Will a Revaluation of the Iraqi Dinar Happen?
Imagine a call from a distant country. After purchase, wait a short time to get an ROI of over 100,000%. You can step out of the investment arena and live the life you’ve always dreamed of.
Would it be good?
The currency we will be looking at is the Iraqi Dinar aka IQD.
First of all, Iraq has potential! Bag of Potential! Forecast reports of annual GDP change of 8.6% in 2011, 8.4% in 2012, 10.2% in 2013 and similar figures for the next five years.
Most of the world’s economies are in decline, but Iraq is not.
So why are you looking at 5 million investors buying Iraqi dinars? Do they know what we don’t?
The point of trading is simple. Those pumping dinar sales will tell you that the Iraqi dinar is massively undervalued and the only option is to complete a “revaluation”. Wake up in the future and realize there is a $100,000 gale for every dollar invested.
Some in the dinar community expect less, some expect more
Many of us know that Iraq has a lot of potential and excels despite the constant chaos of everyday life. An excellent example of how the economy is doing when Iraq receives its first IPO since the days of Saddam Hussein, an Iraqi telecom company called Asiacell is the largest IPO in the Middle East and North Africa since Saudi Arabia Mining went public. I got a listing. On the Saudi Stock Exchange in 2008
Even taking oil prices into account, Iraq currently ranks fifth in terms of oil reserves in the world. And yet, much of Iraq remains unexplored! The current documented reserves are probably the highest, especially given new exploration techniques.
As is clear, Iraq is waiting for success.
My prediction is that we will see the denomination of the Iraqi dinar and the three zeros will be erased from the currency. This means that the current legal tender becomes void once exchanged for a newly minted legal tender within 90 days.
For example, today you filled up the car for an argument worth $21.47 with 25,000 dinar notes, and once the denomination was opened, you made new 20 and 5 dinar notes. Go back to the same place to buy gasoline and instead of spending 25,000 dinars, pay with a new bid of 25 dinars. This means that the purchasing power is exactly the same and there are no more, no more winners and losers. Meanwhile, the exchange force for the USD remains the same as 25 Dinars get you $21.47. I want to take a moment to look at what happened in late 2003 and early 2004 when coalition local authorities issued new Iraqi dinars (the ones currently in circulation) in exchange for the old Iraqi dinars that were wearing Saddam’s face.
From October 15, 2003 to January 15, 2004, anyone inside Iraq could exchange for a new statutory tender, but people outside Iraq did not. After January 15, those holding old bids could no longer be exchanged, and those bids became void.
The risk facing currency speculators is that Iraq will denominate again, leaving only those who can’t make it to Iraq with piles of worthless currency, given that history has allowed domestic currency. If allied governments (US, UK, etc.) did so when they were in power, I think we should seriously examine this, given that Iraq has full powers, and it is likely that she will do the same at will.
Some might say, “If Iraq certainly considers such an action, its moral obligation is to stop selling to overseas buyers.” Unfortunately, the Iraqi Central Bank’s mandate is to sell a large portion of its currency to the highest bidder.
[Tweet “If Iraq is definitely considering such a step, its moral obligation is to stop selling to overseas buyers]]
Article 32 of the Monetary Law gives them the right to remove three zeros, and currency exchange is allowed only domestically.
Iraq still only has over 71tn of real banknotes, which will be worth $11trn on revaluation.
Dollars in circulation end at 25% of IQD (M2).
It is also paradoxical to think that Iraq will use oil as an Iraqi currency support/inflation hedge because Iraq has burned, sold and depleted oil. There is no magic vault where oil is stored because it has to be sold or used constantly. This means that the currency is considered overvalued whenever a barrel goes through this process.
conclusion
For many dinar holders outside of Iraq, the future remains bleak, contrary to what dinar enthusiasts have been saying. The fact that the numbers don’t add up should be enough to tell you this quick rich error.
Invest in a site that gives investors a sense of reality in Baghdad Iraqi dinars.
This article was written by Baghdad Invest.
Thanks for reading!
If you have any questions about the Iraqi Dinar Revaluation, please leave a comment below!
