IRAQ: Dinar Falls Victim to Violence (6/15/2004)
IRAQ: Dinar Falls Victim to Violence (6/15/2004)
I did a little research to see where Historian got her info about the Kuwaiti dinar's "RV" and found this article from 2004. Apparently this is what started all of the guru talk about the Kuwaiti dinar dropping below 10 cents, but let me remind you that this is talking about the street value, not the official value that would be recognized internationally. There was NO revaluation!
_______________________
CAIRO, Jun 15 2004 (IPS) - Egyptian speculators who stashed away “Bremer dinars” earlier this year in the hope their value would skyrocket have suffered enormous losses as the official Iraqi currency plummets.
Egyptian speculators who stashed away “Bremer dinars” earlier this year in the hope their value would skyrocket have suffered enormous losses as the official Iraqi currency plummets.
“Many people sold anything they could to buy Iraqi dinars,” Mohammed al-Abyad, chairman of the Egyptian Foreign Exchange Association (EFEA) told IPS. “When the dinar went down these people lost a lot of money.”
The Iraqi dinar was trading at one Egyptian pound (16 cents) per 50 dinars on the black market before its value dropped sharply earlier this year on news of escalating insurgency in Iraq. The pound is now worth 210 dinars on the black market.
“The black market has narrowed and the currency has no liquidity now,” said Shady Sharaf, head of market research at al-Shorouk Brokerage. “The people cannot sell the dinars they bought, which presses on demand.”
The new Iraqi dinar banknotes introduced by the U.S. command last October replaced old banknotes bearing images of deposed Iraqi leader Saddam Hussein. Speculators believed the value of the “Bremer dinar” named after the U.S. civilian administrator of Iraq L. Paul Bremer would rise as the economy of war-devastated Iraq recovered.
Thousands of Egyptians working in the Gulf region brought home bags stuffed with the new Iraqi dinars. They stashed away the currency or sold it for quick profits to other speculators on the black market.
“They remembered what happened in Kuwait, and believed the same thing would happen in Iraq,” al-Abyad said.
The value of the Kuwaiti dinar fell to less than 10 cents during the country’s occupation by Iraqi forces in 1990, but climbed steeply after its liberation by coalition forces the following year. It now trades at 3.50 dollars.
“The situation in Iraq and Kuwait is very different,” said al-Abyad. “Kuwait recovered in little time because its (infrastructure) remained intact.”
The speculation was based on credibility, says Alaa al-Shazly, economics professor at Cairo University. “The dinar is backed by the U.S. and people wouldn’t have thought the U.S. would get into something that would turn out to be a failure.”
Egyptian law does not explicitly prohibit the possession of Iraqi currency, but authorities have taken measures to limit rampant currency speculation. The Central Bank of Egypt has prohibited banks and foreign exchange offices from listing or trading the Iraqi currency. Customs authorities say they have received orders to confiscate Iraqi dinars from arriving passengers.
“The government is more informed simply because they know the political situation is unstable,” said al-Shazly. “It understands that the currency doesn’t carry any weight.”
A currency trader told IPS he was lucky to sell all his dinars before the exchange rate began to sink. He said many people are still holding on to dinars hoping the currency will recover.
“If the situation improves in Iraq maybe the dinar will go up again,” he said, “but I won’t keep them any more. It is too risky.”
Mohammed Aboul Eyein did not get out in time. The farmer sold livestock to purchase dinars when they were at their highest value only to watch his investment crumble.
“Everyone was saying the dinar would increase ten times in value,” he said. “Now nobody wants them.”
Local experts say that if trading in the Iraqi currency were allowed in Egypt, a pound would fetch 235 dinars.
“Until now, the government could not legalise dinars because in order to trade in any currency you need to be able to transfer the currency to and from its respective country,” said al-Abyad.
He points out that the Iraqi dinar recently began trading on the international market. This could give the Egyptian government fresh incentive to legalise dinar trading at banks and foreign exchange offices.
“Legalising the dinar would be good for the people and even the government because the money is already in the market,” he said. “This would also allow people to trade it and put their money back (into circulation).”
http://www.ipsnews.net/2004/06/iraq-dinar-falls-victim-to-violence/
_______________________
CAIRO, Jun 15 2004 (IPS) - Egyptian speculators who stashed away “Bremer dinars” earlier this year in the hope their value would skyrocket have suffered enormous losses as the official Iraqi currency plummets.
Egyptian speculators who stashed away “Bremer dinars” earlier this year in the hope their value would skyrocket have suffered enormous losses as the official Iraqi currency plummets.
“Many people sold anything they could to buy Iraqi dinars,” Mohammed al-Abyad, chairman of the Egyptian Foreign Exchange Association (EFEA) told IPS. “When the dinar went down these people lost a lot of money.”
The Iraqi dinar was trading at one Egyptian pound (16 cents) per 50 dinars on the black market before its value dropped sharply earlier this year on news of escalating insurgency in Iraq. The pound is now worth 210 dinars on the black market.
“The black market has narrowed and the currency has no liquidity now,” said Shady Sharaf, head of market research at al-Shorouk Brokerage. “The people cannot sell the dinars they bought, which presses on demand.”
The new Iraqi dinar banknotes introduced by the U.S. command last October replaced old banknotes bearing images of deposed Iraqi leader Saddam Hussein. Speculators believed the value of the “Bremer dinar” named after the U.S. civilian administrator of Iraq L. Paul Bremer would rise as the economy of war-devastated Iraq recovered.
Thousands of Egyptians working in the Gulf region brought home bags stuffed with the new Iraqi dinars. They stashed away the currency or sold it for quick profits to other speculators on the black market.
“They remembered what happened in Kuwait, and believed the same thing would happen in Iraq,” al-Abyad said.
The value of the Kuwaiti dinar fell to less than 10 cents during the country’s occupation by Iraqi forces in 1990, but climbed steeply after its liberation by coalition forces the following year. It now trades at 3.50 dollars.
“The situation in Iraq and Kuwait is very different,” said al-Abyad. “Kuwait recovered in little time because its (infrastructure) remained intact.”
The speculation was based on credibility, says Alaa al-Shazly, economics professor at Cairo University. “The dinar is backed by the U.S. and people wouldn’t have thought the U.S. would get into something that would turn out to be a failure.”
Egyptian law does not explicitly prohibit the possession of Iraqi currency, but authorities have taken measures to limit rampant currency speculation. The Central Bank of Egypt has prohibited banks and foreign exchange offices from listing or trading the Iraqi currency. Customs authorities say they have received orders to confiscate Iraqi dinars from arriving passengers.
“The government is more informed simply because they know the political situation is unstable,” said al-Shazly. “It understands that the currency doesn’t carry any weight.”
A currency trader told IPS he was lucky to sell all his dinars before the exchange rate began to sink. He said many people are still holding on to dinars hoping the currency will recover.
“If the situation improves in Iraq maybe the dinar will go up again,” he said, “but I won’t keep them any more. It is too risky.”
Mohammed Aboul Eyein did not get out in time. The farmer sold livestock to purchase dinars when they were at their highest value only to watch his investment crumble.
“Everyone was saying the dinar would increase ten times in value,” he said. “Now nobody wants them.”
Local experts say that if trading in the Iraqi currency were allowed in Egypt, a pound would fetch 235 dinars.
“Until now, the government could not legalise dinars because in order to trade in any currency you need to be able to transfer the currency to and from its respective country,” said al-Abyad.
He points out that the Iraqi dinar recently began trading on the international market. This could give the Egyptian government fresh incentive to legalise dinar trading at banks and foreign exchange offices.
“Legalising the dinar would be good for the people and even the government because the money is already in the market,” he said. “This would also allow people to trade it and put their money back (into circulation).”
http://www.ipsnews.net/2004/06/iraq-dinar-falls-victim-to-violence/
Sam I Am- GURU HUNTER
- Posts : 1758
Join date : 2016-01-21

» DINAR SCAM Victim Loses Her Family
» FBI Seeking Victim Information in Dinar Corp. Investigation
» DOLLAR FALLS AGAIN AGAINST IRAQI DINAR IN ONE DAY
» sandyf: "Iraq seeks to join the World Trade Organization - Iraq has been trying to join the WTO since 2004" 7/18/21
» Strategic expert: The value of the Iraqi dinar will decrease in relation to the US dollar as oil falls
» FBI Seeking Victim Information in Dinar Corp. Investigation
» DOLLAR FALLS AGAIN AGAINST IRAQI DINAR IN ONE DAY
» sandyf: "Iraq seeks to join the World Trade Organization - Iraq has been trying to join the WTO since 2004" 7/18/21
» Strategic expert: The value of the Iraqi dinar will decrease in relation to the US dollar as oil falls
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum
» After an agreement to invest $27 billion in energy, France's Total withdraws from Iraq
» Parliamentary Finance: Write a paragraph to cancel payroll deductions in the budget
» WHY IS ANYONE SPEAKING ABOUT THE MASTER'S TRUST WHEN IT IS A SCAM!?!?!?!
» CBI sold +1.3$ billion in forex last week
» Iraq paralysed by government stand-off as Moqtada al-Sadr unleashes protest
» Introducing myself...
» Nearly two years after launching the White Paper, what are the achievements?
» USD/IQD rate closes slightly lower in Baghdad
» CBI sells +240$ million in forex on Sunday
» Iraq without a budget for 2022
» Al-Nusairi: The Central Bank’s initiatives to revitalize the economy amounted to 18 trillion dinars and achieved their goals
» A new talk from Al-Kazemi's advisor regarding the budget
» The assets of the International Development Bank rise to 1.5 trillion dinars
» CBI sells +260$ million in forex on Sunday
» New member
» USD/IQD exchange rates inch up in Baghdad on Saturday
» The Central Bank: We supported the economic sector with 18 trillion dinars
» The Central Bank sets the goal of its call to establish a sovereign fund
» Al-Maliki's leaks: a political boom looms over the Iraqi arena
» The Central Bank of Kuwait allows applications to establish digital banks
» Including Iraq ... the price of bitcoin in Arab currencies
» Fitch announces the credit rating of Iraqi Islamic banks
» Adelaide, South Australia Redemption?
» Countdown to US implosion begins after failure of Biden Mid-East trip
» What distractions are in "The Dinar RV"...How many wild goose chases did you fall for?
» After slashing four zeros, Iran releases new banknotes
» Presidential elections: no PUK-KDP agreement yet
» Al-Maliki: PMF members are "a whole nation of Jihadists"
» MP warns of strife following al-Maliki's leaked recordings
» USD/IQD closes slightly higher in Baghdad
» Iraq proposes the establishment of the Middle East Bank for Development and Integration
» Al-Kazemi: World Bank indicators confirm that Iraq has passed the economic crisis in a very short time
» Some of them are negative.. 4 effects of the decline of the euro on the Iraqi economy
» The Central Bank calls for the establishment of a sovereign fund to benefit from the financial abundance
» Our economy and stagflation in the global economy
» Experts: Turkey is preparing to cut 56 percent of the Tigris supply by building the Jazra Dam
» Al-Nusairi: Sustainable development in Iraq is achieved by strategic economic agreements with brotherly and friendly countries
» Euro reaches parity with dollar for the first time in 20 years
» Forex-US dollar notches in Baghdad