Exchange rate of Iraqi Dinar

[hitman]

Notice over the last years what all the gurus have predicted what the rates will be.... 4.86 3.39 3.22 2.80 1.32 .33 any of these figures ring a bell when the pumping of the dinar was started by the gurus....... ummmmmm think you know where they got their BS from???? This is straight of the net no rumor here

1932 Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86. 1932–1949

1949–1971 Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971.

1959–1967 Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967. 1971 One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began.

1973 Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US$3.39. 1980 It remained at this level until the outbreak of the Iran-Iraq War in 1980.

1982 In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt.

1988 In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US$3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate.

1986–2003 1986–2003 between .33 cents to 1.32 to a dollar. 2001 Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.) 2002 GDP: purchasing power parity — $58 billion (2002 est.) 2002 Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002)

2003 In october 2003, the official Dinar-dollar exchange rate was ID1 to US$0.00027.

2004–2005 August 2004 till 2005, the official dinar-dollar exchange rate is ID1 to US$0.00068. Population: 25,374,691 (July 2004 est.)

2006 As of Jan 1st 2006, the official Iraqi dinar-US dollar exchange rate is ID1 to US$$0.00067.

[sams401k]

Like the way you broke it down, plus 1 from me

It makes no sense that it remain at the artificial rate forever...

I was thinking, people say that it would confuse the Iraqi people if it came out high, but it wouldnt really be confusing.... The dollar goes up and down huge amounts in relation to other currencies, but unless your following the forex we dont really see it reflected in the day to day purchases, etc. The items you purchase are just cheaper with a high exchange rate.

Lets hope they can pull their %$#*&% together

[TonyDownTheShore]

Interesting, thanks for the post.

[srdedeaux]

Thanks for the history lesson! History has been knowne to repeat it self! I say 3.22 is a good restart rate.............................! Go RV............! B)

[dhardage]

soooooooo, ONE of the rumors was 8.46!!! Any idea where that came from?

hmmmmmmmmmmm "1932 Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86. 1932–1949" maybe someone is dyslexic?

[4aprofit]

And now, after a several decades long dictator has been removed, and Iraq is encountering and/or will soon be encountering probably 10,000 times the amount of commerce that their country has ever seen...and some folks are screaming LOP, FLOP, SCAM, ETC...I SAY B.S....

P.S....If this is a scam, or this is supposed to go the wrong way, H#ll, I wanna be in on it...so I can lose my arse where something is ACTUALLY happening at, unlike here...where I and most others have ALREADY had a LOP or FLOP right here in the U.S. of A.....where there aint nothin happening!...LOL...

Edited October 19, 2011 by 4aprofit

[Danan]

I would love the higher rate. Keep our fingers crossed and pray it happens. Go RVVVVVVVVVVVVVV

[burn_the_village]

It makes no sense that it remain at the artificial rate forever...

Well for all those exchange rates quoted and during those times Iraq did not have Sadam Hussein in power and having gone through a war with Iran. Sadam is the one reason why the dinar is in the condition it is in today. He spent money like crazy and then when he was cut off from the rest of the world after desert storm, he went crazy printing dinar. At the dissapointment of Shabibi, the IMF would never allow them to escape what Sadam did. All we did when the NID was created was remove Sadam's Face the value basically remained the same and was allowed to appreciate from 3500 to where its at now....

If you look at their reserves and their M2 and their monetary policy, what is artificial about that?

Basically they back their currency 100%. This is a common muslim banking practice....

We are dealing with Trillions in the M2 they are claiming and they are backing their currency with billions of dollars in value so doesn't that make sense why the exchange rate is 1170?

How is that artificial?

Look at other countries in the region and compare their reserves to their M2 and then take a loot at Iraq. Then you can understand what Sadam did....

[xyzzy]

1986–2003 1986–2003 between .33 cents to 1.32 to a dollar. 2001 Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.) 2002 GDP: purchasing power parity — $58 billion (2002 est.) 2002 Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002)

Except that you neglect to mention that the dinar was down to ~3000 dinar per dollar by 1995. i.e. it didn't drop suddenly in 2003 due to Saddam's fall, it had already been this low for several years.

[burn_the_village]

Except that you neglect to mention that the dinar was down to ~3000 dinar per dollar by 1995. i.e. it didn't drop suddenly in 2003 due to Saddam's fall, it had already been this low for several years.

That is correct all through the late 80s and 90s Sadam brought financial ruin to Iraq and the only reason why the dinar was 3.22 in the late 80s was because Sadam Said so....Black Market price for dinar was so much cheaper than that.

If anything, the $3.22 in the late 80s for the exchange rate of the IRaqi Dinar was "Artificial"

And unfortunately, the price of the dinar today, is legit...

Edited October 19, 2011 by burn_the_village

[Brisco]

I've always liked this to reference to http://www.edinarfinancial.net/ and I beleave this is what hitman has referenced to as well.

[Dinarabot]

I dont feel its a scam....been invested for a while now, and i thought back in december we were close...now it feels like they are years off....but then again, if it was strong in the 30-50's, then maybe there is hope....

[keepmwlknfny]

Well for all those exchange rates quoted and during those times Iraq did not have Sadam Hussein in power and having gone through a war with Iran. Sadam is the one reason why the dinar is in the condition it is in today. He spent money like crazy and then when he was cut off from the rest of the world after desert storm, he went crazy printing dinar. At the dissapointment of Shabibi, the IMF would never allow them to escape what Sadam did. All we did when the NID was created was remove Sadam's Face the value basically remained the same and was allowed to appreciate from 3500 to where its at now....

If you look at their reserves and their M2 and their monetary policy, what is artificial about that?

Basically they back their currency 100%. This is a common muslim banking practice....

We are dealing with Trillions in the M2 they are claiming and they are backing their currency with billions of dollars in value so doesn't that make sense why the exchange rate is 1170?

How is that artificial?

Look at other countries in the region and compare their reserves to their M2 and then take a loot at Iraq. Then you can understand what Sadam did....

Yep...... +1

[truthful1]

Like the way you broke it down, plus 1 from me

It makes no sense that it remain at the artificial rate forever...

I was thinking, people say that it would confuse the Iraqi people if it came out high, but it wouldnt really be confusing.... The dollar goes up and down huge amounts in relation to other currencies, but unless your following the forex we dont really see it reflected in the day to day purchases, etc. The items you purchase are just cheaper with a high exchange rate.

Lets hope they can pull their %$#*&% together

It makes total sense to leave them on an artificial rate. their economy is stagnant, with governmental red tape everywhere, bribery and corruption running amuck. politically iraq is in utter turmoil, and their entire state is being propped up by the us and the un. ntil iraq can begin to build and strengthen there entire situation on there own, it makes perfect since to leave the artificial rate. any significant change would just put more pressure on an already fragile country. a realists view.