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Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Empty Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue?

Post by Ponee Sun Apr 24, 2016 10:03 am

Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? :- Iraqi dinar revaluation is the hot discussion among the people these days. Everyone is looking towards Iraq Government to make final decision about revaluation. Revaluation is the process that will enhance the value of Iraqi dinar to its previous stage. There was a time when Iraqi dinar was more powerful currency that the US Dollar. $3.5 US Dollars were traded against one Iraqi Dinar in 1990. Iraq Iran and later on Kuwait war were some of the most important reasons for Iraqi currency to decrease its value in the international market. The expectations are associated with the revolution of dinar is the basic cause for the growing number of dinar investors in the world.

Disputes & Arguments about Revaluation


Different people in the world have different arguments about Iraqi dinar and its revaluation. Some of them believe that Iraqi dinar will not be able to regain its lost value as fast as some believe.

It is a huge lose in the value that not years to recover back. They believe that Iraq can only regain its lost value with the stable economic conditions and the peace is the priority for it. Iraq is passing through a massive recession period with the worst security situation in the country.


It is very difficult for a country to get strong economic conditions in the situation like that. Moreover, they think the half of the country is under the occupation of ISISI that is the major trouble for the country.

The people who believe in revaluation of Iraqi dinar have different opinion about Iraq and its economic situation. They claim a better security and economic condition of the country than the people have opposing opinions.


They believe that only media is responsible for the dark side of Iraq and it does not highlight the things better in the country. They say that ISISI is not a power terrorist organization as some believe.



The situation is under control by the Iraq Army and the US Forces. Oil is the backbone of Iraq economy. 99% oil fields are under the direct control of Iraq. None of the terror organization can claim the control on oil reserves. All of the oil fields are in the southern side of the country and the ISISI is active in the northern areas of the country.


The country is free from international sanctions imposed by UNO in 1991 after the attack on Kuwait. They are now free to sign any contract with the any country of the world that suits their economy. They believe the situation is completely different in the country. The government of Iraq is interested to sign new contracts with the other countries and the legal barriers in signing a contract with the other countries are removed.


The special authorities are provided to the governors to sign any contract with the any country of the world that is in the favor of the country. All of these things are favourable for the country and the economy of Iraq and we expect Iraqi dinar revaluation in next few months of years.

What will be the expected time for revaluation?


This question is difficult to answer. If you are a dinar investor, you will have to wait for better economic conditions in the country that are not too far to achieve for the government of Iraq.

The dispute between Iraq and Kurdistan was also a major barrier in the revaluation of Iraqi dinar. The Kurd Ministers were not talking part in the activities of national assembly. The bill for revaluation is available in the national assembly for discussion.

Now, with the serious interests by the recent government, the oil dispute between Iraq and Kurdistan is resolved. It is time to go ahead now. It can be happened any time as per experts. It may take weeks of months but it will not be long enough as some believe.

http://www.dekhnews.com/disputes-arguments-about-revaluation-when-will-iraqi-dinar-revalue/


Last edited by Ponee on Sun Apr 24, 2016 1:01 pm; edited 1 time in total

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Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Empty Re: Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue?

Post by kenlej Sun Apr 24, 2016 10:33 am

The dinar was introduced into circulation in 1932, by 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 = 11 rupees. The dinar was pegged at par with the British Pound until 1959 when, without changing its value, the peg was switched to the United States 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 percent 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 at five to six times higher (3 dinars for US$1) than the official rate.[2]

After the Gulf War in 1991, due to UN sanctions, the previously used Swiss printing method was no longer available so new, inferior quality, notes were produced. The previously produced notes became known as the Swiss dinarand continued to circulate in the Kurdish region of Iraq. Due to sanctions placed on Iraq by the United States and the international community along with excessive government printing, the new dinar notes devalued quickly. By late 1995, US$1 was valued at 3,000 dinars.

Following the deposition of Saddam Hussein in the 2003 invasion of Iraq, theIraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance began printing more Saddam dinar notes as a stopgap measure to maintain the money supply until new currency could be introduced.

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".[3] 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.

Since Iraq has few exports other than oil, which is sold in dollars, there is little demand for dinars and they remain in "exotic" status. However the new currency has sparked a multimillion-dollar industry in selling dinars to speculators. These so-called "money service" companies will sell dinar to speculators at an inflated price and push the idea that the dinar will "RV" or be revalued to greatly increase the exchange rate against the dollar. As of January 2016 the dinar is pegged to the dollar at a rate of 1182/1180 (sell/buy) dinars per dollar.[4] The current exchange rate is published by the Central Bank of Iraq on its English-language home page. The exchange rate reportedly available on the streets of Iraq is around 1,200 dinars per U.S. dollar.

There is considerable confusion (perhaps intentional on the part of dinar sellers) around the role of the International Monetary Fund in Iraq. The IMF as part of the rebuilding of Iraq is monitoring their finances and for this purpose uses a single rate (not a sell/buy) of 1170 dinars per dollar. This "program rate"[5] is used for calculations in the IMF monitoring program and is not a rate imposed on Iraq by the IMF. For a wider history surrounding currency in the region, see British currency in the Middle East.

Speculation[edit]


In response to the growing concerns with fraud and scams related to investment in the Iraqi dinar, State agencies such as Washington state,[6]Utah,[7] Oklahoma,[8] Alabama[9] and others have issued statements and releases warning potential investors. Further alerts have been issued by news agencies.[10]

The Better Business Bureau has included Dinar Investments in its list of top 10 scams.[11] There has also been a book written on the subject.[12]

These alerts warn potential investors that there is no place outside of Iraq to exchange their dinar, that they are typically sold by dealers at inflated prices and that there is little to substantiate the claims of significant appreciation of their investment due to revaluation of the currency.
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Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Empty Re: Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue?

Post by SUPERFOOL Sun Apr 24, 2016 11:01 am

They're buying what? U.S. investors latch onto Iraqi dinar





NEW YORK (Reuters) - The U.S. stock market almost wiped out his retirement account, but retired pilot Ronald Scarpa hasn't lost his taste for risk. Lately he has turned to one of the chanciest investments in the world - the Iraqi dinar.
"It's not a question of if, but when Iraq revalues its currency," said the Las Vegas-based Scarpa, who keeps dinars in his retirement account. "The dinar will eventually have substantial value, possibly the highest in the world."


Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel

Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel

He's not alone in risking his money on an investment that can charitably be described as a long-term turnaround project that will pay off only for the extremely patient. Thousands like Scarpa in America are buying the dinar, hoping someday the war-torn nation can revalue a currency worth just a fraction of a penny.
The fundamentals for buying the dinar are precarious. The United States invaded the country in 2003 and has only recently removed most of its troops. The country's political situation remains unstable, and destabilization in the Middle East - most recently with rockets fired between Israel and the Gaza Strip - could undermine the fledgling republic further.

U.S. retail investors' interest in Iraq's currency is part of a broad push for investment opportunities that will give some yield. Most of them cite near-zero interest on their U.S. savings and certificates of deposits as a reason for buying dinars and other exotic currencies.

The dinar, worth just a tenth of one U.S. cent, is experiencing additional downward pressure as a result of international economic sanctions imposed on neighboring Iran and Syria.

Also, buying the dinar is a task in and of itself. The currency is only traded in Iraq, so it can only be purchased by U.S. customers through a handful of dealers around the U.S. who get their dinars from Iraqi banks. If a customer wants to sell his dinars, the dealer will only buy it back at a 30 percent discount - so no quick trades here.
But Scarpa said he is prepared to wait. The country has the second-largest oil reserves in the Middle East and exports 3.4 million barrels of oil per day, making it one of the world's largest oil producers.

"If the dinar rises to just even a penny, you would have realized a profit of 900 percent," Scarpa said.

WEAK CURRENCY BRINGS IN SPECULATORS

In the last four years, the dinar has barely moved. Since 2008, it has appreciated by just 5 percent against the dollar, and at a tenth of a penny, the Iraqi dinar is the weakest currency among oil-producing Arab nations.
The Kuwaiti dinar is worth about $3.50, while Saudi Arabia's riyal is equivalent to roughly 26 U.S. cents.

The old dinar was worth $3.20 before the United Nations embargo that followed Iraq's invasion of Kuwait in 1990. By August 2002, the dinar had plummeted to a fraction of a penny.

Speculators are betting that given Iraq's potential as an oil-driven economy, the dinar could rise to a value of $1 to $3.

"I looked at the risks and I decided that this is not going to bankrupt me," said 35-year-old Ryan Williams, a former sheriff in Bakersfield, California.


Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel

"You invest a couple of hundreds or a couple of thousands of dollars and even if it just appreciated by 10 to 15 percent a year, that's still a lot better than investing in certificates of deposits here."

The Iraqi central bank sells dollars daily at a fixed price of 1,166 dinars through two state-run financial institutions and some private lenders Those institutions set the market rate through sales to customers. The current market rate is 1,215 dinars to one U.S. dollar.
Hassnain Ali Agha, founder of Las Vegas-based currency dealer Dinar Trade, is the biggest U.S. market-maker in Iraq's currency. He also sells other exotic currencies such as Afghanistan's afghani and the Libyan pound.
The United States is a huge market for Agha's firm, which has nearly 900,000 customers, 90 percent of which have purchased dinars. His customers are U.S. mom-and-pop investors - teachers, police officers, and construction workers. He also sold dinars to many U.S. soldiers coming back from Iraq.

Agha, who formerly traded at the Chicago Mercantile Exchange and New York Futures Exchange, himself holds more than $2 million in dinars, he said.
In 2011, Agha said, his firm sold about $577 million in dinars to U.S. customers, most of whom hold dinars for investment purposes.

"People in the U.S. really feel that Iraq is the next frontier market to make money on," said Agha. "There will come a time when the Iraqi government will have to adjust the dinar exchange rate given the country's oil exports. That will start fueling the fire."

Agha sells dinars in 1 million lots for $1,120. For the U.S. investor, however, it has to be a long-term holding. Dinar Trade will buy Iraqi notes at $850 per million, so the dinar would have to appreciate by about 30 percent before an investor could sell and break even.

IRAQIS WANT DOLLARS



In Iraq, prices are quoted both in dinars and dollars, but many prefer the greenback, locals interviewed by Reuters said.

Saja Majeed, a 30-year-old civil servant in Baghdad and a mother of two, said she carries dollars in her wallet because it is safer and she sees little opportunity for the dinar to rise.
Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel
Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel
"There is no industry in Iraq except oil. The dinar is linked to oil, but oil will run out one day," Majeed said.

Revaluation will only happen once the Iraqi government stabilizes. Iraq's central bank hopes to make one dinar equal to $1 at some point through redenomination and central bank-induced appreciation.
Iraq's deputy central bank governor Mudher Kasim told Reuters that process could take three years.

America investors are remaining patient.
"The big question is: where do you put your money in the U.S.? You can't get any interest in your money. Banks give you almost nothing on deposits," said Donna Simko, a real estate agent in her mid-sixties in Riverside, California.
"The gold rush into Iraq is just getting started."



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Post by kenlej Sun Apr 24, 2016 12:24 pm

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When Iraq was part of the Ottoman Empire, a number of European currencies circulated alongside the Turkish pound. With the establishment of the British mandate after World War I, Iraq was incorporated into the Indian monetary system, which was operated by the British, and the rupee became the principal currency in circulation, at a rate of 1 dinar = 13⅓ rupees.

1930 - 1950

In 1931, the Iraq Currency Board was established in London for note issue and maintenance of reserves for the new Iraqi dinar. The currency board pursued a conservative monetary policy, maintaining very high reserves behind the dinar. The dinar was further strengthened by its link to the British pound, which was pegged at par with the British pound until 1959.
In 1947 the government-owned National Bank of Iraq was founded, and in 1949 the London-based currency board was abolished as the new bank assumed responsibility for the issuing of notes and the maintenance of reserves. The National Bank of Iraq continued the currency board's conservative monetary policy, maintaining 100 percent reserves behind outstanding domestic currency.
Initiated during the last years of Ottoman rule, commercial banking became a significant factor in foreign trade during the British mandate. British banks predominated, but traditional money dealers continued to extend some domestic credit and to offer limited banking services. The expansion of banking services was hampered by the limited use of money, the small size of the economy, and the small amount of savings; banks provided services for foreign trade almost exclusively. In the mid-1930s, the Iraqi government decided to establish banks in order to make credit available to other sectors of the economy. In 1936, the government formed the Agricultural and Industrial Bank. In 1940, this bank was divided into the Agricultural Bank and the Industrial Bank, each with substantially increased capital provided by the government. The government established the Rafidayn Bank in 1941 as both the primary commercial bank and the central bank, but the National Bank of Iraq became the government's banker in 1947. The Real Estate Bank was established in 1948, primarily to finance the purchase of houses by individuals. The Mortgage Bank was established in 1951, and the Cooperative Bank in 1956. In addition to these government-owned institutions, branches of foreign banks and private Iraqi banks were opened as the economy expanded.

1950 - 1990

In 1956 the National Bank of Iraq became the Central Bank of Iraq. Its responsibilities included the issuing and the management of currency, control over foreign exchange transactions, and the regulation and supervision of the banking system. It kept accounts for the government, and it handled government loans. Over the years, legislation has considerably enlarged the Central Bank's authority. In 1959 the peg was switched from the British pound to the United States dollar at the rate of 1 dinar = 2.8 dollars.
On July 14, 1964, all banks and insurance companies were nationalized, and, during the next decade, banking was consolidated. Following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778.
By 1987 the banking system consisted of the Central Bank, the Rafidain Bank, the Agricultural, Industrial, and Real Estate banks. A 5 percent devaluation reduced the value of the dinar to US$3.2169, the official rate which remained until the Gulf War, although in late 1989, the black market rate was reported to be 1.86 dinars for US$1.

1990 - 2003

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 quickly, and in late 1995, US$1 was valued at 3,000 dinars.

2003 - Today

Following the deposition of Saddam Hussein in the 2003 invasion of Iraq, the Iraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance began printing more Saddam dinar notes as a stopgap measure to maintain the money supply until new currency could be introduced.
The Banking Law was issued September 19, 2003. The law brings Iraq’s legal framework for banking in line with international standards, and seeks to promote confidence in the banking system by establishing a safe, sound, competitive and accessible banking system.
Between October 15, 2003 and January 15, 2004, the Coalition Provisional Authority issued new Iraqi dinar coins and notes, with the notes printed 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. 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.
The Central Bank of Iraq (Arabic: البنك المركزي العراقي) was established as Iraq's independent central bank by the Central Bank of Iraq Law of March 6, 2004
The bank is in charge of:

  • Maintaining price stability
  • Implementing monetary policy (including exchange rate policies)
  • Managing foreign reserves
  • Issuing and managing the currency
  • Regulating the banking sector for promoting a competitive and stable financial system


The bank’s head office is located in Baghdad with four branches in  (Basrah, Mosul, Sulaimaniyah andErbil).

Copyright © 2012. Central Bank of Iraq. All rights reserved. Please read important disclaimer.
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Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Empty Re: Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue?

Post by Waco Kid Sun Apr 24, 2016 11:46 pm

SUPERFOOL wrote:

They're buying what? U.S. investors latch onto Iraqi dinar









NEW YORK (Reuters) - The U.S. stock market almost wiped out his retirement account, but retired pilot Ronald Scarpa hasn't lost his taste for risk. Lately he has turned to one of the chanciest investments in the world - the Iraqi dinar.
"It's not a question of if, but when Iraq revalues its currency," said the Las Vegas-based Scarpa, who keeps dinars in his retirement account. "The dinar will eventually have substantial value, possibly the highest in the world."


Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel

Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel

He's not alone in risking his money on an investment that can charitably be described as a long-term turnaround project that will pay off only for the extremely patient. Thousands like Scarpa in America are buying the dinar, hoping someday the war-torn nation can revalue a currency worth just a fraction of a penny.
The fundamentals for buying the dinar are precarious. The United States invaded the country in 2003 and has only recently removed most of its troops. The country's political situation remains unstable, and destabilization in the Middle East - most recently with rockets fired between Israel and the Gaza Strip - could undermine the fledgling republic further.

U.S. retail investors' interest in Iraq's currency is part of a broad push for investment opportunities that will give some yield. Most of them cite near-zero interest on their U.S. savings and certificates of deposits as a reason for buying dinars and other exotic currencies.

The dinar, worth just a tenth of one U.S. cent, is experiencing additional downward pressure as a result of international economic sanctions imposed on neighboring Iran and Syria.

Also, buying the dinar is a task in and of itself. The currency is only traded in Iraq, so it can only be purchased by U.S. customers through a handful of dealers around the U.S. who get their dinars from Iraqi banks. If a customer wants to sell his dinars, the dealer will only buy it back at a 30 percent discount - so no quick trades here.
But Scarpa said he is prepared to wait. The country has the second-largest oil reserves in the Middle East and exports 3.4 million barrels of oil per day, making it one of the world's largest oil producers.

"If the dinar rises to just even a penny, you would have realized a profit of 900 percent," Scarpa said.

WEAK CURRENCY BRINGS IN SPECULATORS

In the last four years, the dinar has barely moved. Since 2008, it has appreciated by just 5 percent against the dollar, and at a tenth of a penny, the Iraqi dinar is the weakest currency among oil-producing Arab nations.
The Kuwaiti dinar is worth about $3.50, while Saudi Arabia's riyal is equivalent to roughly 26 U.S. cents.

The old dinar was worth $3.20 before the United Nations embargo that followed Iraq's invasion of Kuwait in 1990. By August 2002, the dinar had plummeted to a fraction of a penny.

Speculators are betting that given Iraq's potential as an oil-driven economy, the dinar could rise to a value of $1 to $3.

"I looked at the risks and I decided that this is not going to bankrupt me," said 35-year-old Ryan Williams, a former sheriff in Bakersfield, California.


Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel

"You invest a couple of hundreds or a couple of thousands of dollars and even if it just appreciated by 10 to 15 percent a year, that's still a lot better than investing in certificates of deposits here."

The Iraqi central bank sells dollars daily at a fixed price of 1,166 dinars through two state-run financial institutions and some private lenders Those institutions set the market rate through sales to customers. The current market rate is 1,215 dinars to one U.S. dollar.
Hassnain Ali Agha, founder of Las Vegas-based currency dealer Dinar Trade, is the biggest U.S. market-maker in Iraq's currency. He also sells other exotic currencies such as Afghanistan's afghani and the Libyan pound.
The United States is a huge market for Agha's firm, which has nearly 900,000 customers, 90 percent of which have purchased dinars. His customers are U.S. mom-and-pop investors - teachers, police officers, and construction workers. He also sold dinars to many U.S. soldiers coming back from Iraq.

Agha, who formerly traded at the Chicago Mercantile Exchange and New York Futures Exchange, himself holds more than $2 million in dinars, he said.
In 2011, Agha said, his firm sold about $577 million in dinars to U.S. customers, most of whom hold dinars for investment purposes.

"People in the U.S. really feel that Iraq is the next frontier market to make money on," said Agha. "There will come a time when the Iraqi government will have to adjust the dinar exchange rate given the country's oil exports. That will start fueling the fire."

Agha sells dinars in 1 million lots for $1,120. For the U.S. investor, however, it has to be a long-term holding. Dinar Trade will buy Iraqi notes at $850 per million, so the dinar would have to appreciate by about 30 percent before an investor could sell and break even.

IRAQIS WANT DOLLARS



In Iraq, prices are quoted both in dinars and dollars, but many prefer the greenback, locals interviewed by Reuters said.

Saja Majeed, a 30-year-old civil servant in Baghdad and a mother of two, said she carries dollars in her wallet because it is safer and she sees little opportunity for the dinar to rise.
Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel
Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Pixel
"There is no industry in Iraq except oil. The dinar is linked to oil, but oil will run out one day," Majeed said.

Revaluation will only happen once the Iraqi government stabilizes. Iraq's central bank hopes to make one dinar equal to $1 at some point through redenomination and central bank-induced appreciation.
Iraq's deputy central bank governor Mudher Kasim told Reuters that process could take three years."

America investors are remaining patient.
"The big question is: where do you put your money in the U.S.? You can't get any interest in your money. Banks give you almost nothing on deposits," said Donna Simko, a real estate agent in her mid-sixties in Riverside, California.
"The gold rush into Iraq is just getting started

 

Article was published Nov 2012.  

"
Iraq's deputy central bank governor Mudher Kasim told Reuters that process could take three years."  

Guess 2016 is looking good!   :okjh:
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Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue? Empty Re: Disputes & Arguments about Revaluation! When will Iraqi Dinar Revalue?

Post by Ponee Tue Apr 26, 2016 10:18 am



Thank you guys for the contributions to this thread!

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