In Country vs. International

[Vinnie Hollis]

Just Out Of Curiosity....

There seems to be Alot of speculation about how the dinar will be exchanged in Iraq and In other Countries. Some Say "It Will LOP and Affect everyone equally:.. and Others Say That "They will just bounty the LARGE DENOMS at a certain rate and then RV later."

But I was thinking that There will be NO CASH-IN FOR THE IRAQIS , they will just exchange OLD NOTES FOR NEW NOTES . I Dont understand how people are saying that Iraqis would become millionaires overnight. If the buying powers and the prices are equally adjusted, then it seems that it would be the same scenario just with a higher level of living..

I maybe wrong but In My opinion.. Whether It RV/RI?RD.. The Monetary Will Be DIFFERENT For The Citizens Of Iraq And The Rest Of The World... We Will CASH-IN for Our Respective Currency (i.e USD, GBP, JPY..etc) and The Will EXCHANGE their OLD/LARGE DENOMS for NEW/SMALLER DENOMS..

Im Looking For Feedback and Understand.. Im Not Saying Im Right But This Is My Opinion

NO BASHERS PLZ....

GO BETTER IRAQ

[BJinMontreal]

I don't recall anyone saying the Iraqis would be instant millionaires - just investors from outside Iraq depending on the rate of course.

My understanding is, the Iarqis would not necessasrily become millionaires in-country, but the value of their holdings would increase significantly as their dinar would now be worth more. They could subsequently exchange currency with 000s for the smaller denominations, or simply deposit them into their bank accounts and withdraw smaller sums later; either way, their holdings would not change, just the purchasing power of those holdings, 1,000,000 dinar in big notes pre-RV will still equal 1,000,000 dinar in small notes post-RV but should they wish to travel abroad, that 25,000 note that used to buy a loaf of bread, would be worth upwards of $75,000 US if one was to believe a $3 rate of RV.

[truthful1]

whatever happens with the dinar, will happen the same way in and out of iraq.

[GaryB]

whatever happens with the dinar, will happen the same way in and out of iraq.

IMF Article 14 allows them to handle currency differently and inconsistently. Article 8 (when they are intl accepted) forces them to treat all outstanding currency the same. So they can RD while under Article 14 and then move to Article 8 and then treat all face value outstanding currency the same. They are following IMF guidelines.

[automag]

I don't have any answers but I have often considered how the issue of Iraqi's vs. International holdings could be handled. With the internet and of course many people who are Iraqi citizens who have re-located to the US....... the news that we all made big bucks is gonna be known in Iraq after the RV......How will the average Iraqi react.?....Don't know but I bet it will loud and angry.On the other hand you just can't allow the citizens to become millionaires...........who is gonna get Ahmed or Mustafa to sweep up the central market after some jihadist blew it up? I know if I had made millions from the RV I would have my family packed away and on the way to somewhere else.

It's an interesting situation and I will love to see the result of the RV.............cause once it does and I cash in they are gonna have a big fight trying to get it back.

Edited August 2, 2011 by automag