saddams exchange rate

[bfeller]

Saddam’s Exchange Rate

One of the most commonly quoted facts is that the exchange rate under Saddam Hussein was one Iraqi Dinar for three US dollars. That is true, as far as it goes, but here is the catch. Saddam Hussein himself personally set that exchange rate. He could have said, “One Iraqi Dinar buys 20 US dollars”, if he had wanted to. Just because that was the official exchange rate, doesn’t mean that is what people were actually trading it for. The old Iraqi Dinar could not be freely traded on the world market, so this exchange rate was essentially meaningless. This rate was only open to those who were close to Saddam.

[tkc]

Good post

[DmsC]

Saddam’s Exchange Rate

One of the most commonly quoted facts is that the exchange rate under Saddam Hussein was one Iraqi Dinar for three US dollars. That is true, as far as it goes, but here is the catch. Saddam Hussein himself personally set that exchange rate. He could have said, “One Iraqi Dinar buys 20 US dollars”, if he had wanted to. Just because that was the official exchange rate, doesn’t mean that is what people were actually trading it for. The old Iraqi Dinar could not be freely traded on the world market, so this exchange rate was essentially meaningless. This rate was only open to those who were close to Saddam.

Good point how ever it isn't a "news" item. Also the Dinar before Iraq was under Saddam control was over 3 dollars as well. So it does have some merit that it could go back to there. For one I'm not betting on a over 3$ but it would be a nice thing if it happened.

[doc9574]

actually if you look at the history of the Iraq currency it was at or above the US $ for most of the time sine it has been in existence

[Motorco]

True, for any comparison you need to go back to pre-saddam rates

[DinarSeeker]

Kuwaits oil is tied to Iraqs oil too. Kuwait needs Iraq to come in at a respectable number to keep checks and balances in order. If the USA and Mexico shared oil, do you think it would be good from an export position with the dollar to the peso margin being so offset? Iraq is *not* accountable to OPEC. Occam's Razor my friends, there has to be reason and common sense too.

[optimistic]

Saddam’s Exchange Rate

One of the most commonly quoted facts is that the exchange rate under Saddam Hussein was one Iraqi Dinar for three US dollars. That is true, as far as it goes, but here is the catch. Saddam Hussein himself personally set that exchange rate. He could have said, “One Iraqi Dinar buys 20 US dollars”, if he had wanted to. Just because that was the official exchange rate, doesn’t mean that is what people were actually trading it for. The old Iraqi Dinar could not be freely traded on the world market, so this exchange rate was essentially meaningless. This rate was only open to those who were close to Saddam.

Some months ago, I had a long discussion with the Head of the FX Office at Wells Fargo. At that time he told me (one of their Private Banking clients) to cash in my IQD for USD ASAP, as there was no chance of making a dime on this investment. Two weeks ago, I spoke to him again, and asked him if his opinion had changed given the recent developments in the formation of the government. He said "absolutely not" - get out while you can still get most of your money back. The reason? He said that any RV will be internal only - as it was in Saddam's era. He said that there is simply NO global confidence in the stability of Iraq that would cause the major money players to buy IQD, and further - that they are years if not decades away from having the infrastructure that would allow global trading.

I told him that if he is wrong - he will lose me as a client. He said that after corporate officers like himself met with major FX offices at all major banks and money manager entities - they all agree that an RV in which anyone outside of Iraq can make money - is impossible.

Please don't shoot the messenger (me). I am holding on but am prepared to be devastated if his predictions become my reality.

[gator12]

you can sell back now but as for me im holding i cant bear the thought of selling and then the rv happens try telling your grandkids about that one

[tomcat]

Some months ago, I had a long discussion with the Head of the FX Office at Wells Fargo. At that time he told me (one of their Private Banking clients) to cash in my IQD for USD ASAP, as there was no chance of making a dime on this investment. Two weeks ago, I spoke to him again, and asked him if his opinion had changed given the recent developments in the formation of the government. He said "absolutely not" - get out while you can still get most of your money back. The reason? He said that any RV will be internal only - as it was in Saddam's era. He said that there is simply NO global confidence in the stability of Iraq that would cause the major money players to buy IQD, and further - that they are years if not decades away from having the infrastructure that would allow global trading.

I told him that if he is wrong - he will lose me as a client. He said that after corporate officers like himself met with major FX offices at all major banks and money manager entities - they all agree that an RV in which anyone outside of Iraq can make money - is impossible.

Please don't shoot the messenger (me). I am holding on but am prepared to be devastated if his predictions become my reality.

If this is true, then the european union ( Ireland, Portugal and possibly Spain bankruptcies; Check out all the news sites, I did) along with the rest of the world is going into further recession. No wonder China and Russia are separting themselves monetarily from the rest of the world

What I question from the FX managers comments is when the IMF, UN, WTO are working on Iraq so hard and CNBC is now stating that investment in Iraq is the thing to do would he say " Absolutely not", it doesn't make sense since it would be a long term investment anyways and as long as Iraq is developing their currency will develope also. common sense

[Tiffany23]

Some months ago, I had a long discussion with the Head of the FX Office at Wells Fargo. At that time he told me (one of their Private Banking clients) to cash in my IQD for USD ASAP, as there was no chance of making a dime on this investment. Two weeks ago, I spoke to him again, and asked him if his opinion had changed given the recent developments in the formation of the government. He said "absolutely not" - get out while you can still get most of your money back. The reason? He said that any RV will be internal only - as it was in Saddam's era. He said that there is simply NO global confidence in the stability of Iraq that would cause the major money players to buy IQD, and further - that they are years if not decades away from having the infrastructure that would allow global trading.

I told him that if he is wrong - he will lose me as a client. He said that after corporate officers like himself met with major FX offices at all major banks and money manager entities - they all agree that an RV in which anyone outside of Iraq can make money - is impossible.

Please don't shoot the messenger (me). I am holding on but am prepared to be devastated if his predictions become my reality.

Thank you for sharing...this is why rational people aren't rushing into this investment....it's high risk...and now you've posted info that we may not get our money back at all..it's even higher. From my research (including graduate level economics/banking theory) currency value boils down to two things: money supply and the prospects of future goods and services that the country can produce. Everyone seems to be targeting the second part of the equation, that Iraq has HUGE oil reserves. But your posts points out that many investors don't believe the infrastructure will be there to get it to market for a long long time.

While all along, I've been applauding those who bring up the vast change in the money supply since the takeover. I haven't expressed my skeptical thoughts, as I've been trying to weed out the info regarding them pulling in the trillions that were released. I still have problems getting my mind wrapped around what a trillion is.

Anyway, like you, I don't want to rain on anyone's parade, but I'm trying to check my emotions at the door and rationally make a determination what the risk is for this investment.

Again, Thanks for the info!

[Floridian]

Some months ago, I had a long discussion with the Head of the FX Office at Wells Fargo. At that time he told me (one of their Private Banking clients) to cash in my IQD for USD ASAP, as there was no chance of making a dime on this investment. Two weeks ago, I spoke to him again, and asked him if his opinion had changed given the recent developments in the formation of the government. He said "absolutely not" - get out while you can still get most of your money back. The reason? He said that any RV will be internal only - as it was in Saddam's era. He said that there is simply NO global confidence in the stability of Iraq that would cause the major money players to buy IQD, and further - that they are years if not decades away from having the infrastructure that would allow global trading.

I told him that if he is wrong - he will lose me as a client. He said that after corporate officers like himself met with major FX offices at all major banks and money manager entities - they all agree that an RV in which anyone outside of Iraq can make money - is impossible.

Please don't shoot the messenger (me). I am holding on but am prepared to be devastated if his predictions become my reality.

He's not taking into account all the countries that have forgiven Iraq's debt. What about all the American businessmen that have signed contracts with Iraq to do business there? What about the rates on the money of all the other OPEC countries? I think that guy would lose me as a client right now. I wouldn't want to wait to prove him wrong.

[Frank61]

Saddam’s Exchange Rate

One of the most commonly quoted facts is that the exchange rate under Saddam Hussein was one Iraqi Dinar for three US dollars. That is true, as far as it goes, but here is the catch. Saddam Hussein himself personally set that exchange rate. He could have said, “One Iraqi Dinar buys 20 US dollars”, if he had wanted to. Just because that was the official exchange rate, doesn’t mean that is what people were actually trading it for. The old Iraqi Dinar could not be freely traded on the world market, so this exchange rate was essentially meaningless. This rate was only open to those who were close to Saddam.

That is true, but the IQD was still worth .50 - 1.00 to the USD.

[Floridian]

Besides, if you are already a "private banking customer", why would you be devastated? I'm sure you have plenty of other means.