captaint Posted February 8, 2010 Report Share Posted February 8, 2010 ....otherwise a ten dinar note would be worth less than a U.S. Penny. Does that make any sense? I really don't think they would spend more to print the notes than the value of the notes, while they have to carry suitcases of cash around to buy anything. I am actually starting to believe this thing may actually make us a lot of miney. Because in all reality, most of the currencies in the world are backed by nothing of real value, and are only worth whatever the percieved value is by the rest of the world. At least Iraq has trillions of dollars worth of oil. Also, in the toeal scheme of things, who really cares if there are a few more millionaires in the world. All the wealth created for we individuals will probably be less than a thousandth of one percent of the money in the world. and that was just a wild assed guess!! Best to all, and lets hope for the best. Link to comment Share on other sites More sharing options...
TexaSwa Posted February 8, 2010 Report Share Posted February 8, 2010 There are no 10 dinar notes in existence at this time. They would be printed after the redenomination, if the scenario in the article plays out, and would then be worth roughly $8. Link to comment Share on other sites More sharing options...
captaint Posted February 8, 2010 Author Report Share Posted February 8, 2010 Yes, I was just useing ten dinars as an example for when the new notes are issued. How do you come up with the $8. I am hoping the three zeros they get rid of are to the left of the current dollar value, which would equal an r/v to about eighty some cents. Hence 8 bucks as you say. Can you explain how you came up with your number. Thank You. FT Link to comment Share on other sites More sharing options...
Torey0112 Posted February 8, 2010 Report Share Posted February 8, 2010 2. Currencies with extremely low values are often demonetizedIt is quite common for currencies with very low values compared to other base currencies to demonetize their existing hard currency and issue new currency with new values. For example, the Venezuelans, another oil economy, demonetized the bolivar (trading at 2,150 to the USD) in 2008 and allowed currency owners to exchange 1,000 of them for 1 new bolivar. The new bolivar now trades at 2.15 to the USD. This demonetization and revaluation process has been done over and over again in modern history. One of the risks here is the process required to get your hard currency dinars exchanged for potentially a second issue of new dinars at a new value. If there is an extremely illiquid market today there is likely going to be one then as well. It may be something that can only be done in Iraq which could make the process extremely expensive Link to comment Share on other sites More sharing options...
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