I'm not quite sure what you're saying coach. I agree that the US must back up the currency, but we helped them set up this new dinar, and we "encouraged" them to create new laws over the Central Bank of Iraq, allowing the Central Bank to help maintain the economy as a bank should, including setting up the exchange rate. As far as the dinar increasing and decreasing in value parallel to the US dollar, I disagree. Iraq will be a sovereign state June 30, control will return to the hands of the Iraqi people (of course we will help maintain order until the freely elected government takes control late 2005). The value of their currency will be backed by the value of their oil, and their economy will grow separately from the US economy. Maybe the world wont let them become a major power, but the Iraq economy can still grow very strong, especially relative to what it is at right now. I would agree with your opinion IF the US were to take control of all or many of the oil fields in Iraq...but it is my understanding that we will not have control over the oil. This article mentions how "control over allocation and expenditure of Iraq's oil revenues" will lie completely with the interim government...which will, in turn, lie completely with the freely elected government in late 2005. http://www.iraqrevenuewatch.org/reports/051104.pdf
By the way, I have a terrible understanding of politics...lol...so please point out something I screwed up. But this will be a long term investment, I was thinking at least 2 or 3 years. Just through this research though, I have noticed that the Iraqi economy and the value of the new dinar has been improving and increasing rapidly (I'll try to find those articles again).
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Maybe I posted this already, I don't know..but here it is:
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.
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Slight correction: The iterim government will be replaced by the iraqi transitional government in elections this Dec (2004). The permanent Constitutionally elected government will be elected no later than December 2005. http://www.cpa-iraq.org/transcripts/20040609_UNSCR_Text.html ^revised and officially adopted version of the UN Security COuncil Resolution, June 7, 2004 (revised from May 17, 2004...the link I posted previously).
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The following link provided by Smctbone provides a great deal of info. Also, this addresses the USD being linked to the IQD - basically it's not. http://www.whitehouse.gov/ask/20031120.html
quote:Dave, from Roseville, CA writes: Will the Iraqi people eventually take over control of their money supply? Also, what is the collateral for their currency?
Hugh Tant III The Iraqi people already have control of their money supply. Their collateral, like in the US, is based on foreign exchange, precious metals (like gold) and Treasury bills.
I also emailed every bank on the previously provided list. One has been returned as undeliverable (Bank of Baghdad) and no others have responded. I'll keep you updated.
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Well, either the 3 private banks I emailed decided to ignore me or they were just too busy to answer yet. OR..maayybe, our emails had to be screened first by the government...lol
Anways, I hope one of us gets a response from them Monday morning.
quote:Originally posted by makemerich: so am i thinking of this correctly?
this is the current exchange rate: 1000000 IRAQI DINAR (IQD) = 687.2852 US DOLLAR (USD)
so those websites that are selling 1mil IQD for $1299 are totally ripping oyu off, right?
looks like ebay is a better option!
I'm still trying to figure out the best option... I can't seem to find current fees associated with converting to and from UDS/IQD... sometimes the fees can be VERY hefty... have you ever tried to convert Canadian dollars to US dollars at a bank NOT near the border? It's hugely expensive.. to the point that you just keep the Canadian money as a souvenier...
I haven't received any responses from any of the banks either, but I'll still keep you posted when I do...
quote:Originally posted by makemerich: so am i thinking of this correctly? this is the current exchange rate: 1000000 IRAQI DINAR (IQD) = 687.2852 US DOLLAR (USD) so those websites that are selling 1mil IQD for $1299 are totally ripping oyu off, right? looks like ebay is a better option!
Absolutely...they are a complete rip off, selling at almost 1 USD:555 Dinar. Right now eBay is the better option. But we're still waiting for responses from the private Iraqi banks we've contacted.
quote:Originally posted by Tigersharks: I am new at this, but why could you not just go through a broker or online to trade the dinar?
It seems that there are companies that you could do this through so I was just curious.
Tiger, right now the ONLY way to get US dollars in return for Iraqi dinars is PHYSICALLY in Iraq. they're not being (edit: 'be' to 'being') traded on exchanges right now, so you can't go to forex.com, for instance. You either buy them from ebay, an online site that has some, or you go directly to someone in Iraq (in our case, we're hoping to have a bank Fedex them). All three ways involve risk. And then there's the opposite problem of trying to cash them in. Hopefully, by then they will be trading outside of Iraq.
[This message has been edited by pharmdman (edited June 12, 2004).]
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the way that they are assasinating thier leaders. that country is going to be a long time before they ever get the stablity they will need to get their curency back to the values you would like to see.
nice idea but i think this is the wrong time or at least a very long long haul investment.
quote:Originally posted by penny-trader: the way that they are assasinating thier leaders. that country is going to be a long time before they ever get the stablity they will need to get their curency back to the values you would like to see.
nice idea but i think this is the wrong time or at least a very long long haul investment.
It will be a long investment, but not as long as you'd think... their money's already doubled in value (compared to the USD) since fall.... but you have an excellent point!
quote:Originally posted by pharmdman: It will be a long investment, but not as long as you'd think... their money's already doubled in value (compared to the USD) since fall.... but you have an excellent point!
I absolutely agree...the dinar value is really rocketing. Obviously its increase in value will gradually slow until they gain the stability that you mention (which is when it will begin to rocket again), and that will be within the next few years when hopefully the freely elected government sets things straight at the end of next year, or even the transitional government at the end of this year (that's the gamble with this...there's no such thing as a get rich quick scheme...other than QBID and CMKX )
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quote:Originally posted by Doji say what!!: What about a international airport they have money vendors
That could work, but i dont think they offer exchanges to Iraqi Dinar yet...soon, but not yet. That's something to check out though, I guess I can start looking that up.
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I have a sister in the military that can get me as much of the old saddam money as I want free of charge is there still any worth to that style? she also said she would get me as much of the new as I wanted just send the money has anyone else thought of this routto purchase?
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quote:Originally posted by onthemark: I have a sister in the military that can get me as much of the old saddam money as I want free of charge is there still any worth to that style? she also said she would get me as much of the new as I wanted just send the money has anyone else thought of this routto purchase?
I've definitely thought of that...I just don't know anyone in Iraq at the moment. Getting currency exchanged there would provide the best rate BTW, the old Saddam money will or already has little to no value. They washed out all of it and replaced with the new dinar, collectors might like to get their hands on the Saddam dinar though.
quote:Originally posted by Smctbone: That could work, but i dont think they offer exchanges to Iraqi Dinar yet...soon, but not yet. That's something to check out though, I guess I can start looking that up.
The ONLY way you can exchange IQD/UDS is physically in Iraq... for the time being... I'm sure that will change in the future, but by then it may not be worth it.
quote:Originally posted by onthemark: I have a sister in the military that can get me as much of the old saddam money as I want free of charge is there still any worth to that style? she also said she would get me as much of the new as I wanted just send the money has anyone else thought of this routto purchase?
The old Saddam money is worthless... unless you're in the woods and one of the Charmin bears has hijacked your last roll!
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I got a reply from the Investment Bank of Iraq...
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Dear Sir,
Your email 10th June 2004 under reply we can sell you or your authorized agent Iraqi dinars on the counter of our bank but not ship to USA. Arrange the transport by yourself. Instruct your bank to transfer your US dolls to our account No. 0019431550201 with the Housing Bank for Trade & Finance. Amman, Jordan. When information reach us from this bank that money is received by him we shall open an account in your name then you can use the account to purchase Iraqi dinars.
Best Regarts,
Ibtisam N. Aboud Executive Manager of International Division --------------------------
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Still can't take the money out... It would be way better exchange rate then what I paid on ebay if you had a relative in Iraq or something...
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quote:Originally posted by bauer: Still can't take the money out... It would be way better exchange rate then what I paid on ebay if you had a relative in Iraq or something...
I'm still working on it!
I have emails out to a few other banks in Baghdad, so hopefully we'll hear some other news (or at least some other options).
Another angle I have been trying to work: You can't exchange USD/IQD other than Iraq. However, can you exchange IQD for other world currencies outside of Iraq? If so, couldn't we just do a double flip? For instance, USD/GPB then GPB/IQD....
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Was there any word on what kind of exchange rate they offer? Buying anywhere else forces a huge premium, it might be well worth the extra shipping costs to buy it from the bank if they don't charge a large exchange fee.
quote:Originally posted by pharmdman: I'll post everything that I find... unfortunately, seems like information from Iraqi banks is trickling rather slow.
That is to be expected with the state of things over there. It's not big of a problem though, as the Dinar isn't going to skyrocket in the immediate future, we have some time. I am very interested in the proposition, I think history will prove correct and the value will go up over a long period... I am willing to wait. I'm in for a huge amount if we figure out a solid exchange process.
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No one is going to touch the Iraqi Dinar because the country isn't on it's own. When the new government takes over and the oil begins to flow we will see dramatic movement. The other side of the coin is the massive debt Iraq is buried beneath. President Bush is trying to get its creditors like Russia, France and Germany to forgive the "vast amount" of Iraq's debt. It's looking very hopeful that will happen. The world is smiling upon Iraq right now despite ongoing problems within its borders. My bro in law is in Kuwait just now buying every dinar he put his hands on for us both. Almost every islamic country is buying dinar by the truck loads...Egypt, Saudi Arabia and Pakistan to name a few. You can check out World Bank and Asia News, they both have websites.
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