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If there is a LOP, we all Lose?

RobLe

By RobLe,
in LOPster tank

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RobLe Newbie

RobLe

Posted
Posted

I have read so many times that there could be a LOP. A lop is where they remove 3 zeros from the denomination. So, for those of us that have purchased Dinar recently, let's use the example of 1,000,000 dinar in $25,000 denominations for $1,200. plus $20 shipping and $25 for wire transfer fees. Or a total of $1,245.

If they do a lop, that means our 1,000,000 dinar will have a value of 1,000. That also means that since we paid $1,245 for this million dinar, we will now have a loss of $245 for every 1,000,000 of dinar that we have purchased.

Am I right so far?

And I do understand that this is with a 1 to 1 ratio of $1 to 1,000 dinar (then the lop).

So, my question is: why wouldn't Iraq do this, the lop? I mean they are having issues of inflation where people by bread with 25,000 dinar notes. But if you did the lop, all of a sudden that 25,000 becomes 25. Wouldn't this be a great way for Iraq to help curb inflation?

I guess what I really want to know is why would Iraq not do a lop? What is the chances that they will?

Thanks,

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The Machine Newbie

The Machine

Posted
Posted

Right where do I start with this ........ first of all this has been explained a million times already so I think you should really read some of the old posts on the site.

right if the three 000's are removed the rate for you in the US goes from $1 = 1170 IQD to $1 = 1.17 IQD not 1 to 1 like you said .....

IF it did LOP and exchange rate was 1 to 1 that would be a lop and a devaluation !!!

right so after the removal of the 000's ($1 = 1.17 IQD ) your 1,000,000 IQD is equal to $1,170 ...... yes an initial loss or a small profit depending on when you bought ( if you bought 5 or 6 years ago, removal of the 000's = a small profit)

anyway at the rate of 1.17 the IQD is still undervalued and hopefully over a short period of time this will increase to a decent level .... maybe $3+

that would mean you will stand to make 3 times your initial investmant at a $3 rate.

Personally I hope this does not happen .... a straight up RV would be amazing !!

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DansMBC Newbie

DansMBC

Posted
Posted (edited)

I have read so many times that there could be a LOP. A lop is where they remove 3 zeros from the denomination. So, for those of us that have purchased Dinar recently, let's use the example of 1,000,000 dinar in $25,000 denominations for $1,200. plus $20 shipping and $25 for wire transfer fees. Or a total of $1,245.

If they do a lop, that means our 1,000,000 dinar will have a value of 1,000. That also means that since we paid $1,245 for this million dinar, we will now have a loss of $245 for every 1,000,000 of dinar that we have purchased.

Am I right so far?

And I do understand that this is with a 1 to 1 ratio of $1 to 1,000 dinar (then the lop).

So, my question is: why wouldn't Iraq do this, the lop? I mean they are having issues of inflation where people by bread with 25,000 dinar notes. But if you did the lop, all of a sudden that 25,000 becomes 25. Wouldn't this be a great way for Iraq to help curb inflation?

I guess what I really want to know is why would Iraq not do a lop? What is the chances that they will?

Thanks,

unsure: :unsure: :unsure: :unsure: :unsure: :unsure::unsure: :unsure: :unsure:

GET A WARKA ACCOUNT... :unsure: :unsure: :unsure:

Edited by DansMBC
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Rossenbos Newbie

Rossenbos

Posted
Posted

Dude, I'm by far the nicest person on this forum and I'm not going to answer this question.

This has been chewed on, spat out, eaten up again, shat out, looked at, weighed, smelled at, sucked up, swallowed and puked out 1000s of times on this forum.

Have a look around!

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The Machine Newbie

The Machine

Posted
Posted

Quote

a straight up RV would be amazing !!

End Quote

Of course it would be amazing.....If it just hits 0.10 then we would make roughly 100 times our Capital.

Hopefully more than $0.10 but even at $0.01 I could buy a new house mortgage free, that would make me very happy

I really dont believe in a LOP but hey any return is a bonus ...... even double your money is better than you get in most investments

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sportfisher Newbie

sportfisher

Posted
Posted

A LOP is a redenomination

(there is no profit at all)

If there was a RD and if you were able to exchange for replacement currency, you would be lucky to break even less additional fees.

Redenomination

A reduction in the face value of a currency that a government or central bank makes because of hyperinflation or chronic weakness as a currency. For example, a country may declare that a "new" dollar is worth 1,000 "old" dollars and print new denominations reflecting this change. This may or may not stem the tide of inflation, depending on how the redenomination is approached and what other steps are taken.

http://financial-dictionary.thefreedictionary.com/Redenomination

http://en.wikipedia.org/wiki/Redenomination#Redenomination

Demonitisation

http://en.wikipedia.org/wiki/Demonetisation#Demonetisation

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NotAChance Newbie

NotAChance

Posted
Posted

Iraq will redenominate (lop) their currency. They've said it many times. Who knows when it will occur. It really doesn't matter. It will have no affect on the value of your dinar. Your 25000 note will retain the purchasing power of the new 25 note after the lop. You will neither gain nor lose value. The people that deny a lop will occur are simply delusional. It absolutely will happen. It has been done repeatedly throughout history. An RV, however, has NEVER occurred in the manner that many here claim it will.

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Darin Newbie

Darin

Posted
Posted

Do we all lose? Well, we have to consider a lot of factors. Those that have invested for many years and did not pay much of a mark-up would likely make a small profit.

But for now, lets run the numbers as if you recently invested. Using the example of 1 million IQD:

Going rate for 1 million IQD: $1,200 (give or take)

Add in $25 (COD, Wire-transfer fees, or shipping fees)

Total money invested: $1,225

CBI decides to R/D @ 1000:1

1,000,000 becomes 1,000.

$0.00086 becomes $0.86

1,000 IQD @ $0.86 = $860

This does not include any bank spread or fees.

Which by being conservative, I'll take 5% off the top.

Now, remoiving 5% brings me to $817

** It should be noted that currency traders off about $850+ per million... Which may likely change after official LOP announcement.

So, initial investment $1,200

R/D (Lop), end results, a little over $800..

$400 loss per million.

********************************************

So lets say you hold thinking that a R/V will occur even after R/D and you'll maybe receive some profit or break-even.

To break even, the rate would have to come out to $1.26+ (Higher if the 5% was not conservative enough).. *Note, the inverse of $1.26 = 0.7936, which is similar to the 1170 # we know.

But, if you found places to purchase for reasonable prices, it won't require to much of an increase in the exchange rate to come out ahead.

*************

A LOP is possible.... It is a revenue-neutral event.

Doesn't really solve too much though other than accounting, ease of transactions, and a gives a higher exchange rate (which some say may be more appealing)

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The Machine Newbie

The Machine

Posted
Posted

Iraq will redenominate (lop) their currency. They've said it many times. Who knows when it will occur. It really doesn't matter. It will have no affect on the value of your dinar. Your 25000 note will retain the purchasing power of the new 25 note after the lop. You will neither gain nor lose value. The people that deny a lop will occur are simply delusional. It absolutely will happen. It has been done repeatedly throughout history. An RV, however, has NEVER occurred in the manner that many here claim it will.

If you have said this many times you could have only said it 5 times previous to your post ...... this is your 6th post lol ....... its not gonna happen !!

check out this post from Malcer .... its time you were educated.

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HopefulTxn Newbie

HopefulTxn

Posted
Posted

Right where do I start with this ........ first of all this has been explained a million times already so I think you should really read some of the old posts on the site.

right if the three 000's are removed the rate for you in the US goes from $1 = 1170 IQD to $1 = 1.17 IQD not 1 to 1 like you said .....

IF it did LOP and exchange rate was 1 to 1 that would be a lop and a devaluation !!!

Sorry but your math is wrong - if it RD'd (lopped) and was at a 1:1 rate, that would be and RD with a small RV - not a devaluation as you state.

If a straight redenomination happened it would take 1.17 dinar to equal a dollar, or 1 dinar would equal $0.86. So if they changed it to where 1 dinar equaled $1 that would be a rise in value, not a drop. The fewer foreign currency units it takes to equal a dollar, the higher it's value is against the dollar - since 1 would be less than 1.17 the dinar would have gained in value.

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52%sure Newbie

52%sure

Posted
Posted

Right where do I start with this ........ first of all this has been explained a million times already so I think you should really read some of the old posts on the site.

right if the three 000's are removed the rate for you in the US goes from $1 = 1170 IQD to $1 = 1.17 IQD not 1 to 1 like you said .....

IF it did LOP and exchange rate was 1 to 1 that would be a lop and a devaluation !!!

right so after the removal of the 000's ($1 = 1.17 IQD ) your 1,000,000 IQD is equal to $1,170 ...... yes an initial loss or a small profit depending on when you bought ( if you bought 5 or 6 years ago, removal of the 000's = a small profit)

anyway at the rate of 1.17 the IQD is still undervalued and hopefully over a short period of time this will increase to a decent level .... maybe $3+

that would mean you will stand to make 3 times your initial investmant at a $3 rate.

Personally I hope this does not happen .... a straight up RV would be amazing !!

I havent done any calculations yet but your math looks very "fuzzy". I dont see how you get $1,170 per million. $1 is worth 1,170 dinar. I think that is a completely different calculation.

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