_There has been a lot of rate debaters out there in dinarian land with rates from a LOP, .86 to above $8 and will the dinar be pegged to the US dollar or the British pound. I decided to write this document in hopes to shed some light on the rate debate and on what that rate maybe. No matter the rate when the RV?RI actually occurs, is what it is and will only fluctuate here in the US by the rising and falling of the dollar.
Of course, if the Iraq Dinar (IQD) is pegged to the Great British Pound (GBP) the greater the value here in the US and if pegged to the US dollar (USD) the lower the value. But first we must look at some history of the IQD before we can get some real idea of what it maybe at RV?RI.
History from the Central Bank of Iraq: http://www.cbi.iq/index.php?pid=History
In 1956 the National Bank of Iraq became the Central Bank of Iraq. Its responsibilities included the issuing and the management of currency, control over foreign exchange transactions, and the regulation and supervision of the banking system. It kept accounts for the government, and it handled government loans. Over the years, legislation has considerably enlarged the Central Bank's authority. In 1959 the peg was switched from the British pound to the United States dollar at the rate of 1 dinar = 2.8 dollars.
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On July 14, 1964, all banks and insurance companies were nationalized, and, during the next decade, banking was consolidated. Following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778.
By 1987 the banking system consisted of the Central Bank, the Rafidain Bank, 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.
History from Wikipedia: http://en.wikipedia.org/wiki/Iraqi_dinar
The dinar was introduced into circulation in 1932, by replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 13⅓ rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars. By not following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778, before a 5 percent devaluation reduced the value of the dinar to US$3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate.
After the Gulf War in 1991, due to UN sanctions, the previously used Swiss printing 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 sanctions placed on Iraq by the United States and the international community and excessive government printing of the new notes issue, the dinar devalued quickly, and in late 1995, US$1 was valued at 3,000 dinars.
I will not go back any further than 1964 for this writing as it is really not relevant for now, even though at one time in the history of Iraq the IQD was worth as much as $4.47 to the USD, when the IQD and USD were still on the gold standard.
As you can see from the history above at one time the value of the IQD was 3.3778 before Sudam Husein came into power. Then the IQD was devalued by 5% to 3.2169 until the war and fall of the dictator where the value became 1USD could purchase 3000 IQD. Now we all know from the CBI and other sites that the IQD is now worth 1170 Dinar for a Dollar.
In the past months there has been speculation that the value of the IQD will be anywhere from .86 to above $8 USD. Where these speculations are coming from is really someone’s best guess and quite frankly so is mine and that’s all we really have until the day comes. But, let’s see if we can make some sense out of what it maybe.
If the IQD is pegged to the GBP, then the value will be higher in the US by 1.55 times higher or whatever the fluctuation is for that day between the USD and the GBP. At the time of this writing it is 1.55 times. So, if the IQD comes out at .86 pegged to the GBP, then the IQD here in the US will be worth $1.33. On the other hand if the IQD is worth 3.3778 pegged to the GBP then the IQD would be worth $5.23. These figures of course are if the IQD is pegged to the GBP and will only be used if the Globalist decides if they want to be real greedy.
The globalist documents have told us that the value will return to pre-sudam, which in my opinion was 3.3778 as provided above in the history section and maybe with some inflation built in the value. Some have said that the value of the IQD is in the budget of Iraq by dividing 90 billion dinars by 26 million US, which gives us $3.46, which would come to reason with a little inflation built in. So here’s that big question again, is the IQD pegged the GBP or USD?
The MIT team in their a class some time ago showed that the IQD could very well be pegged to the GBP with some proof behind it showing forex screen shots. So, if this is the case then at the 3.46 rate pegged to the GBP we will see here in the US $5.36 and is pegged to the USD $3.46.
My best guess is that the IQD will revalue at somewhere between a LOP and .86, 1.13, 1.32, 3.37 and 5.36 USD depending on whether the IQD is pegged to the USD or the GBP and no more or no less. Remember this is best guess and it’s all rumor until the day the money is in your hands. In other words we read articles that seem to be smoke and get Intel that seems to go nowhere, until the day then we know for sure what the rules are.
God Bless All,