your opinions be naive and mine grounded in reality. Hey, if i'm wrong and i get 20 million dollars on march 3, then let me tell you i will be the first one back on this site proclaiming my ignorance, deal?

I see what you are saying, the zeros are on there, so you can't act like they are not, right? But just in the past several months, Korea has "lopped" and pretended like the zeros weren't there anymore. So, a 25k becomes 25iqd, worth(25 x.00107)=.02USD, ouch! Now they revalue their currency, the exchange rate is now 0.86, so 25iqd x 0.86 = 21usd. So, technically you really haven't lost much or any at this exchange rate, but this is what i was trying to say. In Tim Weithers text, Foreign Exchange - A practical guide to the FX markets, and Michael Rosenberg's Exchange Rate Determination textbook, they explain further, it you wanted to read about. Just saying not to leave out the possibility, in my experience not considering all potential outcomes will end up coming back to get you. Thanks

Not if lops simultaneously. of course, you will make a bundle if it RVs for ten cents. But if a 25k dinar is worth about 22USD, then they RV at anything less than a dollar, then you have lost money, like i just said in the above statement!

Whats wrong with evaluating the possibility of the dinar lopping? Isn't it smart to consider all possible outcomes. I mean just wishing and hoping that it turns out the way you want it to, doesn't really do you any good. If this thing does lop and they RV at some lower rate than the USD, then you are looking at a loss. So it would be wise to consider your potential losses and then weigh your options. I'm not saying you haven't done this, but every official anouncement we've heard talks about removing zeros in some form.

Steve, you obviously know much more about this topic than i, since you have researched the facts involved. However, confusing to me is this: Isn't it a pretty big assumption that the "scope of work" part is referring to a potential revalue, or the "action plan"? I guess i'm having a hard time correlating the two since they don't directly state anything about the revalue of currency itself; but its foolish to think they would directly state such a thing. I'm trying to stay neutral about it without getting to biase. I'm currently in a managerial accounting class in my MBA program, my professor is a multinational corporate accountant and has worked with the kind of info you presented here. I've mentioned the dinar to her a couple times and recently wrote a paper on "managing currency risk" for my international business course. Anyways, i'm going to present her with this info you posted here and see if she can shed some light on the potential ramifications, and would like to relay it to you, since its better to have several minds working on it. I don't know your professional background, but thought you would be interested in furthering your research in such a way. I'll just post it in this thread after consulting with her to see what you think. joseph

Newbie; I as well just can't see it happening any other way, especially with the official statements about removing zeros. I think double or tripling our investment is a best possible outcome. Which if i knew for sure this would be the case it would be a great investment. It is far too easy to get wrapped up in the possibility of millions at first but over time and researching the subject, and the fact that i'm in MBA school and have put the question to my professors several times. I unfortunately have become "negative" about a potential 1,000 fold increase in value, which has never happened before, in Kuwait it was only for a couple of days, and their money was actual worth 3+, unlike Iraq - where an evil dictator artificially inflated the value of their money. I've even gone so far as to write two 10+ page research papers related to the subject, reading foreign currency exchange textbooks, currency strategy textbooks, and peer reviewed articles from my schools electronic research databases. Of course, i would eagerly accept anything that proves me wrong, since i've invested thousands in the opportunity, because the scant possibility of such a "RV" is too great to pass up. But until Iraq actually does something it is all speculation.

Its all very well thought and makes sense up to the point where a 1,000 times increase in value for us holding dinar in america or europe is injected into the statement. Anyways, Its difficult to keep up with all the different points of view because its so hard to prove them right or wrong, until this thing happens. I wonder if we'll still be on here debating it, Febuary of 2011 if nothing has happened? I've noticed if you look at the join dates on everybody's info, you don't see anybody thats been here much longer than 6 months. My guess is as normal (non-obsessed) reasonable people listen to the same thing over and over for six months with no realization of anything, they bail after a certain amount of time. Just a thought, but there is a really high turnover rate in this thing.

Why do you assume they have a say in whether or not the currency is lopped? If they lop off the zeros and simultaneously re-value(like a new exchange rate of USD/IQD=1), then their currency would be approximately worth the same as it is now. So they would still be competitive against their GCC neighbors, right? Again, what proof do we have that an overnight RV to .8778, 1, or 2, was ever a possibility, to anybody but us? I think our best bet is for them - finance ministry, CBI, IMF, WTO, whoever is really involved - to unfreeze the exchange rate and let it ride. Then maybe over several years as long as they don't print a new currency, we could get our millions. Just speculation like all the other harvard MBAs on here.

It is hard to ignore the reports from the ministry of finance and CBI, when they both say the same thing. Basically, the fantasy of a 1000% increase is not a possibility and probably never was. Yet some believe that this is a ploy, that these official representatives are wrong and the "guru's" on this site and others are right, because they've been so accurate in the past. It looks like we won't really loose our investment and if we hold on to it for several more years we could double or even triple our money, which is closer to reality! But if you don't like they way that sounds, then keep believing that the "leaders", the ones without any academic background, experience trading in FX markets, or publications to their name, are right.

It is really the only way to look at it. The dinar will be worth the same as they lop of the zeros from big denoms and re-value the currency. It is hard to continuously ignore the actual reports coming out of Iraq. The fantasy of a 1000% increase is exactly that, it is pretty apparent now that the people involved with this have never even conceived a possibility of a thousand dollars becoming a million. As this year progresses we will be cashing in our dinar and hoping to get back close to what we put into to it.

What about the big announcement that was suppose to be about one of two things? Anybody hear the latest excuse?

Why don't you see that happening? If it went for a 1:1 then you'd have the same amount, and a 2:1, double. People wouldn't be mad. Everyone on this site has tunnel vision, because they have this built up idea that millions of dollars are a possibility. However, you also must consider that this 1000% increase was never even a possibility to CBI,TBI, or the GOI, these guys might have never even thought about it. Nobody on here actually talks with any key people in Iraq, though they may say otherwise, but you know they don't. "pipe dreams", sorry but since nobody on here is an actual currency trader or directly involved with any of this, we have no idea what is happening.

All "officers of the bank" have been informed as to the situation surrounding the dinar even little remote branches. They have been told that people believe it will revalue but they don't have any idea as to when, i'm sure this lady was just inferring from all she has heard regarding dinar. Believe me you all know much more about the issues involved, even how it will be processed through the bank, than 99% of any bank "officer". Since some folks go into their bank everyday asking "has it rv'd yet", go ahead and try quizing your bank managers and you'll find you know a heck of lot more than they do. Give it a try!

regarding how long it will take for the money to show up in your account, a local BB&T representative told me: they will send it to a regional or international branch at which time they will then send it to the Fed Reserve, then the Fed will have the responsibility to confirm the legitimacy of the dinars. this process could take somewhere around two to three weeks, pending no problems like half a million people doing the same thing! Also, a local bank president told me exactly the same thing, except that they would initially have to send it to their international bank affiliate, then the same process before mentioned. So, i'm planning on it taking a month or so to feed back into my account, but i'm sure there a many different scenarios.

Does anyone have the chat logs of what this "Kurdistan" guy said? Or maybe the main theories in his argument, thats got med in a tiffy. I do like how he disproves the other guys speculative theories with his own speculations!

Been on the site since november, just need to post something to get into chat, thanks