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What Happened To The Kuwaiti Dinar in 1991


Phoenix
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Over and over I have seen the question asked about the history of the Kuwaiti Dinar after the first Gulf War.

I have posted this information many times in the past on many forums but it seems that most have forgotten and the new investors have never been educated as to what happened on the ground in Kuwait.

So here it is by the numbers.

1. Saddam rolled into Kuwait and removed billions of Kuwaiti Dinar

2. The value of the Kuwaiti dinar dropped from it's pre invasion value of $3.47 per dinar to a low of .05 - .10 cents per dinar.

3. Everyone in Kuwait and the region were dumping all of the Kuwaiti Dinars they had for US Dollars as fast as they could.

4. When the US rolled in to liberate Kuwait the Kuwaiti Dinar was being traded on the street / black market for as low as .10 cents per one Kuawiti Dinar.

5. New currency was printed and exchanged after the banks reopened and the value of the Kuwaiti Dinar was returned to it's pre invasion value of $3.47 and all older dinar vas exchanged at this high value.

6. So YES...there were people who bought the Kuwaiti Dinar in Kuwait at a price of .05 to .10 cents and redeemed them at the full price of $3.47.

This DID happen.

Here is the TRUTH from the New York Times in March of 1991

Hopes this helps.

Phoenix

AFTER THE WAR; No Electricity but Kuwait Reopens Its Banks

By DONATELLA LORCH, Special to The New York Times

Published: March 25, 1991

. .KUWAIT CITY, March 24— It still has no water and little electricity or food, but Kuwait revived its banking system today, introducing a new currency.

Banks reopened for the first time since Iraqi occupation forces shut them down in December. Thousands of people lined up to exchange their old Kuwaiti dinars for crisp new ones and to withdraw a limited amount of money.

Without electricity, the banks services were slow, limited to money exchange and withdrawal. There was no telex, no electronic money transfer and no telephones. The computers were unusable, so all transactions had to be entered by hand.

"It's like going back 20 years," said Mohammed al-Yahya, the manager of the Commercial Bank of Kuwait, the nation's second-largest bank. Seized Dinars Canceled

The Central Bank is canceling the value of Kuwaiti dinars that were seized from the Central Bank and put into circulation by the Iraqis. The invalid serial numbers were posted today in front of all banks in the city.

All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.

Although it is severly handicapped without electricity, the Commercial Bank, like many other major banks, was able to open for business because its records had been saved from the Iraqis. Mr. Yahya hid the bank's balance sheets in his home and sent its computer records to London via Syria with an Indian employee, who packed the tapes into the back of a trailer.

The banks also face serious personnel shortages. Only 11 of the Commercial Bank's 35 branches opened today, with 137 out of 1,300 workers.

Before the Iraqi invasion, only 17 percent of the bank's staff was Kuwaiti. Many of the foreign workers -- Jordanians, Palestinians and Indians -- fled and now cannot re-enter the country.

For those exchanging money today, there was little they could buy in Kuwait. Many of those in line said they planned to use their money for vacations or for shopping trips to Saudi Arabia to buy generators and food.

"I need to get away from this pressure," said Abdul Mohammed Hussein, a computer engineer in his early 40's who said he was withdrawing 1,500 new dinars to take a vacation in the United Arab Emirates. "Everywhere you go you find lines. At the supermarket, you find lines. To get petrol for the car, you find lines."

Abdul Hamed al-Atar, a 50-year-old retired Interior Ministry official, said this was the first time he had set foot in a bank since September, and he seemed relieved. "Kuwaits always keep a lot of cash with them," he said as he was handed crisp new piles of money that he stuffed into a small bag. "It's a comfort to have money in my hands."

Photo: As Kuwaiti banks opened for the first time in months, a group waited in line to change old banknotes for new. New currency was printed to replace stocks of previous notes looted during the Iraqi occupation. (Agence France-Presse)

Link: http://select.nytimes.com/gst/abstract.html?res=F2061FFD3D5B0C768EDDAA0894D9494D81&scp=4&sq=Kuwaiti%20Dinar&st=cse

Edited by Phoenix
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Here is more proof.

This article is also from the New York Times and was printed just one week BEFORE the Kuwaiti Banks reopened and they clearly say that the Kuwaiti Dinar was worthless.

7 Days AFTER this article stating the Kuwaiti Dinar was worthless the banks reopened and accepted the same "worthless" Kuwaiti Dinar at the exchange rate of $3.47 per 1 Kuwaiti Dinar.

Article:

AFTER THE WAR; Quick Kuwaiti Recovery Is Seen, With the Cost Less Than Thought

By YOUSSEF M. IBRAHIM, Special to The New York Times

Published: March 18, 1991

Snip: "There is no Kuwaiti currency: the Kuwaiti dinar has no fixed value and the Central Bank and other banks have yet to tell people what will happen to their savings or to find records of millions of accounts. Free Food and Gasoline"

Link:

http://www.nytimes.com/1991/03/18/world/after-the-war-quick-kuwaiti-recovery-is-seen-with-the-cost-less-than-thought.html?scp=1&sq=Kuwaiti%20Dinar&st=cse

Edited by Phoenix
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Thanks Pheonix. Yet it still doesn't explain whether there was an currency fluctuation from March 24th through May 7th like many have asked. Anytime during that window of time did the $3.47 move in price.

A short answer:

No.

The exchange rate did not fluctuate more than plus or minus .04 cents during that time frame and i challange ANYONE to prove otherwise.

The Central Bank of Kuwait had just issued new currency accepting the old at full value of 1 KWD = $3.47 and all effort was made to prove the stability of the Kuwaiti Dinar to the world and region and part of that effort was active stability of the exchange rate and all effort was put forward to PREVENT fluctuations of the exchange rate up or down.

All of the BS about the KWD jumping real high is 100% BS spread by pumpers.

And that...is a fact.

Phoenix

Edited by Phoenix
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Thanks Phoenix. That being said, and logically speaking Iraq is a different bear than Kuwait, but if and when the RI/RV for Iraq does come about, do you see similarities in exchange rate stability similar to Kuwait. I say this because like you say, other "pumpers" out there are saying cash in quick because rates can change fast.

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Here is more proof.

This article is also from the New York Times and was printed just one week BEFORE the Kuwaiti Banks reopened and they clearly say that the Kuwaiti Dinar was worthless.

7 Days AFTER this article stating the Kuwaiti Dinar was worthless the banks reopened and accepted the same "worthless" Kuwaiti Dinar at the exchange rate of $3.47 per 1 Kuwaiti Dinar.

Article:

AFTER THE WAR; Quick Kuwaiti Recovery Is Seen, With the Cost Less Than Thought

By YOUSSEF M. IBRAHIM, Special to The New York Times

Published: March 18, 1991

Snip: "There is no Kuwaiti currency: the Kuwaiti dinar has no fixed value and the Central Bank and other banks have yet to tell people what will happen to their savings or to find records of millions of accounts. Free Food and Gasoline"

Link:

http://www.nytimes.com/1991/03/18/world/after-the-war-quick-kuwaiti-recovery-is-seen-with-the-cost-less-than-thought.html?scp=1&sq=Kuwaiti%20Dinar&st=cse

thank you,yes newbies are green and i'm a women so it's even harder for me to understand this stuff!!! were there lots of americans that were into that investment???

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"were there lots of americans that were into that investment???

Not that many.

Most were the US Troops that were in Kuwait at the time.

There was some specualtion going on in the region on the KWD but it was limited and local black market trade.

I only know of two cases myself.

One was an Airforce officer who was on a security attachment at the time. He was scooping up as much KWD at .05 - .07 cents that he could buy. All of his men thought he was an idiot for doing so and he caught the brunt of many jokes.

After the banks reopened with the rate at $3.47 the jokes all stopped. He was gone right after left the military early (how much he spent on KWD and how much he made is unknown)

The other was one sargent who found his Kuwaiti Dinar in an alley by a building that was trashed. He said it was on the ground like someone had just threw it away in frustration. He stopped to pick it all up and he also was laughed at by everyone in the patrol. He offered some to other guys as keep sakes but they did not even want it.

That sargent ended up with a little over $260,000 dollars profit from his "keep sake" he stopped to pick out of the trash.

I know there are many stories like those but how many made money on that situation i have no clue.

Phoenix

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Thanks Phoenix for debunking the ususal misinformation that one reads out there. Seems that the IQD will follow somewhat the same path as the KWD; that is, drastic devaluation during wartime, then reinstatement to its former, pre-war level. Seems very logical that an RI could and should take place with the IQD. My question is how the KWD value fluctuated after reinstatement over, say a one-month period. We hear it rose to $7, then as high as $9 before falling back down below $3 per dinar. Perhaps someone can come up with a chart that shows its performance over the post-reiinstatement period. Don't know if those stats exist, but it sure could be helpful to our understanding of the dynamics post RI.

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A short answer:

No.

The exchange rate did not fluctuate more than plus or minus .04 cents during that time frame and i challange ANYONE to prove otherwise.

The Central Bank of Kuwait had just issued new currency accepting the old at full value of 1 KWD = $3.47 and all effort was made to prove the stability of the Kuwaiti Dinar to the world and region and part of that effort was active stability of the exchange rate and all effort was put forward to PREVENT fluctuations of the exchange rate up or down.

All of the BS about the KWD jumping real high is 100% BS spread by pumpers.

And that...is a fact.

Phoenix

Thanks again Phoenix for answering my question. I tried searching the forums, but it was limited to only the previous 200 posts. In addition, there was no information on the fluctuation. We were all hearing that it went from $2.47-$6-$9 then back down to $3.47. Glad to know that there was no fluctuation on the price, because I was having difficulties in deciding what to do with exchanging the dinars. Thank you again for answering my post. I deeply and truly appreciate all that you do for the forums!!!!

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A short answer:

No.

The exchange rate did not fluctuate more than plus or minus .04 cents during that time frame and i challange ANYONE to prove otherwise.

The Central Bank of Kuwait had just issued new currency accepting the old at full value of 1 KWD = $3.47 and all effort was made to prove the stability of the Kuwaiti Dinar to the world and region and part of that effort was active stability of the exchange rate and all effort was put forward to PREVENT fluctuations of the exchange rate up or down.

All of the BS about the KWD jumping real high is 100% BS spread by pumpers.

And that...is a fact.

Phoenix

Posted Yesterday, 07:52 PM

Frank26 Post: 15 September 2010 - KTFM

Good evening Family,

T minus 108…….or less.

May all honor and glory go to God if you should benefit from reading my post. I bring it to you with a sincere heart to take it to God in prayer. I accept His judgment and yours.

For a week now I have been planting a seed so that you can water it ……..or let it dry. Let’s go back a week ago yesterday to our cc when I explained to you that the IQD according to S can have high and low denoms co-existing at the same time. It was explained to you that this scenario could possibly keep the rate at 1170. I said it would be dumb because the SHARKS or WHALES would take advantage of this rate or even at a rate like 10 or 20 cents. So coming out at a low rate ………was illogical. But there was one other point being driven on that cc………IRAQ WILL FOLLOW THE SAME PATH THAT KU TOOK.

Then yesterday on our cc we took you from the left side of the spectrum all the way to the right side and suggested ……..what if the rate came out high? We talked about it and repeated the drill of ……..IRAQ WILL FOLLOW THE SAME PATH THAT KU TOOK.

What path did KU take? When it was introduced it came out in the middle 90’s at around 2.30/2.40 but it didn’t stay that way. Within hours it jumped dramatically into the 6+ range. That was a mistake. The IMF got involved and said you have to devalue. It took some weeks ………but they finally obeyed. Damage was done and it took almost two years to allow the KU dinar to finally adjust itself at around 3.44 in 1999.

So with these seeds being planted ……..did you water them? Last night on our cc you had to really pay attention to find my message.

Look Family…….let’s pretend that history repeats itself and that it learns from itself as well. A week ago I told you the odds of it coming out at a low rate were ridiculous. Yesterday I watered your seeds. We know that they cannot come out a low rate when they RD because the SHARKS or WHALES will reverse the process that has taken so long ……..the retrieval of the 000’s (high denoms). So if we learn from history logic says it is best to come out at a high rate and pay off the WHALES and SHARKS instantly instead of having them derail the RD process. Removing the 000’s was extremely important for the M1…M2 and M3 figures. The CBI does not need them to leave their vaults a second time.

On my cc I mentioned a number ………most of you heard it. That number represents the amount of time that SHARKS and WHALES will feed………at a high rate. If history repeats itself. Then just like in the past ……..that rate will go down and readjust itself. Hmmm……..a small window that allows a trade off……..kind of smart. But wait a minute……if history does repeat itself……..this time around you can be a part of it. GET IN AND GET OUT FAST……..what’s that number again?

Originally Posted by angelquest

FRANK.............a few months back we spoke to this and here it is in an article........the amount they are trading for dinar in US dollars........I know we can not trust the Auctions but I am still thinking that one of our intel said they could go as high as $10 but they will not so this leads me to believe since they put it out there that..............indeed it will be the KU steps............no????? 13to$1 then 8to$1 etc...............woohooooooooooo

Conscious / height central bank sales to 156 million dollars

Now everyone remember this was last week the CBI was closed..........just saying...........

Conscious / Baghdad / g. W

15 / 9 / 2010 09/15/2010 01:04 pm 01:04 pm

Close the Central Bank of Iraq on Wednesday DIFC Week sessions for the sale and purchase of foreign currency and the dollar higher level of sales of the dollar to 156.975 million dollars after a week of meetings resumed the level of financial Amounted to 126.636 million dollars The stable exchange rate reached 1170 dinars per dollar.

The Information Office of the Bank's bulletin obtained (Agency Iraqi media / INA) copy them to the total sales of the bank ranging from 17.57 million dollars MM shot the bank for cash at a stable exchange rate was 1183 dinars per dollar, including the commission the bank amounting to 13 dinars per dollar.

And amounts transferred out of the country amounted to 139 405 000 Dollars in cash and bank shot at a stable conversion reached 1179 dinars per dollar, including the commission the bank of 9 dinars per dollar.

so biggies maybe getting 13-9 dollars sooooooo hmmmmmm imagination..........386 looks solid to me..........

Did not make the 15 banks participating in the auction of any offers to buy Dollar, noting that the CBI Itqdy commission amount (13) dinars per dollar with a discount (8) dinars per Dollars from the amounts purchased.

The central bank held five meetings during the Iraqi week of financial support for the sale and purchase of foreign currencies and the dollar.

God only knows when they will RD and RI ………God only knows the rate. But if history repeats itself………they are going to come out high. It was shared with you not to be surprised how the GOI will reveal to you slowly new surprising sources of funds that were accidentally discovered. In other words more and more fuel to launch the RD and RI will be uncovered. PAPATOM also found another article on this subject. Please enjoy.

Originally Posted by PapaTom

http://www.miamihera....-security.html

check out the last paragraph for sure!

i didn't see it posted yet...please excuse if it's a dup posting.

Awesome! Here's the last paragraph!

The ministry has missed deadlines to complete a detailed report of its finances under an agreement with the International Monetary Fund. U.S. officials said that report would be submitted within days and offer a fuller picture of how much cash the government has on hand.

WELL, WELL, WELL,,,,,hmmmmmm???? Great post! Thank you!

Read more: http://www.miamihera....#ixzz0zd8w78LS

Just want to make sure everyone reads this one!

Boy we sure are having FUN……..I mean ………FUNDS! Aren’t we Family? I am a US taxpayer…….you’re welcome Iraq. Even if you insist on being ungrateful. Just reveal the GOI so that it can reveal the rest. I’ll call it even.

Iraq Posting Massive Surplus Thanks To U.S. Taxpayers

First Posted: 09-13-10 02:28 PM | Updated: 09-13-10 02:40 PM

Get Politics Alerts

Even as the United States has been borrowing trillions to pursue its wars in the Middle East, the government of Iraq has posted a tidy surplus, according to a new Government Accountability Office report.

The report makes a direct link between U.S. government spending -- including $642 billion on U.S. military operations there and $24 billion for training and equipping the Iraqi security forces -- and Iraq's cumulative surplus of $52.1 billion through the end of 2009.

For comparison purposes, Iraq's annual gross domestic product is $65.8 billion. Meanwhile, the U.S. national debt has soared from $6.4 trillion to $13.4 trillion since former president George W. Bush invaded Iraq and decided to borrow the money for wars and slash taxes.

The GAO report concludes with an understated recommendation that "Congress may wish to consider Iraq's available financial resources" when reviewing future funding requests to support the Iraqi security forces.

The report notes that the Obama administration is currently requesting $2 billion in additional U.S. funding in its fiscal year 2011 budget request to support the training and equipping of Iraq's military and police.

Discrepancies in Iraqi accounting led the GAO to report wide ranges in some areas. For instance, the report says that through the end of 2009 Iraq had between $15.3 billion and $32.2 billion in financial deposits held at the Central Bank of Iraq, the Development Fund for Iraq in New York, and state-owned banks in Iraq. That's quite a range.

Measuring the exact size of the Iraqi surplus is made even more difficult due to the "misappropriation of government funds and inaccurate reporting of expenditures," the scale of which is unknown but potentially staggering.

Ring ring.

Yes this is Frank can I help you?

Hello Frank………this is Ali ……how are you today?

I am fine Sir it is good to hear from you…….how can I help you?

Well Frank ……you must have talked yesterday because everyone is calling me about you.

I had plans on calling you today Sir to clarify the cash out procedures for our Toledo Office. I told the Family to call you and make an appointment with a locked or floating rate that you would give them.

Yes I know…….and I thank you but I wish for you to tell them more on your site.

Yes Sir……I will. We had a conference call that brought in almost 5,000 callers along with a few other thousands listening on skype. I am sure that this was the reason for your phones ringing off the hook today. Tell me Sir ………what would you like for me to tell the KTFM Family?

First of all Frank tell them they are to call Dinar Trade and make an appointment at one of our offices and at that time we will give them the rate that the CBI has given us. If they have a history in our records that they bought from us………we will lock in that rate. If they did not purchase dinar from Dinar Trade and bought from someone who did purchase from Dinar Trade…….we will lock in the rate for them if they can give us the name and information of that customer. If they call for a reservation and they do not have a history of being a customer with Dinar Trade …….then we will not be able to lock in the rate at that given time……….but we will make an appointment for them. If they belong to a group that purchased from Dinar Trade and can prove it…….their rate will be locked in with that group. Each group will be given an ID #. That group will be represented by one person and that ID# and will receive an appointment and a locked in rate if they were DT customers. When they call in for the reservation they will be guided to a website where they will find a contractual form that they must print out ………fill out……….and get notarized. They are to fax it back to Dinar Trade which will become a legal and binding contractual agreement between Dinar Trade and them. If they do not show up for the appointment ………locked or floated rate……….I have the rights to take legal action. Once we receive that contract Frank we will lock in their rate and confirm it by sending them an email.

No worries Ali……..I will post this on my front page tonight. By the way Sir……once they fax you their contract you say they are committed. But may I ask you ……..what offices will be ready INSTANTLY?

Tell then Frank that the two California offices and the one in Tennessee will be open………INSTANTLY.

What about my office with you in Toledo, Ohio?

Tell them Frank that the remaining offices which I call satellites will be open within 5 days or less. The office I am doing with you will be up and running very quickly. These satellite offices will open at 8am in the morning.

Thank you very much for this information Sir. May I ask you about the appointments? Many belong to KTFM and fear that when they make an appointment with you it will be many weeks down the road before they can exchange in Toledo. I say this Sir because they fear we will be overwhelmed!

Frank……there will be no problem with that.

Sir……can you give me an approximation of how many people will be able to be exchanged per day at your satellite offices like ours in Toledo?

Yes……between 300 to 400 per day.

ARE YOU KIDDING ME?!!! Just playing Sir…..I remember what you had told me before. Just wanted your permission to post it. I have told the Family to have your office number in their cell phone. I have also explained the need for them to call you as quickly as possible to make an appointment. I do not worry about the appointment Sir…….I teach them about the history of KU.

It was good talking to you Frank. Thank you for your help.

You are more than welcome Sir. Maybe I should have had you on my cc.

LOL!!!

Take care Ali……see you SooM.

I asked you this morning …….from where will the beast arise? Last month I said it was a coincidence that I was seeing 1111 all my life. I pointed it out because Forex for a long time has been showing an IQD rate of ……..1111.1111. I thought that was kind of cool. Then this morning it showed itself like this:

1 IQD = 0.0015 USD 1 USD = 666.6667 IQD.

From the area of the Garden of Eden…….of the Three Wise Men …….so shall the beast rise in the latter days. What’s his number? See why I had you study the number 1111? For those that do not study the Bible I ask you politely you are allowed to mock me to any degree but kindly leave this alone.

SNOW GOOSE ……..you had an excellent bank story from Wells Fargo today. I wanted to thank you for sharing it with us………I call it teamwork.

Family…….IMO the RD and RI will occur this year. I am very grateful when this becomes the case. I grow tired but quickly find strength when I sit and talk with God. He tells me to stop feeling sorry for myself ……….and it humbles me. But I also tell Him how much I appreciate the chest he has given me. Along with the full suit of armor and my stubbornness …….I find myself still here on the internet trying to help. I tell Him it breaks my heart when others try to defend me. It is simply a Christian act but it triggers an ugly response from some undisciplined humans that create hurt.

Why do I tell you such a thing Family? Do you remember yesterday on my cc when I started out by giving all the honor and glory to God and asked you not to give me accolades nor praises because it stimulates the jealousy in others? Haven’t I constantly said that everyone seeks recognition? With almost 12,000 of us there is bound to be the negative among us. When my admins or mods ban a person at KTFM because they are disrespectful to a member or to me ……..some that are …….just for dinars……..classify that action as a cult movement. It’s sad but thank God it’s such a minuscule amount that think that way. Below is an example of how even on my forum ……….a grave misunderstanding can be created. MARKUS STT is a very dear and close friend of mine. We are friends for life…….and an eternity. If you read what he posted this morning it would cause you to think that he was mocking me and so did my admins along with some members that reported the post. When I read it……..I understood it instantly. All I am trying to say is that the internet is a difficult place to express the spices of one’s words. So to those of you that fight to defend me at other sites……ERNEST T BASS……..let it go. I am aware of many things by the Grace of God. Nobody will understand this except for one person……..last night on my cc we followed “JUST A MAN LISTENING” as he instant messaged KTFM members telling them how evil I am and what he plans to do about it. May we pray for this man and the handful that have so much hatred towards their fellow mankind. By the way MARKUS STT ………you stop defending me too…….love you Sir.

Markus STT

Frank, I heard the opening of our CC tonight and I don't get what all the fuss is about. You are clearly a piece of dirt; merely a clay vessel full of God knows what! Giving honor to a person who is obviously nothing more than a man under the authority of One who is greater and much more powerful than he...well, that's just stupid! You are just a lowly man, verbally smitten by man, (presumably) falsely accused and just an all around overly publicized kinda guy... Feel better now???

...And I actually like this guy...what's wrong with me? You know what Frank, I sometimes visit 3 other forums and I tell every one of them that I don't know you! Je'sus...was that you??? I thought I just heard a chicken crow...

Below is the playback information in case you missed the cc last night.

Conference Playback Information

Playback Number: (760)569-7699

Access Code: 892625

Playback link: https://app.freeconf....0-17-65-67.mp3

rapidshare link: http://rapidshare.co....92010.mp3.html

I talked to people that are losing their children in hospitals today. I talked to some that the hospitals saved their children. Talk about an ebb and flow. Most of you think that I post and do a cc. Some think I am the next best thing to Jim Jones……LOL. But you know what I think? That I only care about two things. How God thinks of me………and how I think about His children. I love them both. My Christian love and Aloha.

KTF,

Frank

__________________

Hebrews 11:1

Now faith is the substance of things hoped for, the evidence of things not seen.

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