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Saturday, October 15, 2016

KTFA CHAT UPDATE, 15 OCT

OldManRiver:  After all these years of articles about "deleting the  zeroes", I've often seen the question asked but never adequately answered, what does that specifically mean?

Is it turning .00086 into .86?  Is it simply getting the big bills out of circulation?  Is it both? Is it something entirely different? 

Ive read several folks opinions on what it means but they were just guesses (maybe just wishful guesses ), but no seems to know for a fact what it means.

Perhaps when this thing is over I'll be able to look back and tell what they meant!  

7-FA: 1,000.00 Dinar to 1.00 Dollar......... Then after dropping the 000's you have 1.00 Dinar to 1.00 Dollar.


OldManRiver: Yes 7-FA, But the new question is:    In your Iraqi bank account (Warka) do they also drop the 3 zeros?

Does your account go from 25,000 dinar to now 25 dinar? Or does it stay at 25,000 dinar?

7-FA:  The only place the 3 000's drop is in the exchange rate not on the bill itself so say you have a 25,000.00 Dinar bill it stays a 25,000.00 Dinar bill worth 25,000.00 Dinar.

LarryH:  Its not a lop. Your USD is going thru a conversion change. You don't have to worry about the IQD. Just like the Euro. Peso. Great British pound…. Its their purchase power.  Who cares about their value in their country. It doesn't affect us.  …. Once they convert their purchase power you will get more dollars then you have spent. If you were in Iraq then you will see nothing except you can buy more grocerys for less money. Really simple

Frank27:  YES ................ IT IS THE NOTE COUNT NOT THE VALUE.

FaithBlossums:  I was confused about this as well until a while ago Frank explained that deleting the 000's is strictly ELECTRONIC.  The physical currency will remain the same and smaller denoms will come out as well. That also dispels the whole LOP theory that was in question when I first bought Dinar years ago.

Vipor:  I believe THAT which you just explained is exactly what was being asked by Old Man River and Singingwolf.

Many years ago, this was a common question when the old "LOP" argument was making the rounds.  The inquiry was whether the "000" was being taken off of the face of the note (ie, LOP)..    or...  whether it was being taken off the value of the currency.

We "speculators" were hoping the "000" were being taken off the value (ie. from .00086 per dinar to .86 per dinar) and then allowed to float up to "1 to 1". This would have meant that a 25,000 dinar note which was worth $21.50 (at .00086) would increase in value to $21,500  (at .86) and then increase further as the float ensued.

Your explanation Faithblossoms seems to match this scenario.

Vipor:  And to further expand on the original question..   whether if Joe Smith has a 25,000 dinar note deposited at Warka Bank, will it still be 25,000 dinar after the RI/RV or whether it will have been adjusted downward to 25 dinars...

Assuming the scenario which I posted and that was explained by Faithblossoms are correct, then the "000" would have been removed off of the "VALUE" of the dinar. Thus, the amount of dinar in Joe Smith's bank account will not have been affected at all. A dinar inside Iraqi borders is still a dinar.    However, when converted and wired back to Joe Smith's US Bank account, he will be much surprised at how much his 25,000 dinar had converted to due to the removal of "000" from the value.   All IMO, of course.

Frank26:  They have a plan with  The IMF and the IMF does not plan for a LOP................  seriously think about that .

Walkingstick:  (Being, very brief) A transitional rate 1000:1 ----- > If one were exchange a 25,000 note at a 1000:1 ratio (subdivided at 1000 fils) at some point it would be traded for a 25 dinar note.... The exchange rate/purchasing power does not change... The only change, face value of the note itself.... ie: A 25 dinar note would still have the exchange rate/ purchasing power of a 25,000 note... Fast forward, paving way for a revaluation....

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