7 Questions For Dinar Speculators - Post By John Lee
7 Questions for Dinar Speculators By John Lee. Iraqi Business News
We get many enquiries at Iraq Business News relating to the future of the Iraqi dinar (IQD), for example:
Will the Iraqi dinar increase in value?
Will the currency be re-denominated, dropping the ‘three zeros’?
Is it wise to buy Iraqi dinar?
Firstly, Iraq Business News is not in a position to give investment advice. Our mission is to provide our readers with the highest quality information on the business and economy of Iraq.
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As the value of the Iraqi dinar affects trade, we will continue to report on any possible re-valuations and/or redenominations as soon as information is available.
We hope that this information will be useful to the key decision-makers in Iraqi business, and to all who are interested in the development of the country; gamblers and people involved in get-rich-quick schemes/scams are not our target readership.
It’s clear from the correspondence we receive that some people, who like to think of themselves as ‘investors’, genuinely believe that at the stroke of a pen they will make a 1,000-fold return on their purchase of dinars.
Those people might like to consider some questions before putting any further funds at risk:
If the dinar becomes 1,000 times more valuable, it will become 1,000 times more expensive to do business in Iraq. Do you think this would be sustainable?
Would you buy dinars at 1,000 times the current price? If not, why do you expect someone to buy your dinars at 1,000 times what you paid for them?
If there was any possibility of a 1,000x revaluation, would dinar sellers be so keen to sell their stock to you? Is it possible that they think their mark-up is the best profit they can make?
Many investment professionals promote their ideas and “talk their book”. Why has no accomplished investor promoted the idea of massive gains from the dinar?
The 1,000x rumour has been circulating for many years, but the forex markets have not reacted by driving up dinar prices significantly. On what basis do you believe you’re more “in the know” than the market?
Does scepticism of massive gains from the dinar make you angry? If so, and if you think you’re going to make 1,000 times your money, what is the reason for your anger?
Do you seek information that confirms your opinion, and dismiss information that challenges your opinion?
We hope these questions will help speculators and potential speculators in their decision making. Please feel free to share your opinions in the Comments section below.
I am glad someone posed this to BGG. I read a bit ago--and first article in several years that really concerned me. The "too good to be true " really slipped in there. The many follow up comments were all pretty much the same. Have we been duped? And just for seller/dealers to make money?? Seems like a lot of very intelligent people have bought in!!!
Said a member of the Finance Committee of the Iraqi parliament that the new currency will enter circulation in the market, and will be taken thousand dinars from citizens for one dinar
She Najiba Najib Albamrna member of the Finance Committee in the Iraqi parliament that the new currency will trade from the beginning of the year 2013 and will be removed Asfarha "and will dinar metal and 50 dirhams and 25 dirhams market and will be replaced dinar per thousand dinars and will be the 25 thousand dinars to 25 dinars" . http://translate.google.com/translat...ed=0CHUQ7gEwBA
A few weeks ago, a source at the Iraqi Central Bank announced the government’s plan to [re-denominate] the [Iraqi] currency by cutting three zero from all notes, effectively dividing these notes by 1000. 1000 dinar notes would be changed to one dinar notes and 5000 [old dinars] would equal five new dinars. http://www.al-monitor.com/pulse/busi...iraqi-and.html