The Iraqi Dinar Scam

[WhiteFeather]

You Can’t Fix Stupid: The Iraqi Dinar Scam
06 August 2012.

By John Lee.
In a recent article on Forbes magazine website, legal expert and anti-scam campaigner Jay Adkisson challenges the idea that vast wealth will be made from a dramatic appreciation of the Iraqi dinar, saying, “You can’t fix stupid“.
“Scams involving the arbitrage of foreign currencies have been around as long as there have been, well, foreign currencies“, he explains, “but … why the Dinar scam has been largely successful [is that] with the Dinar scam you can actually get the cold hard Dinars if you want them.”
“Yep, suckers around America have their closets and garages full of bales of Dinars, just waiting for that glorious day when they will re-valuate. Which is never.”
“To help sell the scam, the scam artists have set up all sorts of websites and bulletin boards and newsletter and social media and you-name-it to try to create the impression that the Dinars are valuable and are about to re-valuate at any moment.
“I’ve had people tell me that their Dinars are going to re-valuate ‘within the week’ or ‘by the end of the month’, and they’ve been telling me for years.”
Adkisson goes on to explain how, human nature being what it it, people refuse to believe they have been scammed, and likens the idea of a massive increase in the value of the dinar to ‘magic beans’.
“Many remain truly convinced that their initial investment was a good one, and no amount of proof or logic can dissuade them“, he says. On dinar-related bulletin boards, some will even argue openly that logic is over-rated, or irrelevant to the argument.
“It is a scam because the Dinar has no chance of significant appreciation, i.e., appreciation that would make buying Dinars worthwhile … there is absolutely no reason to believe that the Iraqi Dinar will significantly appreciate in the long term, and it utterly insane to believe that the Iraqi Dinar will significantly appreciate in the short term, i.e., within 10 years …
“You might as well buy bags of sand, because they are going to appreciate more quickly than the Iraqi Dinar.”
http://www.iraq-businessnews.com/201...-dinar-scam/2/

[4aprofit]

Why have some had up to, and over 3x the gains, from holding Dinars long-term, while everything for the most part in the U.S. has TANKED?...When this guy can answer this one we may listen to him and heed his warning, but the PROOF is in the pudding!...On another note, the Dinar's final bell has'nt been rung as per the FINALITY of this thing, so why warn some of us, because we have already made better gains from this than most of the stuff that the media and so-called expert financial guru's of the estlabishment played up, as always being good, rock-solid, bullet-proof, etc., etc., etc...while most of it TANKED!..I think that many of us will keep taking the OPPOSITE advice!...LOL...
P.S. IF IT TANKS AS PER THE DINAR, THEN SO BE IT, AS WILL PROBABLY EVERYTHING ELSE...AS AT LEAST WE ARE BETTING ON THE WINNING HORSE...(AS AT LEAST WE KNOW IRAQ HAS OIL, GOLD, ETC..."B A C K I N G")..WHAT HAS THE U.S. GOT?..WHO IS WARNING US ABOUT IT?...WHY IS THIS GUY NOT DOING SO?..WHY WORRY OVER SOMETHING THAT HAS'NT MATERIALIZED YET, BUT HAS HAD A GOOD LONG TERM PATTERN SO FAR?...THIS IS SIMPLY RETARDED..OR AT LEAST UNTIL IT IS OVER!!!

[baz]

Would like to hear John Lee's advice on which bank is the best place to keep our money invested in.

And is this the same John Lee who has just worked out that China's rich list contains many communist party members?

[Captain Kirk]

...and they said you couldn't beam a human across great distances.

Enough said.

[AbuSpinoza]

The Central Bank of Iraq was announced (September 29, 2011) to 2013 will see the deletion of zeros and the currency changeover, which warned officials and economists because of the Division of work preparing to falsify trillion Iraqi dinars to replace them in the light of the forthcoming changes.

Why is the Central Bank worrying about falsifying of trillions, they aren't gonna be worth much anyways. All the cost of time and paper, senseless, wouldn't be profitable. They could make more money selling camel rides.

[Screaming Eagle]

The Central Bank of Iraq was announced (September 29, 2011) to 2013 will see the deletion of zeros and the currency changeover, which warned officials and economists because of the Division of work preparing to falsify trillion Iraqi dinars to replace them in the light of the forthcoming changes.

Why is the Central Bank worrying about falsifying of trillions, they aren't gonna be worth much anyways. All the cost of time and paper, senseless, wouldn't be profitable. They could make more money selling camel rides.

I would doubt that. Their year ending 2011 finanical statement shows a profit of 844,876 million dinar or $724.59 million dollars from interest and fees as auction sales. This income will continue with or without a deletion of zeros.

[lglwzrd]

i own lots of bags of sand....i keep them at warka.

[Rick67]

I would appreciate his article more if it wasn't just a bunch of arrogant, "Because I said so". I listen to facts, he gave none.

[dlakerII]

Did someone say camel ride!!! I'm in

[Fishindinar]

Well, I like dinar it's pretty............................................ .................................................. ..........................by Forrest Gump.

[WhiteFeather]

Well, I like dinar it's pretty............................................ .................................................. ..........................by Forrest Gump.

And Soon,

New Banknotes Expected Next Year Despite Warnings from Economists

08/08/2012 By BARZAN MUHAMMAD



ERBIL, Kurdistan Region -- New Iraqi banknotes are expected to hit the market next year, but economists are warning that now is not the time to change currency due to the weakness of local production and the country’s political situation.

Najiba Najib, a member of the financial committee in Iraqi Parliament, said the new currency would be in circulation next year, with three zeros omitted from the denominations. The new currency will be used alongside older banknotes for three years before the older notes are completely withdrawn.

Mazhar Salih, deputy governor of the Iraqi central bank, said, "We are determined to change the Iraqi currency because the biggest banknote in Iraq is 25,000 dinars which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have banknotes larger than 25,000."

Faysal Ali, vice president of the Kurdistan Economic Forum, does not believe the situation in Iraq is healthy enough for a change of currency. "The political situation in Iraq is very unstable and it is economically weak.”

“Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion banknotes and coins. Exchanging new banknotes with older ones being used by citizens will greatly harm the economy," added Ali.

Generally, people need time to adapt to a new currency. Some people in Iraq are still counting money in terms of the older currency -- Swiss dinars – that was changed a few years ago.

Ali described in more detail some of the problems that could occur while people adjust to new banknotes. "It is a perfect time for merchants to play with the prices of goods as they wish and make unlawful gains," he said.

The value and strength of any currency depends on the power of domestic productivity. According to Ayub Anwar Simaqayi, an economics lecturer at Salahaddin University in Erbil,

Iraq is not a productive country.

“It depends entirely on oil which it exports for U.S. dollars. So, if they change the currency of Iraq and the price of oil goes up, it will have no impact on the value of Iraqi currency. But, if the oil prices go down, the currency of Iraq will lose value as well," Simaqayi said.

During the British mandate of Iraq after the First World War, the official currency of Iraq was the Indian rupee. When the country became independent in 1932, it made its own currency, called dinars [locally known as Swiss dinars for their print in Switzerland]. After the invasion of Kuwait by Saddam in 1991 and the subsequent economic sanction by the United Nations Security Council the Iraqi government started printing its own money known in Kurdistan as "fake" or "prints" in the Kurdistan Region.

As the Baath regime collapsed and coalition forces occupied Iraq in 2003, Iraq modified the dinar—by removing Saddam Hussein’s pictures—and printed new banknotes known as the "Bremer" by locals, named after coalition governor of Iraq Paul Bremer. This is the currency is still in circulation in Iraq.

The financial committee has presented seven different banknotes to the Iraqi central bank which range from 5 dinars to 200 dinars and include coins from 50 fils to 2 dinars coins.

Najeeb said that three Kurdish icons are featured on the new currency: the waterfall of Geli Eli Beg, displaced Fayli Kurds and a woman farmer. The notes will contain Kurdish, Arabic and English script

[WhiteFeather]

Iraq: Towards the Abolition of 3 Zeros From Banknotes
August 1, 2011 Filled under Iraq Daily News

BAGHDAD – Naseer Goldfinch

Iraqi Central Bank (CBI) announced the completion of the preparation of a plan to replace the current banknotes after the abolition of 3 zeros of them, including 30 trillion dinars (26 billion dollars) is the value of expected cash bloc, stressing that the timing will be determined by the government and parliament, Iraqi.

The expert explained the first in the Central Bank of Iraq in favor of the appearance of Mohammed in an interview to life The replacement of the currency, as a response to fears of a major corruption of the process. He said: Our problem lies in the current issue of the timing of replacement of the currency must be chosen as a date suitable to implement the project without obstacles.

Before, and the Central Bank announced its intention to raise three zeroes from the Iraqi dinar, after suffering from inflation and the decline during the nineties the past by economic sanctions, its value has tumbled to become the world today, about 1120 dinars per dollar.

The central bank adopted after 2003 a new mechanism to maintain the exchange rate of the dinar, is to create an auction foreign exchange to sell quantities of the dollar, resulting from the sale of oil in world markets, and transferred to the Development Fund for Iraq, which transforms in turn to the bank to sell in local currency, which helped to raise value of the dinar over the past years more than 2000 points.

And as for the size of the money supply or the size of cash flow by more than 30 trillion Iraqi dinars, equivalent to U.S. $26 billion?

He said: Cash transactions regime in Iraq, after 2003, it became Mdolra, any market deal dinar and the dollar both, and this means a mass of cash in circulation in the market but in foreign currency.

Saleh continued: we have in the accounts and that the Iraqi currency or monetary bloc total traded home and that would be replaced after the cancellation of zeros will be in the range of 30 trillion dinars, but its value against foreign currencies will remain constant. This means that the Iraqi dinar exchange rate now would amount to 1,200 dinars per dollar, and one.

In regard to the most important variables that will come after the lifting of zeros, between the appearance of the Central Bank of solid plan to rearrange the currency to reduce the number of banknotes in circulation, and this is positive. Here, the payments system would be easier to Iraq.

Economists warned that the process of replacing the Iraqi currency after the lifting of zeros Schoppea operations by a major corruption due to structural inaccuracies of Iraqi banks. They emphasized that the processes of replacement of the former currency operations were accompanied by a major corruption cost the Iraqi economy a lot. But the appearance of favor answer by saying that the process of replacing the currency in 2004, took place in exceptional circumstances, and the country under occupation and is administered by the Governor of an American civilian, but was a successful operation.

And sells the central bank through its daily auction, between 150 million and $ 190 million per day to clients of private banks and financial companies, a large proportion of them go Khawwalat external payment transactions of foreign trade.

And confirms the expert’s central bank (economist) that the application of the new project to raise three zeroes from the Iraqi dinar and the currency exchange, will be according to mechanisms scalable in the form is not felt by the citizens, are put quantities in the market and the withdrawal of which is maintained by the government banks of the block and replace it, and it remains only in the possession of the citizens of the trading day , and can make any transactions in both currencies for existing and new, what’s goods on the current price of 1000 dinars for example, a customer can give the seller the present paper the category of 1,000 dinars, as well as currency can give him a new category of one dinar.

He noted that the Central sought the expertise of countries have taken the same action, such as Turkey and Romania, as well as experts from the IMF.
http://iraqdailytimes.com/iraq-towar...rom-banknotes/