Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
This is who your dealing with... in his own words.
This was when Medic spread the rumor that the banks had been officially advised of the new rate. the day after the rumor didn't come true. This is just one of the 100 or so rumors he's spread that didn't come true.
7:27 PM [sfmedic] I asked for my friend to please confirm where he got the info from
7:27 PM [sfmedic] he did not get if off the currency exchange for the bank
7:28 PM [sfmedic] he called the broker that they recieve their currency from (so his friend who he got the info from is a dealer)
7:28 PM [sfmedic] it was the broker that told the Bank President that it looks like all the banks in the US were notified
7:28 PM [sfmedic] that the dinar is going to be coming out
7:29 PM [sfmedic] the brokers as you know if you don't
7:29 PM [sfmedic] are the middle man between CBI and the banks and CBI and ALI
7:29 PM [sfmedic] Ali does not get his dinar from CBI
7:29 PM [sfmedic] CBI does not sell to traders
7:31 PM [sfmedic] so the brokers would be the first to know what was going on is the brokers
AND, in reference to the zero lop articles.
[SFMedic] The Ministry of Finance told Ali that in no way are they considering the lopping of any zero's and that it would be a global disaster with all the countries who are holding dinar from Iraq.
How someone can admit in thier own words that his info comes from dinar brokers and dealers... and somehow remain credible... is stunning.
Ali is the guy behind all these pumpers. He's making a fortune and paying these guys to pump rumors.
LOL... just listened to it.
This clown/crook is working behind the scenes with Medic and other pumpers putting out rumors of emminent RVs at $1 to $3 per dinar. Claiming he has contacts at the Ministry of Finance.
Then on CNBC... he says it's a currency... it will grow slow... as the economy grows.
This guy needs a jail cell right beside RUFUS! Although... I'm not sure he's doing anything illegal... he's just taking advantage of peoples ignorance.
He... just himself is selling 1/2 billion dinars a day. Staggering.
Did Ali show the 1 dinar note he has???? Did he explain any of the 100's of done deal, gonna RV in the next day or so rumors that he’s been responsible for.
What happened?
LOL... I'm no lib, but I'd say Eddy R must be you son or brother. After what he posted you pick me to call out. Hilarious... thanks for the laugh.
Anyone still believing Medic's lies... is the epitome of an Idiot and should have their picture in the dictionary right beside the word.
I’m just amazed Cramer would propose an ETF for a pegged currency. How would that be possible? Pegged currencies don’t move due to market forces. The rate for a pegged currency is set by the Gov/Central Bank of that country.
Say a major financial institution starts an Iraqi Dinar ETF. Iraqi officials could buy or short the ETF and then move the exchange rate and make a bundle of $$$.
You can’t have an ETF based on something that a person or small group of people control the value of.
An ETF for a pegged currency makes ZERO sense. Cramer made a stupid comment when he said that.
You friend is listening to a pumper named Medic over at Dinar Speculation. He has put out about 50 or so reval dates in the past, always wrong of course... yet IDIOTS for some reason keep on believing him.
So… apparently Iraq is worth 8 Trillion dollars.
They currently have about a $50 billion a year GDP, so that’s 160 years to = 8 Trillion.
Even if they double their GDP to $100 billion, that’s still 80 years to = 8 Trillion.
The United States has a $12 trillion a year GDP… multiply that by 160 years that Eddie uses and that means the United States is worth $1,920 Trillion… LOL… that’s $1.9 Quadrillion.
Does the US have anywhere near that much currency?? Nope… they have about 12 to 15 Trillion… about the same as the GDP.
As I’ve shown in the past… almost all countries have a currency amount somewhere between about 50% and 200% of their GDP.
Iraq will be on the low end of that scale because a huge majority of their GDP is from oil sales which are in dollars. They don’t need a ton of dinars to support the tiny tiny non-oil GDP that they have.
The people that have suggested a lop… the people you call stupid and brainless. That would be the Iraqi Minister of Finance, two of the Senior Advisors and the Governor of the Central Bank of Iraq.
I’m not sure anyone can explain “exactly” why that is. I searched my butt off to come up with a set formula for exchange rates… it doesn’t exist. I even wrote to Jeffrey Frankel, Harvard professor about it. His response was… “According to traditional theory, exchange rates in the long run move in proportion to money supplies.”… but other factors do come into play.
I’m sure currency reserve levels and trade surpluses/deficits and other small contributors come into play.
But just looking at that GDP to money supply ranking that I put together shows that countries fall “basically” into line… and Iraq is “basically” right in line where they are. The money supply, or exchange rate could change by a factor of 2 or maybe even 3 and not be totally out of wack. Much more than that and you get some glaring discrepancies… especially if you start talking about 100’s of times larger, or even the 1170 times that would be required to get a 1:1 exchange rate.
Just a simple example…
Say SA has a GDP of $350 billion.
And Iraq grows to the same $350 billion.
And SA has 50 billion units of currency.
And Iraq has 50 TRILLION units of currency.
Then you would expect to see an exchange rate of 1 SA unit = 1000 Iraqi unit.
That’s just a basic starting point, but other things could affect it… maybe by a factor of 2, 3, maybe even 4 times… but nowhere near 1000 times.
The future value of the oil is what Iraq will rely on for years and years to come to fund it’s budgets… government spending.
If they have any left over they can add it to currency reserves which would allow them to increase money supply. That will mostly be done through issuing more currency, not raising the value of currency already in the hands of people.
Japan and China both have massive trade surpluses with the US. Even as the $ declines, they add more and more to their reserves. In fact, as it declines it directly leads to more growth in their dollar reserves. Goods and services cost more $$$ as the $ declines in value. So they get more.
Iraq will benefit slightly from the same thing… as the $ drops, oil prices will rise, but Iraq needs the money to rebuild the country/economy and that will take decades.
That's not true. The Dinar is backed by foreign currency reserves and a little gold. 95% or more is US dollars. If the dollar looses value, then the dinar looses right along with it.
As the dollar becomes worth less, Iraq's currency reserves become worth less. So it all equals out.
It would be a different story if they held Euros as reservers, then as the dollar dropped compared to the Euro, their reserves would gain in value against the dollar. but that's not the case.
Kuwait basically lopped.
Kuwait had 400 million dinars, Saddam invaded and stole billions, that dropped the street value, the official value never changed.
Once that Saddam was kicked out, Kuwait issued a new currency and checked every single bill's serial number. All stolen dinars were not honored. Only the original 400 or so million were swapped for new currency. The war lasted 7 months. One manth after the was they issued the new currency. Total of 8 months.
So Kuwait effectively lopped all the stolen dinar out of the system.
The Iraqi dinar has been out for 6 full years now, there will be no big sudden RV.
Not sure where you are pulling this number from that you claim Iraq is worth. It’s made up just like your rv of 9-30 cents number.
A countries currency is used to support it’s economy. Countries with huge economies have huge money supplies. Countries with small economies have small money supplies.
Size of economy is measured as GDP… Gross Domestic Product.
I put this comparison together back in May, numbers may have changed a bit but not much. It’s all the middle east countries that would compare to Iraq. It shows Iraq money supply is right in line with where it should be.
Current GDP vs Money Supply.
Iraq is right where they are supposed to be.
SA has 1st GDP , 382B… and 1st money supply $240B
UAE is 2 GDP, 190B… and 2 money supply, $220B
Kuwait 3 GDP, 115B… and 3 money supply, $77B
Qatar is 4 GDP,73B… and 4 money supp, $41B
Iraq is 5 in GDP, 50B… and 5 money supply, $26B
Oman is 6 GDP, 40B… but 7 money supply $19.5B
Bahrain is 7 GDP, 17B… but 6 money supply $21B
As is obvious. The bigger the GDP, the bigger money supply. If Iraq can grow the economy/GDP to near Saudi Arabia’s amount, then there money supply can grow accordingly. But it will not be done suddenly as a magical RV. It will be done slowly over time and it will be done by putting more currency into the system through government spending.
So in about 20 years, Iraq may equal SA, by then their money supply may be near equal. But the value of each dinar may not change one single bit.
Hey Eddie... how much is Iraqs dinar worth now, prior the lop?
A lop doesn't change the overall value of the currency.
Just as an example, say....
They have 30 Trillion now worth .001 = $30 Billion
When they lop...
They'll have 30 Billion worth 1.00 = the same $30 Billion.
Think about this... If Iraq was to determine they could somehow instantly double or triple (it's a joke to even suggest they'll increase it 100 to 300 times as you claim) it's money supply, why would they do it by making currency already in the hands of people more valuable? Iraq would gain nothing by that. Iraq, or any country that can increase money supply, would do it by printing more currency. That would allow the Government to increase budgets and spend the money for the bebifit of the country.
But keep believing they will RV for the benifit of speculators... Dinar dealears appreciate your participation.
LOL... Tomorrow, Oct 15th, the dinar turns 6
Yes… happy 6th birthday dinar. The dinar has been around for 6 full years now and tomorrow starts year number 7. But hey… any day now!!!!
They have announced a number of times that they plan on lopping 3 zeros from their currency. Only a true idiot would ignore that fact. A lop is the same plan that 70some currencies have done in recent history. No country ever has, nor ever will, do a large RV as just described by another poster.
If/when they lop… your friends 12 million is in real jeopardy of becoming worthless.
Supply and Demand, maybe you’ve heard of it.
If they take away dollars… and the demand remains the same, then on the street dollars will become more valuable. If dollars are more valuable then dinar are less valuable
Doubt many here would find that good.
Even if that's true. It's still a new currency that you would have to exchange for.
No one knows for sure.
A lot will depend on the length of time allowed for the exchange.
Banks will probably not touch it.
If it’s 6 months to a year the same dealers that are selling it now will buy it back, at a huge loss to you.
If they only allow 3 months for exchange, which is how long they allowed last time, it will be hard to get rid of. Dealers probably are not equipped to buy back in a month or two all the currency that they have sold over 5 or so years.
Don’t be surprised if when they officially announce the new currency… they make a statement that all currency that left the country is deemed illegal… and they try to block any from re-entering the country.
Also… please be wary of what you read on a lot of the dinar forums. They are run by dinar dealers or people working for dinar dealers. Most are deleting any reference to these latest articles and allowing no discussion of them. Those forums ban anyone who doesn’t tow the line.
The CBI shall not take instructions from any other person or entity, including government entities. The autonomy of the CBI shall be respected and no person or entity shall seek improperly to influence any member of a decision-making body of the CBI in the discharge of his duties towards the CBI or to interfere in the activities of the CBI.
1. The functions of the CBI in achieving the objectives set forth in Article 3 and as further described in this Law, shall be to:
a. formulate and implement monetary policy, including exchange rate policy, for Iraq in accordance with Section 6;
b. hold and manage all official foreign reserves of Iraq, other than working balances of the government, in accordance with Article 27;
c. hold gold and manage the State reserves of gold;
d. provide services as advisor and fiscal agent to the Government in accordance with Section 4;
e. provide liquidity services to banks in accordance with Articles 28 and 30;
f. issue and manage Iraqi currency in accordance with Section 7;
g. compile and publish data on the banking and financial system and the economy in accordance with Article 41;
This is all from the Central Bank Law.
http://www.cpa-iraq.org/regulations/20040306_CPAORD_56_Central_Bank_Law_with_Annex.pdf
The Central Bank Of Iraq is autonomous/independent from the Government of Iraq. They have the control over the currency. Parliament has nothing to do with it.
More... Central: the deletion of zeros Iraqi currency.
Advisor, Central Bank of Iraq the appearance of Mohammed Saleh, said that the deletion of zeros from the Iraqi currency will depend on the long-term monetary policy, indicating that this step requires the issuance of laws and legislation before the foot as part of the strategy for the management of the currency in Iraq.
The appearance of Mohammed Saleh, said that the need to delete the zeroes come from the "Iraqi currency bloc, which has become very large which is the product of inflationary phase lasted about 30 years rose from 25 billion to 21 trillion," he said, adding that "the largest category of cash is 25 thousand dinars, equivalent to 23 dollars, while the largest category in 1979 and the period that preceded the Iraq-Iran war and 25 dinars, equivalent to $ 75 at that time, "Today," the largest category of 25 thousand Iraqi dinars Atadl only 23 dollars in the currency of the youngest we have is 250 dinars, "and will allow the process of deletion" reduce the size of the currency bloc's cash, meaning that the paper of a thousand dinars and the dinars to become one, this means shortening the 21 trillion to 15 billion dinars, with the metal coins and small groups. Salih pointed out that the strategy aimed at the central measures "consistent with the Constitution and the economic life of good and facilitate intra-group transactions," noting that "part of the margin of the inflation rate between 1-3% is the responsibility of a large number of cash transactions is a cost in the case of deletion of that cost would be less ". On the continuing high prices despite the official figures indicate that the inflation rate to decline in favor said that "monetary policy is not concerned that the prices are back to square one, but aimed at reducing the rates of increase in prices, which were the limits of 32% in 2007, and today it fell to the increases one decimal order of the limits of 7% only, "saying the figure" a victory for Iraq's economic program, as there is no task for the central Iraqi stabilization only in the overall level of prices and stability of the financial system. "
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://www.iraqdirectory.com/DisplayNewsAr.aspx%3Fid%3D10160&rurl=translate.google.com
This is exactly what I've been saying for years. The inflation that destroyed the dinar was over a 30 year period. They will introduce a new currency. 1000 old for 1 new, 3 zeros gone, 21 trillion will be reduced to 15 billion. That means there are 6 trillion dinars out there that they don't expect to get exchanged. Hmmmmm... Where do you think those 6 trillion that will be excluded are?
Proposed removal of three zeros from the Iraqi currency
Started in the media circulated the news of the ability to direct the deletion of zeros generated by the inflation in Iraq and that the statement made by the Minister of Finance on the renaming of the categories of currency printing new banknotes...
As a result, the coins will be widespread use and the dollar = 1200 fils Iraqi again. Here it must be said that the new currency will feature a new era in Iraq and the new currency will be welcome, especially the old and that it would be of small groups to recall the golden age of Iraq's economy in the early seventies of the last century.
And people will find easier to use the new currency in terms of accounts that will be easy and uncomplicated. In addition to the coins will start trading again....
Here, emphasis must be on the issue of the utmost importance that in the case of the removal of three zeros from the currency should not affect the real value has to be traded in the old currency and gradually withdrawn until the end of 2009....
http://translate.google.com/translate?hl=en&langpair=ar%7Cen&u=http://www.alnoor.se/article.asp%3Fid%3D28607&prev=/translate_s%3Fhl%3Den%26q%3Dcategories%2Bcurrency%2Biraq%2B2009%26sl%3Den%26tl%3Dar
Some of the dinar scammers should go to jail.
CBE: soon issue a new currency in both Arabic and Kurdish
13/8/2009 13/8/2009 3:52pm 3:52 pm
An official in the Central Bank of Iraq. That the lifting of the zeroes of the Iraqi currency printed depend on the new currency soon to be issued in both Arabic and Kurdish.
The source added to the reporter (and the Iraqi News Agency Information / INA) that there are other reasons prevented the lifting of the zeroes of the associated logistics, including the public and we must carry out education in addition to that there is an urgent need for some legal and legislative frameworks that protect citizens from fraud and loss of rights because of the currency switch.
The source noted that there is a constitutional rule provides for the printing of The new currency in both Arabic and Kurdish.
http://translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://al-iraqnews.net/new/iconomi/28711.html&rurl=translate.google.com
New interview with Shabibi about dinar.
Do you expect the Iraqi dinar exchange rate of increase in the stability of its value after the?
- This question I can not answer it, because I am not a researcher in this area so I can Ajipk to this question, and the answer might affect the market.
(he can't talk about exchange rate because it will affect market)
What about the deletion of zeros from the currency, where this project?
- Is a project in mind it is a very important need for resources and a large table and that is what is lacking now, we do not have adequate staffing, which handles these cases as a result of the presence of many of the issues that we deal with them, including research and the relationship with the International Monetary Fund and the relationship with the government, which is important very.
(obviously removing zeros is not just from the exchnage rate as some have suggested because he just said he couldn't talk about the exchnage rate. A lop he is free to talk about becuase it is neutral.)
Do you have faith in the issuance of large segments of the currency?
- This project is also in the mind, but there are a lot of priorities and we are waiting how things evolve?
But first delete the zeroes or the issuance of the currencies of large groups?
(they are talking about issuing larger bill, look for a 50,000 or 100,000 dinar bill)
When deleting a logical zeroes may not need to issue a currency with the largest zeros, we have the research and studies in this area but what we need are the resources and capabilities necessary to complete this.
(they are still researching the lop)
http://translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://almadapaper.net/paper.php%3Fsource%3Dakbar%26mlf%3Dinterpage%26sid%3D73294&rurl=translate.google.co.uk
How hard is it for you to understand that I didn't write that. I didn't come up with the name Richard Nass. It was Medic and his friends that so many dinar investors are following like Gods. I simply pointed out what Richard Nass really means. I apologize if that offended you... but I feel what those guys are doing to people is much more offensive and it needs to be exposed.
CBI history
http://www.cbi.iq/history.html
From the new Cental Bank of Iraq web site.
By 1987 the banking system consisted of the Central Bank, the Rafidayn Bank, and the Agricultural, Industrial, and Real Estate banks. A 5 percent devaluation reduced the value of the dinar to US$3.2169, the official rate which remained until the Gulf War, although in late 1989, the black market rate was reported to be 1.86 dinars for US$1.
After the Gulf War in 1991, and due to the economic blockade, the previously used Swiss printing technology was no longer available. A new, inferior quality notes issue was produced. The previous issue became known as the Swiss dinar and continued to circulate in the Kurdish region of Iraq. Due to excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.
Anyone trying to tell you the dinar was worth $3 just before the war is wrong.
Here the Central Bank of Iraq is saying the dinar had dropped to $1.86 by the late 80s and then collapsed to 3000:1 by 1995. That's 14 years ago.
Amazing that you guys have nothing negative to say about the guy that wrote this crap. You only get mad when I point out what scammers these guys are.
LOL... yeah... I'm sure you like Medic and his buddies.
Maybe you can even have a personal meeting with Richard Nass. I'm sure you would like that.
I post facts... if you would like to try to dispute those facts I would be happy to talk to you.
You guys did get it didn't you?
Richard Nass
or better know as...
Dick N ass
It's amazing what some people fall for.
This is what was posted... lol.
Look at the guys name, at the end.
LOLOLOL
BOA New Group Cashing Out Deal
This special deal will be available for anyone who has the CODE. The code will be the same code used in Canada, Uk and the USA. This code will be posted on SFMedics personal/private site and One Dinar Site. ( AND ME).
Background on what’s developing behind closed doors with BOA is this: A very small group of employees are totally aware of what is going on with the dinar. They are mostly Presidents, Division Presidents, A few VP’s and a hand full of major branch managers. So out of the 300,000 associates only those in the KNOW .........know what is going on. Do Not Call The Banks until after the RV/RI!!!!!!!!! Nobody you will be
talking to will know nothing and you just hurt the group bugging the bank before they are all in the know. Corporate is trying to keep this very secretive and quit. How is it currently working is the Foreign Currency Department is checking numerous times a day for the update and
release of the rate from our Treasury. Once it hits their boards within an hour to hour and ½ we will have our negotiated rate set. The CODE will be posted for the group to get the established rate. People then can start going to their local branches for the exchange. We are setting up Wealth Management Meetings in Tyler TX, Douglasville GA, and
Mason City IA, due to the large groups exchanging in those cities. We will keep you advised. For those in the UK, BOA is working with Barclays for the exchange. For anyone in Australia they are working with Westpac. Anyone in Canada can open a BOA account online and work with the Bank of Nova Scotia upon RV/RI.
They will have extended hours for several days post RV/RI. They will also have additional staff on hand at major locations. In response to instant access to funds, BOA has what is called ‘Instant Issue Card’ you will leave the bank with a pre loaded credit card with $250,000.00 to spend, that’s if you cash out more then $250,000 and put it in for
deposit. This is like a temporary debit card until your personalized card is issued. They will be available AT ALL BRANCHES. This will be a picture I.D. card that they will issue overnight. There is no charge on these cards. All the deposits will batch and present overnight. In most cases full access to all your funds will occur within 24 hours. Deposit
after 2:00PM possible 48 hours. They will also offer you a full line of credit. Personal banking reps to assist you
in setting up your estate. They are looking for long term customers and they will cater to you 100%. They will try to keep as much of your money in house as possible, which is only good business. Remember - diversify!!!!
You can open an account the same day you cash out, it only takes about 10 minutes. Minimum deposit is $25.00. They have an 8 page application on line if you want to get that done in advance. Canadians should get this done so the can deal through Scotia Bank and get the BOA deal. This group has been working now for about six to seven weeks with BOA corporate
offices in Virginia. We are about 3000 to 5000 strong, repre- senting about twenty-one Billion Iraqi Dinar!! This deal is a signed and binding contract!! They are getting ready for this to happen. Within hours of the RV the CODE will be given out to me and then to you. The rate that they give us will be locked in for 2 to 3 days, but maybe a week, if we are lucky. So drop everything you are doing and get to a big or small branch. Leave some in BOA bank to use as a holding tank
while you are setting up your estate. In my opinion it would be wise to exchange it into Canadian dollars and make a little money in the process (Canadian dollar 91 cents 7/29/09. No one knows the day or the hour when our dollar will collapse and the Amero ushered in. Not to start preaching, but be wise people! BE WISE!!!!! Remember this is only one option - we have the dealers, Ali and
Abraham. Please DO NOT CALL THE DEALERS (rates will be given after the RV/RI!!!
Do not call me (Richard Nass) or the Bank of America until after the RV/RI! I will not have the CODE until then. Until then though - DO SOME PLAN-NING - SHOP AROUND FOR THE BEST EXCHANGE AFTER THE RV.
Richard Nass...
Think about it. Don't make me have to explain.
How can you make that statement without looking at the amount of currency each country has?
Saudi Arabia has about 85 billion in cirulation, Iraq has about 20 trillion. So Iraq has 235 times more currency in circulation. Now take Iraq's rate of .00085 and multiply it by 235 times and it comes out to about 20 cents. Not that far from SA rate.
Do you really think Iraq can have same rate as SA while having 235 times more currency?
Rick... the 2 million barrels of oil Iraq sells every day, they get dollars for that.
Businesses and such need dollars to do international business. So the banks buy dollars for their costomers, the businesses.
The Iraqi Gov needs dinars to run the country. So they gladly sell the dollars to the banks for dinars. That keeps the money supply in check because if they didn't buy back currency they would have to print more new currency.
The United States does this with taxes. The Gov takes in about $3 trillion a year in taxes and should have a budget of about $3 trillion a year to keep everything equal. Obviously, the budget part has gotten pretty screwed lately and that's why we've read and heard stories of the US just printing money, and that's why the dollar is in trouble.
Big RV is more than mystical, never happened before. Lops happens all the time and are specifically for "undoing the damage" as you say... about 70 in the last 30 years. That's more than twice a year some country does a lop. Hardly mystical.
Of course it does. When they created the new dinar they did a 1 for 1 exchange with the old dinar... so they had to honor all those dinar that Saddam printed up. The amount of new currency that was put into circulation was a DIRECT RESULT of Saddam running the printing presses.
The next currency they print will be exchanged at a rate of 1000 for 1 and they will reduce their money supply back to around 30 or 40 billion. And with that the rate will be back near 1:1.
I have done the research. Nowhere did I say no one made any money. There was a small group of people that made out pretty nicely on the Kuwaiti dinar. But it was only people that were walking around on the streets of Kuwait who happened to come across someone wanting to sell their currency. The FACT is there was less than 400 million Kuwaiti dinars at the time. What % of that small number of dinars do you think got sold?
You can continue to believe as you will, but it is obvious that you don’t know the difference in real research and the lies spread by dinar dealers and their paid pumpers.
Yes... most of those dinar sites are owned by dinar dealers, and the more popular posters are paid to post by the dealers.
That is a fact.
Show me where that ever happened. You have been scammed to believe that Iraq is similar to Kuwait.
Here is the truth. The Kuwait dinar never changed in value one bit. Kuwait had less than 400 million dinars in circulation when Saddam invaded. Again... less than 400 MILLION!!! Saddam broke into the central bank and stole billions. So with that much out there, some people panicked and sold their currency for what has been reported as little as 10 cents, but remember, there was only 400 million total, so just how many got sold. The invasion lasted about seven months, one month later, that's a total of 8 months after the start, Iraq issued a new currency. They checked the serial numbers of every dinar people tried to exchange and they did not honor any of the stolen currency. So they had less than 400 MILLION dinars to start and after it was all over they still had less than 400 MILLION dinars. The official rate of the Kuwaiti dinar NEVER changed.
On the other hand... Iraq had a decent rate back around 1980, they at that time had a money supply of about 30 BILLION.
It is now 28 years later. The Iraq-Iran war destroyed the value of the Iraqi dinar, the first gulf war then destroyed it further, sanctions then added to the decline. All the while this was happening Saddam was running the printing presses and increasing the money supply into the TRILLIONS and it now stands at close to 40 TRILLION. Saddam dictated that the official rate remain 3:1 but nobody got that rate.
The Iraqi dinar started plunging in value in the early eighties.
So... to sum it up...
Kuwait, starts with 400 million and eight months later still has 400 million and that explains why they had the same rate.
Iraq starts with 30 billion and 28 years later has 40 TRILLION. That's over 1000 times more currency and explains perfectly why their exchange rate is now over 1000:1.
So yes, you have fallen for a scam to believe that Iraq is somehow like Kuwait.
Rick, Iraq is not buying dollars. Iraqi banks are buying dollars from the Central Bank of Iraq. The banks customers need the dollars to conduct international business.
They can't just increase the value of the dinar substantially. People pushing that idea are pushing a scam.
Kuwait never did RV, and any talk of Iraq doing a large RV is a scam.
This is the guy that said a number of times that they had decided to lop 3 zeros.
29 September 2008 (Iraq Directory)
The Central Bank of Iraq consultant, stressed last Wednesday, on the bank's determination to proceed with the project to delete the zeros of the Iraqi dinar to convert thousand dinars to one dinar, referring to the adoption of long-term plan for the project, which would be reluctant to the huge cash in Iraq.
Dr. Modhir Mohammad Saleh, added that "the bank will rely, in any case, on a long-term plan for the implementation of the project, in order to avoid any disruption reflected in the cash arena, which will move on based studies and slow and accurate resolution of all problems in the trading bloc committed a result of enormity of bulging cash in the Iraqi market. "
The factors of this action, which he described as very important by saying that "Iraq is one of the countries hit by hyper-inflation in more than two decades ago, reflected in monetary hyperinflation, for example, the monetary issuance increased of approximately 25 billion dinars in the early nineties, to be in 2003 Six thousand billion. "
He added, "If we add significant structural changes on the size of the budget that is the source of expansion in the monetary bloc, we can say that the country does not have the ability to stand such circulations in a large amount of cash currency units, a legacy of a hyper-inflation."
And that "many countries of the world suffered from this problem and turned their economies towards relative stability, it must find a solution to curb the enormous mass of cash to facilitate exchange of cash in Iraqi society, which mainly deal with cash money rather than the use of advanced banking payment."
He added, "This means we need urgently to the availability of substantial monetary of value and with small-scale to return to the easy system of payments and lead to facilitate transactions."
He cites the example of the saying that the category of 25 dinar in 1980 was equivalent to more than $ 75, the largest category of cash at the time, while in the highest category at present is the key category of 25 thousand dinars, and equals only $ 23. "
He added "to notice the difference .. that Iraq needs to have banknotes with high value and small size to facilitate the exchange and perform the functions of the various money."
Saleh continued of clarifying the problems impeding the performance of existing cash, saying: "One of the problems is " dollarisation "the Iraqi economy, the demand for one hundred dollars category to facilitate large transactions paid in cash, which represents about 120 thousand dinars, which means that the actual Iraqi economy needs to Category or categories of high value cash to facilitate the exchange especially in large deals. "
And about the contentment of the Bank's approach to the deletion of zeros, the central bank consultant said "the studies intend in this regard to circulate a new categories gradually and comfortably, and not limited to the replacement."
He noted that "this will give a lot of prosperity and stability in the availability of high and strong liquidity to facilitate transactions in line with the stage of growth and optimistic economic prosperity that Iraq will see in the months or years to come." He added, that "relatively long-term project would be included in the cash economy gradually that to add a lot of comfort and harmony in the economic situation."
The "trend is the deletion of three zeroes, instead of dealing with monetary issuance of $ 18 trillion dinars, our economy will deal with not more than 15 billion dinars, a mass of different categories to facilitate criticism, circulation and encourages banks to accept cash deposits."
"We know for example that one of the biggest problems at the present time the problem of counting and verification of counterfeit currency or the offense, and this burden to the banking system, and a burden on the citizen as well."
The central bank consultant concluded to say that "low cost counting and other leads to a decline in inflation by an estimated rate of 3%, resulting from the cost of cash transactions of large deals, as a citizen in Basra for example, wants to transfer funds cash to Baghdad through the category of dollar, he has to burden and costs of commissions coming from the conversion process. The cost added to the prices of transactions inevitably.
http://www.investorsiraq.com/showthread.php?t=96822