Dinar 400% undervalued per IMF in 2009. Wonder what the real exchange rate is currently?

[drox]

We have seen these numbers many times. Scooter posted this stuff a lot. I don't think it means what we think it means. My link isn't working and unfortunately I have to run out so I can't find the research on it. It shows above it the actual rate as 1170 for 2009. I realize real rate means something different and it would definitely be in alignment with what my projections could be BUT... Something is odd about it. Kind of like the rate that the Ministry of Planning was using an odd rate and the 2009 budget was referring to Bahrain Dinar. Too many strange numbers. Certainly worth looking into again.

Thanks for the post. You might look at some of Scooters old posts. I know you will find those numbers there and in other posts from at least a year ago. I honestly can't remember what we figured out on that stuff. Be well.

[tilak]

promising news.....just another fact pointing toward the inevitable RV

[Adam Montana]

If they do, the heavy hitting investors will own Iraq!

If it comes in at .03 you will have investors purchasing billions of dinar because they know it will go up. Even if it is a controlled float, which it will be, and it goes up just .03 every month for a year, it would be at .39. That's great profit!

You know what's awesome about this, though?

That it's not a bad thing!

Think about it this way: Iraq RVs to 3 cents. People cash out, who makes money?

The CBI (Iraq) and the Investors.

(Remember, the CBI charges a spread when they buy Dinar - so when you cash out, they resell it, and they make money almost instantly.)

So now the Dinar is at .03 - what next?

Heavy hitters come in, buy up some Dinar, the value goes up again... people cash out. Who makes money?

The same people:

The CBI (Iraq) and the Investors.

Wash, rinse, repeat.

See my point? Don't think it's a bad thing for the "heavy hitters" to be able to come in - Iraq makes money the whole way up, up, up.

Who REALLY wins at a low rate?

We all do, but Iraq much more than us.

(This is exactly why I firmly believe we will see it come out at .10 - we make money, but Iraq makes up the "loss" as it auctions, buys, and raises the value incrementally all the way up to the $3 mark. They lose that opportunity if they do a flat $3 RV right away.)

[TFK]

You know what's awesome about this, though?

That it's not a bad thing!

Think about it this way: Iraq RVs to 3 cents. People cash out, who makes money?

The CBI (Iraq) and the Investors.

(Remember, the CBI charges a spread when they buy Dinar - so when you cash out, they resell it, and they make money almost instantly.)

So now the Dinar is at .03 - what next?

Heavy hitters come in, buy up some Dinar, the value goes up again... people cash out. Who makes money?

The same people:

The CBI (Iraq) and the Investors.

Wash, rinse, repeat.

See my point? Don't think it's a bad thing for the "heavy hitters" to be able to come in - Iraq makes money the whole way up, up, up.

Who REALLY wins at a low rate?

We all do, but Iraq much more than us.

(This is exactly why I firmly believe we will see it come out at .10 - we make money, but Iraq makes up the "loss" as it auctions, buys, and raises the value incrementally all the way up to the $3 mark. They lose that opportunity if they do a flat $3 RV right away.)

Hey Adam,

Great post! Very easy for people to understand. I bought into this idea a while back too. This will be how the CBI can grow it's reserves to unheard of levels for a country this size.

This doesn't even bring into account the billions coming in monthly from the ever growing oil sales! Their days of having deficit spending are quickly coming to an end!

It's freek'n amazing... the potential here!

[Adam Montana]

Hey Adam,

Great post! Very easy for people to understand. I bought into this idea a while back too. This will be how the CBI can grow it's reserves to unheard of levels for a country this size.

This doesn't even bring into account the billions coming in monthly from the ever growing oil sales! Their days of having deficit spending are quickly coming to an end!

It's freek'n amazing... the potential here!

EXACTLY.

Iraq TRULY CAN make money out of thin air. It's a hard concept to grasp at first, but once you do... WOW!

[jupitergirl]

always give hope!