Historical perspective and Current prospectus by Viper 51
The facts - viper51
I can see that many have reached a point of high frustration and concern with the Iraqi Dinar endeavor. It is just not with some here at PTR but on every board you go to. It has been a long and continuously trying road with many highs and lows. I will try to give some facts as to why I believe in this RV. Lets look at some of the facts about this Iraqi Dinar venture and what the reality of the RV is based on. I'am not perfect so feel free to respectfully add or debate any of this info. I will make this as short as possible.
In 1932 the IQD was pegged to the BP and at $4.86 USD. and held there until 1949 when due to conflict after conflict interupting progress the IQD dropped to $2.80. The IQD held there until around 1971 when there was major realignment of world currencies which caused a devaluation of the USD which then boosted the IQD to $3.39. By 1982 the IQD had devalued by around 5% and ended up around $3.22 USD per IQD. Some countries did not recognize these rates and bartered rates with Iraq.
Now lets jump up to the first Iraq - US war over Kuwait. At this time the instability of Iraq run by Saddam caused the IQD to become unstable due to sanctions imposed before and after this conflict. The result of the 2nd Iraq-USA war was total destruction of Iraq's financial system and infrastructure. Once the war was over Iraq was allowed to print and issue new currency in 2003-2004 which is the currency we now hold. The controlling forces over Iraq did not want Iraq having a strong currency early on after the war as to be able to curb their monetary power to support enemy elements in and out of Iraq that would buy weapons to attack Allied forces. The IQD was then around 1800-2000 IQD = 1 USD. There have been several small increases in the IQD up to this point and the value as we know is around .1165 IQD per 1 USD or roughly 1/10 th of a cent usd at present.
The CBI announces they will drop the 000's and print a new currency that will increase the value of the Dinar against the USD. The new currency will consist of the following new Dinar notes 5 - 10 - 25 - 100 - 200. There will also be coins from 1/4 fil to a 1 and 2 dinar coin - possible 5 coins in all. It is also believed they will keep the 50 - 250 and 500 dinar notes with up graded security features. MANY of us already know this but WHY is the NEW CURRENCY SO IMPORTANT to this RV?
Iraq's present currency system requires 2 men and a boy to carry money to make any significant cash purchase! Iraq wants to cut down on the currency that has to be handled under the present system and lower the amount of money in circulation. How do they accomplish this? THEY delete the 000's and PUT OUT SMALLER DENOMINATIONS WITH GREATER VALUE!
How do I know this? The whole purpose of the new denoms is for the Iraqi people to have to carry less dinar with greater value and the new notes will accomplish this along with a much wanted dedollarazation in Iraq.
I do not believe for one second that Iraq would release new dinar notes at the present rate of 1/10th of a cent USD. That would mean at present IQD rate the rates of the new notes would be as follows 5 IQD = 1/2 cent 10 IQD = 1 cent USD 25 IQD = 2 1/2 cents USD 100 IQD = 10 cents USD. The new notes would not be worth the paper they were printed on and Iraq wants to lessen the paper currency in circulation NOT increase it. I dont think the Iraqi people would want to have to carry 200 of the 5 dinar notes which would only be 1 USD to buy a coke. IMHO the release of the new denoms will be the release of the RV.
So look at the history of the value of IQD. Look at the wealth Iraq has. Look at all the goals they have set and some of which REQUIRE the value of the IQD to be as great or Greater than the USD. All the facts of why the Iraqi Dinar WILL RV is right in front of you. No one knows the date or rate for sure but I do know this for sure the RV IS coming so take this time to make sure you are ready for it.
As my friend WAR pointed out in a post earlier when it comes to intel or info it all changes so fast BUT if you look deep enough you just might find one of the missing pieces to the puzzle. We really do try and give you the best we can and would never intentionally mislead any of you. You asked us to tell it all, the good, the bad and the unreal even if its not what you wanted to hear. I hope this will help make a better day for all who have doubts. Please keep the faith and hang in there. --Viper--
chattels, I saw this in another forum, and I think it's great! It's very well thought out, logical, and we learn some history of the Iraqi dinar to boot! Very encouraging, and good for people to share with one another and with newbies who might get confused over the LOPster and low rate (under a dollar) hype. Good job!
Yes... going back to like 1923
the Iraqi dinar has NEVER been worth less than $2.50.. IIRC
except for this present "war" period starting when Sadaam invaded Kuwait...
this period which is soon coming to a conclusion.