What are we waiting for?

[VIZIOIRAQI]

What are we waiting for?

by Marcus Curtis

This post is being typed on June 17 2010. We are currently still waiting for the revalue of the Iraqi dinar. Earlier this year Iraq has announced intentions to revalue its currency. Since that time many rumors have been circulating regarding when this will happen. What will the new rate be? Will Iraq be strong enough to stand on its own two feet? What are the conditions that will bring a revalue?

Let me just touch on the conditions that need to be in place and squash a few rumors. First the new government needs to be seated. Second the prime minister and the president has got to be chosen and the new government needs to be formed. Third the budget will need to be addressed. Forth the United Nations needs to lift the chapter 7 UN sanctions against Iraq.

When Saddam invaded Kuwait the United Nations imposed sanctions on Iraq. This also limited the trading of its currency. The Iraqi dinar is only used in Iraq today and it is not traded globally. This is in part because of the UN sanctions or UN chapter 7. When the government is finally established and the budget is addressed the United Nations will lift the UN chapter 7. This will allow the currency to be traded globally and give Iraq international status. You will be able to go to banks and trade in any Iraqi currency you have for American money. The new rate will be known once they address the budget.

Some people have said that the UN sanctions do not need to be lifted for the currency to revalue. It would not do you any good to have a revalue and then have the sanctions in place. Do you want to fly to Iraq to trade in your Dinar? Would you exchange with an Iraqi currency dealer who does not need to compete with a bank?

The good news is Iraq is operating like no sanctions are in place. They are receiving ships to port. They have been buying goods that are prohibited under the sanctions. They are building infrastructures that is limited under the sanctions. The UN is looking the other way. They want to lift the sanctions completely. They will not do so until the new government is seated and the budget is addressed.

This is insurance just in case the government collapses and civil war breaks out. By the way this is one of the risks involved when buying Iraqi dinar. I do not think this will be the case. The new government is making progress. It is just extremely slow. We should be way past the point we are now, but hey…that’s politics for you. The RV will not happen until all four events take place

1 The new Government is seated

2. The government is formed and the prime minister and president is selected

3. They address the budget and announce the new rate

4. The United Nations lifts UN CH 7 Sanctions

I still believe this will happen this year and Iraq will revalue. Step 1 has already been achieved. I know we should be done with all of this by now. The fact is it is just taking longer than expected.

I believe we are close so I am adding a new section to this blog site called what happens after the RV. It will talk about all the things to do and be aware of when you exchange your money.

[Maynard57]

What are we waiting for?

by Marcus Curtis

This post is being typed on June 17 2010. We are currently still waiting for the revalue of the Iraqi dinar. Earlier this year Iraq has announced intentions to revalue its currency. Since that time many rumors have been circulating regarding when this will happen. What will the new rate be? Will Iraq be strong enough to stand on its own two feet? What are the conditions that will bring a revalue?

Let me just touch on the conditions that need to be in place and squash a few rumors. First the new government needs to be seated. Second the prime minister and the president has got to be chosen and the new government needs to be formed. Third the budget will need to be addressed. Forth the United Nations needs to lift the chapter 7 UN sanctions against Iraq.

When Saddam invaded Kuwait the United Nations imposed sanctions on Iraq. This also limited the trading of its currency. The Iraqi dinar is only used in Iraq today and it is not traded globally. This is in part because of the UN sanctions or UN chapter 7. When the government is finally established and the budget is addressed the United Nations will lift the UN chapter 7. This will allow the currency to be traded globally and give Iraq international status. You will be able to go to banks and trade in any Iraqi currency you have for American money. The new rate will be known once they address the budget.

Some people have said that the UN sanctions do not need to be lifted for the currency to revalue. It would not do you any good to have a revalue and then have the sanctions in place. Do you want to fly to Iraq to trade in your Dinar? Would you exchange with an Iraqi currency dealer who does not need to compete with a bank?

The good news is Iraq is operating like no sanctions are in place. They are receiving ships to port. They have been buying goods that are prohibited under the sanctions. They are building infrastructures that is limited under the sanctions. The UN is looking the other way. They want to lift the sanctions completely. They will not do so until the new government is seated and the budget is addressed.

This is insurance just in case the government collapses and civil war breaks out. By the way this is one of the risks involved when buying Iraqi dinar. I do not think this will be the case. The new government is making progress. It is just extremely slow. We should be way past the point we are now, but hey…that’s politics for you. The RV will not happen until all four events take place

1 The new Government is seated

2. The government is formed and the prime minister and president is selected

3. They address the budget and announce the new rate

4. The United Nations lifts UN CH 7 Sanctions

I still believe this will happen this year and Iraq will revalue. Step 1 has already been achieved. I know we should be done with all of this by now. The fact is it is just taking longer than expected.

I believe we are close so I am adding a new section to this blog site called what happens after the RV. It will talk about all the things to do and be aware of when you exchange your money.

Super observations Izioiraqi. However, there are some pretty formidable opinions that have been posted here that RV can happen prior to formation of the government. Since the 01 and 11 budgets were underpinned in 09, seating of the government is not a neccessary prerequisite. That's my understanding at least.

Thanks for the cogent commentary.

Maynard

[Mongo]

What are we waiting for?............................The Holes to go away

[DaveH]

What are we waiting for?............................The Holes to go away

Mongo,

As usual you are spot on in your assessment of the situation, That being said I am going to have a bacon sandwich.....yummy bacon....

[truckerron49]

I don't know about the rest of you, but I am just waiting, because I have nothing better to do. I'm retired and everyday now I get up, I have a coffee, and then after my shower, I look in the mirror and ask myself, "self, what would you like to do today?" and the answer is often the same, Let's check DV and check on the RV. Works well for me... Go RV..........

[Mongo]

I don't know about the rest of you, but I am just waiting, because I have nothing better to do. I'm retired and everyday now I get up, I have a coffee, and then after my shower, I look in the mirror and ask myself, "self, what would you like to do today?" and the answer is often the same, Let's check DV and check on the RV. Works well for me... Go RV..........

I look in the mirror to...and ask who's the most handsome Hog in the kingdom and he sez you are......... oink oinK OINK!!!..............Bacon sandwich.......huh.......that comes from a pig, their beneath us Hogs