Thread: "RollsRoyce . . . June 25 Tidbit!"

The dinar was introduced into circulation in 1931, 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 U.S. 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% 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 as being five to six times (1.86 dinars for US$1) higher than the official rate.[1]

Iraqi dinar - Wikipedia, the free encyclopedia

After the Gulf War in 1991, and due to the economic blockade, the previously used Swiss printing technology 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 excessive government printing of the new notes issue, the dinar devalued fast, and in late 1995, US$1 equalled 3000 dinars.

Between October 15, 2003 and January 15, 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes, with the notes printed by De La Rue using modern anti-forgery techniques, to "create a single unified currency that is used throughout all of Iraq and will also make money more convenient to use in people’s everyday lives."[2] Old banknotes were exchanged for new at a one-to-one rate, except for the Swiss dinars, which were exchanged at a rate of 150 new dinars for one Swiss dinar.

Although the value of the dinar appreciated following the introduction of the new banknotes from 4000 dinars per U.S. dollar, at the time of their introduction, to a high of 980 dinars per dollar, it is now held at a "program" exchange rate, as specified by the International Monetary Fund[citation needed], of 1263 dinars per US dollar at the Central Bank of Iraq. However, there is not yet a set international exchange rate and so international banks do not yet exchange Iraqi dinar. The exchange rate available on the streets of Iraq is currently around 1500 dinars per US dollar (April 2006).

On May 3, 2007, the IMF released a statement in relation to the international compact with Iraq, which has turned the tide in regards to speculation on the Iraq dinar. The contents of the article discuss changes made in Iraq on the economic front of how the Iraq government had eliminated fuel subsidies. The article also stated that the Central Bank of Iraq had raised interest rates in an attempt to allow a gradual appreciation of the dinar in an attempt to fight dollarization of the Iraq economy. Although there are claims of wide-spread optimism of some language used later in the press release among some dinar speculators, there have been no publicly released statements or analysis by any news sources or governments. [3]



I guess I am a sucker, cause that info is "HogWasH" in Blue and underlined!!!! Will dig up some more tomorrow.

thanks, neno. I had used wikepedia to do my research as well. Nice to see it again, though.

Originally Posted by GerttiDinar

Thank you, it would be very much appreciated.

Sofar No real luck at all. I made contact with member/friend on his summer vaction too, to see if he could help me in the search too. (sometimes I wonder what I would do with out his knowledge) He usally can find what ever I am looking for or I can almost deciede it isn't out there. My question posed was:

I got to find where this statement has come from other than a Dealers Site. Exspecialy the part in red. or just proof of it, other than from a dealers site.

Thanks Bro,
Tommy/neno

The Potential of the Dinar

Prior to United Nations sanctions, the Iraqi dinar traded at 3.35 per U.S. dollar, and prior to the war in Iraq, the Iraqi dinar traded at .33 U.S. Dollars. During major combat operations, the Iraqi dinar declined to an all time low. However, after major combat operations, the value of the dinar increased 25%. Countries such as Germany (post WWII) and Kuwait (post Iraqi invasion) experienced a similar devaluation of their currency, but both countries recovered. Today, the dinar has increased from 3,500 against the dollar during the U.S. led invasion last year to 1,400 against the U.S. dollar. Imagine the growth potential of the Iraqi dinar once Iraq recovers and begins to enjoy the potential revenue of a country rich in oil and other natural resources.

Sofar nothing can be found of the saying except from a dealers site as you have said. he sent me this:

The statement comes from History of Iraqi Dinar - Iraq Stock Dinar Exchange Rate

If you go by the statement made in this World Bank report then in 2003 one dinar was almost equal to one U.S. cent.

http://lnweb18.worldbank.org/mna/mena.nsf/Attachments/IQ-GOVERNANCE/$File/GOVERNANCE+final+sector+report+16+October.pdf

Just a note. I have never based my Investment on that phrase but, it is interesting finding out, that it only comes from some dealers site. I am sure the proper authorities are aware of this and I have heard of some from the US Department, have been shut down and being prossecuted on false information as well as cheating Investors by not delievering the products ordered. I also see that no other member here has come up with it iether as of yet. So sofar I would say you have made a Very Valid Remark of this Statement. Thanks

This most be the theroy of the Default Sadamm Rate, comes from.

Originally Posted by neno

You Planed well. OSW was my mentor as for the strategy he put forth. But, after the first million cashed in, he has always mentored the group to not cash all in. I agree with him totally for the future of the dinar, or unless it does come in high or rises high quickly. Then I am out just as quick as well. It is good to have a strategy in anything. Good for you and your bud's.

I agree with your thoughts on the dinar. If it comes in high I'm out. But if not, I'll cash in enough to be comfortable and wait for the rise in value that is sure to come. I have this as my post rv strategy. In my opinion it could go either way. There are compelling arguments for all three outcomes. High rv, lower rv and slow growth. The one thing I really don't see is a retreat in value.

Area Handbook Series/ Iraq / Glossary

dinar (ID)
Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86. Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971. Iraq officially uncoupled the dinar from the pound sterling as a gesture of independence in 1959, but the dinar remained at parity with the pound until the British unit of currency was again devalued in 1967. One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began. Upon the devaluation of the United States dollar in 1973, the Iraqi dinar appreciated to US$3.39. It remained at this level until the outbreak of the Iran-Iraq War in 1980. In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation de****e mounting debt. In early 1988, the official dinar-dollar exchange rate was still ID1 to US$3.22; however, with estimates of the nation's inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar's real transaction value, or black market exchange rate, was far lower-- only about half the 1986 official rate.

$1.66, any takers?

http://www.jhu.edu/~iaesbe/hankepub_files/Iraq.pdf

Inflation was a problem during the
Hussein regime. Prices rose at a 68 percent
annual rate in 1979, 95 percent in 1980, 139
percent in 1981, and 369 percent in 1988.3
The Economist Intelligence Unit estimates
that inflation was 100 percent per year in
1997, declining by 10 percent per year to
reach 60 percent in 2001 and returning to 70
percent in 2002.4 The official exchange rate
of the Iraqi dinar is still US$3.22 = ID 1, but
the black-market rate has long since diverged
from the official rate, suggesting that
repressed inflation has been significant and
that the above-mentioned inflation estimates
are best understood as lower bounds.
State commercial banks began selling foreign
exchange to the public in 1999 at the parallel
market rate of 2000 dinars to the U.S. dollar.

http://csf.kiep.go.kr/ChinaBlog/mybl...0report_dl.pdf

Historically, the Iraqi dinar enjoyed a long period as a strong currency,
underpinned by oil revenue and rising levels of reserves stemming from the
comfortable surplus on merchandise trade. This changed with the onset of the
Iran-Iraq war and the collapse of oil prices in 1985-86, when, de****e support
from the Arab Gulf oil exporters, the dinar weakened markedly. The official
value of the dinar (US$3.22:ID1) bore no relation to its black-market rate. This hit
a low of ID2,660:US$1 in December 1995, at the height of the economic crisis
generated by hyperinflation and sanctions. It recovered on news that Iraq was
entering talks with the UN on an oil-for-food programme, to a peak of
ID650:US$1 in February 1996. From June 1999 state banks were allowed to sell
hard currency to the Iraqi public at ID2,000:US$1, the prevailing black-market
rate. The black-market exchange rate remained at around this level until the
March 2003 invasion, when it reached ID3,000:US$1.

Originally Posted by DesertWolf

Bronco,

I just checked and the Kuwaiti Dinar is rated at 1 Kuwaiti Dinar to $3.4709 USD. In short if you turn in 100 Kuwaiti Dinars you will get $347.09 USD.

Hope this helps…

DesertWolf

Wolf the way it has been explained to me is the other way around. For each Kuaiti Dinar it is worth $3.47 US. My be wrong. Can someone clarify?

Originally Posted by Bill

Wolf the way it has been explained to me is the other way around. For each Kuaiti Dinar it is worth $3.47 US. My be wrong. Can someone clarify?

that's how i understand it to be as well.