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View Full Version : Let me get this straight


wildseed
08-24-2004, 12:03 PM
Greetings everyone I'm new here and just invested in a couple of million Dinar. I am excited as everyone else and I have deep feeling that we are committed to the long term health of Iraq and that the Dinar (if it is kept) will increase in value (over a long time possibly) I invested only what I could lose and have been reading the forums for a few weeks now.

Please don't let my questions detract from any enthusiasm as I am just curious. I have a few questions on how will this process will work. For example the Dinar goes to .33 and if you purchased 10 million Dinar at the current prices (not outside the realm of possibility given the current exchange rates). Then say for example banks in the US will start becoming available to exchange Iraqi Dinar. What will happen next?

1. You will have a million people rushing to these few banks to become millionaires. Can the US economy or the banking system handle that? How can a bank take millions of people who had no money and then deposit what will equal millions upon millions of dollars when the 'gold rush' happens?

1a. Can't us banks 'limit' the amount you can convert per year to say 100K per person?

2. Won't the process of mass exchanging of Dinar for US dollars devalue the Dinar?

3. What if IRAQ decides to change thier currency? With only a specific timeframe to exhange your Dinars, wouldn't that create a mass panic for people in the US to dump Dinars? Where would they dump them?

4. If you have 10 million Dinars (and the exchange rate goes up to .33 per us dollar) in your matress and there is not a bank in your state, you will have to drive or otherwise take what would equate to 3 million dollars in a plastic bag to the bank. Is that a little dangerous?

5. This is a silly question but what happens to all the e-bay and website sales in progress? I bet they dry up pretty quick if the Dinar goes to .33 US.

I read the forums pretty well and apologize if these questions are already answered. I did not see specific informaiton regarding this issues. Heres hoping.

-wildseed

Jeffrey
08-24-2004, 12:20 PM
I don't think that there are "millions" of people in the US that are holding "millions" in Dinar. I would venture to say that there is only a very small percentage of Americans who have actually invested in the Dinar....and of those who have, even fewer invested in millions of Dinar.

If the Dinar opens at (whatever) amount....not everyone is going to go running to the bank to "cash" them in at the same time. Different people have different ideas of what level they want their investment to reach. Some people would cash in at .01, .05, .10, .15....etc. So the "cashing in" process would be spread out.

When a person does go to cash in....lets say he/she has 1 million Dinar and it is trading at .25.....they aren't going (for the most part) to walk up to a window and walk away with $250,000 in their pocket. I would think that they would put it into a bank account. So there would not be a cash drain on any US banks.

This is just my opinion....but hope it helps. :wave:

Marilyn
08-24-2004, 12:50 PM
Your intuition is right "on the money", hehe.
From everything I've read the past six months, I've gleaned the following:

The World Bank is preparing for the release of the IQD to the world by shoring up reserves where they are needed. Our investment has helped Iraq to build up their reserves of USD, which helps to support the Iraqi economy.

This is also the reason why only certain banks are authorized to handle the IQD. They will prepare for the flood of intial exchanges that will take place the first month it's on the market. And, for every one of us that will want to sell, there will be five or more investors waiting to buy. We came in under the radar, so to speak, by working directly with currency dealers. Most foreign exchange investors go through banks, so they're still waiting...

And yes, many economists feel that the initial surge will affect the price.... they speculate it will rise dramatically during the first two weeks and then settle down to it's equilibrium within a month.

This is ALL SPECULATION. It pays to do your homework...

Keep Digging ! You may strike gold !

turbofastaz
08-24-2004, 11:55 PM
I hope they find more Texas tea black gold