Hope I'm wrong BUT!!!!
harvey some of my thoughts
Pre-war the dinar traded $3.22 for 1 dinar. The value of the dinar deteriorated due to the war causing chaos, corruption, goods & services to be interruped and raids on the countries currency reserves by its dictator SO-DAMN-INSANE.
Before the war 25 dinar banknote was equal to $80± USD. With inflation, lack of security and other factors the dinar lost its value making it almost worthless. The United States of America along with a few other countries pitched in to help shore up the CBI (later with cash, gold stolen by SO-DAMN-INSANE and frozen assets).
“Jerry” Bremer who was in charge of Iraq after 2003 intervention as the Coalition Provisional Authority exchanged the old dinar banknotes and replaced them with what is referred to as Bremer banknotes. Three zeros where added to the banknotes. Between Oct. 2003 and Jan. 2004 the exchange took place. An old 25 dinar banknote are now a 25,000 dinar banknote. Today after adding the 3 zeros to the 25 dinar banknote, a 25,000 dinar banknote is equal to $21± USD (using 1170 IQD/1 USD).
In June of 2004 Bremer formally transferred limited souverignty to Iraq’s Interim Government. The CBI operating as an independent entity headed by Dr. Sinan Al-Shabibi (the Banking Law was issued Sept. 2003). Dr. Shabibi was charged with, Maintaining price stability, Manage foreign reserves, Issuing and managing the Iraqi currency among other things. Hence daily auctions.
As inflation and security conditions got a little better the CBI started toying with the Idea of increasing the value of the IQD. It was stated that when the rate of exchange reaches 1,000 IQD/1 USD, the IQD would be made par to the USD (at that time the rate was 1,450 IQD /1 USD) and eventually in due time would be going back to pre-war value.
In June 2006 talk was to remove 3 zeros from 1,000 IQD so as to equal 1 USD. Wow great, so if the exchange rate is 1 IQD/ 1 USD that’s $1,000,000 USD for my 1,000,000 IQD. (wishful thinking).
As time goes on more information and details start to be released making things a little more clear but still foggy. Reasons for removing the 3 zeros are twofold:
1) inflation has caused prices to skyrocket. Something that cost $4 USD pre-war was 1 and ¼ IQD where as today not counting inflation would be 4,680 IQD. Something costing $250 USD would be 292,500 IQD again not counting inflation. Meaning you need to carry suitcase with you to keep your money in to go shopping. This has been one of the reasons stated by the CBI. Reduce piles of IQD being carried around. This is why the coins where pulled out of circulation, can you imagine carrying around 100,000 IQD in coins (about $85.50± USD) in you pockets. That’s 1,000 one hundred dinar coins or 4,000 twentyfive dinar coins. The fifty dinar coins where stolen or lost somehow. No coins are in circulation.
2) As stated earlier (2007) by the CBI to increase the value of the IQD to be par with the USD, by moving the decimal point 3 places (old timers should remember this). 1 USD divided by 1,000 IQD equals 0.001. Moving the decimal point 3 places 0.001 IQD is now 001.0 IQD exchange rate would be 1 IQD/1 USD. Then move decimal point 3 places on the currency, 1,000,000.00 IQD, the 3 decimals from the currency would be 1,000.00 IQD*.
Also a second way to reach the same results are, their example not mine is 1,000,000 IQD after lifting the 3 zeros currency would be 1,000 IQD. The zeros are removed from the currency and not the value, and then the exchange rate made par 1 IQD/1 USD**. Same results either way.
* $1 USD divided by 1,000 IQD = $0.001 USD; 1 IQD X $001.0 USD = $1 USD, 1,000,000 IQD – 000 = 1,000 IQD X $001.0 USD = $1,000 USD
** 1,000,000 IQD – 000 = 1,000 IQD X $1 USD (par) = $1,000 USD
$1.00 USD/ 1 IQD and later gradually growing back to $3.22 USD / 1 IQD as stated by the CBI (again in 2007) and maybe even higher as oil production improves…….
Depends on when and who you bought your dinar and how long you continue to hold your dinar as to what your profit will be in the end…… using the above examples 1,000 IQD (or 1 million minus 3 zeros) X $3.22 USD could return you $3,220 or more per million purchased.
I purchased my first dinar in 2004 (Nov. will be 7 years), and I will admit to the millionaire pie in the sky hook, line and sinker. But at this point with all the research from newspapers (middle east and european), having a muslim friend translate, videos, news bulletins from the CBI in pdf form (ones you can’t copy and paste to a language translator) and other documents. This is the reason for my thoughts as to what is going to happen in the future, and that future is still a year or two away…….
Sometimes, when you cry...no one sees your tears.
Sometimes, when you worry...no one sees your pain.
Sometimes, when you're happy...no one sees you smile.
But fart just ONE TIME.…