13 replies to this topic

[Networth]

When I ask why people think the dinar must RV, one of the common answers I hear is "Iraq must have a tradeable currency". I don't know if people know what they mean when they say that. Or maybe I don't understand what they are saying but, in my opinon, the dinar is already a tradeable currency. I own dinar. To acquire those dinar, I had to trade dollars. Presumably, nearly everyone in this forum owns dinar. In some cases, people in this forum have disposed of their dinar. Obviously, in a basic sense, the dinar is a tradeable currency because we have already traded with it! We had very little trouble acquiring or disposing of our dinar. We found very eager sellers and very willing buyers. So I don't know what people mean when they say the dinar is not currently tradeable. Obviously, grocery stores and malls won't accept our dinar as payment for items we may want to buy from them. But they wouldn't accept euro or yen either. I wouldn't expect the currency of another country, any country, to be tradeable for goods and services in the US. If we traveled to Iraq, I'm sure we would have no trouble exchanging our dinar for goods and services offered there.

Perhaps they are talking about contracts and international transactions in Iraq not being denominated in dinar. That may be true but I don't believe that means a currency is not tradeable. Most international transactions are denominated in US dollars because the dollar is considered the world's reserve currency. If India buys wheat from Argentina, the transaction is denominated in US dollars. Yet the rupee is considered a "tradeable currency". So if a contract in Iraq is denominated in US dollars, I don't understand why that means the dinar is not tradeable. The vast majority of international contracts are priced in dollars already.

If anyone knows what is meant when someone refers to the Iraqi dinar is not being "tradeable" I would appreciate an explanation. I, for one, happen to believe it is NOT a reason for the dinar to revalue. If the dinar is to revalue, as many believe, it will have nothing to do with making the dinar a tradeable currency. In my opinion, the dinar is perfectly acceptable and tradeable as it is. You should strike it from your list of reasons why the dinar must revalue.

[Zemaduvant]

It's not traded on forex, the rate is also locked. I assume when it's not, that's our time.

[MrRich]

Well sure, anything is tradable in the sense that you're talking about, including beads and baseball cards. But that's not what dinar investors are talking about. They're talking about electronically, globally, exchanging dinar at all the banks that handle foreign currency ... etc.

And no, it doesn't have to RV to be tradable, but it does have to RV in order for Iraq to rebuild, de-dollarize, and attract new investors.

Edited by MrRich, 03 March 2011 - 04:16 PM.

[easyrider]

its not internationally recognized to big differences yes its a tradble currency but not at their potential. You have to understand this is a country that sits on vast amounts of oil just like saudi arabia, kuwait to name a few they are just rebuilding their infrastructure now believe me the dinar will be worth a lot in the coming years but IMHO they will revalue their currency very soon arab summit coming up WTO is looking promising for Iraq to be in with the big boys they need to rise the value of their currncy no getting around it.

[umbertino]

Tradable currency imo means officially and internationally recognized currency, the type that you walk into your bank and say you want to buy/sell IQD just the same as you do with all the other classic tradable currencies ie.USD, CAD,CHF,EUR,JPY,GBP..........That's what I mean by tradable..And yes, NO Middle East currency is currently tradable, not even Saudi Arabia or Kuwait money........Heck, not even the China Yuan is tradable so far...........

[jg1]

95% of their income is in dollars from oil revenues. It seems like they would want to sell all their dollars and buy back dinar before the RV.

[sandyf]

95% of their income is in dollars from oil revenues. It seems like they would want to sell all their dollars and buy back dinar before the RV.

They do, through the CBI currency auctions.

I do not think the CBI would say it is tradeable. They say it is illegal outside Iraq.
If it wasn't for the presidential order very few would be aware of it.

[Networth]

Tradable currency imo means officially and internationally recognized currency, the type that you walk into your bank and say you want to buy/sell IQD just the same as you do with all the other classic tradable currencies ie.USD, CAD,CHF,EUR,JPY,GBP..........That's what I mean by tradable..And yes, NO Middle East currency is currently tradable, not even Saudi Arabia or Kuwait money........Heck, not even the China Yuan is tradable so far...........

Good point. I think it just confirms my contention that there is nothing significant about making the dinar "tradeable". We should remove it from out list of reasons why the dinar must RV.

[smee2]

Sorry but in this case, tradeable does NOT mean what your humble opinion says it means. This is a matter of word usage.

I would bet that if you are not holding a brew in your right hand (if your are right handed) that you have your right hand resting on a mouse. Thirty years ago that would mean you were grasping a little, brown, furry, obnixious and perhaps diseased rodent with a long tail in right hand.

Tradeable ... I could trade you a loaf of bread for a bunch of carrots. Does that make bread and carrots tradeable? Only in a barter or trade vegetable market.

We are talking tradeable currency, and not just trade as in buying bread with carrots, but using what you have to trade as an economic tool At this point in time the IQD just is not that tool. It is not recognized by other nations as a currency in which they would do business, accomplish furtherance of their economy.

Think about it. Others are telling you too ... you could be stubborn and insist that by your standards it IS tradeable, but then I would have to insist that what your hand is resting on is a rodent.

smee2

[txk9popo]

While on this subject of whether the dinar is a tradable currency can anyone out there clarify on whether or not we will be able to still purchase dinar after 13303 expires in May? Or will U.S. buyers still be able to only hold dinar bought before that date?

[KNOW B.S.]

If it aint on forex its in no way tradable.
If you want me to take a dump in a box and mark it tradable i can ,thats how much your dinar is currently trading for........
1dinar=

Edited by KNOW B.S., 03 March 2011 - 10:27 PM.

[R2d2dc]

Thanks for the post. Many positive people helping make the question understood.

[tommyboy]

While on this subject of whether the dinar is a tradable currency can anyone out there clarify on whether or not we will be able to still purchase dinar after 13303 expires in May? Or will U.S. buyers still be able to only hold dinar bought before that date?

When XO13303 expires, we should be "grandfathered" to possess it. Hopefully, it will RV prior to that because I read somewhere (senior moment) that Obama saw no reason to extend 13303 since Iraq no longer needed the protection it afforded.

After the RV, we should be able to invest in any currency tradable on FOREX.

Anyone out there with better intel on these questions? I'd like to know for sure, too.

Edited by tommyboy, 04 March 2011 - 01:47 AM.

[In Iraq]

When I ask why people think the dinar must RV, one of the common answers I hear is "Iraq must have a tradeable currency". I don't know if people know what they mean when they say that. Or maybe I don't understand what they are saying but, in my opinon, the dinar is already a tradeable currency. I own dinar. To acquire those dinar, I had to trade dollars. Presumably, nearly everyone in this forum owns dinar. In some cases, people in this forum have disposed of their dinar. Obviously, in a basic sense, the dinar is a tradeable currency because we have already traded with it! We had very little trouble acquiring or disposing of our dinar. We found very eager sellers and very willing buyers. So I don't know what people mean when they say the dinar is not currently tradeable. Obviously, grocery stores and malls won't accept our dinar as payment for items we may want to buy from them. But they wouldn't accept euro or yen either. I wouldn't expect the currency of another country, any country, to be tradeable for goods and services in the US. If we traveled to Iraq, I'm sure we would have no trouble exchanging our dinar for goods and services offered there.

Perhaps they are talking about contracts and international transactions in Iraq not being denominated in dinar. That may be true but I don't believe that means a currency is not tradeable. Most international transactions are denominated in US dollars because the dollar is considered the world's reserve currency. If India buys wheat from Argentina, the transaction is denominated in US dollars. Yet the rupee is considered a "tradeable currency". So if a contract in Iraq is denominated in US dollars, I don't understand why that means the dinar is not tradeable. The vast majority of international contracts are priced in dollars already.

If anyone knows what is meant when someone refers to the Iraqi dinar is not being "tradeable" I would appreciate an explanation. I, for one, happen to believe it is NOT a reason for the dinar to revalue. If the dinar is to revalue, as many believe, it will have nothing to do with making the dinar a tradeable currency. In my opinion, the dinar is perfectly acceptable and tradeable as it is. You should strike it from your list of reasons why the dinar must revalue.

For one thing you can't walk into the bank (except in Iraq) and trade it back for U.S. currency. Second I will trade you 1,000,000 Iraqi dinar for 1,000,000 U.S. right now if you want to trade currencies.