hoot2602

20 million, Guess what? I agree with you. I think I wasn't clear with the terms and conditions of my assumption. With redomination and revalue, 1:1 works well with the purported new denominations. hoot

20 million, I think you think that I am arguing with you...not true. I want to understand. So, you go out on a limb and set the dinar at 1000:1. That then makes the new 5 dinar note worth 1/2 mill. It seems crazy for Iraq to even start into this process if that's all it would be worth. I can see the dinar going to 10 cents. Then a 5 dinar note would be worth 50 cents. I think I just talked myself into a 1:1 valuation. hoot

20million, thanks for the reply. Maybe my numbers are off and the wheelbarrow is an exaggeration but, buying a $15,000 car would require 652 25,000 dinar notes. That's a little pile of money. I've seen several times that only 20% or so of Iraqi's use banks. So, cash is king. If they introduce lower denominations, its kind of silly to do it with the current value of the dinar. Its useless to issue a 10 dinar note that is worth 8 1/2 mills based on current value of the dinar. Its a waste of money. It does not make sense to redenominate without changing the value of the dinar. I need more info. Thanks, hoot

20Million, maybe you can shed some light on this for me? If Iraq is going to introduce new denominations (both coin and paper) with much lower face valuse, does it not almost mandate that the current IQD value be increased? It makes no sense to go introduce lower denominations when, as an example, a current 25,000 dinar note is worth about $23.00. They already need a wheelbarrow to carry money for large purchases. Is there another conclusiion that can be reached besides increasing the value of the dinar? If they introduce a 50 dinar note it would be worth 4.3 cents at today's value. It seems to me they would focus on keeping the total value of the money supply the same. If Iraq currently has 30 trillion dinar in its supply and the value is .000856 US per dinar their money supply is currently worth 25.6 billion US. If they just lopped the 3 zeroes from face values, it would become 25.6 million US dollars not the 25.6 billion that it was previously worth. So, in order to maintain the total value of currency pre and post redenomination, they would also have to lop the 3 zeros from .000856 to make it .856. Thus, the total value is the same prior to redenomination and after redenomination. Maybe my math is not very good anymore. Does this make sense? Or, am I wrong? Thanks, hoot

Wow, thanks to Adam and others for your responses. Hoot

Adam, I have two questions: 1. We constantly hear that we need Erbil, Ch 7 removed, etc, etc, before we see an RV. It makes more sense to me that the most significant reason for the delay of any RV is that the Iraqi government is so disorganized and can't get its stuff together. Your thoughts on this? 2. We also hear about a "basket" of curriencies being revalued simultaneously. What's your current opinion on the basket concept? Thanks!

Scooter, I'm sorry to read about your decision. I have always been impressed by your ability to find and assimilate data and create very meaningful reports. Sorry to see you go but, don't blame you one bit. I appreciate all of your hard work and great insights! Hoot

I agree very much

When this RV happens it will be a lovely day

I will be a lovely day

I hope that you are correct

Thank you...

Come on Dinar!

Come on dinar.

I feel like buying some more Dinar!

I'll be back, too!

I'm not happy with being bumped either!