Maybe this will help you out.
All banks in the states stopped exchanging dinars and won’t until it gets reinstated (RI).
I would just like to let you know that there is no RV that will be taking place any time soon so don’t get all excited.
The facts are this. Any country that drops zeros from their currency is a redenomination. “ANYONE” who says they will drop the zeros without a redenomination is either lying or simply doesn’t understand how things work.
When a Country drops zeros from their currency it only has ever worked one way, regardless of what Gurus say.
If a country has zeros on their currency and they declare a new value then new currency is printed with no zeros.
If the currency had 1 extra zero then that old currency can be traded in on the new currency at a rate of 10 to 1.
If the currency had 2 extra zeros then that old currency can be traded in on the new currency at a rate of 100 to 1.
If the currency had 3 extra zeros then that old currency can be traded in on the new currency at a rate of 1000 to 1 which is the case with Iraq .
There can also be a revalue along with a redenomination. As an example when ever Iraq drops their zeros the new currency will have a 1000% increase in value. Providing the old currency is at the programmed rate at that time the value will be .86 cents. Then they can declare a revalue as well. If they want their currency to be worth one dollar they can add a 14 cent value increase along with the redenomination. That would bring the dinar value to one dollar. At that time for every 1,000,000 dinars you now have can be exchanged for 1,000 dinars of the new value. 1,000 times 1 dollar will give you $1,000.
No country has ever done this any other way and Iraq will not be the first.
The only way anyone will make or can make money on this investment is if the currency is allowed to float up and left alone until it reaches a dollar or whatever – if that is possible.
Here is a link explaining the process. http://www.gamji.com/article6000/NEWS7367.htm
Here is a list of the possibilities of what can possibly take place.
The Facts, Not Speculation
1. What is Rebasing mean? It would mean that 25,000 Dinar would become 25 Iraqi Dinar and would revaluate to an amount designated by the Central Bank of Iraq .
2. What do dropping three zeros mean? It would mean 25,000 would become 25 Iraqi Dinar and the value would be the same, you wouldn’t lose any money. You would still have to wait for the revaluation.
3. What does redenomination mean? It would mean that any money printed from 2003 until now would be re-called and new money would replace it. The money would be the same value as the old; the only difference would be for internal financial structure of the country of Iraq . You would be able to exchange the currency you now have for the newer currency any time within a two year period. You would still have to wait for revaluation.
4. What does Reinstated (RI) mean? A Reinstated currency is a currency that is accepted as legal tender in any country and accepted at any bank who deals in foreign currencies. Currently the Iraq dinar is only used as legal tender within the borders of Iraq .
5. What happens if? Rebasing, dropping of zeros or redenomination occurs. It would mean you could exchange your dinars for dollars if you are satisfied with the amount the dinar increased in value. Or you could exchange the currency you own now for the newly printed dinar currency and wait for the value to increase more. If the currency was also reinstated (RI) then you could trade the currency in at the bank for dollars or the newer Iraq dinar.
6. Is there any risk involved in my investment because of these proposed ideas? These things have been in debate since 2006, and if any of them were to happen you would in no way lose your original invested money. Banks and traders will have a normal exchange rate available.
7. Should I stop buying Iraqi Dinar because of this?
A. If the Government and Central Bank of Iraq would decide to make any of these changes it will come with a 2 year time limit, meaning have 2 years to turn in our money – perhaps only in Iraq.
B. If they revaluate the money which would be considered a rebasing, you would make money immediately without an exchange needed.
C. If they drop the zeros or do a redenomination, you would need to turn in you currency for exchange – perhaps only within the borders of Iraq .
8. What happens if the currency floats? A float is intended to allow the free market to determine the increase in the rise of the current value. There are different sorts of floats such a free float or a pegged float.
9. There are so many rumors circulating? This investment is greatly involved and most people do not know enough information yet to make a hypothetical scenario of the out come. Clearly Iraq would want and need a higher valued currency. There have been many articles pertaining to what pending plans Iraq has to increase the value of their currency. They have yet to decide on a specific and definitive plan. When their decision is made it will most likely entail some variances or versions of the above explained examples of 1-8.