Dinar News Iraq Planning Currency Redenomination

[Knuckles]

That's the way my math works too. Kind of disappointing if true.

[User Name]

Recceguy, how does your interpretation allow them to "carry less money." Your reasoning would cause them to carry even more money as it would make the smaller denominations worth even less.

[Knuckles]

Hope this is not the full story. I agree with you.

[Knuckles]

Could you explain the theory of the purchasing power. You lost me.

Thanks

[Knuckles]

I hope we aren't crying any type of animal!

[bellypod]

boy this sure is confusing...i guess we will have to wait for more news

[Knuckles]

Good point

[kingjaffi]

ARE YOU GUYS KIDDING ME.Cant you see that your currency will be woth SQUAT.My 7000000 is now 7000.What is there to be happy about.Wake up,we are getting screwed by Iraq.

When the $1000 and $500 bills were phased out in the US it did not lose it purchasing power. Same in Ghana recently, the Cedi did not lose its purchasing power just re denominated. Now if they said it will be exchanged at a different rate i.e. 100 old IQD to 1 new IQD then I would agree. You are just going to be holding smaller denomination to ease transaction.

[kingjaffi]

And they are going to co exist until they are phased out.

[kenai999]

Currently.

25000 Dinars / 1170 exchange rate = ~$21.36

After redenomination. Lop 3 zeros. Turn in your 25000 dinar notes for 25 dinar notes.

25 dinars = ~ $21.36

Is that how most of you are seeing it?

Thx.

[wmgprint]

this is good news

[NineLives]

Remember? From what credible source did you get that idea?

I'm sorry, but I have never heard of this before, nor did I see that mentioned in the article.

Remember they will remove the zeros from left to right, with that it would be .87 which would mean a RV, IMO.

[NineLives]

Correct, no loss of money but let's also add no gain either.

When the US delete the use of the $500.00 and larger bills, did anyone when taking their $500.00 bill not get 5 $100.00 bills, 10 $50.00 bills, etc?

They go full value. That is exactly what they will be doing here. They will exchange the larger denominations for smaller denominations. No loss of money.

[NineLives]

I was just sitting here reading and thinking that very same thing.

Where can I get a pair of those Rose Colored Glasses?

It's fascinating isn't it how people read the exact same words and some see a lop and others see good news for an RV.

[NineLives]

Has it not occurred or even entered anyone's mind as to why they would announce (let's say) 11 months' in advance of what people seem to believe is an RV/RI? Think clearly for one minute here folks,....if this was the case as most of you think,..why not just spring it on everyone and do this behind closed doors, perhaps overnight.......? Why would they announce it and give everyone in the world the opportunity to buy up all the possible dinar that they could and then be rich in say 11 months...there's no way that they would make this as easy and pretty as that. I'm sorry folks, I'm a dinar holder as well and I think it's too early in the game to make a call that this is a good thing. Watch how the pumper's will take advantage of this news and twist this around to fit their agenda. Proceed with common sense.

[wishfulthinking]

That is exactly why the announcement of the RV will be made almost immediately.

This is an article of Aug/2008

Iraq central bank takes steps to

[wishfulthinking]

I would love to become a millionair but not too sure it's going to happen

[Alf]

It was bound to happen sooner or later. Tis a good thing and the sooner the phase out starts the better.

[NineLives]

Thanks for the re-post of that article. Many new investor's may have not seen that in the past.

I would love to become a millionair but not too sure it's going to happen

[ntyork]

i do not believe the dropping off the zero's is to prevent "counter-fieting" (jackdavis1364). it is so that "all" citizens can carry money. also, so that trade can take place in the surrounding opec countries. the economic value is currently out of scale and as previously stated to buy a stick of gum is crazy with the amount paying. so changing the value (RV) of the currency also changes the value of the stick of gum, bread, gas, etc. this is to put the economic value to scale appropriate and in line with the other opec nations currency. the ultimate goal is for them to have a common value dinar that is worth the same in iraq, kuwait, etc. in order for this to happen, the values at each country must share equal.

of course i am only speculating as i have been for the past year and a half.

[mjtoofy]

i don't know if I should be excited or worried

[DWC]

isn't the best example Kuwait, how did their currency revaluate and evolve?

[BurntToast]

For sake of argument lets say a loaf of bread in Irag costs 5000 IDQ, or $5 USD. No lets say there are the two IDQ circulating at the same time, a $5000 IDQ and a 5 IDQ. That loaf of bread would have to have two prices on it, 5000 IDQ and 5 IDQ. Once the 5000 note is out of circulation, the vender simply takes off loaf of bread the higher noted price, in effect lopping off three zeroes. A 5 IDQ is now 5 USD, a wash. The pricing (not the value) of the goods being purchased have to be changed also, i.e., revalued. This line of reasoning tells me that the 5 IDQ that is replacing the 5000 IDQ is the RV. Please, debunk this reasoning.

[garyfieldings]

BurntToast, I think you have nailed it ,

first they knock off 3 zeroes, which devalues your $5,000 IDQ to $5 IDQ

then RV'ed @ $ 1.49 - Hopefully $3.45 -

I purchased $9,000,000 IDQ take off 3 zeroes , that's $9,000 IDQ RV'ed @ $1.49 =$13,400

48.9% return. They are clever.

Edited February 8, 2010 by garyfieldings
overlap

[jerry]

well if you bought that pack of gum with a 10-k dinar they can simply give you a 5-k note in change? would you go in a store with 5000 pennys to buy something 5.00??