LOP Question

[stepwise]

Quick question, why is LOP a scary thing for investors? Is that the case for those who hold notes? Or even if they have a bank account (as opposed to holding physical notes)?

Another question that nags me is if/when an RV occurs, wouldn't that mean that Iraqi residents would be very wealthy?

How does that aspect work?

Thanks for all your information - highly valuable!

[usarmy]

A LOP would be scary if it happened, because that means that the MOF has decided to redesign there currency. If that happended you would probably be given the opportunity to exchange your notes for the new ones but more than likely at a very reduced rate of xchange and only for a limited time.

The Iraqi people would be wealthy if they had great paying jobs in Iraq or if they owned a lot of Dinars and lived in the U.S. You have to remember the word "INFLATION"

[usarmy]

Sorry I answered your LOP question wrong. Here is the correct answer:

By: Robert Hoffman Home | UnCategorized

So many people ask about the "LOP" theory. I may not have specifically and clearly addressed this in the past, so here it is: The Iraqi Dinar is not going to lop. With that said, let's examine the LOP theory so you all understand it.

At certain times in history, countries have chosen to "lop" the last 3 zeros off of their currency, which basically makes a 25,000 note 25. Fairly simple. The question we need to ask is this: Why do countries lop? One reason is hyperinflation.

Sometimes a country prints currency so fast and furious that the economy can't keep up, and the value of the currency goes down, down, down. Take the Zimbabwe currency, for example. A "Zimbabwean Millionaire" doesn't really have too much to brag about. That is Zimbabwe, though. Not Iraq.

Iraq does not have the inflation problem, Iraq is not a country with no way of obtaining wealth to increase the value of it's currency like Zimbabwe. Iraq doesn't even need to invent a gadget to make money like China could do...

Their pockets are already lined with Black Gold.

I have said many times that Iraq's currency is possibly THE most stable currency in the entire world, and Aswat Al-Iraq recently concurred with that statement: BAGHDAD / Aswat al-Iraq: The exchange rates of the Iraqi Dinar (ID) against the U.S. Dollar is currently constant and stable, an adviser of the Central Bank of Iraq (CBI) said on Thursday.

Currency policies are normally unstable in an absolute way, Modhihar Mohammed Selah told Aswat al-Iraq news agency. He said that the CBI intervenes to respond to legal demands of customers regarding the U.S. Dollar.

Currency policies are inherently unstable, but the Iraqi Dinar is stable. Iraq's central bank denied on Thursday the reports that talked about its decision to cancel three zeroes from the Iraqi currency.

The central bank will not cancel three zeroes from the Iraqi currency at this time to reduce inflation suffered by the Iraqi economy.... Canceling the zeroes will make things more complicated and would cost the state large sums of money and enormous economic cadres to implement this project. The head of the Central Bank Sinan Al-Shabibi told the Independent National News Agency of Kurdistan (AKnews).

This won't be applied at our current time. The central bank and Finance ministry will adopt rational solutions to reduce inflation that Iraq is suffering from currently because some important governmental institutions misused the money, Al-Shabibi added.

Removing the zeros from the currency will reduce the level of the Iraqi dinar in accordance with the American dollar.

Many members of the parliamentary Economic Commission urged the Central Bank and the Finance Ministry to address the Iraqi decreasing funds by removing the three zeroes from the Iraqi currency.

Article Source: http://www.articlesnatch.com

Read more: http://www.articlesnatch.com/Article/Addressing-The-Lop-Dinar-Rv-News-/1150881#ixzz1IHEHGk00

Under Creative Commons License: Attribution No Derivatives