The dinar is not worthless!

[Networth]

One of the reasons I've heard that Iraq intends to revalue the dinar is because it is considered "worthless". I don't know exactly what people mean by this but I assume that they are referring to how many units of Iraqi currency can be exchanged for one unit of our currency. But what is worthless? 1 for 5? 1 for 100? 1 for 1,000? As everybody knows, we can currently exchange 1 dollar for about 1,170 dinar. But why is this consider worthless? We can also exchange 1 dollar for about 1,200 South Korean won. Yet the won is not considered a worthless currency and South Korea is considered a developed, first world country with one of the higher standards of living in the world. Granted, it takes many more won to purchase an item than it would if it was priced in dollars. But that doesn't matter. It's only a relative comparison. There are many things that effect an exchange rate. I'm not a macroeconomist but it may be that there are simply more won in circulation compared to the GDP of South Korea than there are dollars in circulation compared to the GDP of the US. Their GDP is diluted into more units of currency. But, as far as I know, South Korea has no plans to revalue their currency for the sole purpose of changing the exchange rate. In my opinion, the exchange rate is an irrelevant and unhelpful measure of the worthlessness (or value) of a currency and in trying to figure out why the dinar might revalue. If Iraq's GPD increases (as I think it is likely to do) and the CBI is responsible about the number of additional dinar they release into circulation, it seems to me the dinar is likely to appreciate in value. That may disappoint many people if it ends up being a slow, deliberate, methodical increase and not the sudden, overnight RV that many are expecting, but it is OK with me. It's still a better investment than holding US dollars.

[speedy1]

You are A scholar no dought! lol

[johnfagan]

One of the reasons I've heard that Iraq intends to revalue the dinar is because it is considered "worthless". I don't know exactly what people mean by this but I assume that they are referring to how many units of Iraqi currency can be exchanged for one unit of our currency. But what is worthless? 1 for 5? 1 for 100? 1 for 1,000? As everybody knows, we can currently exchange 1 dollar for about 1,170 dinar. But why is this consider worthless? We can also exchange 1 dollar for about 1,200 South Korean won. Yet the won is not considered a worthless currency and South Korea is considered a developed, first world country with one of the higher standards of living in the world. Granted, it takes many more won to purchase an item than it would if it was priced in dollars. But that doesn't matter. It's only a relative comparison. There are many things that effect an exchange rate. I'm not a macroeconomist but it may be that there are simply more won in circulation compared to the GDP of South Korea than there are dollars in circulation compared to the GDP of the US. Their GDP is diluted into more units of currency. But, as far as I know, South Korea has no plans to revalue their currency for the sole purpose of changing the exchange rate. In my opinion, the exchange rate is an irrelevant and unhelpful measure of the worthlessness (or value) of a currency and in trying to figure out why the dinar might revalue. If Iraq's GPD increases (as I think it is likely to do) and the CBI is responsible about the number of additional dinar they release into circulation, it seems to me the dinar is likely to appreciate in value. That may disappoint many people if it ends up being a slow, deliberate, methodical increase and not the sudden, overnight RV that many are expecting, but it is OK with me. It's still a better investment than holding US dollars.

Well stated. Personally I think the possibility of the Dinar never revaluing still exists.

[Nani?]

Well stated. Personally I think the possibility of the Dinar never revaluing still exists.

and your in this investment becaaaaaaause? I understand the poster's point and it makes sense except for the fact the Shabs has said he wants to raise the value of the dinar, sooooooo I'm going to take his word on that and keep looking for the RV to happen. IF the dinar were to slowly appreciate I don't think that would help their situation at all because then people would be buying it like crazy because of speculation. The fact that they want to redenom tells you that they want to revalue... and that the want to get their rate back to the pre sadaam rate more sense. This rate their currency is at is not the norm for them, and since that is their goal then I would think a revalue just goes hand in hand with them forming the gov and getting back on the international stage.

[AudiS4]

Not to mention if the currency was internationally traded at the current rate... it would SKYROCKET. It's clearly undervalued and would get pushed up relatively quickly. Not $3.22 high, but much higher than $1:1170

I really think it's best for them to shoot for as close to where they think it will stabilize as possible. They have two options:

1) Pay speculators (maybe 1M of us to guess on the HIGH side)

2) Pay investors once it's released (easily MORE than 10M people worldwide)

surprise attack or ambush fail... they get to choose

[Networth]

and your in this investment becaaaaaaause? I understand the poster's point and it makes sense except for the fact the Shabs has said he wants to raise the value of the dinar, sooooooo I'm going to take his word on that and keep looking for the RV to happen. IF the dinar were to slowly appreciate I don't think that would help their situation at all because then people would be buying it like crazy because of speculation. The fact that they want to redenom tells you that they want to revalue... and that the want to get their rate back to the pre sadaam rate more sense. This rate their currency is at is not the norm for them, and since that is their goal then I would think a revalue just goes hand in hand with them forming the gov and getting back on the international stage.

As I said, I consider it better than holding US dollars. I believe it will appreciate, albeit over a much longer time frame than many are expecting.

Keep in mind the dinar has not been an internationally reconginized currency for nearly 40 years. The rate during the Sadaam years was not determined by the market. It was set by Sadaam. It did not freely trading in foreign currency exchange. I don't think that is a good basis for everyone to use. When Shabbibi has stated that he intends to increase the value of the dinar, it certainly doesn't mean it will be a sudden, overnight RV. It could very well mean an eventual, deliberate increase fueld by GDP growth. I don't know (obviously) but I think people read too much into statements sometimes based on what they WANT rather than what seems most likely.

[BANE]

As I said, I consider it better than holding US dollars. I believe it will appreciate, albeit over a much longer time frame than many are expecting.

Keep in mind the dinar has not been an internationally reconginized currency for nearly 40 years. The rate during the Sadaam years was not determined by the market. It was set by Sadaam. It did not freely trading in foreign currency exchange. I don't think that is a good basis for everyone to use. When Shabbibi has stated that he intends to increase the value of the dinar, it certainly doesn't mean it will be a sudden, overnight RV. It could very well mean an eventual, deliberate increase fueld by GDP growth. I don't know (obviously) but I think people read too much into statements sometimes based on what they WANT rather than what seems most likely.

If it is what you say then the entire world is screwed. They are depending on this RV. It could wipe out all debt. Without it the entire monetary system is going to collapse. So really I think you are wrong.

[On_Reserve]

" ...and your in this investment becaaaaaaause?"

Um ... even though the possibility does exist that it may never revalue. The possibility also exists that it WILL revalue. Pretty simple.

Nani? Are you one of the people on this site that believes that this investment is 'guaranteed'? Becaaaaaaause if you are, I've got a bridge you may be interested in ...

Yes, I'm in the investment, BUT I'm not in the cult.

TS

[Networth]

If it is what you say then the entire world is screwed. They are depending on this RV. It could wipe out all debt. Without it the entire monetary system is going to collapse. So really I think you are wrong.

What? C'mon. You can't be that gullible. The entire world is depending on this? That is far fetched to say the least. The RV is about Iraq. It has nothing to do with the rest of the world. If an RV could fix the world's monetary problems why not just revalue the dollar? Or the euro? Or the yen? Why does the dinar have to be revalued save the world? I mean it could be any currency right? I think there are legitimate reasons for the dinar to revalue. But saving the world is not one of them. If the world monetary system is so dependent upon the revaluation of a single currency of a small undeveloped country, we are absolutely doomed.

[Firedawg]

All of this Korean won talk makes me want some yaki-man-doo, soju, and some juicies!!!!

[jeepguy]

hi net worth i see what you are saying and you know, i`ll help you out of you problem, i`ll take your worthless dinars off your hands , hate too see you worry over these little problems, if you have a million of them i`ll buy them off you for ohhhhhhhh how about 50. usd`s thanks

Edited January 23, 2011 by jeepguy

[RANDY TEXAS]

ILL GIVE HIM 75 USD FOR THAT 1 MILLION DINAR TO MAKE HIM HAPPIER,LOL,SERIOUSLY THOUGH,IT DOES NOT HAVE TO REVALUE-TRUE ,BUT SINCE IM A GAMBLING MAN,IM BETTING IT WILL! ALL I NEED IS AT LEAST .35,ILL RETIRE & PLAY POKER,GO RV

[MPG350]

ILL GIVE HIM 75 USD FOR THAT 1 MILLION DINAR TO MAKE HIM HAPPIER,LOL,SERIOUSLY THOUGH,IT DOES NOT HAVE TO REVALUE-TRUE ,BUT SINCE IM A GAMBLING MAN,IM BETTING IT WILL! ALL I NEED IS AT LEAST .35,ILL RETIRE & PLAY POKER,GO RV

Your going to give him less than what 1 million iqd is worth in usd ha

He wasn't saying the iqd is worthless that is all, 1 usd is worth 40 something yen is the yen garbage? No

I do agree give me .35 and i'll be more than happy thats for sure

[dinardlee]

you're absolutely correct. South Korea is a wealthy country, and the won would seem "worthless" to dollars but it's their means of measurement.

RV does not need to happen, why can't 1000 dinar = $1? it's not very different from 1200 won = $1.

I come off as negative sometimes, but only to those with extreme high hopes. I believe, dinar will appreciate in value, but certaintly not by 4000% over night like some people are expecting on this board.

This will be a slow, and steady process once Iraq has their sh*t together.

One thing I learned about life is there are no short cuts to being rich or successful, unless you are born into it.

Also don't expect too much from ANYTHING in life, or you will be majorly disappointed.