Why Would They Chance The 50 Note

[bluejay]

With all the speculation about the 000-being removed. If they take back the large bills 25,000 /10,000 / 5,000 / 1,000 / 500 / 250. Why would they take back the 50's, does anyone think they could stay, and wouldn't that be great if we could hold onto them and wait for the value to go up in the event the rate comes out low...Or maybe I'm just nuts, not sure why I'm the only one thinking this way. Curious if anyone agrees or knows why the will get called back too...Thanks here's to us all having a little GREEN with or turkey this ThanksGiving..

CHANCE = CHANGE IN THE TITLE SORRY..

[pocono]

With all the speculation about the 000-being removed. If they take back the large bills 25,000 /10,000 / 5,000 / 1,000 / 500 / 250. Why would they take back the 50's, does anyone think they could stay, and wouldn't that be great if we could hold onto them and wait for the value to go up in the event the rate comes out low...Or maybe I'm just nuts, not sure why I'm the only one thinking this way. Curious if anyone agrees or knows why the will get called back too...Thanks here's to us all having a little GREEN with or turkey this ThanksGiving..

CHANCE = CHANGE IN THE TITLE SORRY..

I suspect because the new notes will have a different look and will be in 3 languages....my opinion only..

[Hamels]

I suspect because the new notes will have a different look and will be in 3 languages....my opinion only..

I agree, I think that all old notes will be taken off market in a few years

[Aqua Dude]

CBI said they will delete three zeros from the iraqi dinar causing and increase in three zeros

they are talking about deleting three zeros from exchange rate...not the paper currency

current exchange rate = .00086

new exchange rate = .86

ALL IMO

[Francie26]

CBI said they will delete three zeros from the iraqi dinar causing and increase in three zeros

they are talking about deleting three zeros from exchange rate...not the paper currency

current exchange rate = .00086

new exchange rate = .86

ALL IMO

If they insist on removing 0's, I pray you are right about which ones they will eliminate.

[audigger]

my quess would be more like the usd

25,000 =25.00

10,000=10.00

5,000=5.00

1,000=1.00

the 500 and 250 would be a coin..jmo and come out at 1 to 1

[FreckledFuzz]

II am in no position right now to provide a link (on the road)..but here's the kicker to this:

Would appreciate if someone could find and post....I know someone already did here.

If they do anything with a currency, whatever is done is across the board to all denominations.

That being said, in the same currency you can not issue and have circulating 2 notes worth the same value.

Example

They already have a 50 dinar note. *If* it were to LOP it would be 5 cents. The CBI could NOT issue another 50 note into circulation and have them be worth 2 different values.

As Okie Dokie says

'Nuff said -

[IchDien]

Must I say it, again? They are deleting the three zeros from the current value, not the currency.

[keepmwlknfny]

Must I say it, again? They are deleting the three zeros from the current value, not the currency.

You should probly let Shabibi know that he has it all wrong then!!! LOL

[HopefulTxn]

With all the speculation about the 000-being removed. If they take back the large bills 25,000 /10,000 / 5,000 / 1,000 / 500 / 250. Why would they take back the 50's, does anyone think they could stay, and wouldn't that be great if we could hold onto them and wait for the value to go up in the event the rate comes out low...Or maybe I'm just nuts, not sure why I'm the only one thinking this way. Curious if anyone agrees or knows why the will get called back too...Thanks here's to us all having a little GREEN with or turkey this ThanksGiving..

CHANCE = CHANGE IN THE TITLE SORRY..

It is all speculation, but the decision comes down to whether an individual wants to pay the huge markup in price for 50 dinar notes over that of 25k notes.

If there is no RD, and all notes are honored at the full value, then buying the lower denoms at the outrageous values many charge for them *might* be worthwhile.

If there is an RD, then it will not matter whether you have 25K notes or 50 notes, they will all be treated the same and those that paid the increased rates for the lower denoms will have essentially no way of recouping any of their money.

While nobody wants the RD to happen, it comes down to how comfortable you feel that it will not happen. Currently, there is one dealer whose online prices are 100,000 dinar in 50 dinar notes for $1,700 USD. That would be $17,000 USD for 1 million dinar in that denomination from that online dealer (where they charge $1,180 for 1 million dinar in 25K notes). If an RD occurred, the people that purchased those at that price would never be able to recover any of the money they put into them.

[IchDien]

You should probly let Shabibi know that he has it all wrong then!!! LOL

You're saying he's deleting three zeros from the currency? He says otherwise, in fact, why would they delete three zeros from the currency and issue coins and 50k and 100k notes (meant to be trade between banks, much like our 1000 notes). Either way, as long as they RV at a rate high enough for us to make a profit, who cares what they do with their currency?

[Francie26]

Must I say it, again? They are deleting the three zeros from the current value, not the currency.

Just keep saying it. I love reading it.

[keepmwlknfny]

You're saying he's deleting three zeros from the currency? He says otherwise, in fact, why would they delete three zeros from the currency and issue coins and 50k and 100k notes (meant to be trade between banks, much like our 1000 notes). Either way, as long as they RV at a rate high enough for us to make a profit, who cares what they do with their currency?

That's what all the deleting the zeros articles mean....changing the currency, exchanging at a 1000 to 1 ratio, and then when the exchange period is over, the value of the new dinars will go up. Its a classic RD that has been explained....the idea/bill to print 50k and 100k notes withered away and was never officially put into action/plan yet....

We should care very greatly what they do with their currency cause it will affect us all.....

[zantac]

they are talking about deleting three zeros from exchange rate...not the paper currency

current exchange rate = .00086

new exchange rate = .86

ALL IMO

Not a freaking chance of this above happening.

You would have a better chance of getting rich to go to a betting shop & wagering $50 that Saddam Hussein, Osama Bin Laden & Colonel Gaddafi will reincarnate in March 2012 as the heads of the UN, IMF & the WORLD PEACE MOVMENT COUNCIL.

[Roadie]

For the Lop guys....

If they are going to remove the zeros from currency ie. 25,000 = 25. Does that mean they are going to remove 3 zeroes from bank accounts too? Example Ahkeem has 1,000,000 dinars in Bank of Iraq is he going to wake up with 1,000 the account.

[HopefulTxn]

For the Lop guys....

If they are going to remove the zeros from currency ie. 25,000 = 25. Does that mean they are going to remove 3 zeroes from bank accounts too? Example Ahkeem has 1,000,000 dinars in Bank of Iraq is he going to wake up with 1,000 the account.

If an RD happens, it will effect the notes and the bank accounts the same way.

If Ahkeem had 1,000,000 dinar in his account, worth about $856, his account would be changed to 1,000 dinar but still be worth about $856.

Obviously nobody wants an RD to happen, but that is how it would happen based on the many examples of other countries that performed an RD.

[Roadie]

Thanks HopefulTxn

I guess a Warka account for insurance is not necessary against a lop.

Why would they need to RD? Their inflation is in check and they have a huge reserve? If they opened their books to be internationally traded wouldn't that indicate a RV?

[HopefulTxn]

Thanks HopefulTxn

I guess a Warka account for insurance is not necessary against a lop.

Why would they need to RD? Their inflation is in check and they have a huge reserve? If they opened their books to be internationally traded wouldn't that indicate a RV?

RD's are used to remove effects of inflation. They do not have to be suffering from high or hyper inflation at the time they perform an RD, but simply have had to had their monetary system get 'bloated' by inflationary problems.

The reason many talk about RD's is that when the dinar held a high value there were reportedly only about 25 billion dinar in circulation, compared to the 25 trillion or so that is stated in the CBI financials available on their website. And that is only the physical dinar, that does not include the electronic/digital dinar. Other countries that have performed RD's had similar situations.

RD's are a monetary illusion, but one with a purpose. RD increase the value per currency unit, helps to instill confidence in their citizens for their national currency and also allows for faster growth of value to the currency based on reserve increases. Example, if a central bank has 50 trillion units of currency to value, and they add $5 billion USD to their foreign reserves to back that currency, the value increase per currency unit is $0.0001 - but if that central bank does an 1,000:1 RD which reduces that currency volume to 50 billion, then for each $5 billion USD that is added to their foreign reserves the value increase would be $0.10 per currency unit.

Again, nobody wants an RD to happen, except for maybe Iraq. Many think it is a possibility and many believe it to be a probability of an RD occurring. We have no way of influencing their decision, so we sit and wait and wait and wait to see what they will finally do.

In regards to the Warka account (or other bank) - the one benefit that exists on that front is that while you are waiting for them to make the change in currency you are collecting interest. Another benefit could also be a much cheaper exchange cost back to USD than the bank or dealer spreads that will be charged in the US.

Edited October 29, 2011 by HopefulTxn

[keepmwlknfny]

RD's are used to remove effects of inflation. They do not have to be suffering from high or hyper inflation at the time they perform an RD, but simply have had to had their monetary system get 'bloated' by inflationary problems.

The reason many talk about RD's is that when the dinar held a high value there were reportedly only about 25 billion dinar in circulation, compared to the 25 trillion or so that is stated in the CBI financials available on their website. And that is only the physical dinar, that does not include the electronic/digital dinar. Other countries that have performed RD's had similar situations.

RD's are a monetary illusion, but one with a purpose. RD increase the value per currency unit, helps to instill confidence in their citizens for their national currency and also allows for faster growth of value to the currency based on reserve increases. Example, if a central bank has 50 trillion units of currency to value, and they add $5 billion USD to their foreign reserves to back that currency, the value increase per currency unit is $0.0001 - but if that central bank does an 1,000:1 RD which reduces that currency volume to 50 billion, then for each $5 billion USD that is added to their foreign reserves the value increase would be $0.10 per currency unit.

Again, nobody wants an RD to happen, except for maybe Iraq. Many think it is a possibility and many believe it to be a probability of an RD occurring. We have no way of influencing their decision, so we sit and wait and wait and wait to see what they will finally do.

In regards to the Warka account (or other bank) - the one benefit that exists on that front is that while you are waiting for them to make the change in currency you are collecting interest. Another benefit could also be a much cheaper exchange cost back to USD than the bank or dealer spreads that will be charged in the US.

That's probly one of the best overall summaries on the RD I've read in a while.....more people should read this and understand it at least....the RD by deleting the zeros is the last thing we want!

[zigmeister]

The thing is "WE ALREADY KNOW THE RD TRIP"! There really is no more to be said about that, that has not been said. You RD folks remind me of a story. I plan on taking my family for a picnic on the crest one spring day, but someone says, "It's gonna rain. Best forgo that picnic. I saw it on the weather channel. Won't be worth your while."

As it turns out it was the most beautiful day that anyone had ever seen, but I missed it, because I listened to other's forecast from a channel on TV.

It could have rained, but it did not. I do know a rainstorm can ruin a picnic, and if it does, I still have the basket, and I tried to make it happen. What more can you do really?

[DinarBot]

Steady as she goes. Stay the Course. Hold on to your Cash. Tight.

[HopefulTxn]

The thing is "WE ALREADY KNOW THE RD TRIP"! There really is no more to be said about that, that has not been said. You RD folks remind me of a story. I plan on taking my family for a picnic on the crest one spring day, but someone says, "It's gonna rain. Best forgo that picnic. I saw it on the weather channel. Won't be worth your while."

As it turns out it was the most beautiful day that anyone had ever seen, but I missed it, because I listened to other's forecast from a channel on TV.

It could have rained, but it did not. I do know a rainstorm can ruin a picnic, and if it does, I still have the basket, and I tried to make it happen. What more can you do really?

A question was asked and a viewpoint was given. The last I looked, that was what a forum was all about.

[zigmeister]

A question was asked and a viewpoint was given. The last I looked, that was what a forum was all about.

True, but every picnic we go on.....here comes the weatherman.

And alright who negged me?

[dhardage]

Thanks here's to us all having a little GREEN with or turkey this ThanksGiving..

CHANCE = CHANGE IN THE TITLE SORRY..

jello mold?

[tampa1000]

Does everyone posting here really think the CBI is going to let you know the trueth about their plan? Everyone one please remember what China did, China said they would NOT RV and next day they did just that a while back.

Please stay positive, Iraq WILL RV when you least expect it.