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Is it absolutely necessary for the dinar to RV?


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I have heard all the "reasons" why an RV must take place and they may sense to me......but it boils down to this, MUST IRAQ RV THIER CURRENCY IN ORDER TO DO BUSINESS WITH THE WORLS?

And before you answer it, think about a few things like......they are doing business today without an RV, other countries do business with the world without a valuable (as compared to the dollar) currency, to RV would mean giving a lot of the country's wealth to foreign interest, they have plenty of oil and gas that they can now sell and take in other nations currency that they can in turn use to pay outside contractors,

Also, to RV Iraq would have to own up to the public fact that they are a very wealthy nation and the people would want thier share. The powers to be in Iraq do not want to willingly give up their wealth or power to the common man. Is it not possible that Iraq could join the WTO with their dinar at its current value?

The so called "plan" by Bush and Cheney is all about the US interests....do you really think that Iraq cares about what the US wants?

This thing may RV, could be tomorrow or it could be next year......but what I'm saying is it does not have to happen sooner than later. The world is a complicated and corrupt place where the best interests of the little guy is rarely why anything is done. No matter what the news of the day is, it does not mean we will have an RV soon because it makes sense or the facts support doing so......I don't think it does. I believe it will, but in its own good time.....JMO B)

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I think their rate needs to change more for the Iraqi citizens than anyone else. Take investors and speculators out of the mix and the citizens of Iraq have money that can't buy them a whole lot. Also, keep currency value this low and eventually investors will own the country. IMHO, I think they strip the 3 zeros off their rate starting at .86 cents. From there it is allowed to climb. It is not going to make everyone rich but will help the people of Iraq be able to afford more and get out of poverty.

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If they don't RV, they'll miss out on an opportunity to make a profit from the buying & selling of their currency with the spread that goes with it.

That's 1 thing I can think of.. I know there is currently a spread w/ the CBI, but the profits would be much larger in regards to an internationally traded currency.

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I, too, have thought about this and my answer is NO. As you stated, they are doing business as usual. The contracts are coming and and as long as they are an internationally traded currenct then these companies can convert to anything they want to bring it out.

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I also have wondered about this. It seems that Iraq is in no hurry to help their country. Not only is the newly elected government starting to fall apart, but the state of the country itself is not improving. There was a short period of time right after they announced the government that the bombing and killing has been to a minimum. Now 1 month later it seems to be picking up. It seems nothing is stable in Iraq right now and if they were to revalue and not be ready for all possabilities of what could happen, the country of Iraq could implode. This is the thing that scares me. I really need this to happen, but fear that it will be a while before they can justify safely revaluing the Dinar. I hope they get it together, or at least hope that all the negative things we are hearing are all smoke and mirrors. Not matter what happens I will wait forever for this opportunity. It's time for me to really start planning alternative avenues for getting out of the hole i'm in. Good luck to you all.

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The people of Iraq do stand to make money directly through the HCL. They know the value of there own country how could they not. They may be able to do business now and sign contracts but when it comes to the international front they will need a tradable currancy. The big question is why did they have the dinar ever printed if they have no desire to rv. Oh and who fronted the bill for the process of removing the old currency, printing new currency and delivering it throughout Iraq? The US did. There is no logic in trying do just do business in house while paying out in other currencies. The reconstruction of Iraq will cost trillions and you can't pay for all that with others money. As far as Us interests go. They go a lot farther than you are suggesting and other foriegn interests as well. Lifting of ch.7 has stipulations and having a tradable currency is one and sanctions can still be reimposed if the do not comply. No disrespect Tim but I think you are some what off base on this. GO RV!!......GO DV!! It will be sooner than later IMO.

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It's beginning to look and feel a little shakey. At this point I have serious doubts as to whether or not they will RV anytime soon (hope I'm wrong). GOI is falling apart before it even gets running. Let's keep our fingers crossed!

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The people of Iraq do stand to make money directly through the HCL. They know the value of there own country how could they not. They may be able to do business now and sign contracts but when it comes to the international front they will need a tradable currancy. The big question is why did they have the dinar ever printed if they have no desire to rv. Oh and who fronted the bill for the process of removing the old currency, printing new currency and delivering it throughout Iraq? The US did. There is no logic in trying do just do business in house while paying out in other currencies. The reconstruction of Iraq will cost trillions and you can't pay for all that with others money. As far as Us interests go. They go a lot farther than you are suggesting and other foriegn interests as well. Lifting of ch.7 has stipulations and having a tradable currency is one and sanctions can still be reimposed if the do not comply. No disrespect Tim but I think you are some what off base on this. GO RV!!......GO DV!! It will be sooner than later IMO.

None taken...I'm just a little tired of those that consistantly say, the RV "must" happen and it "will happen soon" because......when in fact, they have no factual evidence to support their statements, just a lot of theory. I'm not saying the Rv won't happen, quite the contrary....I believe it will......sometime in the future. And I say that because no matter what 'should" be done for logical, economic and in the best interest of the country's population may not be done without much more argument, in fighting, pressure form the US taking place. We cannot change their mindset overnight......and in the big picture a couple of years is overnight to the Iraqi way of thinking. They are smart, but they trip over their own egos just as much as anyone else in the world.

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What are the 13th , 16th and 29th rated economies in the world? What is their exchange rate? Can or would Iraq do the same with their exchange rate and appreciate it slowly?

Colombia: population 44,205,293, GDP $407,500,000,000 29th ,

M2 $26,570,000,000, and exchange rate $1/1864 Peso,

GDP - per capita (PPP) $9,300, Reserves $24,990,000,000

Debt - external $52,900,000,000, and M2 in their own currency 49,526,480,000,000

Reserves to M2 ratio .94. (44)

Colombia's paper money continued to be issued denominated in peso oro until 1993, when the word oro was dropped. Since 2001, the Colombian senate has debated whether to redenominate the currency by introducing a new peso worth 1000 old pesos. Such a plan has yet to be adopted.

Indonesia: population 242,968,342, GDP $960,200,000,000 16th,

M2 $131,100,000,000 and exchange rate $1/9,149.13 Rupiah,

GDP - per capita (PPP) $4,000, Reserves $66,120,000,000

Debt - external $156,700,000,000, and M2 in their own currency 11,994,339,000,000

Reserves to M2 ratio .50. (44)

The Economy of Indonesia is the largest economy in Southeast Asia, is one of the emerging market economies of the world, and also the member of G-20 major economies.

South Korea: population 48,636,068; GDP $1,362,000,000,000 13th;

M2 $473,400,000,000 and exchange rate $1/1,126.89 Won,

GDP - per capita (PPP) $28,100, Reserves $270,000,000,000

Debt - external $370,800,000,000, and M2 in their own currency 533,048,400,000,000. Reserves to M2 ratio .57.(44)

Despite the South Korean economy's high growth potential and apparent structural stability, South Korea suffers perpetual damage to its credit rating in the stock market due to the belligerence of North Korea in times of deep military crises, which has an adverse effect on the financial markets of the South Korean economy. However, the International Monetary Fund compliments the resilience of the South Korean economy against various economic crises..

Iraq: population 29,671,605, GDP $109,900,000,000 65th ,

M2 $26,100,000,000 and exchange rate $1/1,184.27 Dinar,

GDP - per capita (PPP) $3,800, Reserves $44,380,000,000

Debt - external $73,000,000,000 and M2 in their own currency.

Reserves to M2 ratio 1.7. (44)

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Further support that Iraq does not "have" to RV in order to participate in the world market B)

This a very useful conversation. I appreciate the factual and civil tone.

Thank you,

TS

I believe in the RV; I don't believe in the cult.

That's what I'm looking for.....useful conversation backed by some facts instead of mass hysteria.....thanks :)

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TimS,

The information that Chas32 posted is interesting and I'm sure it will be interpreted differently by individuals.

For me, it underscores what I believe is probably going on (or going to happen). And that is that the iraqi dinar will RV when the US is ready for it to RV. The US government created this situation, mostly for their (our) best interests. The appearance of a democracy is there, but I cannot fathom how the US government will allow anything to occur without their stamp of approval. There can be some rogue episodes (which I believe we have seen) but as my buddy who recently concluded a 20-year career with the Marines always tells me (based on his observation and experience): The US Government can, and will, do anything it wants. Bye the way, he has been reluctant to invest in the dinar.

Time frame? That's anybody's guess. Not soon, I would guess ...

Keep your jobs, people.

TS

I believe in the RV; I don't believe in the cult.

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I don't think it's absolutely necessary Iraq RV their currency. However I do think it's possible they drop three zeros off it and RI(re-instate). This doesn't mean the value goes down. Let's say for example right now 1,000 dinar can buy a cup of coffee-when they drop the zeros a cup of coffee now costs 1 dinar. I think it's all tied to how much oil they can pump out of Iraq. Even though oil is traded worldwide in USD, the more they export the more their dinar will be worth. It will be interesting to see what happens once IQD is actually started to be traded worldwide and also once they become a full fledged member of the WTO. For the IQD's value to be high their has to be a demand for it. Iraq will have plenty of USD from all the oil they sell and can probably buy back dinars at any price they want but I think they have too much rebuilding to do and will have to pay USD to any contractors outside of Iraq. So I don't know how much their going to want to spend buying back dinars right now. I think the question should be: Is the IQD currently undervalued? If it is I think they ReInstate at a higher rate while dropping three zeros from the currency and let the market dictate will it ends up. Not what most people want to hear, but sorry, it's the most logical and easiest thing for them to do. And has been done many times in the past. I'm just hoping it RI's near Saudi's Riyal(26ents), a country with similar resources and exports. I'm just looking to buy a house in cash, not retire from this investment. I believe theres money to be made here with a little patience, just not the millions evreyone is led to believe.

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Tims, you're absolutely correct, it does not have to at all.

Some of us here at DV are losing their sight of things. This is a speculative investment, and we are hoping that all the stars align.

That's why I only invested what I can afford to lose and not look back.

If it happens, awesome, if not, I'll just exchange it back to USD.

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None taken...I'm just a little tired of those that consistantly say, the RV "must" happen and it "will happen soon" because......when in fact, they have no factual evidence to support their statements, just a lot of theory. I'm not saying the Rv won't happen, quite the contrary....I believe it will......sometime in the future. And I say that because no matter what 'should" be done for logical, economic and in the best interest of the country's population may not be done without much more argument, in fighting, pressure form the US taking place. We cannot change their mindset overnight......and in the big picture a couple of years is overnight to the Iraqi way of thinking. They are smart, but they trip over their own egos just as much as anyone else in the world.

Well I use to say this often but the hopes and dreams of an rv are and have driven people to believe what they want no matter how cheesy the info or rumor may be. But here it goes. We are not meant to know when this will happen. The magnitude of this investment is far beyond our understanding and the powers that be will do everything to keep it from coming to light. That includes mass confusion which is nothing new to governments. We hear what they want us to hear and that is why no guru, no boots on the ground, nor any sites top secret contact has been right with their intel. When someone says to watch the news coming out of Iraq and you do, but the news doesn't pan out. Why? Cause its propaganda and spoon feeds people so they see what they want you to see. Its actually very easy and people just don't understand how much propaganda the worlds media feeds us. Just because its on tv or the radio does not make it factual. Now am I saying no one will leak insider info...no I am not, but the ramifications of the truth getting out ( especially this global changing investment ) would distroy yrs of planning and manipulating to get Iraq to where they wanted it. It is so easy to get caught up in rumors because they build hope, they anger, they CONFUSE people. That is exactly what they want and that is exactly what they are getting. In a nut shell, I feel the rv will come when we least expect it because that is their plan.god bless and GO RV.....GO DV!!

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For a long time now I have wondered why DO THEY HAVE TO!!!! No, they do not HAVE TO!!

However, I do believe that they will only because of a conversation that I had with an Iraqi friend of mine whose family still all live in Iraq. He said to me that it will happen.......because of the Iraq pride. Yes pride!!!

We all seem to forget that the Dinar was once worth about US$3.22. Then after the invasion (their view) it was reduced to 0.00086 (after some fluctuations). Therefore, it is because of their pride that they will want to see their currency return to its former glory.

For many arabs their pride (and their word) is their bond and they will die for this. It is for this reason that I do believe that we will eventually see a very profitable return on this investment.

BUT IT WILL NOT BE ON OUR TIME.......IT WILL BE ON THEIR OWN TIME......as it should be.

Be blessed

Joe

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For a long time now I have wondered why DO THEY HAVE TO!!!! No, they do not HAVE TO!!

However, I do believe that they will only because of a conversation that I had with an Iraqi friend of mine whose family still all live in Iraq. He said to me that it will happen.......because of the Iraq pride. Yes pride!!!

We all seem to forget that the Dinar was once worth about US$3.22. Then after the invasion (their view) it was reduced to 0.00086 (after some fluctuations). Therefore, it is because of their pride that they will want to see their currency return to its former glory.

For many arabs their pride (and their word) is their bond and they will die for this. It is for this reason that I do believe that we will eventually see a very profitable return on this investment.

BUT IT WILL NOT BE ON OUR TIME.......IT WILL BE ON THEIR OWN TIME......as it should be.

Be blessed

Joe

Well said Joe.

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Is there any evidence Iraq is currently exchanging the IQD to do business?

2010 Investment Climate Statement

Currency Conversion and Transfer Policies

Bureau of Economic, Energy and Business Affairs

March 2010

The currency of Iraq is the Dinar (IQD - sometimes referred to as the New Iraqi Dinar). The Iraqi authorities confirm that in practice there are no restrictions on current and capital transactions involving currency exchange as long as underlying transactions are supported by valid documentation.

The International Monetary Fund’s annual publication on Exchange Arrangements and Restrictions states that: “Restrictions on capital transactions are not enforced; however, documentation and reporting requirements apply.”

The National Investment Law contains provisions that, once implemented, would allow investors to bank and transfer capital inside or outside of Iraq.

The Government of Iraq’s monetary policy since 2003 has focused on maintaining price stability primarily by appreciating the IQD against the US dollar while seeking to maintain exchange rate predictability.

Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes.

There are no taxes or subsidies on purchases or sales of foreign exchange. Improved security has allowed for an increased supply of goods and services, which, along with the Central Bank’s monetary and exchange rate policies have continued to help temper inflation.

The inflation rate has dropped from a high of 76.6 percent in August 2006 to -4.4 percent in December 2009 (negative due to decreased year-on-year oil, transportation, communication, clothing, and food prices).

http://www.state.gov/e/eeb/rls/othr/ics/2010/138084.htm

What Does Exchange Control Mean?

Types of controls that governments put in place to ban or restrict the amount of foreign currency or local currency that is allowed to be traded or purchased. Common exchange controls include banning the use of foreign currency and restricting the amount of domestic currency that can be exchanged within the country.

Investopedia explains Exchange Control

Typically, countries that employ exchange controls are those with weaker economies. These controls allow countries a greater degree of economic stability by limiting the amount of exchange rate volatility due to currency inflows/outflows.

The International Monetary Fund has a provision called article 14, which only allows countries with transitional economies to employ foreign exchange controls.

http://www.investopedia.com/terms/e/exchangecontrol.asp

Salih pointed out that the sale remittances outside Iraq is allowed for commercial purposes, and according to legal documents, citizens can also transfer money to pay fees for university students or outside of Iraq for medical treatment and for other purposes, not inconsistent with the law against money laundering.

http://translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://www.nakhelnews.com/pages/news.php%3Fnid%3D4224&prev=_t&rurl=translate.google.com&twu=1

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Their currency has to become (viable) in order to be traded. Their currency will rise quickly on the currency exchanges when it becomes a truly live currency. I don't believe they will let it float without parameters because that would mean losing control of the value for the newly recognized government. Without parameters put on their currency, (i.e., RI/RV), you create an inflated market for the dinar in its future, thus translating into inflation in the counrty they are so proud to say they very little of. They want inflation to be kept low I assure you. If a country wants to be internationally recognized, it has to have its own credible currency. If they were to move to something like the Euro, they would have to assess the value of their current currency in order to faze it out. I don't see them changing their whole currency structure. Bottom line, if you want to move foward and you want the worlds help in doing it, you need a viable, tradeable currency. Going back to a dictatorship would be the only way I could see them not assigning a standard starting point for their currency. The parameters may be set low at the initial onset of an accessed value to the dinar, for instance .28 and allowed to float from their where the market would decide what it feels the value to truly be. It can do nothing but increase in value. An internationally recognized, supposed new democratic state has to have a currency that is internationally recognized and tradeable on the open market.

Welcome to the free market! B)

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