Redenomination Exchange

[usacardinal]

I recently bought ten 25k Dinar notes. After reading around, it seems a redenomination will occur before a RV. My question is, if this happens, will I be able to exhange my 25k notes for the USD the same as someone with the new 25 Dinar notes.

[theadicts]

I recently bought ten 25k Dinar notes. After reading around, it seems a redenomination will occur before a RV. My question is, if this happens, will I be able to exhange my 25k notes for the USD the same as someone with the new 25 Dinar notes.

No, your 25k will be 25. If it revalues AFTER at lets say $1.00. You will get around $25 dollars for every 25k note.

[Nani?]

No, your 25k will be 25. If it revalues AFTER at lets say $1.00. You will get around $25 dollars for every 25k note.

Why is everyone so sure it is going to work this way? That just doesn't seem right. Why all this waiting around for nothing... I just don't think this is how it will happen. I can see the two currency scenario existing at the same time while the demons are being exchanged or rather the large ones being taken off the market but I don't see why they could raise the value to 1 to 1 during that process do that 25k exchange rate will yeild $25000 the currency is still Iraqi dinars so electronically it will look the same.

[DAME1]

No, your 25k will be 25. If it revalues AFTER at lets say $1.00. You will get around $25 dollars for every 25k note.

You are wrong

A Lop helps no one... NO ONE.....

Dame

[Dalite]

Why is everyone so sure it is going to work this way? That just doesn't seem right. Why all this waiting around for nothing... I just don't think this is how it will happen. I can see the two currency scenario existing at the same time while the demons are being exchanged or rather the large ones being taken off the market but I don't see why they could raise the value to 1 to 1 during that process do that 25k exchange rate will yeild $25000 the currency is still Iraqi dinars so electronically it will look the same.

This will explain how Redenominations work

http://www.reconversionbcv.org.ve/englishversion/pdf/fundamentalscurrencyredenomination.pdf

It is frameworks of actual RD in the past, along with the widely published historical accounts of how redenominations work that let's everyone describe them in the same way

That is why the decsription of what happens in a RD never changes..

If Iraq does RD, the link above will give you a complete framework from start to finish of what is involved, and how it works.

[GMartin]

USA did the same thing and they eliminated the $1000 bill. The replaced it with $100. The value of the $1000 stayed the same. That's like saying I have a $5 bill and they are eliminating it and replacing it with $1 coins. So do you just get $1? NO you get the value of the $5. so that equals 5 $1 coins.

So whether it is 10k notes or 25k notes you will get the value. A 25 note will not equal a 25k note. They already have lower notes people.

Check out their current currency at http://en.wikipedia.org/wiki/Iraqi_dinar

It tiers upward. They have larger notes because they thought it would be better and stop crime, but it didn't. Plus it makes it complicated to give change back.

So going backwards with their money isn't something they are going to do. If they did they would have done this while in the beginning of chapter 7 to cut their losses.

Plus if you make the currency valueless they would be moving backwards not forwards...

[Dalite]

You are wrong

A Lop helps no one... NO ONE.....

Dame

You may be right about a LOP .

However, the discussion here is about a RD.

It that was true, countries wouldn't RD.

A RD is used to remove traces of past inflation, strengthen the currency, Instill confidence, and let it appreciate to true worth.

USA did the same thing and they eliminated the $1000 bill. The replaced it with $100. The value of the $1000 stayed the same. That's like saying I have a $5 bill and they are eliminating it and replacing it with $1 coins. So do you just get $1? NO you get the value of the $5. so that equals 5 $1 coins.

So whether it is 10k notes or 25k notes you will get the value. A 25 note will not equal a 25k note. They already have lower notes people.

Check out their current currency at http://en.wikipedia.org/wiki/Iraqi_dinar

It tiers upward. They have larger notes because they thought it would be better and stop crime, but it didn't. Plus it makes it complicated to give change back.

So going backwards with their money isn't something they are going to do. If they did they would have done this while in the beginning of chapter 7 to cut their losses.

Plus if you make the currency valueless they would be moving backwards not forwards...

Go RV!!!!

[usacardinal]

So if it does redenominate before it RV's, was buying the ten 25k notes a waste of $300? I understand how the redenomination works, I'm just wondering how it affects the exchange rate once it does RV.

[Mongo]

I recently bought ten 25k Dinar notes. After reading around, it seems a redenomination will occur before a RV. My question is, if this happens, will I be able to exhange my 25k notes for the USD the same as someone with the new 25 Dinar notes.

Moooooooooove along, no new grass here

Edited July 16, 2011 by Mongo

[DAME1]

You may be right about a LOP .

However, the discussion here is about a RD.

It that was true, countries wouldn't RD.

A RD is used to remove traces of past inflation, strengthen the currency, Instill confidence, and let it appreciate to true worth.

Go RV!!!!

The last I checked stating that a 25 dinar note would be equal to a 25,000 dinar note after removing the zeros..would this not be a Lop?that is what was said....and that is wrong..... IMO only

Dame

[jg167]

So if it does redenominate before it RV's, was buying the ten 25k notes a waste of $300? I understand how the redenomination works, I'm just wondering how it affects the exchange rate once it does RV.

Your 25,000 IQD note is worth (at 1170 dinars per 1 USD) $21.36 USD. After an RD you will exchange your 25,000 note for a 25 NEW dinar note that will also be worth $21.36 at an exchange rate of 1.17 new dinars per 1 USD.

[Dalite]

The last I checked stating that a 25 dinar note would be equal to a 25,000 dinar note after removing the zeros..would this not be a Lop?that is what was said....and that is wrong..... IMO only

Dame

You had stated it helped no one.

I merely pointed out that if it wasn't beneficial, countries wouldn't do it.

Actually, I am not qualified to comment on a LOP, as it appears to be a term taught by the Pumpers to prevent the Dinar investors from understanding what a RD is, and why it is chosen in cases like Iraq, where past periods oh high inflation have been brought under control, and are removed from the currency to allow it to gain strength and appreciate.

My view of a LOP would be comparing it to castrating cattle, or pruning shrubbery. That truly gives nothing back, while taking something away.

That is how the Pumpers have conditioned the speculators to view a RD.

However, nothing could be further than the truth.

[HopefulTxn]

USA did the same thing and they eliminated the $1000 bill. The replaced it with $100. The value of the $1000 stayed the same. That's like saying I have a $5 bill and they are eliminating it and replacing it with $1 coins. So do you just get $1? NO you get the value of the $5. so that equals 5 $1 coins.

So whether it is 10k notes or 25k notes you will get the value. A 25 note will not equal a 25k note. They already have lower notes people.

Check out their current currency at http://en.wikipedia.org/wiki/Iraqi_dinar

It tiers upward. They have larger notes because they thought it would be better and stop crime, but it didn't. Plus it makes it complicated to give change back.

So going backwards with their money isn't something they are going to do. If they did they would have done this while in the beginning of chapter 7 to cut their losses.

Plus if you make the currency valueless they would be moving backwards not forwards...

All the US did was retire currency that was really not used very much. The retirement of the large US denominations was not used to reduce the monetary levels that had been bloated by years high inflation and subsequent recovery. Two different reasons for removal, to different processes for removal.

Iraq is not going backwards with their currency, they are going lateral in such a way as to remove the effects of the past 30 or so years. Several people have claimed that it would be a deterrent to foreign investment, however it actually has the opposite effect. While it would not be a good thing for most currency speculators, for investors it is a signal that their economy is returning to what it used to be and can be very beneficial.

One thing to point out is that it will not be an issue of 25,000 IQD being worth 25 IQD. There will be an introduction of a new currency, along with a new currency code (example: NID), so it would be that 25,000 IQD and 25 NID would carry the same value of around $21.50 USD. This is what they mean by both currencies existing together in the market - it is a process that has been done many times before.

[sportfisher]

I recently bought ten 25k Dinar notes. After reading around, it seems a redenomination will occur before a RV. My question is, if this happens, will I be able to exhange my 25k notes for the USD the same as someone with the new 25 Dinar notes.

No you won't IMO, not an obsolete currency

And if it is a true demonitizing redenomination, you would be lucky to be able to exchange for the replacement currency at all IMO.

But, I don't believe that is what is going to happen, I'm in for a straight increase in value.

[DAME1]

All the US did was retire currency that was really not used very much. The retirement of the large US denominations was not used to reduce the monetary levels that had been bloated by years high inflation and subsequent recovery. Two different reasons for removal, to different processes for removal.

Iraq is not going backwards with their currency, they are going lateral in such a way as to remove the effects of the past 30 or so years. Several people have claimed that it would be a deterrent to foreign investment, however it actually has the opposite effect. While it would not be a good thing for most currency speculators, for investors it is a signal that their economy is returning to what it used to be and can be very beneficial.

One thing to point out is that it will not be an issue of 25,000 IQD being worth 25 IQD. There will be an introduction of a new currency, along with a new currency code (example: NID), so it would be that 25,000 IQD and 25 NID would carry the same value of around $21.50 USD. This is what they mean by both currencies existing together in the market - it is a process that has been done many times before.

Help me here I'm confused

Are you saying after all the 25,000 dinar notes are removed it will then have the same value as a 25 dinar note? That I believe, but what about the value of the 25,000 dinar note still in circulation after the RV? The value of that note will not be equal to a 25 dinar note.

We are not talking about other countries that did RD RV for what ever the reason, we are talking about Iraq...This scenario is

like nothing we have ever seen. Does it ever occur to anyone what the Architect's of the blue print are doing, as opposed to

what they're saying? Economies world wide are in transition ......

Dame

[Biker]

Some folks just dont get it thats all.

[abutchbaker]

Let's geter done!!!!!!!!!

[DeadGuy]

Dalite, I just read the PDF you posted. GREAT READING!!! Thank you for posting it.

I know it's not talking about Iraq. Venezuela and Iraq are much different.

The PDF said what I have been saying. The turnover of bills will be a lengthy process.

Education of the public started first. That's what I keep saying. Everyone keeps hoping to wake up to an RV and it just doesn't happen over night.

The thing about Venezuela is their exchange made no difference at all with the exchange rate of their money.

Iraq has stated they want their rate raised to a more even rate to the dollar. If their currency exchange follows this EXACT path then they will not gain any ground.

They will just use less bills, but the rate will not increase.

So, IF (big if) Iraq follows this way they would almost have to RV after exchanging currency. Wouldn't they?

buds

Edited July 17, 2011 by DeadGuy

[Legolas]

Another great thread. And once again, Dalite, JG167 and HopefulTxn have explained the answer well. DeadGuy raises the issue that I personally am hoping for if they go the RD route.....that they ultimately decide, after RD, to RV to a value "higher" than the U.S. Dollar. In that event, there could still be a profit made in this particular scenario. Just have to wait and see what they do. Pegging to the Dollar would seem to make the most sense, but nothing says they have to. Clearly, they have been in no hurry, despite the favorite words of the pumpers.......soon and imminent.

[Dalite]

Deadguy,

My understanding is that Shabibi wants to restore strength to the Dinar and restore Iraq to a one currency nation, in which the Dinar has growth potential that will stifle the need for the USD.

If there is a RD, he is a mere $.14 away from that goal.

Here is the math:

1 dinar now is 1170 dinar per dollar, expressed as $.00086xxx

After proposed RD is initiated:

1 dinar is strengthened to the rate of 1.17 dinar per dollar, expressed as $.86

Shabibi has a few choices.

He can announce a concurrent RV with the RD, and kick in the $.14 to make 1 dinar worth 1 dollar.

Or, he can allow the program rate to float to the point that the nominal rate moves from $.00086xxx to $.0010xxx

After RD is initiated, the $.0010xx becomes $1.00, as the RD divides everything by 1000, which is manifested by moving the decimal point 3 places.

The last option does not waste a valuable RV, and makes a giant step toward a one currency Iraq, with a monetary system that has great potential for appreciation.

After that, he can control growth, as the market demands it.

I hope this makes some sense and addresses your question.

Remember, this is all speculation on my part. I have no certainties to offer.

[DeadGuy]

Thanks for the reply... The one thing that is ABSOLUTELY CERTAIN is NOTHING IS CERTAIN. LOL

I always hoped holding Dinar now was liking jumping on a new stock pre IPO.

The stock (new currency) comes out at a rate...... Those of us that already have the stock (old currency) will probably sell as soon as the new price hits.

Then, as we sell, new buyers buy in hoping it continues to climb. That way all of the talk about Iraq needing 100 Trillion dollars to pay everyone goes out the window. the old holders will be paid by the new buyers. I'd love to see it start at a dime (or that .14 you spoke of) and slowly climb.

Personally, I think we'll have plenty of time to speculate and debate on where it's going. I think things will START to happen soon, but until we see the new currency, articles to Iraqi citizens and shop keepers on how to use and price goods for the new money and things of that nature then it's still a waiting game. I don't see how anyone can think they are going to the CBI website daily thinking POW! New rate! Sorry, ain't gonna happen that way.

To me, this is still months away from actually walking into a bank and cashing out. The wheels are in motion. I just think it's a longer trip than people think.

Good talking with ya

buds

Edited July 17, 2011 by DeadGuy

[jg167]

The thing about Venezuela is their exchange made no difference at all with the exchange rate of their money.

The exchange rate for the new currency (VEF) is 1000 times less than the old (VEB). 4,289.86 VEB per 1 USD or 4.2899 VEF for 1 USD. from http://www.oanda.com/currency/historical-rates/

[HopefulTxn]

Help me here I'm confused

Are you saying after all the 25,000 dinar notes are removed it will then have the same value as a 25 dinar note? That I believe, but what about the value of the 25,000 dinar note still in circulation after the RV? The value of that note will not be equal to a 25 dinar note.

We are not talking about other countries that did RD RV for what ever the reason, we are talking about Iraq...This scenario is

like nothing we have ever seen. Does it ever occur to anyone what the Architect's of the blue print are doing, as opposed to

what they're saying? Economies world wide are in transition ......

Dame

IF there is a redenomination, the 25K notes and the 25 notes would exist in the system for a set period of time which would be stated by the CBI. Based on how it has occurred before in other countries, there would be two currency sets existing at the same time with two separate currency codes assigned to them - the IQD for the current notes and a new one (we'll call it NID which is what the current dinar was when first released) for the new notes. Any examples given are IF only a redenomination occurs with no revaluation.

While both currency sets co-exist in the system products would essentially have two values, one for each currency. Something that costs 75,000 IQD would cost 75 NID, which could be paid for with (3) 25K IQD notes or (3) 25 NID notes. This would account for the statements that a 25K note would carry the same value/purchasing power as a new 25 note. In this situation, the IQD would remain to have a value of $0.00086, while the NID would carry a value of $0.86.

At some point after the exchange period ended, they would simply rename the NID to IQD - similar to what they did in 2004 after the Saddam notes were removed and demonetized.

This is only if there is a redenomination, which obviously is not the outcome anyone is hoping for.

[abutchbaker]

Good post

[Skybear]

You are wrong

A Lop helps no one... NO ONE.....

Dame

WHY do you say it helps NO ONE? It is an OBVIOUS help to Iraq!!!!

If they finally put out a NEW currency that actually HAS some value (but YOU don't HAVE any of it and all YOU have is the 2003 Series Iraqi Dinar worth $0.0006578 per dinar. . .all this toilet paper they have been selling at 1170 won't COST them anything, to speak of! Certainly not the arm-and-a-leg it would if out of their unselfish and grateful little hearts they decided to make the million plus US Dinar olders over night MULTI-MILLIONAIRES!

If, on the other hand, they raise the VALUE of the EXISTING toilet paper to $3.00, along with publishing and distributing new lower denominations. . . . . .LOOK at the TREMENDOUS liability they will face and the enormous Iraqi wealth that would be TRANSFERRED to all of us! They would do this for WHAT reason? I seem to have MISSED how that helps THEM!

A LOP not help??? You've GOT TO be JOKING! The FACT of the matter is, and the SIMPLE TRUTH is that it helps THEM a BUNCH! It just doesn't help US!!

I wonder how much SLEEP either Maliki (or Shabibi, for THAT matter) would LOSE if Iraq got to KEEP that wealth and WE didn't GET ANY of it?