Thread: Iraq/Dinar News. 09/05 to 01/14/07

Originally Posted by Dinar Duchess

A lot of us have 25K notes, in fact half my stash is in 25k's. I think we have to try and work out what they may be thinking, what is best for them, and what they are likely to do. I would like to try and bank my 25k notes in a bank outside of Iraq, say in Jordan......just in case this happens and they do recall on a low reval. I have a small amount in Warka but most of it is at home. I dont wish to burst anyones bubble here, but I can't see people walking around with 25K notes worth 25000 dollars. This is just my opinion.

My thought has been to hope for a decent initial reval, and exchange the big notes at my own bank. Those funds would go into as high an interest venue as is possible and except for some play money, sit on it. The fed would have to be in on that activity. The smaller notes can be gifts from God to use when needed, say for instance, air fare to a certain party in the caymans.
I agree with you about walking around with the 25K's, I've tried to visualize trying to change one of those at, say, an airport, and it just ain't comfy. Someone would be bound to come and speak with you about it.

I see a significant logical position that does not favour a 0.05 rate if the NID is traded on Forex. It would likely simply be changing the ownership of the Dinar but not succeed in withdrawing it from circulation. Ultimately it will be 'cashed in'. A 1.00 to 2.00 rate is more logical IMHO.

The answer is yes the fed is private. Right now our interest are the same as theirs so you better beleive the dinar is going to reval. When you put your money in to the bank and want to get interest from it you are then competing with them, that is why you are taxed on interest.

My thoughts about WM Knowles comment about how he thinks the Dinar could reval at a lower rate than some of us had hoped for. I think he put forth a very real possibility. Bankers buy cheap sell expensive. The CBI is no different. But taking dinar out of circulation is a kin to winding a spring. The tighter that spring is wound the more explosive when released. Thats how I think it will go. In their effort to get as much of the currency out of the system, at the cheapest price, will facilitate a more rapid rise when released to trade on the international market.

Originally Posted by Wm.Knowles

I would like to respond to a question I received as a PM. What is your idea about the RV rate and do they (CBI) know about all of us that have invested in dinar?
In thinking about these questions I remembered that while in the securities business I witnessed many bankers selling their bonds with only slight increases in appreciation. I learned that economic behavior changes at different price levels. What this means to us is the fact that the CBI is caught between two forces. Pressure to increase the purchasing power of the dinar for the Iraqi people and still be able to purchase dinar from the economy (especially outside of Iraq) and retire as much of the outsanding dinar as possible as cheaply as possible. I think we might want to adjust our thinking about what a reevaluation truly is. Up until now many of us have been considering a reevaluation as singular event. Lets start the discussion that an RV is a process. A process where the CBI (who knows their is an abundance of currency outside of Iraq) will attempt an initial RV that will satisfy both the increase in purchasing power, but low enough to retreive/remove as much currency from the outside investors as possible. If I was the President of the CBI, Why would I instantly RV at double digits when I can pobably remove a "big bunch" of dinar and only pay a single digit figure? As the President, I can always raise the exchange rate figure. So, how many of you would sell a million dinar if the initial RV was only .05 cents? Why should I pay more? While I think the future for this investment is exceptional, I think we are obligated to explore the possibilities so as to be prepared. Once there is an RV, expect them to turn their attention to the investors on the outside and remove as much of that pool of currency as cheaply as possible. Hate to sound cynical, but bankers are not social workers and their perception is strickly on the money.

I understand your point about starting low, but isn't there a 2 edged sword in play here? If they r/v too low (lets say .01 - .05) that won't be high enough to discourage the black marketers who would still get their items in Iraq and go over the boarder and sell them for a profit in neighboring countries. True it will have moved up considerably from where it is currently but probably not enough to cut off the black market. If they don't address the black market, then their few precious consumable items will still go accross the boarder for profit and out of the hand of the Iraqis for whom it is intended.

So don't they have to r/v high enough to try and knock out the black market so their consumables stay in Iraq for the Iraqis? Personally I don't think .01 is nearly enough. My thought has been around .30 to start (similar to Saudi Arabia, Egypt, Iran, Turkey, Isreal etc.) (like you say to try and get as much dinar back into the country as cheap as possible) and then raise it up steadily until it reaches the neighboring rate (Jordan, Kuwait, Qtar etc.) or at least 1:1. Again, you dealing with a proud people who have a recent history of a much more valuable dinar then it is currently. So I hope you are too low Wm. on your inital est. of course no offense intended just a disagreement in initial starting rate. (I hope I am right. )

But in a further effort to pick your brain, once it does r/v at some lower rate, based on your experience how long will they leave it low to try and get as much overseas currency cheaply, and how long will it take to raise to the 1:1 figure in your opinion? I realize no one really knows but you probably have a far better educated guess than the rest of us. Thanks for your reply,

worf

i think WM is trying to inspire different ideas and thinking, dont forget he is highly educated

Originally Posted by shotgunsusie

common sense would dictate that the bills are of the smaller denomination persuasion considering they got the high end covered with the 10 and 25 grand notes. that is NOT speculation in my opinion, they would HAVE TO BE smaller notes/coins.

Plus we have that intersting observation about the serial numbers and that the notes in circulation started somewhere in the middle of the sequence. according to a refernce site on Islamic notes this indicates that lower denominations have been considered or are printed but as of yet not put into circulation.

So I feel this further confirms that the number 14 is accurate and lower notes are lurking in the shadows.

Here it is again:

Iraq
The new and much anticipated issue of notes from Iraq has been released into circulation on 15 October 2003. There are currently six notes on issue. They are in the denominations of 25,000, 10,000, 5,000, 1000, 250 and 50 dinars. (The serial number prefixes use the 'abjad' sequence of the Arabic alphabet, but the first letter, alif, is not used. This suggests that a lower denomination may yet appear, or was considered but ultimately not issued.)
The notes have bold colours but in most ways are disappointing. They use images from old series, which can be understood, but they do not exactly project a bright new future in the manner that a completely new series of designs might have done. The only new design appears on the front of the 25,000 dinar note, which shows a Kurdish farmer. This appears to be a politically brave move! Details of each note follow:

News Page (2003) of the Reference Site for Islamic Banknotes

Originally Posted by pipshurricane

No sorry choochie my subscription are expired but i will try to find it!!!!

cost about a thousand bucks for a subscription to noozz or some ridiculous amount. the editorials are ONLY posted there too so you cant find them on any other sites.

Originally Posted by CharmedPiper

Doesn't that mean that the HCL would have to be done already.....if they are planning on exporting in 2 days.

this is EXPORTING oil. the HCL involves investments in the oil. apparently different.

These people in the Fed Res. are experts in their field and they know very well how currency works. I find it amazing with all the political upheaval in the country the dinar is going up in value. Oil production isn't quit up to the prewar levels and yet the dinar is going up. So, what is the dinar really tied to? Remember what Rothchild said, I care not who governs the country if I control the currency I control the country.