Govt holding dinar for oil

[AustinMom]

I would like to ask for clarification on a topic... If I understand what I have been reading, governments posses moola moola dinar (China, US, etc...) for oil. Something about agreements to purchase Iraq oil for $35 a barrel. There are trillions of dinar outside of Iraq - the most volume being held by governments. I am sure that the hoarding of that much dinar came with agreements in place about using the dinar for oil... The Iraq government wants to dedollarize their economy and make the Iraqi Dinar their worldwide, recognizable currency. The RV/RD (whatever) is not being done because of the trillions of dinar they would have to convert. I agree with the posters who say that Iraq couldn't RV the trillions of dinar which is "worldwide." But, if the major holders of the dinar are other governments, and they want to use dinar for oil, then Iraq would only need to convert the dinar from the smaller "holders" (individuals, small investment groups, etc...) I do not think that we in the "smaller groups" are going to bankrupt Iraq.

I do not know if I understand this aspect of the RV/RD very well. It seems that I am missing a chapter in the book we all have called "The Iraqi dilema !!!"

Please enlighten me.... I am new, and I am just trying to educate myself.

Thank you.

[Halo9678]

IMHO,

While I'm no 'guru', I will offer my two cents. You're tracking for the most part. The 'error' is that thinking Iraq differentiates between small and large investors. When the dinar RVs/RDs, etd. it will have one rate across the board. All will buy/sell at the given rate posted by the CBI. Countries hold other currencies all the time, it eases the transactions between the two. That's where import/export taxes/fees come into play. It's much easier to deal with a good in the same currency. While oil is the dominant export, Iraq does have other resources it can bring to bear that will definitely make it an economic hub in the future. Oil just happens to be the main thing that everybody sees. Condiering that you are new, I'd as you to research the Marshall Plan as well. It has been cited many times over as the blueprint for what is going on in Iraq. It may also give you some insight as to how far we have to go before and RV/RD. Best of luck, happy hunting, and welcome to DV.

Halo

[dinaris4me]

look at it this way, Iraq can currently produce about 1 billion barrels of oil per year, and at $100 per barrel that oil is worth roughly 100 Billion US dollars. If we and China and everyone else held "Trillions of dinar" to purchase oil at $35 per barrel Iraq couldn't produce enough to supply everyone. Also, currently all oil is purchased in US dollars so we couldn't buy it with dinar we would need to convert it to US dollars first. To do that we would need to exchange it with Iraq. But they only have about 70 Billion US dollars to exchange with.

Basically, it is not likely that we are holding dinar in order to trade it for oil.

[SPRAYERDUDE]

I would like to ask for clarification on a topic... If I understand what I have been reading, governments posses moola moola dinar (China, US, etc...) for oil. Something about agreements to purchase Iraq oil for $35 a barrel. There are trillions of dinar outside of Iraq - the most volume being held by governments. I am sure that the hoarding of that much dinar came with agreements in place about using the dinar for oil... The Iraq government wants to dedollarize their economy and make the Iraqi Dinar their worldwide, recognizable currency. The RV/RD (whatever) is not being done because of the trillions of dinar they would have to convert. I agree with the posters who say that Iraq couldn't RV the trillions of dinar which is "worldwide." But, if the major holders of the dinar are other governments, and they want to use dinar for oil, then Iraq would only need to convert the dinar from the smaller "holders" (individuals, small investment groups, etc...) I do not think that we in the "smaller groups" are going to bankrupt Iraq.

I do not know if I understand this aspect of the RV/RD very well. It seems that I am missing a chapter in the book we all have called "The Iraqi dilema !!!"

Please enlighten me.... I am new, and I am just trying to educate myself.

Thank you.

I Don't know why you were given a negative for asking a question? I evened you back out +1

Years ago the so called news stated that the U.S. was holding Trillions in Dinar with the agreement that We could use the Dinar for 25 years to buy Oil for a certain locked in price. Well that and all the "probably hundreds" of stories "as far as I'm concerned" have never had any positive backing and just vanished! Even legitimate news like the D.F.I. funds return and how relative it was to the RV vanished! Heck I could go on and on! My recommendation to anyone new to this investment is to look at all news, but consider it all entertainment "Time will tell, take everything very lightly or you will GO NUTS !!!!!