Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

new here


leesburg
 Share

Recommended Posts

yeah if they held onto their loan in cash and the rate was changed to 1 to 1 with the dollar they would have the equivalent of 2 million dollars ....... But not too sure if they can just apply for a loan and hold onto the cash with the way islamic banking is setup .... it's a bit of a grey area for me im not too up to speed on it ..... i do know the bank cannot charge interest on a loan because its against Islamic Sharia law. so maybe the loan has to be used straight from the bank for the purchase of property or buisness purposes etc.... i could be wrong , im sure someone else here knows more

Good question though

  • Upvote 2
Link to comment
Share on other sites

if i was iraqi and had a loan out for 2 million dinars ...and they rvd ...dollar for dinar .. would i be in debt 2 million dollars after rv ?

No - there is to be a new law passed which will restructure all loans, mortgages, etc. prior to the actual RV...........+1 for the great question!

  • Upvote 2
Link to comment
Share on other sites

In the even of a redenomination, then all things would need to be changed to accommodate the new monetary system. If the current Iraqi Dinar is restructured by replacing it with a new Iraqi Dinar and then they would need to restructure the entire system. So if they were to drop 3 zeros in the restructuring of the currency, then that would mean that 3 zeros would be dropped from loans, bank accounts, wages, etc alike so that the citizens are not negatively impacted by the change. This is why you hear the term of it being a revenue neutral event. If a current IQD becomes 25 new IQD, the rate from .00086 would be .86, and a loan that was let's say 50,000,000 IQD would become 50,000 IQD.

In the event of a straight up RV, it would affect the purchase power of how many dinar it would require to purchase goods from an importer based on the new exchange rate, but I do not see how that would affect current loans unless there was a restructuring of the monetary system as well, but then that would be more of a redenomination than it would be a straight up 1000x increase revaluation ;)

Link to comment
Share on other sites

so i think i understand if i were to own a bank in iraq and i owned so many dinars and it revalued dollar for dinar ...the only dinars i owned that would revalue are the ones i havent loaned out .. so who ever is holding the dinars at the time is the lucky one...that would suck to loan out 2 million dinars for a used car worth 2 grand ..then the next day it revalues dollar for dinar and its worth 2 million ...but i only get back 2 grand... see this is complicated ... if i had a loan for 40 million dinars today to buy a home it could be worth 40 thousand new dinars after redenomination..and if i had 50 thousand old dinars in my pocket ..it would be worth 50,000 dollars after revaluation ...i could just go pay off that loan and have 10,000 dollars worth of dinars left over ... that is great for the bankers and for the people who are in debt ..it seems like the banks would break even on out standing loans ...but gain on ...how much money they had in their vaults ...me on the other hand would like to buy a few hotels in bagdad ...on a loan for sure ...then wait for the rv and just pay them off .. and make out like a bandit...i better stop im getting confused again ..thanks for the help

Link to comment
Share on other sites

thanks for all your intellect, and virtue...i hope they kick the rate up to 3 or 4 dollars after they redenominate ... even up redenomination id lose money since id most likely have to go thru a dealer and pay for their services.unless their currency goes global ... then i would get the full 860 dollars per million back...im hoping for 4 dollars and end up with about 3500 dollars return on a million dinars

Link to comment
Share on other sites

if i was iraqi and had a loan out for 2 million dinars ...and they rvd ...dollar for dinar .. would i be in debt 2 million dollars after rv ?

if they redenominate the two currency would co-exist so you could pay back your loan in new or old dinar...if it is a straight rv at 1000 to 1...you would still owe the 2 million dinar...it is an exchange rate so it only affects non-domestic items...you would have the same issues with any bill or credit card..same with salaries..it is one of the reasons you wont see a big jump in value...

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.