Dinar Rumor Did Saddam personally set the Dinar exchange rate in the past?

[Mgrankin1]

I'm not sure if I'm posting this in the correct forum. I recently bought dinar and have been researching it. I read this at http://bizcovering.com/investing/the-iraqi-dinar-scam/: Let me know your thoughts and insight.

"Saddam

[jocko129]

Before saddam it was trading at 3+, Now this some years later you can nsay it should maintain the same value at 3+.

Look around the middle east, most of the countries are at 3+. and if they want to get on the Gulf dinar they MUST BE AT 3+ or will not qualify IMO.

[sandy040]

i had heard the same thing six years ago when i bought into this, that saddam had set the rate but in reality the real rate was .33....no links or evidence just what i was told by the kuwati that got me into this.

[bahtman]

33 cents!!!!!

SOLD AT .33!!!!!!!!!!!!

[sfredieu]

well .33 cents is three times better than .10 cents that some people say it will rv at.

[Barbann]

I'm not sure if I'm posting this in the correct forum. I recently bought dinar and have been researching it. I read this at http://bizcovering.com/investing/the-iraqi-dinar-scam/: Let me know your thoughts and insight.

"Saddam’s Exchange Rate

One of the most commonly quoted facts on Dealer’s websites is that the exchange rate under Saddam Hussein was one Iraqi Dinar for three US dollars. That is true, as far as it goes, but here is the catch. Saddam Hussein himself personally set that exchange rate. He could have said, “One Iraqi Dinar buys 20 US dollars”, if he had wanted to. Just because that was the official exchange rate, doesn’t mean that is what people were actually trading it for. The old Iraqi Dinar could not be freely traded on the world market, so this exchange rate was essentially meaningless. This rate was only open to those who were close to Saddam.

The most important fact to take out of this section: The Iraqi Dinar NEVER actually traded 1 Dinar for three US dollars in reality."

So if this is true does that mean that it could "revalue" but not really be able to be exchanged for the revalued amount?

The dinar was introduced into circulation in 1923, replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 13⅓ rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars. By not following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778, before a 5 percent devaluation reduced the value of the dinar to US$3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate.[2]

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.

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.

Between October 15, 2003 and January 15, 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes, with the notes printed by De La Rue 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."[3] 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.

These new banknotes led to a new industry of selling the new Iraqi dinar to oversea investors who hoped to profit from Iraq's new currency when the economy improved. The provisional government of Iraq has made this legal, but the banknotes are exchanged at different rates by companies wanting to make profit. Due to the success of this program, though, Iraqi dinar has been widely counterfited.

Although the value of the dinar appreciated following the introduction of the new banknotes from 4,000 dinars per U.S. dollar, at the time of their introduction, to a high of 980 dinars per dollar, it is now held at a "program" exchange rate, as specified by the International Monetary Fund,[citation needed] of 1170 dinars per US dollar at the Central Bank of Iraq. However, there is not yet a set international exchange rate and so international banks do not yet exchange Iraqi dinar. The exchange rate available on the streets of Iraq is around 1200 dinars per US dollar.

For a wider history surrounding currency in the region, see The History of British Currency in the Middle East.

[kwbeus]

Very interesting