As a dinar community, we all feed off of rumors and speculation. Generally, rumors come and go while speculation tends to be a blending of real news and facts with some type of rumor. In any case, we believe in this investment and are constantly thirsty for new substantiation of our investment. There is no better justification to our investment than real math. This is why the M2 has been such a hot issue across all of the boards. Due to all of the banter between naysayers, realists, and dreamers caused from the rumors and speculation regarding possible RV amounts, I decided to hopefully put much of the debate to rest. Before proceeding below, please keep in mind I am a senior analyst by profession. If there are any questions regarding any of the information or math, please contact me.

I created a website with several dinar calculators that prove that as of today, Iraq can RV their currency (without using petro dollars) anywhere from 150% above current rates to 540% above current rates and STILL BACK THE CURRENCY 100%. The variance is due to having to estimate several of the variables (dinar in circulation, reserve amounts).

Before making this next statement, let me preface it by saying that I do not believe the rate will be this high, but.......Using these calculators, you can also prove the infamous safe dinar rate is mathematically possible from current information available. I am sure you can get to this number with different combinations, but the following scenario is the one that I would feel most comfortable with:

Using the exchange rate calculator, use the variables:

Dinar in circulation: 7 trillion
Total reserve amount: ($60*240 billion barrels of oil = 14.4 trillion)
Backing percentage: 40%

You will see that the derived rate is .19 NID : $1 USD.

The website is:
http://kuga.mywebcommunity.org/Dinar_Calculators2.php
Hopefully this website will provoke a wonderful discussion on exchange rates, backing percentages, and reserve requirements. As I said before, please contact me with any questions/suggestions you may have. I hope that the page I created can be expounded upon based on the interests of the community.


***Due to such a divided dinar community, I am posting this on each of the dinar boards. Please feel free to post in each one, but try to keep it within the community you mostly pledge your allegiance.