To Reach A Value of 1:1, USD:IQD In Two Years

[coldwarvet]

Fellow Dinarians,

This is an FYI on a purely hypothetical situation. I recognize that, in the final analysis, the CBI can do just about anything it wants regarding the RV. However, if the CBI RVs on January 1, 2012, and follows the current legal guidance (i.e., that the value of the IQD can change only 2% every 90 days) going forward, then here's how the next two years' values would play out to reach a 1:1, USD to IQD value:

1Q/2012: .8507

2Q/2012: .8681

3Q/2012: .8858

4Q/2012: .9039

1Q/2013: .9224

2Q/2013: .9412

3Q/2013: .9604

4Q/2013: .9800

1Q/2014: 1.000

Again, this is a purely hypothetical scenario. However, it does address both the current legal guidance AND the public statements by GOI and CBI officials regarding their collective desire for the IQD to have a value comparable to the USD.

[Alex38]

Fellow Dinarians,

This is an FYI on a purely hypothetical situation. I recognize that, in the final analysis, the CBI can do just about anything it wants regarding the RV. However, if the CBI RVs on January 1, 2012, and follows the current legal guidance (i.e., that the value of the IQD can change only 2% every 90 days) going forward, then here's how the next two years' values would play out to reach a 1:1, USD to IQD value:

1Q/2012: .8507

2Q/2012: .8681

3Q/2012: .8858

4Q/2012: .9039

1Q/2013: .9224

2Q/2013: .9412

3Q/2013: .9604

4Q/2013: .9800

1Q/2014: 1.000

Again, this is a purely hypothetical scenario. However, it does address both the current legal guidance AND the public statements by GOI and CBI officials regarding their collective desire for the IQD to have a value comparable to the USD.

I like it!!!!!

[Elixirbaby]

i would take it.

go rv

[Tahoe]

It looks like this example deletes the zero's first, then increments up to a 1:1. Isn't factor right now .0008507?? I don't pay a ton of attention to all this, but doesn't this scenario basically LOP and triple the investment after two years?

[coldwarvet]

No, it revalues at 1 Iraqi Dinar to .8507 US cents, and then appreciates from there to 1:1 after two years.

So in this scenario, 100,000 IQD would be worth $85,070 USD, minus fees and cash-in spread.

Correction: the revalue would be to 85.07 US cents. My bad!

[LDJ]

I like it!!!!!

So if this was your RV cash in opportunity, and you had 1m or more of idq would do all in at a single shot and run or would you do a equal amt every qtr for 9 qtr's?

[blaineage]

So if this was your RV cash in opportunity, and you had 1m or more of idq would do all in at a single shot and run or would you do a equal amt every qtr for 9 qtr's?

Depends on if there is a time limit to cash in old currency, but if this is the plan (.85 to 1.00 over 2 years) I blow out 80% immediately cause you never know what happens over there and the majority of the upside is already in. Just my opinion.

[coldwarvet]

IMO they would use whatever the new IQD value is to force an early cash-in and bring in all the large bills. I seriously doubt that cash-in window would exceed 90 days.