Central Bank reveals details of the Iraq Currency

[Sanssouci]

I am sure you realize this, but unfortunately the article does not state that the change will have an immediate effect of increased purchasing power. It states that the change will 'lead to' increased purchasing power.

We can all imagine that the Iraqi citizens would like to see it happen that way. But given the manner of how the GOI has acted towards their people and their welfare, do we really think that they give enough of a squat about them to make such a change?

You're parsing the words of a not-always-reliable automated translation.

[only 1-25k dinar]

Darin, I am only 3 months into this investment and I just want to Thank you for that great explanation you just posted. It made things clear to me, finally....Thanks!

[Markinsa]

Will a re-denomination (lop) increase value or purchasing power? Yes... Because "One dinar" will buy more items in the market post re-denomination rather than prior. But, will the average Iraqi be able to go out and buy more items at the market with their 25,000 dinar note post re-denomination in comparison to prior? No.... They'll buy the 'same' items... And right there, is the problem. How is a re-denomination going to help a local economy if people are still poor, can not buy more products in the market, and if anything adds stress to locals with dealing with multiple currencies & prices? A re-denomination is not going to help bring back wealth to the people. If anything, it'll put an end to people speculating on their currency. It will really keep a status quo situation to their country & economy with the addition of adding a new currency with lower denominations and other stressful issues to overcome by every citizen.

To correctly view how a re-denomination works in the terms we fear will happen. You have to imagine that their money is like a very large PIE. Each slice represents an amount of dinar. To simplify it, lets say a pie represents 200,000 dinar. The pie is sliced up into 8 individual slices of equal size. Each slice is a 25,000 note. A re-denomination has it so the numerical face value of the pie is reduced to 200. Each slice becomes 25 instead of 25,000. If you hold one slice, it still feeds you the same whether it has a 25,000 value or a 25 value. So, if your struggling to survive off of one slice of pie, after a re-denomination your going to continue to struggle to survive off of that one piece of pie after a re-denomination. Your still being fed exactly the same amount.

It sounds like you are contradicting yourself. Either the value is going to change or it isn't. In the first paragraph you say the RD will increase purchasing power, in the second you are saying there will be no change.

-

[HopefulTxn]

You're parsing the words of a not-always-reliable automated translation.

Simply stating what the actual text of the article was, which was in contradiction to what was being stated in the post I was replying to.

[Darin]

I am sure you realize this, but unfortunately the article does not state that the change will have an immediate effect of increased purchasing power. It states that the change will 'lead to' increased purchasing power.

We can all imagine that the Iraqi citizens would like to see it happen that way. But given the manner of how the GOI has acted towards their people and their welfare, do we really think that they give enough of a squat about them to make such a change?

Interesting perspective.. The articles are nearly saying that once the re-denomination process is over that the value of the dinar will appreciate. Same thing happened in Turkey, because some of their dollarization threats were eliminated and people started to use the Liras and discontinued use of USD & EUROs which was pulled from circulation and helped back the value of the currency.

If the GOI was sitting on a large amount of IQD, wouldn't they be up for appreciation in the value of the IQD? More is better right???

Time will tell in that department...

In the years that go by, we will be able to look back and say... "That was their plan all along..." Whether it was M pursuing a dictatorship, or whatever it may be.. Who knows at this moment.

[Darin]

It sounds like you are contradicting yourself. Either the value is going to change or it isn't. In the first paragraph you say the RD will increase purchasing power, in the second you are saying there will be no change.

-

No, I do not believe so. The increase is based upon a monetary illusion. This is what KeepM stated dawned on him & he finally understands.... Which is why I was referencing & quoting him.

Lets say..... a sack of potato's costs 25,000 present day. After the re-denomination, that same sack of potato's will cost 25. In numerical terms, 25 is much less than 25,000. Which gives the "illusion" that the purchasing power has increased by 1,000. But, the difference is simply that the same old 25,000 note buys the same thing. People will have the illusion that their 25 note buys more, because the 000s are omitted. In reality, they're just receiving a 1,000 times less when getting paid or upon exchange from old for new. But, upon each paycheck or exchange, they're still able to buy the same amount of goods whether they got paid with the old currency or did not do an exchange.

So, to better answer your question. The Face value of a note "will change" but what it may buy "will not change."

We want a situation where a 25,000 note will have the ability to buy more items after the re-denomination (Not the same amount of items)

The amount of appreciation that may happen after a re-denomination could of simply happened just as easily when speculators were buying up their currency. Instead of increasing their money supply, they could of used the incoming liquid assets to help appreciate the value of the dinar.

So, every time the CBI receives a USD and deposit into their cash reserves, they allow the release of 1170 dinars. (So to speak)

So, if X is the exchange rate we can view it like an equation.

M = Money Supply

R = Foreign Reserves

M*X = R

See, in recent years, the X variable (rate) has been fixed to maintain itself at 1170...

What would have been nice to see is the M ($ supply) remain fixed.

So as the R (Reserves) increase, the exchange rate would have to appreciate.

I.e., 50T(M)*0.001(X) = $50B (Reserves)

So - the better questions to find an answer to, why maintain a stable rate of exchange (pegged rate)?

Would the appreciation of an exchange rate not help their economy? Or would it push local citizens to avoid spending IQD in the market as the value is appreciating.

Well, if that were the case, would it be better to come out at a higher rate of exchange and have it drop in value.... Pushing locals to spend rather than save?

Our USD does not buy more if we just let it sit in a checking account. If we were to sit on the USD in our checking acct for years, it would likely buy less.

Which helps push us to spend money...

So overall, why print & expand a money supply by so much it forces you to R/D even though inflation is low? Sometimes, it appears as if some things do not add up. Just my 0.02

[keepmwlknfny]

No, I do not believe so. The increase is based upon a monetary illusion. This is what KeepM stated dawned on him & he finally understands.... Which is why I was referencing & quoting him.

I have understood that concept for sometime lol....was trying to explain it to others cause there is a notion that a RD wont increase purchasing power but it does in reality....

If you forget about what a 25k note turns into after a RD and the pricing that changes, there is a huge gain in purchasing power with either scenerio....if you just think about what 25 dinars can buy you right now in Iraq (maybe just a slice of toilet paper lol) and then what you can buy with 25 dinars after a RD happens, you have a huge gain in what you can buy with 25 dinars. And thats what they mean buy increasing purchasing power....yes of course prices are adjusted accordingly but the bottom line is that you do have a nice increase in PP.

[hame55]

Thank you xyzzy for your posts again.

Betty, you are responding with more attacks and not an actual discussion. You start your post claiming I wasn't being attacked, and end it by telling me I have a personality disorder. Apparently I need to have invested in dinar, and now regret my investment to discuss this logically. I clearly stated my intentions of being here, mainly to thank the posters who discuss things with respect and common sense. I do not have to own dinar to know others who have invested, to research this matter, or to discuss it civilly.

Also, I would love to hear who you and others "suspect i am," considering this is the first time I have ever entered the dinar world at all.

Again, I feel I have openly expressed my intentions here but to clarify... I am not trying to dissuade anyone who owns dinar from holding hope in their dream. I'm not here to start arguments or flame wars. I am here to thank the members who post logically, and to point out what I see as obvious fallacies in logic. I do not do this to be a "saint" as someone claimed, I am doing this because I know this site is heavily trafficked, and feel that potential investors should see something other than Aqua Dude claiming every RD article is for an RV. I do this because I can see the trouble blind faith has caused in many lives, and know that some people will invest more than they can afford.

Again, I am not trying to dissuade any dinar holders. My posts are meant to encourage non-investors to research the dinar objectively before spending money on it. I'm sorry if that seems preachy to you, but shouldn't there be a balance on this forum for the many (thousands? more?) people who choose to visit this site before investing? What is the motivation for the alleged "loppers" on this forum?

To Sansoucci: My interest in dinar investment has been going on for many months since I was first introduced to the idea. I find the faith vs. facts argument very interesting. Again, I am not here to discourage current holders, only to level the playing field so that possible future investors aren't tricked by the clear lies and/or delusions of posters such as Aqua Dude

COLONEL

It's not faith vs facts for those believing in RV. Faith implies we are like religious fanatics, zealots who, without any real knowledge, just believe from a purely emotional standpoint.

It is not faith. It is a common sense knowledge of how politics work, how info. is manipulated in the media, etc.

Your argument is predicated on your "hard" fact that 29 trillion dinar are in circulation. How do you know that's true? Do you believe the Iraqi government is telling the whole truth? Apparently so. Has the US government lied to us? More times than it has told the truth....

Many of us do not believe your numbers. I don't think Iraq has that much in circulation. It is smoke to make an RD seem likely and prevent a larger speculation on the dinar. We also know those who occupy and are exploiting Iraq probably will not pass up the chance to make millions RV'ing their currency. It has to go international sometime, and it has to go up. Someday their former wealth, before war, and perhaps a little more, will be reinstated. It's common sense.

So do not come here and disparage us as "true believers" like some fundie religious nutcase, when you are not even invested yourself and you base all your arguments on a lying government's statistics.

[caz1104]

Thank you xyzzy for your posts again.

Betty, you are responding with more attacks and not an actual discussion. You start your post claiming I wasn't being attacked, and end it by telling me I have a personality disorder. Apparently I need to have invested in dinar, and now regret my investment to discuss this logically. I clearly stated my intentions of being here, mainly to thank the posters who discuss things with respect and common sense. I do not have to own dinar to know others who have invested, to research this matter, or to discuss it civilly.

Also, I would love to hear who you and others "suspect i am," considering this is the first time I have ever entered the dinar world at all.

Again, I feel I have openly expressed my intentions here but to clarify... I am not trying to dissuade anyone who owns dinar from holding hope in their dream. I'm not here to start arguments or flame wars. I am here to thank the members who post logically, and to point out what I see as obvious fallacies in logic. I do not do this to be a "saint" as someone claimed, I am doing this because I know this site is heavily trafficked, and feel that potential investors should see something other than Aqua Dude claiming every RD article is for an RV. I do this because I can see the trouble blind faith has caused in many lives, and know that some people will invest more than they can afford.

Again, I am not trying to dissuade any dinar holders. My posts are meant to encourage non-investors to research the dinar objectively before spending money on it. I'm sorry if that seems preachy to you, but shouldn't there be a balance on this forum for the many (thousands? more?) people who choose to visit this site before investing? What is the motivation for the alleged "loppers" on this forum?

To Sansoucci: My interest in dinar investment has been going on for many months since I was first introduced to the idea. I find the faith vs. facts argument very interesting. Again, I am not here to discourage current holders, only to level the playing field so that possible future investors aren't tricked by the clear lies and/or delusions of posters such as Aqua Dude

Another one here to help those that are to dumb to help themselves. You work for the Gov? cause that sure is they're MO.

[MovieMaker]

Good thread, lot's of though, and explanations of different opinions. This is what DV is all about. Love it!

[IchDien]

This is hardly a "case closed" issue.

[NotAChance]

I hope everyone realizes that removing 3 zeros from the currency increases the value and the purchasing power of the currency. One dinar now has the purchasing power of what was previously 1,000 dinar. The value of a dinar just went up by 1,000. Unfortunately, everybody also now has 1,000 less dinar than they previously had. Someone with 1,000,000 dinar, now has 1,000 dinar (although those 1,000 dinar can buy what 1,000,000 dinar could previously buy). I know how desperately people don't want there not to be a lop but this settles nothing. It certainly doesn't close the case. A lop could accomplish all the things that this article claims. And logic tells you that with trillions of dinar in print, that is still the most likely and viable option.

[Carrello]

Darin, I am only 3 months into this investment and I just want to Thank you for that great explanation you just posted. It made things clear to me, finally....Thanks!

I would like to second that. Thank you Darin! Great work, as always.

[Aqua Dude]

yet they never explain how this revalue will help the world economy, oh lemme guess, its not for the world economy, its for just the iraqi people, the US is over there helping them because iraq is so good to us and they are not gonna give nothing back.....please explain HOW a redenomination will help the world economy?

its funny how none of these lopsters get on the iqd team CC and talk this rubbish, they would get ripped a new one like they do here all the time yet try to keep fighting to make it look like they haven't lost the debate.....there will be no lop!

imo

[Darin]

I have understood that concept for sometime lol....was trying to explain it to others cause there is a notion that a RD wont increase purchasing power but it does in reality....

If you forget about what a 25k note turns into after a RD and the pricing that changes, there is a huge gain in purchasing power with either scenerio....if you just think about what 25 dinars can buy you right now in Iraq (maybe just a slice of toilet paper lol) and then what you can buy with 25 dinars after a RD happens, you have a huge gain in what you can buy with 25 dinars. And thats what they mean buy increasing purchasing power....yes of course prices are adjusted accordingly but the bottom line is that you do have a nice increase in PP.

I think using the example of what 25 IQD can purchase prior to a re-denomination & after a re-denomintion is a better explanation of how the value & purchasing power will increase. What we're all focused on is not so much what the end result will be, but how they arrive at that result. Which method(s) do they choose to use, and some work in our favor, others do not.

The rate has been maintained at 1170 by the CBI. The CBI has manipulated the exchange rate to stay at that level. They likely had the ability to adjust it to increase its strength... But instead they were manipulating their money supply by releasing more notes (whether physical hard-cash or digital currency). The better question(s) to find answers to, if they were really realistically releasing more currency that they were liable against, or, just manipulating it accordingly... (I.e., Maybe they created a fund [some sort of account] where they deposit & withdraw IQD with the purpose to maintain the rate..)

It appear foolish, in my mind, if since 2007 they had plans drawn up to re-denominate and they continued to print & expand their money supply... It would be like digging a hole deeper that you know you're going to have to fill back up with the dirt in the near future.. Why keep digging? It could lead to more work, stress, etc.

I hope everyone realizes that removing 3 zeros from the currency increases the value and the purchasing power of the currency. One dinar now has the purchasing power of what was previously 1,000 dinar. The value of a dinar just went up by 1,000. Unfortunately, everybody also now has 1,000 less dinar than they previously had. Someone with 1,000,000 dinar, now has 1,000 dinar (although those 1,000 dinar can buy what 1,000,000 dinar could previously buy). I know how desperately people don't want there not to be a lop but this settles nothing. It certainly doesn't close the case. A lop could accomplish all the things that this article claims. And logic tells you that with trillions of dinar in print, that is still the most likely and viable option.

Yup - you now go to the market & pay 1,000 times less, but the money you used to have is now technically 1,000 times less. The equation stays equal as both sides are divided by 1,000.

1,000*x=1,000

X maintains the value of 1. (As an example).

And all this to help make a more appealing exchange rate??

It would take a few years until people forget that their currency used to have 000s...

Okay, so the locals may start to use it more as it would be easy in regards to accounting, using in the marketplace, etc.

But... Will it be traded internationally? Will it make its way to become a reserve currency? Doubtful upon a R/D... It'll likely continue to follow a pegged rate (to the USD or GBP)

[Carrello]

I think most have a simple, yet understood, psychological problem with the 25 to 25,000 issue.

Today, 25,000 is worth $21.00.

If a LOP took place, 25 dinar would be worth $21.00.

Nothing was lost or gained. And I know there are nuances to this, but in simple terms, this is it.

[Darin]

yet they never explain how this revalue will help the world economy, oh lemme guess, its not for the world economy, its for just the iraqi people, the US is over there helping them because iraq is so good to us and they are not gonna give nothing back.....please explain HOW a redenomination will help the world economy?

its funny how none of these lopsters get on the iqd team CC and talk this rubbish, they would get ripped a new one like they do here all the time yet try to keep fighting to make it look like they haven't lost the debate.....there will be no lop!

imo

I fail to see how a re-denomination would help the world economy as well...

They're reducing their liablities by a 1,000 times.

They're reducing their money supply by a 1,000 times.

But... they're also reducing their exchange rate by 1,000 times (1170 becomes 1.17)

But, if the CBI were to go this route.. Why would they appreciate the value when they can simply just go ahead and print more money (physical or digital) instead of increasing the exchange rate.

They've done a fine job of it thus far, increasing their money supply...

This is why upon an official R/D - I may bail a.s.a.p (only upon initial implementation)

They'll either adjust (appreciate) the exchange rate in our favor out of the gate, or after the process is complete (Which may be 1-2 years)..

[Darin]

I think most have a simple, yet understood, psychological problem with the 25 to 25,000 issue.

Today, 25,000 is worth $21.00.

If a LOP took place, 25 dinar would be worth $21.00.

Nothing was lost or gained. And I know there are nuances to this, but in simple terms, this is it.

Yup, it's a not-so great scenario for us... No doubt about it..

Our return-on-investment % is reduced by a huge margin.

Our best hopes & bets would be 300%-400% returns (3 to 4 times our $)

But that is even a far fetch IMO.

We have to see the IQD appreciate a fair amount prior to seeing any returns based upon which route we took to initially invest or time-wise.

1,000,000 * 0.00086 = $860

1,000,000 through a dealer is normally $1200 (including fees such as Wire-transfers, CODs, or shipping).

That is a minimum "need" of a 40% appreciation to their exchange rate if you bought 1,000,000 to break even upon what you paid. (Not including fees paid upon exchange for USD)

They would have to increase their exchange rate to $1.204 instead of $0.86.... Just for the value of what we hold to be on par with what paid.

But, who will cash us out & how much will they charge us?

I figure, we would need to see the rate be $1.50+ to break even or come out ahead modestly. (Remember, I'm talking in terms of R/D)

... We all likely over paid when we invested, and will likely be underpaid when we cash-out upon a R/D...

Take that into account prior to your next purchase... Are you really willing to lose 40%+ of what you invested as a gamble? If so, go ahead.. If not, think twice...

It sucks to hear, but it is a reasonable possibility... Just depends on what type of action they take.

[Markinsa]

I think most have a simple, yet understood, psychological problem with the 25 to 25,000 issue.

Today, 25,000 is worth $21.00.

If a LOP took place, 25 dinar would be worth $21.00.

Nothing was lost or gained. And I know there are nuances to this, but in simple terms, this is it.

I agree, I don't think anyone has an issue with those numbers. What they have an issue with is what a 25,000 Dinar note will be worth, when a 25 dinar note is worth $21.00. The CBI Law states there must be an "equivalent exchange" when exchanging old currency for new currency. Some people think that law does not and will not apply, and instead of the 25,000 Dinar equaling $21,000, it will still be worth $21.00.

-

[keepmwlknfny]

yet they never explain how this revalue will help the world economy, oh lemme guess, its not for the world economy, its for just the iraqi people, the US is over there helping them because iraq is so good to us and they are not gonna give nothing back.....please explain HOW a redenomination will help the world economy?

its funny how none of these lopsters get on the iqd team CC and talk this rubbish, they would get ripped a new one like they do here all the time yet try to keep fighting to make it look like they haven't lost the debate.....there will be no lop!

imo

Because believing that a current 3rd world country will save a global economic crisis is a bit far fetched.....of course a RD wouldnt save the world lol that you are correct about.

If you think we are there simply for a currency revaluation you might wanna look into this a bit further. Oil was the main driving point for the war, to have a hand in another vastly untapped source, and also partly because Saddam was not following OPEC regulations as far as using USD for the purchasing of oil. You could also throw in about the WMDs but I dont think that was the major push for this although they made it seem that way in the media and to the rest of the world.

Its funny how you say the "lopsters" get ripped a new one all the time here but yet it seems only in your head....because as the "lopsters" are using facts and historical data with their arguments that it can very well happen, the "GO RVers" rely on speculation and hope....oh and dont forget the forum facts as well.....so who really has a stronger side??

And then of course you like to post RD articles as if they are talking about a straight RV.....how ironic.....

[Francie26]

Simply stating what the actual text of the article was, which was in contradiction to what was being stated in the post I was replying to.

I got this from somewhere on dv, but not sure where. But it answered a lot of my questions. It is, of all things, the GET team, but they have a speaker named The Historian, and I think she is fantastic. Begin about 12 min. into it. Give it a shot. I think you'll learn some info about the things being discussed in this thread.

https://app.freeconf...6719;0NDkwNDAx1

[Darin]

Because believing that a current 3rd world country will save a global economic crisis is a bit far fetched.....of course a RD wouldnt save the world lol that you are correct about.

If you think we are there simply for a currency revaluation you might wanna look into this a bit further. Oil was the main driving point for the war, to have a hand in another vastly untapped source, and also partly because Saddam was not following OPEC regulations as far as using USD for the purchasing of oil. You could also throw in about the WMDs but I dont think that was the major push for this although they made it seem that way in the media and to the rest of the world.

Its funny how you say the "lopsters" get ripped a new one all the time here but yet it seems only in your head....because as the "lopsters" are using facts and historical data with their arguments that it can very well happen, the "GO RVers" rely on speculation and hope....oh and dont forget the forum facts as well.....so who really has a stronger side??

And then of course you like to post RD articles as if they are talking about a straight RV.....how ironic.....

When we want to predict an outcome of a situation, we turn to history and similar events to see how they play out. This is done time & time again to find a feasible outcome. Each situation is normally different to a degree, but with some similarities. Our situation is different from that of Kuwait or Turkey, but do have some similiarities...

A R/D mostly favors the CBI. It reduces their liabilities and money supply by 1,000 (along w/ their exchange rate).

The event is value neutral with the hope of having a more appealling exchange rate to foreign investors.... -- But many of us will know how that whole scenario played out.

This particular event would also maybe help compete against the dollarization threat.... (Higher demand for IQD)

Why? Because it is easier to count 5s, 10s, 20s versus 5ks, 10ks, & 25ks.. No doubt in that, but, will it be enough?

Many have become accustomed to using USD, because its accepted nearly anywhere, is traded internationally, and is quite stable.

Will the IQD become internally trade-able? Will it hit the Fx markets? Will it become a reserve currency to represent the M.E. region??

Too early to tell, in my opinion...

I don't think they'll reach that level upon a re-denomination for quite some time...

In fact, upon a R/D, I would argue they maintain their current monetary policy... 100% backing (100% liquid assets to back up 100% of their liabilities)

Almost seems pointless to have a domestic currency under that monetary policy, huh? May as well stick with the U.S.D, right? That is what they're paid with in crude exports.

This is a boom or bust scenario for many of us...

When it is all said & done, we can look back and say 1 of 2 things:

--We were fools to believe in such a risky investment

--We were fortunate & lucky to stumble upon a risky investment.

So what will we be? Fools or Brilliant & lucky?

[HopefulTxn]

I got this from somewhere on dv, but not sure where. But it answered a lot of my questions. It is, of all things, the GET team, but they have a speaker named The Historian, and I think she is fantastic. Begin about 12 min. into it. Give it a shot. I think you'll learn some info about the things being discussed in this thread.

https://app.freeconf...6719;0NDkwNDAx1

Personally, I refuse to listen to anything from the GET site. IMO, they have tried to blow sunshine up everyone's arse for far too long to ever regain any level of credibility or respect.

[keepmwlknfny]

When we want to predict an outcome of a situation, we turn to history and similar events to see how they play out. This is done time & time again to find a feasible outcome. Each situation is normally different to a degree, but with some similarities. Our situation is different from that of Kuwait or Turkey, but do have some similiarities...

A R/D mostly favors the CBI. It reduces their liabilities and money supply by 1,000 (along w/ their exchange rate).

The event is value neutral with the hope of having a more appealling exchange rate to foreign investors.... -- But many of us will know how that whole scenario played out.

This particular event would also maybe help compete against the dollarization threat.... (Higher demand for IQD)

Why? Because it is easier to count 5s, 10s, 20s versus 5ks, 10ks, & 25ks.. No doubt in that, but, will it be enough?

Many have become accustomed to using USD, because its accepted nearly anywhere, is traded internationally, and is quite stable.

Will the IQD become internally trade-able? Will it hit the Fx markets? Will it become a reserve currency to represent the M.E. region??

Too early to tell, in my opinion...

I don't think they'll reach that level upon a re-denomination for quite some time...

In fact, upon a R/D, I would argue they maintain their current monetary policy... 100% backing (100% liquid assets to back up 100% of their liabilities)

Almost seems pointless to have a domestic currency under that monetary policy, huh? May as well stick with the U.S.D, right? That is what they're paid with in crude exports.

This is a boom or bust scenario for many of us...

When it is all said & done, we can look back and say 1 of 2 things:

--We were fools to believe in such a risky investment

--We were fortunate & lucky to stumble upon a risky investment.

So what will we be? Fools or Brilliant & lucky?

And history is a good indication most of the time of what could or would happen.

It doesnt seem that foriegn investors are much worried about a higher or more appealing exchange rate, they are coming in force but their main issue seems to be all the red tape and hurdles they have to go through to get in the door. How tough it is to do business....If I was at home i would post an interesting link to an article speaking of the exact thing....

As far as the dinar becoming internationally accepted and traded, that could be done at any point in time regardless of what happens with the currency now, it would just need to be persued by the CBI I think it is.....Countries like Russia are on the verge of having their currency become considered a convertible currency (it might have already went through but I do remember reading about them pushing the issue) to be accepted world wide and they did actually RD years ago so I dont see that even being an issue for Iraq regardless of the outcome of this investment.

But your right, its a bit early to be thinking about any of that at this point....they need to be more focused on getting on their own two feet first and becoming STABLE! After they accomplish that, then they can be more worried about the extra goodies so to speak lol....

Personally, I refuse to listen to anything from the GET site. IMO, they have tried to blow sunshine up everyone's arse for far too long to ever regain any level of credibility or respect.

Yea I agree, they lost that years ago!

[Darin]

And history is a good indication most of the time of what could or would happen.

It doesnt seem that foriegn investors are much worried about a higher or more appealing exchange rate, they are coming in force but their main issue seems to be all the red tape and hurdles they have to go through to get in the door. How tough it is to do business....If I was at home i would post an interesting link to an article speaking of the exact thing....

As far as the dinar becoming internationally accepted and traded, that could be done at any point in time regardless of what happens with the currency now, it would just need to be persued by the CBI I think it is.....Countries like Russia are on the verge of having their currency become considered a convertible currency (it might have already went through but I do remember reading about them pushing the issue) to be accepted world wide and they did actually RD years ago so I dont see that even being an issue for Iraq regardless of the outcome of this investment.

But your right, its a bit early to be thinking about any of that at this point....they need to be more focused on getting on their own two feet first and becoming STABLE! After they accomplish that, then they can be more worried about the extra goodies so to speak lol....

Yea I agree, they lost that years ago!

It is an interesting issue though, once you go internationally traded upon whichever rate you enter the market with, it may suppress or appreciate the value..

If the value goes up too fast, they have to flood the market w/ more IQD. More IQD has to be printed to meet the additional demand.

As of now, they have enough... Imagine what they could realistically do if they really have only 6.38T in circulation w/ 2T still in reserves.

None of us are professionals here, we're just speculating, hoping, etc.

As per your article? I bet it was rather difficult to invest in their economy at this moment. Abiding laws, policies, and other issues (let alone stability, security, etc).

Will their rewards outweigh their risks?