This post is made with questions & comments in reference to the Admin Shredd Chat earlier today - We have included the link for easy reference :
Admin Shredd Chat LINK
BLC MEMBER TO SHREDD: I would like to add something to your chat when it comes to deleting the zeros.
As investors the only thing we care about is the value of the dinar * it rising to a buck or more.
When it comes to deleting the zeros that part (which would be step 2 of the proses the first would be raising the value). So If as investors we only care about the value where does the deleting the zeros come in?
For us as investors it does NOT come into play, Because the deleting zeros is only on the streets of Iraq.
You ask what am I talking about here, Well deleting the zeros is take the remaining zero notes off the streets of Iraq. this part real doesn't mean anything to us because 1 we are not in Iraq & using our notes to buy every day stuff 2 when we decide to exchange our dinar we will be get U.S.D or another currency or ever gold or silver.
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BLC MEMBER TO SHREDD: So for use it is all about them moving into article 8 of the I.M.F. & rising the value of the currency. which as Shredd stated could happen any time.
JMHO keep I.M.F standby agreement that is to end on Feb 23,2013 in mind if they don't change the exchange regime by than Iraq will more than likely end up with all their debt that was take away or reduce back to full price.
So it would be in Iraq's best interest to make a change by than. Keep in mind this is only an opinion & could be totally wrong.
SHREDD TO MEMBER: I have a few comments on yours......
1. Even though the removal of the zeros (off the notes by the way) is a separate event than the increase of the value of the dinar (as I stated), we as investors should be watching this project. Why?
Well, without the release of the existing lower denoms, the rate will not be able to rise above the dollar because of the "ease of carry" issue which should make sense.
Making change, supply of a higher valued dinar to the dollar are the two biggest issues. Lower denominations which do not have the three zeros must be available for distribution before the rate gets to par or above. That's a fact.
2. Forgiven debt (like that of the UAE)will not be RE- implemented after the expiration of the SBA.
Additionally, the payment to the IMF is a drop in the bucket in comparison to the vast amount of reserves iraq has.
Although we like to think there is a situation where iraq's back is against a wall where they would "have to" revalue their dinar, that situation does not apply here nor will it.
We've seen so many articles stating that iraq has the support of the global economic community as a whole. Makes sense since the success of iraq will benefit them all.
BLC MEMBER TO SHREDD: am responding to your #1.
the point I was making as to the float starting & people can cash small amounts while they wait for what they would take for cashing out all.
Some have said a dime would set them up with the amount of dinar they have some would take a buck & say they made more than enough to live the rest of their lives & some would hold out for the highest amount possible to maybe help family & their closest friends with some debt so they would not end up living on the street.
Then point was as long as we see the movement of the dinar value puts us in a better place than waiting for another 10 years to be able to cash out.
Keep in mind I did say that most of what I said was an opinion & I could be wrong, As we all know this is Iraq & none of want to be left holding the bag if they don't do anything.
Tlm724 TO SHREDD: Shredd you make an excellant point about the removal of the three zeros being a separate event, although the removal is imparative to the monetary (currency) reform it is NOT nessecary for an increase in value.
The SBA (Stand-by-Agreement) with the International Monetary Fund does expire Feb. 23, 2013 and the first payment is $122.87 million USD. This amount is very manageable for Iraq and I do not see any problem at all with Iraq making this payment. To me it is a non-issue. Cool
Here is the link to the SBA: http://www.imf.org/external/np/fin/tad/exfin2.aspx?memberkey1=460&date1key=2012-10-31