IMPORTANT PERSPECTIVE - Q & A - 2/01/2024

[ronscarpa]

  15 hours ago, edbeach said: ( In DINAR RUMORS)

Ron I agree Iraq owed Kuwait Billions of Dollars back in 2010 but this was paid over the next few years of percentage of oil sales. So wouldn't this agreement with Kuwait to be few cents below the Kuwait Dinar become null & void now to whatever Iraq decides to make the rate? Would be nice if a few cents below but my thinking as above, hopefully not a LOP

 

Hi Ed, It's a matter of National pride with the Arab nations. Who knows what agreement they may have now - lots has changed. It all depends where Iraq will start with a new exchange rate (ER). The above is certainly a possible scenario, but I personally feel they will come out somewhat low to draw in the IQD out of country (from impatient people like us who want our money back), then strategically increase the value. Remember, all the Paris Club countries hold IQD. To have a high value too soon would be giving away a fortune. The agreement with the US was to use the IQD it holds to buy Iraqi oil at a pre-agreed rate (I think it was $35/bbl). I have no idea what other countries may have agreed to.

 

We have to look at it from the Iraqi position. Even 5 cents would cost them way more than the Lop, then coming out at a $3.50 rate. Think about it ... 1 Million IQD at 5cents per IQD = $50,000. That's a $49,000 profit if you paid $1K/mil. If they did a Lop, then immediately RV'd at $3.50,  your 1 Mil IQD = $3,500. You would have made a $2,500 profit. Then pay taxes on it. Which is better for them..? It seems obvious. 

 

Only time will tell where we end up. Personally, based on all that's happened until now, I'm hoping for at least 10 cents, although I'd love to see it much higher. I used to think they'd come out at $1.28 and a controlled float up to $2.70. Then when they feel the timing is right go to the Golden Dinar of $3.33. Times have changed. I don't quite see that happening anymore.

We have to be realistic and see how many IQD are actually out there in circulation. That figure varies greatly from 40 trillion IQD to 100 trillion IQD. 

 

As of July 2023, the market value of Iraq's natural resources is estimated to be over $15 Trillion, with that figure higher as additional oil, gas and gold reserves are discovered.  So, even with only 40 trillion IQD out there, for them to cover 1 to 1 the highest rate would be at 37 cents. At 100 trillion out there, to cover a 1 to 1, the rate would be 15 cents. Hopefully, you now have a more clear picture of reality. Hope I didn't burst your bubble. Blessings. RON

[Luigi1]

I'm with you, Ron.

Iraq often boasts of it's massive wealth, both in banks & underground.

I believe CBI can afford to come out with a .05 cent to .10 cent ER, then float from there.

Another alternative is to come out with a sucker rate to draw as many IQD as possible, then RV at some other time or float.

Getting rich slowly is a lot better than nothing at all or a LOP.   IMHO.

[edbeach]

2 hours ago, Luigi1 said:

I'm with you, Ron.

Iraq often boasts of it's massive wealth, both in banks & underground.

I believe CBI can afford to come out with a .05 cent to .10 cent ER, then float from there.

Another alternative is to come out with a sucker rate to draw as many IQD as possible, then RV at some other time or float.

Getting rich slowly is a lot better than nothing at all or a LOP.   IMHO.

Luigi1  Getting rich slowly is better on less taxes here in US in the beginning the way Iraq handlesfinance could be years before another increase if they plan on that senero to float the dinar.

[NWGUY]

I would just like for Iraq to come up with anything at all, so we can decide which way we want to go.  Whether it is time to hold them, or it is time to fold them.  Just want to see something different!   For a ton of years, it has been like the movie Ground Hog's Day.  The same thing everyday, with very little change, if any.   

[Hotcurl]

6 hours ago, ronscarpa said:

We have to be realistic and see how many IQD are actually out there in circulation. That figure varies greatly from 40 trillion IQD to 100 trillion IQD. 

 

So here is my question and I'm just askin', and I know that no one here can answer, but I have to ask anyway;

How much of the above 40 - 100T IQD floating around out there is counterfeit and how much is legitimate?.

The above calculation implies that 100% of the IQD floating around, in circulation, is legitimate not counterfeit? (no dig, no harm, no foul or personal negative implication)

 

Just askin' and thinkin' ............................

 

Semper Fi 

 

[yendor]

Personally, at $0.10 I will jump at and be totally satisfied. Investing about $1,000 and getting about $100 K  ain't bad.  Not the BS we've been fed, but certainly a nice return.

[screwball]

⏰🤔🙏1.00-1.18 all currencies on a level playing field…

[rvmydinar]

16 hours ago, ronscarpa said:

 Think about it ... 1 Million IQD at 5cents per IQD = $50,000. That's a $49,000 profit if you paid $1K/mil. If they did a Lop, then immediately RV'd at $3.50,  your 1 Mil IQD = $3,500. You would have made a $2,500 profit. 

I agree with you Ron. That's what I am talking about when I always say it is better for the IQD to RV from 5 cents to a dime than to LOP and RV at $3.50 ( only get 250% profit ). I like the way you think Ron. Higher than a dime is a blessing.