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Internationally Traded Question

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Well I have finally decided to break down and ask the question that has been bugging me for some time now.....

 

I know we all want an RV and certainly the sooner the better BUT,

 

Why does the RV need to happen???  The answer I hear over and over again is so that it can become an

 

internationally traded currency - 

 

Well there are other countries that are internationally traded curriencies with LOW exchange rates like the IQD, so why

 

would the rate have to change for Iraq to be internationally traded???  If all the sanctions were dropped

 

and they got out of Chapter 7,  couldn't they then be internationally traded, at that point, without changing

 

the exchange rate at all???????  Seems to they could just like the other low rate countries....

 

Thanks for your thoughts!

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The Dinar isn't internationally traded (I assume you mean on Forex) because most of Iraq's GDP comes from the sale of oil, which is sold in dollars. Why would anyone want to speculate on their currency? In addition, the country is terribly unstable at this point, walking on the edge of civil war and anarchy. Who would invest in such a currency?

 

You've got to understand that the only reason there is a potential payoff for us is that we paid almost nothing for the Dinar we hold. Once we cash in our Dinar, they become just dinar. There is no big killing to be made on them by other people after that, particularly Forex traders, who make their money off of minute shifts in exchange rates.

 

There is a fundamental misunderstanding among many on Dinar forums that the Dinar has some inherent value that would cause other people to want to buy the dinar we would sell after an RV. That is incorrect. The best they could do after that was make a few pennies on exchange rate differences should the currency ever become tradable on Forex.

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Well I have finally decided to break down and ask the question that has been bugging me for some time now.....

 

I know we all want an RV and certainly the sooner the better BUT,

 

Why does the RV need to happen???  The answer I hear over and over again is so that it can become an

 

internationally traded currency - 

 

Well there are other countries that are internationally traded curriencies with LOW exchange rates like the IQD, so why

 

would the rate have to change for Iraq to be internationally traded???  If all the sanctions were dropped

 

and they got out of Chapter 7,  couldn't they then be internationally traded, at that point, without changing

 

the exchange rate at all???????  Seems to they could just like the other low rate countries....

 

Thanks for your thoughts!

 

The big question is what is meant by the term. The IQD is used to trade outside of Iraq, Citibank having been paying international invoices in IQD since 2006.

International recognition is a different thing altogether,this means IMF article 8, Iraq has never been an Article 8 currency.

 

As far as the RV is concerned,you are right,nothing need happen. The exchange rate of a country is linked to the GDP,so on the surface there is no justification for a huge RV. What everyone is speculating on is the hidden value of the DFI funds.

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So, from what you both are saying, the exchange rate does NOT have to change to be internationally tradable like  other countries with Low exchange rates.

 

Which leads me to wonder then, what IS the reason they have to change the rate at all????  Or isn't there a reason?

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They don't have to change the exchange rate. That's why the Dinar is so speculative. You hear a lot of these "they have to" statements because people want to pretend their highly speculative investment is a sure thing.

Edited by RVPleaseToday
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I there is no concern or need to ever change the rate of the Iraqi Dinar...(Why have'nt they just dumped it and moved on to more important things)....and why does anyone think that there wont be a better value coming to this currency?.....as they have probably spent as much as it cost to print and distribute the stuff, as they have from haggling over the issues of this currency, why do so if worthless?...in other words if the currency is a "Non-Issue"...why has it been treated with more priority than any country in the world treats theirs, especially being so worthless?....Why was it ever allowed to leave Iraqs borders, as well as be sold through most of the largest financial institutions in the world?....And if the country has had oil and infrastructure developments move in the trillions of dollars...unlike the world has ever seen....and one says that they cannot have a valuable currency, or at least eventually....IMO..the reason I say sooner than later that this has to happen, is due to all of these monetary advancements which will continue, thus making it even more probable to have a better rate for your currency...and then while Kuwait, with the most valuable currency in the world, is investing head over heels in Iraq...and in every form imagineable...wealth follows wealth and not poverty...so, with all of this...why would one think that their currency should fail...IMO..I believe the small pips where it has went down a little here and there, is actually to deter specualtion before a rise in this currency...IMO, it would never do the opposite, like start rising right before a big gain or an RV...We will see...

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Well, it's anybody's guess. We are expecting an historically big increase in the exchange rate over an historically short time frame. So nobody really knows by what mechanism  it could happen.  So, your guess is as good as anyones.

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Well I have finally decided to break down and ask the question that has been bugging me for some time now.....

 

I know we all want an RV and certainly the sooner the better BUT,

 

Why does the RV need to happen???  The answer I hear over and over again is so that it can become an

 

internationally traded currency - 

 

Well there are other countries that are internationally traded curriencies with LOW exchange rates like the IQD, so why

 

would the rate have to change for Iraq to be internationally traded???  If all the sanctions were dropped

 

and they got out of Chapter 7,  couldn't they then be internationally traded, at that point, without changing

 

the exchange rate at all???????  Seems to they could just like the other low rate countries....

 

Thanks for your thoughts!

you are correct. they dont have to do anything with the rate. its mumbo jumbo...they have to do anything. theyve been going for years with slight adjustments. i expect to see it continue...until the cbi gets its way with monetary reform

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i dont believe the reason to rv is the reason they have to rv ..

 

but the iraqi dinar is what represents iraq as a country when being involved in world trade ..its a payment system .  being backed by the dolar is the same thing as having a co signer on a laon

 

having a co signer for a loan is stating your credit isnt very good ..

 

a strong credit rating leads people to want to do business with you ..

 

a strong credit rating being represented by a strong currency sends that message  that iraq is a good place do do business ..

 

if you owned a car lot ... and you had  a bunch of shiney new cars for sale . but you had a hobo for a salesman ..how would that look when you show up  to buy a car ..

 

lets see .. you pull in and you see a bum .. making a peanutbutter sandwich  out of an old shopping cart .. with rags for clothes .. . he sees you pull in .. and approachs you and says .. may i help you ?

 

 

 do you tend to think this  must not be a very good car .. they must not be selling very well ,, the salesman cant even buy nice clothes ,, he looks broke .. hes a bum ...

 

now if a nice   clean cut guy ,, a family  guy .. one who has a home .. nice car himself . wearing nice spiffy clothes .. maybe a gold chain around his neck .. approachs you and says  may i help you ?

 

wouldnt ya think .. hmm this guy looks like hes doing pretty good .. he must be selling alot of cars ..something must be right here ... so you get out of your car and look around ..

 

well the dinar is what represents iraq

 

now if iraq  joins the world trade organization a a full member .. and wants to do business .. having a tradable currency that is strong .. people will get out and look ..

 

but if they have a hobo type currency that isnt even globally tradable .. people will look else where for  clients ..and prospects ..

 

there are those who speculate .. that  this country has the assets  to become a strong   country in the future ...those are the ones who get in on the bottom . like us ..

 

 then there are those who promised not to  risk their clients  money by investing in  speculation .. they only want to invest their money in safe places .. ..  the big guys .. the large investment groups who invest billions upon billions .. these people will jump in line  when the rush  to invest starts .. and when they do  each investment backs the other investment .. it becomes a solid place to do business ..because every sector wil have investors ..

 

iraq needs to show the world a solid dinar .. not a hobo dinar

  they cant come out and say we got this strong dinar by selling dinars all over the world by creating   a scam .. and using the money generated by seling dinar , and not paying a premium  on our investment  in iraq ..

 

they should show the world  they tok care of those who believed in iraq and speculated .. not try to throw us under the bus .. thers too many of us ..and the power of the word ..along with the internet   wil either help iraq ..or hurt iraq ..

Edited by dontlop
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i dont believe the reason to rv is the reason they have to rv ..

 

but the iraqi dinar is what represents iraq as a country when being involved in world trade ..its a payment system .  being backed by the dolar is the same thing as having a co signer on a laon

 

having a co signer for a loan is stating your credit isnt very good ..

 

a strong credit rating leads people to want to do business with you ..

 

a strong credit rating being represented by a strong currency sends that message  that iraq is a good place do do business ..

 

if you owned a car lot ... and you had  a bunch of shiney new cars for sale . but you had a hobo for a salesman ..how would that look when you show up  to buy a car ..

 

lets see .. you pull in and you see a bum .. making a peanutbutter sandwich  out of an old shopping cart .. with rags for clothes .. . he sees you pull in .. and approachs you and says .. may i help you ?

 

 

 do you tend to think this  must not be a very good car .. they must not be selling very well ,, the salesman cant even buy nice clothes ,, he looks broke .. hes a bum ...

 

now if a nice   clean cut guy ,, a family  guy .. one who has a home .. nice car himself . wearing nice spiffy clothes .. maybe a gold chain around his neck .. approachs you and says  may i help you ?

 

wouldnt ya think .. hmm this guy looks like hes doing pretty good .. he must be selling alot of cars ..something must be right here ... so you get out of your car and look around ..

 

well the dinar is what represents iraq

 

now if iraq  joins the world trade organization a a full member .. and wants to do business .. having a tradable currency that is strong .. people will get out and look ..

 

but if they have a hobo type currency that isnt even globally tradable .. people will look else where for  clients ..and prospects ..

 

there are those who speculate .. that  this country has the assets  to become a strong   country in the future ...those are the ones who get in on the bottom . like us ..

 

 then there are those who promised not to  risk their clients  money by investing in  speculation .. they only want to invest their money in safe places .. ..  the big guys .. the large investment groups who invest billions upon billions .. these people will jump in line  when the rush  to invest starts .. and when they do  each investment backs the other investment .. it becomes a solid place to do business ..because every sector wil have investors ..

 

iraq needs to show the world a solid dinar .. not a hobo dinar

  they cant come out and say we got this strong dinar by selling dinars all over the world by creating   a scam .. and using the money generated by seling dinar , and not paying a premium  on our investment  in iraq ..

 

they should show the world  they tok care of those who believed in iraq and speculated .. not try to throw us under the bus .. thers too many of us ..and the power of the word ..along with the internet   wil either help iraq ..or hurt iraq ..

Investors are concerned about profits.....not speculating on a currency. they will make billions doing work....they wont sit idle for years...do no business....then one day sayoh...were rich now.

investors are concerned about stability and security. iraqs laws are horrible for businesses. by the time an investor determines whether to invest or not.......the dinar will be the least of their concerns. they can create their contracts in dollar or dinar

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Thank you all so much for your responses.. I have sat here for the last couple years hearing "soon" and after awhile, it has made me wonder and finally ask the biggest question I had on here to 

hear the different opinions...oh and I really have come to dislike that word "soon" !!!

 

Thanks!

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Investors are concerned about profits.....not speculating on a currency. they will make billions doing work....they wont sit idle for years...do no business....then one day sayoh...were rich now.

investors are concerned about stability and security. iraqs laws are horrible for businesses. by the time an investor determines whether to invest or not.......the dinar will be the least of their concerns. they can create their contracts in dollar or dinar

  good luck with that

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Why does the RV need to happen??? 

 

Plain and simple... Iraqis are a proud people who used to have a currency worth a lot and a big tourist trade. Now they can barely eat, no money to buy the necessities of life, no tourism unless you count occupying armies... they WANT to be prosperous again! The rate under Saddam was artificial, but before him they were doing ok. Now they are worth squat and since Saddam is gone, they want to get back where they came from. Can't blame them. They are just finally getting nerve to speak out against the oppression that has plagued their country for decades. Some are still afraid to speak up, but little by little, the people are starting to realize they just night be able to regain their former glory. Some people want that for them. Unfortunately, Maliki isn't one of those.

 

KK

MADD for Heather

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I don't think the value of the Dinar is the deterrent to attracting tourists to Iraq. I think it's those guys hanging out on the corner with shoulder fired missiles that is the problem. Just sayin'.

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Well I have finally decided to break down and ask the question that has been bugging me for some time now.....

 

I know we all want an RV and certainly the sooner the better BUT,

 

Why does the RV need to happen???  The answer I hear over and over again is so that it can become an

 

internationally traded currency - 

 

Well there are other countries that are internationally traded curriencies with LOW exchange rates like the IQD, so why

 

would the rate have to change for Iraq to be internationally traded???  If all the sanctions were dropped

 

and they got out of Chapter 7,  couldn't they then be internationally traded, at that point, without changing

 

the exchange rate at all???????  Seems to they could just like the other low rate countries....

 

Thanks for your thoughts!

The RV does not need to happen. but iraq does want a stronger currency to attract investors. it would be really good for iraq to get out of chapter 7 and the sanctions dropped.

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The RV does not need to happen. but iraq does want a stronger currency to attract investors. it would be really good for iraq to get out of chapter 7 and the sanctions dropped.

 

The GOI is responsible for the outcome and well being of their country. I don't trust the boys in the sand pit. The Iraqi's have a history that involves corruption similar to their neighbors.

 

We will have to wait and see. Go grow a business! It's far more fun than posting about IQD. 

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Plain and simple... Iraqis are a proud people who used to have a currency worth a lot and a big tourist trade. Now they can barely eat, no money to buy the necessities of life, no tourism unless you count occupying armies... they WANT to be prosperous again! The rate under Saddam was artificial, but before him they were doing ok. Now they are worth squat and since Saddam is gone, they want to get back where they came from. Can't blame them. They are just finally getting nerve to speak out against the oppression that has plagued their country for decades. Some are still afraid to speak up, but little by little, the people are starting to realize they just night be able to regain their former glory. Some people want that for them. Unfortunately, Maliki isn't one of those.

 

KK

MADD for Heather

 

I sort of agree with your statement, but I don't think its about pride as much. I think by increasing the value of the dinar, depending on how much or how fast, can help the economy.

The main problem is the amount of poverty within their country. When you have high amounts of poverty, you will also have high amounts of crime as those committing the crimes do not value their life as much as the person who is living wealthy.

 

If raising the value of the currency helps raise the standard of living within the country, the people of Iraq will be more patriotic and the surrounding nations will see that democracy can work and be successful as the people benefit. A steadily appreciating value may also attract investors... Millions of people gaining wealth will appear pretty good to some foregin investors and businesses that want to setup shop and cater to the citizens. As that occurs, more jobs are created even generating more wealth within the country.

 

Problem is, we have issues such as dollarization, money supply expansion, a rate that seems to never change, and political issues.

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"The RV does not need to happen. but iraq does want a stronger currency to attract investors."

 

No, that is the opposite of what Iraq needs to attract investors. Investors want to maximize their profit, which means the lower the value of the Dinar vs the dollar, the more profit investors stand to make. If I were Halliburton, for example, why would I want it to suddenly cost me thousands of times more to build a facility in Iraq than it did yesterday?

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