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Redenomination reasons and examples of the past.

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If there is a redomination and say the 25000 note turns into a 25 note, will you get 1000 notes at 25 to equal the 25000 dinar you have? I'm having a hard time seeing how this will work and not get screwed. If they only drop the 0's say you have 1,000,000 dinar, that would only be 1000 dinar exchanged at even 1 to 1 would only be $1000 not $1,000,000. So any thoughts on how this will work?

This is bad for investor. After a hard day of saving , suddenly it's gone. From something to nothing. BAD DINAR....

If this happened , its not save saving money inside your account cause today its worth millions , next month worth thousand or less!!

So buy a material such gold or what for a saving ...but not money because its just a plain of paper with weird faces and numbers on it. Its a art of Toilet Paper. Today you use , tommorow you flush to the drain. :angry:

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If there is a redomination and say the 25000 note turns into a 25 note, will you get 1000 notes at 25 to equal the 25000 dinar you have? I'm having a hard time seeing how this will work and not get screwed. If they only drop the 0's say you have 1,000,000 dinar, that would only be 1000 dinar exchanged at even 1 to 1 would only be $1000 not $1,000,000. So any thoughts on how this will work?

If there is a redenomination your 25k note will be equal to 1 new 25 note.....the currency we have now will not be RVd, only the new currency.....

So if you hold 1 million dinar, you would have to exchange that and you would get back 1000 new dinar at the new exchange rate so if the new rate is 1 to 1 with the USD, you will only get back 1000 USD....

You basically break even minus any fees you paid....

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2006-2007, the rates were changed frequently. But at the same time, inflation was running rampant...

They are likely not scared to increase the rate to curb inflation. But it seems they have a goal to maintain the rate.

Questions are... Why??

An article posted here a few weeks ago stated the IMF, after their periodic review, indicated the 1170 rate was exactly where it shoud be and expected Shabibi and the CBI would be able to hold it there for the next few years...{not a direct quote} the review was back in April with another report due early next year..

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In layman terms, the RD does nothing to the "true " value of the Dinar at the time.....its like Dalite mentioned in his post.....1:1000 = 1.7 per dollar. This new currency must then show an appreciation of value before the RV can happen. This process is still in the deciding....I dont think we'll see a RV too soon. For the record, I have 5MM Dinars...so I am hoping for a RV....

Just putting my economic education to use for my understanding

Edited by OfCamelot

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So if we RD as you say Keep how is Iraq going to pay off its debts? If they do this RD

I for one would'nt invest a dime into Iraq because how could you trust there

currency to get paid? Its like shabbs saying thank you america for buying dinar so

we can screw you but I made intrest from your buying it.Just think of all our money we used to buy this

toilet paper sitting in there bank making intrest that shabbs gets through investing.Theres alot

of money sitting somewhere? Looking through shabibi's eyes at this scenario:

Hey america I am going to RD then RV how did you like that big donkey dong up the wazoo

I used your bucks to make bank then I took your little bit of profit(RD) and got your notes back

now I am going to RV wow I would kill the basturd I mean just look what he did to his own people

He got most of the big notes off the streets by telling them its going to devalue even more I would'nt trust

him ever again and then he wants the same people he screwed to open bank accounts what a laugh

would you after that screwing?So the RD isnt going to help his people only himself and who would vote for that?

I mean get real when you stick it to someone would you trust him again NO !!! They did devalue the currency

during the war same as kuwait but they got theres back without a screwing and they are doing fine I know its

not the same total amount like Iraq but it RI'd so why shouldnt Iraq do this? Shabbs did say he was going to

increase the value of the dinar he just didnt say how or when.Shabbs knows we have a ton of dinar and he would

love to have it back now so he could RV and make huge bank! looking through shabibi's eyes again.hey america

I am going to lop then RV so only I can make bank and nobody else.no vote for me there I better rethink

if I am going to regain the peoples trust.Now you know why bush said the war was going to pay for itself it did

from the speculation that this currency was going to RV out of the gate,I just need to figure out how to get those notes back.

I think I will slowly raise the rate so the americans (suckers in his eyes) will cash in at a small rate to collect enough

notes so I can pay for a RV that would make some of my people happy and all of america slowly.But if I come out small

whales would start buying up all the dinar and sitting on it I cant have that I wont make a killing.What am I going to do?

remember this is shabbs thinking here: How am I going to make everyone happy and stay alive.I know I will come out at a 1.17

to dedollarize so my people will have faith again in the banking system and get almost all of the americans notes at that price

and then wait or slowly increase the rate for the next 2 years then RI making all happy especially me.All debts could

be paid easily with a RI and then some.Shabbs would have more than enough notes to pay including the new notes

along side the old notes for payment whew sounds good and flies all day in economics:

Shabbs is not very smart he should have thrown the switch right after we left at a low rate because just think

of how many more dinars were sold since then and still selling its just making it easy for shabbs to RD or lop then RV

and we lose if that happens but wont gain any trust for years down the road if he does this which means no investors

I mean he might get some investors if the government gives them a tax break.There is so many directions this could go

and according to my old professor he thinks we are gonna get screwed but he did lay out the same scenario I just laid out.

Shabbs has to make all happy or Iraq loses and of coarse us to.I was in Iraq for 5 years and saw multiple conexs filled with

dinar headed to the states haliburton got 4 full ones and bush jr. got 2 full ones I dont think we are going to lose unless they

give the whales a side deal we cant see and a rd or lop for the rest It can be done.right now if they RI back to where it was

it would crush iraq because of inflation everyone there would raise the prices of everything and thats what they should

control just like we do if someone price gouges during a hurricane its against the law to do this here.lets see what other scenario

can I cover? Oh first shabbs lop's then waits and then RD's and then waits and then RV's he wins and all of us lose and

no bank accounts for shabbs.If you cant get investors to invest in Iraq then he loses out of the gate.So how can most of you

say its going to Rv? Rd? Lop? when no one knows what shabbs is going to do? In economics it only makes since to make

all of your customers happy with very small losses no business is perfect so how do I cut my penny into 1/10's and make it grow

without losing my customers? I know I can use BB"s as my small coins just smash them flat and stamp a 1/10th on them

would be easier to carry until I print up enough of the old currency I am sure shabbs still has the die to stamp more

which I think he is doing the USA does it everyday.If shabbs doesnt RV the currency slow everyone will lose except shabbs

He has to make everyone happy or BYE BYE investors and he will never get enough people to make enough bank accounts

to make it worth his wild he will be just a currency exchanger and wont make to much profit by doing this.If shabbs comes out

higher than the rest of the countries how can they be competetive with the rest of the world? They would lose.

I know shabbs has alot of degrees but he is still not smart and if he does anything else but RV it will show you how

dumb he is.He might gain wealth but will lose all faith in investors and his own people.His own people would hate him

plus china would never do business with him EVER.would you?He either makes everyone happy or he will be given the same

fate as maliki death which is soon to come for maliki.So how would you do it if you were shabbs? laugh at everyone who

invested in dinar when he stuck us with a rd or lop to make financial gains for iraq and himself or make all happy?

lets see the smarties figure this out.make me happy or die and wither?Iraq's future is on the line they can either

gain superior power in the world or go back to fruits and vegetables to back thier currency?take your pic.If we all just get

our money back we lose and so do they but not Milburn Drysdale I mean shabibi he wins only if he makes the world happy.

Dont beat me up to bad This was my professor at UCLA who did this and some things he said made since.

He also said he would have NEVER bought dinar because there is to much of it in the world.slice and dice time?

which is a lop then RD and RV what will it be? I want a RV at 1.17 I am not greedy am I the rest of the world

is watching shabbs he is either a smart sucker or as dumb as the stick. GO RV and I pray it so for us.

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So if we RD as you say Keep how is Iraq going to pay off its debts? If they do this RD

I for one would'nt invest a dime into Iraq because how could you trust there

currency to get paid? Its like shabbs saying thank you america for buying dinar so

we can screw you but I made intrest from your buying it.Just think of all our money we used to buy this

toilet paper sitting in there bank making intrest that shabbs gets through investing.Theres alot

of money sitting somewhere? Looking through shabibi's eyes at this scenario:

Hey america I am going to RD then RV how did you like that big donkey dong up the wazoo

I used your bucks to make bank then I took your little bit of profit(RD) and got your notes back

now I am going to RV wow I would kill the basturd I mean just look what he did to his own people

He got most of the big notes off the streets by telling them its going to devalue even more I would'nt trust

him ever again and then he wants the same people he screwed to open bank accounts what a laugh

would you after that screwing?So the RD isnt going to help his people only himself and who would vote for that?

I mean get real when you stick it to someone would you trust him again NO !!! They did devalue the currency

during the war same as kuwait but they got theres back without a screwing and they are doing fine I know its

not the same total amount like Iraq but it RI'd so why shouldnt Iraq do this? Shabbs did say he was going to

increase the value of the dinar he just didnt say how or when.Shabbs knows we have a ton of dinar and he would

love to have it back now so he could RV and make huge bank! looking through shabibi's eyes again.hey america

I am going to lop then RV so only I can make bank and nobody else.no vote for me there I better rethink

if I am going to regain the peoples trust.Now you know why bush said the war was going to pay for itself it did

from the speculation that this currency was going to RV out of the gate,I just need to figure out how to get those notes back.

I think I will slowly raise the rate so the americans (suckers in his eyes) will cash in at a small rate to collect enough

notes so I can pay for a RV that would make some of my people happy and all of america slowly.But if I come out small

whales would start buying up all the dinar and sitting on it I cant have that I wont make a killing.What am I going to do?

remember this is shabbs thinking here: How am I going to make everyone happy and stay alive.I know I will come out at a 1.17

to dedollarize so my people will have faith again in the banking system and get almost all of the americans notes at that price

and then wait or slowly increase the rate for the next 2 years then RI making all happy especially me.All debts could

be paid easily with a RI and then some.Shabbs would have more than enough notes to pay including the new notes

along side the old notes for payment whew sounds good and flies all day in economics:

Shabbs is not very smart he should have thrown the switch right after we left at a low rate because just think

of how many more dinars were sold since then and still selling its just making it easy for shabbs to RD or lop then RV

and we lose if that happens but wont gain any trust for years down the road if he does this which means no investors

I mean he might get some investors if the government gives them a tax break.There is so many directions this could go

and according to my old professor he thinks we are gonna get screwed but he did lay out the same scenario I just laid out.

Shabbs has to make all happy or Iraq loses and of coarse us to.I was in Iraq for 5 years and saw multiple conexs filled with

dinar headed to the states haliburton got 4 full ones and bush jr. got 2 full ones I dont think we are going to lose unless they

give the whales a side deal we cant see and a rd or lop for the rest It can be done.right now if they RI back to where it was

it would crush iraq because of inflation everyone there would raise the prices of everything and thats what they should

control just like we do if someone price gouges during a hurricane its against the law to do this here.lets see what other scenario

can I cover? Oh first shabbs lop's then waits and then RD's and then waits and then RV's he wins and all of us lose and

no bank accounts for shabbs.If you cant get investors to invest in Iraq then he loses out of the gate.So how can most of you

say its going to Rv? Rd? Lop? when no one knows what shabbs is going to do? In economics it only makes since to make

all of your customers happy with very small losses no business is perfect so how do I cut my penny into 1/10's and make it grow

without losing my customers? I know I can use BB"s as my small coins just smash them flat and stamp a 1/10th on them

would be easier to carry until I print up enough of the old currency I am sure shabbs still has the die to stamp more

which I think he is doing the USA does it everyday.If shabbs doesnt RV the currency slow everyone will lose except shabbs

He has to make everyone happy or BYE BYE investors and he will never get enough people to make enough bank accounts

to make it worth his wild he will be just a currency exchanger and wont make to much profit by doing this.If shabbs comes out

higher than the rest of the countries how can they be competetive with the rest of the world? They would lose.

I know shabbs has alot of degrees but he is still not smart and if he does anything else but RV it will show you how

dumb he is.He might gain wealth but will lose all faith in investors and his own people.His own people would hate him

plus china would never do business with him EVER.would you?He either makes everyone happy or he will be given the same

fate as maliki death which is soon to come for maliki.So how would you do it if you were shabbs? laugh at everyone who

invested in dinar when he stuck us with a rd or lop to make financial gains for iraq and himself or make all happy?

lets see the smarties figure this out.make me happy or die and wither?Iraq's future is on the line they can either

gain superior power in the world or go back to fruits and vegetables to back thier currency?take your pic.If we all just get

our money back we lose and so do they but not Milburn Drysdale I mean shabibi he wins only if he makes the world happy.

Dont beat me up to bad This was my professor at UCLA who did this and some things he said made since.

He also said he would have NEVER bought dinar because there is to much of it in the world.slice and dice time?

which is a lop then RD and RV what will it be? I want a RV at 1.17 I am not greedy am I the rest of the world

is watching shabbs he is either a smart sucker or as dumb as the stick. GO RV and I pray it so for us.

By using USD through oil revenues.....just like they always have.....

Iraq pays off its debts with USD....not dinar.....a RV will have no bearing on Iraqs debts because that pertains to the dinar, not the USD.....

How would you feel screwed if you didnt lose any money? If you broke even on speculating on their currency? Central banks hate speculators and will do anything then can to keep from having to pay out to speculators.....

If they RD, you would end up with the same value of money that you had before except now with the NEW currency, its not diluted and its value is stronger.....so who loses with a RD? Only ones who expected a huge profit from speculation.....Unless you are investing in Iraqs resources, why would they care if you dont profit from their currency revaluating?? Why pay out millions of speculators when you can go the cheaper route and quicker route to getting your dinar on par with the USD??

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The Ultimate goal is to get back where they were...a prospserous country. Its in their interest for investors to buy the dinar as it goes to show confidence in the currency. I believe with the RD will come an RV in close procession. At that time I think the value will be around the $1.40 mark. Naturally this is just my opinion.

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The Ultimate goal is to get back where they were...a prospserous country. Its in their interest for investors to buy the dinar as it goes to show confidence in the currency. I believe with the RD will come an RV in close procession. At that time I think the value will be around the $1.40 mark. Naturally this is just my opinion.

If the CBI gets its way you are probly correct......not to mention if they did RD, they probly have enough reserves to back close to a 2 dollar rate from the get go.....not exactly what we are all hoping for but at least its not a loss....

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I could live with that...

A point to note...we will not loose any money as a result of the RD. The combined deletion of the 000's will be amalgamated in the new currency. So ID 1M...becomes ID 100K with a value of $1150. So at $2 per the return would be $200K.....yeah that would do me fine. I have 5MM Dinars.

Edited by OfCamelot

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I could live with that...

A point to note...we will not loose any money as a result of the RD. The combined deletion of the 000's will be amalgamated in the new currency. So ID 1M...becomes ID 1000 with a value of $1150 +/- @ .17 +/- per dinar.. So at $2 per the return would be 183% profit....yeah that would do me fine. I have 5MM Dinars.

Corrected my math.

Edited by OfCamelot

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Corrected my math.

You would obviously need to factor in the spread and exchange fees. But you are right, the return would be a little less than 2x on the original investment after everything is said and done.

For those who just recently purchased it's not a bad return. For those who have been holding anywhere from 3-8 years that is not very good at all. Many other investments have done much much better...

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Iraq wants to push the dollar out of the Market and replace it with the new IQD. Boom. It's that simple. Hyper inflation? Get out of here lol they want THEIR currency to dominate in the region because it actually holds value and would benefit their economy.

Those other examples don't fall into the same scenario. Those countries weren't dollarized like Iraq.

Edited by MrOptimistic
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Iraq wants to push the dollar out of the Market and replace it with the new IQD. Boom. It's that simple. Hyper inflation? Get out of here lol they want THEIR currency to dominate in the region because it actually holds value and would benefit their economy.

Those other examples don't fall into the same scenario. Those countries weren't dollarized like Iraq.

You sure about that?? I know Turkey was....

They do want a higher valued dinar regardless, but its because of the affects of past hyperinflation that is killing them right now and that is restricting what they can do....

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You sure about that?? I know Turkey was....

They do want a higher valued dinar regardless, but its because of the affects of past hyperinflation that is killing them right now and that is restricting what they can do....

you are right keepm and don't you agree that those other examples are quite irrelevant given Iraq's situations? I do.

but you are right about them fighting against past hyperinflation. which caused the artificial rate and is why we are here chatting it up today :D

so what is Iraq to do!?

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The Middle east as group discussed the petro dollar at the Arab summit recently. While not much has been said publicly, the Middle East wants a unified currency to edge out trading in Dollars. It would be imperitive for Iraq to be part of this move due to the oil reserves Iraq claims as a percentage. That will solve some major problems for Iraq's hyper inflation while establishing itself as a reasonable partner in moving out the dollar as a trading currency platform. TO be hones they have wisened up to our FIAT money and they would rather accept the yen more willingly...considering Iraq's recent oil agreement with China......I wonder where we were when these contracts were being dished out...mmmm...

This link: http://www.zawya.com/ is a super source of news as to how the middle east is booming with super sums going into infrastructure and development. The growth there is stupendous.

Edited by OfCamelot

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The Middle east as group discussed the petro dollar at the Arab summit recently. While not much has been said publicly, the Middle East wants a unified currency to edge out trading in Dollars. It would be imperitive for Iraq to be part of this move due to the oil reserves Iraq claims as a percentage. That will solve some major problems for Iraq's hyper inflation while establishing itself as a reasonable partner in moving out the dollar as a trading currency platform. TO be hones they have wisened up to our FIAT money and they would rather accept the yen more willingly...considering Iraq's recent oil agreement with China......I wonder where we were when these contracts were being dished out...mmmm...

This link: http://www.zawya.com/ is a super source of news as to how the middle east is booming with super sums going into infrastructure and development. The growth there is stupendous.

They have been talking about a GCC currency for years now. Not too sure what the pros and cons would be as of right now. Interesting though...

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The middle east having a unified currency... hmmm.... they can't even get along lol. It sounds logical though.

but i could see a similar "euro crises" happening in the middle east in that situation.

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you are right keepm and don't you agree that those other examples are quite irrelevant given Iraq's situations? I do.

but you are right about them fighting against past hyperinflation. which caused the artificial rate and is why we are here chatting it up today :D

so what is Iraq to do!?

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

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The middle east having a unified currency... hmmm.... they can't even get along lol. It sounds logical though.

but i could see a similar "euro crises" happening in the middle east in that situation.

Despite their apparant disputes amongst themselves, they answer to the same code. And therefore well managed. Lets face it, OPEC has had us by the nuts for the longest time.

The EU was a mistake from the start in its Charter. The Brits are superb administrators, that I will attest to. SO they kept out. Well here it is folks....the EU is inevitably going to be dismantled, every country except Germany fails. Our ratings will take a beating, and then we will realize the meaning of super inflation like we have never known before. Is that why we are "lending" so much money to the EU. Meanwhile, the only money that becomes a world new order of currency platform, and will hold strong, simply, its all backed by the oil. Our currency today....I wonder....what are we backed by??

The winners after this crisis is resolved will be the Brits (the only one left standing after the EU collapse), The Chinese, and The Arabs.

JMO, and off the topic of Dinars, I apologize.

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I don't think US govt will invest 400 million dollars a day in a country which is gonna LOP or simply redenominate. Don't forget all int'l companies jumping into this arena.

Michel

they did with Germany it wasn't 400 million a day but the Marshall plan was used after ww1 and they dropped zeros then they honored an exchange of old currency at 1.65:1 it also took about 25 years
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they did with Germany it wasn't 400 million a day but the Marshall plan was used after ww1 and they dropped zeros then they honored an exchange of old currency at 1.65:1 it also took about 25 years

Likewise with Japan. Germany and Japan are strong allies with the US. Wouldn't the US government want a strong ally in the Middle East?

I think it's amazing that the article that started this thread was posted back in 2010.

About 50 countries in the past 85 years have done an RD. And we are aware of only 2 countries that have done an RV. And even then, many people are saying that Germany's and Kuwait's RVs are not the same as the IQD RV.

This appears like a strong argument for an RD.

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Here's an excerpt from that article "Between 1960 and 2003, developing and transition economies redenominated currencies on 60 different occasions (Mosely, 2005). In 14 of these cases of currency redenomination, only one zero was removed. In nine cases six zeros were removed. The median redenomination removed three zeros.

Three zeros was the median. Hhmmmm?

If three zeros were removed, then a 1,000 IQD note would become 1 IQD. The current exchange is $1 = 1,165 IQD. After 3 zeros are removed, then $1 = 1.165 IQD OR 1 IQD = $0.86. ($0.858 to be more exact)

KamelKeeper submitted a post under Iraq & Dinar Related News titled "Central Bank: our goal to reduce prices and raise the value of the dinar". It seemed they were pointing to an 8%-10% increase in value but also stated "...the rise in bank reserves to 18 percent...." Not sure if they were looking to increase the value of the IQD by up to 18%. Link to article

An 18% increase on an RD'ed IQD would make 1 IQD = $1.01244. This is pretty close to 1:1 that many have been calling for.

Based on this news, the RV is now a strong possibility.

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