Election news, Dinar news, Reval rates oh my! Just a quick update on some election stuff.
Al-Iraqiya List was rumored earlier this month as ready to boycott the elections if the Appeals Commission decided to ban them from it. The March 7 elections are obviously of major importance to us Iraqi Dinar investors, because it will be another milestone in Iraq’s march towards independence, both politically and financially.
Interestingly, a strange headline was listed on Iraqi Al-Rashid TV stating that there will be a breakthrough in the exclusion in the coming days. RoadsToIraq.com makes an interesting point:
Minutes after Al-Iraqiya officially announced the resume of the election campaign, Allawi pop up with an image sitting beside King Abdullah of Saudi Arabia in a quick short visit (and he headed to Cairo later).
The visit itself is not very significant, but the message behind it is a direct challenge to Maliki and other Shiite parties. Also for the Iraqi public to see this image is kind of — You choose, do you want to be close to Saudi Arabia or Iran!
With the Iraqi and Iran relationship so fresh in all of our minds, I can’t help but think there’s some truth to that. This has the potential to become a major issue in the elections, but we’ll be hearing more about that in the coming weeks.
I’d like to take a minute to answer the one question we all have: WHEN IS THIS IRAQI DINAR CURRENCY GOING TO GO UP?!
I like to joke in chat that the dinar already revalued, and you missed it… but that’s just for fun. The real answer is we’re looking at a change in the Iraqi currency value any day now. Major obstacles are being overcome every day in Iraq, and the majority of the redenomination articles are true. Don’t take that the wrong way – I’m not saying the majority of the translations are true, I’m simply stating the fact that lower denominations ARE coming, and soon. This investment isn’t the same as it was 5 years ago! 5 years ago I figured I’d have to hold my dinar investment for 5 or more years… and I was right, because here it is at a little over 5 years. My outlook is a lot different now, though! My friends, we are CLOSE!
I do have a bit of advice. The internet is full of people who try to be gurus on any given subject – weight loss, investing, and of course – Iraqi Dinar. Beware of anyone who says they know when the Dinar will RV, watch out for anyone who claims to have the “best intel”, and most importantly… have patience! Rome wasn’t built in a day, and most fortunes aren’t either. Finally, when the rate is announced, PLEASE don’t go rushing to Ali or any other source to cash in your dinar. The smart move is to be wise and patient, hold out for a couple of days, and let cooler heads prevail. The banks WILL be changing policy at the drop of a hat when the dinar currency changes status, and if you can simply hold out fora day or two, you’ll get a much better return on your investment – I guarantee it.
All my best,
Adam Montana
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Thanks Adam.
Adam you are with out a doubt the light at the end of a very long tunnel. I appreciate your time and wisdom and most of all hope. I would stress besides waiting a couple of days to cash in your Dinar’s write down a plan for your new found cash. Save 50% of you new gains for Taxes JUST for the sake of safety. Then write down what you plan to do with the rest. That way you do not wonder where it all went. I plan to pay off all our debt including our house if that is possible, but either way we will have a nice emergency fund and less debt and that way we are no longer living pay check to pay check. GO DINAR! Also I want to help my sister who is going through a nasty divorce.
Just a quick question how will holding the dinar after it RV’s for a day or two get me a better return then if I just went and cashed it in right when it RV. Thanks for everything Adam!!
I look forward to all your posts, you make it so understandable, THANK YOU
Yes waiting afew days is a good idea.I plan on shopping around and then calling Ali.I have never bought from him but have kept track of his site for years and he has never mislead or pumped and he’s a dealer.
how much longer do you think we have before the dinar go up in cost.
Will.H holding onto your Dinars a couple of days will give you the time to study ALL of the options, and will absolutely get you a better return.
If you run to the first bank you see to cash in, I guarantee you will lose some money – and you’ll deserve it for not being more patient.
Adam….Once again, you’ve provided a refreshing break from the angst many of us feel from the painful “waiting”…Thank you for that. I also like the comments provided by “Emily” above, in that we all should be patient, allocate ~50% of your gains for taxes, just to be safe, and PLAN your next move with precision. Don’t waste this opportunity to change your economic life by random spending…You all are here because you’re smart investors….Be smart with your new found “stimulus” and make you and your family comfortable, insulate them for the stress felt these days by so many over unemployment, bankruptcies, mortgages, taxes, student loans, food, medical, etc….Make this investment mean something…make it last.
Hey Adam,
Thanks for the info. Just one quick question for you. The thing I don’t understand, is how the rv could be so drastic. Wouldn’t it be unrealistic from Iraq’s point of view to rv so high? Because, I would think that there would be way too much wealth in Iraq. Even, buying common staples becomes pretty crazy. I hope we see a good rv, but the logic in this does not make alot of sense to me.
Ok yea that makes sence to hold on to it now that u put it that way. So where would I go too look for the best bank to do the exchange? Again thanks Adam for everything.
You should go around town (without you dinar) and go to afew banks and ask questions.This way you will have a good idea of who has the best rate or spread.When cashing in a large amount it will be a big difference from bank to bank.All Adam is saying is do your homework.
That is GREAT news, Adam! Thanks. Now that the opposition party is on board with using politics instead of violence or the threat of violence, I am much more assured that stability is possible. Keep playing the game Iraq! That’s the only way to get back into the international scene.
Adam, really like the cleaned up look and feel of the blog!
Finally we know that the RV occurs PRIOR to the removal of the large denominated notes, meaning that foreigners will receive the full benefit of the RV.
If there is a RV will a 25,000 dinar note be worth 25,0000 times the rv rate or will the last 3 zeros dropmbefore the rv?
I hope they aren’t taking on two much. Really it should be a two-step process. Float, then revalue.
How you allot your denominations is going to depend on the value of your principle denomination, the dinar. If a dinar is the equivalent of a dime or a ten dollar bill makes a difference. By knocking off three zeros at the same time, you don’t make the job any easier.
The trouble is no one, even the Central Bank doesn’t know, where the dinar will float ultimately. Once it was worth three dollars and now it is worth a tenth of a cent.
My guess is they’re afraid to let it float without doing anything correspending to reduce the possibility that you’ll need a wheelbarrow of bills to buy a loaf of bread. They need to protect against the downside. Foreigners aren’t going to want to handle dinar strictly from a nuisance standpoint.
There’s talk they’re backing the new currency with gold. Anyone know how man dinar were swapped out when the Saddam bills were exchanged out? Divide the swap out number of dinars by the ounces of gold times those onces of gold in USD and you have a rate very close to the float rate.
Of course that assumes the currency is totally backed by gold, not substantially backed by gold.
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What makes this difficult is Iraq is trying to do two things at once: (1) It is trying to float its currency that has been pegged up until this point, and (2) it is attempting to revalue its currency assuming the fact that it now takes a wheelbarrow full of currency to pay for a loaf of bread will continue.
The Dinar is the primary unit of currency the way the dollar is our primary unit of currency as say, oppoed to the dollar. A primary unit is efficient if it takes less than ten of that unit to buy a sandwich and a drink.
By attempting to do both at the same time, they are both making problems for themselves…but with the hope of an attractdive currency.
The Iraqis have already swapped out the Saddam currency for the new currency, so they have some idea of how many dinar are out there. They are now attempting to back the currency with gold. Theoretically you just divide the entire number of dinars into the ounces of gold times the USD value of a gold ounces.
This assumes the currency is entirely backed, of course.
Is there any info on whether or not the rate will be fixed or float?
If it is floating and we take your advice of waiting a few days, won’t the rate fall with the massive supply of Dinar entering the market from people who aren’t so patient?
Thanks!
Hey Adam,
Thanks for the info. IF I understand this correctly. When we trade in our money with the bank. Who is is left holding the dinar? If I understand this correctly, Iraqi citizens are left with the same value. But here in the United States. IF you have a million dinar and it goes to 2. Then you have two million U.S. Dollars. And then the bank or the federal reserve is short. How does that work? Thanks in advance.
Trent, please send me an email – dinarnews@gmail.com.
Ask those questions one at a time, and simplify them. I’ll answer them on the blog, they are good questions.
today is already MARCH 01, 2010 and there is still 6 more days to the election. Then what happen to RV?Do we have to wait before the election for RV to happen or after the election date?Anyone here got news about RV lately please let me know if RV really already happen suddenly.
Hi Adam. I just find out the site currency converter that says US$ 1= 1 IQD at http://www.english.globalarabnetwork…-progress.html Does this mean that IQD already RV at US$ 1= 1 IQD?. Wow I believe everyone here will be very happy to hear good news. I can’t be patient enought to wait to cash in right now. Adam and Anyone here please give me your comment…
jenny I posted that in the VIP and in the chat last night on DV – it’s a glitch. Enter a larger amount or swap the currencies and it works right. Sorry
Hey Adam, I have a couple quick questions… With the upcoming elections and the possibility of the outcome influencing violence among Iraqis, there is talk of the american troops being delayed from obamas proposed return date. How, if any would this affect the possible RV? Do you think its more likely to happen before or after the troops vacate the country?… Thanks
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