8-30-2012 Pat (Response to IBN): Iraqs Foreign reserves are held at the Fed in New York. You are correct that the current currency regime is pegged to the US dollar but this could be changed.
Most regimes never fully follow the pegged regimes guidelines. Im expecting Iraq to back their currency with AU in the future. Iraq’s current rate is false. Why? I don’t believe the CBIs financials at all.
They have been reducing the money supply and the rate does not reflect this. Hard to trust this news agency since the owners and partners work for the Gov of Iraq. Very hard to be impartial.
Read More Link On Right
8-30-2012 SWFloridaGuy (Response To IBN): A PEP is one of many possible scenarios. Another option would be for the monetary policy to target a basket of basic mineral and agricultural commodities.
A broad-based commodity standard and not just limited to a single commodity such as gold which would help average out fluctuations. As Bloomberg said in the video I provided: "Iraq is a great opportunity for investment.
They have a quickly growing GDP, a quickly growing market and there's a great deal of growth in Iraq and we think the market will reflect that. Iraq is in a strategic location and as American investors; we should be looking to put money and resources there.
Iraq still needs work but there are many sectors where there are incredible opportunities. Iraq is working through issues with the ISX as well and making progress." This statement is from Bloomberg, so if you have issues with their findings you will have to take it up with them.
DMCC (the leading commodity and currency derivatives exchange in the ME, with electronic trading accessible from anywhere in the world) just recently reported that the IQD has attracted their attention and they are looking forward to the inclusion of the IQD (along with other currencies) into the global commodities exchange market.
This article of course does not reference the mechanisms by which Iraq will achieve making the IQD a more convertible currency (RI, RD, RV etc.) but the fact that the IQD (among others) is on their radar as a currency that will add more "volume and value" in trades is an encouraging sign.
Overall, I think we can all agree that Iraq is a country worth investing in and while we all recognize that there is no precedence for a 100,000% large currency appreciation "shock" at once, there is a good chance we will prosper over time.
Investors who got in early have already seen profits. In my opinion there are far more risky financial endeavors than holding onto the IQD (I'm certainly doing far better than those holding Facebook stock). As with any investment, we cannot prove what the future holds and if it was possible to provide such luminous evidence there would be a serious problem with the process.
This is just my opinion, which may or may not be correct.
8-30-2012 4aprofit (Response to Iraq-Business News): WOW!! What am I going to report back to all the long term players in all of this? Some with 2 or 3 times the gains that they've made, as per long term holdings in their Dinars, the ISX/Iraqi Stock Exchange, Warka Bank Accounts, etc.
I just can't imagine how these 7 questions could scare then NOW! It was much worse over in Iraq when a lot of these good returns were being made...and then they stuck the rate of the Dinar for the last appx. 3 years...while everything in the U.S. for the most part...has TANKED!.
While Trillions of dollars in oil development & infrastructure moved into Iraq as it stabilized, as they've been rated the top growth economy in the world as per the CIA World Factbook, not to mention so much more that could'nt even be written on a few pages!
From what I'm seeing here and with a lot of the media is that they tell you what is good, while it is actually bad but yet they will tell us that something is bad while it's actually been good. Until the final bell has been rung as per the finality of this thing, what's the gripe?
Especially if your losing in everything else, and hey, who in their right mind would spend the time to tear down something that hasn't been proven, or YET...why not just show us your own investments that are better, that you surely must know about, as you would most certainly have to spend just as much time studying a winner, so that we can leave this and follow you to it...as per being our winner too...
(IF YOU TOOK THE TIME TO WARN US...DONT NEGLECT US...GIVE UP THE PRIVATE GANGBUSTER INVESTMENT YOU HOLD).
For anyone to have all of the time in the world to worry so much over this...PLEASE...WE JUST GOTTA KNOW YOUR WINNING STRATEGY SECRETS TOO, AS PER WHAT IS THE BEST OR BETTER THAN THIS.
IF YOU CAN'T THEN DONT TRY TO DISCOURAGE OUR WINNINGS SO FAR...PERIOD!!! For what is worth. P.S. There are some that actually want to buy your/our dinars back. The spread is about the same both ways, coming or going, buying or selling (I"M HOLDING..SORRY, YOU CANT HAVE MINE).
8-30-2012 Bobby (Response To Iraq-Business News): The author is obviously Did not do much research before putting pen to paper. Iraq has always had a higher currency than the usd, more than 3x in modern times. So what happens when the US devalued their currency, did all their wealth just disappear?
Of course not. And why does Dr. Shabibi expect the iqd to be a foreign currency reserve for other countries? Because the value will stay at 1166? Of course not.
Why do the major powers of the world including the US hold billions, and in the US trillions, of iqd. I bet the author didn’t even bother to research how much iqd the US holds.
A simple FOIA form submitted to the treasury could have provided him that information if he really wanted to present a knowledgable piece..but he didn’t. Iraq is not revaluing its currency to something it never was.
They are going to reinstate their currency to the value it previously held for many many years. They are just going to be given back what was taken from them. What is most laughable is that someone would be able to write a piece for this site, and have absolutely NO CLUE that the iqd is not traded on forex because it’s international status was taken away with the imposition of sanctions.
This is the kind of amateur, hack journalism that should be saved for the National Enquirer or maybe Highlights for kids. Funny how all the naysayers quote articles that are a year old and written by the GOI.
I wonder why nobody quoted the articles from last WEEK that used the words revalue. Dr. Shabibi made it very clear that dinars held outside the US will be held by central banks as a reserve currency. They will be redeemed for oil credits from the CBI. How do the lopsters explain Dr. Shabibi stating that the 25 k notes will be used for large transactions between banks? Not at 1
8-30-2012 Amanda (Response to IBN): The fact that you don't already know that proves my point. Go back to school. Then... maybe... we'll talk. You are a little out of your league here I'm afraid.
In addition to those two revaluations, you may want to brush up on Czech Republic at 16.40% due to a new exchange rate regime framework, Chile at 15% where they also widened the bands from 5%-10%, Switzerland which has RVd twice (10.2% & 20.6%), Japan at 24%, Spain at 19%, Algeria at 28% due to the basket peg
. I could continue but I'm not going to do your work for you. I personally believe Iraq's exchange rate will continue to rise but not at the advertised levels. Long term, there is definitely a profit to be made here. Let's not group together anyone who has a positive outlook for the Iraqi currency with the pumpers. Show a little more discretion when insulting people.166, that’s for sure.
8-30-2012 Amanda (Response to IBN): I'm afraid your research needs a bit more work. Romania revalued at 35.4% at the beginning of the 80s and Colombia revalued the central parity of their currency 30.6%. Would you mind laying out your scenario of when and how China revalued?
I'm willing to bet your scenario once again is wrong. You said that you've never taken or taught a class in economics, maybe you should sign up for one. As an economics student myself, I do believe there is a great chance (long term) for a profit, as do many others.
If you don't believe there is a chance for a profit (long term or otherwise), than YOU are the biggest fool of all for devoting so much time to this. I wonder if that thought has ever crossed your mind.
8-30-2012 Chris (Response to IBN): My thought was those trying to debunk this issue side step the information such as what is going on with Paris Club, IMF, defense funds and other articles that substantiate this investment as sound.
Those that are vested not on an emotional base know that there are "pumpers and spreads" but we also know that Iraq will return to the full functional use of their monetary system excluding the use of usd.
All economies are inderlinked in this global society. It is to our benefit to examine the strengths as well as weaknesses in all sectors of the world. Discord seems to be the order of the day, in economics, religion, and territory.
If we do not learn that the enemy of every man/woman is deceit. Those that actively and passively try to deceive. Let them put out substantial evidence that the dinar is a scam, that Iraq will always use the usd and that Iraq is less wealthy than those in the west.
Tell that to the US who just obtained a good size arms sales to Iraq to be delivered 2014. More than anything, we should be encouraging the wealth and progress of Iraq so that their people should all have access to clean water, electricity, food, housing and medical.
As the second largest producer of oil in the world, there is no excuse for poverty. So those people can hang on to the hope Iraq stays as it is. I hope that it flourishes not just for my own benefit, but for others like me trying to make ends meet. Kurdistan is a wonderful example of striving in the right direction.