My .10 cent RV theory

[steveflex7]

I just wanted to comment on what Adam has said about his .10 cent rate prediction. Now, I understand that Iraq needs to pull in the higher value notes as soon as possible. I believe that most of us who hold currency outside of the country would cash in right away, but this RV isn't about us. It is about the Iraqi citizens and giving them a better life. So heres what I'm thinking....supposedly the lower denoms are modeled after our currency here in the states, the 1,5,10,20,50,100. From what we understand these notes are at the banks ready to be distributed to the Iraqi people in the beginning of 2012. Now, if they were to RV at .10 , then those lower denoms still would not have much value to the Iraqi citizens, and they wouldn't be motivated to turn in there higher notes. I strongly believe that they will RV at or close to the dollar, and the new rate will correspond with the new notes. This is just something I have been thinking about. Please chime in and share your thoughts.

[lotsofdinar]

If you want to make the dinar on par with the dollar, it would be simpler (and cheaper for Iraq), to do what they say they want to do and drop the three zeros from the currency. The effect would be to make the value of the dinar about equal to $1. An actual RV would make no difference to the average Iraqi, because it would only help them if they imported stuff from outside the country. In country, prices for stuff would simply be adjusted up the value of the RV. Zero sum game for them.

Am I missing something here?

[kjwayne]

I agree. I see no benefit to anyone with a rate of $.10 per dinar. We keep relating all that we hear to our situation. Iraq is NOT thinking of what WE want. They want what will be best for THEM! That means IN Country. I don.t know how much the average Iraqi holds in Dinars , but I bet it's alot less than 500,000 .Iraq will do what IS best for THEM, PERIOD!! $.10 won't do it!! IMO!!! Merry Christmas to all! I hope we ALL have a great new year, RV included!!

[GPCarter]

I agree. I see no benefit to anyone with a rate of $.10 per dinar. We keep relating all that we hear to our situation. Iraq is NOT thinking of what WE want. They want what will be best for THEM! That means IN Country. I don.t know how much the average Iraqi holds in Dinars , but I bet it's alot less than 500,000 .Iraq will do what IS best for THEM, PERIOD!! $.10 won't do it!! IMO!!! Merry Christmas to all! I hope we ALL have a great new year, RV included!!

See my post on PD and get my opinion as a forex trader on why I think a .10 cent RV would greatly hurt Iraq and the markets. For their sake, and not just ours, I hope it does come in at least around a $1 or it could mean big, big trouble. IF they did come out at .10 cents me and a lot of other traders would be very happy and we could make 100 times more than we would from cash in of the dinar we hold now BUT it would not be good for Iraq or the markets.

I would repeat the post here BUT I notice that there is a lot of unchecked bashing and name calling here at times so I did not want to risk it. There are a lot of good people here but the few who bash seem to have the loudest voices so I have stayed away. I stopped posting here or sharing any more trader insights because of fear of getting bashed or disrespected.

I truly hope those of you that I helped have been practicing forex trading and getting better. When the RV hits there will surely be a broker that offers IQD. There are currently brokers who offer exotic currency pairs that include Dinar from Jordan, Kuwait and other countries so IQD is sure to follow.