Iraqi Dinar investments

[sirmanga]

Originally Posted by yuanbao

Thanks Dinarman. A good option for us to purchase dinar here.
Thank you.

He's not helping he is promoting one of his scams

[nrgexplosion]

I bought 150,000 of these worthless dinar notes a couple years ago. They're still sitting in my laptop bag. I think that's worth what like 70 US now? Except you can't cash them in outside iraq. My cousin is over there training the Iraqi army. It's not a pretty picture to put it mildly. Its an ultra risky investment but if you like to gamble just make sure that the dinars you get are authentic. I've heard a couple stories floating around about people getting bills that "smudge off"

[DINARMAN]

Originally Posted by sirmanga

He's not helping he is promoting one of his scams

What are my other scams? If this is 1 of them.
Make sure you go to Chase Bank and Regions Bank and accuse them too. Because they are buying and selling dinar.
I'll be sure to come back when it hits and rub it in your... you know.

By the way, keep promoting your HYIP junk.

[Offshore-Wealth]

Gulf currencies surge on revaluation report
Arab News - 29/11/2007

MENAFN - Arab News) The United Arab Emirates dirham surged to a 17-year high, leading a rally in regional currencies as investor piled pressure on Gulf Arab dollar pegs, encouraged by a report that a revaluation could come as early next week.

Kuwait, the only Gulf Arab oil producer that tracks a currency basket, allowed two dinar depreciations in one day yesterday, the first time it has done so since the central bank dropped the dollar peg on May 20. The bank usually sets the day's reference rate at 0500 GMT.

The Saudi Arabian riyal hit a 21-year high and the Qatar riyal a five-year high on speculation that other central banks would follow Kuwait's lead and unshackle their currencies from the tumbling dollar to contain inflation.

Currencies in the world's biggest oil exporting region have been rallying since UAE Central Bank Governor Sultan Nasser Al-Suweidi called two weeks ago for Gulf central banks to switch from fixed pegs to a currency basket including the euro.

The Dubai-based Arabian Business magazine threw fat on the fire yesterday saying a UAE revaluation of 3-5 percent could come as early the National Day holidays on Sunday and Monday. The holidays of Eid Al-Adha, which begin around Dec. 20, would be another option for a move, the magazine reported, citing sources close to the central bank.

"The plan is to make an announcement when the banks are closed ? National Day is an option, and if not National Day then the Eid holidays later in December," one of the sources said, according to the website of Arabian Business.

The report's author, Anil Bhoyrul, told Reuters the source was not at the central bank.

A National Day revaluation is unlikely because it would coincide with a summit of Gulf Arab rulers in Qatar on Dec. 3 and 4, analysts said.

"It's not the UAE's style to shock the markets," Mushtaq Khan, economist at Citigroup Global Markets.

"The amount the magazine is talking about is in the ballpark of what we are expecting. But I don't think they will do it before the summit," he said.

Suweidi has repeatedly said he would only act in concert with other Gulf states preparing for monetary union as 2010. He and other central banker say the final decision on a revaluation or scrapping dollar pegs would be made by Gulf Arab rulers.

"I don't think anything will happen before the summit, where the parameters will be laid for either joint or individual action," said Anthony Harris, British ambassador to the UAE for four years to 1998.

Still, bids on the dirham were as high as 3.6600 per dollar, the strongest according to Reuters data going back to 1990. The currency, which has been fixed at 3.6725 per dollar since 1997, is on track to make its biggest one-day gain in 17 years.

http://www.menafn.com/qn_news_story_...yId=1093175872

[payroll]

Overview

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 unaware of any official bank or foreign exchange office outside of the middle east 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 predict out-and-out civil war, such as the former Prime Minister of Iraq and the outgoing UK abmassador in Baghdad
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. It is not difficult to see why a currency's value might increase in these circumstances.

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 as soon as possible.

Remember the old saying: if it sounds too good to be true, it probably is. Be careful!

http://www.xe.com/iqd.php

[Offshore-Wealth]

Funny,

This four year old XE drival is still funny given almost everyone who has invested has gained on the dinar, and day by day, it creeps up in value, so where is the risk? I am up over 52% so far, not earth shaking, but not bad either, just have to be patient.

Good luck to all,

[ArizonaInvestor]

Alot of the grim details in that article have now played out as positives as well!

[klompje]

I have as well some money in Iraqi Dinars invested

[hueychan]

How risky is this investment?
My uncle considering to invest

[Offshore-Wealth]

Originally Posted by hueychan

How risky is this investment?
My uncle considering to invest

Good question,

I would say the risk is less than holding U.S. dollar at this point in time. Personally, I see zero risk, in fact, I am up over 52% to date, and things are looking better every day, so do your own research and I am sure you will come to the same conclusion.

Good luck to all,