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Through tossing numbers around and some logic added in, I have come up with a thought process. Now in no means am I saying this is how it will go down as Smokey the Bear would have as much of a chance of a prediction as me.

A Iraq citizen goes into the bank with a 25,000 dinar note. They say hand it over, here is a 25 dinar note. Once the large notes are out of circulation, they revalue their money. So in numerical format you have the following -

Currently a 25,000 dinar = $21.27 - then revalue at .86

Now a 25 dinar = $21.50

No one has gained anymore money minus a few cents, they remove the large denominations gradually from circulation. Now how fast is gradual, well could be 1 week, 2 weeks, who knows. As far as what they do in the mean time, well they have ration cards which they would use over that time still utilizing their current rate.

Now what happens with the people outside of the country. Well I guess that is not fully known. If the basis is hand your money back in at current rate and we will RV after a 30 day exchange window, then no one makes anything on this and we all lose money. If they say we will take a 30 day exchange window and give you a RV of .86, would that be fair to the citizens of Iraq? So from the speculator/investor standpoint, I don't have a clear cut observation on that. Again, even what I wrote is not saying how it is going down and not trying to look at the negative side, but a possible alternate side. I just cannot see a way to introduce smaller denomination currency while the larger currency is in circulation and think if they RV while both are in circulation then that is going to get somewhat confusing unless they use the LOP theory.

I think if there are any true banking experts or someone that deals more with the banking world, how would you look at this. Can a 5, 10, 25 notes exists with a 5,000, 10,000, 25,000 note in circulation at the same time?

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Jury Picker - come on man, why respond like that? If I were a meanie, I could say the same about you. I actually would like to compliment you and I'll bet you are an expert at knitting. Who knows? Maybe you're a knit wit. My role here, until shut down, is to look for you people that have this tendency to respond to someone's post, wherein you actually hurt them. So, I like to counter with a comeback that, hopefully has some humor in it. Unless, you want me to put my pads on again. You remember how I used to plant running backs. Another thing I did was spit on the ball, before the center put his hands on it - now that's just mean.

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So what is the incentive for the person who has a 25k note and finds out that they're going to take it and exchange it for just 25 dinar? From what I heard Iraqi's are very distrustful of the banking system. They would need incentive to bring in those 25k notes, and I don't think them getting less dinar is going to do that.

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Sooner or later everyone in this investment has to feel like they understand how this is all going to work out.

Getting to that point is a process.

The borders are presently controlled to keep the flow of large bills out of the country.

Seperate economies have been created - internally/externally to iraq.

Banking in Iraq is seperate from banking with Dinar's out of country.

An in country LOP will no doubt be necessary.

The RV and LD will have to coincide with one another, no question about it.

Externally, agreements between banks and the CBI create different oportunities on how to handle the RV.

There are quite a few existing threads and posts that explain the flow and conversion of Dinar through the worldwide banking system.

Grace & Peace

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Obviously you are concerned this will be a LOP, not just a pure revalue. There is a forum dedicated to LOPpers. I suggest a moderator move this topic to that forum. Lopping will not make the Iraqis or the country any real money, and therefore will not reflect the wealth of Iraq.

The 000 notes can be taken out of circulation by trading them for lower denoms (500s) for those who insist on cash, and by depositing the money electronically for those with bank accounts. I think this is part of why they have been working on modernizing the banking system.

Peace and Prosperity

Edited by Off-the-grid
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:rolleyes:

Through tossing numbers around and some logic added in, I have come up with a thought process. Now in no means am I saying this is how it will go down as Smokey the Bear would have as much of a chance of a prediction as me.

A Iraq citizen goes into the bank with a 25,000 dinar note. They say hand it over, here is a 25 dinar note. Once the large notes are out of circulation, they revalue their money. So in numerical format you have the following -

Currently a 25,000 dinar = $21.27 - then revalue at .86

Now a 25 dinar = $21.50

No one has gained anymore money minus a few cents, they remove the large denominations gradually from circulation. Now how fast is gradual, well could be 1 week, 2 weeks, who knows. As far as what they do in the mean time, well they have ration cards which they would use over that time still utilizing their current rate.

Now what happens with the people outside of the country. Well I guess that is not fully known. If the basis is hand your money back in at current rate and we will RV after a 30 day exchange window, then no one makes anything on this and we all lose money. If they say we will take a 30 day exchange window and give you a RV of .86, would that be fair to the citizens of Iraq? So from the speculator/investor standpoint, I don't have a clear cut observation on that. Again, even what I wrote is not saying how it is going down and not trying to look at the negative side, but a possible alternate side. I just cannot see a way to introduce smaller denomination currency while the larger currency is in circulation and think if they RV while both are in circulation then that is going to get somewhat confusing unless they use the LOP theory.

I think if there are any true banking experts or someone that deals more with the banking world, how would you look at this. Can a 5, 10, 25 notes exists with a 5,000, 10,000, 25,000 note in circulation at the same time?

Karamer.

Although you could be right "NO ONE REALLY KNOWS" what Iraq’s Government will do with the revalue of it's currency. Their "THINKING" is different then ours. I am sure there’s many variations anyone could come up with and I have my own as well. :o These are just my thoughts and have no foundation and no links SO NO BASHING. :lol:

JUST TAKE IT AS ANOTHER VIEW OF THE SITUATION. <_<

First: :)

"I" do not believe Iraq would want to set this kind of precedent with the investor's of the Dinar. I have read many items as to Iraq’s desire to bring investor's into their country, Iraq will need to rely on outside investor’s to help rebuild and become a thriving country. The people over there are not wealthy enough at this time to be able to do much investing. This precedent would not look good for future investors and they are watching. B)B) If Iraq "screws" the many investors of the Dinar it really would not put a great face on their promise to FUTURE Investments by others. The Trust could become questionable,

Second:

Most people have worried as to how Iraq would support a substantial revalue of their currency. As I have read many times, I believe most all of it out of Country will become a digit on paper for the purpose of trade.

Third

I also believe Iraq would be able to offset costs through adding buying power to their needs.

If they were to build a house with their current value of currency it would cost, say:

100.000 US (example) = 116,550,000 Dinar

If their currency revalued to say (2.00 US) the cost of this house would now cost 50,000 Dinar. Their savings would be substantial.

So as I see it, it would only benefit their ability to purchase goods to rebuild their Country, which will be in the BILLIONS.

Forth:

It would help their economy through employment as the working people will have more money to spend, invest, and lets not forget the Government receiving more tax dollar’s.

I see it as a way for them to stimulate their waning economy to a thriving one.

I just don’t know why it hasn’t been done to this date??? :(

I MAY BE WRONG: JUST PUTTING IN MY 2 CENT’S (Thanks for letting me share some thoughts) :blink::blink:

FLYEAGLE

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Jury Picker - come on man, why respond like that? If I were a meanie, I could say the same about you. I actually would like to compliment you and I'll bet you are an expert at knitting. Who knows? Maybe you're a knit wit. My role here, until shut down, is to look for you people that have this tendency to respond to someone's post, wherein you actually hurt them. So, I like to counter with a comeback that, hopefully has some humor in it. Unless, you want me to put my pads on again. You remember how I used to plant running backs. Another thing I did was spit on the ball, before the center put his hands on it - now that's just mean.

Dude! I look forward to every time you post!! Now I don't know Jurypicker and I mean him no harm, but that was hilarious butkus!! How do you do that? Almost every post I see of yours makes me laugh and wish I was as witty as you. "Spit on the ball, before the center put his hands on it" ha! I remember them days. I played linebacker for 4 years in semipro football in Ohio. My "dirty" move was to catch a split-end looking a different direction and lay him out even if the ball was nowhere near that side of the field. Now I racked up some penalties, (when the ref actually saw it) but I definitely got in the heads of some receivers. And you know as well as I do, you can lay out even the bigger lineman if they are not looking. Now I know this is a "cheap shot", but when you get sick of mouths running, you do what you got to do! Not too proud of them days. Thanks man, keep em coming!!!

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Hey kramer it seems we might not have to worry about the currency issue that I brought up last week....if they get these visa cards rolled out and can gain the trust of the iraqis to get them to deposit their physical cash, then it seems that there won't be such a need to focus on getting the bigger bills in because it will happen naturally....the bills we speculators hold should be no issue simply because of how little we hold compared to the total amount....let's just sit back and watch how successful they are with this new plan and we can then take another look and see where we afre heading!

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