Whats the difference between a LOP and Redenomination?

[Ridewithme38]

Ok, i'm confused i thought a LOP was knocking three zero's off the notes and three zero's off the exchange rate....and that this is the same as a Redenomination...But it seems to be different on this forum.....

What's the difference?

[Dalite]

Ok, i'm confused i thought a LOP was knocking three zero's off the notes and three zero's off the exchange rate....and that this is the same as a Redenomination...But it seems to be different on this forum.....

What's the difference?

LOP is a pumper exercise in social engineering.

The term was spread far and wide to discourage research in to redenomination.

The term carries a very negative connotation, and it has served them well.

I equate with taking by force; as in castrating cattle, pruning shrubs, beheading, amputating, etc...

[billiebobt]

Then you should read the other 1000 posts about it. Do a search and you'll find an answer.

[Ridewithme38]

LOP is a pumper exercise in social engineering.

The term was spread far and wide to discourage research in to redenomination.

The term carries a very negative connotation, and it has served them well.

I equate with taking by force; as in castrating cattle, pruning shrubs, beheading, amputating, etc...

Then you should read the other 1000 posts about it. Do a search and you'll find an answer.

lol! that doesn't help me understand the difference

WHICH ONE IS THIS:

Ok in one...the have 25,000 notes worth $21 they decide to print 25 dinar notes worth $21, removing three zero's from the notes AND the exchange rate...there is an exchange period when they can be used concurently...but they are worth the same...and after the exchange period is over...all the new notes have three less zero's, but the same value as the old three zero notes

WHATS THE OTHER ONE??

Edited August 18, 2011 by Ridewithme38

[Raleighwood]

Technically there is no such thing as a lop in currency speculation but its used as a slang word for redenomination......so to keep your answer simple so you won't be confused, they are the same thing.....they both equal us not making what we all hope for!

[Dalite]

lol! that doesn't help me understand the difference

WHICH ONE IS THIS:

Ok in one...the have 25,000 notes worth $21 they decide to print 25 dinar notes worth $21, removing three zero's from the notes AND the exchange rate...there is an exchange period when they can be used concurently...but they are worth the same...and after the exchange period is over...all the new notes have three less zero's, but the same value as the old three zero notes

WHATS THE OTHER ONE??

LOP doesn't exist.

Folks were programmed to equate anything other than a large RV with taking 3 zeros off the money and not changing the exchange.

They called that a LOP and assured you it would never happen.

It is a ploy to keep you buying final.

All gurus and Pumpers had a mantra "it will never LOP", which was true as there in no economic tool called a LOP.

It is a Pumper's tool, and it has been uber effective...

[Ridewithme38]

Ahh ok i think i got it

A Revalue is when they take the zero's off the exchange rate but leave the notes...so 25,000 dinar worth $21 becomes 25,000 dinar worth $21,000

A Redenomination is when they take the zero's off the exchange rate AND the note so 25,000 dinar worth $21 becomes 25 dinar worth $21

A LOP is when they take the zero's off the notes but leave the exchange rate....So 25,000 worth $21 becomes 25 dinars worth 02cents??

Damn I'm still not getting it...25 dinar is already worth .02cents

[sportfisher]

Technically there is no such thing as a lop in currency speculation but its used as a slang word for redenomination......so to keep your answer simple so you won't be confused, they are the same thing.....they both equal us not making what we all hope for!

bingo...........+1

Ahh ok i think i got it

A Revalue is when they take the zero's off the exchange rate but leave the notes...so 25,000 dinar worth $21 becomes 25,000 dinar worth $21,000

A LOP/Redenomination is when they take the zero's off the exchange rate AND the note so 25,000 dinar worth $21 becomes 25 dinar worth $21

you had it right until the 3rd line, remember RD/LOP same thing.

and your RV example represents a straight 3 zero lift, but any increase in value would be considered a RV IMO.

bingo...........+1

you had it right until the 3rd line, remember RD/LOP same thing.

and your RV example represents a straight 3 zero lift, but any increase in value would be considered a RV IMO.

just a side note,

adding additional denominations (higher or lower) to an existing currency is NOT a redenomination.

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-dic.../Redenomination

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

Demonitisation

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

Read more:

Edited August 18, 2011 by sportfisher

[sportfisher]

http://www.investopedia.com/terms/r/redenomination.asp#axzz1VRe0nJjK

[Mazzz27]

so a redenomination is basically a negative revaluation?

[ssgaldridge]

so a redenomination is basically a negative revaluation?

A lop is a term used by pumpers that refer to the deletion of the 3 zeros. Redenomination is moving the decimal point in any direction. For example 1000 = 1, or 100 =1 and .00086 =.86 an rd could be the removal of 3 zeros or 1 zero. Or like they did for inflation they added zeros to the currency.

[HopefulTxn]

so a redenomination is basically a negative revaluation?

Redenomination is not a 'negative' revaluation, but a value neutral revaluation. A current 25K note would be worth the same as a new 25 dinar note, both having a value of ~$21.50.

In a redenomination the current 25K notes (IQD) would remain valued at $0.00086 per dinar, but a new currency (ie. NID) would be issued that would have the zeros removed from both the notes and value, ie 25 new dinar would have an exchange value of $0.86 per dinar.

In Iraq, a person would be able to purchase an item valued at $40 USD with either (2) 25K notes OR using (2) 25 new notes.

RD is simply a tool that a central bank can use to remove the 'bloating' of a monetary system due to inflationary problems without effecting the actual value of the money supply. A monetary system valued at $50 billion USD before an RD would still be a $50 billion USD valued monetary system after an RD, the only thing that has changed is how that value is represented in their currency for it's citizens and foreign investors.

[SurfingTheDinarWave]

A lop is a term used by pumpers that refer to the deletion of the 3 zeros. Redenomination is moving the decimal point in any direction. For example 1000 = 1, or 100 =1 and .00086 =.86 an rd could be the removal of 3 zeros or 1 zero. Or like they did for inflation they added zeros to the currency.

Re-denomination and lop are one in the same lop being slang, re-denominating a currency is very simple and has nothing to do with the decimal point in the exchange rate, when you move the decimal point it is called re-valuation two very different words.

Re-denominating a currency means simply to bring the large notes in and send the small notes out in their place for example: I have 2x10,000dinar notes = 20,000 I go to the bank and turn them in they give me 200x100dinar notes or any combination equal too the 20,000dinar I brought in.

when you talk about moving the decimal point or changing the numbers on the exchange rate now you are talking about re-valuing the currency those are 2 different beasts and the case of Iraq they are doing both. Which is why you hear Shabibi talk about both, he needs to get the large note out of the hands of the public and into the banks by giving them lower denominations in exchange, then he needs to re-value the currency by changing the exchange rate to make it more valuable thus increasing the buying power of the low notes he just passed out in the first step. It's a 2-step process not a one lump process that is what confuses people they miss that fact it's 2-steps not 1.

Now that we all understand what is going to happen lets end the talks about it cause your all just worrying yourselves causing unnecessary fear and stress in your lives this leads to medical issues and nobody needs those!

[Dalite]

Google is your friend

Dropping Zeos - Research Paper

Redenomination example

If you will take a few minutes to look over those documents, you will find that folks who have done this sure didn't follow your concept of how it is done.

Not saying a RD is definitely going to happen, but if it does, those links will gone an accurate portrayal of everything you may want to know in a factual format...

Re-denomination and lop are one in the same lop being slang, re-denominating a currency is very simple and has nothing to do with the decimal point in the exchange rate, when you move the decimal point it is called re-valuation two very different words.

Re-denominating a currency means simply to bring the large notes in and send the small notes out in their place for example: I have 2x10,000dinar notes = 20,000 I go to the bank and turn them in they give me 200x100dinar notes or any combination equal too the 20,000dinar I brought in.

when you talk about moving the decimal point or changing the numbers on the exchange rate now you are talking about re-valuing the currency those are 2 different beasts and the case of Iraq they are doing both. Which is why you hear Shabibi talk about both, he needs to get the large note out of the hands of the public and into the banks by giving them lower denominations in exchange, then he needs to re-value the currency by changing the exchange rate to make it more valuable thus increasing the buying power of the low notes he just passed out in the first step. It's a 2-step process not a one lump process that is what confuses people they miss that fact it's 2-steps not 1.

Now that we all understand what is going to happen lets end the talks about it cause your all just worrying yourselves causing unnecessary fear and stress in your lives this leads to medical issues and nobody needs those!

[Darin]

Some may argue:

A Re-denomination is introducing several lower face-value notes.

Or, a completely new currency to be put in to replace the old. (In this case, 2004 would be an example of a year they had a Re-denomination)

Exchanges were 1:1... (W/ the exception of Swiss Dinars)

[estewart]

Some may argue:

A Re-denomination is introducing several lower face-value notes.

Or, a completely new currency to be put in to replace the old. (In this case, 2004 would be an example of a year they had a Re-denomination)

Exchanges were 1:1... (W/ the exception of Swiss Dinars)

There's no argument. A bill is in Parlement now pertaining to the raising of three zeros and the new currency.

[jmw]

Some may argue:

A Re-denomination is introducing several lower face-value notes.

Or, a completely new currency to be put in to replace the old. (In this case, 2004 would be an example of a year they had a Re-denomination)

Exchanges were 1:1... (W/ the exception of Swiss Dinars)

Not to sure what to argue....Lop = redenomination and redenomination = Lop...one is just a slang term for the other....

a redenomination is replacing the entire currency of a country with a new currency....not just adding new notes...and not just adjusting the value of the current notes....it is replacing ALL currency...physical and electronic...large denoms and small denoms....ALL

[estewart]

Here's one way to understand the RD and the new NEEDED currency deal.

In the US it can cost one dollar to buy a can of cola. In Iraq, it prolly costs more, but for the sake of this explanation, let's say it is the same. One Dollar.

So in Iraq, then, one can of cola costs one US Dollar. . . or, 1,000 Dinars.

Whew! One thousand Dinars sounds like a whole lot of money, but it is not. Those extra zeros confuse things. So, let's get rid of them!

That's what the RD is for: Elimination of all those darn zeros!

AFTER the bill now in Parliament passes and the new needed currency is released, THEN one can of cola will cost, one US Dollar, or one OLD 1000 Dinar, or one NEW 1 Dinar bill.

That last provision simplifies matters a great deal.

Edited August 22, 2011 by estewart

[twinmom]

I like this conversation....

Sooooo, the cola example makes sense to me and goes along with a few of the articles that have stated that the two currencies will run concurrent with each other (at least for a while). Right? Am I reading this correctly?

[BlueOrchid919]

Here's one way to understand the RD and the new NEEDED currency deal.

In the US it can cost one dollar to buy a can of cola. In Iraq, it prolly costs more, but for the sake of this explanation, let's say it is the same. One Dollar.

So in Iraq, then, one can of cola costs one US Dollar. . . or, 1,000 Dinars.

Whew! One thousand Dinars sounds like a whole lot of money, but it is not. Those extra zeros confuse things. So, let's get rid of them!

That's what the RD is for: Elimination of all those darn zeros!

AFTER the bill now in Parliament passes and the new needed currency is released, THEN one can of cola will cost, one US Dollar, or one OLD 1000 Dinar, or one NEW 1 Dinar bill.

That last provision simplifies matters a great deal.

Excellent in its simplicity! Kudos!

@twinmom: yes both currencies (the old we now have and the new soon to come) will be used at the same time. The CBI has stated they will co-exist for 3 years, after which all the old will have been removed from circulation and only the new will remain in use.

[twinmom]

For some reason that makes perfect sense to me, thanks! Now, let me see if I can verbally communicate this to a family member without goofing it up!

PS. I appreciate your patience to simplify this. Thank goodness someone else had the guts to ask the question, I was to chicken!

[Darin]

There's no argument. A bill is in Parlement now pertaining to the raising of three zeros and the new currency.

Yes, it appears to be a re-denomination to introduce a new currency with 3 languages.

Doesn't necessarily mean 1000:1 LOP

sorry

Your viewing it too negatively

Not to sure what to argue....Lop = redenomination and redenomination = Lop...one is just a slang term for the other....

a redenomination is replacing the entire currency of a country with a new currency....not just adding new notes...and not just adjusting the value of the current notes....it is replacing ALL currency...physical and electronic...large denoms and small denoms....ALL

2004 was a R/D (Re-denomination)

But it was not a LOP.

Here's one way to understand the RD and the new NEEDED currency deal.

In the US it can cost one dollar to buy a can of cola. In Iraq, it prolly costs more, but for the sake of this explanation, let's say it is the same. One Dollar.

So in Iraq, then, one can of cola costs one US Dollar. . . or, 1,000 Dinars.

Whew! One thousand Dinars sounds like a whole lot of money, but it is not. Those extra zeros confuse things. So, let's get rid of them!

That's what the RD is for: Elimination of all those darn zeros!

AFTER the bill now in Parliament passes and the new needed currency is released, THEN one can of cola will cost, one US Dollar, or one OLD 1000 Dinar, or one NEW 1 Dinar bill.

That last provision simplifies matters a great deal.

Most Asian countries do just fine with all the zeros.

Heck, even Singapore has a 10,000 note.. But their 10,000 note is actually worth like $8-9k

They've become accustomed to the 000s... For 7 years.... They'll now have to re-adjust to a brand new currency.

how do you gain faith into something that changes every 7-10 years.. ??

I like this conversation....

Sooooo, the cola example makes sense to me and goes along with a few of the articles that have stated that the two currencies will run concurrent with each other (at least for a while). Right? Am I reading this correctly?

Yes, the example is a LOP-example...

But, for myself, I won't start believing that is the end result until

They mention running 2 separate exchange rates: This will be needed, because they'll be running two domestic currencies. Foreign banks will need to know how to properly exchange them. Imagine if they had one exchange rate, and it was $0.86 (1.17) and you walked in with an Iraqi note for 25,000 in some foreign bank. They would think, seems legit to me... And the bank would make a grave mistake.

A new currency symbol, much like IQD but different since IQD is already taken. This symbolizes that the new currency will be separate from the current currency. Turkey did this, they had two.

An official Government document: In other topics, I provided examples of one from Turkey.

Until than, we can speculate, and hope for postivie results while preparing for negative results...

But... I do laugh on how some people play out the scenarios like this LOP already happened and they were filled in on the minor details as they continiously provide examples in all degrees, sectors of their economy and how there is no safe-haven to run to benefit the most.

Twinmom, let me ask you this... Knowing what you know as far as this investment goes U.S. state-side, and you were suddenly in the CBI's shoes... As for articles being released, what would you do? I know what I would do..... Attempt to suppress speculation, that's for sure.

[estewart]

The bill now before Parliament concerns a prospect RD. And the prospective new currency is an attachment to that one bill. It's a PACKAGE DEAL.

[Darin]

The bill now before Parliament concerns a prospect RD. And the prospective new currency is an attachment to that one bill. It's a PACKAGE DEAL.

The bill could easily be the request to release the new currency to run concurrent w/ the existing currency as the "new currency" would fill the obligations & request to include all 3 languages. As the new currency is introduced, the old currency could be removed from circulation. Therefore, no change in face values, or exchange rates, yet it is still a re-denomination.

Or it could be what many of us perceive to be a LOP and most likely be potentially voted down in parliament.

For now, we wait & see.

[jmw]

Yes, it appears to be a re-denomination to introduce a new currency with 3 languages.

Doesn't necessarily mean 1000:1 LOP

sorry

Your viewing it too negatively

2004 was a R/D (Re-denomination)

But it was not a LOP.

it does when they talk about removing or lifting zeros....period...you can't lift zeros without a redenomination....and that is what they are saying they are going to do...there is no way around what they are saying....doesn't mean it will be approved....but that is exactly what they are saying....it's not negative it is what it is.