Originally Posted by
Wm.Knowles
Hello everyone. A lot of news out there today. We are still hearing reports of a decreasing supply like the post above. I also hijacked another post from the rumor sections that I think gives us a look at what the Iraqi people at the base levels might be thinking about this dinar issue:
Originally Posted by krazybill
i don't know if it means anything or not but here goes. i am in iraq and i have several iraqi citizens working for me. so i have been talking to them trying to get a feel for what the are hearing from the government. and they each told me that yesterday the iraqi minister of finance anounced that the dinar is riseing in value and something very big is going to happen within the next month that would bring the dinar very close in value if not equal to the us dollar. now i don't have anything to back this up i personally haven't seen or heard anything through offical chanels, but i can tell you that my iraqi workers are very excited and they told me they are going to the bank after work to transfer dollars for dinar.
These posts reinforce the issue of supply and demand that we are seeing. Yesterday, a friend ordered 1 1/2 million fron Safe Dinar and was told that it would ship on the 2nd of Jan. Everywhere we are hearing reports that dinar is getting harder to get. Basic supply and demand with an added market psychology that results in the market "taking on a life of its own". We have always known that the dinar exchange rate was an artificial one set at a grossly undervalued rate. There has never been any logic to the relationship of the exchange rate and what the true value of the currency should be trading. To increase the purchasing power of the dinar, the exchange rate will have to increase dramaticly. This will accomplish many things for an importing country. Not to mention well being and confidence in the GOI. I understand there will be no auctions this coming week and the exchange rate will remain the same as it was at the end of last week. I am not sure this will happen that way. Expect a surprise this week. They simply can't set on the side lines while the demand for dinars will be at an all time high. By now, everyone in the banking, investment, corporate world will know the dinar has appreciated above the 10% level. I think we are going to see that "feeding frenzy" we have discussed. Dinar will be harder to get, and we know the CBI has not sold any significant amount of dinar in two months. This week will be one of the best yet. Have a good day. PS. Based on what has happen to Saddam, the next time the President tells someone they have 48hrs to get out of town, they might want to take him a little more seriously.