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Redenomination reasons and examples of the past.


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It's not wether they can RV or not. They have already RV'd several times, most recently in January. The question is to what magnitude can they RV. Based on the information available 18% seems about as good as its going to get.

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  • 2 weeks later...

It may not be that far off from USD but USD is also on the way out. The RV has been held back because there are much more serious global issues that are being addressed. Most likely EVERYTHING will RV and there will once again be a legal American currency (not federal reserve).

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  • 2 months later...

I have read through this thread and through many of the links. I just don't get how an RD can be anything other than bad for those holding Dinar stateside.

It appears at best if they do RD, those of holding the 5,000, 10,000 and 25,000 Dinar may be able to convert to a new lower denomination and with a coordinated RV, redeem for the new rate.

Which would be close or slight better than a 1 to 1 with the US dollar. Meaning we would be lucky to break even for what we paid for our Dinars to begin with and certainly not the 10,000 of US dollar or even millions in profit that have been thrown around.

At worst, we are stuck with an obsolete worthless currency. Am I being stupid here? If so what am i missing?

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  • 4 months later...

I have read through this thread and through many of the links. I just don't get how an RD can be anything other than bad for those holding Dinar stateside.

It appears at best if they do RD, those of holding the 5,000, 10,000 and 25,000 Dinar may be able to convert to a new lower denomination and with a coordinated RV, redeem for the new rate.

Which would be close or slight better than a 1 to 1 with the US dollar. Meaning we would be lucky to break even for what we paid for our Dinars to begin with and certainly not the 10,000 of US dollar or even millions in profit that have been thrown around.

At worst, we are stuck with an obsolete worthless currency. Am I being stupid here? If so what am i missing?

you are not being stupid

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  • 2 months later...

If you want to see an example of re-denomination of the US currency, or at least that's the same scenario that the IQD will take under the same form of government (Democracy). First there was the large denoms, $500, $1,000, $5,000, $10,000 and $100,000 and then came the small denoms. Now check the history out on the Wikipedia, http://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency

Can anyone show me where the $1,000 dollar bill became the same value as the $1 dollar bill? I think not, but in bring in the low denoms into circulation, the low denoms were injected and the high denoms were dejected and it was such a smooth process as to not shake up the currency system that it is not even mentioned in the history of the transition taking place. In my own opinion, it is exactly what will transpire with the IQD! So all of the deletion of the three 0's I think is nothing but smoke trying to get us to give up our IQD! Remember this is IMHO! Great post CableTech, thanks for your hard work!

wink.gif Cheers and Beers to everyone! laugh.gif

Jst my opinion but i dont think u can compare these large us bills to iraq. First off the usd large notes r still legal tender unlike what theoretically would happen in iraq. Tho obviously noone would spend them since the collectible value is much more tham the monetary value.

These were also taken out of circulation to make money laumdering and taking dollars out of the country cashfree harder to do since the smaller the notes the hardrr to conceal. Not due to changing economic conditions like inflation or and end to inflation which is generally why they rd

I have read through this thread and through many of the links. I just don't get how an RD can be anything other than bad for those holding Dinar stateside.

It appears at best if they do RD, those of holding the 5,000, 10,000 and 25,000 Dinar may be able to convert to a new lower denomination and with a coordinated RV, redeem for the new rate.

Which would be close or slight better than a 1 to 1 with the US dollar. Meaning we would be lucky to break even for what we paid for our Dinars to begin with and certainly not the 10,000 of US dollar or even millions in profit that have been thrown around.

At worst, we are stuck with an obsolete worthless currency. Am I being stupid here? If so what am i missing?

We are all jist speculating but i think ur scenario is the most likely

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If you want to see an example of re-denomination of the US currency, or at least that's the same scenario that the IQD will take under the same form of government (Democracy). First there was the large denoms, $500, $1,000, $5,000, $10,000 and $100,000 and then came the small denoms. Now check the history out on the Wikipedia, http://en.wikipedia.org/wiki/Large_denominations_of_United_States_currency

 

Wow this is going back a long way, but I saw a ref to this old post so I just wanted to point out that Blue-Duck is wrong here.  Check out the US Treasury page.  First were 1 and 2 dollar gold coins, then in 1861 50, 100, and 500 notes and in 1862 0.5, 5, 10, and 20 dollar notes.

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The only problem is that they are in fact all tied together in relation.....monetary policy gone bad! lol

While all their economical situations were different, and yes, nothing has happened like this is a very potentially wealthy country, even that cant erase history....none of those countries could really....the easiest way to get back to square one was by RD....

What Iraq needs to do is take this time to shake up this monetary policy that they have going that they are complaining of being a failure.....sell bonds like they proposed (will help reduce the money supply) and find other ways to pull money off the streets....20million posted information I believe about how countries COULD use currency auctions to pull currency in as well....they have options, but maybe they are just clueless about them?? LOL

You know Keep it wasn't too long ago there was a couple of articles on Iraq selling bonds.  Maybe it was before Shabs left.

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You know Keep it wasn't too long ago there was a couple of articles on Iraq selling bonds.  Maybe it was before Shabs left.

They have sold some, I recall a page on CBI.iq listing them somewhere.  Just a few million USD worth I think, and denominated in USD not IQD if I recall correctly (which I'm not sure I am).

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They have sold some, I recall a page on CBI.iq listing them somewhere.  Just a few million USD worth I think, and denominated in USD not IQD if I recall correctly (which I'm not sure I am).

I know Shabs talked about it, and I was thinking after he left they put it into action.  They did sell some bonds back in maybe 2005, but Shabs stopped it.  I always felt the reason he might have done so is because the plan was re dominating the currency.  Maybe there was no point to it if they RD'd.  Again, I am not real savvy on economics, but it kind of made sense to me.

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  • 1 month later...

See file for redenom examples and why they took place as well and what actions they took. This should also explain why we are not in the same boat and the lop theory is not valid for Iraq...

 

 

If Iraq ends up fazing out the higher denominations such as the 25K any idea how long we would have to trade those in for lower denominations?  Also, if you were buying new dinar today would you buy 25K denom or the 1,000 denomination? I noticed on DinarTrade that the 1,000 are selling for a much higher amount.

 

Thank you

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So the chart showing they removed zeros, makes me think lop, but the chart showing they had time to switch them out makes me think we'll have time to cash in, and then they move to new currency without all the zeros.....is that correct?

I'll lay 5 to 1 you are right.  If they screw the outsiders they screw the insiders if that makes any sense.

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in all those rds how many  had an invading military force backed up by the united nations replace their currency . and a paris club meeting that removed 85% of its debt ...the very cause of the degt to gdp ratio deficit that caused the dinars value to plumet .. and that military force forcably removed the entire govt and replaced a dictatorship with a democracy ..

 

so i see some differences in iraqs situation that are not part of any other redenomination ..so if they redenominate .. does anyone see anything different here or is it just me

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Hyperinflation is empirically measured at figues exceeding:

 

  • 10% per day,
  • 50% per month, or
  • over 25% per annum, compounded.

This does not apply to Iraq, as any current figures upon research would verify.

 

lopsters state past hyperinflation is problem...

I called Currency Exchange International in Orlando and two people there told me that when the RV happens our dinars that we have will be worth the value of each dinar. As reported the CBI on video this not "A lop" it is just to free up zeros to help the citizens spend more.

For example if you have 3 million dinars and the dinar is RV to 1.00 USD you will receive 3 miliion USD for your 3 million dinars.

If you want to get the truth talk to companies like currency ex international that have the facts. Most of these posters have no idea what they are talking about.

Like that.

Any advice from them on taxes?

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in all those rds how many  had an invading military force backed up by the united nations replace their currency . and a paris club meeting that removed 85% of its debt ...the very cause of the degt to gdp ratio deficit that caused the dinars value to plumet .. and that military force forcably removed the entire govt and replaced a dictatorship with a democracy ..

 

so i see some differences in iraqs situation that are not part of any other redenomination ..so if they redenominate .. does anyone see anything different here or is it just me

Well said. I agree. Of course I don't want an RD....however what you say makes sense. (not since) God people can anyone here spell? LOL ----------------

Sorry, old habit...

 

And why haven't they RD'd if that is the course? Why not just do it? There is no new ISO code, they have hi-tech currency, they are discussing all the things necessary to do, and pass as law, for a higher value, not an RD.

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  • 3 months later...
  • 7 months later...

lopsters state past hyperinflation is problem...

Like that.

Any advice from them on taxes?

Taxes are co fusing nobody knows. The us co siders currency to be the currency of a country. Dinar is the currency in iraq so in that sense its a currency.

That said if theres a limited market for something ie a fund sold by one company things are often consideted secyrities or commodities. Thougj most of us think of dinar as a currency because its not a traded currency and the cbi is essentially the only one who buys it back in some may try to make an argument its a security or commodity. Im no tax expert so im not sure if one is taxed at a lower rate but theres an argument to b made on both sides

If Iraq ends up fazing out the higher denominations such as the 25K any idea how long we would have to trade those in for lower denominations? Also, if you were buying new dinar today would you buy 25K denom or the 1,000 denomination? I noticed on DinarTrade that the 1,000 are selling for a much higher amount.

Thank you

They wont phase out individual notes if one goes they all go and a new currency goes out. Typically you have 6 months to a year if there is a timeline. Many times its forever tho as with usd canadian and gbp.

I know people have posted links to the MRI currency guide in the pastif you look at that guide you can see some examples of cash out time for various currenciesif I'm not mistaken many Euro countries currencies are still redeemable 10 years later

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My brother was in Bosnia whenever we came in and blew up the serbs.long story short.he purchased a lot of currency and I'm soory but I don't remember which currency it was.everybody thought it was going to go up in value.they did a LOP and he lost several thousand dollars.he tells me all the time that Iraq will do the same but I think that he is wrong on this one.every country is different and Iraq is a special situation.

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  • 8 years later...

I just hope if they do RD we have time to change in our notes and there are reputable places online where we can safely exchange notes without astronomical fees. I am optimistic however towards an RV due to the fact if they were going to RD why haven't they done it already, why wait?

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They will not be printing any of the new old notes ,the ones that were printed  in Switzerland at great expense by the authority of the USA , and fraught with security features , anagrams , gold threads , intricate printing , some kind of rice paper , real oxblood , uncounterfeitable . The higher the note , the more security features it has . You ain't seen nothing yet until you look at them under a black light . Our notes will be honored  , as they constitute a legal ownership with Iraq itself . It's possible that lower notes will not  be tangible , and exist on a card .

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