Question...how does the RV help Iraq?

[Joeshmoe]

So I don't understand why Iraq has to RV to make the budget? How does RVing give Iraq more $? I think i would be less confused if I understood that point.

[Ironwolf1974]

So I don't understand why Iraq has to RV to make the budget? How does RVing give Iraq more $? I think i would be less confused if I understood that point.

Two ways it could go down. Two ways it could help.

First doing a RD is not a fully positive, life changing, government strenghthening thing. Look at the RD's that have happened, just do the research and youll find that Turkey, Venezueala etc etc have not benefitted greatly under there RD's. There stable, but Iraq doesnt want to be JUST stable, they want to be a rich oil country.

Now if they RV without pulling in most of the currency, they are completely screwing themselves. SO, if they havent pulled in all the big bills from within the country then they will go broke right off.

Now if they RV with pulling in all the big bills, then they will owe a "Payout" of something along the lines of 350 billion dollars. Once that payout is done there currency is worth 1000x or whatever the rate is, what it is now and when they ask for companies, contractors etc to come in and work they can actually pay them worthy currency.

This is all just my opinion.

[BlueJeanBaby]

So I don't understand why Iraq has to RV to make the budget? How does RVing give Iraq more $? I think i would be less confused if I understood that point.

Imagine living in a country where your money is worth X amount (doesn't really matter - for the purpose of this explanation, go ahead and fill in the blank with whatever figure you like.) The economy in your country is relatively stable (for the most part), when suddenly, your country is thrown into war, and your money now buys A LOT less than it used to.

Let's say that your dollar used to buy a loaf of bread, but now, because the economy of your country has collapsed because of the war, your dollar can no longer buy a loaf of bread. Now, since your dollar has been devalued, you need 1000 dollars to buy a loaf of bread.

Multiply that by 20 years, and that's what the people of Iraq have lived by.

So, when their currency revalues, it will be WORTH MORE, and they'll be able to BUY THINGS with it again.

Not only that, but because the UN sanctions for trade are being lifted tomorrow (30 June 2011), they'll be able to export things again, and to trade again.

HOWEVER, lifting the sanctions is all fine and good ... but without currency that has buying power, it's futile.

Not only that, but the WTO will not give Iraq full membership without a currency that is recognized world wide as valid, or without a government in place. By the way, the deadline on the WTO extension that they gave to Iraq to complete all the steps to become a full member of the WTO (for which they first applied in 2004) just also happens to be 30 June 2011.

Not only that, but no one will want to invest in Iraq and help them rebuild their infrastructure (roads, schools, hospitals, power plants, phone lines, oil wells, etc) and give them assistance with other economic development if their currency is worth what it is right now.

Unless they give their currency more VALUE by the RV, none of these things will happen, and the citizens of Iraq will continue to live in this hole. They won't be able to open a business, buy or sell stuff on ebay (most don't have access to the internet to begin with but that WILL change once they build new power plants and people are able to BUY things again), buy homes and cars, etc ... but right now, with money that's worth less than a penny against the USD, they're stuck utterly.

Now, one other thing to consider is that, if they do revalue their currency, they will also need to do away with the larger denominations (like the 25,000 notes we all hold.) THAT is why they must also re-denominate, but I think the re-denominate must go hand in hand with the revalue. To do one, without the other ... I can't see it happening.

The re-denomination won't affect us over here that much, because since we don't live in Iraq, we can't spend the big bills anyway. For me, it's RV or bust. However, if they do announce a re-denomination officially today, that can only mean the RV isn't far behind IMHO.

GO RV !!!!

[Joeshmoe]

Imagine living in a country where your money is worth X amount (doesn't really matter - for the purpose of this explanation, go ahead and fill in the blank with whatever figure you like.) The economy in your country is relatively stable (for the most part), when suddenly, your country is thrown into war, and your money now buys A LOT less than it used to.

Let's say that your dollar used to buy a loaf of bread, but now, because the economy of your country has collapsed because of the war, your dollar can no longer buy a loaf of bread. Now, since your dollar has been devalued, you need 1000 dollars to buy a loaf of bread.

Multiply that by 20 years, and that's what the people of Iraq have lived by.

So, when their currency revalues, it will be WORTH MORE, and they'll be able to BUY THINGS with it again.

Not only that, but because the UN sanctions for trade are being lifted tomorrow (30 June 2011), they'll be able to export things again, and to trade again.

HOWEVER, lifting the sanctions is all fine and good ... but without currency that has buying power, it's futile.

Not only that, but the WTO will not give Iraq full membership without a currency that is recognized world wide as valid, or without a government in place. By the way, the deadline on the WTO extension that they gave to Iraq to complete all the steps to become a full member of the WTO (for which they first applied in 2004) just also happens to be 30 June 2011.

Not only that, but no one will want to invest in Iraq and help them rebuild their infrastructure (roads, schools, hospitals, power plants, phone lines, oil wells, etc) and give them assistance with other economic development if their currency is worth what it is right now.

Unless they give their currency more VALUE by the RV, none of these things will happen, and the citizens of Iraq will continue to live in this hole. They won't be able to open a business, buy or sell stuff on ebay (most don't have access to the internet to begin with but that WILL change once they build new power plants and people are able to BUY things again), buy homes and cars, etc ... but right now, with money that's worth less than a penny against the USD, they're stuck utterly.

Now, one other thing to consider is that, if they do revalue their currency, they will also need to do away with the larger denominations (like the 25,000 notes we all hold.) THAT is why they must also re-denominate, but I think the re-denominate must go hand in hand with the revalue. To do one, without the other ... I can't see it happening.

The re-denomination won't affect us over here that much, because since we don't live in Iraq, we can't spend the big bills anyway. For me, it's RV or bust. However, if they do announce a re-denomination officially today, that can only mean the RV isn't far behind IMHO.

GO RV !!!!

AWESOME! This is the best explanation for the RV that I have seen.

Thank you VERY much for taking the time to put this together.

[Luigi1]

After RV, the ID will become a world currency with an exhange rate similar to other Gulf Nations. This will make it easier for investors to invest into Iraq Stock Exchange, award huge multi int'l national contracts & trade OPEC oil in ID. All this benefits the ordinary Iraqi & the standard of living.