Originally Posted by
DinarGroupie
I disagree with SWFloridaGuy for two reasons: 1. If they only come out at about the dollar rate, that isn't much of an incentive for the Iraqi people to relinquish the U.S. dollar that they have gotten used to, and has served them well these past nine years. To make a switch to the dinar enticing, the dinar must be worth much more than the dollar. 2. Shabibi has said that the dinar will be the strongest currency in the region. This seems to mean that it will even be a little higher than the Kuwaiti Dinar, which is currently around $3.60 so I am expecting a rate a few cents higher than that. But also remember that the dinar had always been much higher than the U.S. dollar before it was devalued during the war. This shows that Iraq has the resources to support a $3 plus rate, and their national pride will want them to return to where they were before, and maybe a little higher due to inflation since then. SWFloridaGuy is making the same mistake (in my opinion) that many are making regarding the "1 to 1" articles. Remember that they are intended for the average Iraqi, for their education and not meant to be a primer for the average American investor. A 1 to 1 is an oversimplification on the part of the CBI to make the Iraqi public more confortable with what they are about to do. The last time the Iraqis had to deal with a "different" currency, it was when Saddam Hussein was playing his games with the dinar, and they lost confidence in it. Shabs wants to restore that confidence just before a revalue and introduction of new, lower denoms.