For those worried about their 25k bills

[Upgradable]

I know there has been a lot of talk in the news, on the forums, and from person to person about Iraq pulling the big bills out of circulation, or lifting the 000s, or switching to lower denominations. Talk like this can get a person worried about the little bundle of 25k notes we are sitting on, waiting to RV (I know mine are all in 25k). I hope maybe I can help alleviate a little worry about what we're going to do will all our IQD, or answer any questions about whether or not our bills will have to be exchanged, or even worse, become worthless!

First I want to say, our dinar is not in circulation. In fact, I'm sure a lot of them haven't seen the light of day since we squirreled them into the back of our sock drawers when we received them!! When there is talk about pulling the big bills or "deleting the 000s" what is meant is that when these bills come into the banks in Iraq, they are holding them and not sending them back out for purchasing transactions on the ground in Iraq.

Does anyone remember the $2 bill? At one point the US Treasury thought that this would be a good measure to help we citizens not to have to carry around lots of paper money. I'm sure the men who carry wallets in their back pockets can attest to the fact that it is much more comfortable to be sitting on 25 $2 bills than a wad of 50 singles!

However well intentioned, this bill never caught on with the American public, so the US govt decided to pull them from circulation. This does not mean, however, if you come across the $2 bill that your Aunt Sheila stuck into your 16th birthday card (cause you know that $2 was really going to get you far) that the guy at the 7-Eleven is going to take it when you come in for your daily Big Gulp. Instead, when this bill gets to the bank, they're going to pull it from circulation. That means when the same 7-Eleven dude comes in to cash his paycheck, they won't use the $2 bill as part of the cash he is given.

Now, there's also the question of "will I have to exchange my big bills for smaller denominations?" NO! Again, your bills will be going into circulation in Iraq. Instead they will be held in some treasury somewhere for governmental purposes. Your 25k will never become worthless!

Hope some of these explanations help. I encourage you folks who are either new to this investment, or who have not followed the process for cashing them in will read the threads in the forum. There is lots of good info there, and you can find that your questions are answered before you were even ready to put them into words. Keep the prayers going and the fingers crossed!!!

[rwharnden]

Great post; Thank you!

[Lori Lee]

Thanks for the post well said!!!

Go Rv :

[Darin]

Nice points... I actually in fact have a $2 bill. Will it be worth something someday? Maybe.... But they are rare..

I recently had my grandparents store it in their safe, but upon this recent Christmas got it back (not exactly sure why they decided to hand it back to me).

I know that my grandparents have a un-cut sheet of $2 bills.

I would predict the next bill to likely be used infrequently would be the $50 bill.

I think they are rare already.

I think of casinos and how they spit out cash.. Its generally either in forms of $20s or $100s.

For example, if I had a ticket worth $70, I would receive 3 20s & a 10. (Not a 50 and a 20)

If I had a ticket worth $300 - the machine could either A) give me it in 20s or simply 3 $100 bills.

Obviously the $50 has value, but in my opinion, it is a scarce bill that is still likely handed out in banks, but not used as frequent as one would think.

[RiverStyx]

That is not the case with this at all if they do as Shabibi and the CBI have stated that they intend to do. We all want it to be worth a fortune and I hope it does go that way but no one knows and no one can tell you what or how it will happen until it does. To say otherwise is fruitless.

[GT_from_AK]

An excellent perspective

[joe liberst]

Today, there is a common misconception that the $2 bill is no longer in circulation. In 2005, 61 million $2 bills were printed by the U.S. Bureau of Engraving and Printing. This is more than twice the number of $2 bills that were printed annually between 1990 and 2001.

You can go to many banks and still get $2 bills, you just have to ask.

2003 series

[ThePhantomRider]

Well the way I see the removal of 3 zeros is this, it is the removal of zeros from the cost of goods and services. The cash itself stays the same but the cost of the products changes across the board, thus raising the value of the currency.

Take the car for example (all the rage on the forums)

Let's say a car now cost $20,000,000 IQD

Remove 3 Zeros, and it's $20,000...makes sense no?

What sense would it make to have a car cost $20,000,000 IQD, you remove 3 zeros from the currency and the cost of the car, you've done nothing at all.

That's my perspective...

TPR

[Upgradable]

Okay, Joe. Way to blow my perfectly good analogy out the window! Thanks everso.....

[JimmyB]

Here's what I'm still having issues wrapping my head around, WHY are people in Iraq trading in their 25K for 25 notes???? Is it just stupidity or what? I can't believe that that many people would believe this to be true. I lived in Panama for 3.5 years and as uneducated as some people were when it came to money there is no way they would believe that a 25k was now worth 25, they would never turn it in!

[Upgradable]

Here's what I'm still having issues wrapping my head around, WHY are people in Iraq trading in their 25K for 25 notes???? Is it just stupidity or what? I can't believe that that many people would believe this to be true. I lived in Panama for 3.5 years and as uneducated as some people were when it came to money there is no way they would believe that a 25k was now worth 25, they would never turn it in!

There are no 25 IQD notes yet, so you're just listening to garbage rumors.

[hopefullbk]

Here's what I'm still having issues wrapping my head around, WHY are people in Iraq trading in their 25K for 25 notes???? Is it just stupidity or what? I can't believe that that many people would believe this to be true. I lived in Panama for 3.5 years and as uneducated as some people were when it came to money there is no way they would believe that a 25k was now worth 25, they would never turn it in!

I dont think anyone is "trading in" anything. If the rumors are to be believed, the 25000 notes are just being raised from circulation. That would also indicate that the 10000 and 5000 are also being raised from circulation. When I say raised, I only mean removed from circulation as they make their way to the banking system.

Ahmed buys something from a local vendor, uses a 25k note to purchase, the vendor gives Ahmed his change. The vendor then deposits his/her money in the their bank account at the close of business. Next time the vendor wants to withdrawl 25000 dinars, he/she would NOT get a 25k note, but a combination of smaller notes equal to 25000 dinars.

Thats how the banking system raises a note from circulation, they just take them in during the normal course of business never to release them again. Again, this is all rumor. However, One would think that this would be the normal course of action a country would have to take before they increase the value of their currency though.

Just my opinion, hope that makes sense.

[leola]

IT WAS MY UNDERSTANDING,THAT THE ,,U..S...GOV,,,PRINTS TWO DOLLAR BILLS PERIODICALLY,,,,THEN INTRODUCES THEM TO THE PUBLIC TO FOLLOW THE FLOW OF CURRENCY IN OUR SOCIETY.......

[Upgradable]

IT WAS MY UNDERSTANDING,THAT THE ,,U..S...GOV,,,PRINTS TWO DOLLAR BILLS PERIODICALLY,,,,THEN INTRODUCES THEM TO THE PUBLIC TO FOLLOW THE FLOW OF CURRENCY IN OUR SOCIETY.......

Getting lost in the trees, people! It was an analogy! Inaccurate, I concede, but NOT THE POINT!

[Doctor Smith]

It's probably a rumor that the Iraqis have to turn in their 25,000 bills pre RV. They would have to carry around stacks of money which wouldn't be practical. They aren't going to "all the sudden" spend all their money as some claim just because they have smaller denominations.

After a significant RV it will no longer be practical to carry around the larger bills. As the bills are cashed in the banks will keep them. Smaller notes or coins will be manufactured for small transactions.

They aren't suppose to play games but it is possible that they will try to get you to turn in the larger bills in a limited time period. So you might not be able to hold on to them long enough to wait for a higher RV value or better bank rate (spread).