By Tom Cleveland, market analyst for Forex Traders, exclusively for Iraq Business News. Forextraders.com 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.
wow I found some good views on this topic. my wife and i spent what little savings we had to invest in this, what we were sent is real Iraq dinar,the 25,000 bills real cute money. my wife is the sole pervider at this time in our lives while i care for our 2 boys.i dont want to go into the many past poor investments i have made i my life but one could say i am risky. this is our only hope we have in saving our home and getting some sort of funding for the boys future. our retirement is allready gone as well as my wifes along with my once thriving construction co. my pride sits on the self in hopes that before 45th birthday my wife and young boys will look at me with pride and say that i was a good provider. GO RV!!!! please!!
This is NOT a ponzi scheme! It is real currency with a 'sanctioned value' or another term = artificial program rate! The new rate will emerge when all requirements are met, from the CBI.
This is REAL, and the future value will be over $3 per dinar. This investment is not for everyone. There are many liars out there, like tony and dan. Okie is another liar. Good entertainment they provide, while we wait.
This does sound too good to be true because something of this magnitude has never before occured. This is a global event.
I am saving this link and will return after the IQD has revalued.
Sorry Jim.....you got ripped off. You will never make a profit. You just wasted at least 27% of your investment, if your lucky. The gurus are all paid scammers. Their top secret info and sources are total lies. Dont be a sucker and invest more and please don't tell your friends.....you will look like a fool when and if they invest and loose their money.
lz you dont know whats gonna happen jim dont listen to this [offensive term removed by Editor. Please keep the discussion civilised] now i agree that there are alot of pumpers out there but the investment itself while a bit of a risk is a good one what other so called "scam" allows you the chance to exchange it back if you want to i can exchange mine back right now but im not cause even if they were to lop we actually get our money back so jim hang in there dont liusten to these guys that say its a waste of money and if you want a good site with nothing but solid information jim [link removed by Editor. Advertising is not allowed.]
Yes Rich , I do feel like a moron for investing in dinars and telling friends and family to invest...5 years ago! I still get teased at family get togethers about the dinars. I've lost respect from friends whom I
got involved in this scam. I think you {Rich} should tell all your friends and family to invest so you will feel like a twit when another 5 years goes by and Okie Oil Man is still excited and swearing its a done deal and the RV is going down on Tuesday.
well thats your first mistake is listening to okie and others like him they make the investment look like a scam with them calling the rv every other day i understand lz but this is gonna happen i hope you still have your dinar cause after this does happen you can tell your "friends" to go jump in a lake lol
I also have a small investment in this. Bought it 3 yrs ago. It has become a joke in our family also, as 4 of us invested. However I dont see any of us trading it back in. We didnt deplete savings or go broke investing so, why not hang on to the Dinar. Just in case! I sure wouldnt count on saving my house with it tho. Good thing you can sell it back for what you paid and hopefully figure out a more sure way. Good Luck!!
sharon this investment itself is not a joke its actually very close to happenning and im not a guru i understand how most people feel about them as do i but if you were to come into [advertising removed by Editor] im usually there in the evening along with the guy that runs the site and he can answer any questions you have about this investment hope to see you there sometime and even if you dont visit hang onto your dinar.
He is saying that RV, as a windfall investment won't happen and explains why.
There is an intense amount of argument regarding the Iraqi Dinar. Now, I am not one to either go for or against the investment without weighing out all of the variables and potential outcomes.
First variable: Is their a chance that this currency could collapse and I could lose everything I have invested? (Short answer. Yes)
Follow up question: What is the probability of the currency collapsing and me losing my entire investment? (Short answer. Not likely at all. Research and studies have shown that even in times of great depressions in countries across the planet, currencies seldom collapse altogether. Iraq's economy hit rock bottom a long time ago. Unless the country is invaded and completely collapses altogether, it appears that there is no major risk in your investment bottoming out.)
Second variable: What is the likelihood of a revaluation? Revaluation depends on so many different aspects of Iraq's economy that no amount of information or discussion can predict what will become of the Dinar. Many people have thoughts on the matter, however if you really want facts, type in "Dinar, CNN" on google and you will surely realize that each and every blog and response on a message board is based on opinion and can not know the real truth of the dinar.
Should I invest in the Dinar?
Your investment into the Dinar should be based on your ability to know that you have more investments to fall back on should this currency never revalue. Many people are shunning this investment, however, in reality, if revaluation did occur, people would stand to earn several times the amount of their initial investment. 2,000 could be 2,000,000, or 2,000 could be toilet paper.
I personally have chosen to invest in the Dinar with no attachment to the outcome. If the currency revalues in the next five years I will make a lot of money, if the currency collapses, I will lose a little bit of money.
Only time can tell what will be. Now get some rest, and just trust the process of life.
Peace,
Jordan
jordan you have made a smart decision my friend from looking at the articles that are coming out and what the cbi themselves are telling us in my opinion we will see this very soon possibly before the arab summit next month so hang in there they have said they will do this in 3 phases and the first phase is complete which consists of getting proper machines like de larue machines etc... second phase is to release the lower denoms and rv their currency and the third phase is take in the remainder of the 3 zero notes they said each phase will take six months and they have also said they want this whole process to be wrapped up by end of 2012 so we shall see alot of good articles coming out from the cbi so hang in there!
Jordan… I find it interesting that you discount the downside of the investment because it “seldom happens”. Yet you promote the upside even though it has absolutely never happened.
Rich seems to still be under the impression that the CBI is announcing to the world a 100,000% increase in the dinar. They have announced once they get government approval for the plan, they will do a massive "public awareness" campaign to educate people on how the process will work. Imagine that... the CBI is going to do a massive public awareness campaign to let everyone know about a 100,000% RV. Yet the CBI has had to issue restrictions on the auctions because everyone wants dollars, not dinars.
Again Rich... if real investors had even a slight thought that the dinar might RV some large %... the market value would have skyrocketed. Instead the market value has sunk lately. Last I saw it was about 1235 I think.
ok then stew whats the hold up on the redenomination? They could of done that a long time ago and you tell me whats gonna entice their people to wanna use the dinar if the usd is worth more?
Rich... you said yourself they are doing it in phases. They are getting approval from the Gov. They need to print the new currency. They need to educate the people on the plan. It's not something that can happen overnight. It's been a very normal progression. It was suggested by the Minister of Finance years ago. The CBI then decided to adopt the idea. They had to wait for inflation to be brought under control. They had to do studies. They have completed all of that and submitted the plans and studies to the government for approval. They are still awaiting that approval.
Rich... there are over 200 currencies in the world, only a handfull have a per unit value higher than the US dollar. why do the people who use all those other currencies want to use their currencies???
Japan is and has been around 100:1 for years... they don't have a problem using the yen. Italy for years and years had a 1500:1 rate for the Lira. Italy was an economical powerhouse with that rate.
Tell me why they WONT use the dinar just because it's rate is 1000:1? The gurus have convinced people of this crazy notion that the Iraqi people are poor because of the exchange rate and that's total nonsense.
well then stew the articles are lying just the other day there was one saying they will have the dinar be at least as strong as the dollar.
Yes Rich... with the redenomination/lop it will be just as strong. When everyone turns in the current dinar worth .00085, and for every 1000 they turn in they will recieve one new dinar, that new dinar will be worth 85 cents. That is standard redenomination/lop procedure. It's nothing new. It has happened 100 or so times in recent years.
Haven’t you noticed that in many of the articles they even state that they are doing the same thing that these other countries have done. They constantly use Turkey and Russia as examples. They even stated one time that 53 other countries have done what they are planning to do. Do you really think 53 other countries have RVd 100,000% percent?
All of those countries lopped… not one RVd like the gurus claim will happen here.
ok stew and they also have said they wont lose their face value so if someone were to exchange a 25 k note for usd though they would recieve 25,000 usd.
No... they have stated the dinar will not lose value. Which is true. If you have $1000 worth of current dinar, you will get $1000 worth of new dinar. I doubt they ever stated "face" value.
stew ive seen too many articles from the cbi that they are going to raise the exchange rate of the dinar to at least 1 to 1 with the dollar if not a bit higher as to entice their people to wanna use their currency again iraq is not in the same situation as those other countries you mention they have alot more going for them why wouldnt they get it to at least worth as much as the us dollar? There budget gets voted on monday so we should get some insight soon as to whats going on
Rich... there are 30 trillion dinar in circulation. A 1:1 rate would give them 6 times more currency than the rest of the world combined. Does that sound reasonable to you?
They have voted on and passed a budget for about 6 straight years now Rich. Pumpers have used the budget every single year as a reason it has to RV.
stew heres an article for ya pay close attention to parapraph 3 but read the whole thing [advertising removed]
No one got screwed. Were talking about a currency here. Would you says you got screwed because you got pumped into buying a stock? What would be more legitimate? A company who's traded or a Country that has an estimated over 550billion barrels of oil. A country who the united states has invested so much time money and blood into. A country who still has great assistance from the united states by way of our own US Treasury, Chamber of Commerce, and international organizations such as the IMF and UN. All of these organizations point to great prosperity for IRaq. Does that mean their currency is going to make us millionares nope but it shows there is great potential here. The problem with Iraq redenominating is that this is the easy solution for countries who have gone through huge periods of inflation. The conclusion to do this is not complicated. What's needed though is political stability. What's NOT needed? A bunch of people holding this currency outside of Iraq. So 8 years of allowing their currency to be pumped which is currency they must honor otherwise internationally they will lose face. Why? That's the same as stealing. PERIOD. That will definitely reflect poorly on them internationally if they don't honor their currency. All of a sudden contract negotiations are not in their favor and everyone wants bullet proof guarantees. GET IT? So if they have to honor their currency like any other nation in the world, then I say they have too much of it outside of the country to redenominate without avoiding a HUGE sell off. They don't need to see billions of dollars worth dinar being turned in within a short of period of time. I Don't care if they have 60 billions in their reserves. They don't want that. CBI shows there's 28-29 trillion dinars outside of the banks. Many Iraqi Articles have alluded to 4 trillion dinars being in circulation locally. A lot of Iraqis have turned in their dinar and hare holding US dollars especially when it comes to their life savings. So bottom line, its not such a scary investment. They will allow it appreciate or they will redenominate and just pay us out but what they won't do is NOT honor their currency. This is a currency not a stock and not some lotto ticket. For those people who are not holding and think this is a scam. You guys are retarded in not seeing the chance that there maybe a huge upside and if that Dinar does take off, you will be kicking yourself for days. Why do you think so many people only buy a few hundred or a thousand or two?
nice post hookahman and stew read this [advertising not allowed]
The Rothschilds have been plundering countries for centuries, including the currencies. They start wars, DV the currency, tell everyone through their media dogs that the currency is worthless and they buy it up for less than pennies on the dollar. Everyone knows investing in it will be a waste of good hard earned dollars.
Welcome to the best investment ever made. Bush 1 and 2, Cheney set this thing in motion and brought the dinar to its knees overnight in Mar 2003. It will be brought back up to par where it was in the 1980s as it will be a tool to stabilize the US economy and the rest of the worlds economy. The FED can not and will not put more printed money backed by nothing into the US economy. All that is crerated in the US anymore is debt and their time is up. Greece wants to default on the bogus loans made by the ECB as well as Ireland and Portugal and Italy. The Euro is basically like the USD is that it can be printed but the gig is up. The real wealth of Iraq can be used as a source of backing up the dinar as a real currency. This revaluation will help the US economy convert from fiat currency to a gold backed one. The dollar is done. The RV will help ushed in a new money for the US and will be a national currency as the FED will be federalized for real and the banksters from Jeckyl Island will go away, whether to prison or given immunity for turning over evidence of the biggest theft in the history of the world making Bernie Madoff look like a kid who stole a nickel from Grandma.
Those in power do not want to see the public get a windfall from this but other powers that be are forcing their hand. We should see more turmoil in Iraq to get some large investors out of the dinar before the RV. The runup of political chaos since the US left is all part of the plan to get a few unworthies out of the dinar. I am not a guru. This is just my opinion
You pro dinar folks are boneheads. It's a scam that turned into a religion.You have a better shot at hitting the Powerball.
ill bet you a 12 pack that all the peeps on here that think its such a scam actually have some dinar but they are frustrated it hasnt happened yet lol lz tell me what scam allows you to get the bulk of youre money back at any time if you want to trade in your dinar huh? It's just purely a situation where a country's currency is devalued because of a war and were betting that they will get it back to where it was pre war now that might take some time but there are too many articles lately that suggests this will happen very soon so we shall see and in the end even if they redenominated which aint gonna happen in this situation we would at least get our money back so i can wait.
Seems you will believe just about anything Rich.
Rich,
Nice comments that show your very informed on what the CBI is saying.I'm a holder of Dinar and I have done the research too.So many people want to use the word scam with this speculative investment. When you are attempting to build a nation of tribal warriors into a modern society. Things cannot happen overnight. Some have held on to their Dinar for 8 years. I would venture to say that their have been many speculative investments that have taken even longer to pay-off. I'm holding on to my Dinar as the CBI is now on record as saying Iraq will be a world reserve currency. That does not sound like a scam to me. To hedge my investment I own 3 zero notes, 2 zero notes ,and electronic Dinar. If more people would build a strategy based on CBI information. They would not call the IQD currency speculation a scam. Go R/V!!
edward thank you and i agree with you that iraq has gone on record saying the dinar will be a world reserve currency how are they gonna do that with toilet paper stew?
Can you please point me to an article where they stated the dinar would be a world reserve currency.
Currently the dollar is by far the most held currency, second is the Euro. Guess what's third. The Yen... at about 100:1 the yen is the third most held currency. It only takes about 10 dinar to make one yen. How can the Yen be the third most held currency with that crappy rate?
Exchange rate has nothing to do with a curency being used as a reserve.
In September the new dinar will be introduced. It will be worth about $1. The currency you hold will still be worth about .001. It will take 1000 of the current dinar to get one of the new dinar.
Stew,
There is an entire host of Dinar web-sites that you can get current and past news articles from Iraq. You need to do your own due diligence on the IQD before you make statements that are in contradiction to the CBI itself. I listen to the central Bank of Iraq (CBI) and watch what they do. You should be more of a student of their policy's also. Your last statement about 1000:1 is being misunderstood because I'm sure your not skilled in the Arabic language. This is why you need to study the many articles from the CBI translated into English from Arabic, to come to an accurate understanding. With all due respect, your at least 1 year behind the curve.
i will get the article stew.
Shouldn't be too hard. Pumpers claim it has been stated many times and they've been claiming it for a while.
I just read a recent thread on one of the big dinar boards talking about this issue. There was not one single article or quote stating such a thing.
Looks like someone is promoting dinar pumper lies again with nothing to back it up.
To Stew and LZ:
If you feel so strongly that this is a scam then why do you,
A) keep returning to this website to waste your time and argue with people who believe in it. You are essentially arguing religion with everyone, you're not going to change their minds.
B)What do you care if a small group of people speculate on this currency? What business is it of yours? Either buy some yourself, or leave it alone. What meaning does it have to your life if people buy this currency?
C) Investing in this currency is no different than investing in a startup company (via stock market) you might get rich, you might lose it all. However, at least with this you have the opportunity to sell back or even with a lop off of three zero's you would get back 85% of your original investment.
Just my .02
Fact: The Federal Reserve Act ends on 12/21/2012 (Does this date sound familiar?)
Fact: Iraq has oil (A lot of it, "allegedly".)
Fact: Gold has recently been found (Where else?) in Iraq.
Fact: Currencies backed by "valuable assets" are generally strong (What assets does Iraq have that could possibly be valuable?)
Fact: Over the 195 countries (including China & the U.S.) are invested in the IQD.
Fact: Where there are good investments, scams will crop up around them.
What's that old saying about "having eyes to see and ears to hear"?
http://www.kurdishglobe.net/display-article.html?id=3CBF63FA930E6C8FF6BBF1EDC3B7D027
HOW MUCH MORE DO THE RV DREAMERS NEED?
http://www.kurdishglobe.net/display-article.html?id=3CBF63FA930E6C8FF6BBF1EDC3B7D027
HOW MUCH MORE DO THE RV DREAMERS NEED?
WHY WOULD I WANT TO INVEST IN SOMETHING THAT I CAN LOOSE 15%
your really not even risking 15% lz because just say iraq redenominates like some say its basically a wash and you'd recoup probably all your mnoey back now if they rv at say 1 to 1 then you made a chitload of cash and it seems with all the articles that are coming out thats the way its gonna happen so to me its not much of a risk at all!And even if they redenominate they could still rv after that and then we'd make some money then to just not like we would if they were to straight up rv.
Good article LZ...
"He added the exchange rate between the new banknotes and the old ones would be 1:1,000."
Can't get clearer than that. But I'm sure the pumpers will move right past it.
Thanks Stew.
Rich, let's say the LOP and RV to 1dinar to 1 dollar. We would make around 11% profit and after all the fee's, we will still be at a loss.
I think you are in fantasyland and refuse to realize the truth. I have a friend that still gets his info from the pumpers and absolutely refuses to even read anything that challenges the pumpers. I feel so sad that hekeeps pissing his hard earned $ away on phony info.
ok lz i want you to tell me why iraq will not rv their currency? There really is no risk in this investment unless they just dont do anything.do me a favor and this is for anyone that wants to listen there is a conference call tonight that will have some good info not pumper info either listen to it and then we can discuss this in more detail over the next few days the number is 209-647-1600 access code is 215972# and the call starts at 7:00 pm pacific time the info usually lasts about an hour and after that they have a q and a for about another hour. the call is free and stew if you read this please check it out also talk to you guys soon.
Come on folks this is a no brainer. Check any other oil producing country that has wealth generated from oil.. Iraq is going to be there sooner or later. The cost of 200,000 dinar is the cost of a few tires on your car. Go get 200,000 and sit on them. Hey if its such a shiety deal you can always switch it back.
My opinion is if you've heard of the Iraq Dinar and haven't bought you are some foolish person who doesn't see a gift horse.
"No Brainer" might be the best description of this investment ever.
Stewie my man, think about it for a bit. Unless you have some hidden agenda here to discourage people from investing in the dinar I would like you to truly think about the opportunity in front of you. For the cost of sweet f all you could make a small fortune overnight. I'm not talking about putting thousands of dollars into this transaction just pick up 200,000 dinar and it should cost you around 200 dollars or there abouts at least that is what it costed me when I picked mine up. Hey I don't give a rats ass if nothing ever happens.... but what if it does. there is so much smoke and mirrors going on in this world. I can't honestly forsee the dinar going down, just based on the countries natural resources alone. Like I said I spend 200 bucks on a pair of tires for my car. Why not invest and see. Treat it like penny stock if it goes it goes and if it doesn't so what nearly no harm done. The upside is so large you can't really be that stupid to not buy them. There is no down side at all or nearly none. You could always transfer the dinar back to your currency and be done with it.
Tom,
I like your reasoning. Like any investment you must stay emotionally detached from it. I have thought for a long time that there are alot of bashers that smacktalk the IQD because they at one time invested and were too attached. When their easy money expectations went unfullfilled, they turned anry like a woman scorned. Because Iraq is a nation in the stone age culture this investment has taken time to mature. One cannot expect change to happen in 10 years, when the problems of such a culture are hundreds of years old. Our American culture is too used to instant gratification.
Right on the target Edward, treat this sort of investment as speculative. But I must say in all my years of investing the upside on this one is so huge it is silly not to invest just because of that. Sure I'd love to have an overnight windfall but I'm not banking on it. Iraq over the next 10 years will in my mind have its currency move upward in very nice increments. There is always the chance of another war or some other unforseen but hey its 200 bucks I'd have probably blown on a good night out. Besides I think the lady on the 25000 dollar bill is hot...lol! Id ride her camel anyday!
Tom... your $200 would be better off spent on lottery tickets. Even though there is only about a 1 in 40 million chance you'll hit the lottery, those are still infinitely better odds than a big RV happening... because those odds are absolute zero.
The bottom line is all who challenge this investment or those who are close minded need to educate themselves in order to be so skeptical. Any investor whether small or big, uses knowledge and facts at hand to make the better decision to hopefully accumulate a monetary reward. The facts are this isnt the first RV; past RV's have shown strong rates making plenty of big investors wealthy on more than one occasion. This dating back to the 1930's so look it up for yourself. This is not impossible and is not unheard of. Iraq is rich of minerals and resources and is basing their currency on such resources NOT individual assets. This investment is not even close to being a bad investment as articles over the past week show significant improvement within the countries ability to rebuild and establish a new budget. Not too mention worldwide backing towards this global alignment and the due diligence in removing crooked politicians and money shot callers who might have a negative effect on such a situation. (Massive Improvments) Whether you choose to be with this investment or without; the factual pros outway the factual cons so please sitback and enjoy the ride because this is in the works and in-country information points to a very potential successful investment and a satisfactory return. With China backing so much due to our debt its clear something is materializing that will ensure United States wealth and help the re aligning of multiple other countries. Thats all for now , please do your research and youll see for yourself its not unheard of.