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CBI restructuring/deletion of zeroes is 100% a LOP


truthful1
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haha youre 99% right??? lol well just so happens i taked with someone and they are indeed Lopping IN country!!!!!!!! our bills will still be deemed to cash in with legal tender and yes i said it with the 3 zeroes the Iraqi citizens will not due to internal issues. Also the lower denoms will be released hope that clears it up andyou hve a good day. how many times have they said in those articles LOCAL currency.

An "in Country" LOP(redenomination) would have an exchange window. Exchange for new replacement currency would only take place "in Country", once the exchange window expired the previous currency that was replaced would be deemed worthless.

That obviously would be bad, and has always been the worst case scenario in this speculation.

You are correct, my apologizes. My opinion comes from the announcement of a new currency. I expected a rd. Which would hopefully be adding lower denoms to the current class. Not issuing a new currency altogether that will co-exist with the other.. The fact the currency auction is still going on. The fact dealers are still selling at regular prices, and the fact you can still find all the large notes you want, changes my opinion to believe they mean what they say.

adding smaller denoms to existing larger denoms of the same currency is not a redenomination. :(:o:(

http://www.investopedia.com/terms/r/redenomination.asp#axzz1Q8mFygMt

There seems to be alot of folks here that don't really understand the terminology they are using :o

Lets do some reading :)

Redenomination: http://en.wikipedia.org/wiki/Redenomination#Redenomination

Demonitisation: http://en.wikipedia.org/wiki/Demonetization#Demonetisation

Revaluation: http://en.wikipedia.org/wiki/Revaluation

Devaluation: http://en.wikipedia.org/wiki/Devaluation

http://www.investopedia.com/terms/r/revaluation.asp#axzz1Q8mFygMt

http://www.investopedia.com/terms/d/demonetization.asp#axzz1Q8mFygMt

http://www.investopedia.com/terms/r/redenomination.asp#axzz1Q8mFygMt

Edited by sportfisher
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So ....what you're saying is that, every OTHER currency exchange for profit on the planet is legal and fine and good ... but the IQD isn't?

People have been making boatloads of money on foreign exchange transfers for decades, and I fail to see how this currency should be singled out.

Not only that, but OF COURSE the IQD is for use in country only! So is the Japanese yen and the Swiss franc - I can't use the yen to buy milk at the store in Ireland, or the franc to get a gallon of gasoline in Zimbabwe. Currencies are rarely used outside of their native country, so to me, that argument doesn't hold water. Exceptions are in bordering countries like, for example, the US and Canada. Close to the border, they do accept USD in Canada, but the further you get from the border, the more they would rather you used Canadian money.

How about this take? I've posted it elsewhere, and I'm curious to see your opinion. This comes in two parts:

First, I'm going to give you a hypothetical which is unlikely to happen, but the outcome is still valid if it were to happen to you today.

Imagine that, by some miracle, you happen upon a $1,000 USD American bill. Doesn't matter how ... ok, let's say you find it on the street (like I said ... by some miracle.) Right now, you wouldn't be able to spend it as such, because those $1,000 bills have been taken out of circulation. You can't go to the market and ask, "Can you break this?" No, not so much. Even if you wanted to buy something for $999, they would still look at you funny because they'd think it's fake!

Now ... having said that, if you take that $1,000 bill to your bank, your bank would, in fact, break it, and give you ten $100 bills, or 100 $10 dollar bills, or any other permutation that bring you to your $1,000. You would STILL HAVE the thousand dollars ... just not THE BILL, because the $1,000 bills have been lifted from circulation ... which is another word for saying 'raised,' which brings me neatly to the second thing ...

It's all in the translation from Arabic to English. The people who translate the posts into English, by and large, use euphemisms, analogies and other words for saying common words like 'REMOVE,' or 'take away'. English is not their first language. ARABIC is ... which is why we keep seeing that they're going to lift, or raise the three zero currency. They are removing the large bills from circulation ... a thing that DOES NOT AFFECT the bill's VALUE!

The 'restructuring' means that the currency will be revalued. This must happen because no one single person, no business, no enterprising entity on the planet will do business with, or invest in, a country who's currency is worthless in the open market. No other scenario makes sense, and the idea of them taking the three zeroes is a lesser option to giving the IQD back it's value pre-war (which is around $3.30 against the USD if I'm not mistaken) when you factor in their economic potential.

Not only that, but if all they did was take away the zeroes, the new value of the dinar would go up by 1000 ... but the value of all large denomination dinar now in circulation would go down by 1000 ... so there is no difference in dinar that are out there now. What they'd be doing is creating a an entirely new currency, let's call it the Kilodinar ... where 1 KiloDinar = 1000 Dinar would be worth about 1 dollar. It would be worth $1.17, to be exact ... wait ... no (getting out calculator) it would be 1 / 1.17 ... which would be .86 cents, and that's where they have been getting the .86 cents figure from as a possible RV rate.

The defense rests.

GO RV !!!!

The CBI law indicates its for local currency only, and they dont have to honor it . It's article 32 of the CBI LAW, Issuance of Currency. I'm not saying they wont accept it, but its there choice, not mine.

I whole heartedly know of your $1000 example. I understand completely. Are you aware of historic rd, like Turkey? They have used Turkey as an example for what they plan on. Are they telling the truth? Who know's.

No need to be defensive. I hope the defense rests. Good day.

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You are absolutely INcorrect!

Right now the value of the Iraqi Dinar is $.00089 to the U.S. Dollar.

By 'raising' three zeros, they are taking out the three in front of the 89 making the RV at $.89 to 1 u.s. dollar.

so if you have 10,000 dinars, you'll walk away with $8,900. If you have 100,000 ID, you'll bet $89,000, etc.

It appears they are taking the slow route to RV. A lot of money will be cashed in at this rate which will be better for Iraq.

But the rate is expected to go up each year (or sooner) thereafter.

Sounds to me like this is still one heck of an investment!

One heck of an investment ... Yes.... IF things go the way you described.... Which is not a sure thing at all , I'm sorry to say.....

Again, we can only hope and wish for the Best........Or else we are basically shafted ( in reference to what we were expecting to reap)

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At the risk of being confrontational because that is not my intent.....

Are you suggesting that the lowly Iraqi with a 25K Dinar note will get the new note and it will be worth 25 Dinar and that will be worth approx $25..................but your 25K note will be worth $25 Thousand Dollars???

Come on man....

Slade, I have pointed out that obvious bit of logic and it doesnt seem to work. Haha. " Some one" probably Oakie told him this so it must be true. Sorry Easy. Dont mean to be rude but that is the most ludicrus thing I have ever heard.

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So ... what you're saying is that, every OTHER currency exchange for profit on the planet is legal and fine and good ... but the IQD isn't?

People have been making boatloads of money on foreign exchange transfers for decades, and I fail to see how this currency should be singled out.

Not only that, but OF COURSE the IQD is for use in country only! So is the Japanese yen and the Swiss franc - I can't use the yen to buy milk at the store in Ireland, or the franc to get a gallon of gasoline in Zimbabwe. Currencies are rarely used outside of their native country, so to me, that argument doesn't hold water. Exceptions are in bordering countries like, for example, the US and Canada. Close to the border, they do accept USD in Canada, but the further you get from the border, the more they would rather you used Canadian money.

How about this take? I've posted it elsewhere, and I'm curious to see your opinion. This comes in two parts:

First, I'm going to give you a hypothetical which is unlikely to happen, but the outcome is still valid if it were to happen to you today.

Imagine that, by some miracle, you happen upon a $1,000 USD American bill. Doesn't matter how ... ok, let's say you find it on the street (like I said ... by some miracle.) Right now, you wouldn't be able to spend it as such, because those $1,000 bills have been taken out of circulation. You can't go to the market and ask, "Can you break this?" No, not so much. Even if you wanted to buy something for $999, they would still look at you funny because they'd think it's fake!

Now ... having said that, if you take that $1,000 bill to your bank, your bank would, in fact, break it, and give you ten $100 bills, or 100 $10 dollar bills, or any other permutation that bring you to your $1,000. You would STILL HAVE the thousand dollars ... just not THE BILL, because the $1,000 bills have been lifted from circulation ... which is another word for saying 'raised,' which brings me neatly to the second thing ...

It's all in the translation from Arabic to English. The people who translate the posts into English, by and large, use euphemisms, analogies and other words for saying common words like 'REMOVE,' or 'take away'. English is not their first language. ARABIC is ... which is why we keep seeing that they're going to lift, or raise the three zero currency. They are removing the large bills from circulation ... a thing that DOES NOT AFFECT the bill's VALUE!

The 'restructuring' means that the currency will be revalued. This must happen because no one single person, no business, no enterprising entity on the planet will do business with, or invest in, a country who's currency is worthless in the open market. No other scenario makes sense, and the idea of them taking the three zeroes is a lesser option to giving the IQD back it's value pre-war (which is around $3.30 against the USD if I'm not mistaken) when you factor in their economic potential.

Not only that, but if all they did was take away the zeroes, the new value of the dinar would go up by 1000 ... but the value of all large denomination dinar now in circulation would go down by 1000 ... so there is no difference in dinar that are out there now. What they'd be doing is creating a an entirely new currency, let's call it the Kilodinar ... where 1 KiloDinar = 1000 Dinar would be worth about 1 dollar. It would be worth $1.17, to be exact ... wait ... no (getting out calculator) it would be 1 / 1.17 ... which would be .86 cents, and that's where they have been getting the .86 cents figure from as a possible RV rate.

The defense rests.

GO RV !!!!

Yea your right....they are removing the larger bills from circulation by redenominating to combat the after affects of YEARS of high inflation and printing excessive amounts of currency.......Thats what this whole "plan of removing the zeros" is deleting/raising/lopping/cutting the zeros is nothing other then a redenomination......only thing we can hope for at this point is that parliment does not pass it, and it gets thrown out.....

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Slade, I have pointed out that obvious bit of logic and it doesnt seem to work. Haha. " Some one" probably Oakie told him this so it must be true. Sorry Easy. Dont mean to be rude but that is the most ludicrus thing I have ever heard.

Sad, but true.

I drank deeply of the Pumper-Aide, and felt the same way, until I started researching the options.

In many respects, this is an Organic MLM process.

The growth potential was realized by savvy investors who knew 300 to 500 percent growth potential within 10 years when they saw it. They had large sums of money to invest, and their expectations were realistic. They also knew the high probability it would have to RD first, then RV. They have already doubled their money.

The next level, saw the potential of marketing the dinar at a profit and gathered their gains on the front end, as well as retaining enough for later gains.

Level after level joined; each with their own profit centers developed around selling the dream.

Commissioned sales people climbed inboard to interface with the inexperienced investor, and developed a language and sub culture.

We are here, trying to make the best of what we have, trying to unlearn all the social engineering that was used to keep the fever high enough to ignore the obvious.

We were owned by the Pumpers.

There is still the same potential that the original high rollers saw. Most of us bought at the 1170 rate, so we missed the first turn over.

We still will be thousandaires. I guess there are unanticipated chances for higher returns, and I would certainly not turn them down.

But, it is really looking like a RD, then eventual RV away....

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Someone help me out with this thought. If they lop and immediately rv then all will be good because if you went to exchange your dinar, the teller/clerk is not going to look at you and say well that 25,000 dinar bill is really only 25 dinar. Nope, I've got 25,000 of them and each one is deserving of the new rate.

Next scenario, (you have a 25,0000 dinar bill).....just a lop with x number of days to exchange for lower denoms. When you exchange, wouldn't you get 25,000 dinars in smaller bills? Then sit and wait for the new rate?

Please someone explain this to me.

Edited by WorkerBee
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Here we go again. Which one of you is the financial expert? I'm calling you out. Give me verifiable intel that says Iraq is raising 3 zeroes and our investment is worthless. Come on give me facts because your opinion, when it comes to what an entire country is going to do to strengthen their economy is meaningless to someone like me who is hoping to get a reasonable rate of return on my investment. Easyrider, I apologize to you and the other members for my showing my frustration. Signing off for tonight.

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Someone help me out with this thought. If they lop and immediately rv then all will be good because if you went to exchange your dinar, the teller/clerk is not going to look at you and say well that 25,000 dinar bill is really only 25 dinar. Nope, I've got 25,000 of them and each one is deserving of the new rate.

Next scenario, (you have a 25,0000 dinar bill).....just a lop with x number of days to exchange for lower denoms. When you exchange, wouldn't you get 25,000 dinars in smaller bills? Then sit and wait for the new rate?

Please someone explain this to me.

Can't help you on the LOP subject, but if they RD, the process takes as long as necessary to remove the large bills before being considered complete.

A RV can follow, but not until after the RD process has finished.

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Here we go again. Which one of you is the financial expert? I'm calling you out. Give me verifiable intel that says Iraq is raising 3 zeroes and our investment is worthless. Come on give me facts because your opinion, when it comes to what an entire country is going to do to strengthen their economy is meaningless to someone like me who is hoping to get a reasonable rate of return on my investment. Easyrider, I apologize to you and the other members for my showing my frustration. Signing off for tonight.

Its these articles saying they are raising the zeros.....they have been mentioning it for YEARS now.....no one can say if it will 100% happen yet because the plan has to be passed through the parliment to be voted on...thats the last step.....you want to know how they can move forward and strengthen their economy? A redenomination shows stability and improvement from years of high inflation (in Iraqs case) They will be able to rid themselves of the inflated money supply as well, and put a higher value on the currency....makes cash transactions easier as well.....its a sign of improvement.....our investment wont be worthless.....IF they pass this and I say IF, then there is a chance of being able to hold on to our bills as the exchange rate is finally able to advance......

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Why would IRAQ lop their currency and not revalue - it makes no sense. Their currency was artifically devalued in 2004 due to the war. The IMF and Ernst & Young have already analyzed the IQD to support a RV. IMO worst case scenario is that they would lop and revalue. For example 1 million dinar would become 1 thousand dinar time the Rv rate - let's say 3.50. This means you would get a pretty good return on your investment - just not the windfall we are hoping for.

Sorry, but their currency was not 'artificially' devalued. If you go through the CBI documents, the value of the dinar was already in the toilet before Saddam was officially removed from power, they just didn't take the sign out of the window. Actually the dinar increased in value the month after Saddam was removed, by about double. If anyone wants to verify this, simply go to the CBI website, go to Statistics, and look at the Annual Report 1990-June 2003. Look at Table 10 under prices, it shows the exchange rates for dinar to the dollar for that period. Keep in mind that Saddam was 'officially' removed from power on April 9th, 2003.

http://www.cbi.iq/documents/Annual_2002f.pdf

The value of the dinar decreased because Saddam spent the amount in the treasury backing the dinar in his war with Iran. The value of the dinar depreciated like a stone after the sanctions were imposed in 1990. He also went on a printing spree and increased the amount of dinar from ~25 billion to over 2 trillion.

But kudos for not dismissing the idea of a lop/redenomination...

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The information coming out by the cbi, guarantees a lop. If you dont know what that is, you can do some research. Im not trying to change peoples minds, but the most recent comments CONFIRM A LOP.

*****************Central Banks dont announce rv's, so dont think that's what your hearing****************************************

I think the majority of the tenured dinarvets are now seeing the truth. Dont let all the facts be spun, guru's have money to make, to make you think its a rv. Plain and simple, it's not.

Time will prove me right. I am not here to spread bad news, just my analysis. I want a rv real bad, Its just not the way its going down. Good day to all. I pray I am wrong, but im 99.9% sure Im right.

Here is the official story posted this morning in Iraq.

http://www.alsumaria.tv/en/Iraq-News/1-65688-Iraq%E2%80%99s-Central-Bank-plans-to-delete-zeroes-of-Iraqi-currency..html

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What will happen! my personal thinking! please bear with my grammar I am a french Canadian!

Is that the deleting of the 3 zero's will be done!

Let's look at the 25000 dinars bill!

Deleting the 3 zeros means going to lower denomination, as mention it should be the100 dinars bill that would be the higher bill!

Now by doing this and have a RV of .89 to 1.30, will be that they will honor the value of the 25000 dinar bill, but you will have

a certain time to change your big bills for lower denomination for the new lower money!

Now if you have 100,000 thousand of dinars in 25000 bills then you will have (don't know how time) let's say 90 days to trade your

25000 for what ever small denomination you want, personaly I would take the 100 dinar new bill! less paper money!

By doing this CBI and the Iraq would save with and RV of about 1.00, 2/3+ of the money traded for smaller denomination, as you would

have 90 days to trade it before it's worth nothing ( it as been done before a lot of times, just do a research )!

That way Iraq would save billions by doing this move, as a lot of investors will trade in for lower denomination, but most of investors

will change now to what ever currency they want! right then! at 1.00 as they have waited long enough and not willing to wait 6 months +

till it comes to about 3.75!

A lot will trade it for a certain amount of US or any currencies and keep the rest and wait till the dinar goes to about 3.75!

That will be your own choice, anyway I think about 75% of ivestors will sell at 1.00 and Iraq will save a lot of money

trading it at 1.00 instead of 3.75!

Take care

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What will happen! my personal thinking! please bear with my grammar I am a french Canadian!

Is that the deleting of the 3 zero's will be done!

Let's look at the 25000 dinars bill!

Deleting the 3 zeros means going to lower denomination, as mention it should be the100 dinars bill that would be the higher bill!

Now by doing this and have a RV of .89 to 1.30, will be that they will honor the value of the 25000 dinar bill, but you will have

a certain time to change your big bills for lower denomination for the new lower money!

Now if you have 100,000 thousand of dinars in 25000 bills then you will have (don't know how time) let's say 90 days to trade your

25000 for what ever small denomination you want, personaly I would take the 100 dinar new bill! less paper money!

By doing this CBI and the Iraq would save with and RV of about 1.00, 2/3+ of the money traded for smaller denomination, as you would

have 90 days to trade it before it's worth nothing ( it as been done before a lot of times, just do a research )!

That way Iraq would save billions by doing this move, as a lot of investors will trade in for lower denomination, but most of investors

will change now to what ever currency they want! right then! at 1.00 as they have waited long enough and not willing to wait 6 months +

till it comes to about 3.75!

A lot will trade it for a certain amount of US or any currencies and keep the rest and wait till the dinar goes to about 3.75!

That will be your own choice, anyway I think about 75% of ivestors will sell at 1.00 and Iraq will save a lot of money

trading it at 1.00 instead of 3.75!

Take care

How does that deal with the 27 trillion in circulation? It doesnt. It only adds more cash to an already over cashed population. Remeber, less than 1/5th of the people have bank accounts. So now they are going to be carrying around even more cash in lower denoms? Dont think so. They will get 1 25 note not 1000 of them.

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The information coming out by the cbi, guarantees a lop. If you dont know what that is, you can do some research. Im not trying to change peoples minds, but the most recent comments CONFIRM A LOP.

*****************Central Banks dont announce rv's, so dont think that's what your hearing****************************************

I think the majority of the tenured dinarvets are now seeing the truth. Dont let all the facts be spun, guru's have money to make, to make you think its a rv. Plain and simple, it's not.

Time will prove me right. I am not here to spread bad news, just my analysis. I want a rv real bad, Its just not the way its going down. Good day to all. I pray I am wrong, but im 99.9% sure Im right.

I just like your new word. "guru'ed". A lot of people around here have been guru'ed. :P

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How does that deal with the 27 trillion in circulation? It doesnt. It only adds more cash to an already over cashed population. Remeber, less than 1/5th of the people have bank accounts. So now they are going to be carrying around even more cash in lower denoms? Dont think so. They will get 1 25 note not 1000 of them.

Hate to admit it, but im now a LOPSTER.... just makes perfect sense from all of the articles and logic involved... i pray im wrong, sorry if im messing up the "positive' energy thing that some of you people buy into. I think that they will LOP then down the road RV and we still look to double or triple our money in time, and im fine with that too. i didnt spend more than i would at the tables in Vegas. Im just glad this pumper roller coaster ride is alomost done, im ready to get off. im so sick of Okie and other A-Hole pumpers and all their super secret BS Intel.

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Im just glad this pumper roller coaster ride is alomost done, im ready to get off. im so sick of Okie and other A-Hole pumpers and all their super secret BS Intel.

laugh.giflaugh.gif That makes two of us!!! Got my fingers crossed that parliment doesnt approve of the plan to remove the zeros.......

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haha youre 99% right??? lol well just so happens i taked with someone and they are indeed Lopping IN country!!!!!!!! our bills will still be deemed to cash in with legal tender and yes i said it with the 3 zeroes the Iraqi citizens will not due to internal issues. Also the lower denoms will be released hope that clears it up andyou hve a good day. how many times have they said in those articles LOCAL currency.

I sure hope you're right! One thing i'm worried about is, what if they only apply the new rate to the new currency and not our current banknotes? I say this because this is what has happened with every other currency that revalued after they redominated their currency. I would love an answer to this question because it has crossed my mind quite a bit.

Thanks for your input :)

Edited by RealisticLassie
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A LOP for the Iraqi people. A LOP & RV for the rest of us. ID 25K becomes ID 25. For the rest of us ID 3.3 to the Dollar.

That doesn't really make sense. It would make more sense (which still doesn't make much sense) is to redenominate the current currency and then revalue the NEW currency for the iraqi citizens, then just revalue our banknotes without a LOP. I mean that's really the only way we would profit without dropping the zeros first. Lopping and Revaluing our banknotes would be the same thing as dropping the zeros and then revaluing them, which wouldn't make much sense because it would be doing the same thing to our banknotes as it would to the iraqi citizen's banknotes, no difference whatsoever.

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