.10 - .30 RV

[bluejay]

My question is if the IQD RV's at .10 or .30 USD, would there be an opportunity for big money to come in and speculate that it would grow. Wouldn't that hurt Iraq even worse then paying out a higher rate on the initial RV.....Think about big money banks, funds etc....they are rolling blocks of 250-500 million like nothing, and these are the guys that are not in the game at this point in time......Banks make money by trading money so if the IQD hits the streets at .10 I would think they would pounce all over it....

I'm not looking for a instant overnight millionaire pass here, I'm curious of the effect if any if they come out low.....

When it's all said and done we are here for one main reason OIL, that's there gold, they can't hide it, I would think that Iraq would be a great bet for future growth.....

So I would love a clear answer is there a negative effect if they RV .10 - .30

Thanks for your time..

[joe liberst]

If they fear that speculators would drive the price too high, all they would have to do is print more dinars to flood the market forcing the price down.

[easyrider]

what Adam has said .30 cents is def. realistic and i woukd be very happy with that wont make alot of people millionaires but we will indeed make good money. There is a possibility big money would buy up alot of IQD because they would know its gonna rise in the coming years so who knows how this will all play out I don't think a dollar would be bad not too low not too high even .86 would be very wel for a lot of us.

[Tropics]

I don't see them printing more money but coming out at least a dollar. I think they want to be with Kuwait in the same ballpark in value. Now no telling if they will do it immediately or wait a few years, but I see that happening in the future. Maliki seems to be the type that wants everyone to go gaga over him, not necessarily Iraq. So the more of a showplace Iraq becomes the more he will like it. If there is no cash in restrictions and it comes in low like you suggested, I would cash in a little bit to make things a little easier and then wait for it to rise where I think it will eventually settle. But all those plans are for naught if we have to cash in by a certain time.

[Darin]

If they fear that speculators would drive the price too high, all they would have to do is print more dinars to flood the market forcing the price down.

Or have a managed float - only allowing 2% increase/decrease every 30 or 90 days (I can't recall which one it was, I believe 90).

I am sure they'll look for fair market value to introduce the rate. Something they can sustain upon and not hurt the banking industry within their country.

We have reason to argue low rates, and reason to argue high rates. Time will tell...

[Dogma]

If they fear that speculators would drive the price too high, all they would have to do is print more dinars to flood the market forcing the price down.

toke,toke, give-what have you been smoking today my friend!

[firefighter_218546]

From what I hear they will start low and slowly progress to a higher value... The reason is that when this RV's and it starts low people will cash in not knowing how high it will go, and wanting to get their money.. This way Iraq will be able to buy back their dinar at a lower value and when it goes up in value they will already have their dinar back. This is what a couple of high ranking officers were talking to me about in the DEFAC. Plus this is the way Adam Montana see's it too....

Go Rv

God Bless America

[JuryPicker]

Could come in at the usd - eur and clear all the suckers out within 90 days and raise rate over next 9 mo and the rv won't cost them squat.

[Sk 1962]

If it comes in @ .25 on up, I am laughing all the way to the bank

[FOUNDIT]

The RV will not be that low.....Iraq cannot get what their people want buy having a currency without any real buying power...Oil will not provide the necessary fund as they have multiple signed contracts with many country's at a cheap rate...i.e. the US gets it for 42 per barrel...........this will make profits from oil very small for ten years.Therefor the need for a strong currency is a must.They will become a consumer nation as they have no choice at this point.Almost all of the raw materials needed for their country must be bought and shipped to them.So will their currency RV?? Yes indeed...and for much more than a measly .10-.30. You better start thinking more like 3.00-5.00. Thats the only way to get where they want to go..............

[inheritance]

My question is if the IQD RV's at .10 or .30 USD, would there be an opportunity for big money to come in and speculate that it would grow. Wouldn't that hurt Iraq even worse then paying out a higher rate on the initial RV.....Think about big money banks, funds etc....they are rolling blocks of 250-500 million like nothing, and these are the guys that are not in the game at this point in time......Banks make money by trading money so if the IQD hits the streets at .10 I would think they would pounce all over it....

I'm not looking for a instant overnight millionaire pass here, I'm curious of the effect if any if they come out low.....

When it's all said and done we are here for one main reason OIL, that's there gold, they can't hide it, I would think that Iraq would be a great bet for future growth.....

So I would love a clear answer is there a negative effect if they RV .10 - .30

Thanks for your time..

Look this is one of the things people say all the time, and it drives me nuts! If your big money you are in now when the price is at rock bottom. Think about it!

[bluejay]

Look this is one of the things people say all the time, and it drives me nuts! If your big money you are in now when the price is at rock bottom. Think about it!

Correct me if I'm wrong I don't think banking laws allow them to trade the IQD currency, I also think that would apply in the fund laws as well...I'm not talking about big personal money.....Sorry to crack your nuts though....

[hoosier1470]

In a perfect world, I'd like to see it RI at its previous rate....with no time restrictions on cashing in, no lop...just go to the bank! LOL! Which I guess that is a possibility, not likely....but a possibility! I know...I know...keep on dreaming..right!!!!

[keepmwlknfny]

The RV will not be that low.....Iraq cannot get what their people want buy having a currency without any real buying power...Oil will not provide the necessary fund as they have multiple signed contracts with many country's at a cheap rate...i.e. the US gets it for 42 per barrel...........this will make profits from oil very small for ten years.Therefor the need for a strong currency is a must.They will become a consumer nation as they have no choice at this point.Almost all of the raw materials needed for their country must be bought and shipped to them.So will their currency RV?? Yes indeed...and for much more than a measly .10-.30. You better start thinking more like 3.00-5.00. Thats the only way to get where they want to go..............

No way possible at this point.....will take YEARS to climb to previous rates.....and there is no guarantee on even that.....

Correct me if I'm wrong I don't think banking laws allow them to trade the IQD currency, I also think that would apply in the fund laws as well...I'm not talking about big personal money.....Sorry to crack your nuts though....

There are companies that have bought hundreds of millions of dinar, sitting in the same boat we are.....speculating....you can bet if some big money players are watching Iraq they are in now......at its lowest point (well almost lowest).......

[Brisco]

Uless your sleeping with Shabibi you will never know until it happens.

If you go by past recommendations It could be $3.22 & 20%

Less than a dollar would be economicly bad news for Iraq and

I don't be leave A wise Economist like Shabibi would make that mistake.

And the Number One reason for at LEAST a Dollar is PRIDE among their fellow ME Countries.

They have a great deal pride in their decisions most times defying logic.

Which I have seen so many times over the last 7 years I've lost count.

If I had a Dollar for each arrogant pride full fight they have had I would not need an RV/ RI

[dinnie]

They will try to set the rate that so that it is a 50/50 chance of it rising (or falling) in the short run. Especially, in a managed float you want an equal # of buyers and sellers. The NUMBER ONE factor in determining a currency value is how much of the currency is outstanding. If it is true that there is 20 -27 trillion out at present .10 would be the very high end of possibilities.

[FOUNDIT]

They will try to set the rate that so that it is a 50/50 chance of it rising (or falling) in the short run. Especially, in a managed float you want an equal # of buyers and sellers. The NUMBER ONE factor in determining a currency value is how much of the currency is outstanding. If it is true that there is 20 -27 trillion out at present .10 would be the very high end of possibilities.

You have some numbers correct but how you present them is not. Yes they will attempt to keep the rate stable...but this is completely done in a managed float system such as they have been in the last several years.The rate will not play a huge part in this as it will be pegged and managed,it will only move 2% every 30-90 days.Thus a higher rate will be posted at the very beginning.As for your 20-27 trillion...well that number is DINAR IN PRINT NOT CIRCULATED.Big difference.You can bet at least 70% of that is sitting in a CBI volt waiting to make its owner (IRAQ) a lot of money with the RV.

[mcfly831]

If it comes in at 10 cents, i guess that means my dreams can wait but thats ok. My goal would to be debt free and that would only take 40,000. And the rest will be used for a new flux cap in the delorean. I suspect that a majority will cash in and go on with thier lives as planned. Me, well, I sure hope Iraq can stick around. They have had 8 years of training and its time for them to put on the Big Boy Pants. My only regret is that when the US finally does leave, there will be so many unhealed wounds between the factions, corruption, more assasinations of political leaders and then it will go right back to a civil war.

Me, if the rv is under a dollar, im cashing 1/2 this year, the rest is wait and see

[Buckeye Pilot]

3o Cents to 5.00 Bucks............

Im

[War Eagle]

This "theory" of the dinar coming in at .10 to .30 has been bantered around quite a bit,and has pretty much been dismissed. The thinking is that Big money would put so much pressure on the Iraqi treasury as to bankrupt their economy,and consequently,most people think this will NOT happen!!!!!!!!!!!!!!

[KingGebus]

This "theory" of the dinar coming in at .10 to .30 has been bantered around quite a bit,and has pretty much been dismissed. The thinking is that Big money would put so much pressure on the Iraqi treasury as to bankrupt their economy,and consequently,most people think this will NOT happen!!!!!!!!!!!!!!

I'm going to ask this again... I don't know, for the 5th time I think now? Maybe someone will bloody answer me this time.

How &/or Why in the blue heck would "Big Money" buy out Iraq's currency if an RV comes in too low?

Other Major Oil Producers with low valued currencies:

Saudi Arabia has a value of around 1 Saudi Riyal = 26 cents US.

Norway has a value of around 1 Norwegian Krone = 18 cents US

Russia has a value of around 1 Russian Rubble = 4 cents US

So there's 3 pretty significant Oil Producing countries that have not had their countries bought out by "Big Money" (Russia debatable, I'll give you that. But is that because of a low currency or one of the most corrupt/morally bankrupt Gov'ts in the world?) despite having currencies valued significantly less than either the USD or the Euro.

So why do people actually think this is a requirement?!?

All Iraq needs is foreign ownership laws for ownership of national resources, just like almost every other country in the world has. If they don't have such laws in place yet, then IN MY OPINION there's a huge gap that needs to be plugged before an RV is going to occur. Amongst all the other holes that still need to be filled.

Edited April 8, 2011 by KingGebus

[Moses]

Not all currencies are calculated in "Like" manners,...

Most Western style Nations go thru something like Iraq is going thru right now, full valuations, credit, assets, resources (natural, and others like population, work vs welfare, education etc.).

Openness and transperency are the drivers to a stable FOREX based currency.

Other Nations determine their own currency worth and after a bit of quibbling amongst central banks a valuation is accepted, High or Low.

Some nations through strategic improtance and have an artificially high or low valutaion by flexing a Commodity, Resource, Manufacturing, or even Military leverage/strength/potential.

Many go to school for years to gain the answer to the question that you are asking, but I believe mine is the Campbell's Soup Version.

I'm going to ask this again... I don't know, for the 5th time I think now? Maybe someone will bloody answer me this time.

How &/or Why in the blue heck would "Big Money" buy out Iraq's currency if an RV comes in too low?

Other Major Oil Producers with low valued currencies:

Saudi Arabia has a value of around 1 Saudi Riyal = 26 cents US.

Norway has a value of around 1 Norwegian Krone = 18 cents US

Russia has a value of around 1 Russian Rubble = 4 cents US

So there's 3 pretty significant Oil Producing countries that have not had their countries bought out by "Big Money" (Russia debatable, I'll give you that. But is that because of a low currency or one of the most corrupt/morally bankrupt Gov'ts in the world?) despite having currencies valued significantly less than either the USD or the Euro.

So why do people actually think this is a requirement?!?

All Iraq needs is foreign ownership laws for ownership of national resources, just like almost every other country in the world has. If they don't have such laws in place yet, then IN MY OPINION there's a huge gap that needs to be plugged before an RV is going to occur. Amongst all the other holes that still need to be filled.

[capt.cliff]

I don't know about the actual rate should this happen but IMO why try to discourge the use of the dollar as a everyday currency, tradeable internationally and try to switch the population to use a currency worth less than a US dollar---That to me just doesn't make sense---so I am more thinking that the RV/Ri will be at the low end will be higher than a dollar[better hurry shrinking every day] without even thinking about the country's natural resources worth

I also take into account the number of countries, world companies beating the borders trying to get in to present thier wares and be awarded contracts. The oil companies are willing to work off a couple of dollars per barrel just becuase of the sheer volume to get thier boots on that sand--what about all the other companies and countries trying to get thier piece of the pie

think of it like this floor trading in the pits of the NYSE ,arms in the air , shouting out loud and the broker's fingers smoking tying to get orders in electronicly

just my thinking

Capt. Cliff

[primalnick]

There are definitely two different belief systems in play with two different sets of information to back their argument. Truth is, we'll know when we know, and until then its pure speculation and we don't know.

[frankc]

Because of the huge money supply of a stated $27T this will be luck to RV at .10 to .30. Unless they are successful in drastically reducing the money supply in float we will not see anything like a $1 - $3. Saudi is a very rich country and is 27cents. I know many have been pumped over the yrs by some guru's to believe this is a no brainer at $3.22 to anywhere north of $6 but there is no way Iraq can afford anything close to that. Those are pipe dreams. Think about it. That would be anywhere from $100Trillion to $200Trillion dollars to come up with. Impossible. IMO it will be a fraction of that. If they are smart they will do a double RV coming out low and with the dinar they buy back in the cash in then RV again at a higher rate and resell thereby paying for the RV without mortgaging their oil reserves. Probably even make a profit. That method just makes sense and then they would still be able to keep the revenues from their oil/gas etc sales allowing the currency to eventually rise even further based on these unemcumbered assets.