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Will the Iraqi dinar increase in value?


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We get many enquiries at Iraq Business News relating to the future of the Iraqi dinar (IQD), for example:

  • Will the Iraqi dinar increase in value?
  • Will the currency be re-denominated, dropping the ‘three zeros’?
  • Is it wise to buy Iraqi dinar?

Firstly, Iraq Business News is not in a position to give investment advice. Our mission is to provide our readers with the highest quality information on the business and economy of Iraq.

As the value of the Iraqi dinar affects trade, we will continue to report on any possible re-valuations and/or redenominations as soon as information is available.

We hope that this information will be useful to the key decision-makers in Iraqi business, and to all who are interested in the development of the country; gamblers and people involved in get-rich-quick schemes/scams are not our target readership.

It’s clear from the correspondence we receive that some people, who like to think of themselves as ‘investors’, genuinely believe that at the stroke of a pen they will make a 1,000-fold return on their purchase of dinars.

Those people might like to consider some questions before putting any further funds at risk

Those people might like to consider some questions before putting any further funds at risk:

  1. If the dinar becomes 1,000 times more valuable, it will become 1,000 times more expensive to do business in Iraq. Do you think this would be sustainable?
  2. Would you buy dinars at 1,000 times the current price? If not, why do you expect someone to buy your dinars at 1,000 times what you paid for them?
  3. If there was any possibility of a 1,000x revaluation, would dinar sellers be so keen to sell their stock to you? Is it possible that they think their mark-up is the best profit they can make?
  4. Many investment professionals promote their ideas and “talk their book”. Why has no accomplished investor promoted the idea of massive gains from the dinar?
  5. The 1,000x rumour has been circulating for many years, but the forex markets have not reacted by driving up dinar prices significantly. On what basis do you believe you’re more “in the know” than the market?
  6. Does scepticism of massive gains from the dinar make you angry? If so, and if you think you’re going to make 1,000 times your money, what is the reason for your anger?
  7. Do you seek information that confirms your opinion, and dismiss information that challenges your opinion?

 

 

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I for one hope it does

I'm not sure by how much if it does but if the gurus are right I'm not sure if ill be grinning or have a serious look on my face when I cash in

Because no one knows what's going to happen

I hope the Iraqis will be suprised with a huge influx of wealth

Double would be huge

A thousand fold I will definatly be grinning

I won't be able to hold that in

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Wait a second!  Wasn't it "de-valued" at a "flip-of-the-switch"?  Wasn't it devalued after the Saddam era ended so that Iraq would not be able to purchase ANY weaponry?  So, if it was a programmed lowering of the value literally overnight, why does it not stand to reason that it could be increased overnight? And besides that, hasn't it already gone up in value from the original programmed rate?  So many questions, so few who really know the answers.  A few things we do know: 1) Iraq can not do anything relative to the world's economy until their money increases in value; 2) The current rate is artificial; 3) Iraq sits on soooo much oil that it boggles the imagination; 4) The political landscape and continued sectarian violence will preclude/prevent many good things happening for Iraq; 5) Trying to figure reason and logic into the way Arabs think and live is ludicrous and naive.  6) The HCL being enacted is vitally important; 7) Gooroos know absolutely nothing of which they pontificate about.  Just sayin'

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Iraq Business News can darn well ask Parliament some of these questions, as well as the "gurus" spouting the crap we're reading!

 

Why don't you ask THEM?!

 

We're just discussing, and I don't think our anger or the reason for it should be part of your story, Mr. "Journalist," go to the SOURCE and report, and get back to us.

 

KTHNXBAI

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Wait a second!  Wasn't it "de-valued" at a "flip-of-the-switch"?  Wasn't it devalued after the Saddam era ended so that Iraq would not be able to purchase ANY weaponry?  So, if it was a programmed lowering of the value literally overnight, why does it not stand to reason that it could be increased overnight? And besides that, hasn't it already gone up in value from the original programmed rate?  So many questions, so few who really know the answers.  A few things we do know: 1) Iraq can not do anything relative to the world's economy until their money increases in value; 2) The current rate is artificial; 3) Iraq sits on soooo much oil that it boggles the imagination; 4) The political landscape and continued sectarian violence will preclude/prevent many good things happening for Iraq; 5) Trying to figure reason and logic into the way Arabs think and live is ludicrous and naive.  6) The HCL being enacted is vitally important; 7) Gooroos know absolutely nothing of which they pontificate about.  Just sayin'

No, it wasnt devalued at the flip of a switch unless you wanna call it a "over a decade switch". But seriously, it took probly almost 15 years for the dinar to hit its lowest point. Check out the history of the dinar exchange rate. And Im not 100%, but Im pretty sure it even started falling before the Gulf war.

 

Yes, the dinar has gone up in value, but it wasnt from its original programmed rate. Its only had one and it started at 1170 before they moved it up to 1166. 

 

Iraq can do many things with the value its at now. High value doesnt mean strongest nation in the global economy. Countries that are developing like to keep a lower exchange rate and a STABLE one at that to promote economic growth. 

 

The current rate really isnt artificial. You could MAYBE make that argument only recently because they can cover the physical amount 2.5 times its current amount but thats only recently.

 

Oil isnt the answer for everything. It will definitely help, but does not equal a high valued currency. Just pointing somethings out that are verifiable....no disrespect

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Just rebuilding labor costs locally with dinars only problem is they don't pay much for labor but then no one has money to spend to unleash the private sector

So how do ya unleash the private sector

More money

Decree a rv already

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that's an old article but for the fun of it lets see...

 

  1. If the dinar becomes 1,000 times more valuable, it will become 1,000 times more expensive to do business in Iraq. Do you think this would be sustainable? it used to be, why couldn't it be again? also it is 1000x more expensive to do business in other countries if what you are basing the cost to is the currency valuation.
  2. Would you buy dinars at 1,000 times the current price? If not, why do you expect someone to buy your dinars at 1,000 times what you paid for them? this is a stupid question.... why do people buy yellow rocks out of the ground for $1k's per ounce? because they have value assigned by an economy of trade. If the current market decided IQD was worth its weight in gold yes everyone would pay more for it today no matter what it cost yesterday.
  3. If there was any possibility of a 1,000x revaluation, would dinar sellers be so keen to sell their stock to you? Is it possible that they think their mark-up is the best profit they can make? Yes. people would still sell it, this is what people do to make money, they sell things. Welcome to planet earth. Only if there were a 100% guarantee on an increase tomorrow that the dealer knew about would they stop selling, and that would fall into insider trading.
  4. Many investment professionals promote their ideas and “talk their book”. Why has no accomplished investor promoted the idea of massive gains from the dinar? yeah because books written of future investments are really really credible and always correct, that's what we should be looking for to verify this whole thing.
  5. The 1,000x rumour has been circulating for many years, but the forex markets have not reacted by driving up dinar prices significantly. On what basis do you believe you’re more “in the know” than the market? the market doesn't "know" it reacts. there is also the problem of legal trade ability there are common fluctuations in the IQD and if it were legally trade able you could be making money on forex with it, but its not
  6. Does scepticism of massive gains from the dinar make you angry? If so, and if you think you’re going to make 1,000 times your money, what is the reason for your anger? no
  7. Do you seek information that confirms your opinion, and dismiss information that challenges your opinion? sure, I just go to discussion forums to have my opinion confirmed.... thanks for the hostility in the last 2 questions.
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1. The majority of business that is done there now is paid for in dollars so for the dinar to be raised to that level is not spending 1000 times more.

 

2. They not not buying they exchanging them.

 

3. The dealers have made tons of money on the spread and will still have enough to be wealthy when it does RV.

 

4.Speculation not hard core investment value.

 

5.It's all a game we are just the pawns.

 

6.No.

 

7.Information got me into this and thats why I have an opinion.

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Just rebuilding labor costs locally with dinars only problem is they don't pay much for labor but then no one has money to spend to unleash the private sector

So how do ya unleash the private sector

More money

Decree a rv already

Keep a stable exchange rate....

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 Keep the dinar was worth 3.22 to 1 dollar after the gulf war in  1991 it was worth 3000 dinar to 1 dollar. Yes it has increased in time.

 

C

Check Wikipedia on the history of the Iragi dinar.

 

The Saddam dinar was worth $3.22 but the IQD dinar has never been worth less than 1650 to the dollar, and you had to be in Iraq to buy at that rate.

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Wait a second!  Wasn't it "de-valued" at a "flip-of-the-switch"?  Wasn't it devalued after the Saddam era ended so that Iraq would not be able to purchase ANY weaponry?  So, if it was a programmed lowering of the value literally overnight, why does it not stand to reason that it could be increased overnight? And besides that, hasn't it already gone up in value from the original programmed rate?  So many questions, so few who really know the answers.  A few things we do know: 1) Iraq can not do anything relative to the world's economy until their money increases in value; 2) The current rate is artificial; 3) Iraq sits on soooo much oil that it boggles the imagination; 4) The political landscape and continued sectarian violence will preclude/prevent many good things happening for Iraq; 5) Trying to figure reason and logic into the way Arabs think and live is ludicrous and naive.  6) The HCL being enacted is vitally important; 7) Gooroos know absolutely nothing of which they pontificate about.  Just sayin'

Great post Choppermike

It was devalued quickly...and it will regain whatever rate it achieves quickly. It might not get to three dollars right away, but I think it will jump to between a penny and a dollar right away and that is a great return. It might be a quarter and not a thousand present, but that is still very good money. And I did not mortgage my house for my dinar.

 

All part of empire building.

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