IRAQ-PAKISTAN: New Iraqi dinar prompts buying frenzy
[ This report does not necessarily reflect the views of the United Nations]
ISLAMABAD, 2 Feb 2004 (IRIN) - Motivated by the prospect of a lucrative windfall, small-time Pakistani investors and even ordinary people are flocking to currency dealers to buy the new Iraqi dinar at what they consider throwaway prices, hoping to reap the huge profits that could accrue when the situation in the war-ravaged oil-rich nation stabilises.
"People are looking at the Iraqi dinar as a lucrative long-term investment, with the possibility that they might see their money double in the next year or so," Junaid Riaz, the owner of Riaz Moneychangers, a currency-exchange dealership that has an established clientele from the diplomatic community, told IRIN in the capital, Islamabad.
The profits depended on how quickly the situation was gauged to have settled down in Iraq, Riaz said. "It will be profitable in the long-term, not in the short term. People are looking at one, possibly two years before they can gather the benefits," he added.
For the moment, however, daily transactions in Pakistan concerning the Iraqi currency ranked in millions of dinars, he said.
"Daily transactions average between 10 to 20 million dinars, which is somewhere between US $17,000-18,000," Riaz explained.
The new Iraqi dinar was introduced in October 2003 by the Coalition Provisional Authority (CPA), becoming that country's sole currency. Since then, however, reports of large-scale smuggling to several Gulf states as well as to South Asia, have overshadowed the strong gains the new currency has made against the US dollar.
In Pakistan, one Iraqi dinar was selling for Rs. 0.044 on Friday, creating a rush of customers eager to capitalise on what appears, to them, to be a get-rich-quick scheme come to vivid life.
"Last week, I bought 1,000,000 Iraqi dinars for about Rs. 47,000 [US $850.925]," Saleha Rajput, a school-teacher, told IRIN in Islamabad.
"If things go well, in about eight or nine months time, the profit should be about Rs. 10,000,000," she added, explaining that she had just invested another two thousand rupees from her daughter's savings after she found out about another dip in the dinar's parity against the rupee.
"People are buying the dinar by the millions and throwing them in their cupboards as they hunker down and wait for their investment to mature," Asad-ul-Haque, a marketing executive, told IRIN from the eastern city of Lahore.
"I personally know of so many people who have bought millions of dinars and stacked them away. The minimum anyone of these people has bought is 100,000 dinars," he maintained.
Currency dealers say the spate of buying is unprecedented, but was expected once the news made the rounds that stability in Iraq would mean a quick upturn in the new currency's fortunes.
Hugh Tant III The new Iraqi currency's rate is currently stands at 1,955 Dinar to one US dollar. A 10,000 Dinar note is worth approximately $5 US. To give you an idea of what 10,000 Dinar can buy, here are a few examples. Iraqis can buy a pair of child's shoes for 10,000 Dinar, 2 pounds of bananas for $.75 (1500 Dinar), a can of Coca Cola from the market costs $.25 (500 Dinar) and the Iraqi equivalent of a sandwich lunch (pita bread with meat and salad) for about $0.63 (1250 Dinar). http://www.whitehouse.gov/ask/20031120.html
posted
Sorry for all the posts, I'm just finding some great information0
New Iraqi Dinar is rapidly gaining in value and now available from a trusted US source New Iraqi currency is rapidly gaining in value and now available from a US source. Investment in the new Iraq is guaranteed under the Presidential Order 13303, which removes sanctions on investment in Iraq.
IRAQ (PRWEB) April 6, 2004 New Iraqi currency is rapidly gaining in value and now available from a US source.
Hugh Tant III, Director of the Iraqi Currency Exchange, states, "As oil exports increase and more funds are invested in Iraqi goods and services from outside the country, it is expected that the new Iraqi Dinar will appreciate in value over the long-term." http://www.whitehouse.gov/ask/20031120.html
Investment in the new Iraq is guaranteed under the Presidential Order 13303, which removes sanctions on investment in Iraq. US citizens are now allowed to invest in currency, stocks, bonds, real estate and business in Iraq.
Don't ever be sorry for informitive DD work! This is great!
Sooooo the president gave us the go ahead to invest in Iraq....
I suppose the next stop should be the baghdad central bank??? Seriously... there has to be a way to contact them so the money goes directly to the Iraq Bank system, instead of to the middle men? I am sure we would get the better exchange rate, they inturn get American dollars. I think this would be the better route?
-John
Posts: 759 | From: Long Island, NY | Registered: Dec 2003
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Alright, been reading and following. Good stuff. Where do I buy some? I love little things like this. Once bought, is it easy to track the value of the dinar?
Posts: 395 | From: Grand Rapids MI 49546 | Registered: Feb 2004
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quote:Originally posted by makemerich: This is a really interesting thread. My concern is getting burned on the purchase.
How can you know that the company/person you buy from is legit? How do you know their offering is legit?
What would you do to protect yourself? This is where buying off Ebay sounds more appealing. At least there is some course of action you could take.
Keep up the DD, this is good.
the most legit would be in person at a currency exchange... but, on ebay would be ok... just check the sellers rating and read the other buyers comments....
Posts: 1885 | From: Tampa, FL, US | Registered: Mar 2004
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quote:Originally posted by pharmdman: I don't think you did... you have to factor in conversion / transaction fees that you'd pay to buy from a currency exchange...
The conversion rate I gave earlier was right, 1:1477. On eBay the conversion rate is about 1:1170. Correct me if I'm wrong, but given just this info (not counting fees that currency exchange would charge), you lose about 300 dinar per dollar spent on eBay. So technically, the people on eBay are making a profit of 513,000 dinar per 2 million dinar sold. You're technically paying for 2513000 dinar...which would be worth $251300 if the dinar reaches 1 USD = 0.1 NID. Therefore, you'd be paying $51300 difference buying on eBay than through currency exchange. Maybe we should find out the fees we would have buying through currency exchange.
[This message has been edited by Smctbone (edited June 10, 2004).]
quote:Originally posted by Smctbone: The conversion rate I gave earlier was right, 1:1477. On eBay the conversion rate is about 1:1170. Correct me if I'm wrong, but given just this info (not counting fees that currency exchange would charge), you lose about 300 dinar per dollar spent on eBay. So technically, the people on eBay are making a profit of 513,000 dinar per 2 million dinar sold. You're technically paying for 2513000 dinar...which would be worth $251300 if the dinar reaches 1 USD = 0.1 NID. Therefore, you'd be paying $51300 difference buying on eBay than through currency exchange. Maybe we should find out the fees we would have buying through currency exchange.
[This message has been edited by Smctbone (edited June 10, 2004).]
I plan to do quite a bit of homework on this over the weekend.... I'll definitely let you know what I find out....
Posts: 1885 | From: Tampa, FL, US | Registered: Mar 2004
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posted
That link bones gives to the private banks has some info. I emailed one of the banks, I will see about a reply back.
What about buying directly from the Iraq banks? Perhaps we could negoiate better exchange rates? Then wire transfer the funds with shipping, then have them mail the dinars through a refutable mailing system. Is there a refutable mailing system in Iraq yet? Is Fedex or UPS worldwide there? Do you think G.O.D. delivers to Iraq?
-John
Posts: 759 | From: Long Island, NY | Registered: Dec 2003
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quote:Originally posted by JBCak47: That link bones gives to the private banks has some info. I emailed one of the banks, I will see about a reply back.
What about buying directly from the Iraq banks? Perhaps we could negoiate better exchange rates? Then wire transfer the funds with shipping, then have them mail the dinars through a refutable mailing system. Is there a refutable mailing system in Iraq yet? Is Fedex or UPS worldwide there? Do you think G.O.D. delivers to Iraq?
-John
LOL!!!
Posts: 206 | From: silver spring, MD, USA | Registered: Feb 2004
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Iraq introduces new Dinar currency Iraq, Economics, 10/6/2003
The Iraqi Central Bank on Saturday issued a new Iraqi currency which will be put into circulation on October 15th.
The assistant for the Central Bank governor Ahmad Salman Muhammad said that the bank has enough new dinars to replace the old dinars which carried the picture of the former Iraqi president Saddam Hussein, and "to maintain a reserve for two years." But he refused to specify the amounts of the already printed new dinars.
In a press conference he had held at the headquarters of the Central Bank amid strong security measures, Muhammad explained that the new dinars are of 50 and 250,000 and 5,000 and 25,000 bills and will replace the old dinars which can be exchanged until their circulation ends on January 15th, 2004. He said this " will be a unified currency for a united Iraq." http://www.arabicnews.com/ansub/Daily/Day/031006/2003100620.html
"to maintain a reserve for two years." Sounds like this currency is here to stay! For 2 yrs. atleast
Posts: 206 | From: silver spring, MD, USA | Registered: Feb 2004
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Faleh Dawood Suleiman, the deputy governor of the Iraqi Central Bank has assured that the Central Bank will not back off from its financial commitments inherited from the previous regime and will give everyone his rights.
Suleiman told Al-Hayat that Iraq has the full cooperation of all the Arab countries, and that the Central Bank will be independent and will not allow any government interference.
He added that the collaboration between the Arab banks and the Iraqi Central bank has been going on for a while now. Furthermore, this collaboration will not be affected by the events preceding, or following, June 30. Moreover, no obstacles will stand against this mutual collaboration.
As for the Iraqi debts to the Arab countries, he said that a strategic committee has been established and will soon solve the matter while serious studies are on the way to resolve the issue.
Suleiman said, "There are no intentions for substituting the new currency with another one."
He confirmed that the Central Bank did not bring up this topic and what is being repeated is no more than rumors that have the intention of weakening the banking system. The currency has been approved since the first day of its printing. The change in the new currency is realistic and means that the policies of the Central Bank are continuous and not just temporary and we will not look into the issue of June 30 and what comes after."
Suleiman said, "There are no intentions for substituting the new currency with another one." More evidence of a permanent, unified bill! Im starting to like this more and more...
[This message has been edited by BroBro (edited June 10, 2004).]
Posts: 206 | From: silver spring, MD, USA | Registered: Feb 2004
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quote:Originally posted by JBCak47: That link bones gives to the private banks has some info. I emailed one of the banks, I will see about a reply back.
I also emailed a couple of the banks to get some more information. Theyre 6 hrs ahead of us though...so it's only a little past midnight there ...we'll have to wait at least another 9 hrs for a response.
I'm curious about the shipping too, i guess they could just send the dinar back with our soldiers and supplies
quote:Originally posted by Smctbone: I also emailed a couple of the banks to get some more information. Theyre 6 hrs ahead of us though...so it's only a little past midnight there ...we'll have to wait at least another 9 hrs for a response.
I'm curious about the shipping too, i guess they could just send the dinar back with our soldiers and supplies
LOL... that sounds too much like "the check's in the mail!"...
Posts: 1885 | From: Tampa, FL, US | Registered: Mar 2004
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posted
With the state of things over in IRAQ, I think the dinar can only increase in value, and I agree with all of you that there is a good chance we might be looking at a 1000+% gain here. I think if we can iron out these few questions people have, I am in for a large quantity...
quote:Originally posted by donb: With the state of things over in IRAQ, I think the dinar can only increase in value, and I agree with all of you that there is a good chance we might be looking at a 1000+% gain here. I think if we can iron out these few questions people have, I am in for a large quantity...
Ditto... it will be AT LEAST a 1000% gain. I was actually thinking more of a 14000% gain, which is what it would be if the dinar reaches .1 NID = 1 USD (way below what it used to be!)
[This message has been edited by Smctbone (edited June 10, 2004).]
[This message has been edited by Smctbone (edited June 10, 2004).]
posted
You know...if our money looked like this, I think I'd be more hesitant about spending it. No offense, but I'd much rather look at the Gully Ali Beg and its waterfall between Mount Kork and Mount Nwathnin than Washington and Jackson any day. Toss in the pretty colors and you've got the perfect picture to frame...lol! http://www.buydinar.com/dinarPics5k.phpPosts: 372 | From: Belleview, FL, USA | Registered: Apr 2004
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quote:Originally posted by HiEveryone: cheapest 1 million dinar for $825
Saw that too...but youre still losing 243 dinar per US dollar That seems like a lot, so that's my last resort right now. I'm waiting for word from these Iraqi banks before I do anything.
quote:Originally posted by Smctbone: Saw that too...but youre still losing 243 dinar per US dollar That seems like a lot, so that's my last resort right now. I'm waiting for word from these Iraqi banks before I do anything.
Unless we get ppl to send us the money from their country (which seems to be E-Bay) Im pretty sure the exchange rate is universal. But plz post possibilities everyone, Im anxious to get in!
Posts: 206 | From: silver spring, MD, USA | Registered: Feb 2004
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its entirely possible they will not like the new Dinar.... I think there is a good chance the currency will change form again, and the only place to do it will be back in Iraq....
And then everyone will be offloading their Dinar at a deep discount on eBay if they announce a "re-conversion" must be performed in Iraq. The buyers, presumably with connections in Iraq, will be the ones making a profit
Though I do think that this would be the worse case scenario.
quote:Originally posted by BroBro: Unless we get ppl to send us the money from their country (which seems to be E-Bay) Im pretty sure the exchange rate is universal. But plz post possibilities everyone, Im anxious to get in!
Yeap, it sure is. But these people on eBay can easily get dinar, and jack up the cost. In terms of USD, they pay $1374 to get 2 million dinar...they in turn sell it on eBay for, in most cases on eBay, $1710...giving them a $336 profit every 2 million dinar sold. If we can exchange our currency with the same people these people are, we'll be lowering our cost and thus increasing our return in the long run. We just have to find out to directly exchange with these banks, etc...rather than going through a profit-taking middle man (ie. people on eBay).
is for th old iraqi dinar, with saddam hussain in picture
Be careful and check that they are 2003 new iraqi dinar
the other one is still in the auction so it will not be 20........
still the best rate is 825
Good catch, Hi!!! I removed the link so that someone doesn't accidentally bid on it!! I did my search with '-Saddam', but apparently that one got through... i didn't even look at the pic... I'd hate to have spent 400 bucks on that a$$hole's picture!
Posts: 1885 | From: Tampa, FL, US | Registered: Mar 2004
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posted
If we can find a bank that will deal with us directly, we can get the currency shipped via FedEx... they fly out of Baghdad International Airport... and delivery time to the USA is 4 days (allowing for customs inspection)...
Posts: 1885 | From: Tampa, FL, US | Registered: Mar 2004
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posted
Think real hard before you leap on this one, remember the us will have to back any currancy for that Gov. to succeed. Therefore when the dollar rises so will the Dinar, and vice versa. You will not profit on the reverse exchange. from dinar to us dollar. The only way you can profit is if the country becomes a major power... ie wont happen, we the US. will see that we have a major interest for years to come. therefore the dinar will be usless on the conversion to US dollar. Only my opinion. But several have lost HUGE already.
quote:Originally posted by COACHPHILM63: Think real hard before you leap on this one, remember the us will have to back any currancy for that Gov. to succeed. Therefore when the dollar rises so will the Dinar, and vice versa. You will not profit on the reverse exchange. from dinar to us dollar. The only way you can profit is if the country becomes a major power... ie wont happen, we the US. will see that we have a major interest for years to come. therefore the dinar will be usless on the conversion to US dollar. Only my opinion. But several have lost HUGE already.
Coach
I see what you're saying, but I don't think it will be that long... also, you can play outside the IQD/UDS box... if IQD and UDS are going hand in hand, you can convert IQD to British pounds to USD (for example) if you time it right... don't know if I want to get into all of that though... I was looking at this as a medium-long move with a kind-of-a lottery ticket twist!.
Posts: 1885 | From: Tampa, FL, US | Registered: Mar 2004
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...we'll have to wait at least another 9 hrs for a response.
