Kuwait Dinar Value ?

[TrinityeXchange]

Iraq's oil exports should be the current market price in dollars :

nothing to do with IQD value

great comment one2one and this is the exact formula i have been researching lately which is why i have yet to bring it up.  iraq, not unlike many of the other oil rich MENA exporters, main export is oil.  oil is denominated in dollars (not dinar) which means any discount given to patrons/importers cannot be done through an exchange rate because they are all denominating in dollars (for the most part).  any discount will have to come by way of usd price per barrel.  

 

if this theory is true, why is iraq short changing itself at a RIDICULOUSLY undercut rate??  if i am selling oil at $65pbd usd and then exchanging that for dinar @ 1166 : 1 , wouldn't it stand to reason to exchange $65pbd usd for dinar @ 10 : 1 ???  the only sense i can make of it is that:

• purchasing power will shoot to the roof and destroy ANY chance for a domestic market to be established.  in other words, why establish a domestic market when i have the purchasing power to buy whatever i want through imports?
• a swelling in capital account might spur foreign over-speculation and overwhelm an underdeveloped financial system.
• iraq needs to be sure that it can maintain a new exchange rate prior to open the dam

i am still reading and looking through financial data to understand the reasons why but this is all i can come up with right now.  great point though!  +1

Edited March 17, 2015 by TrinityeXchange

[umbertino]

I have a heck of alot of IQD in my shoebox Botzwana. To be honest I do not even know how many. But that box is pretty full and I have big feet LOL. The last thing I want is a Lop. I still totally believe the Dinar is undervalued, I just dont buy into the incredibly high 100,000 % increase in value so many want to believe. Don't get me wrong I would be incredibly wealthy if that was to happen, I just don't see that kind of rate being possible.  Im actually hoping on 1 cent rate. That would be a 1000% gain on our money.  Who could complain at that kind of return? Is that a LOP?  I don't see how that could ever be considered a LOP.

 

It is a bummer that I did have to dump my 50s recently. Nobody saw that coming including all of the Gurus or Newshounds.

Agreed SoCal.... 1c RV would mean a 1,000% gain or 10fold our Capital....10c  would  mean instead 10,000% gain or 100fold our Capital ( more or less)... Nothing to complain about really

 

We can only wait & hope ( just for a change)

Edited March 17, 2015 by umbertino

[one2one]

 a 1 cent RV would be about $ 30,000 on my original $ 3200 investment :

i might watch it for awhile then say

adios

[TrinityeXchange]

i might watch it for awhile then say

not i captain.  the minute they change that rate, i am out!  i don't have the stomach to wait around and see if iraq can keep it together long enough to stabilize the new rate.  

[SocalDinar]

Thank You very much Trinity.

You are always a voice of reason here, Your keen sense of judgement and acumen is truly appreciated. You tell it like it is in a manner that we can understand  No spin, No BS and no drama. You inform us of the good along with the bad.

 

And like you the moment they change the rate and we have a place to exchange them I am done.

 

 

And Umbertino you are so right. 1000 % gain would be a pretty darn good day . Hope you got a chance to take that long deserved vacation you were wishing for. Even a mini vacation does wonders my friend.

Edited March 18, 2015 by SocalDinar

[one2one]

quite a few people are ready to bail out at anything they can get :

 

too long of a ride and getting tired :

 

i never believed a word of the rate as high as $ 3.53 or anything near that

[SocalDinar]

Kuwait is also the reason I got into this investment.  You see... I figure These people are a proud race and to have a country right next door that has a Dinar values so high in the world, logic dictates that Iraq will have to match them or at least get close just to save face.  It was and has always been my gut feeling this will happen.

Most Arabs are Caucasion and most Britons are direct descendants of farmers who left modern day Iraq and Syria 10,000 years ago