RV or RD State what you belive will occur

[BBear]

Nothing long and drawn out, Just put down whether you believe in a RV, RI, RD or if you believe that it will do nothing . but please make it simple. and nothing negitive, I dont want this turning into a bashfest...

Mods, please move to opinion tab. sorry for putting it in the wrong place,

Edited June 28, 2011 by BBear

[HYDRANT]

BBEAR I IMOP THINK IT WILL REVALUE BUT ONLY AFTER THEY PASS THE HCL LAW

[Don & Rocio]

RV then slowly phase out 000's = RD

[Ironwolf1974]

RD in country for the locals, with a RV at the same time internationally to support IMF/WTO/FOREX/ME

[Dalite]

RD, with RV to follow after the larger bills have been taken in and exchanged for lower denominations to be spent into the economy.

[FloridaEd]

I agree. Only after passing HCL law, and what about the GOI. Is it complete?? Security ministers seated? seems like that talk has fizzled out. Getting more and more violent over there again. I am thinking IF it RV's it will be a long while. I hope we dont have to start all over. Just my opinion. I hope I am wrong. bash away, I am a big kid.

[Poseidon]

you should have just made a poll LOP or RV........... NONE OF THIS RD CRAP CAUSE THAT IS A LOP STATE IT AS IT IS LOP OR RV

Edited June 28, 2011 by Poseidon

[sheepdog]

I don't think it will RV

[BBear]

you should have just made a poll LOP or RV........... NONE OF THIS RD CRAP CAUSE THAT IS A LOP STATE IT AS IT IS LOP OR RV

I said RD because the "L" word seems to bring out the anger in some folks, and I have desided to turn over a new leaf and be a little more positive than I have been... Thank you to all who responds to this post.

[Rumorbroozer]

II can't see how it could lop without the people being hurt if I have imassed a fortune of 25k notes and you have the same amount of money as I do but in smaller denominations why should you be able to wait it out and not me? So if I have 1million in 25k notes and you have the same in 100 dinar notes yourrich and I'm not?

[BlueJeanBaby]

If all they do is take the big bills from circulation and replace them with more reasonable, and more portable smaller bills (aka redenomination) ... but without also revaluing their currency, that will only make it easier for an Iraqi citizen to buy milk, because they won't have to carry around this big wad of bills anymore. Doing ONLY the redom will do nothing in the way of moving the Iraqi economy forward. Their currency will still be worthless on the world market, and any designs they have for attracting investors will not come to fruition.

I think they have to do both, and seeing as how the WTO deadline is up on the 30th, AND the DFI will be released on the 30th, AND numerous UN sanctions will be removed on the 30th ... well gosh darn, I guess it'll happen S O O N. If not on the 30th, then soon thereafter.

Yes, I know ... the 30th is their weekend, so that's why I say if not the 30th then soon thereafter.

GO RV !!!!

[easyrider]

I don't think it will RV

lol why are u here then?? hahaha torture perhaps?

[BlueJeanBaby]

lol why are u here then?? hahaha torture perhaps?

We can call them the Anti-Pumper. Better yet, how about ... The Deflator?

[magawatt]

The dinar will RV. Internally prices will quickly adjust to equivalent values and imported goods will finally be affordable to the general population (dancing in the streets instead of riots).

[DinarProwler]

I want to stay positive so RV!!!!!!!!!!!

[BlueJeanBaby]

II can't see how it could lop without the people being hurt if I have imassed a fortune of 25k notes and you have the same amount of money as I do but in smaller denominations why should you be able to wait it out and not me? So if I have 1million in 25k notes and you have the same in 100 dinar notes yourrich and I'm not?

You're missing one really important point: The VALUE of the dinar does not change, unless they do the RV. Your dinar will be WORTH the same as the person with the bigger bills. Redenomination DOES NOT CHANGE HOW MUCH THE BILL IS WORTH.

They can't revalue it only in country. If they revalue it in country, then it's the same worldwide.

That's the way it works.

GO RV !!!!!

[Rumorbroozer]

You're missing one really important point: The VALUE of the dinar does not change, unless they do the RV. Your dinar will be WORTH the same as the person with the bigger bills. Redenomination DOES NOT CHANGE HOW MUCH THE BILL IS WORTH.

They can't revalue it only in country. If they revalue it in country, then it's the same worldwide.

That's the way it works.

GO RV !!!!!

Understood but how do they keep saying our 25k notes will be now a 25 dinar note do they meen this literally or what. So if they rv and rd all at the same time the sinario I pointed out earlier would hold true correct?

I just don't understand how if they lop or rd and I hold 225,000 dinar they can tell me that now I only have 25 dinar the math just doesn't add up what happen to my other 200,000 dinar there just gone? Lol. Go RV cause I can't see it any other way!!!!!!!!!!

[Derek2011]

I believe it will RV first, they will issue lower denoms and coins due to the new rate. The people will turn in their large bills (removing the 000) in exchange for the smaller denoms. Can you imagine how hard it would be to go to the market with only 50's? After an RV how is the guy at the market supposed to give you change? They will need smaller bills after an RV. The 000 notes will be turned in because no one will need them anymore, unless they are buying a house or car. I believe that Iraq is full of rich folks who live as peasants now only due to the sanctions that have been put on Iraq. This will be the change that will allow middle class to be come the upper class and the lower class to become the middle class. The government will be in like Flint with the Iraqi's and not have to worry about keeping their jobs. IMO

[BBear]

Understood but how do they keep saying our 25k notes will be now a 25 dinar note do they meen this literally or what. So if they rv and rd all at the same time the sinario I pointed out earlier would hold true correct?

I just don't understand how if they lop or rd and I hold 225,000 dinar they can tell me that now I only have 25 dinar the math just doesn't add up what happen to my other 200,000 dinar there just gone? Lol. Go RV cause I can't see it any other way!!!!!!!!!!

The way I am reading it, it goes like this... 1000 dinar notes that are on the streets now will buy say, a loaf of bread in Iraq. the government of Iraq intends to RD which means that they are going to remove the 3 extra zero's from the bill making a 1000 dinar bill (that has an exchange rate of .00085) the same as the new 1 dinar bill (that will have an exchange rate of .85) the new bill will have 3 zero's removed and the exchange rate will have 3 zero's removed. so the "Value" of the bill has not changed at all. The old 1000 dinar bill that would buy a loaf of bread, is the same as the new 1dinar bill and will also be able to buy the same loaf of bread.

[BlueJeanBaby]

Understood but how do they keep saying our 25k notes will be now a 25 dinar note do they meen this literally or what. So if they rv and rd all at the same time the sinario I pointed out earlier would hold true correct?

I just don't understand how if they lop or rd and I hold 225,000 dinar they can tell me that now I only have 25 dinar the math just doesn't add up what happen to my other 200,000 dinar there just gone? Lol. Go RV cause I can't see it any other way!!!!!!!!!!

You are justifiably confused about the difference between a redenomination, and a revalue.

A ) If all they do is remove the big bills from circulation, and replace them with smaller denominations (also called lop, when the correct term is re-denominate. I like using the correct terminology so that there's less confusion and more clarity. I'm real big on clarity) ... if they just take away the big bills, the VALUE of the money is the same. A 25,000 dinar note is still only worth a nickel (or whatever it's worth right now. Let's use a nickel for argument's sake.) However, if they take the big bills from circulation and replace them with smaller bills, it makes life for your average Iraqi citizen much easier because they don't have to carry around this ridiculous pile of cash in order to buy some milk ... you know what I mean? So, that's what happens when they do a redomination.

APPEARANCE of the bill changes - VALUE of said bill does not change.

If they change the VALUE of the bill and make it worth more, that's a revaluation and it's what we all want.

If all Iraq does is redenominate, the value of their money is still worth very little. It will be more convenient, yes, but it doesn't improve things in a concrete, major way that changes things for the better. IMHO, I can't see a redenomination without a revaluation, because right now what Iraq needs most is investors, who will come to Iraq and help them rebuild their country - housing, schools, buildings, roads, water and gas pipelines, power plants ... all of these things cost money, and if they revalue their currency to the potential that the country has, they would be taken seriously as a major player for trade and other economic gains.

B ) If I have Iraqi dinar in a bank account in Iraq before a redenomination, the VALUE of the tender in that account WILL NOT CHANGE just because they redenominate.

I deposited 500K of bills into the account, and that 500k will STILL BE WORTH 500k ... it's just that when I go there to get some cash (let's say that I want 100 dinar for argument's sake), they'll give me a 4 25 dinar notes instead of 4 25,000 dinar notes, because the VALUE of the bills hasn't changed,

The ONLY thing that changes with a redenom is the APPEARANCE of the bill - NOT how much it's worth.

C) If you were a citizen of Iraq, then yes, you would turn in your large denomination and they would replace it with smaller bills OF THE SAME VALUE. The 25000 note would STILL be worth 25 dinar (or whatever it's worth right now.) What you would end up with is either 5 dinar to equal the 25, or a two 10's and a 5, or a 20 and a 5 ... what a redomination does is make it easier to carry your cash around. The appearance of the bill changes, but not what you can buy with the bill.

HOWEVER, as with all other foreign currency, it is not meant to be spent as legal money outside of the country of origin. If you have Swiss francs and you want to buy some milk in the US, you have to change your francs in for dollars. If you have a British pound and you're at the gas station in Bali, Indonesia, you need some Rupias in order to get gas there. So it is with the Iraqi dinar - you can't spend it outside of Iraq, which is why foreign exchange places exist. They take one currency and exchange it for another, based on the current rate of exchange (minus a small fee, or spread, paid to the exchange place.)

When the RV takes place, you'll end up with US dollars - not just more smaller dinar. You have no need of smaller dinar notes because you don't live in Iraq, so just hold onto what you have for now, and when they revalue it, turn them in for US

Again, this is just my opinion. My best advice is to read and take in as much information as you can before you have a major brain cramp - and then see what makes the most sense to you, and base your opinion on that. Based on what I've read, this is what I think will happen. As it happens, it's also what I HOPE happens.

GO RV !!!

[NOTE: In an effort at transparency, I posted this information in another thread and copied/pasted it in here.]

[keepmwlknfny]

From what they are telling us, it looks like they will RD (unfortunately)......then once the process is complete Im sure without a doubt they will change the exchange rate......but we are jumping to conclusions, they havent even voted on the plan to remove the three zeros......

[NatMannDU]

I do believe that this will closely follow the standard set by the Germans after WW2 with the policies and revaluation they used to bring value to the mark and get their economy rolling. If you get a chance, look at the history for that specific currency. I think it closely resembles what is happening here with the dinar and would be a good way to gauge how progress is being made.

Edited June 29, 2011 by NatMannDU

[umbertino]

Still moderately hopeful for a gradual RV

[goldengoose]

I believe it will RV first, they will issue lower denoms and coins due to the new rate. The people will turn in their large bills (removing the 000) in exchange for the smaller denoms. Can you imagine how hard it would be to go to the market with only 50's? After an RV how is the guy at the market supposed to give you change? They will need smaller bills after an RV. The 000 notes will be turned in because no one will need them anymore, unless they are buying a house or car. I believe that Iraq is full of rich folks who live as peasants now only due to the sanctions that have been put on Iraq. This will be the change that will allow middle class to be come the upper class and the lower class to become the middle class. The government will be in like Flint with the Iraqi's and not have to worry about keeping their jobs. IMO

'Derek201',

Excellent post, you hit the nail squarely on the head! Oh, and yes, an RV will take place!

Thank you,

GG

[BBear]

From what they are telling us, it looks like they will RD (unfortunately)......then once the process is complete Im sure without a doubt they will change the exchange rate......but we are jumping to conclusions, they havent even voted on the plan to remove the three zeros......

Yes, lets hope they vote to kick the "3 zero's" plan out the door and on its a$$. but if they did vote to not go through with the RD I guess we would be back in the same boat weve been in for the past 7 years... waiting and waiting...crap, I am so ready for this thing to be over!!!! I am glad to see that we all got along on this post, especially when the topic was such a powder keg to begen with... Good job guys, and once again, thx