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

Originally Posted by Ialdoboath

I think this may help. It comes from the Kuwaiti Embassy via Ankara:

DOCUMENT OF THE KUWAITI EMBASSY IN ANKARA (Turkey)

1-Was Kuwaiti money exported when it's country of origin was occupied by the Iraqiean state?If so, how much was the total of that particular amount of money ?
When the Iraqean invaders plundered the Central Bank of Kuwait, they exported Third Issue bank notes and bullions of gold...Nevertheless, great amount of the 356,781,608,750 Kuwaiti dinars taken from the Central Bank's coffers was regained.

2-Which Kuwaiti Dinars notes were demonitized and those put into circulation at the present time ?
Soon after God Almighty consented to Kuwait's liberation, the Third Issue of the Kuwaiti Currency was withdrawn from circulation on the 24th of March 1991, becoming therefore wortheless 45 days later. The right of exchanging these currency notes for new ones at the Central Bank of Kuwait expired more than six months later : on the 30th of september 1991. Consequently, no exchanging processes took place afterwards.
On and after the 24th of march 1991: day when the Third Issue was withdrawn from circulation, Forth Issue bank notes were submitted to the same condition on the 17th of August 1994 and ceased to be legal tender effective on the 16th of febuary 1995. The right of exchanging these Kuwaiti dinar notes at the Central Bank of Kuwait will then expire on the 16th of August 2004. On the other hand and at the present time, Fifth Issue bank notes are in circulation since the 4th of september 1994 and are now still valid.

3-When was the last time old Kuwaiti Currency was changed and how much a Kuwaiti dinar is worth compared to the US Dollar at the present time ?
Having been withdrawn from circulation and having stopped to be a legal tender after it's country of origin was invaded, from the 16th of February and onwards untill the 16th of august 2004, Forth Issue bank notes can now be exchanged at the Central Bank of Kuwait with a value compared to the US Dollar of 299,29Fils.(This value having been fixed on the 20th of december 1995 is known to vary during the day).

4-By what means old issues of the Kuwaiti Currency are recovered ?Is it possible for the Kuwaiti State to recover all the old money belonging to institutions, companies or individuals and pay therefore for it's worth as US Dollar ? Can one carry out such an operation without having to go through the Central Bank or any other kind of bank ?
As said previously, Kuwaiti Currency bank notes actually put into circulation in Kuwait are Fifth Issue bank notes. The Forth Issue notes urged into the circulation on the 24th of March 1991 have now ceased to be legal tender. However, it is only within the Central Bank's power to exchange Forth Issue bank notes, until the 16th of August 2004, for Fifth Issue ones put into circulation at the present time.
The Kuwaiti dinar is a convertible currency. Therefore, under any kind of circumstances Kuwaiti money can be bartered for any other monetary unity. It can be sold and bought freely as species by banks, companies and Motto offices. Besides, one can send and forward it by bank transfer.

EDIT: Sorry, forgot to add the link. Here it is: Injustice of Kuwait during the Gulf War - Kuwaiti Embassy

Thanks very much for the link. Appreciate it.

Originally Posted by Bubba Dinar

Fact is the Gold only backed up the Swiss Dinar! Saddam was printing his own Saddam Dinars without backing of the Gold...That's why the Swiss Dinar held its value and the Saddam Dinar wasn't worth Shiite!

Thanks for clarifying and clearing it up! Another one bites the dust!

Originally Posted by Bubba Dinar

Fact is the Gold only backed up the Swiss Dinar! Saddam was printing his own Saddam Dinars without backing of the Gold...That's why the Swiss Dinar held its value and the Saddam Dinar wasn't worth Shiite!

Read the speech given by the Central Bank governor of England, this point stood out to me; according to the the Governor political will supported the Swiss dinar value not gold. So another one does not bite the dust.

http://www.bankofengland.co.uk/publi.../speech208.pdf


Pages 13-14


After fluctuating in the early 1990s, the Swiss dinar rose sharply against the US dollar
from the middle of 2002 as the prospect of an end to the Saddam regime increased. It
rose from around 18 to the dollar in May 2002 to about 6 to the dollar by the
beginning of May 2003 when the war ended. That appreciation reflected expectations
about (i) the durability of the political and military separation of Kurdish from
Saddam-controlled Iraq and (ii) the likelihood that a new institution would be
established governing monetary policy in Iraq as a whole that would retrospectively
back the value of the Swiss dinar. The political complexion of Northern Iraq led to
the assumption that the currency used there would have value once regime change had
occurred.


In other words, the value of the Swiss dinar had everything to do with politics and
nothing to do with the economic policies of the government issuing the Swiss dinar
because no such government existed. As someone might have said, “it’s the political
economy, stupid!”


Another illustration of this is shown in Chart 5 which plots the Swiss dinar/dollar
exchange rate against the values of futures contracts showing how expectations about
the political order in Iraq were evolving.

Good ole political will appreciates currency, something some of us have been saying for years....

Originally Posted by breakeven

Thanks for clarifying and clearing it up! Another one bites the dust!

Strange, Break, you want links and additional information when someone posts thoughts that run afoul of yours. Yet when someone posts something along the lines of what you want to hear you don't ask for anything, link or source, nothing. I find that odd for such a person with a great grasp of the dinar.

Originally Posted by breakeven

I wholeheartedly agree with your take on the program rate and the fact that Iraq is sitting on a pot of huge wealth. No one can dispute this. The value of the dinar will be on par with its neighbours...over time though and will not be as a result of an overnight dramatic rv that we all hanker for.

do you have links or factual data to support YOUR theory??

Originally Posted by shotgunsusie

do you have links or factual data to support YOUR theory??

Actually, I think every day that goes by without an overnight RV kind of supports this theory don't you think?

Originally Posted by SeaRayaWaitin'

Actually, I think every day that goes by without an overnight RV kind of supports this theory don't you think?

thats like sayin dont walk across the street ever and you wont get hit by a car. rather redundant.

Originally Posted by breakeven

I wholeheartedly agree with your take on the program rate and the fact that Iraq is sitting on a pot of huge wealth. No one can dispute this. The value of the dinar will be on par with its neighbours...over time though and will not be as a result of an overnight dramatic rv that we all hanker for.

Where can I find this overnight theory you keep talking
about I have yet to read it, I would like to find it
if you could point me in the right direction.

Originally Posted by SeaRayaWaitin'

Actually, I think every day that goes by without an overnight RV kind of supports this theory don't you think?

This statement says it all!

Every day that we don't have an RV is an exciting day for dinar pessimists. Their theory needs no factual basis other than - "it hasn't RV'd yet so we must be right!"

They love being right and they get an emotional charge that keeps them addicted to this forum.

For those of us who are dinar optimists - all we have to do is be right just once!

Let the pessimists be right every day - until the RV suddenly happens!

Originally Posted by SeaRayaWaitin'

Actually, I think every day that goes by without an overnight RV kind of supports this theory don't you think?

How does an RV not happening THIS day or any other day, mean that the CBI cannot at ANYDAY decide to significantly RV their currency???

....Never understood that logic.....