To start your Tuesday off, I’m sharing a couple of thoughts.
First, did you see this video? http://www.cnbc.com/id/15840232?video=1300167523&play=1.
Chairman and President of Iraqi Trade Bank of Iraq, Hussein Al-Uzri
It’s an interview with Hussein Al-Uzri on CNBC on rebuilding Iraq. (Hat tip: It was announced over on NNP and shortly after that in the DinarVets.com forum.) It’s interesting to hear the president/chairman of the Trade Bank of Iraq mention that having the support of US banks for investment is “top of the list” of necessities for “Rebuilding Iraq”. He says that oil accounts for 90% of the revenue currently produced by Iraq, but there is a major effort to diversify. Until the 60’s, Iraq was a major exporter of foods.
A couple quick points:
- If Iraq wants support from US Banks, and the US in general, eventually they are going to need a recognized currency. I won’t do business with someone if they are trying to pay me in uncashable checks, which is what the Iraqi Dinar is at the moment.
- The “major effort” to diversify Iraq’s portfolio is HUGE! It’s great that they are a major player with a huge majority of the world’s oil reserves, but diversity shows stability.
Next thought is on the ISX, or rather – a little “I told you so!” – if you had invested in Al-Mansour Hotels back in May like I suggested you would have gotten in at 33.1. As of today, Al-Mansour Hotel is at 40.0 IQD. Now, here’s the bonus question for you math wizards: I got in at 27.6 IQD in early May, because I saw it as a winner. I shared my opinion shortly after that, even though the stock had already climbed. What amount of return have I seen?
See you soon!
-Adam Montana
P.S. Wednesday night at 9PM CST is designated briefing time in chat at DinarVets.com, I’ll be there tomorrow. See you then!
P.S.S. If you’re new to the ISX (Iraqi Stock Exchange), see my instructions on how to invest in the ISX here.
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Thank You Very Much!!!! I did not know about ISX.
My question is this: Even the smaller ID notes are very large. Twenty five thousand and up, is it? Won’t it be difficult for them to revalue considering that? I’m just trying to wrap my head around this thing…
Yes, I saw this clip this morning before this email was sent. I believe this gives us much hope that the Dinar will RV in a short period of time now.
As Mathew said, the BIG ID notes are my worry too. They have to somehow introduce smaller notes and withraw the bigger denomination before any revaluation takes place. The 25K I am holding will become worthless it seems….
This article is nice. All I’m really concerned with is how soon for the Reval and at what rate? A rate of $1.50 US means a multiple of 1,000 to 1 which sounds very unrealistic but that is the figure (wishfull thinking) being “leaked”. We shall see. I cashed in my gold and bought dinars so this deal better be on the up and up! I appreciate all your work and efforts if this is some clever scam I figure you will lose a hell of a lot more money than me!! BobH Bullett
Thanks for the update. Looking forward to the Chat tomorrow, finally got in the chat at Dinarvets.
I got a bigger return on my Continental airlines stock with money (U.S. dollar) that is actually worth something. I don’t think their currency is stable enough to risk investing!
My question is how soon for the Reval and at what rate?
Montana:
YOU HAVN’T SEEN ANYTHING. AND IF YOU DID, AS YOU ARE WELL AWARE, THE VALUE OF YOUR PROFIT WILL HAVE AN INSIGNIFICANT YIELD UNTIL YOU CAN EXCHANGE YOUR RETURN IN US DOLLARS. 1 million Dinar is currently worth about $840.00 USD’s. What? You compute, if it’s worth your time.
Joseph, I’m not sure what your definition of stable is – but the Iraqi Dinar is definitely stable!
Definitions of stable on the Web:
* resistant to change of position or condition; “a stable ladder”; “a stable peace”; “a stable relationship”; “stable prices”
* firm and dependable; subject to little fluctuation; “the economy is stable”
The Dinar hasn’t moved a tiny bit in a LONG time. I’d say it’s VERY stable!
hi ,i am having 25k iraq dinars notes worth 2.5 millions,what happens when they RV the dinars to bigger notes,is they go for zeros cutting or reducing factor,and pls give me the procedure for investment in ISX.
Adam Any word on what banks will take the ID???
WHY…the Dinar is going to go up eventually is that it will follow the Kuwaiti Pound model, in which after Saddam invaded Kuwait, the Pound dropped to about 3000 per 1 USD. After the US freed Kuwait, in 3 years, the Pound went up to what it is now…in that it takes $3.50 to buy just 1 Kuwaiti pound. This is called the “Kuwaiti Model.” Also look at other stable Middle Eastern currencies, such as Dubai. Its also way up there in value and I wish I had bought Dubai money before it went up. Iraq has the oil, it sits on the second largest reserve of oil in the world, and its a lot cheaper to get it out of the ground than from the US…so Buy Dinars! Five thousand American service personnel…died so you could have the freedom and privilege of getting rich in peace. Enjoy, Judy
HSBC and NY City Bank now have branches and ATM machines who will have banks in Iraq…so if you put your money in say Warka Bank, and then transfer from Warka Bank to say HSBC…after the Dinar appreciates, you will be able to get your money by ATM anywhere in the world. Prepare…. even a small investment of $100 a month or even less (www.DeadwoodGold.com) or any other seller of Dinars will be worth your time in 1 to 3 years. I am going to give 1000 IQD Iraqi notes away for Christmas this year…which will cost me about $1 each. If the IQD goes up in value and reaches the rates of the Kuwait Pound or Dubai currency… well that 1000 IQD investment will result in my friends gaining a $1000 gift if the Dinar exchanges 1 for 1. Why Not? Judy
Just a correction but the Kuwaiti currency is called the Kuwait Dinar. I lived there from 2004 to 2006 and I have never heard it called a pound. They use pounds in Sudan (also lived there) but not Kuwait.
Warka now offers Mastercard and MC debit cards for it’s clients. Warka is great, very good CD and Savings acct. interest rates. I also purchase stock through Warka from the ISX. One of the banks in the ISX is 70% owned by HSBC. Great opportunity to own an Iraqi bank stock owned by HSBC.
I’ve been holding dinar since 2005 and have been invested in ISX for 3 years. A great investment, I love it!!!
Barbara