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Central Bank: currency exchange will reduce the risk of errors accounting system


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Please dont beat me up, I think alot of people are wondering the same thing, are they taking the zero's off the bill or the value.

When Mexico Lopped, they took the zero's off the face value of the peso bill/coin. 1000 peso's became 1 peso. (They moved the decimal place to the left not to the right) So, the if the Iraq dinar lopped then the 1166 would now be 1.166 dinar if they did it in the same way, but of course they dont have a 1166 bill so they would have to change the value first from 1166 down to 1000 then take the zeros off. Is this plausible.

And now if you look, the peso has dropped fluctuating between 13 and 14 pesos per USD. Did they gain much, I don't believe they did. They took 1000 down to 1 and now the 1 is divided by 14. I don't see the logical math behind saying l0p is good for the citizens. JMO

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your statement goes against all the article's for the better of Iraqi people, more purchasing power!! JMO but all u Lopper's should sell an move on, but but, but.....

Central Bank: currency exchange will reduce the risk of errors accounting system 15/07/2012 BAGHDAD / JD / .. Central Bank of Iraq confirmed that the process of printing a new currency with the de

I think he is talking about the cycle of USD that comes into the country..... Cause the assumption that is seen frequently in regards to reducing the money supply is that the auctions are doing it...

Sorry A/C/3,

I have a problem wrapping my head around your facts(theory). What your suggesting will wipe out retirement acounts as well as screw up stock holdings. Can you explain how your presentation would preserve Iraqi's and investors hard earned individual Dinars? Thanks....

that is exactly what i am saying what ever u have in ur bank account will be reduced to the new amount

top.gifHow will it work? when they took 3 zeros off there currency

nira currency RD too and they did this to everyone bank accounts . if you have N50,000 in your bank account, it will automatically become N500 in the ‘new Naira’

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Like I said, nothing new to learn. You go on and cut and paste whatever you need, to confirm to yourself, this hopeless outcome. I don't need any lessons from you or lectures about research to confirm my beliefs nor do I speak in absolutes. BTW, don't be so sensitive just because someone doesn't see the outcome as you. Its hard to consider the source on many of these articles, much less the content. Good luck to you!!! See you at the finish line!!! GTG!

Chill. its a possibility it can happen.....and this is a lop article. relax, nothings happened yet

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that is exactly what i am saying what ever u have in ur bank account will be reduced to the new amount

top.gifHow will it work? when they took 3 zeros off there currency

nira currency RD too and they did this to everyone bank accounts . if you have N50,000 in your bank account, it will automatically become N500 in the ‘new Naira’

A/C/3,

How did "N" adjust stock portfolio values?

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To me...reducing the currency supply is simply going electronic...I have 100,000.00 in my bank acct. not in my pocket as paper money...The 3 zero notes in Iraq will be brought to CBI and people will be credited with an electronic amount depending on what it RV's to....the paper money they bring in is taken out of the market thus reducing the amount of actual paper currency out there. Their buying power increases because of the RV, they use debit cards(electronic money) for purchases, and if they want to carry paper money for things they will be given the new LD's....

This is how I see it happening, but it is not fact, because it hasn't happened yet...I definitely don't see a lop happening....but this also is just my humble opinion from studying this for over 3 years

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If they ignore the zero's on the old notes and move the decimal to the left 3 places from .00086 to .86 (lop). It all comes down to whether or not the zero's on the old notes will be honored or not.

I think the rate will go out of control and may plummet if they choose to lop. You're not increasing buying power and confidence is lost in the currency. Part of the reason it hasn't collapsed so far is the fact that many speculators are buying it.

I Totally understand what the L word means Doc.But Doc what Im saying here is that I believe todays rate 1166 can not be correct. The IQD has been manipulated for 3 1/2 years We are basing everything on todays rate which is false IMO. We are told their foreign reserves are approx 60 billion USD This number has not moved much for quite some time, yet they sell the USD 5 days a week by the hundreds of millions.

If they are removing currency from circulation their liability is reduced thus the rate should reflect this. I guess thats the million dollar question here, when will they correct the rate?

If they do it before the redenomination we might make a few bucks, If they wait a few years depending upon when you bought we lose. I have only been into this for 10 months so surely I would lose as the spread would probably become higher the longer I wait.

Not sure how many true currency speculators ( big boys ) are into dinar. I never was a speculator, thats for sure. I bought into with No knowledge but thought of it as a total Gamble. Cheap buy in and potential huge winnings. I can't imagine the purchasing of IQD by people like us ( speculators, investors, gamblers ) makes much difference or really comes into play here. The average my friends and family hold is maybe 1/2 a million dinar per person.Im sure these numbers could be much higher but I dont think so as an average Many only bought 250,000. If 10 million people had 1/2 million IQD each that would be about 5 Billion USD worth of dinar, hardly enough to keep a country's currency afloat. Most everything we see out of Iraq and the CBI would drive most true speculators away . Thats what they want IMO

The US deficit again this year will be 1 trillion dollars. Fed cant go any lower with rates at almost 0. Look at the USD and tell me its rate is correct .

Edited by SocalDinar
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Here is a fairly logical question for those of you who think this will be a lop situation...

Why have they been gathering up the 1000K or more notes if it will be a simple 25 = 25K? Why would they care how many of these large denom notes are in circulation in country if this were the case? You dont need to be a genius to see much of what they are trying to accomplish. You also at the same time must use your own mind to disseminate the articles you read.

IMHO we are still on course for a nice return.

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A/C/3,

How did "N" adjust stock portfolio values?

to be honest with you i don't know what will happen to stock portfolios. all i do know is that everything changes when currency RD everything changes over night

assets and liabilities and prices, fees, rents, and contracts (including salaries and wages)

Edited by alan_coaks_3
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A/C/3,

How did "N" adjust stock portfolio values?

Fuel price per litre N70 70 kobo Price of one bag of garri N2,000 N20 Price of a bus drop N20 20 kobo House rent (e.g. a flat in some parts of Nigeria) N5000 per month N50 per month Stock price of a company Assume it is, say:

N20 or N80

20 kobo or 80 kobo Airline ticket for domestic flight N12,500 N125 Exchange rate: N to US$ Assume it is say:

N125

Or N130

Or N100 to US$1.

N1.25 = US$1

Or N1.30 = US$1

Or N1 = US$1

Edited by alan_coaks_3
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to be honest with you i don't know what will happen to stock portfolios. all i do know is that everything changes when currency RD everything changes over night

assets and liabilities and prices, fees, rents, and contracts (including salaries and wages)

Ok...but what about the hookers :rolleyes::huh::blink::unsure:

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if you look at all the other currency this happen to they honord all the notes with the zeros but they were like 1000 or million per 1 new note

Read more: http://dinarvets.com/forums/index.php?/topic/123116-central-bank-currency-exchange-will-reduce-the-risk-of-errors-accounting-system/page__st__20#ixzz20jofvZ3x

That's not honoring the zero's. They LOPPED. If they honored the zero's you would get the new exchange rate applied to your old 25,000 Dinar note. You would get a thousand new 25 Dinar notes for example.

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to be honest with you i don't know what will happen to stock portfolios. all i do know is that everything changes when currency RD everything changes over night

assets and liabilities and prices, fees, rents, and contracts (including salaries and wages)

A/C/3,

This is the question that often goes unexplained by the Hocus Pocus Loppers, the 1000 to 1 pushers. Revaluationg stock portfolios in such a way would be illegal by any standard internationally. This is just one of the many reasons why I cannot wrap my brain around the idea that Iraq is going to LOP their currency whatever form it is currently circulating in. Recent articles are informing us that banks are suspending loans because of currency shortages. Other banks are accepting payments now for existing loans in USD. The higher notes must be in shortage and we have only to wait for an exchange R/V. The CBI cannot issue smaller notes with the current exchange, it makes no sense to me

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Here is a fairly logical question for those of you who think this will be a lop situation...

Why have they been gathering up the 1000K or more notes if it will be a simple 25 = 25K? Why would they care how many of these large denom notes are in circulation in country if this were the case? You dont need to be a genius to see much of what they are trying to accomplish. You also at the same time must use your own mind to disseminate the articles you read.

IMHO we are still on course for a nice return.

Exactly Imgesing! Why would they bother to reduce the money supply at all? This would not matter in the event of a straight up RD. In fact the CBI would gain by not reducing the supply as old notes are lost or destroyed by accident during the RD time period of 2 years.

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That's not honoring the zero's. They LOPPED. If they honored the zero's you would get the new exchange rate applied to your old 25,000 Dinar note. You would get a thousand new 25 Dinar notes for example.

no.

they will honor the zeros on our notes

if it is our old 25 k notes will still be worth 25k but they will say it will take 1000 old dinar for 1 new 1 so it will be 25 . there are if u count to 1000 25 times it will equal 25 k

Edited by alan_coaks_3
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no.

they will honor the zeros on our notes

if it is our old 25 k notes will still be worth 25k but they will say it will take 1000 old dinar for 1 new 1 so it will be 25 . there are if u count to 1000 25 times it will equal 25 k

Exactly wrong.

If they honor the zero's on the old notes you will get 25000 multiplied by the new exchange rate. So if they increase the exchange rate from .00086 to .86 you would then get $21,500 American. Not $21.50

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A/C/3,

This is the question that often goes unexplained by the Hocus Pocus Loppers, the 1000 to 1 pushers. Revaluationg stock portfolios in such a way would be illegal by any standard internationally. This is just one of the many reasons why I cannot wrap my brain around the idea that Iraq is going to LOP their currency whatever form it is currently circulating in. Recent articles are informing us that banks are suspending loans because of currency shortages. Other banks are accepting payments now for existing loans in USD. The higher notes must be in shortage and we have only to wait for an exchange R/V. The CBI cannot issue smaller notes with the current exchange, it makes no sense to me

As far as I know, they have been debating about how it would affect the stocks......I think one of the last couple I remember reading was saying that it would not affect stocks, that they would leave them alone because of the low prices per share that a lot of the stocks have and then others were saying it would....

Seems like one of the many reasons why nothing has happened yet.....all the logistics need to be figured out....thats why we hear so much about doing a study here, and doing another study there....

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Exactly Imgesing! Why would they bother to reduce the money supply at all? This would not matter in the event of a straight up RD. In fact the CBI would gain by not reducing the supply as old notes are lost or destroyed by accident during the RD time period of 2 years.

Are they reducing the money supply? They are selling dollars to get dinars and then spend it in their budget.

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Are they reducing the money supply? They are selling dollars to get dinars and then spend it in their budget.

The CBI's Budget? The central bank may loan the GOI but just doesn't hand it over freely.

Thats not what the Fed does is it?

And these dollars they use to purchase come from the foreign reserves correct?

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The CBI's Budget? The central bank may loan the GOI but just doesn't hand it over freely.

Thats not what the Fed does is it?

And these dollars they use to purchase come from the foreign reserves correct?

I think he is talking about the cycle of USD that comes into the country.....

Cause the assumption that is seen frequently in regards to reducing the money supply is that the auctions are doing it....

But its basically the GOI receiving USD from oil, then the MOF exchanges it to the CBI for dinar for all the spending, and then the CBI sells the dollar it gets from the MOF....I think the profits are a part of building the reserves (not 100% sure)......but the CBI doesnt pull USD from the reserves to sell. At least thats not the purpose of it and it was getting close to that happening or was happening for a short period when all that drama in Syria/Iran started and the auctions from the CBI were selling massive amounts of USD, more then they could handle and so they were having to or were afraid they were gonna have to dip into its reserves to meet the demand.

Thats why they changed who and how people can participate in those auctions....

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another "redenomination" article, it amazes me that intelligent people think this is good??? :huh::blink::huh:

and there you have it, the creeps that negged me have no clue what a "redenomination" really is :blink:

no brain, no pain :)

Sorry A/C/3,

I have a problem wrapping my head around your facts(theory). What your suggesting will wipe out retirement acounts as well as screw up stock holdings. Can you explain how your presentation would preserve Iraqi's and investors hard earned individual Dinars? Thanks....

it is actually a value neutral action, less fees, if you can exchange.

Here is a fairly logical question for those of you who think this will be a lop situation...

Why have they been gathering up the 1000K or more notes if it will be a simple 25 = 25K? Why would they care how many of these large denom notes are in circulation in country if this were the case? You dont need to be a genius to see much of what they are trying to accomplish. You also at the same time must use your own mind to disseminate the articles you read.

IMHO we are still on course for a nice return.

I just wanted to say that just because I believe this article describes a "redenomination/LOP", that doesn't mean I believe we are going to see a "redenomination/LOP".

it is a possibility they will RD with the worst case scenario being an "in Country only" exchange period.

but,

I still hope for, and am in this for a straight RV. :)

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your statement goes against all the article's for the better of Iraqi people, more purchasing power!! JMO but all u Lopper's should sell an move on, but but, but.....

just because someone discerns an article is about "redenomination" does not mean they are a "Lopper" :lol: :lol: :lol:

but I am beginning to think you are a "PUMPER" :lol: :lol: :lol: :lol:

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There is an old logic game .. It goes like this:

If you went to sleep . and when you woke up everything (including you) was 1000 times bigger ---- would you know that it happened?

The price of locally produced goods and services might increase x 1000 so an increase in purchasing power might not be seen there, but imports like cars, medicine, electrical generators and computers will be much more affordable- even with stiff tariffs.

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Megawat::::With a straight RD the REAL value of all goods in-country does not change only the numbers on the price-tag....Stuff that is imported was paid for in $ before the RD and will be paid for in $ after... Again NO value gain or lost. That is the rule of straight Rds...Bank accounts are adjusted ...Loans , rents mortgages, stock shares DITTO.

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just because someone discerns an article is about "redenomination" does not mean they are a "Lopper" :lol: :lol: :lol:

but I am beginning to think you are a "PUMPER" :lol: :lol: :lol: :lol:

What ever Floats yur Boat!! I really don't care what you think of me!!

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