Removing the zeros question.

by ibcraig0 Thu Nov 03, 2011 4:04 pm

I keep seeing people talk about removing the 3 zeros like it is a great thing or something that has to happen before the RV. Maybe I don't understand this but IMO if they do that they are DE-valuing the money and making it worthless to us. The way I understand it is that if they remove 3 zeros that makes 1 million dinar worth 1 thousand dinar and if they do that it doesn't matter if it revalues at 10 dollars, we don't get what we are hoping for.

I can only see removing the zeros as a bad thing for us investors hoping for financial salvation. On top of that we would all have to exchange our notes for lower notes so that our 25000 note would then be a 25 dinar note. I don't see them making the exchange easy for anyone outside of Iraq to exchange their notes either so unless there was a way for us to do that, we would be left with a bunch of worthless paper.

Please if I am wrong please explain it to me because every time I read someone saying that they have to remove the zeros first my stomach knots up and I want to throw up a little bit.

by therealbutterfly Thu Nov 03, 2011 4:14 pm

ibcraig0 wrote:I keep seeing people talk about removing the 3 zeros like it is a great thing or something that has to happen before the RV. Maybe I don't understand this but IMO if they do that they are DE-valuing the money and making it worthless to us. The way I understand it is that if they remove 3 zeros that makes 1 million dinar worth 1 thousand dinar and if they do that it doesn't matter if it revalues at 10 dollars, we don't get what we are hoping for.

I can only see removing the zeros as a bad thing for us investors hoping for financial salvation. On top of that we would all have to exchange our notes for lower notes so that our 25000 note would then be a 25 dinar note. I don't see them making the exchange easy for anyone outside of Iraq to exchange their notes either so unless there was a way for us to do that, we would be left with a bunch of worthless paper.

Please if I am wrong please explain it to me because every time I read someone saying that they have to remove the zeros first my stomach knots up and I want to throw up a little bit.

IF they LOP, which is what you are implying, it doesnt render your dinar worthless. Basically it just means you just about break even. If a 25k note is worth currently $21.50 and they lop and a new 25 note is now worth $21.50 and they can be used interchangeably. Thats IF they lop with no increase in rate. But if you put all factors in, I cant see a straight lop like you suggest. Could it happen? SURE but will it? Dunno....

by watchman42 Thu Nov 03, 2011 4:14 pm

Craig,

This is a good thing. They are talking about removing them (25,000, 10,000, 5,000 & perhaps 1,000 bills) from circulation to make room for the smaller denominations because the currency is going up in value. If you were in Iraq and took a 25,000 bill, with a revalue of $80,000.00 +/-, to buy a coke and snickers bar, then the merchant would not be able to make change and would not accept your currency to begin with. Now, on the other hand, when the smaller denoms are put into circulation after the RV, it won't be a problem.

Blessings,

watchman42

by mitkire Thu Nov 03, 2011 4:16 pm

no effect on r/v. same as if you had an uncirculated $1000.00 bill. you'd get ten $100.00 bills in exchange. net effect = zero.

by ibcraig0 Thu Nov 03, 2011 4:24 pm

I see what you all are saying but let me put this out there.

If I have 1 million dinar and it RVs at 1 to 1 then I effectively have 1 million dollars.

On the other hand if they LOP I then have 1 thousand dinar and with a 1 to 1 revalue I then have 1 thousand dollars.

Right?

by therealbutterfly Thu Nov 03, 2011 4:39 pm

ibcraig0 wrote:I see what you all are saying but let me put this out there.

If I have 1 million dinar and it RVs at 1 to 1 then I effectively have 1 million dollars.

On the other hand if they LOP I then have 1 thousand dinar and with a 1 to 1 revalue I then have 1 thousand dollars.

Right?

Correct. So basically you are close to break even with your investment if you got in recently.

by humingbyrd Thu Nov 03, 2011 4:50 pm

ibcraig0 wrote:I see what you all are saying but let me put this out there.

If I have 1 million dinar and it RVs at 1 to 1 then I effectively have 1 million dollars.

On the other hand if they LOP I then have 1 thousand dinar and with a 1 to 1 revalue I then have 1 thousand dollars.

Right?

If you have a million dinar, then you have a million dinar! Whether you have 1 million dinars in 25K notes or if you have 1 million dinar in 250 notes.

If you were going to purchase an item right now, before RV/I that cost the equivalent of $100 US dollars, it would now take 100 times 1170Dinars or 117,000 dinars to purchase that $100 item. On your example of a 1 for 1 RV/I, then that item would now cost 100 Dinar. If they had small denominations of bills, say in 5 Dinar Notes, that $100 item would currently require you to have 117,000 divided by 5 Dinar Notes = 23,400 (5 Dinar Notes).

The smaller denoms would/will come into play post RV/I. Since the dinar has such a low value currently, a person would have to carry large piles of bill to purchase things.

Hope this helps!

by Len Thu Nov 03, 2011 5:06 pm

ibcraig0 wrote:I see what you all are saying but let me put this out there.

If I have 1 million dinar and it RVs at 1 to 1 then I effectively have 1 million dollars.

On the other hand if they LOP I then have 1 thousand dinar and with a 1 to 1 revalue I then have 1 thousand dollars.

Right?

most are saying NO lop. the large dinar notes will be removed from circulation because they are worth too much to be used practically.....like what happened to the $10,000 and $1,000 dollar bills in usa. if you have a $10,000 us dollar bill it is still good.

by ibcraig0 Thu Nov 03, 2011 5:40 pm

I see the light!!!

Thanks for all the help I think I get it now. Whatever happens I just say GO RV!!!!

Removing the zeros question.

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