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Categorized | Banking & Finance
Iraqi Dinar Revaluation Enthusiasts are Unaware of Bernie Madoff’s Fame
Posted on 29 March 2011.
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By Tom Cleveland, market analyst for Forex Traders, exclusively for Iraq Business News. Forex Traders is an online resource for the foreign exchange market.
“Buy on the rumor, sell on the news” is a time-honored investment phrase that is oftentimes more confusing than the wisdom it attempts to impart. The meaning relates primarily to company securities that appreciate in expectation of a big news announcement. Early speculation drives ups the price, such that when the real announcement is made, most investors sell on the news to take their profits, often driving the price down, rather than up. “Pump and Dump” stock frauds also follow a similar scenario, but in this case, criminals benefit and investors lose.
A similar situation has been building for years, some say as many as eight years, surrounding the potential “revaluation” of the Iraqi Dinar. As the rumor would have it, the Iraqi economy has stabilized, and the potential for enormous foreign currency reserves from increased oil exports will drive the value of the Dinar to unconscious levels versus the U.S Dollar. The government authorities will be forced to revalue the currency from 1,175 to 3 per Dollar, resulting in an outrageous windfall for anyone owning stockpiles of the currency. Does something here sound a little too good to be true?
In actuality, the Iraqi Dinar, or “IQD”, is a “controlled” currency. The central bank of Iraq determines the exchange rate and must support that rate by maintaining adequate foreign currency reserves to handle capital flows across its borders. The IMF permits countries with a transitional economy to implement currency controls in order to stabilize their economy during its redevelopment phase. Presently, international banks will not accept the Dinar, and it is not traded on any forex exchange. Actual purchases can be made through currency dealers that have been authorized to buy and sell banknotes that are already in circulation.
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606 Responses to “Iraqi Dinar Revaluation Enthusiasts are Unaware of Bernie Madoff’s Fame”
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Sounds about right. Mailmen, pizza cooks, gas station attendants, MLM devotees, penny stock pumpers. All are professions that I look towards first when looking for sound investment advice.
Tom …Thank u for ur valuable analysis on this issue for pitty misled public like me who put a lot of our savings in this IQD
Well…! what u think will happen once the IQD are in market and normalized … what we can get out of it any gain / loss or what…?
Jano. What do you mean “once the IQD are in market and normalized”?
The Iraq dinar has been out and “in the market” since October of 2003. So in nine months it will be 10 years “in the market”. The Iraq Central Bank adjusted the rate of the dinar probably close to a hundred times in the first few years and recently adjusted it from 1170 to 1166. Their inflation rate has been single digits for years now. That would seem to be the perfect example of “normalized”.
“once the IQD are in market and normalized” is a nonsensical statement made up by dinar pumpers who don’t even have the most basic knowledge of currencies and how they work. They do it to make you and others believe some grand event is about to happen.
Invest in yourselves. Buy some coffee and an alarm clock and wake up
Hey stew i wonder when the pumpers will start hustling the syrian lira.
Hey six; I just saw your comments, and I laughed my ass off. The wake up comment was AWESOME!!! Can’t stop laughing, it was so TRUE!!! P.T. Barnum, said there’s a sucker born every minute, and man he wasn’t lying!!! This scam has been pretty profitable for a lot of these slicksters who have ripped people off of their cash. They got so many of these rip off artists down South, it’s unbelievable. The civil war confederate note is worth more than this Iraqi Dinar, and they were using that for toilet paper last time I heard. People, please be smart about your hard earned money. If this was going to happen, do you think they would be sharing this wealth with every swinging dick that came along?????