Dinar worth three dollars BEFORE Saddam?

[BANE]

http://www.dinartrade.com/iraqmonetaryhistory.htm

That is the monetary history of the Dinar. Look at 1972. This was before Saddam correct? So for all those jackals that say "oh, Saddam set the value but it was only his value and it meant nothing..." Well here are facts!

Therefore the Dinar can be RV'd at three dollars folks!

[Funky Cold Medinar]

This is true! There was another link tOO, i believe it was connected to the CBI site, could be wrong, but I know I saw it somewhere, that had the whole history and timeline of the dinar, and there was a time long before Saddam when the IQD was worth over $4. Great post, thanks....blessings to ALL.....GO RV!

And I also believe that just before Saddam the IQD was between $2 and $3, so not far off there either, not tOO mention I have heard "so called" experts from JPMorganChase say that an RV tOO low would hurt them...think positive and think high.....blessings and GO RV!

Edited January 24, 2011 by Funky Cold Medinar

[Networth]

http://www.dinartrade.com/iraqmonetaryhistory.htm

That is the monetary history of the Dinar. Look at 1972. This was before Saddam correct? So for all those jackals that say "oh, Saddam set the value but it was only his value and it meant nothing..." Well here are facts!

Therefore the Dinar can be RV'd at three dollars folks!

I appreciate your enthusiam and I suppose anything is possible. However, Iraq doesn't even use the same currency today as it did 40 years ago. It's still called the dinar but it has no legal value in Iraq today. It may have numismatic value for it's rarity, but that's it. It's like old confederate currency in our country. You can't buy anything with it but there are some collectors that buy it for it's historical significance. Even if was the exact same currency, you'd have know considerably more information before you can make a fair comparison. 1) What was the GDP of Iraq in 1972? 2) How many dinar were printed and issued in 1972? I don't know the answer to either one of these questions but I suspect there weren't 6 trillion printed dinar floating around back then as there are today. Keep in mind the dollar has also weakened considerable since 1972. The fact that it was valued much higher in the past (especially 40 years ago) is completely irrelevant to what the value is today. I hope you're right and I hope it revalues at this old rate. But I strongly doubt it.

[Iraqi Queen]

The Dinar was absolutely more than $3.22 before and during Saddam's era. We were there. We know first hand the IQD was very, very, strong and they used to speak ill about the USD!

Back in 1978, we exchanged IQD for USD and it was very impressive. The IQD did not start to get weak and bad until sanctions were imposed on Iraq.

[zantac]

Before this gets out of hand perhaps this will help

Saddam himself valued the IQD at $3+ this was not or never recognised by any forex chart, company or currency trading sites, it was his own valuation it was never tried or tested on the open market.

So technically this rate is only an assumption of the market price you would have got at the time of the Saddam era.

Many compare this to the value it will reach when it RVs but again if the value has not been tried on the open market who knows what it will RV at.

[Munsch]

Thanks for the history of the dinar. Sounds like we need another "hard peg" ???

[pokerplayer]

Before this gets out of hand perhaps this will help

Saddam himself valued the IQD at $3+ this was not or never recognised by any forex chart, company or currency trading sites, it was his own valuation it was never tried or tested on the open market.

So technically this rate is only an assumption of the market price you would have got at the time of the Saddam era.

Many compare this to the value it will reach when it RVs but again if the value has not been tried on the open market who knows what it will RV at.

The voice of reason. Thxs Zantac I tend to agree with you here on that note.

pp

[BANE]

Before this gets out of hand perhaps this will help

Saddam himself valued the IQD at $3+ this was not or never recognised by any forex chart, company or currency trading sites, it was his own valuation it was never tried or tested on the open market.

So technically this rate is only an assumption of the market price you would have got at the time of the Saddam era.

Many compare this to the value it will reach when it RVs but again if the value has not been tried on the open market who knows what it will RV at.

I don't think Saddam was dictorating in old 72...So the value WAS what it was back then. Look at the charts.

http://en.wikipedia.org/wiki/Saddam_Hussein

Says he came into power in 1980. A full 10 years the Dinar was worth three dollars!!!

Edited January 25, 2011 by BANE

[dinarded]

http://www.dinartrade.com/iraqmonetaryhistory.htm

That is the monetary history of the Dinar. Look at 1972. This was before Saddam correct? So for all those jackals that say "oh, Saddam set the value but it was only his value and it meant nothing..." Well here are facts!

Therefore the Dinar can be RV'd at three dollars folks!

Be that as it may.....it's not the ENTIRE story.......

How many Dinar were in circulation in 1972 and what was the country's population?

[frankc]

You do realize it also depends on how much dinar is out there. How many dinar was in existence then? It's not just about rate. Right now there is close to $27 TRILLION Dinar out there. Where would they get that kind of money to pay for an RV. Come on, get real. And don't tell me they are going tobe willing to mortgage all of their entire oil wealth for the rest of their lives just to pay for an RV. They are not that stupid. I"ve seen all the games played with the oil numbers to exchange and I'm not buying it. Y'all need to let a little gas out of your space suits and take a breath of fresh air.

I want an RV too but not buying into these high rates.

[xxxgator]

Zantac I will have to agree with bane on this one .The dinar was at 3.22 before Sadamme Huesaine .The un after the invasion in Kuwait devalued the currancy. Sadame said skrew you to the UN and the world The dinar is worth 3.22 but the international community would not recognize it as such doing buisness with Iraq because of UN SAnctions .I beleive in the early 60's it was like 1 IQD to 2.72 USD The currancy later climbed as did most in the middle east supplying oil to the world. Iwas reading an Article on the history of The Iraqi dinar written By some one in USA or UK media not 3 day's ago.My Dates may be a little off AND no i don't have the link. But Bane is correct i do beleive. Peace

[TimS]

The Dinar was absolutely more than $3.22 before and during Saddam's era. W.e were there. We know first hand the IQD was very, very, strong and they used to speak ill about the USD!

Back in 1978, we exchanged IQD for USD and it was very impressive. The IQD did not start to get weak and bad until sanctions were imposed on Iraq.

Sorry, but the IQD could only be exchanged in Iraq for $3.22 ....as already said. the IQD never traded at $3.22 during the Sadaam era. Even if it did trade on the forex prior to Sadaam's era, which I doubt.....no one at the forex has ever produced an actual document showing it traded there......the big difference between today and say the dinar of 1972 would be the amount that was and is in circulation. Back in 1972 there was less than 27 billion dinar in circulation.....today we estimate today there is about 27 trillion dinar in circulation. This is where it gets tricky, but the fractional banking and undiscovered oil in Iraq seem to be the basis for the thought that it can RV at that same rate of $3.22.

....

Whatever your theory is as to the possible RV ....please don't just say it can RV at $3.22 because it was once worth that in the past. That does not apply......if it does RV at a high rate, it will be because thier economy can sustain it. Forget the past.......it is irrelavent. That was then....this is now. JMO

[beaver]

http://www.dinartrade.com/iraqmonetaryhistory.htm

That is the monetary history of the Dinar. Look at 1972. This was before Saddam correct? So for all those jackals that say "oh, Saddam set the value but it was only his value and it meant nothing..." Well here are facts!

Therefore the Dinar can be RV'd at three dollars folks!

Agreed.....

1932 Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86.1932–1949

1949–1971Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971.1959–1967Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967.1971One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began.1973Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US$3.39.1980It remained at this level until the outbreak of the Iran-Iraq War in 1980.1982In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt.1988In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US$3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate.1986–20031986–2003 between .33 cents to 1.32 to a dollar.2001Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.)2002GDP: purchasing power parity — $58 billion (2002 est.)2002Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002)2003In october 2003, the official Dinar-dollar exchange rate was ID1 to US$0.00027.2004–2005August 2004 till 2005, the official dinar-dollar exchange rate is ID1 to US$0.00068. Population: 25,374,691 (July 2004 est.)2006As of Jan 1st 2006, the official Iraqi dinar-US dollar exchange rate is ID1 to US$$0.00067.

Sorry, but the IQD could only be exchanged in Iraq for $3.22 ....as already said. the IQD never traded at $3.22 during the Sadaam era. Even if it did trade on the forex prior to Sadaam's era, which I doubt.....no one at the forex has ever produced an actual document showing it traded there......the big difference between today and say the dinar of 1972 would be the amount that was and is in circulation. Back in 1972 there was less than 27 billion dinar in circulation.....today we estimate today there is about 27 trillion dinar in circulation. This is where it gets tricky, but the fractional banking and undiscovered oil in Iraq seem to be the basis for the thought that it can RV at that same rate of $3.22.

....

Whatever your theory is as to the possible RV ....please don't just say it can RV at $3.22 because it was once worth that in the past. That does not apply......if it does RV at a high rate, it will be because thier economy can sustain it. Forget the past.......it is irrelavent. That was then....this is now. JMO

You are correct about the dinar not being traded in the open market during the Suddam Era, although just above this post i posted the history of the dinar and it has been as high as $4.86 against the pound.. good stuff..

Edited January 25, 2011 by beaver

[xxxgator]

the forex didn't come on line until 1995 or so, that changed the volume and the USD control in the market.Good post beaver .Was looking for the links and found a bunch of history pages but you did it already.

[Iraqi Queen]

Sorry, but the IQD could only be exchanged in Iraq for $3.22 ....as already said. the IQD never traded at $3.22 during the Sadaam era. Even if it did trade on the forex prior to Sadaam's era, which I doubt.....no one at the forex has ever produced an actual document showing it traded there......the big difference between today and say the dinar of 1972 would be the amount that was and is in circulation. Back in 1972 there was less than 27 billion dinar in circulation.....today we estimate today there is about 27 trillion dinar in circulation. This is where it gets tricky, but the fractional banking and undiscovered oil in Iraq seem to be the basis for the thought that it can RV at that same rate of $3.22.

....

Whatever your theory is as to the possible RV ....please don't just say it can RV at $3.22 because it was once worth that in the past. That does not apply......if it does RV at a high rate, it will be because thier economy can sustain it. Forget the past.......it is irrelavent. That was then....this is now. JMO

I wasn't aware that outside Iraq it was not being traded for $3.22. We received USD for our Dinars and those were the good old days. I suppose everyone was trading their Dinars in Iraq back then. I assumed you could get that rate outside as well.

I never said it would go back to $3.22. That was a different DV member. I will be happy to get whatever.

[sandyf]

The value of the currency is linked to the amount in circulation along with other factors.

Estimates were in the order of 20 billion dinar in circulation during Saddams era. Current rumers are that somewhere around 25 trillion of the new currency was printed. A factor of approximately 1250 to one.

When the dinar was devalued it was by a factor of about 5000 to one. Estimated value of $3 became approximately 1700/dollar.

Even allowing for the deterioration in the infrastucture, my simple mind says there is scope to come back to the international arena at a reasonable rate.

[gman51]

Before this gets out of hand perhaps this will help

Saddam himself valued the IQD at $3+ this was not or never recognised by any forex chart, company or currency trading sites, it was his own valuation it was never tried or tested on the open market.

So technically this rate is only an assumption of the market price you would have got at the time of the Saddam era.

Many compare this to the value it will reach when it RVs but again if the value has not been tried on the open market who knows what it will RV at.

Actually, the Iraqi Dinar was valued at or above 4.00 long before Saddam (In the 1940s). Check it out.

www.edinarfinancial.net

Edited January 25, 2011 by gman51

[Fummins]

http://www.dinartrade.com/iraqmonetaryhistory.htm

That is the monetary history of the Dinar. Look at 1972. This was before Saddam correct? So for all those jackals that say "oh, Saddam set the value but it was only his value and it meant nothing..." Well here are facts!

Therefore the Dinar can be RV'd at three dollars folks!

The game aint the same now Bane, as mentioned by the previous statistical data.

[JLT]

Wow, All you had to do is go to the CBI web site and look at the history.

http://cbi.iq/index.php?pid=History

When Iraq was part of the Ottoman Empire, a number of European currencies circulated alongside the Turkish pound. With the establishment of the British mandate after World War I, Iraq was incorporated into the Indian monetary system, which was operated by the British, and the rupee became the principal currency in circulation, at a rate of 1 dinar = 13⅓ rupees.

1930 - 1950

In 1931, the Iraq Currency Board was established in London for note issue and maintenance of reserves for the new Iraqi dinar. The currency board pursued a conservative monetary policy, maintaining very high reserves behind the dinar. The dinar was further strengthened by its link to the British pound, which was pegged at par with the British pound until 1959.

In 1947 the government-owned National Bank of Iraq was founded, and in 1949 the London-based currency board was abolished as the new bank assumed responsibility for the issuing of notes and the maintenance of reserves. The National Bank of Iraq continued the currency board's conservative monetary policy, maintaining 100 percent reserves behind outstanding domestic currency.

Initiated during the last years of Ottoman rule, commercial banking became a significant factor in foreign trade during the British mandate. British banks predominated, but traditional money dealers continued to extend some domestic credit and to offer limited banking services. The expansion of banking services was hampered by the limited use of money, the small size of the economy, and the small amount of savings; banks provided services for foreign trade almost exclusively. In the mid-1930s, the Iraqi government decided to establish banks in order to make credit available to other sectors of the economy. In 1936, the government formed the Agricultural and Industrial Bank. In 1940, this bank was divided into the Agricultural Bank and the Industrial Bank, each with substantially increased capital provided by the government. The government established the Rafidayn Bank in 1941 as both the primary commercial bank and the central bank, but the National Bank of Iraq became the government's banker in 1947. The Real Estate Bank was established in 1948, primarily to finance the purchase of houses by individuals. The Mortgage Bank was established in 1951, and the Cooperative Bank in 1956. In addition to these government-owned institutions, branches of foreign banks and private Iraqi banks were opened as the economy expanded.

1950 - 1990

In 1956 the National Bank of Iraq became the Central Bank of Iraq. Its responsibilities included the issuing and the management of currency, control over foreign exchange transactions, and the regulation and supervision of the banking system. It kept accounts for the government, and it handled government loans. Over the years, legislation has considerably enlarged the Central Bank's authority. In 1959 the peg was switched from the British pound to the United States dollar at the rate of 1 dinar = 2.8 dollars.

On July 14, 1964, all banks and insurance companies were nationalized, and, during the next decade, banking was consolidated. Following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778.

By 1987 the banking system consisted of the Central Bank, the Rafidain Bank, the Agricultural, Industrial, and Real Estate banks. A 5 percent devaluation reduced the value of the dinar to US$3.2169, the official rate which remained until the Gulf War, although in late 1989, the black market rate was reported to be 1.86 dinars for US$1.

1990 - 2003

After the Gulf War in 1991, and due to the economic blockade, the previously used Swiss printing technology was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.

2003 - Today

Following the deposition of Saddam Hussein in the 2003 invasion of Iraq, the Iraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance began printing more Saddam dinar notes as a stopgap measure to maintain the money supply until new currency could be introduced.

The Banking Law was issued September 19, 2003. The law brings Iraq’s legal framework for banking in line with international standards, and seeks to promote confidence in the banking system by establishing a safe, sound, competitive and accessible banking system.

Between October 15, 2003 and January 15, 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes, with the notes printed using modern anti-forgery techniques, to "create a single unified currency that is used throughout all of Iraq and will also make money more convenient to use in people’s everyday lives. Old banknotes were exchanged for new at a one-to-one rate, except for the Swiss dinars, which were exchanged at a rate of 150 new dinars for one Swiss dinar.

The Central Bank of Iraq (Arabic: البنك المركزي العراقي) was established as Iraq's independent central bank by the Central Bank of Iraq Law of March 6, 2004

[Adam Montana]

Are there really still people out there that don't believe the Dinar was really worth more than the USD at several times in history?

....

Whatever your theory is as to the possible RV ....please don't just say it can RV at $3.22 because it was once worth that in the past. That does not apply......if it does RV at a high rate, it will be because thier economy can sustain it. Forget the past.......it is irrelavent. That was then....this is now. JMO

This is EXACTLY why I say an "RI" (ReInstatement) is not going to happen. The correct term is RV (ReValue), and it will be based on current facts... not past values.

Wow, All you had to do is go to the CBI web site and look at the history.

http://cbi.iq/index.php?pid=History

Where's that clapping smiley... nice job.

[JLT]

Are there really still people out there that don't believe the Dinar was really worth more than the USD at several times in history?

This is EXACTLY why I say an "RI" (ReInstatement) is not going to happen. The correct term is RV (ReValue), and it will be based on current facts... not past values.

Where's that clapping smiley... nice job.

Thanks!!!

[Goeers]

Check this link out....over 4 bucks in the thirties!!!!! Of course we were in a depression

http://www.edinarfinancial.net/history.php

[0331]

Goeers,

Nice link... I also like this one. I believe it's a more objective source.

http://www.globalsecurity.org/military/world/iraq/currency-reform.htm

It also offers a very comprehensive history of the Dinar.

[VIZIOIRAQI]

Boring are we bored