The dinar doesn,t have to rv.

[Lilalbertus]

The bashing can cease.. Cocklebur is essentially correct. The only point he missed is that in order to attract international investment, the Dinar has to become internationally "tradable." At this time, Iraq has virtually nothing but oil and gas to export, both of which are traded in Dollars, not Dinars, and will likely continue to be, with or without our RV. Their currency is just as valuable as that of any OTHER country. What matters is how "much" of the currency it takes to "buy" a particular product, and nothing more. Whether it takes 1,170 Dinars or 1 Dinar to buy a can of Coke makes no difference to the Iraqi citizen unless he or she is "paid" at a rate that makes this purchase impossible. Nobody seems to be able to wrap their heads around the simplicity of this fact. Without a doubt, they are poor and underpaid, but changing the value of the individual Dinar won't change this fact appreciably. The average Iraqi citizen does not have a wallet full of 25,000 Dinar notes, if any at all.

MANY otherwise successful countries have currencies which have conversion rates(to the Dollar) which are similar, or even lower than that of Iraq. As one of many examples, look at Iran, right next door. It takes more than 10,000 Iranian Rials to equal One U.S. Dollar. Does this make the Rial worthless toilet paper? It takes more than 20,000 Vietnamese Dong to equal One U.S. Dollar. There are many similar examples around the world. The argument that the Dinar is worthless at its current "exchange rate" is completely without merit. What is hurting the Dinar is that it is not recognized internationally. The quantity per Dollar is insignificant.

The "primary" reason for Iraq's removal of the three zeros is simple mathematics and the difficulty in "COUNTING" the currency. Removing the zeros drastically simplifies the banking and retail industries. The presence of the three zeros on the notes makes counting extremely difficult once you exceed the limits of the average human ability (roughly one million) or even most CALCULATORS which don't go high enough to count large quantities of their currency.

What we as investors are hoping is that when they finally get around to removing the three zeros, that they "also" REVALUE the currency at the same time. In either case, they would need to issue new currency in smaller denominations, and ultimately remove the larger notes from circulation. We keep hearing in the never-ending "stupid rumors" that they have started this process of removing the large notes, and YET there seems to be a virtually unending supply of new uncirculated 25,000 Dinar notes available from every Dinar dealer. A shortage of these notes only seems to occur when the "rumors" generate an increased demand for Dinars, and the dealers "temporarily" run out of them.

Meanwhile, literally BILLIONS of Dinars are being sold in the U.S. and elsewhere every single month for the past several years as the rumor mill grinds away, very successfully convincing us that each one of these countless 25,000 Dinar notes which have been filling the Fed Ex trucks every day is one day soon going to magically turn into $25,000 - $75,000 U.S. Dollars. We can hope that this happens, and it does seem to make some degree of economic sense that it should (although a $3 RV seems ludicrous to me) but I have to say that after several years of watching this phenomenon unfold, and thousand of rumors (lies) proven untrue, I'm being less confident as time goes on. One thing is certain.......the DEALERS are making a great deal of money.

This is the hard truth, the only way they will RV there currency is if they have a free-market economy if not it may just RV to the Saudi Arabian rate

[imgesing]

Great points. So, when M said he will wipe away the zeros what do you suspect he meant?

Just curious based on the theory of this post.

Peace...

[bladowzanow]

The first four letters of your username describe you perfectly. DUH! WINNING!!

Charlie... Is that you?!

[tcat1]

I see your point... but that doesn't explain why a non investor in the iraqi dinar would be on a site about dinar invest me but the reason it will RV is simply because in order for them to... you know what I'm not going to waste anymore time on these ridicultards (that's my word feel free to use it)

Ya have to know what a "Cocklebur" is. In Texas that's common knowledge. It's a bad as* seed from a weed with nasty spines that sticks you like a needle and stays painfully stuck to your foot or hand. Realize the impact this little sucker has and now realize how this numb nut wants to impact by posting anything that becomes a sharp prick that he is.

[Legolas]

Great points. So, when M said he will wipe away the zeros what do you suspect he meant?

Just curious based on the theory of this post.

Peace...

Unfortunately, it's not clear what he meant, and there are several theories as to what will happen. There is little doubt that the zeros will be removed. The complaints regarding difficulties in counting the currency are legitimate, and the zeros serve no useful purpose. Counting past one million (roughly $853 U.S.) is nearly impossible for most businesses, and is no fun for banks either. Obviously they have to issue new lower denominations. We "hope" that at the same time, they revalue the Dinar. It makes sense that they would do that, but logically, one would think that they would want to avoid paying out $25,000 or more for each 25k Dinar note in circulation. Obviously there are trillions of Dinars out there, with billions more being sold every month by dealers. Does it really make sense that they would continue to allow billions of Dinars to leave the country every month to be sold freely by dealers if they intended to increase the value of each note by 100,000 to 300,000 times its current value? Obviously they couldn't stop all of it, but they could certainly stop shipments by the banks which are currently occurring non-stop. We simply have no choice but to wait and see what ultimately happens. One thing is certain......every one of the rumors is B.S., and THAT is worrisome at best.

[cocklebur]

Ya have to know what a "Cocklebur" is. In Texas that's common knowledge. It's a bad as* seed from a weed with nasty spines that sticks you like a needle and stays painfully stuck to your foot or hand. Realize the impact this little sucker has and now realize how this numb nut wants to impact by posting anything that becomes a sharp prick that he is.

Your definition of a cocklebur is flawed my friend. they do not stick nor prick, they merely adhere to any thing with a loose weave in the fiber. If anything has a hard shell that won't let anything stick to it. they waste their time trying to make a point with them.

[NotReallyTex]

Your definition of a cocklebur is flawed my friend. they do not stick nor prick, they merely adhere to any thing with a loose weave in the fiber. If anything has a hard shell that won't let anything stick to it. they waste their time trying to make a point with them.

Very True