I have a question regarding the removal of 3 zero's

[BanG]

When they speak of the removal of 3 zero's from the Dinar which way are they calculating this? Show me the formula so I can better understand this issue. Peace.

Item 1. 1.00 USD=1,171.05 IQD

Item 2.1.00 IQD=0.000853935 USD

0 : 34USDEURGBPJPYCADAUDCHFCNY1 IQD =

Inverse:0.00085

1171.050.00059

1688.040.00052

1910.890.07109

14.06730.00082

1220.100.00081

1236.060.00076

1312.170.00558

179.278

[KramerDinar]

I think it can be read about 3 ways.

1. Remove 3 zeros from notes so 25,000 = 25

2. Remove 3 zeros from the exchange rate so .00086 is now .86 because the universal currency is USD, any modifications would be pegged against it.

3. Remove 3 zero notes from circulation

I am going with option 3 because every story that comes through in Arabic and gets translated always screws up sentence structure and does not define words correctly.

[BanG]

I think it can be read about 3 ways.

1. Remove 3 zeros from notes so 25,000 = 25

2. Remove 3 zeros from the exchange rate so .00086 is now .86 because the universal currency is USD, any modifications would be pegged against it.

3. Remove 3 zero notes from circulation

I am going with option 3 because every story that comes through in Arabic and gets translated always screws up sentence structure and does not define words correctly.

OK, Kramer what does option 3 mean to us as investors? Good / Bad or not sure?

[easyrider]

the removal of the three zeroes of my understanding is to be implemented locally because thats what they care abut obviously is in their country we hold the notes they will still have legal tender this is a way for them to reduce the circulation internally and bring upthe purchasing power as well for the citizens also not making them millionaires but giving them back a new normal life we just happen to hold the zeroes and i believe they will indeed be worh whatwe al wanted them to be and trust me they want foreign investors i doubt a LOP will bring back us citizens to invest in Iraq. Just think about that for a sec. only my opinion.

I think it can be read about 3 ways.

1. Remove 3 zeros from notes so 25,000 = 25

2. Remove 3 zeros from the exchange rate so .00086 is now .86 because the universal currency is USD, any modifications would be pegged against it.

3. Remove 3 zero notes from circulation

I am going with option 3 because every story that comes through in Arabic and gets translated always screws up sentence structure and does not define words correctly.

I/m with you on that meaning that the notes once we cash in will be destroyed and they will indeed have them back basically meaning get rid of the big notes that are in circulation but will stil have legal tender once we exchange them.

Edited April 17, 2011 by easyrider

[cwhthpne]

the removal of the three zeroes of my understanding is to be implemented locally because thats what they care abut obviously is in their country we hold the notes they will still have legal tender this is a way for them to reduce the circulation internally and bring upthe purchasing power as well for the citizens also not making them millionaires but giving them back a new normal life we just happen to hold the zeroes and i believe they will indeed be worh whatwe al wanted them to be and trust me they want foreign investors i doubt a LOP will bring back us citizens to invest in Iraq. Just think about that for a sec. only my opinion.

I/m with you on that meaning that the notes once we cash in will be destroyed and they will indeed have them back basically meaning get rid of the big notes that are in circulation but will stil have legal tender once we exchange them.

one could only hope

[KramerDinar]

I found this article interesting in the fact that it explains the revaluation and devaluation of currency. It is an old article but at least creates some understanding.

http://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html

I do think to look at a LOP (meaning remove 3 zeros from the note) is not even possible. In essence if the plan is to revalue their currency, they would have to raise the exchange rate. The same goes if they plan on devaluing it. I think even a more logical way to look at this is, 8 years ago when their currency was worth something, people had 25K notes and exchange we will say is around $3. When the war happened and their rate went down, we did not see a note suddenly having 3 zeros added to it. It is not like the 25,000 note is now a 25,000,000 note, so if you cant add 3 zeros to a currency to devalue it, how can you take 3 zeros off it to revalue it? Whether this is Iraq and they can do whatever they want, all countries I would imagine follow along guidelines of RV/DV.

[cwhthpne]

I understand what your saying kramer. That being said, if they did a lop it would seem it would be 1 dinar to 1 usd which would be more value for the dinar thats why they are issuing lower denoms.

[KramerDinar]

I think the one piece that raises the biggest question with me is, if a LOP were to happen on the currency, what about the people who have all their money invested in an Warka account. Say for example John Smith spent $2K USD to buy 2 million dinar which he had in his hand. Now if a LOP happens, he suddenly really has 2,000. At a RV rate of $1, he has $2K USD. He spent $2K to basically get his money back. That seems almost worthless. Now Sally Sue on the other hand decided she would wire $2K into a Warka bank account giving her 2 million dinar as well, but the LOP does not affect her because she is carrying no hard currency, she just has numbers in an account. Now at a RV rate of $1 USD, if she wished to withdrawl that money has $2 million USD. Now if my rational seems incorrect someone please correct me.

[dog53]

You know what I have noticed. In each section, rumors, questions, your 2 cents. They have stopped moving lop talk to the lop section. I'm thinking they are preparing you for the inevitable. Letting it sink in so to say because they can see this is most definitely the way it is going to go. Just a month ago all lop talk was immediately moved to lop section. Yep they have read the writing on the wall and are preparing us for it by letting us discuss it openly. But we will make money in the long run I know we will .

[Dalite]

When they speak of the removal of 3 zero's from the Dinar which way are they calculating this? Show me the formula so I can better understand this issue. Peace.

Some random thoughts. I say that, because the data has been a moving target, and impossible to draw an accurate bead on...

The concept of removing the 3 zeroes is to lessen the liabiity of the amount of Dinar in play (figures of up to 27T estimated)

If it is 27 trillion, the dropping of the 3 zeroes would make it 27 Billion; much easier for them to handle the liability of what is in print.

You can't remove the 3 zeroes with some kind of a revaluation. This is to remove liability for a large amout of debt, not to curb inflation (yet).

Besides, it would just lessen the buying power and increase the poverty.

One possibility, drop 3 so 1000 dinar is now 1 dinar. Ddrop 3 from the Dinar side of the exchange rate (1170 now 1.17). drop 3 places from prices.

Some view this as drop 3 from 1000 to make 1, and multiply by .86 (improve 00086 by 3 places).

This would still make the dollar worth more than a dinar, and increase the difficulty of converting Iraq to a one currency nation.

But, since some articles have referred to dropping zeros and returning Iraq to the pre invasion vlaue, there is the possibility of dropping zeroes and revaluing at 3.22 (or above). Again, also drop 3 places from prices. Everyone in Iraq would love this.

The question is, what happens to the currency that is out of Iraq? Is it affected as well??

In a chat today, I heard that the3r zeroes dropped were to the right of the decimal point. Citing the CBI rate as accurate to within 3 decimal places.

This would be great for us, but Iraq would merely mark time. 1170.000 dinar would then be equal to 1170. Dinar.

Sounds good in theory, but is a round about way of proving 1 = 1.

The UNC(University of North Carolina) paper about Turkey was written by a lady with a lot of financial and monetary systems experience.

I found it today, and it had both her qualifications and email address in the intro.

I hope to be able to contact her and pose the situation in Iraq to her and get her thoughts.

I am probably just wasting bandwidth here with this reply, but we just don't have enough facts to come up with a concrete result.

I was in touch with some Ham Radio Operators from Baghdad earlier today. We followed up with email.

Even with working through the language differences, they still warned me the the news is not accurate.

"to the media, which mostly learned about misleading people now mostly peaceful and had nothing to do public policy of the country in spite of the terrible mistakes, but keep an existing social relations and moral obligations have not changed because we are Arabs and Islam and all agree that every individual in his personal freedom "

As you can see, the concerns from there to here are 2 fold. (and my interpretation may not be accurate)

These are the direct words from the email, not a translation, and the perception of all being anti-islamic makes it harder for a one on one conversation to take place.

We have differences in language and pre-concieved notions of how we are viewed by others.

I hope to keep a line of communicaitons open, but politics and religion are 2 items not to be discussed over the air when in international communications.

I hope it can be different on email.

I realize others have contacts there tht they know well, and don't have some of the difficulty in conversation, as well as knowing that some will doubt the validity of this post without a link.

We are dealing with unknown quantities here, and trying to wade through all the info and sort the facts out is like trying to nail Jell-o to a tree.

Sorry for the wandering thoughts, hope some of this makes sense.

[imgesing]

Hopefully we will all see this come to fruition soon. There is no way for us to determine what they mean and what the outcome.

Logic will dictate that this will resolve with a RV which would benefit everyone. In other words a WIN WIN. The extent of which the US is in control and helping this along would seem to mean that this will fair well for all of us.

Be Patient.

Peace...

[Ore]

When they speak of the removal of 3 zero's from the Dinar which way are they calculating this? Show me the formula so I can better understand this issue. Peace.

Here you go Bang: http://dinarvets.com/forums/index.php?/topic/62924-enorrste-response-to-the-iqd-being-a-scam-41711/page__view__findpost__p__449988

[cwhthpne]

I think the one piece that raises the biggest question with me is, if a LOP were to happen on the currency, what about the people who have all their money invested in an Warka account. Say for example John Smith spent $2K USD to buy 2 million dinar which he had in his hand. Now if a LOP happens, he suddenly really has 2,000. At a RV rate of $1, he has $2K USD. He spent $2K to basically get his money back. That seems almost worthless. Now Sally Sue on the other hand decided she would wire $2K into a Warka bank account giving her 2 million dinar as well, but the LOP does not affect her because she is carrying no hard currency, she just has numbers in an account. Now at a RV rate of $1 USD, if she wished to withdrawl that money has $2 million USD. Now if my rational seems incorrect someone please correct me.

unfortunately I think thats whats going to happen. They will match the dollars and pay contractors as such.

but hey , I dont know anymore then the next guy.

[nointel]

this a response i got from my father when i emailed him one of the articles about removing the zeros:

i was in France around 1962 when they dropped 3 zeros off the Franc, the old 100,000 franc note was changed to a 100 Franc note, making transactions easier for everyone, both were worth the same value, I changed dollars for Franc, a old 100,000 Franc note exchanged for $10 the new 100 Franc note exchanged for $10, they finally phased out the old notes

Today the "OLD" dinar notes you now have are worth 25,000 dinar = $21.26, that will not change if they drop 3 zeros the "NEW" dinar note will be worth 25 dinar = $21.26.

OLD 25,000 note and NEW 25 note are both worth $21.26

If you trade a OLD 25,000 you will get "ONE" NEW 25 note

nothing to worry about

he was in iraq working when he purchased dinar he has since retired, and although he didin't get in on kuwait when they RV'd he had friends who did so he got in on the iqd thinking it will eventually do the same thing. so i guess we are still good once it RV's, i hope so anyway...

[DDave]

I think the one piece that raises the biggest question with me is, if a LOP were to happen on the currency, what about the people who have all their money invested in an Warka account. Say for example John Smith spent $2K USD to buy 2 million dinar which he had in his hand. Now if a LOP happens, he suddenly really has 2,000. At a RV rate of $1, he has $2K USD. He spent $2K to basically get his money back. That seems almost worthless. Now Sally Sue on the other hand decided she would wire $2K into a Warka bank account giving her 2 million dinar as well, but the LOP does not affect her because she is carrying no hard currency, she just has numbers in an account. Now at a RV rate of $1 USD, if she wished to withdrawl that money has $2 million USD. Now if my rational seems incorrect someone please correct me.

Why would money in an account be exempt from having the decimal moved to the left 3 places? If a LOP happens, they will have to do something to differentiate the old money from the new money, such as refer to it all as "old dinar" and "new dinar". If you have 2 million "old dinar" in an account, converting it to the "new dinar" would be just the same as turning in an "old dinar" note (such as a 25k not) and getting a "new dinar" note (25) back. A LOP doesn't just affect the physical currency, it would affect all currency (physical and electronic) equally.

[dinarck]

this a response i got from my father when i emailed him one of the articles about removing the zeros:

i was in France around 1962 when they dropped 3 zeros off the Franc, the old 100,000 franc note was changed to a 100 Franc note, making transactions easier for everyone, both were worth the same value, I changed dollars for Franc, a old 100,000 Franc note exchanged for $10 the new 100 Franc note exchanged for $10, they finally phased out the old notes

Today the "OLD" dinar notes you now have are worth 25,000 dinar = $21.26, that will not change if they drop 3 zeros the "NEW" dinar note will be worth 25 dinar = $21.26.

OLD 25,000 note and NEW 25 note are both worth $21.26

If you trade a OLD 25,000 you will get "ONE" NEW 25 note

nothing to worry about

he was in iraq working when he purchased dinar he has since retired, and although he didin't get in on kuwait when they RV'd he had friends who did so he got in on the iqd thinking it will eventually do the same thing. so i guess we are still good once it RV's, i hope so anyway...

Your father is correct. Unfortunately your assesment that we are still good once it RVs is not.

Say you have 1 million IQD worth 1000 USD. After the LOP as they did in France you will have 1000IQD worth 1000USD. No loss or gain.

[keepmwlknfny]

I think the one piece that raises the biggest question with me is, if a LOP were to happen on the currency, what about the people who have all their money invested in an Warka account. Say for example John Smith spent $2K USD to buy 2 million dinar which he had in his hand. Now if a LOP happens, he suddenly really has 2,000. At a RV rate of $1, he has $2K USD. He spent $2K to basically get his money back. That seems almost worthless. Now Sally Sue on the other hand decided she would wire $2K into a Warka bank account giving her 2 million dinar as well, but the LOP does not affect her because she is carrying no hard currency, she just has numbers in an account. Now at a RV rate of $1 USD, if she wished to withdrawl that money has $2 million USD. Now if my rational seems incorrect someone please correct me.

Electronic accounts will be adjusted accordingly when a lop occurs....whether you have electronic funds or physical currency its all affected the same

[DAME1]

Hey Keepm

Can you tell me how a Lop helps the Iraqi people? When you triple nothing you still have nothing...??...

[vern]

Hey Keepm

Can you tell me how a Lop helps the Iraqi people? When you triple nothing you still have nothing...??...

Nothing is better than ZERO- as in i have nothing--- if you said i have ZERO you know your broke- so right now you have nothing your not broke yet- Simple math- i like it eh? Vern

[radar12354]

I WOULD LIKE SOME SENSE MADE OUT OF IT...........IF YOU TAKE 25,000 AND DROP THREE ZERO'S YOU GOT 25.00....MY BUYING POWER WENT FROM 25,000 TO 25.00 MAKE SENSE OF THAT....?