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Does Iraq even need an RV to be sucessful?


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Not really. The purpose is to set the true value of the currency. It is obvious that the dinar have proven to be at least, I repeat, at least as valuable as the dollar. And one could say the RV would cover the budget. Possibly, but not undeviating. So, in order to look more attractive to high end investors, the currency must be valued best to the true value. With a value such as it is, it is not that attractive.

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RV is the only thing they lack to be an economic Power House. Yes they have oil, Yes they have Gold, Now they NEED an RV, so that they can have a currency that is respectable.

That is just my opinion.

That would seem to make sense......Even though we have cases of successful Countries whose currency is very low compared to the USD ...

For example......Japan ...1USD equals 76.29 Yen...... Or South Korea....1USD equals 1146.42 Won... Almost like the IQD.

Edited by umbertino
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To answer your question........yes they need an RV to be "sucessful"

They dont need an RV to function......

Iraq is full of USD and they will never rid the country of USD without an RV...........whish they have clearly stated the wish to dedollarize the country

Yes Iraq has Oil and with that and the money the US hands them each month.............they are doing just fine as a country.......BUT the US is pulling out so alot of that money should leave as well.

Sure other countries use their oil to trade and the revenues generated could keep any country like Iraq functioning...................BUT Iraq has alot more going on then just functioning........they have oil, gold, natural gas, mineral wealth and ENORMOUS need to rebuild their infastructure to reach the goals that it appears Iraq has.........Iraq is booming with business.......international businesses are lining up at the door to get in.

So yea I would definitely say they NEED an RV to be sucessful!

i dont know if they need too, but it would sure help them

Hey sonny1.........whats your buddy (the vp of the bank who you said is a member here) feel about where we are with the RV since the troops are leaving........has he heard anythng?

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i dont know if they need too, but it would sure help them

are u kidding me sonny1??? wow bro i think you are falling off the deep end you think they would trade the dinar internationally at 1170 LOL get real man. They dont need an Rv to function of course not but they need to raise the value at some point for the people and for them to trade on a global scale what confidence would people have with the dinar being traded at 1170 rate wtf is that?

Edited by easyrider
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No, of course they don't have to RV. The grand assumption has always been that they HAVE to RV. That's just ridiculous. There is no compelling reason that they have to RV. The exchange rate is a straw dog argument. Many countries have a currency with a similar or even lower exchange rate to the US dollar. South Korea is one of them. The won has a nearly identical exchange rate to the dinar. Yet South Korea is a healthy, vibrant economy (relatively speaking) with a huge export sector. An exchange rate does NOT determine the success or growth of an economy. If an RV is all it took to create a successful economy in a country with considerable natural resources, why don't we hear about an RV for any countries in Africa? Or Russia? These countries are absolutely loaded with oil, natural gas, rare earth minerals, trace minerals and industrial elements. There's not a single historical example that people can use to show you how an economy suddently grew because they revalued the currency. People that tell you it HAS to RV are misleading you. Don't be fooled.

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Come on, YES lets look at Korea.

Who is keeping that country free?

The US Army. They have and will have thousands of troops stationed there with the threat of the NORTH.

They have NEVER BEEN nor do they seek to be independent.

Hate to remind you but Japan is the exact same way.

The US military provides 100% of their national defense.

You can NOT compare Iraq to any other country! :blink:

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What is there to Revalue? It is what it is. How can Iraq just come out and say that their overprinted, near worthless currency is now worh considerably more and the nation is now richer? Who's going to buy it? That's like the now defunct government funded solyndra solar panel debacle. They made far more than there was a demand for and they were overpriced. Is the solution now for the U.S. government to just declare the panels more valuable, because of their great potential and the fact they're government backed?

Gee wiz, people are really getting desperate here

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If they use the USD....they think of things like a dollar. Now, we want them to use the IQD. Hmm. Should I mess with them and make it worth a dime? (Sorry Adam) No. We have to make the IQD at least equal to what they are used to. I friggin dollar.

Am I the only only one that sees that?

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Does Iraq even need an RV to be sucessful? someone pointed out in another thread, they have oil and gold and all sorts of assets, they really don't need an RV do they? I hope I am wrong but I never thought about this before.

To be successful? No..... your exchange rate doesnt determine your ability as a country....there are many "lower than the dollar" that are not failing, but actually growing and on the right track, you could say they are in fact successful countries.

To be honest they have been very successful so far coming from what happened.....I think their exchange rate will go up as a result of them becoming successful first. They have been doing just fine at 1170....it will go up, but their success is not based on a RV....

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Also worth consideration is that they have increased their foreign reserves from 0 to $58 billion, while moving the exchange rate up and bringing inflation down.

They have moved the rate from around 4000:1 to the 1170:1 where it is today. That is over 50% increase in value, again, while lowering inflation and building foreign reserves.

At $58 billion in foreign reserves, they have just crossed over into the positive column as far as backing the exchange rate.

A massive increase in the exchange rate would be like struggling to get out of bankruptcy, paying every one off and having a very small amount of savings, then promising your thousand closest friends a new house to be paid for with your new found wealth.

They have just reached a point where they can maintain balance. Why try roller skating on ice now?

There is nothing to keep them from further increasing foreign reserves, increasing the exchange rate to reflect what can be backed, and moving the value higher.

Eventually, they will have to address the zeros.

I'm am sure there is more to it than this alone, but their track record has been steadily improving as far as ability to back the currency at the present exchange rate. I don't feel that was a coincidence.

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Under Chapter 7, out of WTO and not having to pay their debt....yes, they can stay at 1170.

But once they are no longer protected..they need to do something about their exchange rate.

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RV will help Iraqi people to start with economy growth. People will have more money power but it will only for some period. They need to use RV like generator for economy development. Good question what will Iraq export except oil and gold after RV. I think oil and gold sources are not forever. Iraq is famous in history like tradeable nations but trading without factory and industry are not guaranty for longterm success.

However we will see i hope very soon

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You can NOT compare Iraq to any other country! :blink:

I agree. Which is why people need to stop comparing Iraq to Kuwait in the early 90s. The situations are not even remotely similar. And they need to stop comparing the exchange rate of the dinar to the exchange rate of currencies of other countries with oil and natural gas as PROOF that the dinar is undervalued. The amount of oil and gas in the ground is irrelevant to the value of the currency. It's a fiat currency! It is not backed by oil or natural gas! A country with myriad natural resources is just as capable of ruining a currency as a country with very few. Just ask Argentina, Brazil, Bolivia and Zimbabwe. All those currencies have failed in the last 30 years yet the countries are loaded with gold, silver, oil, trace minerals and fertile farmland. Currencies aren't strong simply because the country has a lot of resources. I agree with you wholeheartedly. Stop the comparisons. Evaluate the value of the dinar independent of any other nation's currency. When you do, you'll likely conclude it's reasonably valued.

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Most of us always knew that there was always a possibility that this could go bad and knew the chances that we were taking.

But seeing how this breakup didn't end very nicely has me concern.

Most people have wrote it off as nothing so we'll see over the next few weeks as to where we're.

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