Would the rate rise over time?

[BANE]

Say it came in at $2....Given a few months would it rise? IF it came in at $2, would it eventually rise to what we want in $4?

[Uncle Barkie]

Currency is just like any other commodity.There is the law of supply and demand. When the demand goes up and the supply goes down , then the price per unit increases.

So, when the IQD RV's , there will be an increased demand to purchase it ( by all the yahooos that said we were all nuts for doing so.... .) As more IQD is purchased and major companies and investments move into Iraq, the exchange rate will increase ( but I believe it will do so very quickly , as this is truly an untapped country ripe with investment opportunities.)

Great question Bane... Thanks for the post.

[Hopeful Leo]

This is my big fear.....I don't want to cash in too quickly but I don't want to wait until next year (assuming this happens in the next 30-60 days as estimated by some).

[alice]

Never be afraid of supply and demand. It's a good thing.

Alice

[gfulcher66]

as currency traders buy it up right after the rv is announced and then dump it shortly after for a profit it will go up in value (i think around 10%/mo.)

You can expect currency traders to buy it b/c of the asset rich country Iraq is

my .02

[Pexring]

Of course the big question is why aren't currency traders buying now if supposedly an RV is so close?? They know something we don't.

Edited August 28, 2010 by Pexring

[Photochic]

I'm curious if there will be a limited window of time to cash in the large denominations before it might RV to a higher amount?

[ShawnW]

Of course the big question is why aren't currency traders buying now if supposedly an RV is so close?? They know something we don't.

Currency traders trade on Digital platforms through Brokers to make thier trades. They only buy and sell Internationally recognized Currency. Since Iraq is not recognized internationally it cannot be traded currently. At least not how they do it. That is why it will be such a big deal when it does go international.

The other thing that Forex traders use is very high leverage, some up to 400:1 so if the Dinar were actively being traded now you could buy 400x the amount you are currently holding for the same price you paid for it.

That is the danger I see in coming out extremely low, is just that the rest of the investment world will jump on this and it will do nothing but bad in the long run. I have seen the central banks in several countries have to go and intervene in thier currency to try and keep it under control when things get out of hand, and even just in doing that you create issues, because if people don't beleive they can place a "fair trade" on your currency because the central bank will intervene whenever they want to, you will discourage investors, so once again, better to come out at the rate you think your currency is worth and let it take its natural course.

I know everybody says that they Iraq is out to get the investors and why would they want to pay us so much.... It has so very little to do with us. We are less than 10% of the Currency in circulation. I honestly believe they have probably not hardly even spoken about that aspect of this, as there are SO MANY things that are sooooo much more important with this.

Shawn

[Hopeful Leo]

I'm pretty sure the IQD will be pegged to the USD or a basket of currencies.

Dustin, can you explain this more? I don't understand.....or can you point me where to find the answer? Thanks!

[Hopeful Leo]

Thank you Dustin!

A fixed exchange rate, sometimes called a pegged exchange rate, is a type of exchange rate regime wherein a currency's value is matched to the value of another single currency or to a basket of other currencies, or to another measure of value, such as gold.

A fixed exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to. This makes trade and investments between the two countries easier and more predictable, and is especially useful for small economies where external trade forms a large part of their GDP.

The only way (Kuwait for example) a currency that is pegged to some other currency or basket of currencies will rise and fall is when the currency it is pegged to (USD for ex.) rises or falls.

The IQD price will not rise and fall due to demand on the open market. Imagine the problems that would arise when the CBI or the MofF is attacked with a truck bomb. The IQD is pegged to the USD right now, and will probably reamain like that or even be pegged to a basket of currencies. It will NOT be on the open market like the USD, Yen, or Euro.

As for the stories you may hear about Kuwait, this little fact shows there is a lot of BS in them.

With this being said, what do you think the rate will be?.............Thx again.