Iraqi Dinar Discussion Board

[Trinityz1]

Here's some trivia from a positive minded person:

Fact, when Saddam came to power in 1980 the Iraq GDP was ~130 billion.
Fact, by 1990 Iraq GDP had dropped to ~57 billion.
Fact, with the invasion of Iraq in 2003 its GDP dropped to less than 38 billion.
Fact, the Iraq GDP experienced more than a 50% growth rate in 2005.
Fact, with the increase in violence in 2006 and early 2007 the GDP growth rate experienced a negative.
Fact, since the surge the the Iraq GDP has increased to ~ 87 billion GDP purchasing power.
Fact, in late 2006 and early 2007 we experienced a gradual appreciation in the dinar because of GDP growth in 2005.
Fact, that growth rate stagnated in 2007 because of the increase violence and a slowing of GDP growth.
Fact, the Iraq dinar has resumed appreciation because of a increase in GDP growth.

Fact, the new dinar was based on a economy of with a GDP of ~ 38 billion and its appreciation is due to the fact that that economy now has a GDP purchasing power of ~ 87 billion.

How does this occur?
Fact, the GDP of Iraq is ~ 95% exported oil.
Fact, as oil exports increase so does the GDP.
Fact, as a nation experiences GDP growth they also experience inflation. While there are many methods of combating inflation it is a fact that Iraq has chosen the method of decreasing the amount of dinar in circulation, making them more scarce, and increasing their value. As dinar are decreased they increase in value to compare with the GDP.

Fact, if you have purchased dinar with a foreign currency a lop will neither increase or decrease the value of your purchase but will only make its use more convenient or inconvenient.

Fact, the value of the dinar will continue to appreciate, (lop or no lop) as long as the the GDP of Iraq continues to increase and Iraq continues to fight inflation by the present method.

Fact, a increase of 1/2 million barrels of oil would increase Iraq's GDP to ~ 150 billion and would challenge Venezuela's GDP of 180 billion. Iran's GDP is 620 billion.
Fact, a increase of 2 million barrels of oil/day would increase Iraq's GDP to ~ a trillion.

Fact, if one believes the Iraq oil imports will decrease or remain stagnent, they should sell their dinar.
Fact, if one believes Iraq oil exports will increase they should keep their dinar.

Fact, a instant RV of 1-1 with the US dollar is impossible with the current Iraq GDP Unless they can instantly decrease the amount of dinar in circulation by ~ 90%. The present Iraq GDP would not support a 1-1 RV and neither would it be sanctioned by other countries and the IMF. Currency has to have support and that amount of currency could not be supported by Iraq.

Fact, the Iraq dinar has RV'ed from 1475 to 1220 in a little over a year.
Fact, the Iraq dinar RV is ongoing and I hope it continues RV!!!!!