dropping three zeros good or bad????

[adams1]

If they drop three zeros off of the currency does that mean my 25000 notes will only be worth 25 dinars or will i be able to exchange them for 25000 dinars in smaller denominations.... If they will only be worth 25 dinars that sounds like a really bad deal.. I am new to this and kinda confused on that!!

[Mongo]

If they drop three zeros off of the currency does that mean my 25000 notes will only be worth 25 dinars or will i be able to exchange them for 25000 dinars in smaller denominations.... If they will only be worth 25 dinars that sounds like a really bad deal.. I am new to this and kinda confused on that!!

[ATTACH=CONFIG]1238[/ATTACH]How many toes do I have?................. If I cut three toes off each foot........I still have two feet....right?

[adams1]

Yes....but you are down to 10 toes... unless you put the 6 you cut off in your pocket... then you still have the 16 you originally had..

[Mongo]

Yes....but you are down to 10 toes... unless you put the 6 you cut off in your pocket... then you still have the 16 you originally had..

In other words......If they drop 3 z's it will be on rate .00086= .86 25k note will still be worth 25k. So you still have two feet. don't keep those extra toes in your pocket to long........................what's that smell??

[Dinosaur]

ok THAT IS JUST TOO FUNNY. EVERYONE KNOWS YOUR TOES GO IN YOUR SOCKS NOT YOUR POCKET.

[ell]

I am sure that this horse is tired of being beaten, let's look at it from this angle, if they want to peg their currency to the US dollar and they take the 3 0's off the our side. So if we have a exchange rate of $1 dinar to .00085 USD, and we LOP the 0's offour side to $.86 USD to 1 dinar. so the real value would of the exchange would be .86/USD to the dinar. So now that I have said that you may roast away at this idea, as far as I know it has probably already been torched long before I joined this forum. I really enjoy the opportunity and the education I am recieving in world econmonics reading everything that is beening posted, not to mention the emotional rollar coaster ride that we all have been on. As Easter is fast approaching let's all try to remember what is truely important as we dream of all the "things" we wish to do with our potential wealth. Who do we serve, more importantly what kind of difference could we make to others with this... Thanks for the chance to be here and may God Bless you all.

[pleasantvalleySunday]

Thank you for this ell: "Who do we serve, more importantly what kind of difference could we make to others with this... Thanks for the chance to be here and may God Bless you all."

It is time to move past the argumentative stage of this situation and on to the spiritual side, "Thy will be done" .... nothing to do with who what where or when except keeping on track with it's purpose.

Edited March 28, 2010 by pleasantvalleySunday
I edited ...because I could ;)

[Ali]

Cash your Dinar in 2013

[Mongo]

Ell: I am sure that this horse is tired of being beaten. You just beat that horse at a different angle. Felt good didn't it?

[ATTACH=CONFIG]1240[/ATTACH]

[greebs]

The zeros come off the currency notes not the rate.

[gr8cooker142]

If they drop three zeros off of the currency does that mean my 25000 notes will only be worth 25 dinars or will i be able to exchange them for 25000 dinars in smaller denominations.... If they will only be worth 25 dinars that sounds like a really bad deal.. I am new to this and kinda confused on that!!

Have you read any other posts? UUUUGGGGGHHH!!!!

[adams1]

Thats what I thought greebs!!! Like I said I am knew to this and dont know a whole lot about currencies but i read the following on xe.com.

The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system."

[Mongo]

another lopper.......................................Oh brother

The zeros come off the currency notes not the rate.

[Mongo]

Thats what I thought greebs!!! Like I said I am knew to this and dont know a whole lot about currencies but i read the following on xe.com.

The Central Bank of Iraq has announced their plans to redenominate the Iraqi Dinar to ease cash transactions. By the end of 2010, they intend to drop three zeros from the nominal value of bank notes. It should be noted that the actual value of the dinar will remain unchanged. That means that 1,000 IQD (pre-redenomination) and 1 dinar (post-redenomination) will both be worth the same amount in US Dollars. As stated by the Central Bank of Iraq, their mandate is to "ensure domestic price stability and foster a stable competitive market based financial system."

Nominal value= RATE....... Actual value=25000=25000

[southerngal]

Mongo, you still crack me up!

[adams1]

nominal value

• n. Econ. the value that is stated on currency; face value.

[seastallion]

Adams1, like you I am new to this site, but I am not new to the dinar. It is great that you threw yourself out there in front of these wolves, and were bitten by a few of them. Here is a small piece of advice. Write your question down on a piece of paper and then take the main thought and search the old posts. 95% of the time it will have been asked and answered. Just so you know, you happened to pick a topic that is extremely volatile in the room. But keep posting.

[lanispaul]

Nominal Value

What Does It Mean?

What Does Nominal Value Mean?

The stated value of an issued security that remains fixed, as opposed to its market value, which fluctuates.

Investopedia Says

Investopedia explains Nominal Value

When referring to fixed-income securities, the nominal value is also the face value. When referring to capital goods, nominal value is also referred to as "book value".

[adams1]

HAHAHAHA!!!! I am not afraid of wolves!!! But thanks for the advise.... I am just looking for a real answer!!! I guess no one really knows what is going to happen until it happens!!!

[mrref]

Adam1 you finally got it right, no one has the answers. The only person on this site that you should pay attention to is your brother, the other Adam.......................

[pt497]

Nominal value= RATE....... Actual value=25000=25000

As further explanation of Mongo's Nominal and Actual values, if I may.

I will post this again as this issue was addressed previously by a CBI executive (you can look back for the articles yourself). It was stated specifically that the dropping of the 3 zeroes would not change the "face" (the term he used) value of the currency. What is the "face" value? That is the actual numbers on the currency. 25,000 dinar will remain as a 25,000 dinar, just as a 25 dinar introduced will be 25 dinars. What will change is the "purchase" value (the term used in the article). This means that the 25,000 note will have an increased purchase value of the dinars over less face valued dinars (such as a 25 dinar). In order to introduce new lower currency denominations it further means that of all the currency in its "base" purchase value will need to be equalized with a "constant" for all the currencies in circulation (new and existing dinars). This means that a "revalue" will occur in exchange rate to accomodate the increased "purchase" value given the dinars for purchase of goods at the new "market" rate (purchase value) of the dinar. The "removal" of the 3 zeroes is the removal of 3 zero denominations from circulation because they will no longer need a 1000 dinar note to purchase a coke for example, only 1 dinar because of the increase of purchase value as a result of increase in exchange rate (ex. assuming a 1 to 1 exchange with the USD). This is the best "layman" terms I have seen to explain this.