Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Why I believe it will RV @ $1 to $1


Recommended Posts

When officially introduced at the end of the British mandate (1932), the dinar [consisting of 1,000 fils or 20 dirhams] was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86. Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971. Iraq officially uncoupled the dinar from the pound sterling as a gesture of independence in 1959, but the dinar remained at parity with the pound until the British unit of currency was again devalued in 1967.

One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began. Upon the devaluation of the United States dollar in 1973, the Iraqi dinar appreciated to US$3.39. It remained at this level until the outbreak of the Iran-Iraq War in 1980. In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt. In early 1988, the official dinar-dollar exchange rate was still ID1 to US$3.22; however, with estimates of the nation's inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar's real transaction value, or black market exchange rate, was far lower-- only about half the 1986 official rate.

The Iraqi dinar was worth $US3.20 before the United Nations embargo that followed Iraq's 1990 invasion of Kuwait. By August 2002 it was trading at just below 2000 to the US dollar, and by mid-April 2003 it had slipped to anywhere between 3500 and 4000 against the dollar. In July 2003 one US dollar equaled about 1,500 Iraqi dinars. Nearly all the bank notes issued after the 1991 Gulf War were without watermark or metal line due to technical difficulties, which is why so many forgeries took place.

In April 2003, following the end of major combat operations, the Iraqi economy was in distress because of closure of oil sales, imposition of UN sanctions. At that time, United States officials said that a new currency was needed, to introduce some stability. Without a proper currency in circulation there was a fear of inflation. The US decided to distribute $20 bills to the civil servents to boost the economy. This was not an issue of "dollarizing" the economy, but to get money that had real value into people's hands.

As Brad Setser, former acting director of the US Treasury Office of International Monetary Policy, noted, "A currency that is tightly linked to the dollar would ... make it harder for the government of Iraq to manage its dependence on oil revenues. The dollar revenue from oil sales is highly volatile, so the government would have trouble paying the same dollar salary when oil is at $10 a barrel and when oil is at $30 a barrel. Rather than matching expenses and revenues by paying dollar salaries that vary in line with global oil prices, it is far easier to pay salaries in a local currency and let the value of the local currency fluctuate against the dollar."

By the end of April 2003 the economic life and conditions in Kirkuk city were becoming increasingly difficult due to the severe shortage of fuel, the increase in market prices and the non-payment of salaries to the civil servants in Kirkuk. The produce in the market had become increasingly expensive due to the significant rise in the number of people from Erbil and Sulaymaniyah who traveled to Kirkuk for shopping purposes. These shopping trips by people from the northern governorates were a result of the more attractive prices at which products were available in Kirkuk compared to the north, due to the low value of the 'new' Iraqi Dinar used in Government of Iraq [GOI] areas as against the 'old' Iraqi Dinar in use in the north.

In the long run, Washington wanted a new Iraqi government to pick its own currency, much as Afghanistan adopted a new one after the fall of the Taliban. As of May 2003 the US reportedly estimated that it was unlikely that a new government would be formed in Iraq in less than a year, and it would take at least three months after that to design a new currency. Until then, the Iraqis would have to use the various currencies floating in the market.

In June 2003 the Iraqi central bank once again began printing Dinars, with fallen leader Saddam Hussein's image on them. The 250 dinar denominated banknotes were printed by the Baghdad mint, under the supervision of the manager of the central bank. This was an effort to overcome a severe shortage of Iraqi dinars and to offset fears of counterfeit currency. The new 250-dinar bills -- worth less than US$0.20 each, were issued because of a shortage that caused a liquidity crisis in the country.

The administrator for the Coalition Provisional Authority in Iraq, Paul Bremer, outlined in an address to the Iraqi people 07 July 2003 the key spending priorities for the Iraqi national budget over the coming six months. These included commitments to improve the water, electrical, public health and telecommunications systems.

Bremer announced that the Coalition would print and distribute new banknotes for Iraq. In response to this press announcement in Baghdad, De La Rue confirmed that it was in discussions to assist in the production of banknotes for Iraq. The Company led a consortium of global currency specialists to manufacture the banknotes. De La Rue is the world 's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as travellers cheques and vouchers. Thomas de la Rue began printing British postage stamps in 1855, and obtained the contract for all Indian postal requirements.

Banknote Corporation of America, Inc. (BCA) is the largest high security printer in the United States, with headquarters in New York City and a manufacturing plant in North Carolina. Banknote Corporation specializes in intaglio printing, producing stamps for the United States Postal Service as well as for foreign postal administrations.

American Banknote Corporation (formerly United States Banknote Corporation) is primarily concerned with the engraving and printing of corporate and government securities and other secure documents, including the production of holograms. The American Bank Note Company, the first security printing company in the United States, can trace it origin over 200 years ago to the father of security printing, Paul Revere. The American Bank Note Company traces its beginning back to 1795, with the formal creation of the American Bank Note Company in 1858. On August 8, 2003, a jury found that Morris Weissman, former chairman and CEO of American Banknote, had inflated his company's earnings in 1996 and 1997. Based on the false numbers, the 1998 public offering of the company's subsidiary, American Banknote Holographics, was a success, netting the company $115 million. When the accounting fraud was uncovered in early 1999, the spinoff's shares dropped from about $16 a share to $1.80 a share. The stock was delisted in August 1999. American Bank Note Holographics ("ABNH") is in many ways a new company today, with new management that started in 1999.

Bremer stated that the so-called "print" dinars in circulation in most of Iraq, nor the formal national currency (or "Swiss" dinar) still used in some parts of the Kurdish North were suitable for the new Iraq. "Print dinars" were poor quality, and in practice circulated widely in only two denominations -- the 250 dinar note, and the 10,000 dinar note [and no coins]. This made Saddam dinar notes very inconvenient to use. The "Swiss" dinars, while of higher quality, were so old that they were literally falling apart in people's hands. The former national ("Swiss") dinar notes were used throughout Iraq until the early 1990's, and this national currency still circulated in the Kurdish north. The bills nicknamed "Swiss dinar" either because of their relative stability and strength or because it was made in Europe, depending on the account. The Swiss dinar was trading at about 6.7 to the dollar in early July 2003.

Bremer stated that a new currency had not been designed by the United States as only a sovereign Iraqi government could take that decision. The new currency would not depict Saddam Hussein. The design for the new currency, which was not been released in advance to the public, was taken from the designs of the "Swiss" dinar, though the new notes had different colors and denominations. The new dinars were printed in a full range of denominations: in 50s; 250s; 1,000s; 5,000s; 10,000s; and 25,000s. The new banknotes were much better protected against counterfeiting, they were much more durable and suffer less "wear and tear".

The new currency was made available to the Iraqi people on 15 October 2003. They replaced the existing Iraqi "print" dinars at parity: one new Iraqi dinar was worth the same as one "print" dinar. The new dinar replaced the "Swiss" dinar at the rate of 150 new dinars to one Swiss dinar. These different rates reflected the different prices, expressed in local currency, in different parts of the country.

Currency could be exchanged at branches of the Rafidain and Rasheed banks, and Iraqis had three months in which to make the exchanges. On 18 August 2003 the Central Bank of Iraq advised Iraqis to deposit all their dinars in local banks to facilitate their change into the new currency. The Bank's governor, Faleh Dawood Salman, said the UK firm charged with printing the new Iraqi money intended to ferry the first shipments to the country in a few days. "The process of changing the money has started and I call on all Iraqis to open accounts in both government and private banks and deposit the amounts they are willing to swap," Salman said.

On 01 October 2003 it was disclosed that agents from the Defense Criminal Investigative Service (DCIS) and the 812th Military Police Company assisted by Iraqi police and the Ministry of Finance had broken a counterfeit printing operation in Baghdad and seized counterfeit currency worth 100 billion dinars. DCIS agents and Military Police raided two locations, seized printing presses and arrested Amar Fadil Ramadan Al-Kayse, an Iraqi national who was subsequently released to Iraqi Ministry of Interior officials for prosecutorial action by the Iraqi Ministry of Justice and Courts. The investigation leading to the arrest of Al-Kayse revealed that Al-Kayse was printing and attempting to pass counterfeit 250 Iraqi dinar notes to the Central Bank of Iraq (CBI), which is funded and operated by the Coalition Provisional Authority (CPA). Al-Kayse owned and operated the Sarmad Company for Printing, a local Baghdad printing shop and worked as editor of Nuktat Dhaw ("Spot Light"), a newspaper in Baghdad.

Stephen Cecchetti, Professor of International Economics and Finance at Brandeis University, noted in June 2003 that "Cultural legitimacy is the final and most important issue to confront in designing the new Central Bank of Iraqi. What any of foreigners write or say is irrelevant unless the people of Iraq are involved. Most importantly, we cannot go into Iraq and build a set of institutions that reflect American and Western European values. This will not work. The new Central Bank of Iraqi will belong to the Iraqis and so they have to set it up. While I might think it would be fitting to start printing new Iraqi currency with an image of King Hammurabi on it, I'm not going to use the currency."

The new currency was unveiled during a press conference in the capital of Baghdad, October 4, 2003. The new Iraqi dinar is a sturdy and secure currency, imprinted with traditional Iraqi symbols -- altogether a great improvement over the flimsy bills with Saddam's face. Iraq's new banknotes include pictures of an ancient Babylonian ruler and a 10th century mathematician in place of the face of Saddam Hussein. An ancient Islamic compass, patterned on the an Astrolabe from Baghdad dated 1131 AD, on the new Iraqi 250 dinar banknote replaced the face of Saddam Hussein on the old note. This is the same Arabic Astrolabe that was used on the ½ dinar note of the 1980s issue and the 1000 Dinar note of the 2002 issue.

The original order of 2 billion notes filled more than twenty-five 747 airplanes.

At the time that the new dinar was introduced, the Central Bank of Iraq (CBI) was made independent of the Finance Ministry, which had been under the control of the Baathist Party. The CBI had suffered from a long period of domination by the Baathist regime and isolation from the international community, and needed much assistance to rebuild. The CBI's monetary policy function required special attention. It lacked a modern statute to facilitate monetary stability, a coherent framework for conducting monetary policy aimed at achieving price stability, and corresponding instruments for implementing monetary policy.

The exchange rate of the new dinar appreciated about 25 percent in the months following its introduction in late 2003, while prices were stable and inflation low. The exchange value of the dinar was quite stable, despite further growth in quantity. The earlier strength in the dinar helped hold down prices over the first several months of this year, and it seems quite likely that inflation will end up low this year, especially compared to the double-digit or higher rates that had characterized the Saddam era. This stability provided the basis for much-needed public confidence in the management of its currency.

Coalition Contractors did not have to be in country long to discover that there was no ability to use credit or ATM cards, and finding available bank related services was challenging given the security situation near many work sites. In order to make payments to local suppliers, vendors and sub-contractors, some resorted to carrying luggage bags of USD across borders themselves while others paid fees to international banks for the risk associated with making a physical money movement on their behalf. Nearly all contractors have had a different experience and story to share on how they have wired around the difficulties and challenges posed to them to get the currency they need when they need it, and where they need it.

  • Upvote 2
Link to comment
Share on other sites

This is the problem right here...Iraqs currency DID NOT DEVALUE OVERNIGHT. the dinar was in the crapper WAY before we invaded Iraq due to saddams over printing and spending of reserves. The whole notation of it devaluing due to the invasion is a FORUM FACT.

Completely wrong

 

​ According to this, no I am not. That didn't work so I'll just re-post the link.

 

 http://www.unjspf.org/UNJSPF_Web/page.jsp?page=FullExchangeRts

Link to comment
Share on other sites

Yes you are wrong and you just proved it by posting those rates. Look at the rate in June of 1997......I believe we invaded Iraq in 2003. I was there a year later. So no it did not devalue due to Iraq war.

according to the united nations exchange rates in april and may of 1997 was the big  change in exchange rates in iraq  http://www.unjspf.org/UNJSPF_Web/page.jsp?page=FullExchangeRts

 

it changed from .031 .. to 1200

Exactly......

  • Upvote 1
Link to comment
Share on other sites

This is the problem right here...Iraqs currency DID NOT DEVALUE OVERNIGHT. the dinar was in the crapper WAY before we invaded Iraq due to saddams over printing and spending of reserves. The whole notation of it devaluing due to the invasion is a FORUM FACT.

Completely wrong

 

I think he was talking or maybe referencing market value. I.e., how the people accepted the value in the domestic market.

 

  • Upvote 1
Link to comment
Share on other sites

Yes you are wrong and you just proved it by posting those rates. Look at the rate in June of 1997......I believe we invaded Iraq in 2003. I was there a year later. So no it did not devalue due to Iraq war.

 

Ok, got ya. It's value was apparently .33 cents I'd take that right now. 

 

When you went to Iraq in 2004(and thank you for doing so) it then became a 

 

worthless and useless currency. Then we ordered the NIQD and gave it a 4000 

 

to one value. In economic terms those are outrages moves for a currency. 

  • Upvote 1
Link to comment
Share on other sites

I think he was talking or maybe referencing market value. I.e., how the people accepted the value in the domestic market.

 

I understand what you mean but just because saddam says what it's worth doesn't mean squat to people that are exchanging dinar outside of Iraq. You would get the OFFICIAL exchange rate outside of country.

The fact is though that many dinar holders have a belief that the dinar was devalued due to the invasion and that gives them justification to their claim that it can jump back up overnight which is completely wrong.

  • Upvote 1
Link to comment
Share on other sites

Yes you are wrong and you just proved it by posting those rates. Look at the rate in June of 1997......I believe we invaded Iraq in 2003. I was there a year later. So no it did not devalue due to Iraq war.

Exactly......

I believe what he did PROVE was a dramatic drop in VALUE overnight

Now the definition of OVERNIGHT maybe fuzzy as we were only looking at numbers posted from back to back months.

 

The Value went from

$3.22 to

$0.00083

  • Upvote 2
Link to comment
Share on other sites

There is reason to believe that at the same time the 4th Group was making imitations of the Iraqi currency, the CIA was forging their currency. Prior to the 1991 Gulf War, Iraq’s currency was prepared abroad, by Thomas de la Rue of England and, presumably another country. According to Triumph without Victory, U.S. News and World Report, 1992, page 190, in an operation called "Blink, Saddam, Blink," Washington persuaded the two countries that had produced the Iraqi currency to:

print counterfeit Iraqi currency, which was then distributed to Kurdish leaders, who flooded the market with worthless bills.

I questioned the editor in 1992 about the alleged forgery campaign and he answered:

Unfortunately, like so many pieces of information my colleagues and I came across in the course of reporting on the Gulf War, we were unable to develop more than the barest outlines of an operation codenamed "Blink Saddam Blink." We were told that the operation did involve the infiltration of counterfeit Iraqi currency into the country, but we were singularly unsuccessful in learning more about it.

In Newsweek, June 8, 1992, Ray Wilkinson in Amman, Jordan adds:

Can a blizzard of banknotes succeed where Desert Storm failed? Some of those still working to topple Saddam Hussein evidently think it’s worth a try. In a campaign Iraq denounces as a CIA plot called "Laundry," counterfeit Iraqi and U.S. dollars are flooding into the country across all of its borders. The Iraqis say bales of fake dollar bills have been dumped from American helicopters; U.S. intelligent sources say it’s an all-Arab operation led by the Saudis. Whoever is at the helm clearly knows his business. Many of the fake dinars can scarcely be distinguished from the poor-quality, blue and orange bills Iraq itself is printing at a furious rate to pay for reconstruction and military raises.

Coin World of 18 May 1992 added "CIA mum on counterfeit Iraqi currency." Richard Giedroyc went on to say in part:

Officials of the U.S. Central Intelligence Agency are refusing comment on media reports that the agency has placed counterfeit Iraqi money into circulation in Iraq in an attempt to disrupt the economy and government. The undercover operation in Iraq is called "Operation Laundry." CIA media spokesman Mark Mansfield told Coin World "It is not our policy to comment on such allegations."

The highly respected London newspaper The Sunday Telegraph says that the CIA is quietly flooding Iraq with counterfeit money, especially, it is believed, 5, 25 and 50 dinar notes in an attempt to destabilize Saddam Hussein's government by making the money worth next to nothing.

Link to comment
Share on other sites

Ok, got ya. It's value was apparently .33 cents I'd take that right now.

When you went to Iraq in 2004(and thank you for doing so) it then became a

worthless and useless currency. Then we ordered the NIQD and gave it a 4000

to one value. In economic terms those are outrages moves for a currency.

Yes, I got the dinar for CHEAP and already made decent money on it. I wish the rate would still climb up lol. But I think with what they have in reserves and m2 the value is exactly where it needs to be. Their currency is backed 100% by reserves so they really do have a very strong and stable currency right now. Edited by Flatbush Zombies
Link to comment
Share on other sites

I understand what you mean but just because saddam says what it's worth doesn't mean squat to people that are exchanging dinar outside of Iraq. You would get the OFFICIAL exchange rate outside of country.

The fact is though that many dinar holders have a belief that the dinar was devalued due to the invasion and that gives them justification to their claim that it can jump back up overnight which is completely wrong.

 

 

The Value went from

$3.22 to

$0.00083

 

Exactly,  that kind of move at this time would make everyone here extremely happy. 

 

I am not trying to be argumentative flatbush but when we changed the currency that was 

 

a radical change in value.  

Link to comment
Share on other sites

This is from the article I posted above.

In early 1988, the official dinar-dollar exchange rate was still ID1 to US$3.22; however, with estimates of the nation's inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar's real transaction value, or black market exchange rate, was far lower-- only about half the 1986 official rate.

Read more: http://dinarvets.com/forums/index.php?/topic/142702-why-i-believe-it-will-rv-1-to-1/page-2#ixzz2MP1oL0Ta

By the way, back then they had much less dinar in circulation

Link to comment
Share on other sites

Yes, I got the dinar for CHEAP and already made decent money on it. I wish the rate would still climb up lol. But I think with what they have in reserves and m2 the value is exactly where it needs to be. Their currency is backed 100% by reserves so they really do have a very strong and stable currency right now.

 

 

That is correct. But the CBI has repeatedly stated they wish to 

 

make the resources of the country as part of the reserves backing.

 

If they do that we could see another jump in the value of the dinar.

Also according to dontlop's news article we have been manipulating the

 

dinar for a long time now. Is it really that difficult to think were still doing it?

 

As a news report just came out a high up banker from China says, " let the

 

currency wars begin". Problem is we've been fighting one for some time now.

 

Or so it appears.  

Link to comment
Share on other sites

IMO, the only way for Iraq to make massive gains in their currency is to RD and reduce the trillions in circulation to billions. Until that we may see a little pip here and there but nothing big like it would if their wasn't so much dinar out in circulation right now.

 

​Again, not trying to be argumentative here, but then why own it if that 

 

is what you truly believe? 

Link to comment
Share on other sites

i think we all understand the dinar ";right now"; is backed by their reserves ..which the reserves are backed by nothing . the only thing that backs the reserves is each countrys ability to pay their bills .. its their credit ratings that keep the reserve currency values  where they are ....if the debt to gdp  goes sour .. so will their currency....

 

 we know iraqi dinars are backed  and we are hoping that changes .as their abillity  to make payments improve .. and they have improved .. what  the reserves are is .. a co signer ... like when someone gets a loan with no credit .. a co signer is required ... eventually we are hoping iraq wont need a co signer any more for their currency and will change their payment system to what ever they choose it to be .. and looking back  at history .. iraq doesnt like a low exchange rate ....

 

just because iraq currency is backed right now  by foriegn reserves doesnt maen it always has to be ..

 

1n the mid 1980s the iraqi reserves were depleted .. but the exchange rate  still were over 3 dollars ..  it doesnt have to be backed up by reserves .. iraq is just re-establishing its credit line  with a co signer .. the dollar and the euro ..

 

there is no law that the dinar has to be backed by the dollar ..never was .. never will be .... it doesnt have to be backed by any thing more than the dollar does . itsthe same monetary fiat laws that apply to every currency ..

  • Upvote 1
Link to comment
Share on other sites

​Again, not trying to be argumentative here, but then why own it if that 

 

is what you truly believe? 

As I've said before, I've made money already but after researching everything and knowing how simple economics work its impossible for them to "RV" with what they have right now in circulation. I'll hold on and hopefully they'll make more rate adjustments but it's impossible for a jump of anything over 100% in value. Iraq will RD but they are waiting for stability and that my friend will take A LONG TIME lol so I'll stay in to make a little more money.

  • Upvote 1
Link to comment
Share on other sites

i think we all understand the dinar ";right now"; is backed by their reserves ..which the reserves are backed by nothing . the only thing that backs the reserves is each countrys ability to pay their bills .. its their credit ratings that keep the reserve currency values  where they are ....if the debt to gdp  goes sour .. so will their currency....

 

 we know iraqi dinars are backed  and we are hoping that changes .as their abillity  to make payments improve .. and they have improved .. what  the reserves are is .. a co signer ... like when someone gets a loan with no credit .. a co signer is required ... eventually we are hoping iraq wont need a co signer any more for their currency and will change their payment system to what ever they choose it to be .. and looking back  at history .. iraq doesnt like a low exchange rate ....

 

just because iraq currency is backed right now  by foriegn reserves doesnt maen it always has to be ..

 

1n the mid 1980s the iraqi reserves were depleted .. but the exchange rate  still were over 3 dollars ..  it doesnt have to be backed up by reserves .. iraq is just re-establishing its credit line  with a co signer .. the dollar and the euro ..

 

there is no law that the dinar has to be backed by the dollar ..never was .. never will be .... it doesnt have to be backed by any thing more than the dollar does . itsthe same monetary fiat laws that apply to every currency ..

 

And that is why I said the dollar will lose value. We are on the threshold 

 

of not being able to pay our bills.  

As I've said before, I've made money already but after researching everything and knowing how simple economics work its impossible for them to "RV" with what they have right now in circulation. I'll hold on and hopefully they'll make more rate adjustments but it's impossible for a jump of anything over 100% in value. Iraq will RD but they are waiting for stability and that my friend will take A LONG TIME lol so I'll stay in to make a little more money.

Fair enough, For me and so many others here and around the world

 

we pray you're wrong. Time will tell.

Link to comment
Share on other sites

i think we all understand the dinar ";right now"; is backed by their reserves ..which the reserves are backed by nothing . the only thing that backs the reserves is each countrys ability to pay their bills .. its their credit ratings that keep the reserve currency values  where they are ....if the debt to gdp  goes sour .. so will their currency....

 

 we know iraqi dinars are backed  and we are hoping that changes .as their abillity  to make payments improve .. and they have improved .. what  the reserves are is .. a co signer ... like when someone gets a loan with no credit .. a co signer is required ... eventually we are hoping iraq wont need a co signer any more for their currency and will change their payment system to what ever they choose it to be .. and looking back  at history .. iraq doesnt like a low exchange rate ....

 

just because iraq currency is backed right now  by foriegn reserves doesnt maen it always has to be ..

 

1n the mid 1980s the iraqi reserves were depleted .. but the exchange rate  still were over 3 dollars ..  it doesnt have to be backed up by reserves .. iraq is just re-establishing its credit line  with a co signer .. the dollar and the euro ..

 

there is no law that the dinar has to be backed by the dollar ..never was .. never will be .... it doesnt have to be backed by any thing more than the dollar does . itsthe same monetary fiat laws that apply to every currency ..

They are pegged to the dollar for their benefit....you don't want them on a free float right now...also yes saddam depleted their reserves and thats part of the reason why it devalued. Again what saddam was saying it was worth is not what everyone else took as the rate. Let's hope for the best but economics will tell you that Iraq has WAY TOO MICH DINAR OUT THERE. Once they address that issue and get their economy going and a stable government then we will see progress. I'm not optimistic about their government because middle eastern countries IMO cannot have a democracy due to religious tensions. Look at our horrible congress and we are supposed to be leaders of the WORLD.

  • Upvote 1
Link to comment
Share on other sites

Not exactly sure what your referring to. While it wasn't internationally recognized 

 

under Saddam it was worth $3.22. That is what any Iraqi who had money could buy

 

with one dinar. Then one day we come in and the next day that currency is suddenly

 

worthless. And please don't try and say that was a different currency. How  do you

 

think we can create the NIQD and give it any value at all?  I think at the first the NIQD ,

 

which is what we all now hold, was GIVEN the value of 4000 to one. Hows that work? You

 

take a piece of paper put some pretty colors on it and give it any kind of value? And before 

 

Saddam the IQD held a much much higher value, that has been proven several times over

 

here. What I am saying is simply that, IMO, what gives any countries currency value is

 

partially based on the worth of that country. And again, IMO, they intend to base the value

 

of the NIQD completely on the resources of the country.    

 

Sorry my friend but I have to disagree with you on this one. I don't remember 

 

the exact value before Saddam, something like $2, But as I stated in the last 

 

post, under Saddam it was $3.22.  

http://www.oanda.com/currency/graph

 

Check out that link.....the dinar was in the crapper long before we invaded....thats a graph showing the 7 years prior to the invasion.....it was dropping even before then.....

  • Upvote 2
  • Downvote 1
Link to comment
Share on other sites

as long as iraq isnt using the dinar within the world community .. no one cares what they say is value is within their own country ..

if it goes global , iraq is responsible for exchanging that dinar for goods and services when the  dinars are presented to them  for exchange .. they cant ask iraq for something they dont have when exchanging them ..  they can only ask for the goods or services iraq offers . mainly oil ..you can sya  things about they way things are right now today ..  and pretend nothing will ever change in iraqi monetary policies .. and present your case  as to how this that and the other will never happen based on the monetary policies that are inplace right now . and pretend the policies will never change ..who cares go ahead and pretend iraqs policies are in stone  .. if thats what floats your boat .. but most of the dinar speculators are looking for change in policy .. or we would of never bought  dinars   if we were speculating nothing will change ..

 

 

iraq can  come out with a 100 to one exchange rate and make the dinar worth 100 dollars . who care what they do in their country .. but if they spend those dinars in another country .. iraq has to pay honor those dinars out side of iraq .. in exchange for goods and services that iraq offers ..,, china cant come to america and demand 2 trillion dollars worth of uranim .. we dont sell uranuim .. but they could get uranium in australia  .. or diamonds .. we dont have huge diamond mines .. they could spend those dollars in africa  on diamonds ..



They are pegged to the dollar for their benefit....you don't want them on a free float right now...also yes saddam depleted their reserves and thats part of the reason why it devalued. Again what saddam was saying it was worth is not what everyone else took as the rate. Let's hope for the best but economics will tell you that Iraq has WAY TOO MICH DINAR OUT THERE. Once they address that issue and get their economy going and a stable government then we will see progress. I'm not optimistic about their government because middle eastern countries IMO cannot have a democracy due to religious tensions. Look at our horrible congress and we are supposed to be leaders of the WORLD.

yes its for their benifit ,, just like when someone asks for a co signer for a loan .. its for there benifit.. if they sel the oil  by the dollar it only makes sense to peg it once the value is set . to the dollar.. every currency is peged to the dollar .. theres only one monetary unit in the monetary  system .. it is the dollar . so its pegged against the dollar.. they have to maintain that rate through auctions . it doesnt just stay there

Edited by dontlop
Link to comment
Share on other sites

i think we all understand the dinar ";right now"; is backed by their reserves ..which the reserves are backed by nothing . the only thing that backs the reserves is each countrys ability to pay their bills .. its their credit ratings that keep the reserve currency values  where they are ....if the debt to gdp  goes sour .. so will their currency....

 

 we know iraqi dinars are backed  and we are hoping that changes .as their abillity  to make payments improve .. and they have improved .. what  the reserves are is .. a co signer ... like when someone gets a loan with no credit .. a co signer is required ... eventually we are hoping iraq wont need a co signer any more for their currency and will change their payment system to what ever they choose it to be .. and looking back  at history .. iraq doesnt like a low exchange rate ....

 

just because iraq currency is backed right now  by foriegn reserves doesnt maen it always has to be ..

 

1n the mid 1980s the iraqi reserves were depleted .. but the exchange rate  still were over 3 dollars ..  it doesnt have to be backed up by reserves .. iraq is just re-establishing its credit line  with a co signer .. the dollar and the euro ..

 

there is no law that the dinar has to be backed by the dollar ..never was .. never will be .... it doesnt have to be backed by any thing more than the dollar does . itsthe same monetary fiat laws that apply to every currency ..

There is a major difference in pegged currencies and market driven or free floating currencies....

 

Pegged currencies do rely heavily on its reserves.....the USD does not because its not a pegged currency.....

 

Unless the CBI changes its monetary policy, they can only go as far as their reserves will take them.....

  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.