Iraqi Dinars a good investment?

[italkcash]

So alot of fuss about Iraqi dinars these days. If you have any experience trading the new currency or doing some good new investments with the dinar please inform us about it and share your oppinions.

[titaniumhijau]

I'm not sure about that investment and if its good or not. I'm not sure. But i know many people already start try this investment.

I have no experience with this trading because still doubt about this one..

[cashmoney]

Could anyone give example how to get start with this investment?
such as, either they are using paypal or e-gold to get payment?
Hope anyone can explain this.
Thank you.

[cashmoney]

Here I get some info about Iraqi Dinars.

The Implications of the Improvement of the Iraqi Dinar Exchange Rate
Ali Mahmoud al-Fakiki Al-Hayat - 26/11/06/

The Iraqi dinar is witnessing a gradual improvement in its exchange rate these days. The price of the dinar has risen from $ 0.000676 in early November to $ 0.00069 later during the same month. This means that the number of dinars against one dollar dropped from 1480 dinars to 1440 during that period. It is noteworthy that the exchange rate in the 1970s was $3.20 for one dinar, which exceeds the current price by four thousand and six hundred times.
It seems that the Iraqi government is planning now to fix the exchange rate at 1000 dinars/dollars, which is almost one third. The government plans to make this gradual, in order to avoid a sudden rise. This was the lesson learned in the aftermath of the sudden catastrophic decline that had occurred among traders and businessmen in 1995 and the accompanying financial and commercial turmoil, bankruptcies and trade and banking collapses.
If the current rise of the exchange rate from 1480 dinars to 1000 dinars to one dollar is applied, some people in Iraq will gain while others will lose, as follows:
Losers:
A- Savers in dollar. Iraqi savers lost confidence in the dinar. This urged many of them to keep most of their savings in dollars. These include traders and industrialists. When they will need to convert their savings to dinars, the loss will be huge.
B- Contractors in projects priced in dollars: Those are paid in dollar, but the majority of their expenses and local purchases are usually in dinar. This includes the labor wages and their purchases of materials of local origin. This is the case with building and construction contractors who purchase local supplies and construction materials (bricks, soil, sand, gravel). When they submitted their quotations they had evaluated their contacting service at the prevailing exchange rate before raising the value of the dinar and now they have to pay at the new rate and hence lose. After they handover the projects, they will receive the rest of their money in dollars.
C- Lenders in dollar: They will regain their loans valued at less than the value before the rate of the dinar was raised.
D- Borrowers in dinar: They will pay their debts upon maturity in dinars of a dollar purchasing power more than that at the time of lending. They will have to pay in a dinar that exceeds the lending rate by almost one-third. When the major collapse happened in 1995, thousands of traders announced their bankruptcy while indebted to others, and this was disastrous.
E- Employees who earn in dollar.
F- Estate lessors with rental allowances in dollar while their expenses are in dinars.
G- Estate tenants who pay in dinar while their income is in dollar.
Gainers:
A- Savers in dinar, for being able to buy more dollars.
B- Employees and workers who are paid in dinar, since they will receive the same pay but with a more purchasing power and a better exchange rate.
C- Producers: since they will sell their products for the more powerful dinar.
D- Borrowers in dollar and whose savings are in dinar: since they will pay their debts and their interests in the cheaper dollar.
E- Retirees: they will have more purchases with the same salary.
F- Those covered by the program of the social safety network (the retirees themselves).
G- Estate lessors in dinar.
H- Estate tenants in dollar while their incomes are in dinar.
This means that raising the dinar exchange rate will benefit some and harm others.
It is noteworthy that the terrible continuous escalation in prices during the 1980s and 1990s of the last century in Iraq was not due to an increase in the value of money itself, but due to the fact that this increase was not met by a real balance or a strong national economy and national income or a supporting domestic product. When the State issued currency, it behaved like a merchant who issues instruments with no balance to meet their nominal value. Moreover, there were the constraints of trade and external transfer. Otherwise, the amount of money in circulation in a country like Japan is more than the amount of Iraqi currency in circulation (as an absolute figure).
During the post-war period, the balance was met, but the rise in prices was due to high costs and shortage of supply. For example, the average of the prices of Iraqi vegetables and fruit has increased this year by 100% as compared to the prices of 2005, but due to the shortfall in production. The agricultural expert Jaber Abu al-Eis (Ministry of Agriculture) says that the execution rate in the agricultural plan for 2006 amounted to 17%. The prices of local poultry products this year are twice as much as 2005. The reason was the banning of the poultry industry, among the procedures of combating avian flu and the prevention of the importation of these products from many countries. Moreover, it was due to the rise in the costs of energy, fuel and transportation costs to the double or even more. Also there are the imposed royalties paid by the importers, producers and transporters to gangs and bandits, including kidnapping payments and ransoms. There is also bribery, corruption and alliances between businessmen and government officials, in addition to the high wages, the rise in prices and interests of loans caused by the Central Bank. All these factors led to an increase in the cost of production and inflation rates. Such factors have to do with costs and supplies while they have nothing to do with demand. Thus, the saying, “Much money looking for a few commodities” does not apply here.
The current inflation is due to high cost and shortage of supply. Nowadays, the government ensured assets that cover the nominal value of money and a domestic product that supports it. But there remain two options. The first option is to increase the quantity (number of units) by a third, raise salaries and wages and expand and improve the miserable network of social safety to include additional numbers of extremely poor people living at half a dollar per day amounting to four million. The second option is that the government raises the dinar exchange rate by one third as it is planning now.
In the first case, the needy employees and workers who are not covered by social welfare will benefit, and there will be no loss or damage to other people. In the second case, employees, workers, retirees and others will benefit, but, at the same time, others will lose as mentioned earlier.
According to reliable sources, the second option comes in implementation of the directives of the International Monetary Fund. But, as we stated in a previous article, the former American Secretary of State, Henry Kissinger, described the IMF as “a doctor who has only one pill for every conceivable illness”.
* Mr. Ali Mahmoud al-Fakiki an Iraqi expert in economics

[cashmoney]

More about Iraqi Dinars:

The Central Bank Of Iraq (CBI) has had some success at appreciating the Iraqi dinar as suggested by the International Monetary Fund IMF. The CBI has appreciated the dinar hoping to curb inflation.

The U.S. department of state says that the year to date inflation through August is 11.2%. The year on year rate of inflation dropped 20%.

The Iraqi dinar was worth 1470 dinar per U.S. dollar in November of 2006 and has appreciated against the dollar to 1230 dinar per dollar according to the CBI.

[cashmoney]

More about it:

The old Iraqi Dinar issued prior to October 2003 showed the image of Iraqi President Saddam Hussein. Following his removal in the 2003 invasion of Iraq , the Iraqi Governing Council made public display of images of Hussein illegal. In an effort to feed the Iraqi economy, the Office for Reconstruction and Humanitarian Assistance began printing more 250-dinar notes. Saddam Hussein appeared on all post-war Iraqi Dinar banknotes, aside from the reprinted “Horse herd” 25 Dinar note.
In October 2003 the United States occupation administration authorized a new banknote issue comprised of denominations of 50, 250, 1000, 5000, 10000, and 25000 Dinar. A 500 Dinar note was issued in October 2004, and notes of 25, and 100 Dinar are anticipated. These new notes replaced the old Dinar of Saddam’s era and have quickly been accepted. The new Dinar is more secure unlike the easy to counterfeit old Saddam Dinar. It has many visible and invisible security features that are virtually impossible to fake. This new and secured Dinar will undoubtedly provide a stable foundation for Iraq’s future economic growth.

[animecrunchy]

i think they are many site that sell iraqi dinar but you need find the genuine seller. Currently lot of scammer came to sell iraqi dinar.

[cashmoney]

There’s an event that’s happened before only THREE TIMES in modern history, and it’s happening again RIGHT NOW! It’s creating an incredible window of opportunity that major financial institutions and influential insiders are using to make many MILLIONS–even BILLIONS–of dollars, and YOU CAN, TOO!

It may not last much longer, so I advise you to not waste any time taking advantage of it–it could literally end at any moment!

At the end of World War II the German Deutsch Mark and the Soviet Russian Ruble went down in value to almost nothing. The same was true for the Dinar in Kuwait after “Desert Storm”.
If you had purchased those currencies RIGHT THEN at rock bottom prices and then sold them later when the country regained its’ economic stability, you could have become an INSTANT MILLIONAIRE for just a few bucks!

Well, that same circumstance is HAPPENING AGAIN RIGHT NOW IN IRAQ! Because of the conflict in Iraq you can buy Dinar cheaply TODAY! You can buy a MILLION Iraqi Dinar for LESS THAN A THOUSAND DOLLARS!

[cashmoney]

Thu, Nov 29 2007, 15:19 GMT
Dow Jones Newswires: Global Financial news and commentary

UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min

(adds more interview details)

By Hassan Hafidh

Of DOW JONES NEWSWIRES

AMMAN (Dow Jones)-The Central Bank of Iraq is contemplating rebasing the Iraqi dinar and issuing new banknotes early next year, the country’s Finance Minister said Thursday.

“The Central Bank will take a decision in three months time from now, taking off three zeros from the current Iraqi dinar value,” Bayan Jabor said in an exclusive interview with Dow Jones Newswires in Amman.

On Thursday, the dinar traded 1,230 dinars against the dollar, according to a trader in Baghdad. If the rebase decision is taken, it means that a dollar will equal only 1.23 dinars at current prices, the minister said.

Currency rebasings usually are monetarily neutral and are introduced to make commercial calculations easier. Turkey knocked six zeroes off its lira currency on Jan 1 2005, for example.

Before the U.S.-led invasion of 2003, the dinar was trading at 2,500 against the dollar. During early 1980s an Iraqi dinar was traded by Iraqi state-run banks at 3 dollars.

The Central Bank of Iraq has been working to improve the value of the dinar against the dollar through holding a daily auction to sell dollars to private and government banks. The bank sells between $35 and $50 million in each auction it holds, bank officials said.

The Iraqi minister said, however, printing new bank notes and fully replacing old notes would take two years.

In July 2004, the now dissolved U.S. civilian authority in Iraq decided to print the current Iraqi bank notes replacing those used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.

According to Central Bank officials some 10,000 tons of old dinars were then collected and burned.

The current banknotes were printed by Britain’s De La Rue Plc (DLAR.L), the world’s biggest commercial printer of bank notes. Jabor didn’t say which company would print the new banknotes.

Jabor said that the government was able to bring down inflation from a record figure of 60% last year to a current 16%. He said Iraq’s economy is growing at a rate of 6% this year and that the government wants to increase that figure with more crude oil exports, tourism and agriculture in 2008. Iraq sits on the third largest oil reserves in the world and depends on oil sales for almost all of its foreign currency earnings. Jabor announced earlier this month that the country’s budget for 2008 would be $48.4 billion up from $42 billion in 2007. Some 88% percent of that budget would be financed from oil revenues which are expected to reach $36 billion, according to Iraqi officials.

He said that his ministry has allocated $15.5 billion for investment in various industrial, oil, agricultural, housing and service projects in 2008. He said some $5 billion that the government was not able to spend in 2007 would be moved to 2008 investment plan.

While in Amman, Jabor met with Jordanian businessmen to encourage them to start investment in Iraq’s ambitious reconstruction plan for 2008. He did the same thing with Syrian and Kuwaiti businessmen last week. - By Hassan Hafidh; Dow Jones Newswires; + 962 777 612 111; hassan.hafidh@dowjones.com

(END) Dow Jones Newswires

November 29, 2007 10:19 ET (15:19 GMT)

[kongsiwang]

Iraq political situation are not very stable now. I personaly not too confident on Iraq dinnar.