Bad News

[teddyruxbin]

Hi everybody,

I am new and got involved investing in dinar 3 weeks ago. My close friend gave me the tip and insisted I should get some dinar, so I did, meanwhile I started researching and reading every post and news, following up all the dinar vets comments, predictions and dreams.... I just want to believe that RV will happen and we will all be millionaire. But it seems like it is too good to be true, if RV happens before RD.

What I see is no one really knows or knowledge enough about how the RD works.

Then I remembered RD happened in my country 5 years ago, and they changed the currency from TL to YTL with the RD.

Here is the info. I will paste it, maybe that will help to understand what will happen to large bill, like our 25K's.

On 1 January 2005 the New Turkish Lira (Yeni Türk Lirası in Turkish or Yeni Turk Lirasi using only English letters) entered the Turkish market and become legal tender.

What happened to the old Turkish lira?

In 2005 the old Turkish Lira was gradually phased out of circulation. December 31 2005 was the last day the old lira was accepted in shops. From 1 January 2006 onwards, any remaining old lira has to be converted at either the Turkish Central Bank or T.C. Ziraat Bank branches.

How much is the New Turkish Lira (YTL) worth?

United States Dollar: USD $1 = 1.51 YTL

Australian Dollar: AUD $1 = 1.34 YTL

Euro: EUR €1 = 2.18 YTL

British Pound: GBP £1 = 2.41 YTL

Swiss Franc: CHF 1 = 1.46 YTL

Canadian Dollar: CAD $1 = 1.44 YTL

Japanese Yen: JPY 100 = 1.65 YTL

*All rates as of 28 December 2009

What do the New Turkish Lira notes (bills) and coins look like?

Please see the New Turkish Lira note (bill) and coin designs.

How is the New Turkish Lira different to the old Turkish lira?

The main difference is the new lira has 6 less zeros. For example: 1,000,000 old liras will convert to 1 new lira. Values less than 1,000,000 old liras will convert to kurus (pronounced 'kurush'). 100 new kurus equals 1 new lira. The symbol for New Turkish Lira is YTL and for New Kurus, YKr. To help with changing between the new and old liras, following is a conversion table:

What denominations does the New Turkish Lira have?

The new lira has notes of 100, 50, 20, 10, 5 and 1 lira and coins of 1 lira, 50, 20, 10, 5 and 1 kurus. Note: there are both notes and coins of 1 lira value.

Why has the Turkish government decided to drop 6 zeros from the lira?

The Turkish government decided on the change for three main reasons:

a) Practical: Dealing with tens, hundreds, thousands and millions is far easier and manageable than dealing with millions, billions, trillions and quadrillions. The only people not happy with the change were the calculator manufacturers!

Technical: The multiple digits caused problems with accounting, data processing and statistical software designed for smaller currencies. Petrol station signs also could not display all the digits for the fuel prices.

c) Psychological: Modern Turkey has had a history of hyperinflation. Rare has a year past when the inflation rate was less than 30%(!). In the last 30 years the lira has devalued from 14 to 1,500,000 for USD $1. At one stage a few years ago, the lira was over 1,800,000 to USD $1. The hyperinflation has gone and inflation is currently below 10%.

Removing the zeros will help wipe away the past and hopefully, start a new era of economic confidence in Turkey; a new era when people don't expect price rises every few months, businesses don't automatically lift their prices each quarter and new, higher denomination notes are not issued every 2 years.

The rise in the value of the lira versus the USD is detailed below:

Wasn't having both the old and new lira in circulation at the same time confusing?

Yes, the dual currency systems was confusing. Dealing with so many zeros on the old lira was bad enough, particularly for new visitors to Turkey. The new notes and coins only added to the bewilderment in 2005. It is best to memorise different the notes and coins as soon as possible, ideally, before one even enters Turkey. Also see other money tips for Turkey.

For 2005, it was compulsory for all shops to have prices at both old and new rates to help reduce the confusion a little.

Did businesses take advantage of the change in currency to increase prices, as what happened in the Euro Zone countries?

Although it was possible, such cheating happen on a wide scale. The new lira rate is simply 1/millionth or 6 zeros less than the old lira, whereas the Euro countries had complex exchange rate conversions. In the Euro zone It was easy for businesses to increase prices without consumers noticing. Having 1 year of dual-pricing in Turkey also helped. The Euro countries had far less time to adjust to the new Euro currency before their old currencies were withdrawn.

Yes..but if they LOP the Dinar 'gradually' like they did your currency there is still nothing to worry about.Not unless you let greed persuade you to wait too long, hoping for the rate to go up further.

Personally I'm taking no chances.When it RV's I'll cash in fairly quickly.I'd rather get a hundred thousand dollar profit than wait for a three hundred thousand one that may never come.

[DeadGuy]

I'm with you brother!

Anything over a DIME and I'm counting cash.....hahahahahaa

buds

[cautiouslyhopeful]

Your not reading it wrong bud....if the parliment approves this plan, thats what will happen and the only thing we can do is hope the value goes up quickly after so that we can still make a decent profit....

I agree, if this is to be...I will hang on to my dinar until it is where I need you to be to cash in. Its an investment, not the lottery.

[brookie]

I read that news clip if it's not a smoke screen there is no explaining it away!

Take a deep breath a wait for the drop!

[MPG350]

Someone help me understand how they can LOP 3 zeros without upsetting their entire economy. Foreign investors are going to pull out in droves. Additionally. what if I open a Warka Bank account and deposit $1,000,000.00 Dinar? Can they just delete zeros from my bank account? This makes no sense.

Because if 1,000,000 dinars = approx $1,000

and 1,000 dinars = approx $1,000 you didn't lose any money and the dinar gained strength

Not saying that will happen though

Edited June 24, 2011 by MPG350

[rapidrex]

I hate lopsters...they make me crabby.

[tandy]

Looks like the best solution to this drama....is patience..... Do your due diligence and research the banking system of the world. You will gain new and valuable insight. Some of the most reliable info (some!) can be gleaned on the web..at least for now. Time to turn off the idiot tube and quit believing everything the media churns out from their propaganda machines. There are a few posters on these forums who deserve respect for their unselfish research and contribution...there are a few others that need an attitude adjusting kick in the butt...(please don't kick me too hard cause I probably deserve it too) cheers and blessings friends...maybe this rough ride is about to take on an air ride suspension. We need musturd seed faith right now!! Oops I meant mustard seed.

[bugsbomb]

OMG , Some of you people make me want to kick babies!!!! ITS JUST GOING TO RD. No, special people will get special treatment. NO "OPARAH'S of the world will get a Private RV (ONE JUST FOR THEM). THIS SUCKS I KNOW BUT QUIT GRABBING AT BS. Face it, we got screwed

Folks, this is an investment and considered by almost everyone to be a very high risk investment. I stand fast with resolve that it might RV at some point, but if it doesn't and RD's at 1/1000 value, that's what I basically paid for the notes, so I would get my money back. Getting your money back on such a very high risk investment is not "getting screwed".

[All-In-4-RV]

I DONT BELIEVE ITS SMOKE... ITS RIGHT THERE IN BLACK AND WHITE BUT IT DOES SAY OVER A LONGER TERM SO THERE MAY STILL BE SOME HOPE. OUR BEST HOPE IS FOR A LOW RV AND A CASH IN PERIOD...

SINCE WHEN DID

THE IRAQ NEWS, ALTHOUGH IN BLACK AND WHITE, MEAN THE TRUTH??? THEY PRINT CRAP ALL THE TIME THAT ISN'T TRUE. IT'S A GAME FOR THEM. Relax, you'll see, this will have a grand ending.

[Stradergrl]

Ok Easy, The writing is on the wall, If you cant see it then thats your bad. IT IS STILL WHAT THEY ARE GOING TO DO! ok, I am done here. I just want EVERYONE to remember who has been saying what... Easy say "NO LOP ,NO WAY" I say that it will RD or (LOP) Lets see what the end brings...

You may be right. Who knows. But 99% of us on here are hoping that you don't get your way. Because it's pretty obvious that you, dinark, taboo, and a few others WANT an RD.

[TFK]

I hate lopsters...they make me crabby.

Thanks for the great quote!!!

You've made my day. You should use that in your signature. If you don't I will!!!

[Midx1]

Hi everybody,

I am new and got involved investing in dinar 3 weeks ago. My close friend gave me the tip and insisted I should get some dinar, so I did, meanwhile I started researching and reading every post and news, following up all the dinar vets comments, predictions and dreams.... I just want to believe that RV will happen and we will all be millionaire. But it seems like it is too good to be true, if RV happens before RD.

What I see is no one really knows or knowledge enough about how the RD works.

Then I remembered RD happened in my country 5 years ago, and they changed the currency from TL to YTL with the RD.

Here is the info. I will paste it, maybe that will help to understand what will happen to large bill, like our 25K's.

On 1 January 2005 the New Turkish Lira (Yeni Türk Lirası in Turkish or Yeni Turk Lirasi using only English letters) entered the Turkish market and become legal tender.

What happened to the old Turkish lira?

In 2005 the old Turkish Lira was gradually phased out of circulation. December 31 2005 was the last day the old lira was accepted in shops. From 1 January 2006 onwards, any remaining old lira has to be converted at either the Turkish Central Bank or T.C. Ziraat Bank branches.

How much is the New Turkish Lira (YTL) worth?

United States Dollar: USD $1 = 1.51 YTL

Australian Dollar: AUD $1 = 1.34 YTL

Euro: EUR €1 = 2.18 YTL

British Pound: GBP £1 = 2.41 YTL

Swiss Franc: CHF 1 = 1.46 YTL

Canadian Dollar: CAD $1 = 1.44 YTL

Japanese Yen: JPY 100 = 1.65 YTL

*All rates as of 28 December 2009

What do the New Turkish Lira notes (bills) and coins look like?

Please see the New Turkish Lira note (bill) and coin designs.

How is the New Turkish Lira different to the old Turkish lira?

The main difference is the new lira has 6 less zeros. For example: 1,000,000 old liras will convert to 1 new lira. Values less than 1,000,000 old liras will convert to kurus (pronounced 'kurush'). 100 new kurus equals 1 new lira. The symbol for New Turkish Lira is YTL and for New Kurus, YKr. To help with changing between the new and old liras, following is a conversion table:

What denominations does the New Turkish Lira have?

The new lira has notes of 100, 50, 20, 10, 5 and 1 lira and coins of 1 lira, 50, 20, 10, 5 and 1 kurus. Note: there are both notes and coins of 1 lira value.

Why has the Turkish government decided to drop 6 zeros from the lira?

The Turkish government decided on the change for three main reasons:

a) Practical: Dealing with tens, hundreds, thousands and millions is far easier and manageable than dealing with millions, billions, trillions and quadrillions. The only people not happy with the change were the calculator manufacturers!

Technical: The multiple digits caused problems with accounting, data processing and statistical software designed for smaller currencies. Petrol station signs also could not display all the digits for the fuel prices.

c) Psychological: Modern Turkey has had a history of hyperinflation. Rare has a year past when the inflation rate was less than 30%(!). In the last 30 years the lira has devalued from 14 to 1,500,000 for USD $1. At one stage a few years ago, the lira was over 1,800,000 to USD $1. The hyperinflation has gone and inflation is currently below 10%.

Removing the zeros will help wipe away the past and hopefully, start a new era of economic confidence in Turkey; a new era when people don't expect price rises every few months, businesses don't automatically lift their prices each quarter and new, higher denomination notes are not issued every 2 years.

The rise in the value of the lira versus the USD is detailed below:

Wasn't having both the old and new lira in circulation at the same time confusing?

Yes, the dual currency systems was confusing. Dealing with so many zeros on the old lira was bad enough, particularly for new visitors to Turkey. The new notes and coins only added to the bewilderment in 2005. It is best to memorise different the notes and coins as soon as possible, ideally, before one even enters Turkey. Also see other money tips for Turkey.

For 2005, it was compulsory for all shops to have prices at both old and new rates to help reduce the confusion a little.

Did businesses take advantage of the change in currency to increase prices, as what happened in the Euro Zone countries?

Although it was possible, such cheating happen on a wide scale. The new lira rate is simply 1/millionth or 6 zeros less than the old lira, whereas the Euro countries had complex exchange rate conversions. In the Euro zone It was easy for businesses to increase prices without consumers noticing. Having 1 year of dual-pricing in Turkey also helped. The Euro countries had far less time to adjust to the new Euro currency before their old currencies were withdrawn.

I agree with your post as I was living in Turkey during this time.

There was no money to be made on this.

I did make a little money by having a Turkish Lira/USD account by exchanging money between the 2 as it benefited since rates changed dramatically from month to month.

But that was years ago, seems things are stable there now since the currency change.

Lets hope that Iraq is not trying to do the same thing as we will see little gain by them doing it this way.