What if only a redenomination occurs this year?

[Clay210]

I'm sure this has been asked, but I don't have the time to search all the old posts. What would happen if the redenomination occurs at the end of this year taking out the 3 zero bills and there is no RV? If they give a 30-45 day cash in window to get them out of circulation, what options would a person have if it is not yet recognized internationally? Would you be able to trade in for the lower denoms with lets say Ali or anyone else? Thanks for any insight on this horrific scenario.

[Kimjackie]

Then you trade in and get bills small enough to cover the amount you have. I think you would need a suitcase instead of an envelope though. This is just my thought.

[TKM]

Probably more than one and they would need wheels.

This was a good question for understanding.

[Uncle Barkie]

Oooowwwwwwwwwww... thats 200 50 count bundles of 100 dinar bills per million....lol .. got an suv to bring ....lol

[Hopeful Leo]

That would totally stink.

[zantac]

There want be enough small denoms to cover the recall of the 1000s let alone the higher notes.

Dont panic will not happen

[Doc31]

There won't be enough small denoms to cover the recall of the 1000s let alone the higher notes.

Exactly!

Peace

Edited August 6, 2010 by Doc31

[keepmwlknfny]

I'm sure this has been asked, but I don't have the time to search all the old posts. What would happen if the redenomination occurs at the end of this year taking out the 3 zero bills and there is no RV? If they give a 30-45 day cash in window to get them out of circulation, what options would a person have if it is not yet recognized internationally? Would you be able to trade in for the lower denoms with lets say Ali or anyone else? Thanks for any insight on this horrific scenario.

If they redenominate the rate of exchange will have to change as well.....they wouldnt put out the smaller denominations without raising the value of the currency, they are trying to ease cash transactions, not make them worse....if they put out the smaller bills and not raise the purchasing power and value then it would be like going into a store to buy 5000 dollars worth of stuff and you have to pay in all 10's or 20's.....that would be silly....not to mention they have said both older and new bills will be accepted in the marketplace for some time until they have all the bigger bills in which wouldnt take long just by putting the smaller ones out.....and IF.....IF there was an exchange window which I HIGHLY doubt would happen your looking at a 6 months to 1 year timeframe....and that could actually be a little longer......wouldnt be 30 to 45 days....thats for sure.....

[Clay210]

If they redenominate the rate of exchange will have to change as well.....they wouldnt put out the smaller denominations without raising the value of the currency, they are trying to ease cash transactions, not make them worse....if they put out the smaller bills and not raise the purchasing power and value then it would be like going into a store to buy 5000 dollars worth of stuff and you have to pay in all 10's or 20's.....that would be silly....not to mention they have said both older and new bills will be accepted in the marketplace for some time until they have all the bigger bills in which wouldnt take long just by putting the smaller ones out.....and IF.....IF there was an exchange window which I HIGHLY doubt would happen your looking at a 6 months to 1 year timeframe....and that could actually be a little longer......wouldnt be 30 to 45 days....thats for sure.....

Ok, that makes more sense. The scenario just crossed my mind and I didn't know if it could hurt us. Thanks for the explanation. I am highly invested now and didn't have the opportunity to put mine in a Warka account before they quit allowing dinars in or out of the country. So was just hoping nothing like that could hurt me. Thanks again.

[keepmwlknfny]

Ok, that makes more sense. The scenario just crossed my mind and I didn't know if it could hurt us. Thanks for the explanation. I am highly invested now and didn't have the opportunity to put mine in a Warka account before they quit allowing dinars in or out of the country. So was just hoping nothing like that could hurt me. Thanks again.

You can still open a warka account if you wish....I dont think its necessary but to spread around what you have you can open an account with them if you wish......just email them and they will tell you how, you basically wire transfer USD from your account to CitiBank and then they transfer it to warka....

[sportfisher]

I'm sure this has been asked, but I don't have the time to search all the old posts. What would happen if the redenomination occurs at the end of this year taking out the 3 zero bills and there is no RV? If they give a 30-45 day cash in window to get them out of circulation, what options would a person have if it is not yet recognized internationally? Would you be able to trade in for the lower denoms with lets say Ali or anyone else? Thanks for any insight on this horrific scenario.

OK, to start off with, I believe the whole "Redenomination" statement is a total smokescreen. If I believed IQD was going to redenominate, I would NOT have gotten involved in this investment.

http://www.investopedia.com/terms/r/redenomination.asp

Redenomination

What Does Redenomination Mean?

1. The process whereby a country's currency is recalibrated due to significant inflation and currency devaluation. Certain currencies have been redenominated a number of times over the last century for various reasons.

Redenomination is a LOP.

It is NOT just issuing smaller denominations and removing larger.

It is issuing a new currency that replaces ALL the existing currency at a specific devaluation of ALL notes across the board.

What we are looking for, is a RV or RI

[sportfisher]

Is everyone in denial about what redenomination is? Look it up for yourself.

[keepmwlknfny]

You really need to learn what a redenomination is. You post quite often on it and then give out a purely wrong explanation of it. After a redenomination, that 5000 (old) dinars worth of stuff now only cost 5 (new) dinars. Read up on redenomination. It has happened dozens of times in recent history and it is very simple.

Yes, old and new bill are usually accepted for some time. You would use an old 5000 dinar note or a new 5 dinar note to pay for the goods because they have the exact same value. Again, it's been done dozens of times so one could guess that it does work.

Who said anything about what the value of the dinars would be? hahahaha maybe you arent reading what I am saying correctly......Im not talking about what our bills will be worth and all that nonsense....just saying when or if they did, there will be smaller denoms and the exchange rate of the dinar would be changed.....hahaha....they wouldnt redenominate and leave the dinar at 1170 to 1.......please point out where I said that our current dinar would be equal to the new rate if the redenominated.....

[sportfisher]

You really need to learn what a redenomination is. You post quite often on it and then give out a purely wrong explanation of it. After a redenomination, that 5000 (old) dinars worth of stuff now only cost 5 (new) dinars. Read up on redenomination. It has happened dozens of times in recent history and it is very simple.

Yes, old and new bill are usually accepted for some time. You would use an old 5000 dinar note or a new 5 dinar note to pay for the goods because they have the exact same value. Again, it's been done dozens of times so one could guess that it does work.

Can anyone please just admit that a redenomination is a LOP ???? Do your own research, look up Redenomination, Demonitisation, and Devaluation. All three terms have a lot in common.

[keepmwlknfny]

Who said anything about what the value of the dinars would be? hahahaha maybe you arent reading what I am saying correctly......Im not talking about what our bills will be worth and all that nonsense....just saying when or if they did, there will be smaller denoms and the exchange rate of the dinar would be changed.....hahaha....they wouldnt redenominate and leave the dinar at 1170 to 1.......please point out where I said that our current dinar would be equal to the new rate if the redenominated.....

Not to mention we would be given a timeframe to exchange our bills.....was just tryin to make the explanation simple for him to understand and not confuse him hahaha not going to happen anyways so why dont you just take care of yourself.....if you can.....

[sportfisher]

Can anyone please just admit that a redenomination is a LOP ???? Do your own research, look up Redenomination, Demonitisation, and Devaluation. All three terms have a lot in common.

I think my posts are invisible

[keepmwlknfny]

I think my posts are invisible

hahaha no they arent....sorry.....hahaha yes if we wanted to break it all down it could be potentially pretty bad but thats not going to happen if Iraq wants and needs to move forward in the global marketplace......

[puppylove]

I think my posts are invisible

[sportfisher]

I'm sure this has been asked, but I don't have the time to search all the old posts. What would happen if the redenomination occurs at the end of this year taking out the 3 zero bills and there is no RV? If they give a 30-45 day cash in window to get them out of circulation, what options would a person have if it is not yet recognized internationally? Would you be able to trade in for the lower denoms with lets say Ali or anyone else? Thanks for any insight on this horrific scenario.

You should really find the time to research what a "redenomination" is.

[kaka]

everything will be happens on time .thx for the post

[pefain01]

I think my posts are invisible

Your posts aren't invisible and I agree with you! There are some who don't think a redenomination is even the slightest possibility so they tend to avoid it altogether. Some people don't want to hear anything other than "you will be rich and make 1000% + on your money by Friday" and they disregard all the rest

[sportfisher]

I think I see what you are saying, and you are right. A redenomination requires a new currency to be issued. It is a fact that if there was a redenomination today at 1000:1, the new exchange rate would be 1 USD = 1.17 new dinar. About 50 countries have redenominated in the last 100 years and most have had a reasonable exchange period to include a time where one or the other currencies could be used for transactions. Talking about value is necessary to answer the questions asked on this site. Just to ease some others fears here, IF Iraq did pull a redenomination, 1 USD = 1170 old dinar = 1.17 new dinar. Your investment would not change in value.

Correct, your investment holdings would not change in value, other than the expense of exchanging for new currency.

[Clay210]

Ok guys the basis for my question was "What would be the exchange possibilities if this did happen.?"You guys are all arguing with each other over if it could happen or not and what the meaning is. No one has addressed the initial question. If it came to a point where you had to cash in the 3 zero bills, what would you have to do? If its not traded internationally then obviously banks are out of the question, so what other options are available? I understand the value issue, its the actual conversion that I am asking about.

[sportfisher]

Ok guys the basis for my question was "What would be the exchange possibilities if this did happen.?"You guys are all arguing with each other over if it could happen or not and what the meaning is. No one has addressed the initial question. If it came to a point where you had to cash in the 3 zero bills, what would you have to do? If its not traded internationally then obviously banks are out of the question, so what other options are available? I understand the value issue, its the actual conversion that I am asking about.

Good point Clay,

The first few initial comments derailed the thread question, and ignorance spawns pointless debate.

IMO, we would be at the mercy of dealers near you, and subject to an exchange fee.

Edited August 7, 2010 by sportfisher

[Rhnda]

You asked a very insightful question that most will undoubtedly want to avoid answering.

When the RV wealth storyline draws to a close, the cashing in of your paper cash portfolio

should present quite a challenge. There is no market - especially for paper currency.

This market is all about selling Dinar....millions are being made off of hopeful speculators.

I suppose that is fair to some degree as speculation makes the world go round...BUT,

there is no real institutional buying market, so it tends to be LOPsided (pun intended) on the

side of the seller. The promises to "cash in" are really ploys to continue fueling the buying cycles.

You should also perhaps ask yourself this? If a Dinar broker sells you 1 million dinar for $1000 dollars,

his margin is roughly $100 bucks. This is a handsome margin on a currency trade and the broker

does well selling 10-100 million dinar a day...(do the math and you will puke when you see how much these

sellers are making) but currency speculation requires a short and a long term position to keep cash coming into the market. Let's say that the RV happens as portrayed in this forum....you suddenly want to go back to the seller and cash in your dinar for $1 million US dollars, but the broker only collected $100 in commission on the sale side of the transaction....Since there is

no other side, he has no real funds to fund your cash in position.

That is the catch to this whole thing....there is NO MARKET to provide funds even if the arbitrary RV

was to happen....this RV story is only profitable for the sellers....

Iraq is a long way from establishing a true buy/sell market and there are really no short term answers

to either profitable oil contracts or currency contracts....not to mention the government that would make all this

happen is still in complete shambles....

Probably not the answer you want, but it does address cashing in your Dinar.