2 articles - last hour

[zaborniake]

Again I think alot are missing the whole point of a redenomination. If they exchange lower denoms for the 000 notes there will still be 27 trillion in circulation which defeats the whole purpose. Not to mention the massive amount of new lower denoms that would be required to make that happen. How would Iraqis deal with that volume of currency? They don't have bank accounts. Also the articles clearly state that the RD will make a 1000 note a 1 note. It doesn't get any more clear than that.

The whole notion of all this being smoke I guess could be the case but we would have to ask ourselves why. All they would have to do is visit any one of these forums to see that there are so many brainwashed people on here that it doesn't matter what they say. They could come out with an article in perfect english saying that the LOP will be next week and all the sheep would run out and buy as much dinar as they could. If in fact this is all smoke then why now? Just before the RV they want everyone to stop buying dinar? Hahaha I don't think so. They have been selling the crap out of it for years so I think that damage is done. Little too late for them to stop speculators. The whole dinar frenzy is completely out of control and if all the articles that say LOP haven't stopped it in the past then why bother now. No, I think we should take them at their word on this.

Then there is the issue of an actual RV to 1 dollar like many are claiming is about to happen. Well, someone please explain to me how that would be possible. Overnight their money supply becomes worth somewhere around 50 trillion USD? I don't really think that is gonna happen. Would be nice if it did but please someone explain how that is a possibility. How is the Iraqi making 10 million dinar a year gonna suddenly be making 10 million dinar worth 10 million USD a year? Haha. So much for that position. The class warfare that would be created in Iraq would be a 1000 times worst that here in the USA.

There are just too many things that just don't add up and I am waiting to hear how it could be but the only thing that I am hearing is what the CBI is telling me and that is WE ARE ABOUT TO LOP. Sad but true.

I'm buying if you want off this ride.

[RVDinar4MyFamily]

Again I think alot are missing the whole point of a redenomination. If they exchange lower denoms for the 000 notes there will still be 27 trillion in circulation which defeats the whole purpose. Not to mention the massive amount of new lower denoms that would be required to make that happen. How would Iraqis deal with that volume of currency? They don't have bank accounts. Also the articles clearly state that the RD will make a 1000 note a 1 note. It doesn't get any more clear than that.

The whole notion of all this being smoke I guess could be the case but we would have to ask ourselves why. All they would have to do is visit any one of these forums to see that there are so many brainwashed people on here that it doesn't matter what they say. They could come out with an article in perfect english saying that the LOP will be next week and all the sheep would run out and buy as much dinar as they could. If in fact this is all smoke then why now? Just before the RV they want everyone to stop buying dinar? Hahaha I don't think so. They have been selling the crap out of it for years so I think that damage is done. Little too late for them to stop speculators. The whole dinar frenzy is completely out of control and if all the articles that say LOP haven't stopped it in the past then why bother now. No, I think we should take them at their word on this.

Then there is the issue of an actual RV to 1 dollar like many are claiming is about to happen. Well, someone please explain to me how that would be possible. Overnight their money supply becomes worth somewhere around 50 trillion USD? I don't really think that is gonna happen. Would be nice if it did but please someone explain how that is a possibility. How is the Iraqi making 10 million dinar a year gonna suddenly be making 10 million dinar worth 10 million USD a year? Haha. So much for that position. The class warfare that would be created in Iraq would be a 1000 times worst that here in the USA.

There are just too many things that just don't add up and I am waiting to hear how it could be but the only thing that I am hearing is what the CBI is telling me and that is WE ARE ABOUT TO LOP. Sad but true.

You and I know there are very few on this board or any board that is willing to accept that. I myself know it is a possibility, and realize that I may have to hold on for a while to get maybe double or even three times my return. Hell, if I had the money to invest, the IQD would still be looking like a pretty good investment with these articles. Buy in low, wait for it to mature and sell. good chance you will at least double your investment. I posted scenarios about the lop not long ago, and the other possibilities for the delete/remove the zeros articles. This is also the first article that clearly mentions the introduction of not only lower denominations, but also a 100 dinar denomination (I know, it says EQUAL to $100) and the introduction of coins.

The fact that they also talk of short term and long term leaves opening for the lifting of the zeros instead of just the deletion of the zeros. This would be the best case scenario for us, but does not look promising. If the lifting of the zeros were the plan, then the existing 50, 250, and even the 500 could be used as the largest denomination and a 100 dinar bill will not be necessary.

My explaination of the zeros...

DELETE the Zeros or LOP, and why the lower denoms may not be a good thing

Next, we are going to the stinking lop section, bad, evil, how dare I talk of such heresy HAHAHAHA

To better understand this one, we need to look at what Iraq would need to do in order to be able to pay for things like a bottle of soda with physical currency, the easiest and most effective way should be the dreaded lop, but Iraq has problems with this, and I will get to why later.

The lop is a pretty simple concept, you remove three zeros from ALL of the current denominations and also from the exchange rate. You do this by introducing lower denominations equal to the current denominations. This is just changing the denominations and the rate, and does not change the value of the iqd yet.

In this case, the currency is re-denominated, a 25,000 dinar note = 25 dinar note, they are worth the same amount and even in the event of a Re-value of the rate, they will still only be worth 25 dinar. They will be used together till all the large notes are removed or destroyed. Eventually, the new lower denominations will completely replace the larger ones

So, we need to look at the currency and the exchange rate to understand what happens to it

The rate stays .00085 or 1165 for large denominations and changes to .85 or 1.165 for lower denominations.

25,000 dinar note is now = to a 25 dinar note ($21.46 usd at the current rates)

10,000 dinar note is now = to a 10 dinar note ($8.58)

5,000 dinar note is now = to a 5 dinar note ($4.29)

1,000 dinar note is now = to a 1 dinar note ($0.85)

500 dinar note is now either a 1/2 dinar note or a .50 dinar coin (a fifty cent piece basically) ($0.42)

250 dinar note is now either a 1/4 dinar note or a .25 dinar coin (quarter) ($0.21)

50 dinar note is now either a 1/20 dinar note or a .05 dinar coin (nickel) ($0.04)

Now instead of price being based on 50 dinar increments, prices can’t be set at .05 increments

So, if they lop, what happens to the current lower denominations? They are still worth the same as they are now, and you still lop the zeros, 500 is now .500 and the 250 is now .250 and the 50 is now .050 these new lower denominations would have to be introduce as either coins, or paper in denominations of 1/2, 1/4, and 1/20 That seems silly to me and does not make a lot of sense so personally I believe it would have to be coin to do this. However, the usage together during the removal process means that with coin, you would also carry the paper equivalent until all the bills are removed.

The shop owner who is selling the bottle of soda for 1,750 dinar, can now sell it for 1.75 dinar (remember 1.75 x .85 is about $1.50 usd) So, this corrects the problem we had above, in the case of a revalue, so let’s look at that next before we discuss the issues this theory has.

So, they RD'd the currency and now they are going to re-value the exchange rate, we will stick with the simple 1 to 1 math for now, so now 1 Iraqi dinar is worth 1 usd, an increase of simply $0.15 US cents

Now the shop owner simply sells the bottle of soda for 1.50 dinar, pretty easy, and the lower denominations make transactions easier all the way around not to mention the ease of pricing throughout the country. There is whole lesson on the micro economic impact this has on the country, but we are not going to go there.

However, what we do need to look at an issue this theory has and this has a whole slew of issues that I am not going to get into, but I am going to touch on just one that I think matters and is often over looked to understand what else the CBI would have to do in order for the lop to be possible.

First, let’s just go to the opposite end of the currency we were talking about on the low side, because now, after the RD, Iraq’s largest denomination is only 25 dinar.

So, if you want to buy a bigger ticket item, let’s use 1000 dinar, you have to use forty 25 dinar notes to pay for that item.

Without a larger denomination to use, you have to carry a good size bundle of cash to pay for your purchase.

Now, before you start thinking that they have the existing 50, 250 and 500, so why not use them, remember that those have to be lopped too, if a 50, a 250 or a 500 that are all worth less than a 25,000 dinar note were to be used as the larger denominations along with the new lower notes, then they would take on a value much higher than the large denominations, and the numbers are mind boggling to try and post, so I will just say that this is not a possibility in this situation.

HOWEVER, some of you will remember the articles about the introduction by the CBI of a 100,000 dinar note that we had a while back. This would have solved this issue because the 100,000 dinar note would become a 100 dinar note and now your currency is pretty well set from top to bottom

SO, for the lop to happen the CBI has to...

Introduce 4 new lower denomination notes (25, 10, 5, 1) and make the 3 zero notes worth the same as the lower equivalent

Introduce 3 new coins (0, 50, 0.25, and 0.05) or 3 new notes (1/2, 1/4, 1/20) and make the 500, 250 and 50 worth the same as their equivalent

Introduce a new 100 dinar note

Destroy 23 trillion high tech top notch dinars that are less than 10 years old and replace it with 23 billion in new lower denomination dinar, (that just does not make logical sense.)

REMOVE the Zeros, and the lower denoms we want to see

So what is the answer, how does Iraq introduce lower denominations, change the exchange rate, and make us all rich

Well, there is a middle point between the 2 above theories that makes the most sense to me, and I hope is the plan when it comes to the removal of the zeros

This is what the CBI does

Introduce new lower denomination notes and coins as above in addition to the existing notes

RV the exchange rate from .00085 to 1.0

Remove the larger notes from circulation for use in bank to bank and other large transactions leaving the 50, 250, and possibly the 500 as the largest denominations in circulation.

So, the currency will look like this

25,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 25,000 dinar)

10,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 10,000 dinar)

5,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 5,000 dinar)

1,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 1,000 dinar)

500 dinar note (could be removed or left in circulation)

250 dinar note (remains in circulation)

50 dinar note (remains in circulation)

25 dinar note (new lower denomination)

10 dinar note (new lower denomination)

5 dinar note (new lower denomination)

1 dinar note (new lower denomination)

0.50 (Coins just make sense to me, if they are going to RV and introduce new lower denominations, they will need lower than the 1 dinar note)

0.25

0.05

*I used 25, 10, 5, 1, .50, .25, .05 but the denominations that are introduced could be in any denomination they choose unlike the lop where they must stick with a match to the existing currency.

Notice that this covers all the issues I pointed out above with both the Strait up RV and the LOP since you have the lower coinage and smaller bills along with using the current 50, 250, and possibly the 500 as the larger denominations.

They would have to RV in this scenario, with the 50 dinar not already only worth 4 cents, anything introduced lower would not even be worth toilet paper

Now, this is what we hope to see, it would mean a big return for us and has none of the issues I had pointed out above with the lop and the strait up RV.

Read more:

[Shinnidan]

*starts to sing the Lolli-Lop song*

"Lolli-Lop, Lolli-Lop...oh..Lolli...Li-Lolli, Lolli....Lolli-Lop"

[dinarck]

I'm buying if you want off this ride.

We are almost to the end. Why jump now? Like I said. I hope to make money on this deal yet. Double or even triple would be great. Then again that may not even occur but you win some you lose some. What you won't see me doing is throwing tantrums saying I win I win I win no matter what.

[John T]

Thanks for all the helpful information that you all post. Is it too late to still invest in Dinars at this point? I noticed a few of the websites have closed down. Are there any sites where anyone would reccomend for purchasing more dinars?

[dinarck]

That is a great breakdown of it RVDinar4MyFamily. The only thing about the second senerio is that banks would have to give lower denoms for the 000 notes which would add a huge amount of bills to the population and the articles clearly state that they want easier transactions from the RD. I guess it is possible but unlikely in my opinion. Thanks for sharing that breakdown. Think ya nailed it.

[gregp]

" In the longer term, Saleh said a redenomination is needed wherein three zeros will be dropped so that the 25,000 Iraqi-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note."

This leads me to believe that, when they do revalue a 25,ooo dinar note will be worth face value 25,ooo dinar..But after a time limit (In the Longer term) the 000's will be dropped or taken away and it will then be the new 25 dinar note.

I agree with this. Why would they complete the word settlements Pryor to the RV if this wasn't going to be worth anything?

[RVDinar4MyFamily]

That is a great breakdown of it RVDinar4MyFamily. The only thing about the second senerio is that banks would have to give lower denoms for the 000 notes which would add a huge amount of bills to the population and the articles clearly state that they want easier transactions from the RD. I guess it is possible but unlikely in my opinion. Thanks for sharing that breakdown. Think ya nailed it.

That is absolutly correct and I forgot to mention that in the original post. Imagine if you had a 25,000 dinar note and you went in to break it at the bank, even if they were to give you 100 dinar notes you would need 250 of them. Thats alot of notes, if you get change in 25 dinar notes you will need 1000 of them. That is not reducing the cash block size.

[zaborniake]

How many trillion dinar are "in circulation" outside of Iraq?

[Doctor Smith]

If they are going to straight up RV at a buck, why the hell would the goverment tell us they are going to RV. Would't that plainly cause some serious shifts in foreign currency to dinar and crazy investment opportunity. I'm more of the opinion that these articles are talking about a redomination. Whether or not its misinformation to quell speculation remains to be seen. I just hope this ends soon. So tired of the debate. No one knows whats going to happen. But It think its important that every investor here knows every scenario and how it could play out instead of not accepting the LOP talk.

Exactly. If it is true that they announced that the currency is going to be changed or restructured. Which is a big if as I haven't seen any of the videos for myself.

They aren't going to tell you that they are going to straight RV. They're telling us they are going to redenominate but we won't know until they do it one way or the other.

Edited June 25, 2011 by Doctor Smith

[dinarck]

How many trillion dinar are "in circulation" outside of Iraq?

I would guesstimate 10.

[Ironwolf1974]

I think something that alot of people are asking right now is who does Iraq pay for a revalue of there currency when they have something along the lines of 27 trillion dinar in circulation.

Now. Lets say they revalue. Great for us right? But where does this money come from? 27 trillion dinar, is worth billions of dollars.

Well something that comes to mind is that the only poeple rushing to the banks to get there money is, well US.

Most investors will turn in large amounts to pay out, but big countries? Big banks?

Nope. The US will just say ok we have this currency, its this value, give us oil and whatever else you have over the next 20 years.

300 billion barrels of oil over 20 years at 100 dollars per barrell is...yeah alot.

So Iraq can easily pay for a redom.

Just my 2 cents.

[Luigi1]

So ... 1 million dinars becomes 1,000 dinars x the rv rate, if they rv....say x 3.25 = $3,250 less expenses from purchase = profit.

Yes. That is just the opening start or begining of the begining. A 3.3 ID to $1 Dollar exchange rate will become 3 Dollars to 1 ID in a year or two. This will put the ID more in line with the other Middle east currencies. The reason, a one Dinar currency is planned or the entire region. This is only the 1st step towards that aim.

[Doctor Smith]

I think something that alot of people are asking right now is who does Iraq pay for a revalue of there currency when they have something along the lines of 27 trillion dinar in circulation.

Read more: http://dinarvets.com/forums/index.php?/topic/71876-2-articles-last-hour/page__st__100#ixzz1QFM9K2z2

I don't know how accurate this 27 trillion figure is. I have heard that they haven't even printed close to that much Dinar.

[Rome M]

"""""""""""""""'Saleh said there are currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also causes complications for the central bank and government, as well as commercial accounting departments."""""""""""""""""""""""""""""""

Read more:

REALLY?? MOST OF THE 29 TRILLION DINARS IN CIRCULATION ARE IN 'QUITE' SMALL DENOMINATIONS??

WHATEVER, THIS IS BS ALL THE WAY. UNLESS THERE WERE ONLY A HANDFUL OF LARGER DENOMS, THERE IS NO WAY THEY HAVE 29T DINAR IN SMALL DENOMS OUT THERE. THEY BARELY HAVE SMALL DENOMS PEDRIOD, THERE ARE MANY MORE LARGER DENOM SIZES THAN THERE ARE SMALL DENOM SIZES.

Sorry, the caps WAS me yelling, at the article's author. I dont believe any of it.

[Saint Cloud]

1. "Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein's reign."

The above statement seems to imply that as they get "inflation" under control (once out from under UN sanctions, etc.), the value of the dinar will move toward what it was before --- and at any rate go up to something more. Possibly 1 dinar to equal $3.3.

2. Saying the 25,000 bill will become 25 --- if there is an RV to $3.3, even eventually, this implies the 25 will have the buying power of $83,000. Well . . . there is a lot of oil under there . . . even so this boggles the mind.

[RVDinar4MyFamily]

2. Saying the 25,000 bill will become 25 --- if there is an RV to $3.3, even eventually, this implies the 25 will have the buying power of $83,000. Well . . . there is a lot of oil under there . . . even so this boggles the mind.

It would be that the 25,000 note and the 25 note would both have the buying power of $82.50 at the rate of 1 / 3.30

[Ironwolf1974]

It would be that the 25,000 note and the 25 note would both have the buying power of $82.50 at the rate of 1 / 3.30

See what alot of people dont understand is that even if the money redoms, its still going to be worth alot to countries and large banks.

Oil at 100 per barrel, Iraq right now is estimated 250 billion barrells, which will just go up with the new companies there searching.

100 USD x 250 billion, Im no math wizard but thats...ALOT.

My point is, a revalue makes more sense, and they can easily pay for it, but over time.

Guess thats all Im saying.

[zaborniake]

I would guesstimate 10.

OK. Let's say 10T outside of Iraq which are never going to make it back into the country. That leaves 19T in country.

29T in value/6T in banknotes = 4.83 average value

19T/4.83 = 3.9T bank notes in country

Let's assume that the dinar outside of Iraq is cashed in outside of Iraq. We'll use the US for example. The US takes our dinar and gives us dollars. The US then takes our dinar, and whatever amount that they hold in reserve and trades it with Iraq for oil.

Iraq will fund that 10T in dinar with oil for X amount of years depending on the price and volume, and not with cash.

So back to the 3.9T in country. If they have been pulling in dinar for the last several years, we can assume that number is lower. How much lower is up in the air.

So really, Iraq has to pony up post RV for whatever amount is left in country, minus what they've already pulled out.

Thoughts? I suck at math, BTW:P

[bodeen]

Something you said made me think of something.

The articles that are coming out say that three zeros were "added" to circulation when the economy was faltering and inflation was rampant. Adding zeros meant the addition of large notes (25K, 10K, etc) in to circulation.

Now, that being the case, why would anyone interpret "removing" three zeros to mean anything other than the exact opposite of what they meant by adding three zeros? It's the removal of the large notes!

You my friend win the post of the day IMO...... I like it when you get your thinker going!!!!!

[dinarck]

OK. Let's say 10T outside of Iraq which are never going to make it back into the country. That leaves 19T in country.

29T in value/6T in banknotes = 4.83 average value

19T/4.83 = 3.9T bank notes in country

Let's assume that the dinar outside of Iraq is cashed in outside of Iraq. We'll use the US for example. The US takes our dinar and gives us dollars. The US then takes our dinar, and whatever amount that they hold in reserve and trades it with Iraq for oil.

Iraq will fund that 10T in dinar with oil for X amount of years depending on the price and volume, and not with cash.

So back to the 3.9T in country. If they have been pulling in dinar for the last several years, we can assume that number is lower. How much lower is up in the air.

So really, Iraq has to pony up post RV for whatever amount is left in country, minus what they've already pulled out.

Thoughts? I suck at math, BTW:P

Or they can give no oil and RD like they are saying. Don't mean to sound condesinding. Just saying. Guess anything is possible but just going off what CBI is saying.

[Stradergrl]

I'm buying if you want off this ride.

Love it!!!

[Saint Cloud]

RVD4Family, now you have me confused. Help me here.

You say:

"This is what the CBI does . . . RV the exchange rate from .00085 to 1.0

"Remove the larger notes from circulation for use in bank to bank and other large transactions leaving the 50, 250, and possibly the 500 as the largest denominations in circulation. So, the currency will look like this

"25,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 25,000 dinar)."

So . . . If it's still worth 25,000 dinar, and the dinar is RV'd to 1.0 ----- then it's worth 25,000 x 1.0 = 25,000 USD !!!!!!!! Yes ???? Happiness!!!!

Are we together on this?

[RVDinar4MyFamily]

RVD4Family, now you have me confused. Help me here.

You say:

"This is what the CBI does . . . RV the exchange rate from .00085 to 1.0

"Remove the larger notes from circulation for use in bank to bank and other large transactions leaving the 50, 250, and possibly the 500 as the largest denominations in circulation. So, the currency will look like this

"25,000 dinar note (current in use, removed and destroyed over time, or used for bank to bank and large transaction, but still worth 25,000 dinar)."

So . . . If it's still worth 25,000 dinar, and the dinar is RV'd to 1.0 ----- then it's worth 25,000 x 1.0 = 25,000 USD !!!!!!!! Yes ???? Happiness!!!!

Are we together on this?

In that scenario yes, we are on the same page. That scenario is the only one that works for us. There is a third scenario I posted in that same thread, the strait up rv, but I did not post on this thread. That scenario we make big money too. but I dont see it being possible.

[Pagerdr]

Trying to interpret these articles is insane! I can't wait to see how they do this... The LOP is not logical and if they're not at least going 1 for 1, why introduce lowers? I think there is some hard info to interpret here and maybe a bit of propaganda. Bottom line is something is happening, and soon!