The Kuwaiti Dinar DID NOT REVALUE!!!

[dontlop]

REMEMBER SHABS GETTING ALL TEED OFF BECAUSE THE GOVT WAS TRYING TO UNDERMINE THE CBI INDEPENDENT REGULATORY ATHURITY .. WHEN  THEY WANTED TO   PUT OUT  LOWER DENOMS IN JULY ?

 

 AND HE SAID NO .. THEY NEEDED TO DO IT  AT THE BEGINNING OF THE YEAR  AND AT THE BEGINNING OF THE BUDGET ..

 

 HE WAS MAD BECAUSE HE DIDNT WANT TO LOSE THAT INDEPENDANCE HE GAINED IN THE 2004 LAW .. THERES BEEN A FEW BICKERINGS OVER THAT .. THE GOVT WANTS CONTROL OVER MONETARY POLICY .. BUT THAT LAW PROHIBITS ITT

[dontlop]

THE CPA MAY OF HAD A HAND IN THE RV OF THE SWISS DINAR .. BUT WHATS THE DIFFERANCE ANYWAY ..   THE CBI  HONORED IT .  THEY   RVD  THE  OLD OFFICIAL EXCHANGE RATE  OF THE DEMONETIZED SWISS DINAR IN 2003 NO MATTER HOW IT WAS DONE ..IT WAS DONE

Dr. Sinan Al-Shabibi (Arabic: الدكتور سنان الشبيبي‎) is an Iraqi economist who served as the governor of the Central Bank of Iraq from September 2003 to October 2012.

 

WHERE DID HE WORK AT ?

 

Al-Shabibi introduced the bank's employees to modern finance. He made the bank switch from typewriters and calculators to computers, introduced it to financial instruments like currency auctions, and replaced Iraq's pre-2003 banknotes with the New Iraqi Dinar between October 2003 and January 2004  <<< WHO REPLACED THEM ... SHABBS

 

In 1949, the currency board was replaced by the National Bank of Iraq, which had been founded two years before. The National Bank of Iraq became the Central Bank of Iraq in 1956.^[1]

The Central Bank of Iraq was established as Iraq's independent central bankby Central Bank of Iraq Law 2004 with authorised capital of 100 billion dinars.^[2] According to the law, 100% of the bank's capital stock shall be held by the State and is not transferable.

Read more: http://dinarvets.com/forums/index.php?/topic/144066-my-take/page-51#ixzz2PUTwCzbf

Edited April 4, 2013 by dontlop

[dontlop]

WELL RVPLEASETODAY TOOK THAT CONVERSATION TO THE LOPSTER TANK .. HE DOESNT WANT YOU ALL TO SE WHAT A XXXX HE IS .. HE NEEDS  4 OR 5 LOPSTERS GANGING UP ON ONE PERSON    TO TRY TO PROVE HIS OPINIONS ARE FACTS .. THEY MOSTLY CALL NAMES AND INSULT  .. BUT THATS HOW HE WAS RAISED.. YOU DONT SEE RVPLEASETODAY BACKING ANY OF HIS CLAIMS WITH LINKS .. WERE ALL JUST SUPPOSED TO TAKE HIS WORD FOR THE TRUTH ..

HS WORD ISNT VERY RELIABLE .. IF HE SAYS ANYTHING .. REASEARCH IT YOURSELF

[Choppermike]

WFC - I don't hold any KWD.

Edited April 4, 2013 by Choppermike

[RVPleaseToday]

Come on, dontlop. I've posted link after link to you. You simply ignore them.

[SWFloridaGuy]

Since 1960 there have been 25 episodes of large nominal and real appreciations (granted not in the range of what we're hoping for). If you solely look at historic large currency appreciations, even a 20% increase, runs the risk of having negative long term effects. A 100,000% increase is by far the most agrressive approach every undertaken, if indeed that is the plan, be that long-term of short-term. But I also believe that if any country could ever pull this off, it is Iraq. They are even now saying that's their goal. We're just unaware of how they will go about achieving this.
 
The macroeconomic effects of "appreciation shocks" differ between developed and developing countries. Studies have shown that the immediate output response of large RVs is positive, i.e. output growth accelerates, but they turn negative after about three years.
 
For years now economists have been studying ways to raise the value of the IQD and sustain that growth as well. If they were planning a straight redenomination with no significant rate increase they would have never spent this much time studying the long term effects, in-country (and out) security issues, counterfeiting, dedollarization and how to institute a market-based economy where they are respected as a borrow in the eyes of global capital markets.

Listed below in chronological order are the former large currency appreciation shocks.

Australia 1971 - 10.30%.
Sweden 1977 - 11.30%.
Ireland 1978 - 22.00%.
Malaysia 1978 - 16.50%.
Algeria 1980 - 28.00%.
Singapore 1980 - 12.40%.
Belize 1981 - 16.00%.
Algeria 1982 - 11.70%.
Ivory Coast 1983 - 26.40%.
Cameroon 1984 - 21.20%.
 Spain - 1986 19.00%.
Singapore 1988 - 17.00%.
Spain 1988 - 11.20%.
Germany 1968 - 12.90%.
Japan 1970 - 24.00%.
Switzerland 1971 - 20.60%.
Switzerland 1974 - 13.00%.
Japan 1975 - 20.90%.
Romania 1980 - 35.40%.
 Taiwan 1986 - 11.40%.
Chile 1992 - 15.00%.
Colombia* 2004 - 23.00%

Edited April 4, 2013 by SWFloridaGuy

[dontlop]

Come on, dontlop. I've posted link after link to you. You simply ignore them.

THAT WAS 15  TOTAL POSTS BY  RVPLEASETODAY ..  NOT ONE LINK ON A SINGLE POST  ..YET HE POSTS LINK AFTER LINK  BUT I IGNORE  THEM ...

 

 

 

 THE CBI SETS WHAT IS CALLED ..LISTEN UP RVPLEASETODAY ..LISTEN UP ..

  THEY SET ";OFFICIAL RATES ";

 

 

   SO IF YOU CAN PLEASE SHOW ME  THE OFFICIAL  EXCHANGE RATES  FOR THE SWISS DINAR FROM 1992 THRU SEPTEMBER 2003  RVPLEASETODAY   YOU SAY YOU HAVE POSTED LINK AFTER LINK . BUT I GINORE THEM   JUST POST ONE .. THAT SHOWS THE OFFICIAL RATES FOR THE SWISS DINAR BEFORE THE INVASION

 

 

 

 ALL YOU EVER  POST  IS THE CONVERSION PERIOD  RATES .. HOW CAN YOU DISPROVE A RV .. IF YOU ONLY GIVE ONE SET OF NUMBERS ..

 

 AND NOT THE BEFORE AND AFTER NUMBERS ..  YOUR VERY DECIETFUL RVPLEASE TODAY . AND PEOPLE NEED TO  NOT TRUST  YOU .

 

I GIVE YOU BEFORE AND AFTER NUMBERS FOR THE OFFICIAL EXCHANGE RATES FOR THE SWISS DINAR .. YOU ONLY GIVE THE CONVERSION RATES AND SAY THEY ALWAYS WERE THE SAME WHEN THEY WERE DOMONETIZED ANS DURING CONVERSION PERIOD ..

 

 YOU CANT DENY THE OFFICIAL EXCHANGE RATES OF THE CBI .. AND GOVT OF IRAQ .. WERE ZERO BEFORE THE INVASION .. AND WAS RVD AFTER THE INVASION.

 

 

 

 

 YOU DANCE AROUND THE OFFICIAL RATES .. ISSUE  ON THE SWISS DINAR ..

 

 

 

 BUT YOU STICK TO YOUR OFFICIAL RATES   WHEN TALKING ABOUT THE KUWAIT DINAR .. 

 

 

 

 

[The Machine]

oh give it up dontlop .... the KWD was reinstated at the programe rate which never changed after Saddam was kicked out, end of story.

 

try spin it what ever way you want .... you cant beat the truth.

[dontlop]

oh give it up dontlop .... the KWD was reinstated at the programe rate which never changed after Saddam was kicked out, end of story.

 

try spin it what ever way you want .... you cant beat the truth.

 

I AGREE WITH YOU 100% .. THE OFFICIAL RATES WERE  REVALUED AFTER SADDAM WAS REMOVED .. FOR THE SWISS DINAR .. NEVER SAID THEY WERNT ..

 

 SO I DONT KNOW WHAT YOU MEAN BY  TRYING TO SPIN ANYTHING .. IVE NEVER SAID ANYTHING TO THE CONTRARY .. BUT RVPLEASETODAY HAS .. HE SAYS IT  NEVER CHANGED BEFORE OR AFTER .. HE SAYS IT WAS ALWAYS THE SAME .,. BEFORE AND AFTER ..

 

 I AGREE WITH THE TRUTH ..

 SO WHAT IS IT YOU WANT ME TO GIVE UP ON ?

WHAT WAS THE OOFFICIAL EXCHANGE RATES FOR THE SWISS DINAR BEFORE SADDAM WAS REMOVED..?

ZERO?

I GUESS YA GOT TO KNOW WHO SETS OFFICIAL EXCHANGE RATES ..

 

THE GOVT OF A COUNTRY AND OR ITS CENTRAL BANK

 

 THE GOVTOF IRAQ  AND THE CENTRAL BANK ... DEMONETIZED THE SWISS DINAR IN  1990 ..

 

 

  SO LIKE I SAID WHATS THE OFFICIAL EXCHANGE RATE OF A DEMONETIZED  CURRENCY ..

 

ANY WHERE IN ANY COUNTRY

 

 SO I SHOULD GIVE IT UP ? AND EXCEPT   RVPLEASE TODAYS VERISION ?

Edited April 4, 2013 by dontlop

[The Machine]

the official rate was Reinstated ...... not revalued.

 

you are correct the rate on the street when saddam took over was cents to the dinar but the official rate was never changed

[dontlop]

SORRY HIS VERSION IS NOT THE TRUTH

IT WAS MADE LEGAL TENDER   FOR THE  CONVERSION PERIOD . .. ITS LISTED AS THE CONVERSION PERIOD ..

 

 REINSTATED FROM WAHT ?  A MARKET VALUE ?

THATS NOT AN OFFICIAL EXCHANGE RATE ..

 

 THE GOVT OR CBI SETS OFFICIAL RATES

YES IT WAS OFFICIALLY RECOGNIZED  FOR A TIME PERIOD OF 4 MONTHS IN A PERIOD CALLED THE CONVERSION PERIOD ..

 

 DURING THIS CONVERSION PERIOD .. THE SWISS DINAR WAS GIVEN LEGAL TENDER STATUS .. FROM OCTOBER 2003 TILL JANUARY 2004 ..

 

 WHEN THEY GAVE THE SWISS DINAR  LEGAL TENDER STATUS BACK AFTER 13 YEAS  OF BEING DEMONETIZED  TO ZERO OFFICIAL EXCHANGE RATES ..  THEY GAVE IT A NEW OFFICIAL EXCHANGE RATE OF 150 NEW BREMMERS FOR ONE SWISS DINAR ..

 THE MARKET VALUE UNLIKE KUWAITS MARKET VALUE WAS DETERMINED  TO BE A FACTOR ON  ITS REVALUATION OF ITS OFFICIAL  EXCHANGE RATE

 

 NOW IN KUWAIT IT WAS THE OPPOSIT .... THATS WHY THEY DETERMINED  IT WASNT A REVALUATION  BECAUSE THE OFFICIAL EXCHANGE RATES  NEVER CHANGED .. BUT PEOPLE MADE MONEY BECAUSE THE MARKET RATES  ON THE STREETS FELL FOR THE 6 MONTH PERIOD

 

 SO I CAME TO THE CONCLUSION THAT IF THE OFFICIAL RATES NOT CHANGING MEANS IT DID NOT REVALUE .. THEN SINCE THE SWISS DINARS OFFICIAL EXCHANGE RATES  DID CHANGE ..THEN THE SWISS DINAR  MUST BE  TAKEN AS A REVALUATION ..

 THE OFFICIAL EXCHANGE RATES WERE CHANGED AFTER THE  REMOVAL OF SADDAMS GOVT . GIVING IT 150 TO ONE  EXCHANGE RATES .. HIGHER THAN ONE TO ONE .. OF  THE SADDAM DINAR THAT WAS NOT DEMONETIZED AT ALLL TILL AFTER THE CONVERSION PERIOD  ENDED IN JANUARY 2004

 

Legal tender” means Iraqi dinar banknotes and coins issued by the CBI, that are
valid and have not been repealed,

 

 

Section 2
Currency Exchange

CBI shall be responsible for the exchange of Iraqi dinar banknotes currently
circulating in Iraq and may issue Administrative Instructions consistent with this
Order, for the purpose of implementing and facilitating the issuance of the New Iraqi
dinar and the currency exchange.

 

 

The CBI is, pursuant to Article 34 of the Central Bank of Iraq Law No. 64 of
1976, as amended, the sole authority in the Republic of Iraq vested with the power
to issue legal tender currency.

 

 

Section 5
Official Conversion Rates


The 1990 dinar banknotes and the Swiss dinar banknotes and coins shall be
exchanged against New Iraqi dinar banknotes at the official conversion rates of one

(1) 1990 dinar to one (1) New Iraqi dinar, and of one (1) Swiss dinar to one-hundredand-
fifty (150) New Iraqi dinars.
Section 6
Legal Tender Banknotes

 

1) During the conversion period, 1990 dinar banknotes, Swiss dinar banknotes and
coins, and New Iraqi dinar banknotes shall all be legal tender banknotes in Iraq
and each type of Iraqi dinar may be used as such in proportion to its Official
Conversion Rate. <<<<<<<<< IT WAS DURING THIS PERIOD AFTER SADDAM WAS GONE THAT  THE SWISS DINAR REGAINED  LEGAL TENDER STATUS

http://www.casi.org.uk/info/cpa/20031015_CPAORD43.pdf  <<< LINK

) The exchange of currently circulating 1990 dinar banknotes and Swiss dinar
banknotes and coins against New Iraqi dinar banknotes shall take place during the
Conversion Period by exchanges at the Official Conversion Rates

Section 1
Definitions


“CBI” means the Central Bank of Iraq.

“Conversion Period” means the period of time from October 15, 2003, up to and
including January 15, 2004.

 

THE LINK IS RIGHT HERE

IF ITS OFFICIAL EXCHANGE RATE VALUE CHANGED . THEN IT WAS REVALUED

Edited April 4, 2013 by dontlop

[The Machine]

oh I give up

 

the government did set the rate ....Saddam invaded .... the government fled the country.

 

Saddam flooded the country with his own money replacing the KWD.

 

the KWD was not exchanged in any bank around the world while Saddam took over

 

Saddam was kicked out ..... the government returned & the official rate which they set years before the invasion was reinstated.

 

its that simple.

 

 

this will be my last post on this thread, I cant be bothered with this.

[dontlop]

OK THANKS . THE REINSTATED OFFICIAL RATE WOULD OF BEEN MORE INLINE WITH 3 DOLLARS IF IT WAS REINSTATED  TO BEFORE SADDAM PRINTED THE SADDAM DINARS . 

 

 BUT IT WAS  REVALUED AT AROUND .0025 CENTS .. SO THATS NOT REINSTATING THE OLD OFFICIAL RATE

FROM 1994 TO 1987 . THE OFFICIAL RATE FOR THE DINAR WAS   .310 .... ACCORDING TO THE UN EXCHANGE RATES ..

 

 BUT AFTER 1990  THE SWISS IRAQI DINAR WAS DEMONETIZED .. ITS OFFICIAL EXCHANGE RATE WAS ZERO .. UNTIL AFTER  THE COILITION PROVINCIAL  AUTHORITY  TOOK OVER

 

 

 IN OCTOBER 2003 .. THE CPA  ALONG WITH THE CBI .. MADE THE SWISS DINAR LEGAL TENDER FOR A CONVERSION PERIOD ..

 

THEY REMONETIZED IT .. AND GOVE IT A NEW ,, OFFICIAL ECHANGE RATE .. BUT ONLY TEMPORARY . INTIL JANUARY 15  2004 ..

 

 

THEN THE SWISS IRAQI DINAR  AND THE SADDAM DINAR . WERE DEMONETIZED ..

 

 SO WHAT DO YA THINK THE  SADDAM  AND SWISS DINARS  OFFICIAL EXCHANGE RATES ARE TODAY ,, SINCE THEY ARE DEMONETIZED RIGHT NOW ....

 REMEMBER ONLY THE GOVT OR CENTRAL BANK SETS AND MAINTAINS A CURRENCY OFFICIAL  EXCHANGE RATES

NOT A TOWN ..OR SOME GUY

AND ONLY A GOVT OR CENTRAL BANK CAN   PUT OUT LEGAL TENDER 

  THATS LIKE SAYING THE ILLEGALS IN THE USA CAN MAKE LEGAL TENDER AND DISTRIBUTE IT AND EXCHANGE IT AS LEGAL TENDER AT THE FEDERAL RESERVE

Edited April 4, 2013 by dontlop

[dontlop]

the official rate was Reinstated ...... not revalued.

 

you are correct the rate on the street when saddam took over was cents to the dinar but the official rate was never changed

YOU KNOW WHAT MACHINE .. I AGREE 100% .. I THINK YOU AND I WERE  TALKING ABOUT  TWO DIFFERENT THINGS HERE ..

 

 I WAS  TALKING TO RVTODAYPLEASE ABOUT THE IRAQI CURRENCY .. YOU WERE TALKING ABOUT THE  KUWAITI DINAR ..

 

 I AGREE THE KUWAITI DINARS  DINAR WAS REINSTATED .. THE CENTRAL BAMK OF KUWAIT  NEVER CHANGED ITS  OFFICIAL   ECHANGE RATES ..

 

 SORRY FOR THE CONFUSION .

 

 FOR SOME DUMB REASON I THOUGHT YOU WERE TELLNG ME TO GIVE IT UP ABOUT THE SWISS IRAQI DINAR ..

 

 

 

 BUT I WAS  CHATTING BACK AND FOURTH TO RVPLEASETODAY ABOUT THE IRAQI SWISS DINARS  CHANGES IN THE OFFICIAL EXCHANGE RATES  AFTER THE INVASION BY   THE US .IN IRAQ ..//.. . NOT ABOUT THE KUWAIT DINAR AFTER THE INVASION OF KUWAIT BY SADDAM

[RVPleaseToday]

So how much did you make on that Swiss dinar to New dinar RV, Donlop? Must have made a killing.

 

Still can't figure out what it has to do with a dinar to dollar RV today.

Edited April 5, 2013 by RVPleaseToday

[JoeB]

YOU WERE TALKING ABOUT THE  KUWAITI DINAR ..

 

I thought that this thread was about the Kuwaiti dinar...

[dontlop]

So how much did you make on that Swiss dinar to New dinar RV, Donlop? Must have made a killing.

 

Still can't figure out what it has to do with a dinar to dollar RV today.

 that was an incountry rv .. no one made very much money off it , you know that  we alraeady been over that on another thread.. the  new rates were still less than a penny .. i think you said the swiss dinar rates only changed to .. i think you said .0025 .. ..  which means the iraqis were still poor .. after the exchange ..

 

 the discusssion lasted about 5 freaking days .. you were there daily ..

 

  if it rvalued to .00025 from zero  thats not alot of money but percentage wise .. its a bunch of zerros ..   way over 100,000 percent ..

 

lol

 

 here you do the math

 

 zero is hard to equate from so we will use next to nothing for the swiss dinars official exchange rate while it was demonetized ..and worth the same as the saddam   dinars notes  official exchange rates  are today as it too is demonetized  just like the swiss dinars were .

 

 lol

 

 

 so hers some numbers for ya figure it out ..

 

the old demonetized swiss dinar  official exchange rates at the cbi were  less than >>> .0000000000000000000000000000000000000000000000000000000000000000000000000000000001 cents per dinar ..

 

 and you say it revalued its official exchange rate to around .0025 .... so .. how many hundreds of thousands percent revaluation  of the official exchange rates  was that ?  

 

 quite a bit . i was trying to make a simple point   but you and the lopstars were in constant battle trying to defend the old // you pumpers are  dilusional calling for a 100,000% rv .. saying its never happened before .. so i showed you yes in percentages .. it has .. with out a lop .. revalued its official exchange rates  by hundreds of thousands  percent over night with mo lop .

 

 i hope you enjoyed all your interuptions to  my view to that situation .. thats what we are here for entertainment ....

 

 just ask yourself .. whats the official exchange rate right now for the demonetized  saddam notes at the cbi .

 

 

 thats how much the official exchange rates were for the swiss dinar  prior to the exchange .

 

 keep that term in mind ...>>> official exchange rate ..

 

 thats how they determined that the kuwait dinar did not rv .. even though the market rates fell to  almost nothing during saddams invasion of kuwait for 6 months  back in the early 1990s ..

 

 no big deal .. but a fact is a fact . ..splitting hairs in the lop forum ... over this new dinar  made  me feel  its my duty to  take that to the lop tank  and watch them try to defend  that  comparing the kuwait dinar to the swiss dinar .. one official rate never changed >>>kuwait

 and  one official rate did change .. >>iraqi  swiss dinar  // so one had to of rvd .. all  ya got to do is find the technicalities  to prove it ..and lay it out .. afte 50 pages  in the lop tank .. finally  they said .. ok yes .. there was no  official rate  before the exchange the swiiis was zero  officiallly and there was during  the exchange ..it was remonetized ,, revalued ,, and exchanged ..

 

with the lopsters ..

[dontlop]

I thought that this thread was about the Kuwaiti dinar...

yes it is .. sometimes people put  relevant things  to compare .. but then  lopsters  call ya out  for having an opinion  . and call you dilusional and things do stray some times .. .. this threads topic was about the kuwait dinar not lopping ..i compared to to the swiss dinar in iraq  since they had opposit    endings .. and thats when the insults came in from rvpleasetoday directed at me .. calling me a liar in other words ..  i put up plenty of links to back what i said ,, he put out  a story that he put out link after link  but i ignored  them .. if you look .. he put zero links  . 15 posts ,, zero links .. mostly just insults .

Edited April 5, 2013 by dontlop

[sandyf]

oh I give up

 

the government did set the rate ....Saddam invaded .... the government fled the country.

 

Saddam flooded the country with his own money replacing the KWD.

 

the KWD was not exchanged in any bank around the world while Saddam took over

 

Saddam was kicked out ..... the government returned & the official rate which they set years before the invasion was reinstated.

 

its that simple.

 

 

this will be my last post on this thread, I cant be bothered with this.

 

Quite right. What ever happened in Kuwait or with anything else has no relevance. At the end of the day there is no historical precedent for what is being suggested will transpire.

[gainesm]

From the Financial Dictionary:

Currency revaluation

A deliberate upward adjustment in the official exchange rate established, or pegged, by government against a specified standard, such as another currency or gold.

 

The Kuwaiti government-in-exile (who never lost international recognition during the invasion by Iraq), did not do this action.  The currency itself was never revalued.  It merely experienced a short-term volatility, during which time there were people who were able to capitalize on it for a profitable outcome.  People are getting wrapped around the semantics vs. the definition of the financial concept. 

 

We are hoping for an actual IQD currency revaluation - one that is a deliberate adjustment by the recognized government of Iraq.  These are not the same financial concepts in the slightest - despite the fact that financial reality of a profitable outcome will be the same.

[RVPleaseToday]

Exactly. While these trips back in history are interesting, they were singular events that are unlikely to be repeated.

[dontlop]

Bjt TERRIL JONES , Associated Press

Sep. 24, 1990 4:42 PM ET

NICOSIA, CYPRUS NICOSIA, Cyprus (AP) _ Iraq, underscoring its control over Kuwait, has declared Kuwait's currency invalid and set a deadline for all who hold it to exchange it for Iraqi money, the government said Monday.

 

Iraq will reimburse those who possess Kuwaiti dinars with Iraqi dinars on a 1-for-1 basis, the government said. Those who hold Kuwaiti dinars have until Oct. 6 to exchange it for Iraqi currency, said the announcement, carried by state Iraqi News Agency.

 

After that date, Kuwaiti dinars will be considered worthless, the Baghdad government said.

 

Iraq has methodically dismantled Kuwaiti institutions following its Aug. 2 invasion and annexation of Kuwait. Iraqi authorities have officially disbanded Kuwait's government, military and national airline, and call Kuwait Iraq's 19th province.

 

The currency measure was taken ''to facilitate transactions throughout Iraq and ending duality in the monetary dealing,'' the government said.

 

Before Iraqi President Saddam Hussein ordered his army into Kuwait, one Iraqi dinar was worth $3.22 and one Kuwaiti dinar traded at $3.45 at official rates.

 

But the Kuwaiti currency was convertible on international markets while the Iraq dinar was not. The Iraqi currency remains inconvertible.

 

The decision was also expected to eliminate the black market for the Kuwaiti dinar. Although the Iraqi dinar's official value remains the same, its value to buy goods or foreign currency on the black market was about one-tenth the official rate. Iraq punishes currency smugglers with death.

 

In the first days of the invasion, the Kuwaiti dinar fell from $3.45 to about one-fifth its value before international currency exchanges suspended trading of the Kuwaiti currency.

 

''No banks will accept to quote or trade either Iraqi or Kuwaiti dinars,'' a Banque Francaise du Commerce Exterieur official said Monday. That would be forbidden under the freeze on Kuwaiti and Iraqi assets adopted by France and the other European Community countries, the Paris-based official said in an interview.

 

He said even if there were no economic embargo, no one would trade the Kuwaiti dinar because there is no longer any central bank to guarantee its value. Anyone with Kuwaiti dinars outside the country would effectively be holding useless paper, the banker said.

 

There are exceptions in extremely limited circumstances. Kuwaitis stranded in London can go to the National Bank of Kuwait or United Bank of Kuwait and get British pounds for their dinars if they have dinar accounts there and can prove that they are in desperate need of funds, according to a financial source in Bahrain.

 

The Banque Misr, or Bank of Egypt, in Cairo has not been instructed to stop accepting the Kuwaiti dinar, an official of the bank's foreign exchange department said. The currency was quoted in Monday's fixtures as usual, though at $2.86.

 

When the crisis erupted, the Egyptian-Saudi Finance Bank allowed Kuwaitis to exchange 500 dinars at the old rate for two days. Any other funds had to be exchanged at the reduced rate.

 

The practice appeared part of the exile aid program run by the Kuwaiti government, itself in exile in Saudi Arabia, the financial source in Bahrain said.

 

Certain local banks may have been given a guarantee by Kuwaiti embassies allowing them to exchange dinars to needy Kuwaiti citizens, the source said.

 

But it would be impossible for the Kuwaiti government-in-exile to honor all dinars, because Iraq could then try to convert the huge stocks of Kuwaiti cash its soldiers plundered during the invasion, the source noted.

 

The fall of Kuwait made instant paupers out of tens of thousands of people with assets in Kuwait or Kuwaiti currency.

 

H. Zahreddin, a wealthy Lebanese businessman doing business in Kuwait, flew home to Lebanon the day before Iraq overran Kuwait to throw a lavish wedding party for his daughter at a plush Beirut hotel.

 

''I went to bed a millionaire and woke up in debt,'' Zahreddin said later. ''The hotel refused to accept my Kuwaiti dinar check to settle the bill.

 

 

http://www.apnewsarchive.com/1990/Kuwait-s-Currency-Declared-Invalid-by-Iraq-With-AM-Gulf-Rdp-Bjt/id-978b923d961916791ee3c34fce20be34

 

 

i guess as long as the ";official rate"  doesnt change it didnt rv .

looks like it fell to around 70 cents during the first days on the international exchange ... about one fifth  of its 3.45 original value ..

 according to the associated press

[PA10]

Being something of a history buff, I always wondered about who profited on the temporary demise of the Kuwaiti Dinar and how they did it. Logically, there would have been a limited supply of cash after the Saddam regime emptied the banks vaults in Kuwait. The remaining physical paper (as is the case with most paper currency) would have been in the hands of individuals in smaller amounts as well as private institutions and Kuwait's trading partners - possibly larger amounts. I agree with the suggestion that that there wouldn't have been enough physical cash available to merit even a remote comparison to the IQD. Thanks for giving my brain some exercise! 

[dontlop]

i remember everyone dumping them . i dont know who besides the saudi .. eygpt   banks .. the trading was shut down after a couple days  because the rates fell to about 70 cents .....then i heard they were selling on streets of iraq for under 10 cents ... who was there to buy them .. who knows ..  george soros ..lol

 

 i heard a  few people say they  were  one that bought some .. how much who knows ..  a million would still be 100 grand . who would be walking around  a war zone with a hundred grand .. buying dinars for 10 cents each / 

 

 i remember it all from the news in those days ... but  i do remember them shutting it down completely too the kuwaiti govt  shut down trade ..  

then they reinstated the rates after iraq was removed  .. and they printed up new dinars ,, and exchanged them

[gainesm]

Being something of a history buff, I always wondered about who profited on the temporary demise of the Kuwaiti Dinar and how they did it. 

 

Same. I've never seen anyone actually talk about this in detail - but I've always been curious not only as to how they did it, but why they thought they'd be able to at the time they bought the currency for such a discounted rate to begin with.