Rate question

[lumpsum]

Thank you for your input Steve!

[Tinker_Bell]

SteveI thank you for always breaking it down and making it understandable. I appreciate all you do and pray for your safe travels. God Bless you and your Family.

[lechesuerte]

Thanks for the input from all! It is an interesting discussion to have.... I wonder what today's fractonal banking percentages will have on the overall outcome or rate? Steve, I too, believe that Shabibi is quite crafty, afterall he does have a doctorate in economics and worked as the senior economist for the UN for about 20 years, so he will do the best for Iraq and hopefully for the world. GO RV in 2010!!!!

[pop]

This is a simple question that is probably going to require a complicated answer, (funny life is that way too). I have a hard time spelling world economics much less understanding them, but one point of a large rate has been standing out in my mind for awhile and I would like someone to shoot holes in it.

I understand that the Dinar can only come in at a rate that the Iraqi economy can sustain, so they are limited on how high they can go, but what about a low rate? One of the continual arguments I have seen for a larger rate is that if it comes in too low, big investors will jump in. Why would this be bad for Iraq?

It seems to me that if they were to come in at a low rate on a managed float, this would be huge. I believe most “investors” are like me, I have a “sell point” were no matter what, if the Dinar hits that rate, I’m out. (for me 0.40) So let’s say the rate comes in between 0.50 and 1.00; a bunch of us “small” investors jump out, but a bunch of larger investors jump in. We cash out at the new rate, others buy at the new rate and it hasn’t cost Iraq a single Dinar. I understand that under normal circumstances this would cause a wild fluctuation in the exchange rate, but under a managed float would the rate not be stabilized by the CBI? After awhile the Dinar could be allowed to gradually increase to the preferred rate. During this gradual climb investors would be slowly cashing out as the rate hits what ever their “sell point” is.

It seems to me that under this scenario they could “pay” for the initial RV, and then slowly pay off the larger investors.

Please feel free to respectively shoot holes in my scenario, that’s why I’m asking the question.

[pop]

OK facts are they can't come out to low because the world traders would break them purchaseing huge sums because they know the real reserve value.

Second they can't come out to high because the balance of the scale would also bankrupt them so they have to be moderate n their decision and how they balance the value to accomplish their future plans.

Keep in mind they will have to Borrow trillions from the world bank to rebuild their Infrastructure. Their entire power grid throughout the country, Water sources for the country, Communications, Roads etc etc. To borrow from the world bank their currency has to be valued at a minimum of $1.53 so use your own imagination and deside what you predict it will be if the true reserve could support $11.00 .as has been stated by their leaders several times.

NOW OUR PART ???? JUST READ WHERE OF THE 86 BILLION LOANED TO THE AUTO INDUSTRY ALL BUT 17 BILLION WILL BE PAID BACK WITHIN THE NEXT 24 MONTHS. NOW OUR SOLDIERS HAVE PAID HUGE PRICES FOR US TO HAVE THIS GOLDEN ONCE IN A LIFETIME POSSIBILITY. NOW OUR PART IS THAT WE THE RETIRED MILITARY WHO SERVED AND ABSOLUTELY THE POPLE WHO HAVE NEVER SERVED NEED TO DO EVERYTHING IN THEIR POWER TO BUY AMERICAN PRODUCTS AND PUT THE AMERICAN PUBLIC BACK TO WORK AND AMERICAN COMPANIES BACK ON TOP OF THEIR GAME AS WELL. Blessing of Abundance to all, Rev Dan

[lumpsum]

Great Post Pop!

[4HisGlory]

Yes I agree that there is great importance for each and every one of us to be very responsible and the best managers with the abundance that we are about to reap!

To buy American would be a huge push for our economy! We have been and still are very blessed to be in this Great Country!!

thank you so much for this post and all of the uplifting attitudes in your responses. God Bless the World! Go RV!!!!!!!!!

Edited November 17, 2010 by 4HisGlory

[MovieMaker]

FANTASTIC VEIW POINTS BY ALL!

AND DIDN'T SEE ANY NEGATIVES, WOW, AWSOME!

WE DO LOVE EACH OTHER DON'T WE!

THANKS FOR THE TIME YOU ALL PUT INTO SEARCHING, GATHERING, POSTING, EXPLAINING, REPLYING ETC...

[tcat1]

Former oil banker/financial geezer here and ...jump in other financial/market experienced members.

Small players may think they will jump out first at the optimum value but that philosophy is wishful thinking. As you know significant positions will influence the fluctuation. Up ticks or down will be controlled by large bloc possession. This is why careful study should be taken in the substantiation of value for country assets such as oil reserves (anticipated appreciation in market control/ownership as well as price per barrel) in addition to other commodities estimated such as gold reserves. I know this is elementary to many. All the acronyms make for longer writing just explaining the meanings.

Trade imbalance (i.e. currency) should be particular to the Middle Eastern Blocs. Their currency basket should not be weighted upon countries outside the asset base of influence. It makes no sense and artificially influences the RV if it occurs. Thus rational analysis supports an RV north of 4.00 and reasonable at 5.72 due to Iraqs significant evolving market influence.

It is refreshing to think outside influence from partnering countries has assisted the nation of Iraq to take this giant step into the 21st Century. This step will aid in protecting our country in the fight to perserve freedom as we have known it. This will be a crushing blow to the socialist assault on our nation. They too will prosper from this revelation. Their coffers will be filled to begin the fight again. There are only lulls in the battle to maintain freedom from suppression.

[Blue-Duck]

Great comments from everyone is only lifting my spirit towards getting a good return. It's only been since 2008 that we have received this logic from news articles and getting the thoughts from the gurus and others with great brain power, so I can understand all of the seemly repeated questions from the Newbies to bring them up to speed and I gotta agree here with the rest of the dinar friends on the fact that Iraq is going to come out straight up with their currency value now that a government is established! This was an outstanding thread, with all of the positive comments! Applause to everyone! You guys take your bow!

[okane]

Good evening. There are quite a few great statements in this topic and I wanted to share my feelings based on common sense, prior news articles and Viper51's comment today. Viper51's comment was very accurate. I was not able to spend very much time on this forum today due to business obligations, but was able to make a few calls to a few friends and asked them for their comments.

I believe the budget is the second most important factor besides the formation of the government recently formed. I have no issues with the few extra days it is taking to do this right.

If you recall Scooter put together a very exceptional presentation in which Chapter II - Expenditure and disability outlined the exchange rate in that 2010 budget. I believe the primary reason that it never panned out was the lack of a strong government in place to execute and maintain it.

What that being said, it is extremely important to approve a budget that is accurate and inclusive of the new projected oil reserves and price per barrel. The release of this budget will lay the foundation for the economic success for Iraq for years to come and making a mistake now would or could be catastrophic.

I have been asked about the 2% every 90 days and I am still trying to find that. I can assure you it just did not pop into my imagination, but I did read those facts in print.

According to many contacts in which if they are on tonight will confirm that Shabibi has pushed for a value close to Kuwait or even a bit higher. I just checked and KWD is at 3.54610 just a moment ago. It was before I left my other office was at 3.55782, of if the new rate comes out at 3.55, this will give the 2% (.076) plus or minus adjustment will help maintain a currency balance.

I did a few quick calculations and according to the reserves and price per barrel of assets, a much higher rate could be supported.

It is my opinion that Shabibi was to see a managed float for a period of time close to the Kuwait Dinar. If and when the Iraq currency becomes a Basket Currency then its price will be driven by supply and demand.

With all of the positive statements my partners is hearing reflects some wanting Iraq currency to return to post Saddam rates.

Remember this topic is a round table discussion and I am in no way predicting any rate or date, but expressing my firm beliefs on experience and continued news articles that support my feelings.

My contacts seem to feel that the budget approval is a very high priority within the elements of tasks that need to be addressed and accomplished.

I do apologize for not spending more time here today but that was just not possible and thank Viper51 for an outstanding job in helping this DV family stay current.

My last comments is regarding a future conference call. The last call we did was a spur of the moment call because we happen to all be available to do it. This next call is a bit more complex due to everyone's schedule and I did hear from zzzzzzzzz and it is on the top of his list but also runs a very large business and has to address daily activities.

If there is anything I can do to help this DV family, I will be the first one to jump in line and try.

Our times are in God's hands; our souls are in His keeping.

God Bless all of you and thank you for letting me share my views.

Thank you for the insight. It is a very encouraging view. Thanks again for your time and effort. I hope that parts of this group stays together after the RV for other investing structures. This network is amazing

[ROACH]

Former oil banker/financial geezer here and ...jump in other financial/market experienced members.

Small players may think they will jump out first at the optimum value but that philosophy is wishful thinking. As you know significant positions will influence the fluctuation. Up ticks or down will be controlled by large bloc possession. This is why careful study should be taken in the substantiation of value for country assets such as oil reserves (anticipated appreciation in market control/ownership as well as price per barrel) in addition to other commodities estimated such as gold reserves. I know this is elementary to many. All the acronyms make for longer writing just explaining the meanings.

Trade imbalance (i.e. currency) should be particular to the Middle Eastern Blocs. Their currency basket should not be weighted upon countries outside the asset base of influence. It makes no sense and artificially influences the RV if it occurs. Thus rational analysis supports an RV north of 4.00 and reasonable at 5.72 due to Iraqs significant evolving market influence.

It is refreshing to think outside influence from partnering countries has assisted the nation of Iraq to take this giant step into the 21st Century. This step will aid in protecting our country in the fight to perserve freedom as we have known it. This will be a crushing blow to the socialist assault on our nation. They too will prosper from this revelation. Their coffers will be filled to begin the fight again. There are only lulls in the battle to maintain freedom from suppression.

Well written and appreciated.

[Dinerry]

SMILING BIG HERE!!! THANK YOU FOR THE POSSIBLE RV SPREAD!! Niiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiice!!!!!

Steve1:

" According to many contacts in which if they are on tonight will confirm that Shabibi has pushed for a value close to Kuwait or even a bit higher. I just checked and KWD is at 3.54610 just a moment ago. It was before I left my other office, was at 3.55782,or if the new rate comes out at 3.55, THIS WILL GIVE THE 2% (.076) plus or minus adjustment, will help maintain a currency balance. I did a few quick calculations and according to the reserves and price per barrel of assets, a much higher rate could be supported."

Read more:

I'M THRILLED!!!

3.22, or 3.54610, or 3.55782. or higher!?!?

GO RV!

[TBnhispower]

Yes because several asked that last night and it made me wonder how this was going to work so I had to make a few calls to have it explained to me. A few reply's up was how it was presented to me which makes perfect sense.

I feel much better now knowing how this works. It it now time to get it done asap.

God Bless.

And according to another guru (do not promote other sites) when it is all said and done it will end up costing Iraq approximately $160.00 per 10,000 dinars cashed in. Between this fact, and the ceiling price the USA has supposedly negotiated with Iraq, billions will be able to pay for trillions. Amazing stuff!

Wow I did not know that. I can see now why this budget is so important to do it right the fist time because it will lay the foundation for the future Iraq's giant success!

You guys are so awesome. Thank you. You guys also bring so much valuable information to this forum and that is what makes be proud to be a part of it.

God Bless all of you.

I have also read that they have a substantial amount of gold, diamonds and even some rubies (not sure what this is worth). However, when you add it all up it's a significant amount of income.

[ECSxFenrir]

But doesn't Iraq have to have an equal number of US dollars in their reserves to cash-in the investors. Let's say there's, for argument's sake, 5 Trillion IQD outstanding. If the rate came in at $3, wouldn't they have to have 15 Trillion US dollars to cover that? When they only have a yearly economy in the billions, I don't see how that's possible.

I'm still under the impression that our cashed in dinar goes into the US treasury which will be used to buy oil bonds and whatever leverage with Iraq or around the world. With that assumption Iraq doesn't need said amount for us to cash in.

Steve, I appreciate all your advice and input!!! I remember reading here on DV that 3/4 of the US currency is outside of the US in other countries reserves... With that thought if the US RV that does not mean that all the dollars will be returned and exchange. So when we see the Dinar RV not all Dinars will be rush back to Iraq for an exchange for Dollars. As i understand the Dinars here in the US with 000's would go to the Federal Reserve to either be destroyed or used for the purchase of oil. It would be nice to know for sure how this will go down. Does anyone really know??? Thanks in advance for your input! GO RV!!!!!!!!

Thank you! I was starting to think I was crazy, I couldn't find anyone else who thought the something. I guess tue next question will be how will the US foot that bill. Not going to take an IOU from the US lol

Answer in my mind is alsmot half of it will go back to the Feds in taxes, the national debt is lessened or almost forgiven and the private citizens are blowing through a majority of the worlds resources again.

[dinarokie]

Because george soros wants it to RV high....lol

dinarokie want it to rv period lol ...

[bsolace]

They have to get the LARGER denominations off the market ASAP - the one's with 3 zero's to be specific... Think Re-denomination, something that happens in an RV scenario and that has been discussed on the forum. Having large bills on the market makes doing business casually more difficult - people have to have a larger range of denominations for those that may present a larger "Zero'd" note. Some businesses may state they will not accept notes with more than two zero's for example. Just like a pizza joint in the United States saying they don't accept $100 dollar bills - it's just too taxing and risky on the smaller cash they need to keep on hand - basically changing people's purchases - not handing them large sums of cash that present themselves with "random" customers.

So they first will want to encourage people (can be done MANY ways - for example a deadline or date you have to cash the large denominations in by before they become worthless in value) to "cash-in" on their dinar holdings if they are holding larger denominations. They will essentially "buy" these off the market and will get these notes back in their hands in Iraq and not in general circulation. They could also institute an easier "trick" to encourage people by saying you have to trade larger denominations in directly with specific banks - therefore they don't need to establish a DEADLINE from the start they just point people in the right direction.

Bottom line is they will NOT want to value their currency much less than say the Kuwaiti Dinar - for several reasons. Having a similar value to Kuwait for example, would ease "business" between the two nations. It would also add stability to both countries currencies - less likely they would be affected in a (Global) currency war for example. Anything less than "par" for that region of the world and they will have a TON of foreign speculation on mainly their currency (Yes, people will invest in other things, but currency is more damaging to them). It's like knowing an investment had a high certainty to go up 20% a year for many years to come - who wouldn't at least buy a few "shares" or in this case - own some of the foreign currency in their "basket" of Investments.

Some say they would sell at .50 USD/ 1 Iraqi Dinar... well I'll tell you there are probably a few more people for eveyone of those people that would "sell" at that rate on here that would gladly "cash in" and then jump on forex, etc and buy a percentage of their "cash" in their savings with more Iraqi Dinar if it's still at a low rate like that... Regardless, the cat will be out of the bag and everyone and their unborn kids will be investing in SOME of it.... unless they can't afford it - which could be because it has a higher value (several times one unit of their currency for example)...

Just my .02

- Fresh

What would keep the iraqi people from depositing their cash into a bank rather than trading it in. Some might have millions in the bank and and when the new denominations are introduced, will they still have millions?

Edited November 17, 2010 by bsolace

[hfdmedic]

WOW

Ask a simple question and..........

If I had known I was going to get such great responses I would have asked weeks ago.

THANK YOU ALL for the information.

[Trigger67]

Here is the Part I and Part 2 from the Economist from about 6 months ago - this is a GREAT read. I have saved it as a Word document to pass along to friends and family.

Peace! ReachingHigher

**

Economist Explains How The Plan To Have The IQD RV at 1 IQD = $1 USD Should Work!

Part 1

--------------------------------------------------------------------------------

In our 40+ year career as a Retirement Consultants we have been blessed to meet some very talented professionals. One of them is a retired State Dept. economist who introduced us to the IQD investment in 2005. He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.

He had originally indicated that the plan was for the IQD to achieve financial parity with the USD over a 7-10 year period from the introduction of the new system. At that time the USD’s use would be completely discontinued and it would be replaced by the IQD for in-country use and international exchange. The variable factor in the timetable would be the political environment.

I visited with him recently and got an update on several issues:

(1) He indicated the original time table was proceeding on a fast track due to the financial management skills exhibited by the CBI and the Finance Ministry in (1) controlling the rate of inflation, (2) controlling the value of the IQD in a declining economic environment and (3) implementing a digital banking system both internally and externally, but the variable was still the political environment.

Like most economist he doesn’t talk in absolutes (i.e. rate/date) but in probabilities. His knowledge base is pretty current since he is still part of a subsection of the original group that Iraq, State Department and IMF financial people bounce things off of.

(2) We raised the issue of the large number of IQD reported as being in circulation (current estimates are at 25 Trillion). He indicated this was mostly made up of (1) in country physical currency, (2) the foreign currency reserves of the central banks around the world which are electronic, (3) currency that had been printed but not released (i.e. small denomination bills) and (4) privately held physical currency sold to increase the foreign currency reserves.

The export oil revenues are still under the control of the UN supervised DFI, and Iraq only gets roughly 30% of the fair market value of the oil they are selling, which is to be used only for budgetary expenditures. Since Shabbi, the head of the CBI, knew he couldn’t get anymore cash flow out of the controlled revenue system the IMF/UN had him under, he opened a currency sales window at the daily auctions to tap into the wallets of the worlds speculators. Worked pretty good, since he’s built his foreign currency reserves to over $50 billion USD.

(3) We then moved to the removal of big bills (the ones with the 3 zeros on them) and he said that this activity was always built into the plan. The activity was to begin as soon as Iraq had implemented a modern digital financial system (i.e. bank branches, credit/debit cards, ATM’s, direct wire transfers etc.). The removal of the large bills in-country would be the reverse of the process that was used to remove the pre-2003 currency with Saddams picture on it. The example was a 25,000 IQD=$25USD/pre-rv note would be brought into the bank and exchanged for a 25 IQD note=$25 USD post/rv. The 25,000 IQD note would then be destroyed removing it from the currency in circulation account. I told him a lot of people would call that a LOP and he laughed, saying they are partially right, because 25,000 IQD was being lopped from the currency in circulation account, but the only reason for this process was to improve money handling ability at all organization levels, and reduce the actual physical currency in use in all areas of the Iraq economy.

Interestingly enough, he said this activity could happen in-country without an approved RV rate being released to the International financial system. I asked how much physical IQD did he estimated was in circulation in-country, and he said probably less than had been originally introduced in 2003 which was about $4.5 billion USD worth at an exchange rate of 2000 IQD = $1 USD, because there has been a continuous process of not replacing the larger bills as they wore out. In fact this has resulted in currency shortages in some areas.

(4) The next obvious question was how would the removal of the large bills with the three zeros work outside of Iraq, because of the number of world speculators holding IQD. He indicated, the amount of IQD held by speculators was relatively minor (less than 10%) compared to the IQD held as foreign currency reserve by the central banks of a number of major countries (US, China, England & France were the largest) with major financial interest in Iraq. He didn’t have an exact estimate of speculator holdings but ventured an educated guess of 750,000 individuals worldwide with the majority in the US. Estimated value of their holdings $1.5 Trillion – $1.7 trillion IQD.

Economist RV Explantion – Part II

(5) Before discussing the planned process of how currency exchange would take plan after the IQD was released as an international tradeable currency, he asked if I remembered my economics 101 and what the real purpose of currency is? Yes teacher I replied, it’s a medium of exchange that facilitates the orderly distribution of goods and services among individuals, companies, country’s etc. The often used example, is the use of currency allows an automobile dealer to exchange a new mustang GT (composed of many diverse parts each with its own individual market value) for the cash down payment + bank financing check of a proud new owner, and each has received equal market value at the moment of exchange.

This is an important concept because the value of a particular currency may be defined by the value of what the currency can be exchanged for, instead of the usual underlying economic indicators.

The complete discussion was rather lengthy so here’s the executive summary of how the exchange should work with IQD owned by a US speculator:

(1) IQD is released internationally with an exchange rate of $1 USD = 1 IQD

(2) IQD is exchanged by Mr. & Mrs. X at Bank Y. Their exchange value is credited to their designated financial account, Bank Y forwards the IQD currency to the Federal Reserve and Bank Y’s account is credited at the bank private exchange rate. Yes, the banks will have a private rate and then they will add their profit spread to come up with their public rate. By law this bank spread could be as high as 8%, but it will be a competitive marketplace and the banks know investors will shop around. There is a possibility that there might even be a three rate structure (i.e. Treasury Rate – Bank Private Rate – Bank Public Rate) imposed, but he had no input on that subject.

(3) The Federal Reserve adds the value of the exchanged IQD to their foreign currency reserve accounts and destroys the actual physical currency under agreement with the CBI, which serves to reduce the total IQD physical currency in circulation. This build up of the foreign currency reserve accounts serves to strengthen the USD in the marketplace, because heretofore the US has never held significant foreign currency reserves, because there wasn’t any country whose currency was perceived as being equal to or stronger than the USD. The IQD with it’s commodity (oil+others) base, potential for agriculture growth and aggressive private development growth, has the capability to become the most valuable currency in the world in the 10 years after it’s revaluation and approval as an internationally recognized currency. Other countries have lots of oil, but they can’t feed themselves, they operate under a monarchy or religious tribunal and they have no private development system in place.

(4) Mr. & Mrs. X tithe to their church, local charity etc. which stimulates activity in that sector. They pay off their debts, making currency available for re-lending by their creditors. They buy a new house and car which stimulates their local economy and set up a conservative investment portfolio which adds capital to the investment markets. They also pay their estimated taxes which increases the cash flow to the US Treasury.

(5) The Federal Reserve under a controlled redemption plan supervised by the IMF, will use it’s foreign currency reserve IQD account to buy oil for the national strategic reserve, DOD reserves, other country reserves as part of international support agreements or resell it to private oil companies etc.

This gives the Federal Reserve a powerful market force capability to control the supply/price of imported oil which has far-reaching economic and national security implications.

The economics of this scenario look like this, using the exchange of a 10,000 IQD Note with a two-tier 2% bank exchange spread as an example:

(1) Mr. & Mrs. X get $9,800 credited to their non-interest bearing checking account.

(2) Bank Y gets a $10,000 credit to its Federal Reserve account, and by adding the $200 profit to their capital account, allows them to increase their lending cap by $2,000 under the 10% fractional banking model.

(3) The Treasury gets $3,500 in estimated taxes in the quarter after the exchange, because Mr. & Mrs. X are now in the “rich” category and get to enjoy the 35% tax bracket. This lowers the net cost of the IQD exchange to the US financial system to $6,500 USD (i.e. $10,000 out – $3,500 in).

(4) The Fed’s designated agent, at some point, orders $10,000 worth of oil from Iraq. Payment will consist of a 10,000 transfer from the Fed’s foreign currency reserve IQD account to the IRAQ Oil payment account at the CBI. Even though the world spot price of oil is defined in terms of USD, the actual transaction may take place in any internationally recognized currency agreed to by the parties. For example, Iran only accepts Yen from Japan for their oil orders, because they don’t want USD in their foreign currency reserves.

(5) The $10,000 order is filled with 200 barrels of oil based on the spot price on the date of the sale (for this example we used a $50 USD spot price). What does it cost Iraq to produce the oil to fill this order? Well they have negotiated productions agreements for $1.50 USD/barrel. From that price $.50 USD goes to the national Iraqi oil company who is the partner in the field the oil came from. Out of the remaining $1.00 the other oil field partners have to pay the Iraq government a profit tax of $.35 USD (35%). The net cost to Iraq to produce a barrel of oil used in this scenario is $.65 USD. (i.e. $1.50 – .50 – .35)

(6) The transaction is completed with the Federal Reserve exchanging foreign reserve credits which are equal to 10,000 IQD (which had a net acquisition cost of $6,500 USD) for 200 barrels of oil (which has a net cost to produce of $130 USD.

Simply put, it cost Iraq $130 USD from their foreign currency reserve accounts to redeem the value of 10,000 IQD, which goes into their operating accounts. At the same time the US got $10,000 worth of oil for a net cost of $6,500. That’s how it was originally planned for Iraq to RV at 1 IQD = 1 USD, with the variable being the political element (i.e. UN Sanctions, GOI actions, IMF actions, World Bank actions etc.)

Now let’s really stir the pot by:

(a) Having the DFI ($280+ Billion USD) plus other frozen assets (estimated at $100 billion) turned back to Iraq and added to their foreign currency reserve, bringing it up to $430+ billion USD.

( Then change the current fractional IQD reserve requirements of 100% to 15%. That just raised the total potential money supply value to $2.8 Trillion (430 billion/ 15), while at the same time the total physical IQD in circulation is being reduced by removing the large bills with the 3 zeros.

© Also execute the plan Iraq announced to increase oil production from 2+ million barrels/day to 10 million barrels/day with the resulting revenues flowing directly to the Iraq treasury.

(d) To add a little more intrigue have the CBI continue to use it’s sales window to market oil futures and forex contracts. They have shown they can generate significant cash flow in the private market, think of their impact in public markets.

We leave it to your analytical ability to determine how high of an RV exchange rate IRAQ can really support. There is strong political pressure to set the initial rate at $3.22 USD = 1 IQD, so it can be proclaimed that IRAQ has moved back into the International community of nations and has re-established it’s currency at the internationally traded rate in effect before Saddam invaded Kuwait in 1990.

Frank26 believes the rate will be $3.21+ as I remember, which is suggested is the same exchange rates cabinet ministers reportedly used to project the 2010 budget.

VERY INTERESTING!

Disclaimer – no one knows what the revalue rate (or reinstatement rate) will be though may have their opinions and ideas on this subject. Never invest more than you can afford to lose. This IS a highly speculative investment.

[Floridian]

I have a question:

A friend heard that when countries forgave Iraq's debt, they demanded that the RV/RI be done by the end of the year (12/31/10). Has anyone else heard of this timeline? Is it true?

[ECSxFenrir]

EXACTLY!!!

I'm a compete noob at politics and economics. I stick to m field human relationships, so please someone shine the light on the path if you see me astray.

How does "credit" of the other surrounding countries going to play into the rate? I feel on a basic lvl explained by what affects rates on the 4X is the surrounding countries and the basket. Straight to the point all the other neighbors are fairly stable until you look at Iran. Not only the political tension with the world but I know for a fact (dealing with China Petro) that China and Japan are pulling out of Iran like a guy who doesn't want kids from the chick he just met at the bar. Will Irans business lower the RV and long term rate of Iraq?

A difficult question that requires someone to peer into the future.

[dravmorris2]

Great one, POP....................

I am with you on that one. We should all do whatever we can to help this great country of ours, to get back on their feet. And back out front, "WHERE THEY ALWAYS BELONG"!!!!

I am sooooooooooo excited, I had to use my inhalor.................! I was hyperventilating!!!!!!!!!!!!!!!!!!!

"IT'S GETTING TO FEEL ALOT LIKE CHRISTMAS..........................." SING ALONG, LOUISE~~~~~~~~~~~~~~

dravmorris2

"GOD BLESS US, ONE AND ALL,.........................AND GOD BLESS AMERICA............................AND OUR MEN AND WOMEN OF THE ARMED FORCES!!!!!!!!!!!!!!

[Floridian]

Please..............does anybody know the answer to my question above?

[hfdmedic]

Please..............does anybody know the answer to my question above?

Floridian: it is so far down on this line that most may not see the question. Start a new topic under this heading and I'm sure you will get some answers. If you get some negative responses do what I do; slap a (-) on them and ignore it

I have not heard this rumor about the end of the year.

[hrdbawl]

Floridian...I recall something to that affect as well, but don't have a link. However, even better, Shabibi (the head of the CBI) has made it clear numerous times that he wants this done by end of 2010. I'd tank that to the bank on top of the massive fund that sits their worth a couple hundred billion that will be Iraq's once they finally RV and lift sanction 7. Hope that helps.