Dinar in Warka account protected from Lop?

[20MillionDinar]

If I had 5 million dinars in a Warka account and they lop the currency. What happens then?

[Islandgirl7]

Great question...I will watch for responses...I am still waffling on Warka

[20MillionDinar]

I opened up an account over a year ago but never funded. I just got in touch with them and all I need to do is fund the account to activate it. From what I have been hearing lately it might be the best way to protect our investment in case of a lop.

5 million IQD hard currency: 5,000,000 IQD ------Then Lop (remove 3 zeros) -------- Back to 70's / 80's rate (3:1) - About $15,000 USD

5 million IQD warka account: 5,000,000 IQD ------Then Lop (remove 3 zeros) -------- Back to 70's / 80's rate (3:1) = About $15 million USD

Am I right in my thinking that having funds in country will protect my investment in case of a Lop?? Maybe it is time to "take the risk" and fund my Warka account. Better to be safe than sorry...

Any input is much appreciated. Thank you!

[muydinar]

nope. Decimal will move. If they lop 3 zeros, three zeros will be removed from your balance.

[20MillionDinar]

nope. Decimal will move. If they lop 3 zeros, three zeros will be removed from your balance.

Interesting.... Thanks for the heads up muydinar!

[AJ 37]

Hi, My understanding on this is 5mil is 5 mil when it is in your A/C. Even if they LOP or even if they change currency still you get 5 mil. I am sure this is one of the safest ways to protect your investment. cheers

[20MillionDinar]

Hi, My understanding on this is 5mil is 5 mil when it is in your A/C. Even if they LOP or even if they change currency still you get 5 mil. I am sure this is one of the safest ways to protect your investment. cheers

This is what I was hoping for...

Thank you AJ 37 and Muydinar for your input. Does anybody know for sure what happens in this case or is this a situation that has never been experienced before?

I'm still interested in hearing what others have to say about this.

[Froto]

If I had 5 million dinars in a Warka account and they lop the currency. What happens then?

Sorry for the cut and paste, but here is the opinion I posted to another similar question.

A quick primer on a "LOP". For any "Yeah but..." people out there, sure, anything may be possible, so I'll just address what HAS happened in every one of the last 50 countries that have "LOPPED" in the last 80 or so years.

A lop is a redenomination. A redenomination is exchanging one ENTIRE series of currency for another ENTIRELY NEW series of currency. The exchange rate doesn't have to be 1000:1 (a three zero lop). Examples from the past have included 10:1, 20:1, 100:1, 500:1, 1000:1, 10,000:1, 20,000:1, 30,000:1, 40,000:1, 100,000:1, 1,000,000:1, 3,000,000:1 exchange rates. The highest I have seen is 1923 Germany with a 1,000,000,000,000:1 exchange (12 zero lop).

This next point is where these forums start to confuse people with speculative interpretations. In EVERY case, the value of each new currency was inversely proportional to the old. That means IF IF IF Iraq were to have a 1000:1 redenomination (3 zero lop), you would get one new dinar (ND) for each 1000 old dinar (OD). Each OD was worth $0.00086, and each ND is worth $0.86. The total value of your holdings is exactly the same before and after the exchange. If you have a bank account with 4,257,120 OD, it is worth $3661.12. After the redenomination, your bank account would have 4,257.12 ND, worth $3661.12.

The above is not a prediction, it is merely using Iraq as a hypothetical example of what would happen using the criteria of what actually happened in each and every case of a redenomination.

Some like to hold out some kind of scenario where there is some kind of simultaneous RD/RV where you would triple the value of your investment. I would love to triple my holdings, but there has NEVER been an example of that in the past during a redenomination, so I'll leave the speculation to others. The argument seems to stem from the belief that the IQD needs to be valued at some certain level, so I'll give you some RD exchange rate examples with there corresponding values which HAVE historical examples from the past.

Some examples using 1,000,000 old dinar (OD) worth $0.00086 each being exchanged for new dinar (ND):

1000:1 RD you would end up with 1,000 ND worth $0.86 each.

2000:1 RD you would end up with 500 ND worth $1.72 each.

3000:1 RD you would end up with 333 ND worth $2.58 each.

4000:1 RD you would end up with 250 ND worth $3.44 each.

And so on.

Again, I am not giving my prediction, I am only providing historically and mathematically accurate examples.

Read more:

[quadraph0nic]

From my own research nothing is safe from a LOP. If it's a lop, all prices are affected including stock market shares, certainly the money in your bank, all the way to a can of coke. Everything gets updated with a new value based on the change made to the currency.

If a can of coke cost 1000 dinar then if they were to lop 3 zeros it would cost 1 dinar.

Look at turkey and how they did their RD.

[dinarck]

Nothing is safe from a redenomination. Currency and exchange rate will lose three zeros. All monies including physical and electronic. Small denoms as well as large. All prices will be adjusted as well as mortages, loans, salaries, everything. And we will not be exchanging our 25,000 notes for smaller denoms. They will simply be worth 25dinar post LOP.