Attention Iraqi Dinar Speculators!!! Romania Revalued Their Currency, NOBODY GOT RICH!!!

Attention Iraqi Dinar Speculators!!! Romania Revalued Their Currency, NOBODY GOT RICH!!!

Among those buying and holding the Iraqi Dinar currency, some buy for collectible purposes, however more often than not people buy hoping for a revalue or an increase in the value of the currency. They buy hoping to make money off this "investment".

Some point to other "revalues" or "rv's" such as the Kuwaiti Dinar, German Mark, or a host of others. The fact of the matter however, is that none of these currencies actually revalued at a substantially higher rate. This is people mis-interpreting history. In the case of Kuwait it was a loss of consumer confidence and people with Kuwaiti Dinars selling at pennies on the Dollar or in this case pennies on the Dinar. It wasn't a true "revalue" as Iraqi Dinar holders tend to think of one.

A more likely scenario is what's called a redenomination. This is what Mexico did back in 1996, and what a host of other countries have done over the years. Though some may call this a revalue, in fact this is a redenomination, and nobody makes money. If a currency redenominates, you turn in your old bills for a new bill. They knock a few zeroes off, just like people speculate will happen with the Dinar. The key point of this however is that the equivalent value in USD does not change. For example in the case of the Mexican Peso you had 50,000 pesos which was worth about $5. You swap that 50,000 Peso note out for a 50 peso note. The 50 Peso note also has a value of $5. You didn't make any money, you simply swapped out a 50,000 note for a 50 note. It makes more sense to people, it makes commerce easier, but it doesn't make anybody rich.

Take a look at the photo below. Romania did this back in 2005. You'll see the bill is nearly identical, just has a different denomination of 100, instead of 1,000,000. Nobody got rich, people still had the same USD equivlanet of money, just a different denomination bill. When we are trying to make educated guesses or predictions on the future, we often look to the past. It's a sad fact but many Dinar holders are going to be in for a rude surprise if/when this happens with the Iraqi Dinar. This is a much more likely scenario for the Dinar than a revalue as Iraqi Dinar holders often think of it.



On Friday, July 1, 2005 Romania introduced a new redenominated currency. It's called the Leu with the currency symbol "RON". It is valued at 10,000 of the old Lei, who's currency symbol was "ROL". This process is known as redenomination and it started in March of 2005, at which time Romania started a dual-currency display and had all prices displayed in both the new Leu and the old Leu. The new notes and coins of the new Leu became the new legal tender and is the official currency of Romania.

The redenomination or conversion from the old to the new is fairly simple. 10,000 old Lei are replaced by 1 new Leu. Nobody made any profits. The new bill is not worth any more in USD compared to the old bill, it's simply a new denomination to make commerce easier. Turkey also did a similar thing. The new notes circulated alongside the old notes until December 31, 2006 so Romanians had until that point to swap out their old notes for the new notes. In most redenominations, you have a specified period of time to do the exchange, generally 6 months to a year. After that point the old notes are outmoded and become worthless. One unique thing about Romania doing a redenomination is they have stated the old Lei, though not accepted in commerce at businesses, will be exchanged by banks indefinitely. This is not the case however with most redenominations.

The redenomination of Romania represented a symbolic end to transition. I would imagine something similar would happen with the Iraqi Dinar. A redenomination is a much more likely scenario than a revalue in the case of the Iraqi Dinar.

At the time this redenomination was done the Governor of the National Bank of Romania, Mugar Isarescu, stated that the redenomination of the Leu marked a symbolic end of Romania's economic transition from a planned economy under communism, which was overthrown in 1989, to a free market economy.

Though Iraq wasn't a communist country they were a dictatorship and a redenomination for Iraq could represent the transition from that to a true Democracy. At the time Romania also thought this would be paving the way to enter the European Union and get on the Euro. This was expected to happen sometime between 2012 and 2014, though it doesn't look like it will happen as things currently stand.

So what does this mean for the Iraqi Dinar and those holding this speculative "investment"? Could mean a lot could mean nothing. I'm sure the Guru's and Dinar pumpers will say this is nonsense and means nothing for the Dinar, claiming DInar has all this oil and gold under the streets. I'm not saying this is 100% what will happen with Iraq and the Iraqi Dinar. I do however think when trying to predict the future we look to the past and past instances and examples and in most cases as with the Mexican Peso and Romanian Leu, the past shows a redenomination is much more likely than a revalue. There has yet to be anyone be it Gurus, Dealers or Dinar holders who have showed an true example of a past revalue.

http://iraqidinarrevalue.blogspot.com/2014/01/attention-iraqi-dinar-speculators.html

ok! So lets play a little here.. If this is correct and we all get stuck with 100 bills to replace the larger bills.. if the economy continues to do well and the value of those 100s increase such as it did in Romania, would you not trade in the 100s for a yes "smaller" profit, but yet a profit all the same..

These two extremes need to go away... you have one side that is just as bad as the other, they choose to ignore reason and only look at extreme ideas and or reasons...
I'm tired of it.

You tell us to look up facts and I have, and you are wrong... and yet right at the same time.... MANY of us here are not stupid, we know what history has provided to us, but at the same time we are NOT stupid and we know what has happened in the past...

You tell us to do research, All I had to do was look up when they re denominated their currency and looked at the international exchange of it and it spoke for itself... if NO ONE profit then they must have been all STUPID... the currency exploded in 2005 and late 2004.... you whoever you are are not the brightest bulb in the box.

EITHER PLAY THE GAME LEGALLY OR GET OFF THE FIELD!!!

I would say the big difference between the situation in Ira and all of the other RVs that people talk about is that Iraq's present rate was forced on them when they lost the war.  On the other hand, the pre-war rate was set arbitrarily by Saddam and there were only around 30 billion dinar in print.  Now the estimates are from 30 to 80 TRILLION in print.

At thispoint, I just want them to do something and get this over with.

true catman, but if you look at Romania's redenom... it Literally Sky rocketed.. I'm asking EVERYONE to go and look.. follow this person's request, because they are dead wrong..

Judging from what I have seen, I hope that Iraq does what Romania did, because before the redenomed, the currency jumped big time, after they redemoned and while, it continued to rise dramatically until 2 years later when it fell hard...

Either way, what this clown is preaching is just as dead wrong as what the Guru's are preaching..

So if they do a redenomination as opposed to a revaluation...how do we get the new notes?  I never believed in the reserves so I bought mine outright, would this be something that we could do or if that happens are we screwed?

It depends on how it is structured... there is always the 50/50 chance... each country does it different however with that being said it will not be an overnight thing.. they will have to give the public time to exchange out and in order to set up other stuff to support it.. there was a 4 year transition period for Turkey, Iraq seems fond of the way they revalued theirs...

Ponee wrote:Attention Iraqi Dinar Speculators!!! Romania Revalued Their Currency, NOBODY GOT RICH!!!

If you feel this will happen to Iraq
Let me ask you two simple Questions...

Why do you own Dinar?
And why do you bother yourself with a Dinar Site?

Not being negative, just really wondering why you waste your time here with us

I think you may be confused penny, Ponee is just posting articles... she is the work horse of this site and it is because of her and the other mods that we are able to read these articles and chat about them, in hopes that through the chaos that truth may emerge...

Trust me, you can tell the difference between her posts and her News posts..

Why some people, like this author, take it upon themselves to point out the obvious is beyond me.  Yes, it is a highly speculative investment.  We get it.  Unfortunately the author fails to take into consideration the circumstances surrounding this situation are completely different to those examples he cited.  Perhaps its just me, but the article may be clothed in just to let you know, but it came across to me as you are dumb as a rock to be involved in this.

penny3159 wrote:

Ponee wrote:Attention Iraqi Dinar Speculators!!! Romania Revalued Their Currency, NOBODY GOT RICH!!!

If you feel this will happen to Iraq
Let me ask you two simple Questions...

Why do you own Dinar?
And why do you bother yourself with a Dinar Site?

Not being negative, just really wondering why you waste your time here with us

PENNY ; WE SHOULD ALL BE GRATEFUL FOR SITES LIKE DD AND EVEN BAGHDAD INVEST. OTHERWISE WE WOULDN'T BE GETTING ALL SIDES OF THE STORY FROM WHICH TO DRAW SOUND CONCLUSIONS.

PONEE TIRELESSLY KEEPS THIS FORUM UP & RUNNING AT SACRIFICE TO HER QUALITY PERSONAL & FAMILY TIME AND I KNOW I AM EXTREMELY GRATEFUL.

IT'S A SAFE CONCLUSION THAT SHE CERTAINLY ISN'T GETTING RICH FROM THE ENDEAVOR EITHER SO LET's LEND A SUPPORTIVE HAND.

THE ALTERNATIVE FAR TOO LONG WAS RECRAPS (MOSTLY) AND I THINK WE ARE ALL IN AGREEMENT THAT IT'S BS & MORE BS OVER THERE !!

 :flapping:

penny3159 wrote:

Ponee wrote:Attention Iraqi Dinar Speculators!!! Romania Revalued Their Currency, NOBODY GOT RICH!!!

If you feel this will happen to Iraq
Let me ask you two simple Questions...

Why do you own Dinar?
And why do you bother yourself with a Dinar Site?

Not being negative, just really wondering why you waste your time here with us

Penny, Please notice that I am not the author of that piece.  There is a link to the posting site at the bottom of that post.   Just like the ARTICLES from IRAQ that I find and bring here I do not write them and the GURU CHIT CHAT that I copy and paste? I certainly don't write them. 

I post things from many different aspects of the dinar for people to read, analyze and respond to.  Pros and Cons. Good, Bad ,  Indifferent. Just because I post something does not mean I agree with it or disagree with it. 

Except for my disdain of those gurus that do not deal in facts I remain pretty neutral about most things.

Special thanks to those of you who pointed out that I was just the depositor of the article...  

I personally thank you for posting this.  I can't believe people haven't already researched redenomination for themselves.  I found this info when I first got into this.  I was hoping it wasn't going to happen that way and guess I still am,  lol.  They have told us this in the news articles all along.  They say that the new and the old will both work together for 2 years.  I also saw an article not long ago that was talking about the confusion for stocks when they make the change will be 1000 stocks will become 1.  Don't get angry when someone is truly trying to help you see what you should have already researched for yourself.  Let's hope for the best outcome.  Just don't spend more than you can afford to lose.  I will take small gambles.

Nicely stated, Moneymaker.  And thanks to you Ponee.  Reading and research from all viewpoints is how we learn.

re denomination is not the end of the investment... sure you may not get what you were hoping, but it still is not the end of it.. after re denomination normally a countries buying power increases internationally.. therefore your 1 dinar is equal to very much more then you paid for it...
how ever absurd thought that if you were to buy 5mil dinar it would revalue at 25 mil or larger was and always will be false..

in my mind if and when it re denominates, that is just the first stop for me (hopefully)

penny3159 wrote:

Ponee wrote:Attention Iraqi Dinar Speculators!!! Romania Revalued Their Currency, NOBODY GOT RICH!!!

If you feel this will happen to Iraq
Let me ask you two simple Questions...

Why do you own Dinar?
And why do you bother yourself with a Dinar Site?

Not being negative, just really wondering why you waste your time here with us

Hi Pennny




 I know my avatar offended you. But you have to know that Ponee is a messenger not the writer. We are to use OUR own discernment when reading these posts.
 
I was given this advice by my first mentor who swore like a drunken sailor.
 
When offended by my words or my delivery. You make that choice. Come off your high horse bend down and smell the roses. Your first thoughts can be your down fall, take the time to contemplate my words.
 
I live by that these days.
 
Some good advice from Albert Einstein.
 
"We can't solve problems by using the same kind of thinking we used when we created
them."
 
 “Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.”
 
"Logic will get you from A to B. Imagination will take you everywhere."
 
 
"Any fool can make things bigger, more complex, and more violent.  It takes a touch of genius–and a lot of courage–to move in the opposite direction".
 
"Logic will get you from A to B. Imagination will take you everywhere."




 
lovelightblessings
1ness







 

Waco Kid wrote:Why some people, like this author, take it upon themselves to point out the obvious is beyond me.  Yes, it is a highly speculative investment.  We get it.  Unfortunately the author fails to take into consideration the circumstances surrounding this situation are completely different to those examples he cited.  Perhaps its just me, but the article may be clothed in just to let you know, but it came across to me as you are dumb as a rock to be involved in this.

i get what your saying, too many factors and variations to make a case that dinar is bad because of romania. that said many dinar people point to the kuwaiti dinar for a reason the iqd will revalue. if we cant use negative examples as a basis for not investing in dinar we also can't use positive examples to say the dinar is good. the kuwaiti dinar is WAAAYYY different than iraq and to my knowledge wasn't a true rv as dinar people think of one.

BlueSky wrote:I personally thank you for posting this.  I can't believe people haven't already researched redenomination for themselves.  I found this info when I first got into this.  I was hoping it wasn't going to happen that way and guess I still am,  lol.  They have told us this in the news articles all along.  They say that the new and the old will both work together for 2 years.  I also saw an article not long ago that was talking about the confusion for stocks when they make the change will be 1000 stocks will become 1.  Don't get angry when someone is truly trying to help you see what you should have already researched for yourself.  Let's hope for the best outcome.  Just don't spend more than you can afford to lose.  I will take small gambles.

you make a great point. if your going to invest in the dinar based on the idea its going to revalue, it would probably be smart and prudent to do some research and actually look at examples of lops, redenominations, etc of past countries and currencies. thats not to say how romani or mexico, or germany or kuwait did things will be like iraq but at least have a clue what your getting into vs just taking someones word for it who told you to buy.

something else id like to add. i know many into dinar hate to hear people bring up redenominations but like others have said, though its not a rv it is a good thing. countries have crazy high denom notes because their currency is worthless. when going to smaller notes its supposed to make commerce easier and i think kind of signals and end to inflation. overall its a good thing for the country and currency.

it does however bring up an issue for us. it seems for redenominations they can give anywhere from a few months up to years up to possibly indefinitely to turn in old notes. i think the rule of thumb however is say 6 months to a year. 

say iraq redenominates. i doubt any of us will be taking a flight to iraq to go to the bank to swap out notes. that doesnt mean were stuck but i imagine at that point dealers will startproviding a service to us to swap out our old notes for new notes and they do the leg work for us. how much will this cost? who knows but they kinda got us at that point, let your notes become worthelss, take a trip to iraq or pay what a dealer is going to charge to swap out. i think thats our biggest problem in the case of a redenomination

Good points. and it's a bridge we'll have to cross when and if we come to it. We can speculate till the cows come home, but it will all be speculation.

livingintheloop69 wrote:

Waco Kid wrote:Why some people, like this author, take it upon themselves to point out the obvious is beyond me.  Yes, it is a highly speculative investment.  We get it.  Unfortunately the author fails to take into consideration the circumstances surrounding this situation are completely different to those examples he cited.  Perhaps its just me, but the article may be clothed in just to let you know, but it came across to me as you are dumb as a rock to be involved in this.

i get what your saying, too many factors and variations to make a case that dinar is bad because of romania. that said many dinar people point to the kuwaiti dinar for a reason the iqd will revalue. if we cant use negative examples as a basis for not investing in dinar we also can't use positive examples to say the dinar is good. the kuwaiti dinar is WAAAYYY different than iraq and to my knowledge wasn't a true rv as dinar people think of one.

The same Kuwaiti government that was kicked out of power simply went back to work after Iraq was defeated.  They rebuilt their infrastructure and and restored the currency to its previous level.  It isn't that cut and dried in this situation.  A lot to like about the long range possibilities of the Iraqi Dinar.  Mine is sitting in a safety deposit box.  The few thousand $'s I've got invested won't break me.  IMO, it's a chance worth taking.