Thread: Cashing in, please read.

Originally Posted by FloridaFirm

How come everyone keeps quoting the 3 dinar to 1 US dollar figure during the 1980s.
I have heard that price was "set" by Saddam Hussein and basically it was overvalued.

What do you say to this?

Why do you feel that we need to say anything ?

Also. Kuwait has relatively less conflicts compared to Iraq, yet their currency is worth 0.2892 and has been hovering around that mark for 5 years. Iraq still suffers from insurgency and still has a very young inexperienced government in place.

What factors go into calculating the revaluation of a country's currency?

Originally Posted by Wildfire

Why do you feel that we need to say anything ?

Obviously if true, I hope people would stop referring to this figure as future indication of what their Dinars will be worth. So if any expert out there could explain the story behind this example.

Originally Posted by FloridaFirm

Also. Kuwait has relatively less conflicts compared to Iraq, yet their currency is worth 0.2892 and has been hovering around that mark for 5 years. Iraq still suffers from insurgency and still has a very young inexperienced government in place.

What factors go into calculating the revaluation of a country's currency?

Very curious. Mike said the kuwait dinar revalued (or pegged) in the $3 area. I wonder why the value fell?

Originally Posted by FloridaFirm

How come everyone keeps quoting the 3 dinar to 1 US dollar figure during the 1980s.
I have heard that price was "set" by Saddam Hussein and basically it was overvalued.

What do you say to this?

Funny,

You state this as if you knew how the original currency value was calculated. Outsiders may have thought it was too high after the fact, but no one argued about it when it was first set. The best economists of the era placed this value on dinar the same as is being discussed today about revalue, and it is based on a far better economic potential today than it was decades ago.

You think Saddam just pulled this figure out of his A$$? You better study the past economic history of Irag currency to learn how the value was calculated. It gradually dropped because of Saddam's restrictive trade, mismangement, never mind all the killing and hatred, but that happened over many years of his running the country into the ground with war costs, so the value of current dinar is worth more than the $3.22 figure where it originally was set according to the economic experts in region today.

Oil was $17.00 a barrel back then, now look where it is. The country was a mess then, and although it is still a mess in Baghdad, forty eight cities have had security handed over to Iraqi forces, so it is just a matter of time, just as we see in Kurdistan, so too will we see the same in Baghdad once the catalyst for sectarian violence is terminated. Many economists support the return to $3.00 plus, maybe not overnight, but in a few years as international investors come in and modernize oil production and refining, so lets see how long before we see it equal to their neighbors. Kuwait is $3.40, so is it really that far fetched to see the same in Iraq?

Good luck to all, Mike

Originally Posted by FloridaFirm

Obviously if true, I hope people would stop referring to this figure as future indication of what their Dinars will be worth. So if any expert out there could explain the story behind this example.

I agree with you. I am tired of hearing the 3:1 also. I believe with just it being 10% surveyed and 30 years later from that day of the 3:1 that also with what is taking place today and for the future, we should be considering a far more r/v over the next 8 to 12 years of around 5:1 or even 7:1 These country's are sofar behind that they have no where to go but up. And with all the Intelligents in the world & with Irag going to a global market, The "SKY IS THE LIMIT".

Originally Posted by Offshore-Wealth.com

Funny,

You state this as if you knew how the original currency value was calculated. Outsiders may have thought it was too high after the fact, but no one argued about it when it was first set. The best economists of the era placed this value on dinar the same as is being discussed today about revalue, and it is based on a far better economic potential today than it was decades ago.

You think Saddam just pulled this figure out of his A$$? You better study the past economic history of Irag currency to learn how the value was calculated. It gradually dropped because of Saddam's restrictive trade, mismangement, never mind all the killing and hatred, but that happened over many years of his running the country into the ground with war costs, so the value of current dinar is worth more than the $3.22 figure where it originally was set according to the economic experts in region today.

Oil was $17.00 a barrel back then, now look where it is. The country was a mess then, and although it is still a mess in Baghdad, forty eight cities have had security handed over to Iraqi forces, so it is just a matter of time, just as we see in Kurdistan, so too will we see the same in Baghdad once the catalyst for sectarian violence is terminated. Many economists support the return to $3.00 plus, maybe not overnight, but in a few years as international investors come in and modernize oil production and refining, so lets see how long before we see it equal to their neighbors. Kuwait is $3.40, so is it really that far fetched to see the same in Iraq?

Good luck to all, Mike

Although I remain pesimistic this is the most helpful reply I have read yet. Thank you Mike

Mike,

Very well said, if front month crude reaches $80-$100 per, we will see how important Iraq is and the order will be anything that moves take it out in the oil fields.

Originally Posted by FloridaFirm

Also. Kuwait has relatively less conflicts compared to Iraq, yet their currency is worth 0.2892 and has been hovering around that mark for 5 years. Iraq still suffers from insurgency and still has a very young inexperienced government in place.

What factors go into calculating the revaluation of a country's currency?

I think that maybe you calculated this the wrong (opposite) way...I don't think it is that 1 Kuwait dinar is 0.2892$ , but instead that 1 dollar is worth 0.2892 Kuwaiti dinar... And if you divide one dollar with 0.2892, you get 3,45$..which is approx. the same figure as Mike gave you...

/K

Originally Posted by karinc

I think that maybe you calculated this the wrong (opposite) way...I don't think it is that 1 Kuwait dinar is 0.2892$ , but instead that 1 dollar is worth 0.2892 Kuwaiti dinar... And if you divide one dollar with 0.2892, you get 3,45$..which is approx. the same figure as Mike gave you...

/K

Good job Karen!