Does Iraq need to lop off 3 zeros from its IQD when it is not facing hyperinflation?

[Muhammad]

You decide whether it is justifiable and risky to lop IQD to be revalued when it is not facing hyperinflation and when its economic success is halfway through in the process by doing a research on this particular link regarding hyperinflation:

Hyperinflation - Wikipedia, the free encyclopedia

The aftermath of hyperinflation is equally complex. As hyperinflation has always been a traumatic experience for the area which suffers it, the next policy ...en.wikipedia.org/wiki/Hyperinflation

(NB: If link is not workable, please google search for the underlined sentence of words mentioned above)

[armondtoth]

A lop is a devaluation of currency, Iraq wants a revaluation. There are two types of so called LOPs. ie: the dinar is currently at .000862 a revalue LOP would be to take off the 3zero's at the beginning and you would have .86. A devalue LOP is where you take the zero's out of the currency say a 25,000 dinar minus 3 zeros would be a 25 dinar.

[Rafy]

I do not think that Iraq will LOP too many big countires invloved in this investment.

[Muhammad]

Some have used their numerical logic:

25,000 IQD becomes 25 IQD, 10,000 IQD becomes 10 IQD, 5,000 becomes 5 IQD, 1,000 IQD becomes 1 IQD, 500 IQD becomes .50 IQD, 250 IQD becomes .25 IQD, 100 IQD becomes .10 IQD, 50 IQD becomes .050 IQD, and 25 IQD becomes .025 IQD. Not IMO - LOL!

[tkeaton]

There will be no LOP :}

[d-stach]

There will be no LOP :}

[TBB]

If you take a hard look at both sides, a lop or no lop, both has very valid points. Lets all hope for no lop, but dont be surprised if it does.

[KBM]

How will this help?

[Lyn LaVigne]

In my opinion, lopping zeros from the end of the currency is useless for Iraq in a worldwide scheme. But lopping from the front of the currency is an altogether different situation and more acceptable it seems.

[Lyn LaVigne]

Hi d-starch. Possibly you are correct. Time will prove to us all eventually. But in my opinion, some lop (immediately behind the decimal) will occur.

[Lyn LaVigne]

Muhammad, I agree. I think the numbers you have quoted do need some "tweeking!"

[Lyn LaVigne]

armondtoth, you are correct. I just checked again with coinmill.com and the exchange rate for the last several days has been $1.00 USD = $.87 IQD.

[scottiraq04]

A lop is a devaluation of currency, Iraq wants a revaluation. There are two types of so called LOPs. ie: the dinar is currently at .000862 a revalue LOP would be to take off the 3zero's at the beginning and you would have .86. A devalue LOP is where you take the zero's out of the currency say a 25,000 dinar minus 3 zeros would be a 25 dinar.

armondthoth - I will not argue for or against a LOP...but...I do see a need to correct your explainations of a LOP. First, and most important, a LOP is monetarily neutral...it does not increase or decrease the value of a currency. Here is a rough example: if today your 1 million Dinar is worth 1 thousand USD, then tomorrow with a LOP of 3 zeros from the Dinar it is still worth exactly what it was yesterday; 1 thousand USD...hence, monetarily neutral.

The explaination of moving from .000862 to .86 is not termed a LOP (because it is not monetarily neutral)...this is a dramatic increase in the value of the currency and therefore termed a revaluation (RV)....and your explanation of 25,000 Dinar minus 3 zeros equals 25 Dinar being a devalue is not correct because in essence your 25,000 Dinar was only worth $25 USD to begin with, and now at 25 Dinar it is still worth $25 USD.

This is all based on the 1:1 exchange rate of IQD to USD. If you take the current amount of IQD (1170 IQD) it takes to make $1 and knock 3 zeros from the end, you are basically putting it at the 1:1 exchange rate. Like I said, I'm not arguing for a LOP with this reply...but some of the basic definitions are being misunderstood.

[mal]

number8 for the day

[Mongo]

You decide whether it is justifiable and risky to lop IQD to be revalued when it is not facing hyperinflation and when its economic success is halfway through in the process by doing a research on this particular link regarding hyperinflation:

Hyperinflation - Wikipedia, the free encyclopedia

The aftermath of hyperinflation is equally complex. As hyperinflation has always been a traumatic experience for the area which suffers it, the next policy ...en.wikipedia.org/wiki/Hyperinflation

(NB: If link is not workable, please google search for the underlined sentence of words mentioned above)

Moham........ could you please quit beating the dead horse again.........It's dead, honest

[carmack]

It makes no sense for them to do that. It defeats the whole point of them RVing

[Muhammad]

Alright, mem!

[aszone]

I hope they dont

[RMLP]

There is no inflation and Iraq has one currency...there will be no lop....

[dinarmerchant]

Not any chance at all if they do not want to upset the world

[camishe]

I do not think that Iraq will LOP