Stevevintennessee Posted August 1, 2012 Report Share Posted August 1, 2012 Hey everyone. I have been a DV member for a long time. I generally just troll the site, because quite honestly I am not cool with all the drama. I am however trying to understand something. First of all I am not a lop guy. I never have been. But I do have a question. Most people here are convinced that when the new denoms become available they have to have "value" added to them. Here is what I have never understood... Right now the exchange rate is 1165, which means a 25,000 IQD note is worth about $21.46 USD. Well is the new 25 dinar note was worth the magical .86 number guess how much a 25 note will be worth in USD? You got it... $21.50. If I exchange my 25k note for a revalued note then I would make a whopping .04 cents profit. Can anyone explain to me why this would be bad for the economy or how us exchanging a 25k note at the 1165 rate to a 25 note with an RV'd rate of .86 does not make total sense? Seems to me that would give the new currency much more buying power and value, without making anyone any profit. I may be totally missing something so please if I am help me understand. 2 Link to comment Share on other sites More sharing options...
nerd Posted August 1, 2012 Report Share Posted August 1, 2012 Hey everyone. I have been a DV member for a long time. I generally just troll the site, because quite honestly I am not cool with all the drama. I am however trying to understand something. First of all I am not a lop guy. I never have been. But I do have a question. Most people here are convinced that when the new denoms become available they have to have "value" added to them. Here is what I have never understood... Right now the exchange rate is 1165, which means a 25,000 IQD note is worth about $21.46 USD. Well is the new 25 dinar note was worth the magical .86 number guess how much a 25 note will be worth in USD? You got it... $21.50. If I exchange my 25k note for a revalued note then I would make a whopping .04 cents profit. Can anyone explain to me why this would be bad for the economy or how us exchanging a 25k note at the 1165 rate to a 25 note with an RV'd rate of .86 does not make total sense? Seems to me that would give the new currency much more buying power and value, without making anyone any profit. I may be totally missing something so please if I am help me understand. What you describe IS an RD (LOP is just dinar slang). The $.04 difference is just due to you using rounded values. The IQD at 1166 IQD per USD means 1 IQD is worth $0.00085763 USD. So with a 1000 to 1 RD one new dinar (call it the NID) would be worth $0.85763 so both 25,000 iQD or 25 NID are worth $21.44 . That is what Iraq has been saying they will do, what other countries have done in the same situation, what makes sense for them to do, so that likely IS what they will do. They don't have to of course they could just leave the currency alone (South Korea has an exchange rate very much like Iraq's and their economy has boomed for 50 years). What Iraq can not do is have a 100,000% RV, alas its just not possible. 2 Link to comment Share on other sites More sharing options...
JWJW11 Posted August 1, 2012 Report Share Posted August 1, 2012 (edited) What you describe IS an RD (LOP is just dinar slang). The $.04 difference is just due to you using rounded values. The IQD at 1166 IQD per USD means 1 IQD is worth $0.00085763 USD. So with a 1000 to 1 RD one new dinar (call it the NID) would be worth $0.85763 so both 25,000 iQD or 25 NID are worth $21.44 . That is what Iraq has been saying they will do, what other countries have done in the same situation, what makes sense for them to do, so that likely IS what they will do. They don't have to of course they could just leave the currency alone (South Korea has an exchange rate very much like Iraq's and their economy has boomed for 50 years). What Iraq can not do is have a 100,000% RV, alas its just not possible. Why the need to hide behind a new user name JMW.....NERD??? COMON MAN....your ---------- life shows thru no matter what username you use....--------------------- Please stop the personal attacks. If you have a problem with a member please contact a moderator! Edited August 1, 2012 by carlablum Personal attacks. 3 3 Link to comment Share on other sites More sharing options...
doctor robbins Posted August 1, 2012 Report Share Posted August 1, 2012 Steve you're exactly right. By redenominating Iraq will have a more valuable currency without handing over trillions of dollars to investors. nerd is correct in his response about the 4 cents. It's a neutral exchange that is only being done to make cash transactions easier. People who argue with you are either pumping or misinformed. 1 Link to comment Share on other sites More sharing options...
dinarck Posted August 2, 2012 Report Share Posted August 2, 2012 Steve I started a thread about this very topic. What it all comes down to is will they give you 1 new 25 note for your 25,000 note or will they give you 1000 new 25 notes for your 25,000 note. Period, end of story. There is nothing else. Its all really about which senerio you personally believe and why. 3 Link to comment Share on other sites More sharing options...
Realdinar Posted August 3, 2012 Report Share Posted August 3, 2012 Steve I started a thread about this very topic. What it all comes down to is will they give you 1 new 25 note for your 25,000 note or will they give you 1000 new 25 notes for your 25,000 note. Period, end of story. There is nothing else. Its all really about which senerio you personally believe and why. I agree. Link to comment Share on other sites More sharing options...
Recommended Posts