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New currency = no lop...right???


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There would be no reason to lop the current currency if they are introducing new currency ...correct??and the "raising of the three000'" is actually removing them from circulation.....

بغداد(الأخبارية)..أعلن البنك المركزي العراقي أن قرار رفع الاصفار من العملة العراقية مُتخذ لكنه يحتاج الى عمل ميداني.وقال مستشارالبنك المركزي مظهر محمد صالح في تصريح لمراسلة (الوكالة الأخبارية للأنباء) اليوم الأربعاء:أن" قرار رفع الاصفار من العملة العراقية مُتخذ ولكنه يحتاج الى عمل مداني على مستوى المصارف والحسابات الدولية أضافة الى سحب العملة القديمة." Baghdad (news) .. Central Bank of Iraq that the decision to raise zeros from the Iraqi currency maker, but he needs to work in a field. And said Mstcharalpennek appearance of the central Mohammed Saleh in a statement to correspondent Agency (news) on Wednesday: "The decision to raise zeros from the Iraqi currency maker But he needs to work convicts at the level of banks and international accounts in addition to the withdrawal of old currency. "

وأوضح صالح:أن" العمل الميداني مهم جداً لأتمام مثل هذه الخطوة كونها تحتاج الى تهيئة المصارف للتعامل مع الأجهزة المختصة بالعملة الجديدة،" مشيراً الى أن "استبدال العملة في عام (2003) كانت خطوة سريعة ،ولكن الأن لا نحتاج الى هذه السرعة ولدينا الوقت الكافي لتهيئة جميع الخطوات اللازمة لإنجاح عملية الأستبدال." Saleh pointed out: "The field work is very important for the completion of such a step being the need to create banks to deal with the competent organs of the new currency," adding that "the replacement of the currency in the year (2003) was a quick step, but now do not need this speed and we have time enough to create all the necessary steps for the success of the replacement process. "

وأكد صالح:على أن العراق لديهِ المستلزمات الكافية لتنفيذ هذه التجربة ولكنه بحاجة الى الإرادة والأبتعاد عن التخوف والتردد في تنفيذ قراراتةُ./أنتهى/(12.ر.م). Salih stressed: that Iraq had sufficient supplies for the implementation of this experience, but will need to be away from the fear and hesitation in the implementation of its decisions. / Finished / (12. T. M).

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if they introduce a new currency it is a lop....they would be re-denominating (it's been done many times)...the two currencies would be used simultaneously until the old IQD was removed from circulation...the problem for us will be how to exchange what we have for the new.

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if they introduce a new currency it is a lop....they would be re-denominating (it's been done many times)...the two currencies would be used simultaneously until the old IQD was removed from circulation...the problem for us will be how to exchange what we have for the new.

Please tell me this doesnt make our dinar worthless?! :huh::(

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Would it be worthless, No but like jmw stated how to exchange it is another question all together. I emailed XE a few months ago about this. Here was there response: (I posted this a while back, i hope it is ok to post again)

Any redenomination would likely not have any effect at all with regards to the value of IQD that you have in other currencies, as it's effectively only changing the relative amount of IQD that you hold. There are however some other considerations:

1) Currently it's very difficult to exchange purchased IQD for other currencies as there are no legal markets to do so outside of Iraq. Unless this circumstance changes, this effectively means that you are stuck with the IQD you purchase unless:

a) You travel to Iraq to exchange them.

B) The currency is opened up for sale on wider global markets AND providers offer conversions.

2) In the case of redenominations, typically you can only exchange the old currency for the new currency, and usually only within the country in question.

Please bear in mind that the exact details of any redenomination will likely come from the Central Bank of Iraq. You can find their website at:

http://www.cbi.iq/

Thank you for your interest in our company and services.

Sincerely,

XE Currency Services Team

XE.com Inc. · 1145 Nicholson Rd · Suite 200 · Newmarket · Ontario · L3Y 9C3 · Canada

www.xe.com · +1 416 214-5606 · Fax +1 416 214-5607

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Would it be worthless, No but like jmw stated how to exchange it is another question all together. I emailed XE a few months ago about this. Here was there response: (I posted this a while back, i hope it is ok to post again)

Any redenomination would likely not have any effect at all with regards to the value of IQD that you have in other currencies, as it's effectively only changing the relative amount of IQD that you hold. There are however some other considerations:

1) Currently it's very difficult to exchange purchased IQD for other currencies as there are no legal markets to do so outside of Iraq. Unless this circumstance changes, this effectively means that you are stuck with the IQD you purchase unless:

a) You travel to Iraq to exchange them.

B) The currency is opened up for sale on wider global markets AND providers offer conversions.

2) In the case of redenominations, typically you can only exchange the old currency for the new currency, and usually only within the country in question.

Please bear in mind that the exact details of any redenomination will likely come from the Central Bank of Iraq. You can find their website at:

http://www.cbi.iq/

Thank you for your interest in our company and services.

Sincerely,

XE Currency Services Team

XE.com Inc. · 1145 Nicholson Rd · Suite 200 · Newmarket · Ontario · L3Y 9C3 · Canada

www.xe.com · +1 416 214-5606 · Fax +1 416 214-5607

Now this is indeed an interesting email if it came from XE...they are basically saying that even if it LOPed in country it wouldnt affect the value out of country...but that you would have to travel in country to cash out...at which point as soon as you entered Iraq, the LOP would then affect your dinar as well...unless of course it was tradeable when it LOPs. This leads me to a prediction(because I am a pessimist of sorts) I think that Iraq will LOP, give a ___(fill in the blank with a number) day time frame to cash in dinar, then after that timeframe the currency will enter the world market for trading.

On the other hand, running the numbers in this situation actually works...you have presumably 27 trillion in circulation(please dont bring the rumor they have been removing bills from circulation, it is only a rumor) I have heard that there is approximately 3 trillion of that in the US...this seems like a number with a fair degree of accuracy...I know as speculators combined we probably hold 1 trillion, give or take 10 or 20 million(extrapolated from those Ali court documents in Arkansas) so 2 trillion being held by the government or larger investors isnt out of the question. We can probably pretty reasonably assume the rest of the world has another 3 trillion or so. If this is the case theres a total of 6 trillion they would have to redeem at some point in time. Now Estimates put Iraq's oil reserves at roughly 20 trillion...but pumping 2.3 million barrels a day(current production) it will take 200+ years to pump it all...and our dinar would account for a third of their total oil wealth...or 60 years worth, redeemed at a 1:1 ratio. Now if we assume fractional banking(ignoring for the moment the fact fractional banking is technically against islamic law) that would require just 600 billion to back...still a lot of money, but far from impossible, especially if the various countries set up a plan to redeem them over time for money(or redeem them immediatley for a credit voucher of a sort). It would be complicated, but technically it could be done if they chose to do it.

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Now this is indeed an interesting email if it came from XE...they are basically saying that even if it LOPed in country it wouldnt affect the value out of country...but that you would have to travel in country to cash out...at which point as soon as you entered Iraq, the LOP would then affect your dinar as well...unless of course it was tradeable when it LOPs. This leads me to a prediction(because I am a pessimist of sorts) I think that Iraq will LOP, give a ___(fill in the blank with a number) day time frame to cash in dinar, then after that timeframe the currency will enter the world market for trading.

On the other hand, running the numbers in this situation actually works...you have presumably 27 trillion in circulation(please dont bring the rumor they have been removing bills from circulation, it is only a rumor) I have heard that there is approximately 3 trillion of that in the US...this seems like a number with a fair degree of accuracy...I know as speculators combined we probably hold 1 trillion, give or take 10 or 20 million(extrapolated from those Ali court documents in Arkansas) so 2 trillion being held by the government or larger investors isnt out of the question. We can probably pretty reasonably assume the rest of the world has another 3 trillion or so. If this is the case theres a total of 6 trillion they would have to redeem at some point in time. Now Estimates put Iraq's oil reserves at roughly 20 trillion...but pumping 2.3 million barrels a day(current production) it will take 200+ years to pump it all...and our dinar would account for a third of their total oil wealth...or 60 years worth, redeemed at a 1:1 ratio. Now if we assume fractional banking(ignoring for the moment the fact fractional banking is technically against islamic law) that would require just 600 billion to back...still a lot of money, but far from impossible, especially if the various countries set up a plan to redeem them over time for money(or redeem them immediatley for a credit voucher of a sort). It would be complicated, but technically it could be done if they chose to do it.

Hi Wicked,

In regards to the first part of your reply, I Did not include the entire thread, i posted the thread in its entirety a few months back. So i apologize if it was misleading in any way. Now the rep at XE did not say one way or the other r/v or r/d, just answered some questions I had at the time on my quest for knowledge...lol... This is the thread in its entirety so you can make your own judgement:

On 3/2/2011 7:31 AM, Chris wrote:

Hello,

I’m new to currency trading and had a question regarding Iraq Dinar currency redenomination.

To use as an example. If I invested 1,000 in Iraqi dinar(IQD) and that bought me roughly 1Million IQD and Iraq redenominated let’s say within a week after I invested, would that mean that I would pretty much only get my original investment of $1,000 for the same million back less and fees at cash-in?

Any help would be appreciated as I’m trying to make an informed decision before investing in this currency.

From: XE Currency Encyclopedia [mailto:currencyinfo@xe.com]

Sent: Wednesday, March 02, 2011 8:54 AM

To: Chris

Subject: Re: Iraqi Dinar (IQD) Redenomination

Hi Chris,

Any redenomination would likely not have any effect at all with regards to the value of IQD that you have in other currencies, as it's effectively only changing the relative amount of IQD that you hold. There are however some other considerations:

1) Currently it's very difficult to exchange purchased IQD for other currencies as there are no legal markets to do so outside of Iraq. Unless this circumstance changes, this effectively means that you are stuck with the IQD you purchase unless:

a) You travel to Iraq to exchange them.

B) The currency is opened up for sale on wider global markets AND providers offer conversions.

2) In the case of redenominations, typically you can only exchange the old currency for the new currency, and usually only within the country in question.

Please bear in mind that the exact details of any redenomination will likely come from the Central Bank of Iraq. You can find their website at:

http://www.cbi.iq/

Thank you for your interest in our company and services.

Sincerely,

XE Currency Services Team

XE.com Inc. · 1145 Nicholson Rd · Suite 200 · Newmarket · Ontario · L3Y 9C3 · Canada

www.xe.com · +1 416 214-5606 · Fax +1 416 214-5607

On 3/2/2011 9:19 AM, Chris wrote:

Thank you for the quick reply, I really appreciate it.

Sorry to sound ignorant, To use this example in relation to the USD. if I owned 1 million in IQD and Iraq redenominated that million would now have a face value of 1 thousand IQD(using round numbers obviously)? Therefore making it a pretty much break even investment. Am I understanding this correctly?

Or

Would the 1 million IQD still be worth 1 Million IQD only in smaller/new denominations ? therefore making it a profitable investment.

Please understand, I’m not looking for investment advice, I’m just trying to get a clear picture in my mind what this redenomination means. I have read so many conflicting statements it is difficult to paint a clear picture. Thank you again for all your help, it is greatly appreciated.

Thanks

Chris

From: XE Currency Encyclopedia [mailto:currencyinfo@xe.com]

Sent: Wednesday, March 02, 2011 10:14 AM

To: Chris

Subject: Re: Iraqi Dinar (IQD) Redenomination

Hi Chris,

If you had 1,000,000 and assuming the currency is redenominated by removing 3 zeros, you'd have 1000 new IQD, assuming you exchange the notes before the old currency expires. It's value in USD would remain the same, if you're able to convert it back. Again, whether any redenomination occurs or the exact details will depend upon decisions by the Iraqi government and (or) the Central Bank.

Regards,

XE Currency Services Team

XE.com Inc. · 1145 Nicholson Rd · Suite 200 · Newmarket · Ontario · L3Y 9C3 · Canada

www.xe.com · +1 416 214-5606 · Fax +1 416 214-5607

I hope this helps to clear things up.

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When they say new currency, couldn't that be the lower denoms that were supposedly printed already?

If they really did print lower denoms when they printed the larger, I think (and this is just my opinion) that would be the best case scenario. It would show that there was a "plan" put in place and a methodical removal and replacement of the large denoms with notes from the same series and we would get the r/v we are all betting on.

If they re-denominate. I think (again my opinion only, take it for what it is worth) they will be replacing everything and that will create a sticky situation for all of us.

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It means LOP. Not a bad thing. You get your money back. Didn't lose one cent.

Hi Soldier, If it does go down that way.....first of all that would be a real downer. Second, I hope that we would be able to sell them back here. There is a real chance you will only be able to turn them in within country.(at least according to this XE rep) So for some it will be worth it if they are sitting on enough IQD to fly over , but for others it may just be a complete loss because it would not be worth it to fly to iraq to exchange.

I guess, if you have a bank account over there you would be an a safe position in case of a re-denomination as your money would just adjust within the account.

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Ok My DV family heres somrthing to think about and this is just my opinion, why would they be holding auctions and still selling Dinar when they know that if they lop right now there is going to be a hole bunch of countries that is going to be pissed off. If you are having an auction and you know this money to be worthless isnt that like inside bond trading,you selling something to be worthless and know its not going to gain on the free market?(hope i said that right).IMO i think they are going to RV and have a deadline to cash in and if you hold on to a little just in case their are some places that might still cash in...... Lets go RRRR VVVVV :P:D:P

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Now this is indeed an interesting email if it came from XE...they are basically saying that even if it LOPed in country it wouldnt affect the value out of country...but that you would have to travel in country to cash out...at which point as soon as you entered Iraq, the LOP would then affect your dinar as well...unless of course it was tradeable when it LOPs. This leads me to a prediction(because I am a pessimist of sorts) I think that Iraq will LOP, give a ___(fill in the blank with a number) day time frame to cash in dinar, then after that timeframe the currency will enter the world market for trading.

On the other hand, running the numbers in this situation actually works...you have presumably 27 trillion in circulation(please dont bring the rumor they have been removing bills from circulation, it is only a rumor) I have heard that there is approximately 3 trillion of that in the US...this seems like a number with a fair degree of accuracy...I know as speculators combined we probably hold 1 trillion, give or take 10 or 20 million(extrapolated from those Ali court documents in Arkansas) so 2 trillion being held by the government or larger investors isnt out of the question. We can probably pretty reasonably assume the rest of the world has another 3 trillion or so. If this is the case theres a total of 6 trillion they would have to redeem at some point in time. Now Estimates put Iraq's oil reserves at roughly 20 trillion...but pumping 2.3 million barrels a day(current production) it will take 200+ years to pump it all...and our dinar would account for a third of their total oil wealth...or 60 years worth, redeemed at a 1:1 ratio. Now if we assume fractional banking(ignoring for the moment the fact fractional banking is technically against islamic law) that would require just 600 billion to back...still a lot of money, but far from impossible, especially if the various countries set up a plan to redeem them over time for money(or redeem them immediatley for a credit voucher of a sort). It would be complicated, but technically it could be done if they chose to do it.

The way I read it is that it wouldn't change the value of the IQD that you hold only the amount meaning that if you have 10 mill IQD that is worth 10 thousand USD you would now have 10 thousand IQD worth 10 thousand USD.

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Ok My DV family heres somrthing to think about and this is just my opinion, why would they be holding auctions and still selling Dinar when they know that if they lop right now there is going to be a hole bunch of countries that is going to be pissed off. If you are having an auction and you know this money to be worthless isnt that like inside bond trading,you selling something to be worthless and know its not going to gain on the free market?(hope i said that right).IMO i think they are going to RV and have a deadline to cash in and if you hold on to a little just in case their are some places that might still cash in...... Lets go RRRR VVVVV :P:D:P

They buy IQD at the auctions...they don't sell it....they do this to maintain the value.

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So let's see

if I write in CAPS then that makes the evidence presented in this article

as translated by an Iraqi in Iraq False and the RV theory true

well thats awesome

so if I write that I AM SUPER RICH AND GOODLOOKING or

BUDGET DEFICIT WHAT BUDGET DEFICIT?

thats true now too

RIGHT?

You believe everything you read? So What, I like to "Dress up" a post now and then. What are you missing in your life? I cant see any reason to throw darts in my asz because I posted my opinion AND it has been addressed a 100 times a LOP would do Nothing for Iraq.

Period, IM A HELICOPTER PILOT........................Oops.cool.gif

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Hi Soldier, If it does go down that way.....first of all that would be a real downer. Second, I hope that we would be able to sell them back here. There is a real chance you will only be able to turn them in within country.(at least according to this XE rep) So for some it will be worth it if they are sitting on enough IQD to fly over , but for others it may just be a complete loss because it would not be worth it to fly to iraq to exchange.

I guess, if you have a bank account over there you would be an a safe position in case of a re-denomination as your money would just adjust within the account.

I know excatly what will happen and agree w/ your most of your thoughts. That why I only invested what I could lose. No worries.

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No no no no no

...That my friend, is exactly what they are referring to......the lower denomination notes.

The 'New" currency is not a totally new type of money NOR does it refer to just certain denominations (new lower) and not others....it's a translation thing

this 'NEW" currency is a translated reference to the new 'valuation' or 'status' of the currency after an event that either 'lops' or 'rv's' their currency.

It's not something 'NEW" it's just the new status and value of the money after it RV's or after it LOPS. .....what I get from this article is reinforcement on the notion that nobody knows what the hell is going to happen ... so business as usual basically.

Wes

So for some it will be worth it if they are sitting on enough IQD to fly over , but for others it may just be a complete loss because it would not be worth it to fly to iraq to exchange.

I guess, if you have a bank account over there you would be an a safe position in case of a re-denomination as your money would just adjust within the account.

look at it this way, if you invested 100 bucks and you bought 100,000 IQD would it be worth it to fly to Iraq for a hundred grand? hell yes!

if you only have 25,000 iqd and you don't feel it's worth while to fly over to IRaq then you're out 25 bucks, no big deal right?

Even if it's an "IN COUNTRY" revaluation (which with Ty and Ali both saying they'll exchange here in the US and Canada and Europe I don't see how it could be) it's still a good deal.

if it happens, (I"m only 20% convinced anythings actually going to happen)

Wes

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They cant LOP...............!!!!

They wont LOP..............!!!

Think: Whats the best way to keep all of us guessing ?? #2 A LOP DOES NOTHING FOR IRAQ AND PISSES OFF THE ENTIRE WORLD.

No it actually only pisses you off because you thought this was a sure fire million dollar maker instead of understanding the full investment and realizing there is a chance we wont make tons of money

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No no no no no

The 'New" currency is not a totally new type of money NOR does it refer to just certain denominations (new lower) and not others....it's a translation thing

this 'NEW" currency is a translated reference to the new 'valuation' or 'status' of the currency after an event that either 'lops' or 'rv's' their currency.

It's not something 'NEW" it's just the new status and value of the money after it RV's or after it LOPS. .....what I get from this article is reinforcement on the notion that nobody knows what the hell is going to happen ... so business as usual basically.

Wes

look at it this way, if you invested 100 bucks and you bought 100,000 IQD would it be worth it to fly to Iraq for a hundred grand? hell yes!

if you only have 25,000 iqd and you don't feel it's worth while to fly over to IRaq then you're out 25 bucks, no big deal right?

Even if it's an "IN COUNTRY" revaluation (which with Ty and Ali both saying they'll exchange here in the US and Canada and Europe I don't see how it could be) it's still a good deal.

if it happens, (I"m only 20% convinced anythings actually going to happen)

Wes

Hi Wes,

If it happens the way you lay it out, I would be the on a plane right next to you to Baghdad....lol.... $100K totally worth it. But if it RD. and i must go to Iraq to exchange.......Well i guess i will be seeking out Ali or Ty as well and accept whatever rate they give, which, I'm pretty sure will not be too good but better then nothing:)

Hopefully it works out for us, that's why we are here.

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I know excatly what will happen and agree w/ your most of your thoughts. That why I only invested what I could lose. No worries.

bingo...

Flame on.

If indeed it does LOP, I would not care since I didn't lose a dime..well I was invested for years so I did lose some to inflation, but that's ok...it was worth the opportunity cost. I've always stated, invest what you can lose. If it sounds too good to be true, it usually is.

In any case, I would love for it to RV, but it doesn't I'll just exchange it back to dollars.

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RD, RI, RV, LOP, no LOP...this is a 'penny stock' crapshoot, not a lottery ticket. The worst that can happen is that you about break even, maybe a few points of interest. The best is that you'll make a ton and pay you're 40% to Uncle Sam and his 1/50th cousin. Either way it's been fun.

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No it actually only pisses you off because you thought this was a sure fire million dollar maker instead of understanding the full investment and realizing there is a chance we wont make tons of money

I have yet to be Pissed off about anything concerning this Investment. It does chap my asz when the "Uninformed" Pass off there Opinions/Deciphering as the Holy Grail.

You would,nt know anyone like that Im sure..unsure.gif

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