RV Amount

[cjdavid]

Well I have been lurking for awhile here at DV. Doing some research. Watching like everyone else. I have thoughts that the RV will be close to the Kuwait amount. Here is my reasoning. The pride factor. There is so much pride in the middle east region that I believe the Iraqi Government will have to RV close to other dinars in that region or they will be looked at as weak. This is besides all the abvious reasons..Oil etc. Any other thoughts the same?

let the bashing begin. I have nothing to gain so be kind. ( I am invested)

[Silence Dogood]

At this point your opinion is as good as anyone elses. Run with it!

[Nitrobuzz]

I have believed for quite a while that the IQD would RI at or about $3.22 .(it's in the Iraqi's interest for it to come in high) One big reason. RV low, North American banks trade (remember, we're the largest stock holder in the Dinar and our goverment has more influence over this process than you'd want to believe) in low, hang on and reap the benefits of a higher RV. RV high. The people it was meant to help (Iraqi's/and inadvertently all of us small timers hear in the US) will benefit. In other words, the more they have control of the RV rate the higher it will go. However, an argument could be made for it coming out relatively low ($1.00 or there about) and then working up to the higher $2 - $3 range. But to explain in more detail would be to complicated for me. If you do enough research you'll see the same information I've seen........not hard to find! Either way, we're in for a warm weather 2nd Christmas this year!!! It's coming soon!!!!!

[waterguy101]

Well I have been lurking for awhile here at DV. Doing some research. Watching like everyone else. I have thoughts that the RV will be close to the Kuwait amount. Here is my reasoning. The pride factor. There is so much pride in the middle east region that I believe the Iraqi Government will have to RV close to other dinars in that region or they will be looked at as weak. This is besides all the abvious reasons..Oil etc. Any other thoughts the same?

let the bashing begin. I have nothing to gain so be kind. ( I am invested)

YOU ARE EXACTLY CORRECT.. IN THIS PART OF THE WORLD PRIDE IS EVERYTHING.. BUT THERE IS LAZINESS.

[snowglobe4]

I used to believe that it would RV at under a dollar....like .55 to .86

I am thinking that it is more logical...(logic and iraq hummm)....for it to come in above a dollar, maybe 1.22

I believe that it will climb steadily from wherever it RVs and end up right up there and one of the highest values in the middle east.

[Doctor Smith]

Ali of Dinar Trade thinks it will come in low. Like .15 US and then ramp up over time. Egypt and Saudi Arabia have low rates.

1 EGP = 0.170794 USD

1 SAR = 0.266652 USD

I think it could be as high as 3.22 dollars.It would be in Iraq's best interest to have a higher rate. Just means they could buy more foreign goods for less money. And any Iraqi's that have a stash will be wealthy. Might take care of most of their problems

So who knows? But remember, it is the Middle East. You have the Scorpion and the Frog scenario. Hopefully they will rise above it and make themselves and us rich.

Edited January 29, 2011 by Doctor Smith

[andy3978]

Doesn't the IMF or the UN or the World Bank need to OK the rate that the GOI presents before it's internationally traded?

If not, couldnt Dr. Shabs say 'ok 1 IQD is worth $500 USD?

There's got to be some basis (GDP) on the number presented

[GreginTexas]

Here is my common sense approach. IMO Scooter has given us the best facts on what the Dinar can sustain and it is large. It depends on a lot of items that we are not sure of, like IMF rules and will the rules be adhered to. It is shown that the Iraqi’s and CBI have the largest amount of Dinar. If they can influence the amount of value $ then I look at it like this:

Say person A has a large bag of one of a kind of marbles and can decide on the price of these marbles. The value person A comes up with is the price. He now has a large value $

that can be traded as an exchange. Even though others have some marbles, person A has the greatest wealth.

Does make sense or am I losing my marbles?

[coldwarvet]

I think that there are many interlocking factors involved with this RV, some of which have already been outlined in this thread: realism, Iraqi pride, the pronouncements of others (i.e., Ali).

However, if the history of the Kuwaiti RV is any indication, the Iraqis will want to avoid the Kuwaiti experience of RV'ing low, having their currency destabilized by traders, with resulting economic instability.

Additionally, if indeed the US govt. is holding a large position in the IQD, and given our own fiscal fragility, it would make sense that there would be outside, behind-the-scenes pressure to RV at a rate that is win-win for the US and Iraq. Do we really think Biden made that unscheduled stop just for a photo op?

Also, assuming the Iraqi constitution mandates only a 2% change in currency value each six months, how much sense does a low RV make in terms of providing the Iraqi people immediate and long term economic relief?

Finally, if the IQD RV is indeed part of a larger plan, moving the global economy toward an asset-based valuation system, the recent announcements about the Iraqi oil reserves would support a higher RV.

Thanks to all for the interesting discussion!

[echo0marie]

I personally think this has to revalue at a higher rate also... I think that if it RV'd at lets say .10-.80 something cents, it would open the doors and eyes for more people to invest because they would see that this is not just a scam, or false hope. I think that they will put a general rate out at first, and then bump it up shortly afterwards. So I do not know what it will revalue at but I am not going to jump on the first bandwagon, unless it is just way too good..

[thomasdabull]

My take on the IQD rate is simple.... Ephesians 3:20

[andy3978]

I personally think this has to revalue at a higher rate also... I think that if it RV'd at lets say .10-.80 something cents, it would open the doors and eyes for more people to invest because they would see that this is not just a scam, or false hope. I think that they will put a general rate out at first, and then bump it up shortly afterwards. So I do not know what it will revalue at but I am not going to jump on the first bandwagon, unless it is just way too good..

a low RV would pour in TONS more speculators. All those people that called us stupid for buying the Dinars...well once they see a small RV THEY will realize it's for real and wonder why with so much oil wealth the Dinar is still so low (compared to neighboring countries) and buy it up at say .10 with the expectation it will rise to $3+

A low RV would definitely create waves of volatility in the market

Additionally, if indeed the US govt. is holding a large position in the IQD, and given our own fiscal fragility, it would make sense that there would be outside, behind-the-scenes pressure to RV at a rate that is win-win for the US and Iraq. Do we really think Biden made that unscheduled stop just for a photo op?

If you told me **** Cheney went over there, I'd be more optimistic. But Ball-less Biden hasnt done much in the way of the RV.

I think Cheney would have slapped M & S around until they RV'd at whatever # Cheney said. hahahaha

[marshall]

your guess is as good as mine

[cjdavid]

a low RV would pour in TONS more speculators. All those people that called us stupid for buying the Dinars...well once they see a small RV THEY will realize it's for real and wonder why with so much oil wealth the Dinar is still so low (compared to neighboring countries) and buy it up at say .10 with the expectation it will rise to $3+

A low RV would definitely create waves of volatility in the market

If you told me **** Cheney went over there, I'd be more optimistic. But Ball-less Biden hasnt done much in the way of the RV.

I think Cheney would have slapped M & S around until they RV'd at whatever # Cheney said. hahahaha

In my opinion Biden is so clueless he was just wasting more tax dollars. I do believe Cheney would have been a better rep to send without a doubt. Only Chuck Norris would be a better man to send..lol

[andy3978]

In my opinion Biden is so clueless he was just wasting more tax dollars. I do believe Cheney would have been a better rep to send without a doubt. Only Chuck Norris would be a better man to send..lol

ROFLMAO!!!! Yea Chuck Norris would have gotten this thing done. He'd also have single handedly eradicated every terrorist off the planet and bright peace to the region.

[cjdavid]

on a side bar, andy3978 has an interesting point about people who roll their eyes at this. I have one other person, who works at the bank where our business account is at ,that bought 1k USD worth of dinar. We talk about it some but there are a couple of other tellers that just roll their eyes when we do. I wonder how many of us will get hit up by these "eye rollers" for a 25k bill. To which I will not have much heart for. But how many times have you shared this info, explained history of war torn nations whose money was worthless only to rise up from the rubble and ashes. And in Iraq's case oil soaked sand.

ROFLMAO!!!! Yea Chuck Norris would have gotten this thing done. He'd also have single handedly eradicated every terrorist off the planet and bright peace to the region.

Glad I could make a good belly laugh for ya!!! Only Jesus coming back will ever bring peace to the middle east. And even then there will be a whole lot of blood shed from that. Always cracks me up that they have these summits to try to bring peace to that region.

[MrRich]

Well I have been lurking for awhile here at DV. Doing some research. Watching like everyone else. I have thoughts that the RV will be close to the Kuwait amount. Here is my reasoning. The pride factor. There is so much pride in the middle east region that I believe the Iraqi Government will have to RV close to other dinars in that region or they will be looked at as weak. This is besides all the abvious reasons..Oil etc. Any other thoughts the same?

let the bashing begin. I have nothing to gain so be kind. ( I am invested)

The problem with that theory is that the currencies of Saudi Arabia, Qatar, and UAE are all around $.27. They're all Arabs too and theoretically proud people also. I think it's better to value a currency according to accepted means of valuation like GDP, natural resources, money supply .... etc. I think an RV around that of the euro ($1.30-$1.40) is more likely.

[KramerDinar]

I do agree with the post of a low RV would bring more speculators in - they would actually be coming out of the wood work. For those who have it now, going from 1170 to .15 would be a great return, but the amount would still be low enough for everyone else to jump on the bandwagon and figure it will rise after that. I think if it RV's at a high enough rate, you are going to gain a high majority cashing out and some that will hold some back for more of a increase over time, but assume the rate was $3...how many people would really hold on to any of it. Even if I had 5 million dinar and it RV'd at $3, I would be out. Why take a break from the roller coaster just to get back on. If you could cash in a $3 or hold on to some and say it jumped to $3.50 are you really gaining enough to continue the ride, esepcially if that was 5 years down the road?

[andy3978]

I do agree with the post of a low RV would bring more speculators in - they would actually be coming out of the wood work. For those who have it now, going from 1170 to .15 would be a great return, but the amount would still be low enough for everyone else to jump on the bandwagon and figure it will rise after that. I think if it RV's at a high enough rate, you are going to gain a high majority cashing out and some that will hold some back for more of a increase over time, but assume the rate was $3...how many people would really hold on to any of it. Even if I had 5 million dinar and it RV'd at $3, I would be out. Why take a break from the roller coaster just to get back on. If you could cash in a $3 or hold on to some and say it jumped to $3.50 are you really gaining enough to continue the ride, esepcially if that was 5 years down the road?

Great post and I couldnt agree more. This damn ride is making me sick! I Cant wait to get off! Hopefully is things go to plan it will be worth it...just as longs as that Damn LOP doesnt rear its head

[umbertino]

Well I have been lurking for awhile here at DV. Doing some research. Watching like everyone else. I have thoughts that the RV will be close to the Kuwait amount. Here is my reasoning. The pride factor. There is so much pride in the middle east region that I believe the Iraqi Government will have to RV close to other dinars in that region or they will be looked at as weak. This is besides all the abvious reasons..Oil etc. Any other thoughts the same?

let the bashing begin. I have nothing to gain so be kind. ( I am invested)

I understand about Pride........BUT.........The strongest /richest Country in the Region, Saudi Arabia, has a currency worth $ 0.27.........

[andy3978]

I understand about Pride........BUT.........The strongest /richest Country in the Region, Saudi Arabia, has a currency worth $ 0.27.........

If SA is the richest country in the ME, why is their rate .27 vs. Kuwait whose rate is 3+? Just asking

[Doctor Smith]

I do agree with the post of a low RV would bring more speculators in - they would actually be coming out of the wood work. For those who have it now, going from 1170 to .15 would be a great return, but the amount would still be low enough for everyone else to jump on the bandwagon and figure it will rise after that. I think if it RV's at a high enough rate, you are going to gain a high majority cashing out and some that will hold some back for more of a increase over time, but assume the rate was $3...how many people would really hold on to any of it. Even if I had 5 million dinar and it RV'd at $3, I would be out. Why take a break from the roller coaster just to get back on. If you could cash in a $3 or hold on to some and say it jumped to $3.50 are you really gaining enough to continue the ride, esepcially if that was 5 years down the road?

If it was to RV at .15 it would then cost over 150,000 Dollars to buy 1 million Dinars. You would no longer be able to make an obscene profit. And their is no guarantee that it will go up further.

[chuckmcg]

My thoughts are that they will revalue at a much lower rate then Kuwait and it will take several years for them to be equal to Kuwait. I do believe they can get there though. Keep in mind that Kuwait had a fully functioning Government prior to the invasion so they were able to pretty quickly recover. Iraq has come a long way and I believe this is the investment of a life time and I am willing to hold on for however long it takes. I sure would like to be way off and it hits HIGH and SOON !!

[gloryv]

I'm hoping Terry is right on this one....

He said $5.27.....

Sounds fantastic to me....

If I'm a hoping..... and I am....

I want to hope for the best.... $5.27

[Tom73]

I believe the SAR is around $3.75 to 1 U.S. Dollar if I am reading the webpage I posted below properly.

/SARUSD 3.75756+0.00796 +0.21%

US Dollar to Saudi Riyal

http://investing.money.msn.com/investments/currency-exchange-rates/?symbol=%2fSARUSD

Last trade: 1/28/2011 7:55 PM ET

GO RV