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FREQUENTLY ASKED QUESTIONS ABOUT THE IRAQI DINAR Last Updated - 10 April 2013 Author's Note: Greetings and salutations to you! If you are new to DinarVets or even if you are just looking for some general explanation and information - this thread should prove useful for you. Please note, this is not a FAQ about the DinarVets or any other site nor does it represent the views of DinarVets or any other website. Nothing within this thread constitutes financial advice of any kind, and I am most certainly not a financial advisor or investment authority of any kind. This is simply a FAQ about the Iraq Dinar and all information contained here is meant for your entertainment only. I hope you find it helpful, and please do make suggestions for additions, as I will update it regulary. - gainesm This FAQ is arranged into sections: Glossary - an alphabetical list of commonly used abbreviations, names, and terms. Official Links - links to official governmental websites that may be useful for researching information about Iraq and their currency Reputable Links - links to reputable websites for news, translations, etc. Debate Topics - explanations of the most common debate topics surrounding the Iraq Dinar This FAQ will be updated as necessary. If you notice any errors or have any suggestions for improvement, please do not hesitate to let me know either here or through the PM system (if you're a VIP member) This FAQ will be updated as necessary. If you notice any errors or have any suggestions for improvement, please do not hesitate to let me know either here or through the PM system (if you're a VIP member) Glossary - If you have glossary terms to suggest for inclusion, I will add them. CBI: The Central Bank of Iraq. The CBI is responsible for setting the exchange rates, managing the currency auctions, and for establishing and maintaining the economic policies of Iraq. CoL: Abbreviation for the phrase "Cost of Living". Often used in discussions where explaining the buying power of a given currency in relative terms. Example: The COL in Iraq is about 35% of the COL in New York City. Such an example allows the person speaking to explain how much a person could expect to pay for goods or services in Iraq compared to the same goods or services in New York City - in this case, the example shows that what would normally cost $100 USD in New York City is roughly about $35 USD in Iraq. Dinar: A basic monetary unit for multiple countries in the Middle East, North Africa, and Yugoslavia. These countries do not share the same unit of currency, they merely use the same term to refer to their own currency. IMF: International Monetary Fund - a global organization of member countries who work toward international economic stability. IQD: The official Iraq currency commonly referred to as the Dinar or the Iraqi Dinar. This symbol is used in discussions relating to the "old" Iraq Dinar (pre 2003) as well as the "new" Iraq Dinar (post 2003) LOP: Term used to describe the adjustment of a currency's face value downward. Can precede or be a part of an effort by a country to issue a redenomination of their currency. Example: If the Iraqi Dinar were to undergo a "LOP", the 25,000 Dinar note could become a 25 Dinar note. A LOP does not entail a revaluation or adjustment in the currency exchange rate. The buying power, or value, of the notes would remain the same. Example: Turkey underwent a LOP whereby the new currency's face value was much less than the old currency's face value - but the buying power remained the same. Reinstatement: A term used to describe an event whereby a currency that has experienced temporary volatility (e.g. a short-term war that caused extreme market fluctuation or suspension) is brought back to its previous rate of exchange. In this scenario there was no official devaluation of the currency. In some cases a revaluation and reinstatement can lead to the same effect, so are often used interchangeably. Revaluation: This is a financial concept that refers to an intentional upwards adjustment in the exchange rate for the official currency of a nation by that nations officially recognized government. This is a financial concept that is meant to encompass a sudden increase in the value of the currency rather than a normal market appreciation. RI: Abbreviation for "Reinstatement" RV: Abbreviation for "Revaluation" Smart Card: a pocket-sized card with integrated circuits. In Iraq, smart cards are used to distribute monies to citizens. These cards are then able to be used much like debit cards for goods and services, at hospitals for medical records, and other locations where information stored on the card may be used. Typically these cards come with biometric security features to prevent theft or fraud. USD: The official currency of the United States of American commonly referred to as the US Dollar. Official Links - if you have official links to suggest, I will add them. Central Bank of Iraq: Official website of the Central Bank of Iraq. Here you can find CBI official news, historical information, and the most current official exchange rates Department of the US Treasurey: Official website of the US Treasury. Here you can search for information on Iraq for sanctions, agreements, and official rates of exchange, etc. Embassy of Iraq: Official website of the Iraq Embassy in the US. Here you can find news releases of agreements and meetings, and find official links for the various governmental agencies in Iraq International Monetary Fund - Iraq: The official page at the IMF relating to Iraq. Here you can find reports, studies, and recommendations for Iraq's economic future OPEC: Organization of Oil Exporting Countries. Here you can find information about the purpose of OPEC, news releases from OPEC, and current oil prices Reputable Links - if you have reputable links to suggest, I will add them. [note: "reputable" is subjective, but basically official or widely respected news outlets, and most news or business-related sites unrelated to the Dinar itself] Debate Topics - if you have suggestions for debate topics, I will add them. [note: the explanations given are to the best of my ability, but are not necessarily representative of my own views] Yes and no. The Kuwait currency never actually did a revalue. A revaluation of currency occurs only when the officially recognized government of a nation purposefully makes a positive adjustment to the rate of their exchange against other currencies. The Kuwaiti government-in-exile never changed the official exchange rate during the Iraq invasion. All they did was reinstate once they were restored to power. During that time the Kuwaiti Dinar was not tradable on the foreign market - though the "street value" of one of their Dinar had it around ten cents USD. Revaluation is an official financial concept, and while a currency may experience volatility and exchange at various rates for various reasons - it is not an actual revaluation unless the recognized government has stated so. That said, there are some who were able to profit off of the volatility Kuwait went through - and even though they did not RV, if Iraq does RV there will be those who will profit just as well. Nope. There is no date given or implied for the Iraqi Dinar to RV. It may, in fact, never occur. All the rumors and hype you read about an impending RV is all personal opinion - sometimes educated personal opinion and sometimes not so much - being released by those who care to offer their thoughts. There are many people who believe the Dinar will never RV and that choosing to speculate in it is a waste of time and money. There are many who disagree with that and believe it is not only possible, but probable that the Iraqi Dinar will RV. If you want to understand more about these views, read as many news articles from reputable websites as you can - and do not simply take the word of another person that any article or agreement cited says what they say it does. Research it on your own, and you'll have as much information as anyone else does. I'm sure they would like you to think so. You can certainly do that if you would like, but you'd be more informed - and making better decisions for yourself - if you research the rumors they are giving to the public. You may even find a high correlation with specific "gurus" and their Dinar sales cycles. The point is, when it comes to your time and money - you are free to do what you wish, but you'll be making better choices by not just taking someone else's word for it. Talk to people, read articles, and research. You'll end up just as informed as anyone else is on the matter. Yourself. Do your research - which means reading and talking to people and listening to opinions that are the opposite of what you want to hear. Evaluate it all. No one is more informed than you are able to be - and no one knows the timeline. Period. What you can do, however, is educate yourself about the terms, concepts, and people involved in the actual process for Iraq - and then pay attention, and never be afraid to ask questions. The more you know the better off you'll be. Possibly. It may even do both. There is no way to know for sure. While the idea of dropping some zeros has been discussed by Iraq, the last word on it was that they did not believe doing so at this time would be in their best interests.