I was reading a post by RAY that said,"Shabibi is still saying 30 days in country to exchange and 45 out of country." This is the first I have heard about this. Is it correct? From reading some of your posts I get the impression that Shabibi's plan may include RVing at a low rate to draw out a lot of the money outside of the country and then slowly raising the exchange rate over time. SO I have planned, depending on the RV price, to cash in a portion and sit on some to see what happens. Having a 45 day cash in limit kills that strategy. Also I thought the old currency would be valid for a year or two until the new currency is fully implemented. Both can't be correct. If the old currency is good for 1-2 years, what stops me from holding my currency and waiting to see what happens. If you could clarify this, I would greatly appreciate it. Thank you so much for you time.
marine95608, there will not be a "cash in limit." It is a currency, and once it RVs, it will be an international currency to boot. You can't put a time limit on a currency like that. Our U.S. dollar is a currency, for example. It can be traded in or used anywhere in the world. So it will be with the Iraqi dinar. Right now I think you can only use it in Iraq since it is not internationally recognized, but once it is it can be used to make purchases or be traded in. Even when they bring out the new currency, they've already said that the two will exist side-by-side for two years as they pull in the old currency over that time period. Even then, that may be a guideline, that they hope to have it done by two years from the time the rate goes international. I've heard that people, even today, can take the old Saddam notes and trade them in for the current Iraqi currency. The old Saddam notes cannot be used as currency because it was a war situation and those notes were purposely replaced by the current ones with low value, but they can be traded.
There is a story of a man in Germany who thought that he could not use his German marks anymore once the Euro became his country's currency ten years ago, so he flushed all of his marks down the toilet, an amount that was worth about $64,000! He found out right after he did it that his marks could be traded in for Euros so he pleaded with the authorities to allow his notes to be retrieved from the sewer system. They had to anyway: his notes were clogging up the pipes! He got some of his money back, a little wetter but still usable!
Let's remember, we're talking about money here. Money is always exchangeable in some way.
Thank you very much for taking the time to answer my question. So, the bottom line is RAY is incorrect and since the Dinar will be a recognized currency I'll be able to sit on mine and exchange them as I see fit; at least, up until the time they decide to pull the old currency in a year or two. Once again, my thanks.
There have been several articles out of the CBI that talk of a 10 year redemption period....
thing is we dont really know exactly what the rules/laws will be...
but it is not reasonable to think that there would be that short little period of redemption.
Remember.. Iraq wants central banks around the globe to use the IQD as holders of wealth.
You can bet that China wants to have an alternative to the dollar with which to hold wealth.
No rational analyst expects the IQD to be worthless after 30 days.. post RV.
Last edited by BlueyesinLevis; 07-17-2012 at 06:06 AM.
Besides, BlueyesinLevis, currencies aren't coupons. They don't just "expire" after a certain amount of time. If they lose their value at some point it has to be with ample warning and opportunity to trade in with the new currency. See my example of the man with the German marks in the thread above.