Why So High?

[rwharnden]

Ok; like all of you I am an invester in the IQD and I am excited also at much of the information being provided to us buy respected folks on the sight. Kudos to them for never steering us wrong with dates or rates. That said many do attempt to provide rates.

A question I have is why do so many think this impending RV will be pegged so High? I have heard it has to be to "save the global economy" and "to pay for the war" and "because of iraqs oil wealth". All are fine points and I am not discounting any of them as plaussable; however upon doing my due diligeance I find reasons to doubt a high number.

Some folks have thrown out outlandish rates like $5.72; and though that sounds amazing it may be unrealistic. Why would a war torn country that struggles to provide basic needs to its people IE utilities, water, sewage etc. revalue as the highest currency on the planet? Currently Kuwait is the highest valued currency at $3.55

Saudi Arabia has the number #1 oil reserves in the world and thier currency is .26 cents to the dollar

Iran is ahead of Iraq in oil reserves and thier currency is less valuable than Iraqs? (wikipedia July 5, 2010)

Kuwait as we know rocks the best buck on the planet at $3.55; thier oil reserves are #5

United Arab Emirates has the number #7 oil reserves and thier currency is .27 cents to the dollar

Qatar has the number #12 oil reserves and thier currency is .27 cents to the dollar

six of the top 12 oil producing countries on the planet are iraqs neighbors however all of them with the exception of Kuwait are far less than a dollar. With most of those neighbors boasting modern cities and modern skylines, and important note none of them being modern day war torn. Now I do understand the the IQD was $3.21 prior to the war however I can't understand how with violence persisting and basic needs for many missing it can bouce back over night. I do know there are companies interested in doing business there; my question........Is that enough for a $3.00 RV?

I appreciate your well intentioned comments!

Thanks RW

[ktlamm]

Good question???keep in mind Irag now shows they have more oil reserve than all of them but one.And after all this they should be very debt free. If you could do the math on what they project in oil of 12mil a day its unreal. This is not counting thier natural gas which is #1 in the world and they also have gold, agriculture????? Food for thought.JMO thanks God bless Also I by no means am saying its a $5 rate ....1.50----2.50

Edited November 16, 2010 by ktlamm

[ISU Sycamore]

I've wondered the exact same thing. I have hoped to see like $.10, thinking $1.00 plus seemed high initially.

Edited November 16, 2010 by ISU Sycamore

[johnfagan]

I think your spot - on! Even if it does RV, the rate will probably be pennies, at least for awhile. Peace

[lumpsum]

Some countries like to keep their values artificially low like China, Saudi Arabia etc. because it gives them bargaining power. I think

[blanc]

The USD is undervalued to the KWD. Our money is worth .27 compared to their currency not the opposite.

[ktlamm]

I think your spot - on! Even if it does RV, the rate will probably be pennies, at least for awhile. Peace

Just another food for thought post.. If it comes out too low on the Forex as a tradable currency no one would cash in, huge investors ( the big fish) would jump all over it and wait. Iraq needs to be able to cash in lg bills asap to move the smaller ones out..

[Dinerry]

Pre-Saddam

Pre-USA/Iraq War

The IQD = $3.22

Soooo why wouldn't they reach for and ask for = $3.22

to return back to their GOLDEN DAYS!

Thennn the natural resources part of the equation kicks in.

Thennn the lifting of DEBTS OWING TO OTHER COUNTRIES, kicks in.

Then THAT INCREASES THE VALUE OF DINAR, to be MORE THAN = $3.22

Might be right off the bat, at the announcement in the FOREX exchanges.

Oh. And also SMART CARDS got loaded, or are being loaded. The value of the smart cards got changed. And also security and CITIZENS RIGHTS, and consumer fraud protections are happening. So the smart cards was a necessity, is FOR THE CITIZENS. The government is working to PROTECT CITIZENS FROM FRAUD.

And give them HIGHER VALUE of spendable, usable SMART CARDS.

If one wants to get greedy about it, we could say that Iraq could afford and sustain = $16.00 RV

But... THAT'S TOO FAR FETCHED.

I look at the Kuwaiti dinar (KWD) as a good indicator of RV value to look at.

It goes up, and it goes down. Last I looked the KWD is at = $3.55

We bought IQD's less than a .01penny. Best dayum penny stock I EVER PURCHASED!!!

The real deal that's very pretty to look at too!

RV?

Me myself I say = $3.56

Comfortable with that feeling and hope.

GO RV!

Edited November 16, 2010 by Dinerry

[Trimark]

Here is a good chart that shows the IQD in historical terms. What's amazing is that Iraq was able to support a dinar value between $2.80 -$4.86 at a time when oil was around $20 USD/barrel.

If they were able to support that value when oil prices were low it is reasonable to believe they can do so now when oil prices are so much higher. Not to mention how little debt they have, how much more oil they have than previously thought, etc.

Dinar Value Chart

[American]

With the new found oil reserves and the national debit reduced by 80% with all of the new contracts that are in place it is my opinion that we will see the RV return to the rate of $3.22 that it was before the war maybe even higher. Only time will tell good luck to all!

[John54]

Good post RWHARDEN, i think about that alot also, plus the fact why would they want to make millions of people millionaires and plus, everyone knows how corrupt this place is and what comes up missing. But same thoughts RW.....

[pokerplayer]

I've wondered the exact same thing. I have hoped to see like $.10, thinking $1.00 plus seemed high initially.

I agree, I have always suspected .10+ but with all the news and documented facts coming out, its looks like they can and could RV much, mush higher. Even a dime is a great return, but lots say, big bucks business would buy Iraq up in a heart beat.

JMHO, pp

[letsroll]

I think you can toss Iran out of the equation ... aren't they under sanctions of some sort ? ..... always wondered why Iraq and Kuwait & maybe others like Bahrain had high values and the other ME oil countries did not , seems odd you would think they would all be in the same range... ?

Edited November 16, 2010 by letsroll

[Danneedsrvnow]

I think everyone needs to stop the rate speculation game......after all, no one will know for sure until the rv happens! (fact)

[Joe P]

Okay Folks,

The number 1 reason Saudi and United Arab and Qatar rates are so low is because they share their oil income with their population. Each citizen (or family don't quote me on whom exactly) receives a 'substantial' annual payment of their national GDP.

Kuwaiti, Bahrain, Omar and the likes don't have such a substantial oil sharing program, in fact it's very low if at all.

That is the number 1 reason why the currencies are so different in value.

[Tiffany23]

A guy walks into a nut shop and asks how much is a lb of peanuts? The guy behind the counter says $7.55 a lb. So the customer then asks, how much are your walnuts per lb? The clerk says $10.59 a lb. So the customer says...what is that sticking out between your eyes, is that your d&ck? The clerk says, "Ah no, that's my nose. Why did you ask if it was my d&ck?" The customer say, well I thought it must be, as your nuts are so high.

[letsroll]

Thanks Joe P

[Draco]

A guy walks into a nut shop and asks how much is a lb of peanuts? The guy behind the counter says $7.55 a lb. So the customer then asks, how much are your walnuts per lb? The clerk says $10.59 a lb. So the customer says...what is that sticking out between your eyes, is that your d&ck? The clerk says, "Ah no, that's my nose. Why did you ask if it was my d&ck?" The customer say, well I thought it must be, as your nuts are so high.

You may want to do the jokes in "Off Topic" It was funny, but some folks just want hear the facts, just the facts. Here, now, on the post that was started. Thanks!!!

Draco

[BtrFuture4All]

Okay Folks,

The number 1 reason Saudi and United Arab and Qatar rates are so low is because they share their oil income with their population. Each citizen (or family don't quote me on whom exactly) receives a 'substantial' annual payment of their national GDP.

Kuwaiti, Bahrain, Omar and the likes don't have such a substantial oil sharing program, in fact it's very low if at all.

That is the number 1 reason why the currencies are so different in value.

Thanks for explaining this so clearly. When looking at the charts I've always wondered. I think I've heard it verbally but it did not sink in until reading it.

[djwebby]

Okay Folks,

The number 1 reason Saudi and United Arab and Qatar rates are so low is because they share their oil income with their population. Each citizen (or family don't quote me on whom exactly) receives a 'substantial' annual payment of their national GDP.

Kuwaiti, Bahrain, Omar and the likes don't have such a substantial oil sharing program, in fact it's very low if at all.

That is the number 1 reason why the currencies are so different in value.

Yes, this is true; i remember watching a programme a few weeks ago on someone living in United Arab Emirates who received at least £30,000 a year as their share of the payment and they were unemployed.

[doc9574]

Joe, thank you for that, was info I had not previously known , i personally thought the SA currency was higher , my mistake but gives me an idea why it wasnt, appreciat ethe info........................Doc

[Captjohn]

Here is a good chart that shows the IQD in historical terms. What's amazing is that Iraq was able to support a dinar value between $2.80 -$4.86 at a time when oil was around $20 USD/barrel.

If they were able to support that value when oil prices were low it is reasonable to believe they can do so now when oil prices are so much higher. Not to mention how little debt they have, how much more oil they have than previously thought, etc.

Dinar Value Chart

Assuming an average value of $3.83 ($2.80 - $4.86) when oil was $20.00, it's not hard to see how oil at $83.00 could easily support a value well above $10.00.....not that I'm suggesting that would happen.. However, it does make anticipated values like $5.72 seem much less unreasonable and wild.

[Ninjaturbo02]

Ok; like all of you I am an invester in the IQD and I am excited also at much of the information being provided to us buy respected folks on the sight. Kudos to them for never steering us wrong with dates or rates. That said many do attempt to provide rates.

A question I have is why do so many think this impending RV will be pegged so High? I have heard it has to be to "save the global economy" and "to pay for the war" and "because of iraqs oil wealth". All are fine points and I am not discounting any of them as plaussable; however upon doing my due diligeance I find reasons to doubt a high number.

Some folks have thrown out outlandish rates like $5.72; and though that sounds amazing it may be unrealistic. Why would a war torn country that struggles to provide basic needs to its people IE utilities, water, sewage etc. revalue as the highest currency on the planet? Currently Kuwait is the highest valued currency at $3.55

Saudi Arabia has the number #1 oil reserves in the world and thier currency is .26 cents to the dollar

Iran is ahead of Iraq in oil reserves and thier currency is less valuable than Iraqs? (wikipedia July 5, 2010)

Kuwait as we know rocks the best buck on the planet at $3.55; thier oil reserves are #5

United Arab Emirates has the number #7 oil reserves and thier currency is .27 cents to the dollar

Qatar has the number #12 oil reserves and thier currency is .27 cents to the dollar

six of the top 12 oil producing countries on the planet are iraqs neighbors however all of them with the exception of Kuwait are far less than a dollar. With most of those neighbors boasting modern cities and modern skylines, and important note none of them being modern day war torn. Now I do understand the the IQD was $3.21 prior to the war however I can't understand how with violence persisting and basic needs for many missing it can bouce back over night. I do know there are companies interested in doing business there; my question........Is that enough for a $3.00 RV?

I appreciate your well intentioned comments!

Thanks RW

Great post! Enjoyed reading it.

[blanc]

A guy walks into a nut shop and asks how much is a lb of peanuts? The guy behind the counter says $7.55 a lb. So the customer then asks, how much are your walnuts per lb? The clerk says $10.59 a lb. So the customer says...what is that sticking out between your eyes, is that your d&ck? The clerk says, "Ah no, that's my nose. Why did you ask if it was my d&ck?" The customer say, well I thought it must be, as your nuts are so high.

Very unbecoming for a young lady as yourself.

God Bless

Blanc

[Tiffany23]

Sorry...but don't you know girls just want to have fun.

It won't happen again...I'll never be funny ever again...promise!