Controversy over the deletion of zeros currency

[7Wishes]

Oh My Goodness, the rumors are flyin high today..... Dont waist your mental power on this.... we just wont know until it happens and IIIIIITTTTTTT has not happened yet.... So all you Chicken Pluckers.... hang in there and have a great weekend..... who knows it might just happen this weekend... again who knows.... Blessings to all....

Best post in this entire thread! I wish I could put my Dinar back in a shoebox, forget about it and just wait it out. Unfortunately we're so close, that's next to impossible lol...

[SteveI]

Food for thought, Phoenix NEVER said it was going to RV last weekend. He also has stated that he believes that the GOI needs to be seated first.

That is exactly what he said. Great job. God Bless and stay safe!

[frankc]

I'm not going to waste any time thinking about this. Just plan to wait till the big event and hope it does RV.

[johnfagan]

You won't have a redenomination of a currency without a revalue unless there is hyperinflation only. With both the redenomination and revalue of a currency, a 25K Dinar will be worth $21,500 (as in your example above) outside of Iraq. Inside Iraq, the price per products would drop from 25K Dinar to 25 Dinar.

Here's an example of what happened in Mexico in the 90's regarding redenomination. I hope that this explains it better..

Read under the heading of "Nuevo Peso".

http://en.wikipedia.org/wiki/Mexican_peso

I think I want to say that the $25,000 IQD notes that I'm holding will be worth only $25USD. That would be the smart thing on the part of Iraq wouldn't it? I mean why would they pay out all those millions of dollars when they can get teir money back from us for just pennies.

[Richardk]

On Oct 13th we were discussing the "CONFERENCE CALL FROM CC" (it's still under Chat Logs) - I haven't bought any Dinar from Ali/Dinar Trade and I don't plan on cashing in with him, but he was very informative on the call. Just wanted to highlight one thing for everyone that may have missed it.

..............................................

Thanks so much for the post. I listened through until Ali had to go. My notes are that:

1) He says that the GOI or Parliament has to be formed prior to RV (in his opinion) and it could happen anytime. He believes that Maliki, Allawi and the Kurds are working together to create power sharing positions

2) He said that there would not be a LOP because that would bankrupt Iraq and would do the opposite of what they've been working towards this entire time.

3) Iraq currently has an official 16% rate of inflation - which would make a LOP impossible

4) He feels the show on Friday will be to educate the Iraqi people on the changes that will be taking place with their economy and giving them a clear picture of what is going on

5) He stated that the translation tools we've been using aren't giving us an accurate picture of the news. He said he reads Arabic some and that he has employees and contacts that read it fluently, and the English translations aren't quite getting the correct point across

6) He stated that the media is using "Speculative detering methods", this is designed to keep people confused and not sure of the timeframe for the gov to form which will keep them from making a mad dash to buy dinar right before the RV. The less they sell, the less they have to honor for the RV cash in.7) They (dealers, traders, banks) would not get more than a 10 - 15 min heads up on the official announcement due to trying to control #6 above. He basically breaks down the analogy using Apple stock, etc. If you're told in advance its going to rise, obviously a ridiculous amount of people would be off and running.

8) He said that when the official RV is announced, his clients would not have to wait more than 9 days max for an appt. He said they'll open additional locations or employ additional employees to ensure that clients do not have to wait more than app, a week to cash in.

Read more:

................................................................

Looks like they're pretty good at their "Speculative detering methods"!!! Not looking so good in the media over there.

I recieved a reply to a email I sent Ali on Monday on this rumor of removing the 000. Ali replied " CBI has stated that they have no plan in removing the 000 and it's only a rumor". Then I read another article every day that they want to remove the 000. Ali has never lied to me as far as I can tell, so I would have to believe that it's just a way to slow down the Dinar speculators on buying tens of millions more Dinar. Of course most of this is IMO. Stay grounded, calm and "Be Happy", Our day will come.

Go RV/RI

[SteveI]

I think I want to say that the $25,000 IQD notes that I'm holding will be worth only $25USD. That would be the smart thing on the part of Iraq wouldn't it? I mean why would they pay out all those millions of dollars when they can get teir money back from us for just pennies.

I hope this help. I need to see this also to clear my mind.

I went back and found Phoenix's post from October 3rd 2010:

Phoenix Update: October 3rd 2010

Here is how it works.

When they do this...they revalue the Dinar at the same time as the reissue.

So as an example if it they set the exchange rate of the Iraqi Dinar at 1 IQD = $1 then your 25,000 dinar notes will be worth $25,000 each at that time.

So that is the revaluation.

Now IF you were in Iraq you would EXCHANGE that 25,000 dinar note for the lower denominations and if you were to get a stack of 1 Dinar notes for that 25,000 dinar note each one of those 1 dinar notes would be worth $1

Phoenix

Read more:

View PostMrRich, on 03 October 2010 - 02:03 PM, said:

Thanks for the post Phoenix. Now I would like to ask, your target rate of $2.20 ... is it still valid? And how does this lop/RV affect that rate if at all?

As far as I know yes it is.

BUT!

As we all know too well...the date and rate are classified and we will know when we know but the Ministry of Planning has been writing contracts as per their own admission at a rate of 1 IQD = $1.17 with a reminder to all Iraqi government agencies that the offical rate of the Iraqi Dinar is $3.22.

Not my words...not speculation but 100% factual information as per the Ministry of Planning of Iraq as posted on their website.

Best of luck to all.

Phoenix

Read more:

View PostUnitedrich, on 03 October 2010 - 02:07 PM, said:

Phoenix,

I wonder if you could clarify your opinion in this statement:

At the same time the New Currency is launched the older higher denominations will be called in and retired...this will be done with a time limit to allow people ample time to exchange the old higher denominations with the new lower denominations.

You are not saying that the average dinar holder will need to cash in his 25,000 dinar note for much smaller denominations to be cashed in at a later date are you? Or are you merely saying that the $25,000 note could be electronically changed into foreign currency and still not upset the balance of those who are changing the bigger denoms into smaller ones.

Could you let me and others know your opinion on this.

Thanks!

UR

No I am saying that the RV will happen at the same time the lower denominations are issued.

So for us it is the revaluation....and we will head to the banks.

For Iraqi's it is the revaluation AND a reissue of new currency.

So this "novel event" is the revaluation.

But know that after the set time to exchange the old higher denoms for new, the currency we all now hold now may be deemed worthless as of that end date......just as the old Saddam Dinars were deemed worthless after the 90 day exchange period had expired.

So in effect we will have a time limit to exchange and after that time limit has expired the dinar we now hold if not exchanged / cashed in will be deemed worthless.

Phoenix

Read more:

[drox]

Food for thought, Phoenix NEVER said it was going to RV last weekend. He also has stated that he believes that the GOI needs to be seated first.

I sure thought I read he said something about it going to RV last weekend on the 17th or something. I read back some of his posts and he clearly does seem to say that the GOI must be formed. So my apologies there. I think I got it confused with his post that the GOI was being seated last weekend and then an RV would soon follow. I think I was irked at the time that he was getting people's hopes up for that when clearly all the news pointed to it not happening.

[Fairways&Greens]

Oh, boy. . . this is a discussion that pops up like a bad case of acne.They are not going to LOP, because if they did a whole lot of work goes down the drain.

1. Contracts with foreign governments, oil companies, rebuilding contractors, etc. become worthless.

2. Iraq would be in a worse position than they are now with hyper inflation, effectively putting them into the stone ages (their position is already bad enough)!

3. Why would there be all the hype and misinformation coming out.

4. The goal is to rebuild Iraq, and bring them back on par or better with the other rich middle east countries and revaluing their currency to a competitive rate will make all of the above possible.

We have to think logically. Not time to hit the panic button. Quite the opposite IMO. If I could afford it, I would be buying a little more Dinar as we speak.

Also, I agree with others that Phoenix did not predict an RV last weekend. He gave us some good intel and said it is possible, thats it. Keep it real out there.

[hspotman]

Phoenix

But know that after the set time to exchange the old higher denoms for new, the currency we all now hold now may be deemed worthless as of that end date......just as the old Saddam Dinars were deemed worthless after the 90 day exchange period had expired.

So in effect we will have a time limit to exchange and after that time limit has expired the dinar we now hold if not exchanged / cashed in will be deemed worthless.

Phoenix

Read more:

This is what I have been trying to tell alot of people here, Steve. But alot seem to think that they will have "forever" to exchange their dinar in so that they can wait for a suitable rate for them. This is why I wanted to get as much dinar as I can, so that in the event of a low rv, I will still come out in very very comfortable shape.....semi-retirement at .86 -stress the word, "semi"

[SteveI]

This is what I have been trying to tell alot of people here, Steve. But alot seem to think that they will have "forever" to exchange their dinar in so that they can wait for a suitable rate for them. This is why I wanted to get as much dinar as I can, so that in the event of a low rv, I will still come out in very very comfortable shape.....semi-retirement at .86 -stress the word, "semi"

Again hspotman, you seem to be cooking on the right track. I intend on just letting this whole think unfold and then let the experts (you, Phoenix, Viper, etc) tell me if and when providing the next step is positive. I love your work and comments. Like always, Blessings you and your family.

[hspotman]

Again hspotman, you seem to be cooking on the right track. I intend on just letting this whole think unfold and then let the experts (you, Phoenix, Viper, etc) tell me if and when providing the next step is positive. I love your work and comments. Like always, Blessings you and your family.

Haaaaaaaaa..........please please don't group me into the word "expert",lmfao, I am anything but that, and have asked many many dumb questions on here. But again, I don't G/A/S about that

[Trimark]

Since this has turned into a LOP thread ....

A couple of other points to add to why a LOP doesn't seem likely (with a big thanks to lgraham for our conversations about these):

It would not help with Iraq's purchasing power. Currently a dinar is worth 1/10 of a penny. If the RV comes in at $3 and there is a LOP then the purchasing power of a dinar improves to just 3/10 of a penny. Not much of an improvement at all.

Chaos in the marketplace. According to the CBI website there are bills outstanding ranging from 50 dinars to 25,000 dinars. If they LOP the zeroes off a 25,000 bill and make it worth 25 then there are two options:

1) They can reduce the value of all the bills they now have. So, a 500 bill would be worth $.50 and a 50 dinar note would be worth .05, etc. That makes no sense because one of the purposes of a LOP is to decrease the number of bills a person has to carry. They would still need to carry a large amount of bills in order to do a transaction because the highest denomination bill they would have would be 25/25000.

2) The second option is to just lop off the three zeros of the big notes and keep the other bills. In that case the bills that are now worth more 25000, 10000 and 5000 notes would suddenly become worth less than the 500, 250 and 50 bills. Can you imagine how much chaos and bad feelings that would cause? That would be like someone telling us that our $100 bill is now worth only $5 but the $50 and $20 bills are still worth their face value. Anyone holding large bills would be ticked off.

A LOP would also increase the already sizable distrust that Iraqis feel about the banking industry and their currency. Money in banks during Saddam's time wasn't safe and a lot of Iraqis lost their money in them. One of the goals of the RV is to get Iraqis to use banks more and become more modernized with their banking. A LOP would not accomplish this if it suddenly makes a bill that is worth more than other bills in the marketplace suddenly worth much less. And, if option 1 is the way a LOP were implemented, the Iraqis would not have a need for banks and would likely still not feel good about putting their money in them.

[lgraham]

Thanks Trimark (+) You're getting really good at this!

All the best,

Lgraham

[SteveI]

Right on target Trimark. This process it suppose to improve the war torn country taking steps forward, not taking a step backwards! I truly believe it will all unfold for the best and in a very positive fashion. God Bless all of you that invested in this country.

[mrspen]

I recieved a reply to a email I sent Ali on Monday on this rumor of removing the 000. Ali replied " CBI has stated that they have no plan in removing the 000 and it's only a rumor". Then I read another article every day that they want to remove the 000. Ali has never lied to me as far as I can tell, so I would have to believe that it's just a way to slow down the Dinar speculators on buying tens of millions more Dinar. Of course most of this is IMO. Stay grounded, calm and "Be Happy", Our day will come.

Go RV/RI

Correct. We've heard several times that there will be negative press re: the RV prior to it occurring. We have the negative press.......so I'm ready for the RV!!

[Trimark]

Thanks SteveI. I agree about how this will unfold. I'm so ready for the after RV party in Vegas.

Lgraham - thanks. Slowly but surely. :lol:

[hspotman]

Thanks SteveI. I agree about how this will unfold. I'm so ready for the after RV party in Vegas.

Lgraham - thanks. Slowly but surely. :lol:

Is that where the after party is gonna be? Vegas? Is it the SCOOTER ROAST there too??

[Trimark]

Last I heard that's where it was going to be but it could have changed since then. I hope it's there. I like Vegas. There is a lot to do there and it's a FUN town.

[xxxgator]

First they re -denominate or delete the three zero's.Then like the Iraqui's Are worried About it would Make there money less to them.It would still Be the same Value to the rest of the world.This inturn makes Iraqui's to have to revalue or renstate their previos monetary value to the dinar.By the way ...To take a Dinar and say 1 is now worth 1000 is stating That the dinar would be equal to 1 dollar, or 25,000- into a 25 dinar. Same Thing!!! Otherwise The Iraquis would have 24,975.00 dinar less buying power!!!!

Peace

[hspotman]

Last I heard that's where it was going to be but it could have changed since then. I hope it's there. I like Vegas. There is a lot to do there and it's a FUN town.

Yea, Freemont St is a blast. Forget what that one hotel is called on Freemont with the shark tank you slide through......sh!^, on the top of my tongue..... Went to a high school reunion there(had it in vegas,what a blast). Stayed at The Plaza, reunion was at The Freemont. So stayed pretty much in that whole area the whole weekend. But post rv, I think I'll be able to go stay at the Mandalay and try there surfing pool , I'll have to pay them to crank the waves bigger though