Phoenix Update: October 3rd 2010

[OKLAHOMA]

Yes all major banks will accept the IQD after the revaluation.

Thank you!

[sessi]

Thank you Phoenix, a very well thought out and intelligent opinion. I appreciate that very much.

[lost one]

As far as I know yes it is.

BUT!

As we all know too well...the date and rate are classified and we will know when we know but the Ministry of Planning has been writing contracts as per their own admission at a rate of 1 IQD = $1.17 with a reminder to all Iraqi government agencies that the offical rate of the Iraqi Dinar is $3.22.

Not my words...not speculation but 100% factual information as per the Ministry of Planning of Iraq as posted on their website.

Best of luck to all.

Phoenix

With that little ti-bit of information, the rate will be $ 1.17 for us, and $ 3.22 down the road after the high demons are turned in? or am I reading that wrong. Thanks for the post, Most informative as always.

[Frank61]

No I am saying that the RV will happen at the same time the lower denominations are issued.

So for us it is the revaluation....and we will head to the banks.

For Iraqi's it is the revaluation AND a reissue of new currency.

So this "novel event" is the revaluation.

But know that after the set time to exchange the old higher denoms for new, the currency we all now hold now may be deemed worthless as of that end date......just as the old Saddam Dinars were deemed worthless after the 90 day exchange period had expired.

So in effect we will have a time limit to exchange and after that time limit has expired the dinar we now hold if not exchanged / cashed in will be deemed worthless.

Phoenix

Great post, very factual. Thanks Phoenix !!

[Maynard57]

Hey, Phoenix.

Me, again. Sorry. I just have to ask, what do you think of Maliki's garnering sufficient votes sooner rather than later to gain appointment. I'm keeping my eye on Kurdistan for a number of reasons:

• Kurd politicians expressed very legitimate concern that going with Allawi would create a significant electoral split, considering the large Sunni makeup in the region
• Maliki is the only candidate with the juice in parliament to deliver on the things what they want.
• They also want their deal in writing this time, and Maliki has indicated that's gonna happen.
• Maliki has got to know that any hope of a deal with Iraqiya is dead in the water.
• Choosing Maliki avoids the electoral fission threatend by Iraqiya alliance and virtually assures the Kurds traditional unity in choosing who to back. 43 seats will be in Maliki's hip pocket and he's got 20 more votes than what he needs.
• I expect the Sadr bunch has done the math and have already resolved not to bolt if they're in with the Kurds on this coalition.

Here's where our RV is sitting: I don't see there being a likely alternative to this scenario, do you? Or anyone else?

Maynard

[mrspen]

Thanks so much for posting and responding in an intelligent, business like manner. This is a serious investment for most of us and not a "Bar Room Bet". The fact that most people bringing information to the table make comments like:

”..EVEN AS CORRUPT AS THAT ja**a** IS....”

“..RECORD FOR MOST xxxxxxxxx IN GOVT..”

“..MALIKI THE MORON..”

“..YEAH LET'S PUT TERRORISTS AND MURDERERS IN CHARGE..”

is scary for myself and for those of us that look to these sites for important information on our investment. It's obvious that you are making decisions based on facts and not on emotions. Please continue to keep us posted on information you find, and on your opinion of things as well. Your input is much appreciated.

[cjmac]

Thanks Phoenix............see you at the post RV party in Maui!!!!!!!!!!!!!!!!!

[keepmwlknfny]

Sounds good to me......We should keep our fingers crossed that it works out in that exact way!!! STAY THIRSTY!!!

[BANE]

How could a time limit possibly be when all banks in the U.S. do NOT deal with the Dinar. It would take a month or two if not more to properly educate them about this. The only ones ready would be Ali and his crew. He could NEVER have enough time to deal with the volume of people that have Dinars to make any kind of time limit possible. This thing would need a YEAR to be done.

[frankc]

Thx Phoenix. Here's hoping it rolls out just as you say.

[MovieMaker]

Phoenix,

thanks for your time in putting this post together for our better understanding. Sounds fantastic! Hoping it's so!

[Phoenix]

Hey, Phoenix.

Me, again. Sorry. I just have to ask, what do you think of Maliki's garnering sufficient votes sooner rather than later to gain appointment. I'm keeping my eye on Kurdistan for a number of reasons:

• Kurd politicians expressed very legitimate concern that going with Allawi would create a significant electoral split, considering the large Sunni makeup in the region
• Maliki is the only candidate with the juice in parliament to deliver on the things what they want.
• They also want their deal in writing this time, and Maliki has indicated that's gonna happen.
• Maliki has got to know that any hope of a deal with Iraqiya is dead in the water.
• Choosing Maliki avoids the electoral fission threatend by Iraqiya alliance and virtually assures the Kurds traditional unity in choosing who to back. 43 seats will be in Maliki's hip pocket and he's got 20 more votes than what he needs.
• I expect the Sadr bunch has done the math and have already resolved not to bolt if they're in with the Kurds on this coalition.

Here's where our RV is sitting: I don't see there being a likely alternative to this scenario, do you? Or anyone else?

Maynard

Maynard I think there is more going on behind the closed doors than we know and that things are further along and more agreed upon than it appears.

I personally feel that we would have never seen such strong statements from the U.S. Government and other world leaders congratulating Maliki and the nation of Iraq on his nomination if they knew or suspected the eventual outcome to be different.

I could see one world leader jumping the gun by speaking too soon but to see not only the U.S. but also many Arab nations send messages of congratulations speaks volumes to me.

So all in all no matter what may come out of the less than reliable Iraqi press I get the feeling everything is going to end well based upon the above observation and also many other positive indicators we have seen in the past few weeks.

IMHO

Phoenix

How could a time limit possibly be when all banks in the U.S. do NOT deal with the Dinar. It would take a month or two if not more to properly educate them about this. The only ones ready would be Ali and his crew. He could NEVER have enough time to deal with the volume of people that have Dinars to make any kind of time limit possible. This thing would need a YEAR to be done.

All major banks deal in foreign currency exchange every day and have done so for decades.

Many major banks deal in the Iraqi Dinar right now so all of the needed software is and has been in place and is up and running right now.

For the ones who now deal with the IQD all that will change is the rate.

For the ones that do not...that change is only one memo or e-mail notice away.

Phoenix

Edited October 3, 2010 by Phoenix

[Eddinar]

Great Post Phoenix. Thanks for the update and much appreciated.

[ccr]

Phoenix, Thank you thank you thank you... Great Info... all of the hours you have spent on this and working so hard to keep us all informed has been greatly appreciated.

Cliff and Lynn

[sidewinder615]

But know that after the set time to exchange the old higher denoms for new, the currency we all now hold now may be deemed worthless as of that end date......just as the old Saddam Dinars were deemed worthless after the 90 day exchange period had expired.

So in effect we will have a time limit to exchange and after that time limit has expired the dinar we now hold if not exchanged / cashed in will be deemed worthless.

Phoenix

Thanks for the post. Very interesting! My question is.......In your opinion will this cash in period be for all dinar notes we hold now( 50 250 500 1000 etc) or just the larger notes(5000 10000 25000)? Thanks again

[bethany]

Great Post Phenix, I'm just barely getting started educationing me on the Iraq/Dinar deal. I don't even know what lop means, but I get the general picture.

I have a very small investment and would buy more Iraq Dinar if I had money, so I'm just thanking you for your analysis and I'll keep my fingers crossed for the VR.

[joeintt]

No I am saying that the RV will happen at the same time the lower denominations are issued.

So for us it is the revaluation....and we will head to the banks.

For Iraqi's it is the revaluation AND a reissue of new currency.

So this "novel event" is the revaluation.

But know that after the set time to exchange the old higher denoms for new, the currency we all now hold now may be deemed worthless as of that end date......just as the old Saddam Dinars were deemed worthless after the 90 day exchange period had expired.

So in effect we will have a time limit to exchange and after that time limit has expired the dinar we now hold if not exchanged / cashed in will be deemed worthless.

Phoenix

Phoenix, thank you for your very thought provoking and well presented views......it is always very refreshing (as always).

However, I have often wondered why is it necessary for a new currency to be issued - especially since the current one (ie: the replacement of the old Saddam currency) includes all of the various and latest safety features, etc. to avoid being easily counterfeited.

Why can't the the same currency remain in use but just the bigger notes (ie: 1000, 5000, 10000 & 25000) just simply go out of circulations whilst the smaller denoms come into circulation? Of course, I would expect a time limit to be given for the larger denoms to be presented to the banks before they become worthless - so as to ensure that they are quickly taken out of circulation.

I would apprciate your thought (and others) views on this scenario.

As always thanks for taking the time to "walk us through this special process".

Be blessed all

Joe

[Phoenix]

Thanks for the post. Very interesting! My question is.......In your opinion will this cash in period be for all dinar notes we hold now( 50 250 500 1000 etc) or just the larger notes(5000 10000 25000)? Thanks again

My guess is all of the notes will be replaced with a new series...but that is just my guess and not based on anything I have heard.

I am sure all of the instructions will be clear and without question when the announcment is made by the CBI

[joeintt]

My guess is all of the notes will be replaced with a new series...but that is just my guess and not based on anything I have heard.

I am sure all of the instructions will be clear and without question when the announcment is made by the CBI

There is my answer.....thanks

[sidewinder615]

My guess is all of the notes will be replaced with a new series...but that is just my guess and not based on anything I have heard.

I am sure all of the instructions will be clear and without question when the announcment is made by the CBI

Thanks for taking time to reply

[Phoenix]

Phoenix, thank you for your very thought provoking and well presented views......it is always very refreshing (as always).

However, I have often wondered why is it necessary for a new currency to be issued - especially since the current one (ie: the replacement of the old Saddam currency) includes all of the various and latest safety features, etc. to avoid being easily counterfeited.

Why can't the the same currency remain in use but just the bigger notes (ie: 1000, 5000, 10000 & 25000) just simply go out of circulations whilst the smaller denoms come into circulation? Of course, I would expect a time limit to be given for the larger denoms to be presented to the banks before they become worthless - so as to ensure that they are quickly taken out of circulation.

I would apprciate your thought (and others) views on this scenario.

As always thanks for taking the time to "walk us through this special process".

Be blessed all

Joe

That is exactly what will happen...but only for a time...until the time limit expires there will be an over lap and both the larger denominations and the new lower denominations will be in circulation and both will be legal and valid currency and both will carry the new higher revaluation rate at the same time.

Example:

At a rate of 1 IQD = 1 USD the 25,000 notes would be worth $25,000 and the new 1 Dinar notes would be worth 1 USD.

BUT..that over lap will only be for 90 days or less. (At or near the end of 2010)

Phoenix

[sportfisher]

Here is how it works.

When they do this...they revalue the Dinar at the same time as the reissue.

So as an example if it they set the exchange rate of the Iraqi Dinar at 1 IQD = $1 then your 25,000 dinar notes will be worth $25,000 each at that time.

So that is the revaluation.

Now IF you were in Iraq you would EXCHANGE that 25,000 dinar note for the lower denominations and if you were to get a stack of 1 Dinar notes for that 25,000 dinar note each one of those 1 dinar notes would be worth $1

Phoenix

OK, this is your explanation of the "Revaluation" portion of the "LOP/RV" theory

Where is the part about how the LOP fits in ???

[meatmen4dinar]

Once again you delivered a top notch asessment on how it all should go down. Thanks for such a factual, professonal, and uplifting post. My belief in this investment has never faltered. I can't think of any other senerio that makes more sense. GO RV!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[quadraph0nic]

Thanks for the post phoenix. I hope and want you to be right but either way it goes down I'll just be happy when it's over.

[Scooter]

Phoenix,

Great Post!!!! It was a true pleasure to read and thanks for the follow up comments.

One comment for the rest of the DV TEAM

The importance of Monday's Oil Reserve announcement is far more significant than most can imagine, particularly when it comes to RATE. For example, If the reserves triple to 350 Billion from 115 Billion like many expect, , their deployment options just tripled. MORE IMPORTANTLY HOWEVER, THE COUNTRIES VALUATION SIGNIFICANTLY INCREASES --- COMBINE THAT WITH THE IMF'S RECENT SBA QUOTA BUMP FROM 100% TO 200%, IRAQ COULD FIND IT EASIER TO JUSTIFY A MUCH HIGHER OPENING RATE -- JUST SOMETHING TO THINK ABOUT

Again, great post and keep them coming!!!

Best regards,

Scooter