This is old information, most reported was in 2004, and with all that has changed since even the last month, it is all useless now, so perhaps you should do some real due diligence rather than posting outdated information from outdated links which you are conveniently posting. This is the typical I HATE EVERYTHING mode so many here take, so you are nothing but the typical LAZY naysayer about everything, right? Do your homework junior, the BBC reports only negative news on Iraq, always has and always will, because they hate Bush and Blair, so dig deeper.
Junior has done her homework and the teacher has given her 100%.
Do you listen to the news at all. Everyday there are a least 100 people killed, mostly law enforcement and military personnel. The insurgents are able to blow the hell out of just about anything they decide to target.
Today 27 bodies were discovered in Northern Iraq and another two dozen were killed in a suicide bombing. This was broadcast on every network and all their affiliates. It has nothing to do with the BBC, They can't report it if it din't happen.
Yesterday and the day before were no better.
Iraq is teetering on the brink of civil war. The US military presence is the only thing preventing an all out slaughter among the factions and even that isn't providing any stability.
Are you buying or selling. If you are buying Iraqi Dinars email me. "Junior" has some dinars for sale.
I won't hold my breath waiting for your email because I am willing to bet that you are selling. I will bet either all my dinars or all my picpay.
They are both equally worthless as is your investment advice.
When ever you find an investment opportunity, you will always have naysayers and advocates, so until an investment is determined to be a winner or loser, I think it is wise for everyone to do there research and due dligence as I have. Simply search for new Iraqi dinar 2005 and you will be able to make a wise decision.
Does the Iraqi Dinar still look like a good investment? Maybe? If you plan to sit on it for a 100 years and if there is such a thing as the Iraqui Dinar in a 100 years. I'd compare it to US Confederate Script. (Worthless except as a novelty)
Does the Iraqi Dinar still look like a good investment? Maybe? If you plan to sit on it for a 100 years and if there is such a thing as the Iraqui Dinar in a 100 years. I'd compare it to US Confederate Script. (Worthless except as a novelty)
Interesting,
Isn't it fun when we can go back and see what opinions some people had on different issues and see how foolish some comments were. LOL
A number of people have begun touting so-called "investment" opportunities in the Iraq Dinar as a "sure way" to make a lot of money with little or no risk. Many of our clients have asked our opinion on the legitimacy of this.
Is "investing" in the Iraq Dinar a sure way to profit? We don't think so. In our opinion, buying the Iraq Dinar is a high risk investment with a poor outlook.
A Little History
The official rate of the old Iraq Dinar, $3.22 USD (U.S. Dollars), was set in 1982 by Saddam Hussein. The old Iraq Dinar could not be freely traded, so this rate was never tested or upheld on the world market.
The current Iraq Dinar (IQD) was introduced between October 2003 and January 2004 by the Coalition Provisional Authority in close consultation with financial experts from Iraq and the international community. The IQD is currently valued at a little less than seven hundredths of a US cent. (1 USD = 1460 IQD). The old "Saddam" Dinar has no current value and is worth only what a collector is willing to pay for it.
What's Happening Now?
The IQD is not freely traded, and is not being used in any significant international transactions. We are unable to locate any official bank or foreign exchange office outside of Iraq that will exchange the IQD.
The IQD trades on a very small, tightly controlled exchange. The total volume of IQD traded by the Central Bank of Iraq is in the thousands of dollars, compared to the $1,900 billion dollars traded on the Foreign exchange market every day. This small number of trades makes the IQD's value effectively immaterial.
The Central Bank of Iraq's stated objective is not to promote the free trade of IQD, as is the case in a true free market economy, but rather to keep the value of the IQD stable. The only way the Bank can ensure the semblance of stability is by tightly controlling the exchange of IQD on the market, and by ensuring that the currency cannot freely trade on the open market. They evidently fear that open trading of the IQD would lead to a rout in which the value of the IQD would sink to practically nothing.
Consider the situation. Why tightly control the trading of the IQD if it is likely to appreciate in value? If the value of the IQD were to surge, this could be held out as evidence of a surge of confidence in Iraq's economy. So why not open the IQD to free trading? Why would this be done unless the Iraqi Central Bank itself feels that the IQD would decline in value in a free market?
A Snapshot of Iraq Today
The current situation in Iraq is pretty grim:
Over a decade of international economic sanctions and a devastating war has left the infrastructure in tatters
$125 billion of external debt
Millions of dollars in post-war debt
No stable government
Insurgency steadily on the rise
Oil facilities and pipelines are sabotaged regularly
Many (including the former Prime Minister of Iraq) predict out-and-out civil war
These aren't the kind of conditions typically conducive to the creation of booming economies. More to the point -- a 450,000% increase in the value of the IQD (as predicted by some of its promoters) seems ridiculous in the face of these challenges.
But Surely There's Oil Under Those Dunes?
A lot of the hype over the IQD centers around Iraq's vast oil reserves and their supposed economic value. The oil market is extremely unpredictable. An economy based on oil alone (oil makes up 95% of Iraq's foreign exchange earnings), will mirror that unpredictability. Let's look at a real-world example: Venezuela.
Oil accounts for 80% of Venezuela's national exports and 50% of its government revenues. The country is one of the world's top five oil producers. In the last four years, Venezuela has experienced intense political instability, including an oil strike and an attempted coup d'état. The resulting economic chaos has led to the extreme devaluation of the Venezuelan Bolivar -- today, it is worth only about a third of its US Dollar value from January 2000, and only about a quarter of its Euro value from January 2000.
Investing in a country's currency is tantamount to investing in that country's economy as a whole, not in any single commodity. Investing in the Iraq Dinar is not the same as investing in Iraq's oil.
But What About Kuwait?
Promoters of the IQD like to compare Iraq now to post-Gulf War Kuwait -- but this is comparing apples to oranges.
Before the Gulf War, Kuwait had a stable government and its foreign investments generated more income for its economy than its oil did. After the war, despite losing a third of its pre-war investment portfolio (over $100 billion USD), Kuwait still had a solvent economy, a stable government, and an intact infrastructure. Of course its currency increased.
In comparison, Iraq entered the war with a $125 billion USD debt, has almost no infrastructure, no stable government, and no other foreign income except its oil -- the vulnerability and unpredictability of which we have already pointed out. The outlook for its economy and the IQD is grim for the foreseeable future.
In late 2004, the US was successful in convincing some foreign creditors to "forgive" some of Iraq's debt. However, debt forgiveness is seldom a blessing, and generally comes at a very heavy price. Other countries whose foreign debts have been "forgiven" have found it nearly impossible to generate any foreign investment afterwards. Think about it: how would you feel about investing in Iraq again if you lost your entire investment (i.e. you "forgave" it) last time?
If it Sounds Too Good to be True...
Ask yourself one question: if the Iraq Dinar is such a hot commodity, why would anyone in the know be willing to sell it to you? If you thought that the IQD was going to multiply in worth by hundreds of thousands of percent, would you sell it? Of course not -- you'd be too busy buying as much of it as you could.
But if you thought that the IQD was going to go down in value over time, well, then you might start trying to convince people that it was a "great deal" so that you could get rid of all of yours before it nose dives.
Remember the old saying: if it sounds too good to be true, it probably is. Be careful!
More Information
Additional information on this issue can be found through the following links:
General Reference: An Overview of Life in Post-Saddam Iraq (BBC)
May 18, 2004: Dinar Dupe: Currency Con Man Touts Value of Iraqi Money (NBC/KFOR)
Jun 15, 2004: Dinar Falls Victim to Violence (IPS)
Aug 10, 2004: Stupid Currency Tricks: Iraqi Dinar (CNN)
Jul 10, 2005: Allawi: This is the Start of Civil War (The Times)
Aug 28, 2005: Sunnis Reject Iraq's New Constitution (AP/ABC)
Sep 18, 2005: Relentless Rebel Attacks Test Shiite Endurance (New York Times)
Sep 19, 2005: What has happened to Iraq's missing $1bn? (The Independent)
Sep 23, 2005: Saudi Minister Warns U.S. Iraq May Face Disintegration (New York Times)
Oct 4, 2005: UN condemns Iraq charter change (BBC)
Oct 10, 2005: Sunni-Shiite Religious War in Iraq Feared (AP/Yahoo)
Oct 18, 2005: Iraq vote counts 'point to fraud' (BBC)
Oct 24, 2005: Fate of Iraqi charter in balance (BBC)
Nov 1, 2005: Iraq rebuilding 'hurt by attacks' (BBC)
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Conclusion:
Those promoting the Iraqui Dinar are scammers trying to sell of their worthless currency just like those that unloaded their PICPAY to unsuspecting newbies.
Do you want to buy some dinars? Yes or No! If there is a shortage it is because the exchange of dinars is tightly controlled by the Iraqi Central bank to prevent them from becoming completely worthless.
As you say, we will see, and as with PIPS I will be right and you will still be scamming for a living.
Last edited by iamme : 11-11-2005 at 05:43 PM.
Reason: spelling
Re: Iraqi investments New Dinar Offshore-Wealth
Hybrid Mode
