Here you go Keepm-In my Efforts to keep Balanced

[wishwell11]

In efforts to remain grounded/balanced I keep searching. I have read alot on the subject but often too dry or not easily interpreted. I stumbled on this Very Easy to Read and Understand on layman Frequently Asked Questions regarding how 2 currencies will co-exist. While I hope for the best a straight up RV...I did recognize alot of the verbaige we see today. So just for those wanting to reference see below, then burn it if you'd like as I'm certainly not pleased with the simplicity of it all but is food for thought.

Highlights below.

Wishwell11

http://www.cenbank.org/redenomination/newpolicy.asp

FAQ's On The New Naira Policy

Especially the Naira Re-denomination

The new ‘Strategic Agenda for the Naira’ announced by the Central Bank of Nigeria on August 14, 2007 is generating a healthy national debate. Before we undertake a nation-wide enlightenment programme, (beginning September 2007) to educate the public on the new policy, it is important to clarify some of the issues/questions that are emerging.

The CBN announced a 4- point agenda designed to make the Naira the “Reference Currency in Africa”, as part of the Financial System Strategy 2020 (FSS2020) and the elements of the agenda are:

Currency Re-Denomination

Adoption of Inflation-Targeting Framework for the conduct of monetary policy

Sharing part of the Federation Account funds in US Dollars to Deepen the Forex Market and for Liquidity Management

Current Account liberalization/convertibility and accession to Article VIII of the IMF

Needless to emphasize that to appreciate the full impact of the new policy on the Naira/national economy, we need to take the 4-point agenda as a package. As a package, the new agenda will:

better anchor inflation expectations,

strengthen public confidence in the Naira,

make for easier conversion to other major currencies,

reverse tendency for currency substitution,

eliminate higher denomination notes with lower purchasing power,

reduce the cost of production, distribution and processing of currency,

promote the usage of coins and thus a more efficient pricing and payments system,

promote the availability of cleaner notes,

deepen the Forex market,

ensure more effective liquidity management and monetary policy,

convertibility of the Naira and hence greater confidence in the national economy and lead to greater inflow of foreign investment

position the Naira to become the ‘Reference currency’ in Africa.

However, most of the questions so far pertain to only one aspect of the agenda i.e. Currency Re-denomination. We have monitored the reactions so far, and note that the concerns/questions raised so far are similar to the ones raised in all the countries that have undertaken re-denomination, including Ghana that is still implementing it now. We clarify some of the concerns as follows:

What is currency redenomination?

Currency redenomination is the process where a new unit of money replaces the old unit with a certain ratio. It is achieved by removing zeros from a currency or moving some decimal points to the left, with the aim of correcting perceived misalignment in the currency and pricing structure, and enhancing the credibility of the local currency.

How will the Naira be redenominated?[/b]

It is by dropping two zeros from the currency or moving two decimal places to the left. The name of the national currency will still be the Naira. However, during the transition period, the existing Naira will be referred to as the “Old Naira”, and the new one to be called the “New Naira”. After the transition period, the word “New” may be dropped. For example, the following equivalents will obtain as we re-denominate:

Old Naira

(i.e, Existing Naira as at today) New Naira

(as from August 1, 2008)

50 kobo Half kobo**

N 1 1 kobo coin

N 2 2 kobo coin

N 5 5 kobo coin

N 10 10 kobo coin

N 20 20 kobo coin

N 50 50 kobo coin or note***

N 100 N 1 note

N 200 N 2 note**

N 500 N 5 note

N 1000 N 10 note

N 2000* N 20 note

* Not issued

** Will not be issued

*** Some commentators have come up with a suggestion that we should keep all the Kobo in coins and all the Naira in Notes. We will consider the suggestion.

Is the redenomination policy a re-valuation

or resort to a fixed exchange rate regime?

No. Redenomination is not the same as revaluation. A revaluation entails an official adjustment of the exchange value of a country’s currency (usually an upward change in value) relative to other currencies by fiat under a fixed exchange rate regime. CBN will continue to maintain a market determined exchange rate regime. In his August 14, 2007, speech the CBN Governor used N1.25 to US$1 as an illustrative figure. It does not mean that the exchange rate will be fixed at that figure. The exchange rate may appreciate or depreciate depending on market forces.

Is the Currency redenomination

the same as currency decimalization?

No. In the management of currencies, decimalization is the process of converting from traditional denominations to a “decimal” system, usually with two units differing by a factor of 100.[/b] For example, Nigeria adopted the decimal system on 1st January 1973, changing from Pound, Shillings and Pence to Naira and Kobo. We also changed our system of weights and measures into the decimal system (i.e. from Ounce and Pounds to grams kilograms; or miles to kilometres; Inches and Feet to centimetres and Metres). More specifically, the CBN Act (Section 15) prescribes a decimal system by stating that “The unit of currency in Nigeria shall be the Naira which shall be divided into one hundred kobo”. The currency is already structured in decimal system. The policy thrust is a re-denomination. The fact that we are removing two zeroes does not make it a ‘decimalization policy’. It could have been one, two, or three zeros.

When will the re-denomination take effect?

August 1, 2008. There will be a ‘transition period’ of five months (August 1 – December 31, 2008) during which both the ‘old Naira’ and ‘new Naira’ will be legal tender. During the period, prices, salaries, etc can be quoted in both the new and the old Naira. Thus, the current Naira will still be legal tender until December 31, 2008.

After December 31, 2008, the ‘old Naira’ will cease to be legal tender, but can still be exchanged at the commercial banks.

]How will it work?

The ‘new Naira’ coins and notes will be different from the existing ones i.e. in design, appearance, security features, etc.

All Naira assets and liabilities (including bank deposits), prices, fees, rents, and contracts (including salaries and

wages) will be re-denominated by dropping two zeroes or moving two decimal points to the left.

During the ‘transition period’ prices will be quoted in both the ‘new Naira’ and the ‘Old Naira’ and everyone will choose whether to pay in the new or old Naira. These five months will be allowed so that everyone will get familiar with the conversion, and it will become self-evident to everyone why he/she would prefer to transact in the ‘new Naira’ rather than the ‘old Naira’.

For example, if a bag of garri sells for N2,000 (old Naira), the price in ‘new Naira’ will automatically be N20. The customer will choose to pay either N2000 in old Naira or N20 in the ‘new Naira’.

In the supermarkets and formal markets, prices will be displayed in both ‘old’ and ‘new’ Naira. In the informal markets where prices are negotiated, the negotiation could be done in the ‘old Naira’ as usual and converted into the ‘new Naira’ if the customer wishes to pay with the ‘new Naira’. This will ensure that prices do not rise due to rounding-up.

The five months are also needed for everyone (formal and informal sectors) to become fully familiar with the conversion. It will become obvious to everyone that N50,000 of the ‘old Naira’ has the same purchasing power as N500 of the ‘new Naira’.

The question then would be: why carry N50,000 of old Naira when N500 of the new Naira will buy you the same thing? Consequently, if you have N50,000 in your bank account, it will automatically become N500 in the ‘new Naira’ i.e. if you want to withdraw in the ‘new Naira’ or you can still withdraw N50,000 in ‘old Naira’ during the transition period (August- December 2008).

Similarly, someone whose monthly salary is N50,000 can choose (during the transition period) whether to withdraw and spend the N50,000 in ‘old Naira’ or N500 in the ‘new Naira’. Both would buy him/her the same value of goods and services.

Examples of price equivalents in the new and old Naira could be:

Commodity/Service Price in “Old Naira” Price in “New Naira”

Fuel price per litre N70 70 kobo

Price of one bag of garri N2,000 N20

Price of a bus drop N20 20 kobo

House rent (e.g. a flat in some parts of Nigeria) N5000 per month N50 per month

Stock price of a company Assume it is, say:

N20 or N80

20 kobo or 80 kobo

Airline ticket for domestic flight N12,500 N125

Exchange rate: N to US$ Assume it is say:

N125

Or N130

Or N100 to US$1.

N1.25 = US$1

Or N1.30 = US$1

Or N1 = US$1

Therefore, nobody will lose any value in terms of his or her money.

What are the Benefits of the Re-denomination?

The medium and long-term benefits can only be appreciated when redenomination is seen in the context of the other three policy initiatives. The specific benefits of re-denomination include:

Making pricing more efficient. Given the level of prices and low purchasing power of the coins, prices generally adjust in discrete jumps of five or ten Naira, rather than in Kobo. Under the new regime, one kobo will have relative value. We can see the price of fuel go up from say, 70kobo to say, 71 or 72 kobo instead of the current jumps of N65 to N70 to N75, etc. Correcting this distortion in pricing structure can have enormous impact on the national economy, especially as we commit to low inflation.

cultivating the habit of using coins and reinforcing the on-going currency reforms.

Promoting a more efficient payments system e.g. making ATMs part of our payment culture and de-congesting banking halls. Instead of withdrawing N50,000 from an ATM machine, N500 of the ‘new Naira’ will command exactly the same value.

As we aspire for an international financial status and to become Africa’s financial hub by 2020, re-denomination will make for easy conversion to other currencies. As a ‘Reference Currency’, it will be easy for citizens of West Africa and other countries to convert to their national currencies and other currencies

Reducing the risks associated with carrying large physical cash as we eliminate large denominations with very little value

Discouraging currency substitution and addressing the perception that the domestic currency is weak despite its stability.

Reducing the cost of printing, distribution and processing of currency

Discouraging the abuse of the Naira as each Naira note under the ‘new Naira’ will have relatively high value, and coins will dominate transactions at the lower end of the market.

Will the new Naira Policy or the re-denomination solve all of Nigeria’s economic problems?

No. The new policy (as a package of 4-point agenda) will only deliver the things outlined at the beginning of this Note. Mr. President has outlined a 7- point agenda needed to create wealth and jobs, reduce poverty, and ensure security of lives and property. The new Naira policy will help to create the macroeconomic stability, efficient payments system and confidence, which constitute an important building block to enable Mr. President’s programme work well. All stakeholders in the Nigerian economy--- public and private sector institutions and individuals--- will have to do their respective parts under the able leadership of Mr. President for the Nigerian economy to boom and endure.

Does the CBN have adequate plans to enlighten/educate Nigerians, especially the villages/rural areas about the change?

Yes. This is why we have announced the policy one year in advance. Specifically: o We have designed a mass education/enlightenment programme. The programme will be translated into several of Nigerian languages. o We plan to collaborate with mass organizations including labour unions, religious organizations, NGOs and Civil Society organizations, schools, professional organizations and trade unions, market associations, transport unions, organized mass mobilization agencies such as the National Orientation Agency, state and local governments, military/paramilitary organizations, council of traditional rulers, the mass media, etc to reach and educate every Nigerian on the change. o We shall embark on two phases of enlightenment programme: first (September – December 2007--- a general nation-wide enlightenment on what the policy is all about; second (February- July 2008)—nation-wide education on the operations of the programme, especially on pricing/conversion from old to the new Naira.

What will be the level of involvement of other agencies/organizations in the implementation of the policies?

The support and involvement of everyone will be needed. • More specifically, we will set up a Steering Committee and an Advisory Technical Committee to drive the process. The goal is to ensure that there will be no unintended effects, and to minimize the adjustment costs (if any) of the exercise.

[ Is it true that currency re-denomination is usually done under conditions of hyper-inflation?

Not necessarily. Indeed, countries that did it under such circumstances without complementary reforms ended up re-doing it again and again. • Re-denomination is most successful when a country has achieved a measure of price stability and restored confidence in the national currency. It then proceeds to remove the ‘zeroes of shame’ to get the currency properly aligned. This is the condition now in Nigeria.

Which other countries like Nigeria have successfully undertaken such reforms?

Country Year

1.

Ghana 2007

2. Croatia 1994

3. Finland 1963

4. Poland 1995

5. Uganda 1987

Several other countries have undertaken currency re-denomination including Israel, Turkey, Germany, South Korea, China, Brazil, etc.

Nigeria is not imitating any country. We are re-denominating because the fundamentals of our currency structure require the new direction. We would also implement it in a way that takes our peculiarities into account. • We have learnt from the experiences of those who did it before us and would strive to make ours the most successful (just as we did with the banking sector reforms).

New lower denomination currency notes

and coins have just been launched into circulation.

Why currency redenomination at this time?

The CBN has proceeded with reforms in measured steps. The first was to re-build the basic financial infrastructure that would facilitate effective implementation of monetary policy and improved payments system (ie, reforms of the banking system). It was followed by gradual liberalization of the Forex market. The third is the currency reforms which are proceeding in two stages: first, re-design of the lower denominations, re-introduction of coins, and experimentation with the polymer substrate. Typically, countries re-design their currencies after 6- 8 years but our lower denominations were re-designed about 23 years ago (1984). The essence was to streamline the security features to combat counterfeiting and safeguard the integrity of the currency, as well as achieve cost savings. We have learnt a lot from these reforms, including the fact that the effective cost of printing currency notes and minting coins has been reduced by an average of about 50 percent.

Currency re-denomination and deeper currency reforms are most successful under conditions of price stability and confidence in the currency/economy. Single-digit inflation has only been sustained for a year now. The convergence of the official and bureaux de change exchange rates have only recently been achieved. These are some of the pre-conditions we needed before deeper reforms.

With the demonstrated commitment of President Umaru Yar’Adua (GCFR) to maintaining macroeconomic stability and deepening the institutional and structural reforms, the time has become auspicious to take currency reforms to the next higher level. Aside from the fact that the economic fundamentals (as the CBN Governor listed in his speech) support deepening the reforms, the most important driver of the new focus is the President’s commitment to macroeconomic stability/reforms. The new Naira Policy is thus part of the larger agenda to achieve Mr. President’s vision of economic prosperity.

Furthermore, the new policy is part of the Financial System Strategy 2020 (FSS2020) designed to make Nigeria an international financial centre and the hub of the Africa’s financial system by the year 2020.

Will currency redenomination

not entail enormous costs?

No. The new policy will not translate to high costs. Indeed, it will lead to much lower costs of printing, processing and management of currency over time. The following points are illustrative. First, most countries typically stock-pile 2-3 years of buffer stock of currency and when they embark upon currency re-design or re-denomination, such buffer stock is lost. In our case, we have no buffer stock. The ‘old Naira’ notes to be used in 2008 are just the ones currently under printing/minting. The life span of these notes is short, and there will be no waste. No new order will be placed for printing the ‘old Naira’ in 2008. Second, even without re-denomination, CBN would typically still incur costs in printing/minting the currency. Third, because the new currency structure will be dominated by coins (which last an average of 10 - 20 years) compared with currency notes which last a few months, the total cost of currency issuance and management will drastically be reduced over time. On cost considerations alone, the new policy is a winner.

Will the redenomination policy undermine

the proposed ECOWAS common currency?

No. It is consistent with the proposed ECOWAS common currency and Nigeria is committed to the sub-regional goal. Ghana has just embarked upon a re-denomination exercise (by dropping four zeroes) and it is also part of the common currency agenda. Our policy agenda will provide leadership in the process of monetary integration.

Read more the New Naira Policy Debate

See frequently Asked Questions on the New Naira Policy

[keepmwlknfny]

LOL....I know we had the discussion on brownies but now you see what I was talking about how you will still get your brownies "worth" it just might be in a different package?? LOL

[Dalite]

Good Post.

Answers the Questions and disposes of the myths.

It isn't too kind to the " forum facts" that many have relied on for their logic.

However, it is what it is...

[Poseidon]

Iraq going to RD (LOP) and the rich get richer while we the peon gets a little scrap from the table.

[dinar-racer]

Plus 1 for showing them that the wind does blow in more than one direction.Thank's for your efforts.

[wishwell11]

LOL....I know we had the discussion on brownies but now you see what I was talking about how you will still get your brownies "worth" it just might be in a different package?? LOL

GRRR yes..but I shall never shop at that bakery again and will tell others not to. I just wonder where the Bakery leaders are? S

Who monitor EVERYTHING we do but when we ask for assistance...there is no feedback and Continue to allow their people, in massive numbers to be solicited to buy a dozen brownies from this store (country) and also allowing advertising of potential multiple dozens...knowing that its not really a dozen (dinar) but value /price. Not addressing this AT ALL is highly suspicious and should not go down without noise.

Wishwell11>>>STILL Demanding an exchange of a dozen brownies (dinar) for a DOZEN 12 not weight 12.

love ya Keepm

[easyrider]

Iraq going to RD (LOP) and the rich get richer while we the peon gets a little scrap from the table.

better sell bro i mean you dont want to keep putting yourself through this misery do you? If i were you i would still get out while i can.

[keepmwlknfny]

GRRR yes..but I shall never shop at that bakery again and will tell others not to. I just wonder where the Bakery leaders are? S

Who monitor EVERYTHING we do but when we ask for assistance...there is no feedback and Continue to allow their people, in massive numbers to be solicited to buy a dozen brownies from this store (country) and also allowing advertising of potential multiple dozens...knowing that its not really a dozen (dinar) but value /price. Not addressing this AT ALL is highly suspicious and should not go down without noise.

Wishwell11>>>STILL Demanding an exchange of a dozen brownies (dinar) for a DOZEN 12 not weight 12.

love ya Keepm

Hahaha believe me, I want mine exchanged for exactly what I have as well!!! Love you too!!!

[wishwell11]

Good Post.

Answers the Questions and disposes of the myths.

It isn't too kind to the " forum facts" that many have relied on for their logic.

However, it is what it is...

Thanks Dalite..What I also found interesting was timing and announcements...so while I too have anticipated/expecting new info to flow soon. I find myself going from Excitement to slamming into the opposite end of the spectrum to Disappointment. Will the announcement be the beginning of the 4 point process?

Everything will balance out in the end but life has enough ups and downs as it is...BUT to welcome this with open arms ....:angry:.:lol::lol:

Wishwell11

GO RV

[Dalite]

Thanks Dalite..What I also found interesting was timing and announcements...so while I too have anticipated/expecting new info to flow soon. I find myself going from Excitement to slamming into the opposite end of the spectrum to Disappointment. Will the announcement be the beginning of the 4 point process?

Everything will balance out in the end but life has enough ups and downs as it is...BUT to welcome this with open arms ....:angry:.:lol::lol:

Wishwell11

GO RV

If we do see a RD, it will be a long term process, and the public education phase must take as long as necessary to acclimate the citizens.

Sometimes I think the "Raise 3 Zeros" we kept seeing in print merely referenced the plan, not the physical execution.

I still remain optimistic. There is still plenty of room for far better than average gains...

[dinarck]

Classic example of a redenomination and scary similar to what we are being told is going on in Iraq. Good find Wishwell11. Right here when they say...........There will be a ‘transition period’ of five months (August 1 – December 31, 2008) during which both the ‘old Naira’ and ‘new Naira’ will be legal tender. During the period, prices, salaries, etc can be quoted in both the new and the old Naira. Thus, the current Naira will still be legal tender until December 31, 2008.

After December 31, 2008, the ‘old Naira’ will cease to be legal tender, but can still be exchanged at the commercial banks........is excacly what we are hearing about the long term or gradual removal and process. I think if english was the predominate language in the ME we would be getting articles that sound almost the same as this one. This should be required reading for all gurus as well as their followers. At least maybe then we would hear "OK it looks like a possible RD so nobody go and buy more dinar until we know for sure" instead of "they are removing the 000 notes from circulation and will exchange your 000 notes for lower denoms."

[Poseidon]

better sell bro i mean you dont want to keep putting yourself through this misery do you? If i were you i would still get out while i can.

I have to ride it out and hope to break even

[pro1]

Does anyone have any idea how we in the world outside of Iraq going to exchange our Dinars before they become worthless and if they dont RV by that date? anyone?

[in4thelonghaul]

I have to ride it out and hope to break even

Good point.. If you can't ride it out without maybe breaking even, or even somewhat of a loss....GET OUT! All the Negetive posts her are really getting a little old. I would be a liar if I said I did not want to see a cash in this week, but how many times have I read here that this is a " long term " investment . Ride the ride, or jump off..this not the ride for the the one who barfs on a rollar coaster!

[eddiemac]

What did Nigeria have as far as the future growth? I would have to say no where close to what Iraq has in thier oil fields.

[wishwell11]

Good point.. If you can't ride it out without maybe breaking even, or even somewhat of a loss....GET OUT! All the Negetive posts her are really getting a little old. I would be a liar if I said I did not want to see a cash in this week, but how many times have I read here that this is a " long term " investment . Ride the ride, or jump off..this not the ride for the the one who barfs on a rollar coaster!

Your name would insinuate that you understand that it is ALL part of the ride.

You're right!! On this ride..Some get sleepy..some get sick..and some find it boring. Some HONESTLY love the thrill and smile along the way.. while some worry to the point of exasperation so an unhealthy intolerance sets in. Some even play the part of Carney believing they can step in the fair and attempt to control the paying riders.

Keepm/Dalite +1 +1+1+1+1+1+1+1+1 (an endless loop +1 to replace the ones that were erased.)

Wishing you Well

Edited June 28, 2011 by wishwell11

[wishwell11]

Does anyone have any idea how we in the world outside of Iraq going to exchange our Dinars before they become worthless and if they dont RV by that date? anyone?

Currency dealers now but right now you would take a loss .. and once dinar is internationally recognized and rate raises...the larger banks such as Chase/BOA/Wells Fargo and others would as well and you may break even, profit some or alot!! Worse case scenario IMO, it wouldn't be a long wait for a loss to be out of the picture.

Wishwell11

[wishwell11]

For the sake of "Speculation" purposes only and doing due dilligence,

If this does not do a straight up RV like we hope for and Iraq proceeds like the above RD scenarios as they lead us to believe, and proceed doing a multi-point RD (explained above) then a RV in country on rebased dinar (25,000=25k). The currency may still only be applicable to Iraq until banking, GOI and all is complete. This could take years before their agenda is complete and is internationally recognized beyond exchanging min amounts for travel purposes as it is now....or maybe it would be recognized internationally soon for a small profit.

Would it not also explain why there is alot of silence online but more dinar activity sites. Gurus fading or moving to new pending agendas, Dinar sellers now receiving confirmation of anticipated RD and positioning to move to the next stage/level of marketing. Implementing a new opportunity or options to dinar holders. This, to minimize or eliminate a loss from a small return.....or if still not internationally recognized with the next phase of currency restructure ..market something that will pull out and use our dinars to a business venture in Iraq. Is this why some sites tell us we will be invited to an opportunity after this next move?

There are many dinar related sites starting up, spin offs of same groups, and still original sites selling dinar. new sites have to be created to accomplish both...dinar sales and another for investment options. There is more News of alot of new exciting opportunities which seems funny anticipating a straight up EXCHANGABLE RV any moment.

You can speculate ..to get our large profits from a straight RV...or get dinars for our US unrecognized currency....make us consider using our dinars instead of cashing in for small profits.

Interesting to consider the current trends of information or lack of..

Why not sell those USA dinar holders a way to invest their dinars in a company interest in Iraq where the money is legal to use and/or not eat up a limited profit by exchanges if it DOES immediately get recognized internationally?

Good Grief this "currency" investment could pop, drag on or morph to a different type of investment all together.

Good Luck to Us, which ever direction the wind may blow!

Wishwell11

GO RV>>>GO SOMETHING!

Edited June 29, 2011 by wishwell11

[BlueJeanBaby]

Iraq going to RD (LOP) and the rich get richer while we the peon gets a little scrap from the table.

If it's a straight RD, then no one gets any richer, because the VALUE of the currency DOES NOT CHANGE.

[wishwell11]

If it's a straight RD, then no one gets any richer, because the VALUE of the currency DOES NOT CHANGE.

Read the above it isn't unusual to RV soon after the RD. So there is potential for a small profit from the origninal purchase and thus increased value internationally be recognized as well.

If this theory came to fruition, the investment competition would be fierce as well as anticipated misinformation from all angles. I find it very interesting.

Wishwell11

[BlueJeanBaby]

For the sake of "Speculation" purposes only and doing due dilligence,

If this does not do a straight up RV like we hope for and Iraq proceeds like the above RD scenarios as they lead us to believe, and proceed doing a multi-point RD (explained above) then a RV in country on rebased dinar (25,000=25k). The currency may still only be applicable to Iraq until banking, GOI and all is complete. This could take years before their agenda is complete and is internationally recognized beyond exchanging min amounts for travel purposes as it is now....or maybe it would be recognized internationally soon for a small profit.

Would it not also explain why there is alot of silence online but more dinar activity sites. Gurus fading or moving to new pending agendas, Dinar sellers now receiving confirmation of anticipated RD and positioning to move to the next stage/level of marketing. Implementing a new opportunity or options to dinar holders. This, to minimize or eliminate a loss from a small return.....or if still not internationally recognized with the next phase of currency restructure ..market something that will pull out and use our dinars to a business venture in Iraq. Is this why some sites tell us we will be invited to an opportunity after this next move?

There are many dinar related sites starting up, spin offs of same groups, and still original sites selling dinar. new sites have to be created to accomplish both...dinar sales and another for investment options. There is more News of alot of new exciting opportunities which seems funny anticipating a straight up EXCHANGABLE RV any moment.

You can speculate ..to get our large profits from a straight RV...or get dinars for our US unrecognized currency....make us consider using our dinars instead of cashing in for small profits.

Interesting to consider the current trends of information or lack of..

Why not sell those USA dinar holders a way to invest their dinars in a company interest in Iraq where the money is legal to use and/or not eat up a limited profit by exchanges if it DOES immediately get recognized internationally?

Good Grief this "currency" investment could pop, drag on or morph to a different type of investment all together.

Good Luck to Us, which ever direction the wind may blow!

Wishwell11

GO RV>>>GO SOMETHING!

They can't do a revalue solely in country. If they revalue the dinar in any significant way other than the pennies in either direction we've observed on CBI's site, then it changes everywhere. It can't be worth X inside of Iraq, but worth Z everywhere else - not if the IQD makes it to FOREX as a viable currency for trade, and if they want to be a full member of the WTO.

If they RV, it won't be just in country.

GO RV !!!

[easyrider]

They can't do a revalue solely in country. If they revalue the dinar in any significant way other than the pennies in either direction we've observed on CBI's site, then it changes everywhere. It can't be worth X inside of Iraq, but worth Z everywhere else - not if the IQD makes it to FOREX as a viable currency for trade, and if they want to be a full member of the WTO.

If they RV, it won't be just in country.

GO RV !!!

you are correct if they want the Dinar to go internatinal for the first time which im sure they do to be traded all over then they cannot just RV in country it has to have value all around the world.

[wishwell11]

you are correct if they want the Dinar to go internatinal for the first time which im sure they do to be traded all over then they cannot just RV in country it has to have value all around the world.

Yes you're Right..I said if they RV after RD....the value would increase..and small profit from original purchase .....but in doing so...Still, like now, we may not be able to exchange for the total amount of dinars we are holding. Like now, the banks can or decide not, to exchange at all, as well as if they elect to exchange...they can place limitations on the amount we can exchange. So investing the balance of dinars would be one thing to consider instead of sitting in a sock drawer.

What different scenarios are you speculating for Your interest? I know what we all hope for but with all the information..what other game plans would be up for grabs if not a straight out exchangeable RV beyond discretion of banks and dealers?

Wishwell11

[BlueJeanBaby]

Yes you're Right..I said if they RV after RD....the value would increase..and small profit from original purchase .....but in doing so...Still, like now, we may not be able to exchange for the total amount of dinars we are holding. Like now, the banks can or decide not, to exchange at all, as well as if they elect to exchange...they can place limitations on the amount we can exchange. So investing the balance of dinars would be one thing to consider instead of sitting in a sock drawer.

What different scenarios are you speculating for Your interest? I know what we all hope for but with all the information..what other game plans would be up for grabs if not a straight out exchangeable RV beyond discretion of banks and dealers?

Wishwell11

If banks decide to not exchange our dinar, they would be missing out on loads of revenue from the fees they charge plus on our business in all the other aspects of banking that we would bring to them. Additionally, I don't see why banks would put a limit on how many dinar we can exchange, because it's none of their business how much dinar we have. Their only obligation is to verify that the currency we are exchanging is not fake, and that we obtained the dinar through legal means. Once the currency is authenticated and verified that it was obtained via legal means ... why would they miss out on all the profit THEY will make, by putting limits on how much they'll allow?

A few weeks ago, I went into my branch of B of A and asked them about foreign exchange wire transfers - what their fees are, how the transfer takes place, how long it takes, who is responsible for it going through (the entity making the transfer, or me as the recipient), what the FDIC limit is on larger amounts (as of now, by the way, it's unlimited. This will change in 2012, however, to $250,000), and a few other questions. I never mentioned which currency I was expecting to deal in until he asked me, which happened to be when I asked about the FDIC limit for larger amounts. THEN he became curious, at which point I told him it's IQD. he paused, and I told him yes, I know it's devalued right now, and not a recognized currency on FOREX ... HOWEVER, I asked if such a time ever came to pass that the IQD did become recognized and was traded on FOREX, would any of the procedures we discussed be any different? This is when he got up, went over to behind the bullet proof glass, talked to someone back there, came back and told me that if the IQD ever became a recognized currency on the FOREX and everything was on the up and up, yes everything we discussed would still be in play.

Having said that, banks aren't the only place to exchange them. The currency exchange place I purchased mine has corporate offices which I've been in contact with, and I can also go there to trade them in once the RV happens.

Something else to consider is that Iraq may very well impose a deadline in before which we must turn in our large denominations, so keeping them in a sock drawer in that scenario would be a mistake. If they do, in fact, impose a deadline, then you might as well turn them in for whatever the new RV rate is. If all they do is switch out the large denominations for smaller ones without changing the value of the bills (ie: redenominate), then you would want to keep them in a sock drawer because they would only be worth what they're worth right now - nothing changes in a redenomination.

Anyway, that's my take.

GO RV !!

[wishwell11]

>>HOWEVER, I asked if such a time ever came to pass that the IQD did become recognized and was traded on FOREX, would any of the procedures we discussed be any different? This is when he got up, went over to behind the bullet proof glass, talked to someone back there, came back and told me that if the IQD ever became a recognized currency on the FOREX a

Exactly!...If it did indeed RD then it may or may not show up on Forex for some time until government, banking and laws are complete...regardless if hitting Forex or not and RD/1000 old =1 new ..this *speculation scenario (outside straight up Reval)...takes me to my point just one of many speculations...... which is, simply a trend indicator strong activity for Iraq ventures..No matter the profit they're there, but RD and trends make this for an interesting speculation as well and could apply regardless if on Forex or not if using physical dinar...or appeal to the small profits vs exchange fees eating most of it up. Take your 25k note ..get in on a group..after rebase..25.00 or whatever per note will be applied to a new venture instead of exchanging for USD or lower denom note to wait projected few years to appreaciate to above 3.00.

State Bank is delayed untill June 2013 for restructure and notes valid (rumor 2 yrs) hmmm coincidence if a RD rebase is indeed announced soon. and if the 1000/1 and 2 yr projected 3.00 +.If it does or doesn't show up on Forex soon..regardless.same value or small profit may lead some to now reinvest Dinars in Iraq since my currency could be used there instead of profits being eaten up by exchange fees.

The point really....was speculating on one of the what ifs...if this scenario happens and considering recent trends, would imply it isn't out of the question to consider and could possibly be strong indicators of what some of the Gurus are anticipating and moving forward for alternative options for a different process and gains initially anticipated by dinar buyers. Nothing more than a speculation consideration not RV/RD debate as I am not one to say what or what it won't do only what it can do while appreciating mine and others various considerations as well.

Wishwell11:D

Go RV