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Simple explanation of the numbers


ReachingHigher
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Hi all –

Given the confusion around numbers with regards to exchange rates – I thought this explanation might be helpful to some.

There are many who believe the IQD will revalue at the nominal rate (3 zeros off the present rate of .000857) which would leave us (rounding up) with .86

Now, one might assume this means our exchange rate would be .86 cents – but that is not correct. Bear with me….

I know these numbers get confusing - here is a simplification of what a rate of .86 would mean.

$1.00 USD divided by .857 = 1.16686

This means (again rounding up to 1.17)

$1 USD will only buy .857 (.86) Iraqi dinars.

THUS, if you want to buy one IQD (at this rate) then you would need

$1.17 USD.

Conversely -

If you have 1 IQD and took it to the bank/trader/etc – you would receive

$1.17 USD for that 1 IQD.

Then, if you have 1,000,000 IQD (x 1.17 exchange rate) you would get $1,170,000 USD at cash-in (not including spread and exchange fees).

Simple explanation – at the exchange rate of .86 then it would cost 1.17 USD to buy 1 IQD. And it would only cost .86 IQD to buy 1.17 USD.

So, regardless of the rate - ask yourself: how many of ours will buy how many of theirs AND how many of theirs will buy how many of ours.

This may be helpful when you see numbers and wonder what they mean - then again, maybe not. ;)

Hope this is helpful.

I, for one, would be profoundly grateful for this rate!!

Peace!

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Simple explanation – at the exchange rate of .86 then it would cost 1.17 USD to buy 1 IQD. And it would only cost .86 IQD to buy 1.17 USD.

Makes sense, but wouldn't .86 IQD buy 1 USD?? Not 1.17 USD?

Nope.

If the exchange rate was 1:1 then it would be a straight change but with an RV of .86 (1.17) then the IDQ would be strong against the dollar, thus, it is as I explained

above.

$1 USD will buy .86 dinars

SO - think of it this way:

"If $1 USD will only buy me .86 dinars THEN what amount will it take to buy 1 IQD?"

The answer is: $1.17 USD will buy you 1 IQD.

With this exchange rate the IQD will be strong against the dollar which means theirs is worth more than ours.

Hope this helps.

Peace! :)

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Simple, and the math is correct but the interpretation is not! Boy I don't know how you all get so confused but let me try to exlain. you have one dollar, how many dinar can you buy with one dollar? Supposing the rate is .86 you will take 1.00 and divide by .86 and yes you get 1.17 when rounding up. But what was the question you asked ? you wanted to know how many dinar you can buy with one u.s. dollar correct. and the answer is 1.17. you can buy 1.17 dinar with your dollar. that means that your dinar is worth 86 cents american money. Not $1.17 and to prove this lets take the rate of one dinar at .86 and x it by 1000 dinar and that = 850.00 us dollars. Now lets take 1.17 and x that by 1000 dinar and you get 1170.00 . The rate of one dinar is .86 we already know that it is not $1.17. For 1.00 you will get 1.17 dinar and for 1.17 dinar you will get 1.00 Us 'therefore you are back to the rate of .86

Edited by merry1
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Hi all –

Conversely -

If you have 1 IQD and took it to the bank/trader/etc – you would receive

$1.17 USD for that 1 IQD.

Then, if you have 1,000,000 IQD (x 1.17 exchange rate) you would get $1,170,000 USD at cash-in (not including spread and exchange fees).

Simple explanation – at the exchange rate of .86 then it would cost 1.17 USD to buy 1 IQD. And it would only cost .86 IQD to buy 1.17 USD.

I see what you are saying, but I think there is a contradiction in your first post... First you said I would get $1.17 USD for my 1 IQD... then you said it would cost .86 IQD to get $1.17 USD.

If I'm understanding correctly, If I took 1 USD in, they would give me .86 IQD, and if I took 1 IQD, they would give me $1.17 USD. Is that right or am I still messed up?

Thanks for your help!!

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Oh geez, which is less .86 or 1.00? .86 right. the dinar is worth less than the U.S. Dollar so it stands to reason if you wanted to buy 1.00's worth of Dinar you would get more dinar for your dollar not less. how much more you would get? You would get 1 dinar plus 17 parts of a dinar.

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You are correct in what you said:

*

If I'm understanding correctly, If I took 1 USD in, they would give me .86 IQD, and if I took 1 IQD, they would give me $1.17 USD. Is that right or am I still messed up?

Read more:

*

That is the simple point I was trying to make.

The bottom line is you have IQDs and you want to know how much those IQDs will buy in USDs - your statement above is correct if we are working from the .86/1.17 exchange rate.

Whew! :rolleyes:

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Oh geez, which is less .86 or 1.00? .86 right. the dinar is worth less than the U.S. Dollar so it stands to reason if you wanted to buy 1.00's worth of Dinar you would get more dinar for your dollar not less. how much more you would get? You would get 1 dinar plus 17 parts of a dinar.

I agree, if the IQD is worth .86 to the USD, then that is correct, and the exchange rate would show 1 USD = 1.17 IQD. BUT if the exchange rate shows 1 USD = .86 IQD, then that is not true and the 1 IQD would be worth $1.17 USD.

Look at the Kuwait exchange rate, 1 USD = .267 KWD (approximately) so 1 KWD is equal to 3.75 USD.

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Oh geez, which is less .86 or 1.00? .86 right. the dinar is worth less than the U.S. Dollar so it stands to reason if you wanted to buy 1.00's worth of Dinar you would get more dinar for your dollar not less. how much more you would get? You would get 1 dinar plus 17 parts of a dinar.

Merry1 -

Your statement is not correct if you are talking an exchange rate of .86

That exchange rate would be strong against the dollar.

If 1:1 is in the middle/center of a number line then

For example: the Saudi Riyal is valued at: 3.69 (which sounds like more but is WEAK against the dollar and to the "right" of center on the number line)

which means 1 Saudi riyal will only buy you .26 cents US. THUS, if you wanted to buy 1 full USD you would

need 3.69 riyals to buy that $1 USD.

On the other hand -

Kuwaiti dinar is presently at 0.28 (strong against the dollar - so to the "left" of the center on the number line)

This means a Kuwaiti would only need .28 dinars (cents of you will) to buy $1 USD. SO if you want to buy

1 Kuwaiti dinar you would need $3.52 USD to buy that 1 Kuwaiti dinar.

If you go to:

http://www.oanda.com/currency/converter/

and go back and forth with just the Kuwait dinar and the USD

and back and forth between the Saudi riyal and the USD

you can begin to see the numbers more clearly.

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[quote name='Kandi77' date='03 December 2010 - 11:34 AM' timestamp='1291394054' post='289431']

I agree, if the IQD is worth .86 to the USD, then that is correct, and the exchange rate would show 1 USD = 1.17 IQD. BUT if the exchange rate shows 1 USD = .86 IQD, then that is not true and the 1 IQD would be worth $1.17 USD.

Look at the Kuwait exchange rate, 1 USD = .267 KWD (approximately) so 1 KWD is equal to 3.75 USD.

Kandi!!

You got it!!!

Great work!

It took me awhile to get my head around the numbers but the oandacurrencyconverter

helped a lot!

Peace!

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I truly do give up. the exchange on saudi is .267 ( approx.) that means that one saudi real is worth 27 cents U.S. that means it takes 3.75 saudi rials to make one us dollar. it does not mean that you get $3.75 us for one rial! End of Story and if that is what you think you are going to be mighty surprised come cash in day lol lol

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Simple explanation – at the exchange rate of .86 then it would cost 1.17 USD to buy 1 IQD. And it would only cost .86 IQD to buy 1.17 USD.

That's wrong. Even if your explanation was right your math is wrong. It would only cost .86 IQD to buy 1 USD, not 1.17.

The exchange rate is in comparison to the USD. To simplify always put the foreign currency on the left.

  • 1 KWD = 3.55 USD
  • 1 Saudi Riyal = .27 USD
  • 1 Euro = 1.33 USD
  • 1 Bahraini dinar = 2.65 USD
  • 1 IQD = .00086 USD

At an exchange rate of .86 it would cost 1.17 dinar to buy 1 USD. And if the exchange rate was 1.17 it would cost .86 IQD to buy 1 USD.

Edited by MrRich
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I truly do give up. the exchange on saudi is .267 ( approx.) that means that one saudi real is worth 27 cents U.S. that means it takes 3.75 saudi rials to make one us dollar. it does not mean that you get $3.75 us for one rial! End of Story and if that is what you think you are going to be mighty surprised come cash in day lol lol

re-read merry1, he didn't say you get $3.75 for one rial..... he said you pay $3.75 for one rial. It is correct!

sorry....didn't mean rial, meant kd

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I truly do give up. the exchange on saudi is .267 ( approx.) that means that one saudi real is worth 27 cents U.S. that means it takes 3.75 saudi rials to make one us dollar. it does not mean that you get $3.75 us for one rial! End of Story and if that is what you think you are going to be mighty surprised come cash in day lol lol

You misunderstood me.

It COSTS you 3.74 Saudi riyals to BUY $1 (one) USD.

THAT is WHY the Saudi riyal IS weak against the dollar.

1 Saudi riyal will only buy you 0.2666 cents US.

Kuwait is STRONG against the dollar and thus it only costs 0.28 Kuwaiti "cents" to purchase $1 (one) USD.

SO if you want to BUY 1 Kuwaiti dinar it will COST you: $3.52USD.

Enough.

I understand and hope this helps.

Best advise is go to the currency converter *(http://www.oanda.com/currency/converter/) - I like this one best -

and play with the numbers.

Peace.

Out.

That's wrong. Even if your explanation was right your math is wrong. It would only cost .86 IQD to buy 1 USD, not 1.17.

The exchange rate is in comparison to the USD. To simplify always put the foreign currency on the left.

  • 1 KWD = 3.55 USD
  • 1 Saudi Riyal = .27 USD
  • 1 Euro = 1.33 USD
  • 1 Bahraini dinar = 2.65 USD
  • 1 IQD = .00086 USD

At an exchange rate of .86 it would cost 1.17 dinar to buy 1 USD. And if the exchange rate was 1.17 it would cost .86 IQD to buy 1 USD.

Mr Rich -

Thanks for catching my mistake!

You are correct.

I am at work and trying to post at the office is always a bad idea!

My bad - typo on my part.

Peace. :o

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If at .86 it is strong against the dollar... What happens to the dollar if the rv comes out at $3 or more.

Now you're really gonna push the envelope!!

LOL!

It IS confusing.

But in the simplest sense think of it like the Kuwaiti dinar.

The KWD is presently at 3.52 (strong against the dollar)

which can also be written as: 0.28160

The number line analogy helps me.

___0.274 (Qatari rial)____0.281 (Kuwait)______0.375 (Bahrain) _____1:1____1.40 (Jordon)___3.64 (Israel)___3.74 (Saudi)_____6.65 (China)____45.08 (Afgahn)

You can look at numbers on either side of the 1:1 center-point and have that number be in "cents"...that is why it gets confusing.

For those who really want to take the time to get a better understanding - oandacurrencyconverter is GREAT.

Ok, back to earning my pay check.

Peace.

Oh, and if I am wrong, then I am open to education -

Thanks! :D

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That's wrong. Even if your explanation was right your math is wrong. It would only cost .86 IQD to buy 1 USD, not 1.17.

  • 1 IQD = .00086 USD
Yep ... what most have failed to realize is that the RATE is 1USD:1170IQD (it's a ratio) ... so divide 1 by 1170 and you get the VALUE of each IQD (in USD) = $.0008547 ($.00086)
I don't care what folks think though ... pulling off three zeroes from this is a mathematical aberration! This is not how anything is done. It's just been around so long and so many people have decided that they'd cash out that it is still discussed. That's all. Now I'm not saying that they can't RV for $.86 ... I'm not privy to "the plan" ... but this is NOT how that would be arrived at. An aberration!Peace Doc31

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Yep ... what most have failed to realize is that the RATE is 1USD:1170IQD (it's a ratio) ... so divide 1 by 1170 and you get the VALUE of each IQD (in USD) = $.0008547 ($.00086)

I don't care what folks think though ... pulling off three zeroes from this is a mathematical aberration! This is not how anything is done. It's just been around so long and so many people have decided that they'd cash out that it is still discussed. That's all. Now I'm not saying that they can't RV for $.86 ... I'm not privy to "the plan" ... but this is NOT how that would be arrived at. An aberration![*][*]Peace [*]Doc31

I agree with you, Doc31 -

but wanted to try and make some sense of the numbers for the newbies.

Thanks!!

Peace.

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Yep ... what most have failed to realize is that the RATE is 1USD:1170IQD (it's a ratio) ... so divide 1 by 1170 and you get the VALUE of each IQD (in USD) = $.0008547 ($.00086)

I don't care what folks think though ... pulling off three zeroes from this is a mathematical aberration! This is not how anything is done. It's just been around so long and so many people have decided that they'd cash out that it is still discussed. That's all. Now I'm not saying that they can't RV for $.86 ... I'm not privy to "the plan" ... but this is NOT how that would be arrived at. An aberration![*][*]Peace [*]Doc31

Please, ........elucidate.

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I truly do give up. the exchange on saudi is .267 ( approx.) that means that one saudi real is worth 27 cents U.S. that means it takes 3.75 saudi rials to make one us dollar. it does not mean that you get $3.75 us for one rial! End of Story and if that is what you think you are going to be mighty surprised come cash in day lol lol

LINK -- http://www.xe.com/ucc/convert.cgi?Amount=1&From=KWD&To=USD&image.x=59&image.y=17ℑ=Submit

Edited by EBJNYC
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