New theory: Rv timeline feb. 17 - 21

[Fi3ry_Ph03n1x]

Would someone explain to me about the dropping of three 0's from the Dinar? Is this good or bad? I am new at this and have a modest investment in the Dinar.

Schmidt: Dropping 3 zeros is called redenomination. This occurs when a country has a high ratio of 'units' for every USD (in our case, the units are Dinar... or in Venezuela, the Bolivar, or whatever the local currency is.) The slang term for redenomination is "LOP" as in lopping off some zeros to bring the units on par with international standards.

When a country redenominates, they introduce a new set of bills where the value is equivalent to an old bill with more zeros. The old and the new currency can, and often do, have the same name. So don't let it confuse you that a 25,000 Dinar note can equal a new 25 Dinar note. Just because they are both called a Dinar does not mean that they have to be comparative in value. When Venezuela redenominated, I believe that 10,000 Bolivar became worth the same as 10 new Bolivar.

Redenomination is done for various reasons, such as to try and instill confidence in the local currency, signal major reform of monetary policy, indicate the end of civil war/unrest, etc. You should check out the article link found in this post if you want to fully understand redenomination, what it does and does not mean, and how it can potentially affect our investment:

http://dinarvets.com/forums/showthread.php?9287-Anyone-else-find-it-suspicious&p=60886&highlight=#post60886

FP

[Fi3ry_Ph03n1x]

Hi, I'm very, very new to all of this and have been reading as much info/posts as possible. I have a question... If all the larger IQD are supposed to be "recalled" by the end of 2010, how is it possible to hold onto them IF the rates go up next year such as $2-$3+, without losing alot of money? Is this a stupid question? Probably, but like I said, I'm new at this. Help, please.

Hi Mesha, and welcome. I'm new to DV.com also, but have had my Dinar for several years. If I understand you, I think you have two separate questions. #1, what is the 'recall' and how will it affect the value of your Dinar, and #2: How will a move in the exchange rate affect its value?

Alright, the recall you mentioned is called a redenomination... commonly called a LOP in slang terms here. I just posted some info for Scmidt545 on redenomination. Check out the previous post and the article in the link to understand what a redenomination means and how it might affect us. We are only speculating as to whether or not the Dinar will be redenominated and, if so, when it will happen. I don't have an opinion on this.

Now, how does a move in the exchange rate help or hurt us? Well, for practical purposes, exchange rates can only improve our situation as the Dinar is severely depressed. Currently, 1 IQD will only buy about 0.000845 USD (8/100ths of one penny). At my bank, I would have to give them 1183 Dinar to get $1 USD.

So when we say that a Dinar will go up to $2 or $3 in value, that is going up from .000845... a huge increase in value. This is commonly called an "RV" on this site. RV meaning revaluation.

The hard part is understanding how these two can affect one another. And this depends on the timeline that they are implemented on, if at all. If an RV happens and a LOP does not, this is very good. If you have 1,000,000 IQD, and an RV happens at $1.49 USD:1 IQD, it means that your Dinar are now worth $1,490,000.00 USD. Excellent news, and if the exchange rate is $2-$3 or higher, it is even better.

If a LOP happens and then an RV, your 1,000,000 gets 'lopped' down to 1,000 IQD and then RV'ed at $1.49 making your IQD worth $1,490 USD. Still a good profit percentage, but nowhere near the first scenario.

So that is how it works. What actually happens remains to be seen. Hope this helps.

FP

[Storm Trooper]

good info and responses thank you

[tlar]

Shabib is in charge of monetary policy in Iraq. He is the one who is responsible for the success or failure of the rv. He will prepare Iraq for the rv and as we have seen in the last few days that is exactly what he is doing. The IMF and World bank have already given their tacit approval as witnessed by the studies they have done or the currency potential value. Iraq has 25 trillion dinars out. The cbi recently increased their reserves to almost 70 billion. It had 47 billion in january in federal reserves and added 22 billion and three metric tons of gold in the last two days bring the total to 70. This means Iraq's currency reserves are now 3x's the value of the currency that is out. The reason can only be to cover the impending rv. Lastly in the last few days the cbi has clarified their rv plan. Abeit politics do play a role, remember the cbi is autonomise and the only iraqi who seems to be generally interested in the future of iraq is Shabibi. He is the trigger and will do it when he is ready. I personally think will be in the next 2 days before the weekend not after for a multitude of reasons.

[Duce]

Yes, but what about the Iraqi's that DO NOT use USD? Most of them only make around 15000 IQD per month. Are you telling me that if they come out with the new currency without "0s", these Iraqi's will only make 15 IQD per month, or $15 USD given a 1:1 Ratio? I really don't see that happening......not without a civil war right behind it....

[braywilkins]

You are so right!!!

[David]

I don't know. In U.S., Obama wouldn't be making this decision, would he, it would be fed reserve wouldn't it

[d-stach]

You say they are makeing that right now....Well 15,000 IQD right now is worth around 15 USD. So if later it is worth 15 USD what is the difference. They can take off the 3 zeros and still have the same buying power as before. No loss to them.

[lbernal]

Seems reasonable timelines are posted with all the chat info

[lbernal]

I am hearing Tuesday is the BIG day we have been waiting for.

[tabi]

TODAYS DATE: FEB. 22, 2010

From all the information I have gathered over the years...The most logical time for the RV HAS to be between 2/26 and 2/28/2010

Post Script: If not, I will post my next guess on the 29th of Feb. But, you may have to wait for the next leap-year!

[DesertPete]

Now this is good stuff! It has been my thinking that the UN won't release Iraq from Ch. 7 (and subsequently endorse the RV) UNLESS Maliki gets elected.

Why do I think this? Maliki is "the man" relative to who the US, etc. WANT to be elected so they, the US, etc. can maintain some semblence of control .... as opposed to someone they haven't worked with.

I would find it hard to believe an RV and the power of "new money" would occur to a wild card winner of an election (someone other than Maliki). So I guess its like the old "chicken and the egg" conundrum of which came first. Release of Ch. 7 .... RV .... and the election? Or .... election (hopefully Maliki) release from Ch. 7 and RV. At this point, I'll take either as long as they happen. Best of luck to all .... I hope we're getting close.

Which one comes first? Chicken or the egg?

The people pulling the strings (US, China, IMF, UN) need to have Maliki re-elected to maintain stability and controll. Maliki's re-election would be secured by an RV. Chapter 7 needs to be lifited (or at least a definate date for restrictions to be lifited for RV to occur. All are interrelated and must happen almost simultaneously it seems!

[netangel]

Well thought out Scooter. I like it...

[harleyrider]

Sounds good

[Rafy]

I think that we should ignore the issue of the three zeros and get all our hopes that this theory be the final conclusion of this rollercuster.

[memrfixitok]

I think I believe that Maliki will be the man of the hour. RV'ing before the election is his key, and yes he is a puppet but the U.S. wants him there. So with a hope and a prayer we wait to see if all this talk is true. And once this election is over if there is no RV, I'll be moving on. Enough time 5yrs waiting.

[john1025]

so there you are! I've missed your deductive reasoning! Well said Steve!

writer

[jeff stevens]

Thank You scooter for the GREAT insight you have developed by studying the flow of the diner. My concern is WHAT if Malicki is not re-elected than what?

[Captain Terry]

Capt Jack: You and I gotta meet sometime!!! We think too much alike!! Scary, hey????

[jackdavis1364]

Look at it this way....... You are not loosing 3 zeros. Over time, CBI will be phasing out the large bills with 3 zeros but immediately introducing small dem notes. Assuming the RV rate is $1.49, your 25K note is worth $37,250. The purpose of phasing out the zeros is so the people can buy a coke with 1dinar rather than 1,000 dinar....i.e. easier to carry smaller notes. Your 8M dinar will be worth $1.49 x 8M = $11,920,000. And yes, you can bet the ranch that the PM's have loaded up.

I wonder how many times the lop eared bunnies have to be told the same thing over and over? I suppose until it RVs and they have the money in the bank.

[joe]

This has been the best reading I have seen here in a long time. (although I have been gone for almost 3 weeks vacationing {a little bragging never hurts anybody}) No bashing, no bickering, Wow actually some informative information.

[VooDooWarrior]

Thanks for the information. Time will tell how this all will play out.

[Sunlight]

Oh,this is a good rumor. RV soon.

[hoping...]

Buy more ... keep the game going strong.

[phoenixdeam]

Good news and praying for it to GOOOOOO soon!!!!!!!!!