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Will the Iraqi Dinar be revalued? When will the Iraqi Dinar be revalued? And How?


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#1 emiyoly

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Posted 09 March 2010 - 08:23 AM

Will the Iraqi Dinar be revalued?
When will the Iraqi Dinar be revalued?
How will the Iraqi Dinar be revalued?
;)To put it simply, the Iraqi Dinar is currently worth less than 1/10th of a US penny (Approximately $1000 US dollars buys 1 million Iraqi Dinar). Historically, the Iraqi Dinar has been worth over 3 US dollars for every Iraqi Dinar (Over $3,000,000 US dollars purchased 1 million Iraqi Dinar). Put another way, 1 million Iraqi Dinar is currently worth a little less that 1000 US dollars and historically 1 million Iraqi Dinar has been worth well over $3,000,000.00 US dollars. So, the question is: Will the Iraqi Dinar increase in value? And if so, how? And when?


Let's examine the situation in Iraq and the history of the Dinar. The facts are:

1) Iraq is an extremely wealthy country when you look at their natural resources and potential GDP. The expert consensus is that Iraq has at least the second largest oil reserves and natural gas reserves in the world. There is strong speculation that Iraq actually has the largest oil and natural gas reserves in the world. Additionally, many people don’t realize that oil from Iraq is some of the world’s cheapest oil to drill and refine—the oil is very “rich” and close to the surface with few impurities or hindrances to drilling. Iraq’s cost of production per barrel of oil is minimal compared to other world oil producers. This all means that Iraq’s profit margins on their oil production are some of the highest in the world. Additionally, Iraq has a vast agricultural system and abundant fresh water supplies from the Tigris and Euphrates rivers---Iraq is known as the “Bread Basket of the Middle East.” Moreover, Iraq has a large and traditionally hardworking productive population. The bottom line is that Iraq has staggering wealth in natural resources and tremendous GNP and GDP.

2) There is NO WAY the country of Iraq is going to be allowed to decay into a state of instability. Iraq is not Somalia, Vietnam, or Rwanda -- It is a strategic Middle Eastern country with tremendous potential wealth. It is in the best interest of every Western country and most Middle Eastern countries for Iraq to succeed as an independent stable economy and country. No Western or Middle Eastern country is going to stand by while Iraqi’s vast oil reserves and wealth fall under the control of a neighboring rouge country or insurgency---it just won’t happen.





3) The political and economic powers of the world are doing everything possible to stabilize Iraq and bring their economy in line with the rest of the world as soon as possible---this is in the best interest of all nations. World leaders understand that wealth and prosperity in a country lead to stability and increased productivity---people don’t revolt when their needs are being met and their quality of life is improving. One of the fastest ways to stabilize a country is to increase its wealth and the quality of life for the population as soon as possible. The cost of increasing an entire population’s wealth is much less than the cost of war and widespread instability in the oil-rich nations of the Middle East.

4) The history of the Iraqi Dinar demonstrates strong potential for growth. At one time, the Iraqi Dinar was worth over 3000 times ($3.20/Iraqi Dinar to <.001/Iraqi Dinar) what it is currently worth, while at the same time oil (Iraq’s largest natural resource) was selling for approximately $15 per barrel -- less than 1/5th of today’s price.

5) Excluding rogue nations (Iran, Syria, and other nations as defined by the US), the lowest exchange rates in the Middle East for countries like Kuwait, Qatar, Saudi Arabia, U.A.E., Israel, etc are no lower than $.26 per Dinar, Sheqel, Dirham, Rial, Riyal, etc. If the value of the Iraqi Dinar increased in value to just the lowest valued currency of the mainstream Middle Eastern countries, it would result in a 260 times increase in value. More simply stated, 1 million Iraqi Dinar purchased for approximately $1000 US dollars today would be worth $260,000 US dollars if the Iraqi Dinar were valued at $.26 US Dollars—the lowest current valuation for a mainstream Middle Eastern country. If the Iraqi Dinar were to reach a value equivalent to its historical rate of $3.20 US dollars per Iraqi Dinar, the value of an approximate $1000 US dollar Iraqi Dinar investment for 1 million Iraqi Dinar would be worth $3,200,000 US Dollars. As a note, the current exchange rate for the Kuwaiti Dinar is $3.44 US dollars for 1 Kuwait Dinar---it would take $3,440,000.00 US Dollars to purchase 1 million Kuwaiti Dinar.



6) Since its inception in late 2003, the Iraqi Dinar has steadily increased in value—indicating a recovering economy and increase in conversion of natural wealth resources.


The bottom line is that the Iraqi Dinar is currently at an extremely low valuation compared to the US Dollar. The currency has steadily increased in value since inception in late 2003. Iraq is a country with phenomenal wealth potential; and additionally, has the backing and support of the major political and economic powers of the world. There currently seems to be minimal risk that the Iraqi Dinar will decrease in value. The tremendous potential upside return compared to the minimal downside risk seems to make the Iraqi Dinar a compelling investment opportunity worth investigating.

One compelling speculation that may relate to the value increase of the Iraqi Dinar is the actual amount of Iraqi Dinar being held by the United States Treasury Department. A significant increase in the value of the Iraqi Dinar would more than pay for cost of recent US war efforts in the Middle East and greatly alleviate the tremendous debt recently initiated by the US Government. The US Government’s current runaway spending seems to suggest that the US Treasury Department is expecting a massive windfall in the near future that will cover debt. Although this theory seems logical and despite the fact that this theory is parroted by many, this speculation can not be confirmed.

In determining when the Iraqi Dinar will increase in value, all indicators point toward something happening in the near future (next 12 months) if not the very near future (next 3 months). The appreciation of the Iraqi Dinar has been unprecedentedly flat over the past 8 months despite low Iraqi inflation and a weakening US economy and US dollar. The Iraqi economy has been on a continual surge of economic growth for the past couple of years as Iraq has continued to stabilize and rebuild. The news coming out of Iraq from numerous returning military members with various reliable sources indicates a rapid move and increase in valuation occurring prior to, or in conjunction with US troop reductions. Indicators also point to an increase in the Iraqi Dinar exchange rate occurring prior to, or shortly after Iraqi elections. It appears that administratively, the IMF, WTO, and other world financial entities are working in close conjunction with the Iraqi Government to bring Iraq’s financial system online with the rest of the world. The expectation is that the Iraqi Dinar will soon be freely traded through banks worldwide---further accelerating their recovery and economy, and adding to overall stability
;)
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#2 gman51

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Posted 09 March 2010 - 08:54 AM

"One compelling speculation that may relate to the value increase of the Iraqi Dinar is the actual amount of Iraqi Dinar being held by the United States Treasury Department. A significant increase in the value of the Iraqi Dinar would more than pay for cost of recent US war efforts in the Middle East and greatly alleviate the tremendous debt recently initiated by the US Government. The US Government’s current runaway spending seems to suggest that the US Treasury Department is expecting a massive windfall in the near future that will cover debt. Although this theory seems logical and despite the fact that this theory is parroted by many, this speculation can not be confirmed."


Many have said that Iraq could not cover all the Dinar held by many countries if the rate was anything above $1.00. The answer to this situation has been that the U.S. and other countries have agreed not to cash in their Dinar right away but wait and use it to buy oil when needed. If this is the case, how can it help the deficit, or be the reason for out-of-control spending, or fix our worldwide recession. Which one is it going to be: Cash in and fix our country and world economies, or hold on to them until we need oil? Can't have it both ways people.
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#3 dreamstealer

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Posted 09 March 2010 - 08:57 AM

gotta link?
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#4 DmsC

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Posted 09 March 2010 - 09:54 AM

Yeah go to Dinar banker and you can copy and paste this same "article"
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#5 Teresa82

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Posted 09 March 2010 - 10:04 AM

Very interesting, and makes much sense. I am really interested to see really who is right and who is wrong in the upcoming days. I am hoping for soon of course, but later's ok too!
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#6 mrref

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Posted 09 March 2010 - 10:09 AM

Its been said time and again that Iraq has more than enough to cover the dinars that out in circulation.. My question does anyone know the amount of dinars that is held by the US Gov.
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#7 terr

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Posted 09 March 2010 - 11:16 AM

A whole bunch!
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#8 dinollar

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Posted 09 March 2010 - 11:18 AM

just my opionion......after new govnment is seated and in control ,you will see a rv or ri and bring value to dinars. the people will then back a newly elected government from all walks of iraq.people will back the new government because it has brought stabability to the country and a value of their money,so all iraqis will gain from the new $value and support the government that has given all iraqis a new way of life. ther will be explosions and rife still in country but people will back the government that has supported the people// opionions are like noses and all have them .....thanks ......go ahead and bash me i dont care ,just stop and think before ya light the match on me
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#9 Joyce Bygall

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Posted 09 March 2010 - 11:39 AM

Gman51 - I'm probably all wet on this because I really don't know an awful lot about how it works, but here's my thoughts anyway. If the US treasury has beaucoup dinars & holds them for the RV and has agreed not to turn them in, but exchange for oil, then we do not have to pay them dollars which then stay in our treasury. This then keeps our money in circulation here to pay down debt or whatever. Is this naive or just dumb thinking on my part? All of you that understand more than I do, please respond. Thanks God bless.
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#10 gman51

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Posted 09 March 2010 - 11:58 AM

Joyce: Your example makes alot of sense, if we in fact keep the Dinars to exchange for oil. That is just one side of the coin (so to speak). What confuses me is, there are those who are saying that when Iraq RVs the Dinar, the treasury will exchange the beaucoup Dinar that they have and use it to pay down the deficit. See what I mean? One side says we will exchange for usd, the other says we will hold on to it and exchange it for oil. What is confusing is that I think both arguments are coming from the same camp............. Great dialogue though, thanks.
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#11 DPEASNUTZ

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Posted 09 March 2010 - 12:14 PM

I belive that they will trade it for oil. due to the fact that the US makes up 3% of the population and yet the US uses 25% of the worlds resorces CRAZY................
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#12 Joyce Bygall

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Posted 09 March 2010 - 12:46 PM

Gman You're welcome! - and thank you! God bless
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#13 Tarzan9

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Posted 09 March 2010 - 01:03 PM

they will buy the oil from iraq an sell it to us for much more
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#14 emiyoly

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Posted 09 March 2010 - 01:11 PM

That's what they been doing with Saudi Arabia and Kuwait, they bought it cheap and they bring it to US and sell it high prices!!!!!!!!!
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#15 Joyce Bygall

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Posted 09 March 2010 - 01:16 PM

AIN'T THAT THE TRUTH!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! God bless
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#16 bahtman

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Posted 09 March 2010 - 01:19 PM

Joyce and gman51,

The part where the US holds back dinar for future purchases doesn't bother me. What keeps getting me, and I can't get an answer from the NON LOP crew is:
It is estimated that there is around 3 trillion dinar with speculators.
If say, half of this is with US investors, at a $3.00 exchange rate, the US would have to fork over $4.5 trillion dollars to investors.
Where does this come from?
At least at an exchange rate of $1.00 or less, we could be in the range of hundreds of billions of dollars. Is that even plausible?

I surely hope so!!!

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#17 Joyce Bygall

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Posted 09 March 2010 - 01:50 PM

At this point my eyes are crossed & my brain has gone into hibernation!! I'm going to take 2 aspirin & lay down. See ya later guys! God bless
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#18 gr8cooker142

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Posted 09 March 2010 - 01:55 PM

This post is saying the same thing over and over and over and over again. It would be really nice to see different rumors not the same old beating a dead horse stuff time and time again. Its like copy and paste and look how smart I think I am. SORRY, again JMO
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#19 Catl6147

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Posted 09 March 2010 - 03:32 PM

Wow, another thing to think about when it does rv. Hopefully our government will do what benefits everyone, not just themselves, if they do hold beaucoup dinars and I'm sure they do.
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#20 rvtoday?

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Posted 09 March 2010 - 03:44 PM

just my opionion......after new govnment is seated and in control ,you will see a rv or ri and bring value to dinars. the people will then back a newly elected government from all walks of iraq.people will back the new government because it has brought stabability to the country and a value of their money,so all iraqis will gain from the new $value and support the government that has given all iraqis a new way of life. ther will be explosions and rife still in country but people will back the government that has supported the people// opionions are like noses and all have them .....thanks ......go ahead and bash me i dont care ,just stop and think before ya light the match on me


Exactly what I was thinking! Well said! Now the question is, when will the new government be seated and in control????? Hopefully soon! The transmission in my truck started slipping today!!

Edited by rvtoday?, 09 March 2010 - 03:47 PM.
miss spelling

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