How can they do that?

[RandolphA]

There is one thing on my mine if anyone has seen any facts about it. If some one pays the present rate for a 25000 dinar bill and some one pays the present rate 50 dinar bill and they remove the zeros that would mean that the person who paid a 1000 times more will realy make less or a return. Am I right? If so how can they do that?

[RandolphA]

What?

If youre talking about the fact that it costs more to get a 50 from a dealer than a 2500. The additional cost is due to the dealer, not the value of the dinar.

If they LOP then the 50 would be worth about .05(a nickel) and the 2500 would be $25. But the actual value of the dinar that oyu hold would not change.

Right now the value of 25000 dinar is $21 us dollors and 50 dinar is worth about .04 US cents. If they take off the three zeros you are left with a 25 dinar bill which will be worth .02 cents US. and the 50 that has no zeros to drop will still be worth .04 cents US.

So i paid 10 times as much for a bill 25000 note that will be worth less than a 50 note. This is if they drop the three zeros before the RV. Please dont take this as I think I am right I am just trying to understand this droping the zeros before we can cash in or exchange it.

you are wrong... If you are talking about a lop, the entire old series of currency will be replaced by a new series... your old 25,000 would be traded for a new 25, and your old 50 would be traded for a new 0.05 ... an iraqi bank account worth 3,987,654.321 old would be worth 3,987.654 new... do you see the pattern

I under stand better now. Thanks

[dlb]

the old 25,000 is worth $21....the new 25 is worth $21.... the old 50 is worth 4 cents... the new .05 is worth 4 cents the "drop three zeros" is just a term... the correct term is "move the decimal point three places... on every old note... not just the ones with three zeros.... all of them.... every one...

the old 25,000 is worth 500 times the old 50... the new 25 is worth 500 times the new 0.05 no change in proportions...

Whoooa, wait a minute. Call me an idiot for not catching on, but I have read no where that zeros would be dropped from the dollar amount of the notes themselves. Correct me if I am wrong, but when referring to dropping three zeros, does this not mean the current rate of : 1 Iraqi Dinar = 0.000855 USD. Dropping the three zeros would mean this changing to: 1 Iraqi Dinar = 0.855 USD.

Please correct me if I am wrong.

[Guest reed]

Whoooa, wait a minute. Call me an idiot for not catching on, but I have read no where that zeros would be dropped from the dollar amount of the notes themselves. Correct me if I am wrong, but when referring to dropping three zeros, does this not mean the current rate of : 1 Iraqi Dinar = 0.000855 USD. Dropping the three zeros would mean this changing to: 1 Iraqi Dinar = 0.855 USD.

Please correct me if I am wrong.

[Guest reed]

You are correct. If you drop the last 3 zeros from the not you also drop the first 3 zeros from the exchange rate

[Guest EBJNYC]

What?

If youre talking about the fact that it costs more to get a 50 from a dealer than a 2500. The additional cost is due to the dealer, not the value of the dinar.

If they LOP then the 50 would be worth about .05(a nickel) and the 2500 would be $25. But the actual value of the dinar that oyu hold would not change.

The FACE or PAR VALUE of the dinar BANKNOTE will remain --- there will be NO lop --- watch only the CONVERSION or EXCHANGE RATE for spot transactions.

[Kimjackie]

There is one thing on my mine if anyone has seen any facts about it. If some one pays the present rate for a 25000 dinar bill and some one pays the present rate 50 dinar bill and they remove the zeros that would mean that the person who paid a 1000 times more will realy make less or a return. Am I right? If so how can they do that?

IT DOESNT MATTER--THERE WILL BE NO LOP SO PLEASE GET OVER THIS.

[Dinarisserved]

I think that the term "three zero LOP" is synonymous with redenomination (1000:1 redenomination specifically). I think you will find a lot of the actual news stories you see referenced on this site use both terms to mean the same thing. An example from a story outside of Iraq is here: Jakarta Look at the first two paragraphs.

You are not completely wrong though. Since there is absolutely no loss of value in a redenomination/LOP, You will have 1000 times less IQD after a three zero LOP/1000:1 RD, but each new IQD is worth 1000 times more than the old. You do not lose or gain anything. 25,000 old IQD x 0.00085 = $21.25 USD. 25 new IQD x 0.85 = 21.25 ______ 50 old IQD x 0.00085 = $0.0425. 0.050 new IQD x 0.85 = $0.0425 USD.

The example you gave has been written on this site often. I would suggest that if you really want to learn what a redenomination is, you forget all of the crap found in the forums (including my crap) and do your research only at credible sites like the US Fed i.e.

Thank you so much. I didn't have to type that out, and you explained it nice and neat.

[RiverStyx]

IT DOESNT MATTER--THERE WILL BE NO LOP SO PLEASE GET OVER THIS.

Not necessarily true. The CBI stated this month after the court ruled last month. last month was stated by the court, the 3 zeros would not be removed. Since then the CBI stated that they would meet with the new gov once seated to determine this.

First off, I agree there will be mass confusion and havoc. However the origional statement and many follow up statements was to leave the smaller dinar in circulation but only to remove the 3 zero's from the top thousand notes.

That to me reads the 25,000 the 10,000 and the 5,000. The last thing told was on the video translation of removing the 0s from all the thousand dollar notes leaving the lower denom's in circulation. It never stated in any of the articles of the lower denoms losing their value.

But yess the 25,000 would be worth 25.00 at a 1 to 1. Ali told me on the phone that if they did do a redenom of any money they would have to do all the money but that is not what was told on the tv translation or the CBI web site.

Once they make the decision, at that point it will be to late to do anything about it. Not like they will tell you in advance and give you time to change anything.

Now My thoughts on this..... My hope and thought would be that if they do anything to change anything they will do it all and let us exchange it. But .... My fear is that it will be to lower the value so lets say you have a thousand invested you will only make a thousand on it. Just an example. It would make more sense for them to do it from a business stand point since they would not have to pay out but a fraction of what was paid in. Then everyone makes money. We just do not make what we want or expect too. Just business logic, not my wishes or thoughts when I invested.

DO not SHOOT the MESSENGER please.

I have been reading this crap for 6 years. I will wait to see what the CBI does with the new government according to their last statement.

PS. Banks aren't in business to lose money.

Edited October 28, 2010 by RiverStyx

[RiverStyx]

Don't think so lol

[Kimjackie]

Don't think so lol

So RiverStyx you are saying that some notes are good to go (lower denoms) and others that we have with 000 are not. I doubt the governments of countries holding Dinar (like U.S) will like that very much especially since GWB said this war will pay for itself many times over. They will give us time to return the notes and take those back at the new RV rate. I still say IMO we will not have the LOP , but if there is one it wont affect us.

edited for spelling. sorry

Edited October 28, 2010 by Kimjackie

[bkhopefull]

All notes get a LOP

What governments? do you have a link?

Do you know what GWB was thinking when he made that statement?

You really believe Iraqis will allow dinar holders to grab all of the countries wealth and become millionaires, while they still live in poverty?

Dustin hayes?

[RiverStyx]

So RiverStyx you are saying that some notes are good to go (lower denoms) and others that we have with 000 are not. I doubt the governments of countries holding Dinar (like U.S) will like that very much especially since GWB said this war will pay for itself many times over. They will give us time to return the notes and take those back at the new RV rate. I still say IMO we will not have the LOP , but if there is one it wont affect us.

edited for spelling. sorry

I have stated from the start that I nor anyone can say what will happen until it comes to pass. However to your question on the notes. All the articles and statement from the past from the CBI or the Media have reguard to removing the zero's or the thousand's notes or some refer to the top three thousand notes. Stating that they will leave the smaller denominations as they are.

Many in these forums have read it the same way. Many think it is refering to the 0's on the value end. The ones to the left of the value. The ones I have spoken with that I look up too and respect say that they see it and read it as it says from the notes. It does say the Notes. The links are all over the lop section and other sections in the DV site as well.

I don't know. I am waiting as excited as anyone in here to see the final outcome. What I believe is this.

If a Government invested millions and gets back a 10 cent return on the dollar they still did great and won't cry about it. It stands to reason for them to redenom as most countries have. Only the little guys (most of us) would not see a significant return compared to the big players.

I think if it does not drop the zeros you will see a deadline to turn them in until they can take them out of circulation. During which time I think the exchange rate will be on the lower side until the thousands are off the streets. After that deadline I think that they will be worth nothing. Then at that point you will see the rates increase. Everyone I have spoken with on one to one calls or chats have concurred.

Let me put it this way, if you started a new bank (or started over) and new currency, sold all you could, and then wanted to revalue. Can you afford to take what you made from a thousand percent reduction in price as this has and then reverse it to a even exchange let alone a plus side like anywhere from 1.01 to even 3.45 and afford to stay in business?

They are in this not only as a banking business but to support a nation. I do not think anyone will disagree with the fact that first and foremost this bank has to support Iraq. Secondly the bank has to support the bank and its share holders. Not the money holders. Now to pay all of us at a 1,000% increase?

I have never seen a casino pay out on every machine at once. They would be out of business.

Back to the original question of the smaller notes.....Yes at this point in my opinion they will not print up all new money to rid themselves of a few. I think it will come out low (hopefully not) at which no countries or millionaires will complain for investing a millions and making, still a great return. Many on the market put hundreds of thousand on something and pull out if it goes up in small change and smile all day.

It is only business sense to do. But that is just my opinion until I see something different on paper from what the CBI has said in the past.

Sorry if it is not what you wish to hear but it is what I feel from what I have read. Not in rumors either lol

I know they have investments too, but that is their profit they do not wish to turn around and pay it all out. Some yes, not all.

[bkhopefull]

What?

Just avoid any of the confusion people who have no clue what they are talking about start by seeing "redenomination" (RD) every time they use the word "LOP".

I do not predict an RD, but it is possible, it is simple, and it happens to ALL of the currency to include 25,000, 50 IQD notes and even electronic balances. There is none of this nonsense about an old 25,000 becoming a new 25 and now is worth less than an old 50 BS. The process is simple and has been done dozens and dozens of times in other countries. There have been stupid attempts at an RD (RD before inflation stabilizes) and devious RDs (Extremely short exchange periods), but neither seems to be the case with IRAQ IMO. There are good reasons for an RD and it is at the sole discretion of the independent CBI, but they will no doubt consult with the government. There is absolutely no loss/gain of value in an honest redenomination.

Thanks Dustin. I'm still stuck on this issue so I like to hear all opinions from all angles.

[dinarmoneyman__702]

Not necessarily true. The CBI stated this month after the court ruled last month. last month was stated by the court, the 3 zeros would not be removed. Since then the CBI stated that they would meet with the new gov once seated to determine this.

First off, I agree there will be mass confusion and havoc. However the origional statement and many follow up statements was to leave the smaller dinar in circulation but only to remove the 3 zero's from the top thousand notes.

That to me reads the 25,000 the 10,000 and the 5,000. The last thing told was on the video translation of removing the 0s from all the thousand dollar notes leaving the lower denom's in circulation. It never stated in any of the articles of the lower denoms losing their value.

But yess the 25,000 would be worth 25.00 at a 1 to 1. Ali told me on the phone that if they did do a redenom of any money they would have to do all the money but that is not what was told on the tv translation or the CBI web site.

Once they make the decision, at that point it will be to late to do anything about it. Not like they will tell you in advance and give you time to change anything.

Now My thoughts on this..... My hope and thought would be that if they do anything to change anything they will do it all and let us exchange it. But .... My fear is that it will be to lower the value so lets say you have a thousand invested you will only make a thousand on it. Just an example. It would make more sense for them to do it from a business stand point since they would not have to pay out but a fraction of what was paid in. Then everyone makes money. We just do not make what we want or expect too. Just business logic, not my wishes or thoughts when I invested.

DO not SHOOT the MESSENGER please.

I have been reading this crap for 6 years. I will wait to see what the CBI does with the new government according to their last statement.

PS. Banks aren't in business to lose money.

YOU ARE SO RIGHT.. MY PROFILE MAY SAY NEWBIE BUT I HAVE BEEN READING ALL THIS CRAP FOR YEARS.....

[Incountry]

Umm…seriously… Keep digging...

You will eventually come to grasp that the current Dinar will never be internationally recognized.

Only the newest (Not finished being designed yet) dinar will be internationally recognized.

The product will that cost 5000 old dinar before (THE MAJOR CHANGE) will cost:

5000 old dinar after (the major change)

Or you can pay 5 of the new dinar after (the major change)

Make sense now?

[littlepeep]

Umm…seriously… Keep digging...

You will eventually come to grasp that the current Dinar will never be internationally recognized.

Only the newest (Not finished being designed yet) dinar will be internationally recognized.

The product will that cost 5000 old dinar before (THE MAJOR CHANGE) will cost:

5000 old dinar after (the major change)

Or you can pay 5 of the new dinar after (the major change)

Make sense now?

[littlepeep]

In country, you are right KEEP DIGGING!!

Why was it not explained to us like this!!!

This is so simple and I would really like to get people in the know on this. We have so many that do not compare apples to apples here. We have them come up with their own way of doing math. I will make this very simple. When looking at the dinar people are missing one little FACT....that a dinar worth a penny is called a dinar, and dinar worth a dollar is called a dinar. ok for everyone to follow this correctly and understand what they really have, we will have to rename the dinar in order to follow along. We will now call a dinar worth a penny the " penny dinar" and the dinar worth a dollar the " dollar dinar" .

Say you bought 1,000,000 dinar for 1,000 USD that = 1,000,000 "penny dinar"

Now, change your " penny dinar" into "dollar dinar"

1,000,000 "penny dinar" = 1,000 "dollar dinar"

You now have 1,000 "dollar dinar" correct? And thats what you have tucked away somewhere.

So now we have an RV and we all run to the bank wanting to exchange our dinar.

We go in and say I have 1,000,000 dinar. And the banker says "thats correct!" You have 1,000,000 penny dinar if you want to chage them dollar for dollar you have to change your "penny dinar" into "dollar dinar". We already did this and can see we have 1,000 US dollars worth of "dollar dinar."

You now start your math from there.

Look at the chart on Dinar Trade, on the left you see:

If the value of the dinar increases to: The resulting value of your 1,000,000 dinar would be:

$0.01 $10,000

$0.10 $100,000

$0.20 $200,000

$0.50 $500,000

$1.00/ Iraqi Dinar $1,000,000

And how many times did we go " WHOOO HOOOO!!!!"

Remember how we renamed our dinars at the start of this, so we could see apples to apples? Now we are going to add that one simple thing to our chart. " Penny Dinar"

If the value of the Iraqi Dinar increases to: The resulting value of your 1,000,000 "PENNY DINAR" would be:

$0.01 $10,000 penny dinar

$0.10 $100,000 penny dinar

$0.20 $200,000 penny dinar

$0.50 $500,000 penny dinar

$1.00 / Iraqi Dinar $1,000,000 Penny dinar

$1,000,000 "penny dinar" = $ 1,000 "dollar dinar" = $ 1,000 US dollars

At the end of this do you see what you really have?

[marknet73]

This is making better sense now. I'm kind of seeing now how this might play out. Keep up the informative posts guys!

[Incountry]

Littlepeep:

Ok that is a start. You see being that the current dinar won’t ever be an international currency… you will need to exchange them with a bank in the country or with one of the Pumper-Bosses (Dinar Broker) This whole transaction reminds me of a funny situation… Anyway… so you pay a fee to buy them then you pay another fee at a screwed up rate or even a forced spread to trade them for the “Newest Dinar (Not fully deigned yet)

Or you can fly Gryphon Airlines into Baghdad and do it yourself… Make sure if you go you have someone with you that knows their way around, translator, bribe money (and knowledge how to bribe there and still end up alive) secure transport…( I mean Armored) and a lot of luck. I have been there many times and it has calmed down a lot but just taking a taxi this afternoon might still be a mistake!

Now once you trade old for new… now you can relax just a bit! You want to act quickly on this and I will tell you why. The interest rate at the banks there are very high… do you know why they are high?

When you control interest rates… you can control inflation/deflation. What do you think is going to happen when 80 trillion (or whatever amount) of current dinars start to funnel in and start turning into Billions of dinars?

Ahhh there you go if the bank interest rate isn’t controlled as best as they can… there can be a sticky situation of inflation or deflation depending on how well they gamble.

Now the lower the interest rate goes the better it is for who has already traded their dinar for the newest dinar. SO now take it invest it. There will be loans after loans coming out of the banks. Then the banks turns into instant profit. When they trade those loans at per/rates from the larger banks to get more money flowing.

I think the economy is going to have a defibrillator hooked up to it and they are yelling CLEAR!!!!!! ZAP!!! Not to mention the other guy there with the syringe filled with adrenaline to kick it up another notch.

Take and invest in companies…(Stocks) just as you would in the US. This is where I think that I can make some money. If you let it sit in the dinar.. it could go up… may be. I don’t think there will be much change. It will already be comparable to well most other currencies. But all of those stocks that are like penny stocks that might… might skyrocket.

I don’t know if you know anything about Dubai… but it didn’t really exist several years ago… it just popped up out of nowhere. People that invested there made out good!!! I think some places in Iraq will do the same. I hope.

What… I’m just saying…

Anybody that thinks that the dinar hidden in the shoebox under your bed… is going to make you a multimillionaire as soon as “The Big Day” comes… is going to have quite a negative shock and disappointment. Why would a country give away so much wealth when they don’t have to? I wouldn’t Put yourself in their shoes.

***Please don’t take this as investment advise!!! Before any investment in any way is acted on you all should consult a professional in the field.***

Edited November 26, 2010 by Incountry

[littlepeep]

Incountry, thanks for your response.

I'm not looking to be a multimillionare. All I was trying to point out is the how much dinar we really have. Every time I see someone do the math its always done as if we already have 1,000,000 million dinar worth 1,000,000 US dollars. Thats just not the case. If you look at the part where I said the dinar you now have tucked away, it is trainslated into what I called dollar dinar and that came out to 1,000 US dollars. I dont want to get all the other things involved here. Plan and simple for me. At the end of this, all I want to know is about how much this means to me in dollars. US dollars. We are in this together just trying to make sence of it all. Love to all dinar brothers.

PS: if someone reads my first post and have questions about the chart I would tell them to call Ali at Dinar Trade and ask this one question. Is the second chart true? Is the chart missing that one little word?

Does 1,000,000 dinar in his chat trainslate to 1,000,000 pennies in US currency?

Please go back and read my post

Edited November 26, 2010 by littlepeep

[Incountry]

Incountry, thanks for your response.

I'm not looking to be a multimillionare. All I was trying to point out is the how much dinar we really have. Every time I see someone do the math its always done as if we already have 1,000,000 million dinar worth 1,000,000 US dollars. Thats just not the case. If you look at the part where I said the dinar you now have tucked away, it is trainslated into what I called dollar dinar and that came out to 1,000 US dollars. I dont want to get all the other things involved here. Plan and simple for me. At the end of this, all I want to know is about how much this means to me in dollars. US dollars. We are in this together just trying to make sence of it all. Love to all dinar brothers.

PS: if someone reads my first post and have questions about the chart I would tell them to call Ali at Dinar Trade and ask this one question. Is the second chart true? Is the chart missing that one little word?

Does 1,000,000 dinar in his chat trainslate to 1,000,000 pennies in US currency?

Please go back and read my post

Ha ha..

I was agreeing with you... This was mostly for the folks that still believe in fairy tales. I addressed you because I was just finishing a thought that might lead you in the direction that this mess will probably go.

Sorry if I caused confusion.

Edited November 27, 2010 by Incountry

[Bull Dog]

I really wish that people just getting on this site would do alot more reading before they post. If the old dinar is recognized on the international market, well then there is no currency at all. This conversation goes back months if not years. Do you realize that if they did not recognize the Dinar in circulations now, it will effect Iraq more than any of us. They have said time and time again that both currencies will be recognized. Let's just put the whole topic to bed for now and let the CBI and Iraq tell us what they are going to do. Everybody has an opinion about dates and rates and none of them have come true yet. Nobody knows. Only the people in charge in Iraq. This could happen could happen tomorrow, next week, next month, next year, no one knows!!!!! Let it go.

[Incountry]

I really wish that people just getting on this site would do alot more reading before they post. If the old dinar is recognized on the international market, well then there is no currency at all. This conversation goes back months if not years. Do you realize that if they did not recognize the Dinar in circulations now, it will effect Iraq more than any of us. They have said time and time again that both currencies will be recognized. Let's just put the whole topic to bed for now and let the CBI and Iraq tell us what they are going to do. Everybody has an opinion about dates and rates and none of them have come true yet. Nobody knows. Only the people in charge in Iraq. This could happen could happen tomorrow, next week, next month, next year, no one knows!!!!! Let it go.

NO... "I" really wish that people just getting on this site would do alot more reading before they post.

They have never said that the current NID would be internationally recognized. They said that there would be a trade in period and that it would be excepted in tandem... NOTHING about it being internationally recognized. Just about every reliable contact recently has done an about face on this topic. Where have you been?

what is that there???? Ohhh it is... Pipe Dream flavored Kool-Aid ... "OOHHHH YEAHHH!!!!!!!"

Edited November 27, 2010 by Incountry

[dslayer4j]

Go to LOP Talk forums and do your research. There is alot of info in there about that.