The abolition of the removal of three zeros from the currency

[estephan]

No. Selling oil brings wealth INTO the country. An RV at the silly level of $1 would send it, and far more, back out in exchange for dinars held outside the country.

I beieve that the objective IMHO is to be very quick and somewhat painful eliminating succesful speculators post RV

By painful I mean missing the boat

Edited August 1, 2011 by estephan

[Dinar_o'saurs]

Not to throw a wrench in the works here but, how will Iraq deal with 3 currencies in the mix?

1. The current currency

2. New lower denoms.

3 The USD.

As someone stated above..... if there is a lop it would have to be in country. Then (or simultaneously) an RV will bring everything on an even playing field (say 1:1) with all three currencies, thus pulling the 3 zero notes, eliminating the USD from their circulation and ushering in the lower notes.

Our three zero notes will not be affected. At the higher rate.

I can see this as a possible scenario.

[jg167]

I beieve that the objective IMHO is to be very quick and somewhat painful eliminating succesful speculators post RV

By painful I mean missing the boat

I don't know what this means. After an RV, at the very least a few, even 1T dinars will come in for exchange. They have to have or be able to get the foreign currency to support the new rate. If that was 1 IQD to 1 USD they would need 1T USD, which is more then 20x Iraq's GDP, let alone its dollars reserves. And that is only if 1T come in, what about 5 or 10 (with 59T out there, a lot could come in for exchange. Edited August 1, 2011 by jg167

[estephan]

I don't know what this means. After an RV, at the very least a few, even 1T dinars will come in for exchange. They have to have or be able to get the foreign currency to support the new rate. If that was 1 IQD to 1 USD they would need 1T USD, which is more then 20x Iraq's GDP, let alone its dollars reserves. And that is only if 1T come in, what about 5 or 10 (with 59T out there, a lot could come in for exchange.

Well that would explain why you dont own any Dinar , Iraq that is

[jg167]

Not to throw a wrench in the works here but, how will Iraq deal with 3 currencies in the mix?

1. The current currency

2. New lower denoms.

3 The USD.

As someone stated above..... if there is a lop it would have to be in country.

It will be for all dinar holders, inside or outside Iraq. This brings the dinar to near (86 cents) parity with the dollar. If they want to have a 12% RV as well, they could do that too. i.e. lower the current exchange rate from 1170 to an even 1000 dinar per dollar and RD 1000:1 . So a 1000 current dinar note = 1 new dinar note = 1 USD.

Well that would explain why you dont own any Dinar , Iraq that is

Huh? I actually do own dinars. I think it was a mistake now, but I leaped before I fully looked.

[firefightingjunkie]

It will be for all dinar holders, inside or outside Iraq. This brings the dinar to near (86 cents) parity with the dollar. If they want to have a 12% RV as well, they could do that too. i.e. lower the current exchange rate from 1170 to an even 1000 dinar per dollar and RD 1000:1 . So a 1000 current dinar note = 1 new dinar note = 1 USD.

Huh? I actually do own dinars. I think it was a mistake now, but I leaped before I fully looked.

you also typed before you thought you ***********

[Dalite]

you also typed before you thought you ***********

It is always nice to see someone bring something useful to the discussion.

This, however, wasn't it...

FAIL

[Alex38]

I'm going to guess you are a lot newer to this than I am and many others are...I assure you I have been where you are too....If you only want to hear go rv....there are great sites for that....but you might try to see for yourself what the possibilities are.

GO RV!!!!!

[estephan]

It will be for all dinar holders, inside or outside Iraq. This brings the dinar to near (86 cents) parity with the dollar. If they want to have a 12% RV as well, they could do that too. i.e. lower the current exchange rate from 1170 to an even 1000 dinar per dollar and RD 1000:1 . So a 1000 current dinar note = 1 new dinar note = 1 USD.

Huh? I actually do own dinars. I think it was a mistake now, but I leaped before I fully looked.

Totally Disagree with your assessment , No offense mind you but your wanting to strike a balance and thats not what RV does, Your still under the impression that the dollar has something to do with this. Once again ,,it is the dinar ,,,,not the dollar , they can peg to ,,,,whatever they want and they are looking at that! HCL might end up allowing Iraq to receive various currency in return for their Oil as part of UN reparations for the citizens of Iraq post saddam era. Which would be a whole new ballgame!!

[Dinar_o'saurs]

It will be for all dinar holders, inside or outside Iraq. This brings the dinar to near (86 cents) parity with the dollar. If they want to have a 12% RV as well, they could do that too. i.e. lower the current exchange rate from 1170 to an even 1000 dinar per dollar and RD 1000:1 . So a 1000 current dinar note = 1 new dinar note = 1 USD.

@ jgt167....... Okay, lets say it plays out the way you posted. This would be a great way for Iraq to give the dozens of countries that forgave them their debt the "royal salute". They would/could RV again within 30, 60 or 90 days later to a higher rate once the 3 zero notes (in country) are pulled in. It's a delicate balance to establish their currency and their economy.

Totally Disagree with your assessment , No offense mind you but your wanting to strike a balance and thats not what RV does, Your still under the impression that the dollar has something to do with this. Once again ,,it is the dinar ,,,,not the dollar , they can peg to ,,,,whatever they want and they are looking at that! HCL might end up allowing Iraq to receive various currency in return for their Oil as part of UN reparations for the citizens of Iraq post saddam era. Which would be a whole new ballgame!!

@ estephan...... I see where you're going. Good points!

Edited August 1, 2011 by Dinar_o'saurs

[jg167]

Totally Disagree with your assessment , No offense mind you but your wanting to strike a balance and thats not what RV does, Your still under the impression that the dollar has something to do with this. Once again ,,it is the dinar ,,,,not the dollar , they can peg to ,,,,whatever they want and they are looking at that! HCL might end up allowing Iraq to receive various currency in return for their Oil as part of UN reparations for the citizens of Iraq post saddam era. Which would be a whole new ballgame!!

Likewise no offense, but you are speaking gibberish. It doesn't matter what currency the dinar is pegged to, the dollar has established exchange rates with all other currencies so pegging to the euro or even a basket will set an exchange to the dollar as well. They would then have to support those new exchange rates, and they do not have the funds (in dollars or euros or anything) to do so. The total value of Iraq's oil reserves in the ground is only about $14T USD at $100/barrel, and they need that money to rebuild so no way will they mortgage their future by making some deal to exchange future oil at anything less then its full market price. An RV at anything even approaching $1 would be wonderful, but its only a fantasy. Fiscal realities show it can not happen.

jgt167....... Okay, lets say it plays out the way you posted. This would be a great way for Iraq to give the dozens of countries that forgave them their debt the "royal salute". They would/could RV again within 30, 60 or 90 days later to a higher rate once the 3 zero notes (in country) are pulled in. It's a delicate balance to establish their currency and their economy.

Sure they can continue to RV, that would be expected. As GDP goes up faster then the money supply they will have to raise the value of the dinar. But that only will be maybe 2x - 3x over several years. No way can it be 1000x overnight. Further I see no way that they can have different rules for in-country and out of country RD. That would just be chaos, the IMF/WTO et al would never allow it. It would also be political, if not actual, suicide for the current government to make any deal that makes foreigners wealthy at the expense of Iraq and Iraqis.

[keepmwlknfny]

Well how do you know the reserves haven't drastically went up in the last 7 months since the last audit?? Al lot of deals have bennifit done and a lot of debt forgiven.. Oh and haven't they been selling dollars for dinars? A lot can happen in 7 months and a lot has..

Because the monthly financial indicators from the CBI show no large gains, and actually it shows it dropped from June to July.........but its been pretty flatlined for awhile with no big gains or loss for sometime now....

Totally Disagree with your assessment , No offense mind you but your wanting to strike a balance and thats not what RV does, Your still under the impression that the dollar has something to do with this. Once again ,,it is the dinar ,,,,not the dollar , they can peg to ,,,,whatever they want and they are looking at that! HCL might end up allowing Iraq to receive various currency in return for their Oil as part of UN reparations for the citizens of Iraq post saddam era. Which would be a whole new ballgame!!

HCL wont change what currency they get......thats something determined by all the OPEC nations and the USD will continue to be used for years to come......If something other then USD is used, the US is in trouble which will directly affect the dinar......sure they could change what they are pegged to but there are no signs of that happening....

Part of the motive for war with Iraq was because they werent accepting USD as payment for oil and were looking for euro and other currencies which is a big no no.......so you can bet that it wont change anytime soon!

[Chilliherb]

"

"How? How will they pull them from circulation? They would have to exchange them for something. Are you going to turn yours in? I know Im not and we as speculators hold trillions alone". Look at it this way, they will force us to exchange into our respective currencies by raising the value. .

Unfortunately I think they can force you to exchange because they will set a deadline and if you do not comply the currency will be null and void after a certain date.

I do not know honestly which way this will head I was counting on the US Govt connection heating the issue up, but it does not seem to be gaining any momentum at the moment.

I can't help thinking they could do this a lot better

Cheers Chilli B)

[speculatorsRIDE]

Great read. Thanks everyone for your opinions. Very informative read.