$0.10 RV not possible!

[iqdheadlines]

I personally think that the Iraqi dinar will be revalued to no less than one USD dollar.

 

If the Iraqi dinar was revalued to just only $0.10, then thousands of people would exchange their old Iraqi dinar for USD then they would purchase the new Iraqi dinar at $0.10 and wait for it to rise to a much higher value against the USD dollar.

 

If this happens, then this will cause the supply of new Iraqi dinar to dry up.

 

So logically, the new rate has to be a higher rate rather than a lower rate to avoid the new Iraqi dinar being dried up.

Edited July 7, 2013 by iqdheadlines

[sandfly]

THANKS

[ambush_gorilla]

I personally think that the Iraqi dinar will be revalued to no less than one USD dollar.

 

If the Iraqi dinar was revalued to just only $0.10, then thousands of people would exchange their old Iraqi dinar for USD then they would purchase the new Iraqi dinar at $0.10 and wait for it to rise to a much higher value against the USD dollar.

 

If this happens, then this will cause the supply of new Iraqi dinar to dry up.

 

So logically, the new rate has to be a higher rate rather than a lower rate to avoid the new Iraqi dinar being dried up.

Agreed

[doctor robbins]

I personally think that the Iraqi dinar will be revalued to no less than one USD dollar.

 

If the Iraqi dinar was revalued to just only $0.10, then thousands of people would exchange their old Iraqi dinar for USD then they would purchase the new Iraqi dinar at $0.10 and wait for it to rise to a much higher value against the USD dollar.

 

If this happens, then this will cause the supply of new Iraqi dinar to dry up.

 

So logically, the new rate has to be a higher rate rather than a lower rate to avoid the new Iraqi dinar being dried up.

 

I agree that $.10 isn't possible.  With 33 trillion in circulation that would make their base equal to $3.3 trillion and they only have $70 billion or so in their reserves and a GDP of around $150 billion. 

[calkid11]

I agree with you on this. Good post... GO RV

[sportfisher]

I personally think that the Iraqi dinar will be revalued to no less than one USD dollar.

 

If the Iraqi dinar was revalued to just only $0.10, then thousands of people would exchange their old Iraqi dinar for USD then they would purchase the new Iraqi dinar at $0.10 and wait for it to rise to a much higher value against the USD dollar.

 

If this happens, then this will cause the supply of new Iraqi dinar to dry up.

 

So logically, the new rate has to be a higher rate rather than a lower rate to avoid the new Iraqi dinar being dried up.

when you say "new IQD", are you refering to lower denoms or a replacement currency?,,,,,,,,,,,,,,,,,,,,,,,we have the new IQD now.

[8th ID]

I agree as well. The only way to de-dollarize is to come out at least 1 to 1. They have repeatedly said they wanted it on par with the dollar.

[strolld2]

I agree with all the posts stated above!

[AJC]

I love this thinking. Always thought it would come out very low. After reading these posts, it make sense to come out at least 1:1 of course, the higher the better for all of us.

[EagleEye]

I agree and also like the statement made today by Turki of the CBI

 

 

 

 

"Iraq's economic future will be a surprise to friends."

 

"Iraq is not a poor resources and we are trying to shorten the time."

 

 

Read more: http://dinarvets.com/forums/index.php?/topic/153640-turki-you-must-open-the-iraqi-market-after-the-departure-of-chapter-vii/#ixzz2YMlS9wF5

[arewethereyet777]

I agree with all the posts stated above!

Ditto  

[dontlop]

if iraq had a 300 bilion gdp ..and 80% of that come from exporting oil ..

 

and you gave the iraqis 30 trillion dollars worth of dinar , and made the dinar internationally acceptable ..

 

and the iraqis went on a spending spree . buying cars jewlery .. furniture .. clothing .. farm tractors .. boats .. you name it buy buy    buy ..

 

and the iraqis spent 500 billion a year over seas on products .to save the global economy ..

 

but they were only producing 300 bilion a year in gdp .

 

they export 240 billion in oil .. and 10 billion in other goods and services

 

that would give iraq a trade deficit of 250 billion a year if they import 500 billion and produce 250 billion

 

iraq could last for 120 years til they were completely broke

 

so they would have to increase oil production  and goods and services exports to meet the amount  they import ..they have to have a trade balance .

 

right now the infrastructure in iraq  is to small to support a spending spree .. so they would have to import most of their goods to  spend  500 billion a year

 

so when they get their money its going to be frustrating to have all that money and nowhere to spend it in iraq ..

 

they need to get their ports completed  and train the iraqis skils to manufacture things .. and if they are going to manufacture things that increases the demand for raw materials  which increases your imports  for steel ..  wood .. fabric .. rubber .. what ever ..

 

any way 30 milion people spending 10,000 a year each they would need 300 billion a year.. plus the govt spending 150 billion a year ..roughly ..

 

id say a gradual increase is the way to go ., maybe 500 billion  for a few years ,, then 750  billion .. a few years .. then a trillion a few years ..

 

the state of california does prety good with a trillion a year gdp .... thats about what canada spends .... so a little math can show you what to expect ..

 

i dont see iraqis with 33 trillion dollars

 

thats is rough .. real rough ..theres alot of reasons why you dont give a child 35 million dollars to go to a carnival .. the first would be .. theres no reason to have 35 milion dollars at a carnival ..

 

macro economics is very tecnical . i have left out alot . but you can see why iraq has no use for 33 trillion dollars

 

3 trillion maybe with alot of military spending involved .3 trillion would be a 10 cent rv

Edited July 7, 2013 by dontlop

[Tripphood]

I love this thinking. Always thought it would come out very low. After reading these posts, it make sense to come out at least 1:1 of course, the higher the better for all of us.

I like your thnking too. We are neighbors. Haven't seen that many from Tampa Bay Area on here. Welcome.

[lotsaleftpedal]

If Milton Freidman was still around....

[Bunk]

I agree and also like the statement made today by Turki of the CBI

 

 

 

 

"Iraq's economic future will be a surprise to friends."

 

"Iraq is not a poor resources and we are trying to shorten the time."

 

 

Read more: http://dinarvets.com/forums/index.php?/topic/153640-turki-you-must-open-the-iraqi-market-after-the-departure-of-chapter-vii/#ixzz2YMlS9wF5

 

 

Hopefully We here are Friends!!!

[umbertino]

If Milton Freidman was still around....

What would he say? Please share. Thanks in advance.

[saradise]

Also, if they don't go at least 1:1, the Iraqis will continue to use dollars and not the dinar. If they want them to use the dinar, then they have to at least match it to the same value of the dollar.

[MillieChatham]

Above all lets us remember that the RV is for, and should be, the benefit of the Iraqi people, who deserve it after all these years.

Investors come in second, asi it should be.

[sandstorm]

I personally think that the Iraqi dinar will be revalued to no less than one USD dollar.

 

If the Iraqi dinar was revalued to just only $0.10, then thousands of people would exchange their old Iraqi dinar for USD then they would purchase the new Iraqi dinar at $0.10 and wait for it to rise to a much higher value against the USD dollar.

 

If this happens, then this will cause the supply of new Iraqi dinar to dry up.

 

So logically, the new rate has to be a higher rate rather than a lower rate to avoid the new Iraqi dinar being dried up.

i disagree. there is over 70 trillion in m2. we need a drying up effect. iraq couldnt rv to over 70 trillion in liabilities...imo

[Muleslayer]

Call me greedy.

I want some too!

[sandstorm]

Also, if they don't go at least 1:1, the Iraqis will continue to use dollars and not the dinar. If they want them to use the dinar, then they have to at least match it to the same value of the dollar.

Passing a few laws correct those problems. making iraqis pay only in dinars, corrects that.

Edited July 7, 2013 by sandstorm

[EMPHATIK]

An RV to .10 sounds awesome.  But an RV to $1 is even better. If there is no trade in period than just hold the dinars and watch it rise slowly in value.  If there is a

 

trade in period, we should by more and make more money too!!!  In my personal opinion I believe that the RV will rise to at least $1 or higher.  I cant see why they

 

would raise it to .10 and let other people outside their country come in and invest in Dinars, or the ISX and make money instantly.  Just my opinion, don't bash me please

 

 

 

Go Super RV! ! !

[ezrapound]

Just my opinion of course...and one my wife allows me to have! I think what they need to do is hit a happy medium. They want it high enough so that it does indeed help them out and make everyone a lot of money, but not so high as to discourage investors in it. 10 cents really won't help them that much when you think about it. I have always been of the opinion and am sticking to my guns that it will be 1 to 1 or better from the git go!.

[chess]

Above all lets us remember that the RV is for, and should be, the benefit of the Iraqi people, who deserve it after all these years.

Investors come in second, asi it should be.

.....true, then they may take somewhat smaller wheelbarrows to the bakery!

[Argyll]

remember that China is in the process of purchasing a lot of Iraqi's oil at the moment! That isn't necessarily the greatest thing for the U.S., but not necessarily a bad thing at all for the price of the re-value of the dinar!