Why an RV similar to Kuwait is not probable!

[TennesseeCherokee]

Like many of us, I believe that the IQD will re-value at as high a rate as Shab knows the government can afford. The higher the rate is, quicker the country will rebuild & will quickly attract more investing from outside sources.

[keepmwlknfny]

Like many of us, I believe that the IQD will re-value at as high a rate as Shab knows the government can afford. The higher the rate is, quicker the country will rebuild & will quickly attract more investing from outside sources.

While I agree that Shabs will only go as high as their economy can support, you must understand that even a huge jump to around a dollar will likely jack up inflation which is his number one goal.....a high rate will not necessarily bring all the outside sources in.....stability is the number one factor that needs improvement....they arent sitting back waiting for a RV before they jump in....they are waiting to see that the new govt and the country can actually run itself with no major issues....their future is very uncertain at this point.....and you must remember that foriegn investors will most likely not be getting paid in dinar either....they will be getting paid in that countries respective currency.....

[MrRich]

While I agree that Shabs will only go as high as their economy can support, you must understand that even a huge jump to around a dollar will likely jack up inflation which is his number one goal.....a high rate will not necessarily bring all the outside sources in.....stability is the number one factor that needs improvement....they arent sitting back waiting for a RV before they jump in....they are waiting to see that the new govt and the country can actually run itself with no major issues....their future is very uncertain at this point.....and you must remember that foriegn investors will most likely not be getting paid in dinar either....they will be getting paid in that countries respective currency.....

True keepm. We just got another report of police recruits killed in a bombing in Tikrit. The goal was to bring instability. As long as things like this are happening foreign investors are going to be nervous about putting their money into Iraq.

Edited January 18, 2011 by MrRich

[imgesing]

I believe that based on IRAQI's current status within the Arab nations they will want to be as close to KUWAIT and other surrounding countries in order to promote trade and to build up their country globally. They want trade and oil export build up. That is what seems to make sense to me. I have also wondered how they will pay it out if they RV? I have to think that they are crunching many numbers as we sit here and type our unknowing oppinions. But they have much more oil reserve then KUWAIT or any other country. WHich is why I believe we ultimately went to war there and we arent flooding DARFUR right now. There was and is a HUGE vested interest by the USA and CHINA and any other nation. They have the goods we all want. BUT they need to kick up their economy to make the standard of living easier for the people there. 50K dinar (or what ever it is) for a coke can is not going to work out... The people there are in trouble. SO It seems to me based on what I read that something substancial will be forth coming.

Maybe I am just too optimistic but it is also fun thinking we will all do well.

Go RV or RI...

[jmac8862]

Everyone is bringing a lot of good oppinions to the table, which is why these forums are created. All of the info stated helps each and all investors who read these posts make calculated decisions on if or how much to invest. Some are willing to take greater risks to hopfully get bigger returns. some might dable lightly so if it doesn't pay off they will lose less money but stand less to gain if it works. It's all in how we allow ourselves to perceive the info that has been put on the table. All I can say in my opinion everyone has to calculate their own risk and go from there. Sometimes not reading what we want can upset us but we also have to step back and say what if. As many have said only invest what you can afford and carry on with your lives until it happens. Good luck to all. and go RV. Thankyou to all posts

[jayd]

CBI has said they intend to lop 3 zeros and make 1000 old IQD = 1 new IQD and the rate will be around 1.12 which makes the 25000 iqd we now hold worth about 28.50 usd after the lop/rv

[Slaydadea]

Well written piece of work. Thank you for your opinions.

[BiGGI3]

I am glad to see we have alot of RV specialists.... From me doing my own reading and research anything is possible..

(I believe its going to be more then $3) Thats just my 2 cents and Opinion...

[dinardlee]

I agree with the OP on many points he made. I've read the forums for a while, and people really don't like to hear any sort of negativity (I call realistic).

Someone has mentioned these intel at retail bank branches. Let me tell you something, people at the retail bank do not know ANYTHING period.

No offence to anyone working at the branch level, but in the world of finance, branch banking is the lowest of the totem pole. And do you honestly think an information of this magnitude will some how reach a branch manager? or a teller? come on now...

RV is likely inevitable, but as someone mentioned above me, it all depends on the stability of their economy and government.

[Danneedsrvnow]

The best case senario is that you will be able to exchange your old IQD's for the new ones at banks here in America, otherwise the dinar sellers will profit greatly when they charge you to exchange your old dinars for the inevitable new ones that will be issued with much lower denominations! I do believe there will be an RV but it will not be anywhere near the value of the KWD but its possible it could RV close to the Bahrain Dinar which is .3770 cents to 1USD. But it will take time and it probably won't hit that level until the old dinars are out of circulation! If you think it can happen another way you just don't understand the basics of economics, math and currencies.

Sources; Central Bank of Iraq, CIA World Book of Facts and Wikipedia

Maybe someone can help me out on this.......everything else in the post sounds plausible, excluding the above.

He is mentioning going to our banks & exchanging for the "new" notes (small notes), to bring the big bills back in country & out of circulation. With that said, how does that even make sense? When we cash out post rv, we exchange our big bills for USD, thus elimination the process of exchanging to the small bills first.....to me this makes the most sense. Furthermore....with his thinking, wouldn't exchanging out big bills for the small bills be in turn causing a heck of alot more in circulation than just exchanging our big bills for USD? So if we are to believe investwisely's theory....just one $25.000 dinar bill, we would get back 25.000 dinar bills? Am I missing something? To me, the only way to eliminate all the bills in circulation is post rv....we get back USD & the dinar goes back to them, they then destroy the bills. I still stand by my original thinking, that the small bills are NOT intended for us......ONLY in their country!!

I do however think his figure of 37 cents is more convincing than all the foolish gurus' predictions, although I do hope for more!!

Dan