Kuwait and Iraq are two of the richest countries in the world, each country holding 10% of the worlds oil. Kuwait and Iraq are neighbours also, some people don’t know this fact.
There is one additional distinct similarity between the two counties regarding a revaluation. Both countries have international support to revalue their respective currency. Kuwait experienced its revaluation virtually under the radar after the Gulf war, probably because the Internet as we know it was not around for online trading of restricted (pre-reval) currency.
Violence in Iraq has dropped dramatically over the past 5 years and this violence was one of the largest reasons that the Iraq Dinar as we know it could fail to make it to the world bank. Were over that hurdle now, waiting for sanctions to be lifted along with more progress in the Iraqi Government.
Although very real and realistic risks are involved in the Dinar, there are a couple myths that are just impossible. Having a reliable source of information is important.
If it was a criminal offence to make or believe false accusations about Iraq Dinar currency, I think I could think of a suitable ‘Charge’ such as:
“Gross Negligence In Iraqi Dinar Knowledge Causing Broke Mentality.”
Whenever rumours, even ‘reliable source’ rumours relating the Iraq Dinar to Germany’s currency downfall after World War II, there could very well be charges laid of Gross Negligence In Iraqi Dinar Knowledge Causing Broke Mentality. Assuming such type of mentality were illegal, which it is not.
The world did not support Germany after World War II and Germany does not have 10% of the worlds oil for good measure. Yes, Germany had to devalue their currency after that war. The US Government is fully backing Iraq along with the World Bank and countless other countries with oil deals in the works. Iraq is all about revalue, not devalue. The enemy wants the devalue, and the broke critics like to place the term ‘devalue’ into false ‘reliable source’ scenarios.
My question for you now is, if such broke mentality were in fact a criminal offence what would be the sentence?
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This article may be reprinted online and offline as
long as this box remains and is hyperlinked online.
Written by Darren Chabluk for http://DrDinar.com/blog
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Darren,
No sentencing for the losers – the broke mentality crowd. They’re just going to have to eat their hearts out. Revaluation is coming whether they like it or not. It’s just a fact of life and that’s the way it’s going to be. It’s the way of nature. The world needs the oil and the world will get that oil – It’s all about survival.
DARREN,KEEP UP THE GOOD WORK,ITS GOOD TO HEAR FROM YOU, BAD OR GOOD NEWS.
I agree. Revaluation will happen, period. The way things SEEM to be moving along, I don`t think it will be much longer before it does happen. There are too many `contracts` waiting in the wings and as you say Darren the U.S. is backing Iraq and so is the World Bank. So there you go. Happy times ahead!! Let the nay-sayers have their say!
They`re on the wrong track so they`ll have to retract before too long!
HI,
IT WOULD BE NICE TO SEE A REVALUE, BUT WHAT IF IRAQ DECIDES TO JUST USE THE DINAR INTERNALLY AND USE ANOTHER CURRENCY FOR TRADE?? ALL THOSE WHO INVESTED IN THE DINAR WOULD BE STUCK.
POSSIBLE OR NOT???
Maybe some of you know this but maybe some don’t. The US and England paid for the printing of the 9 Trillion Iraq Dinar. Not only is the Dinar being used in Iraq today but it will be their International Curriency once the World Bank, the ICC and the IMF agrees to plave a value on the Dinar that will be used around the world. That is why most countries own Iraq Dinar. They are waiting for the revaluation and will have a supply to exchange and to use in trade with Iraq. Of all the things that has not been mentioned here is the fact that the Bread Basket of the middle east is located between the Tigris and Euphrates Rivers in Iraq and one day it will produce the needed food for the middle east. They will need an international money for that as well as oil.
Hi this what i think at first before the revaluation take place the world bank will have to print new Dinar reason these bank notes will be too huge for the value that they will have for example kuiat Dinar in circulatoin is 1/4,1/2,1,5,10,& 20ts
Hello this question is for Darrell.
Ok i own 1.5 million of the new iraqi dinars in 25k notes.
Once the Dinar does a reval will it still be equal to the 1.5 mill dinars that i currently own? just curious.
Larry
When the reval happens and lets say you have 1.5 million Dinar now it is worth about $1,500 US Dollars. If the Reval starts at 10 US Cents then your same 1.5 million Dinar will be worth $1,500 US Dollars. From what I have been told the Iraq Centeral Bank wants the Dinar to be equal with the US Dollar within a few months after the reval. What the Centeral Bank of Iraq will do is make smaller bills they already have a 50 Dinar note and smaller Dinar in coins. There will not be a new Dinar printed what is printed is being used inside Iraq as their medium of exchange.
Al, what your saying is impossible. Here is why, if Iraq were to reval, use another currency for trade outside of Iraq and use our Dinar inside Iraq. People will just smuggle Dinar into Iraq just as they smuggled it out to cash in. Hence, reval is not a deval.
What Samual is saying is that there needs to be Banknote denominations smaller than the 50 when the reval occurs even with the current (higher) denominations accepted in full power.
Larry, yes, your Dinar will be worth exactly what it is. Chopping 0’s off of a banknote is a function of a DEVALUATION and as you very well know – we are dealing with a REVALUATION.
A deval will not be used in any way to harness a reval, it is impossible, it has never in the history of man been done. Central Bank of Iraq will harness the reval with the World Bank Exchange Rate.
Example:
Dinar Will Not open at $3.00US or even $1.00US, its just too high and Government officials are simply not backing such a high opening rate. Therefore, the Iraq Gov’t will experience an opening World Bank reval in a realistic range anywhere from 1 penny to 80 cents US or somewhere in between.
Fact:
The USA has 2/3 of its currency OUTSIDE of the USA. The US greenback is a world famous banknote on the world market. The Iraqi Dinar is now positioned for such fame as well – which is an extremely powerful position for Iraqis to be in.
Don’t forget, it is in the best interest of Iraq to buy back ALL of the Dinar as FAST as it can as they will be able to resell it again at a profit or at least at par. That is what a successful reval is all about.
To back up what I am saying, very few people privately own dinar around the world. We are an elite bunch of ‘risk takers’. And Governments around the world own Iraq dinar as part of oil deals. The US Government owns a KINGS RANSOM in Iraq Dinar currency and I personally interviewed the man in charge of counting the shipment in front of heavily armed men when I did the Billy Giles interview this year.
Reference made to Billy Giles Interview ==>http://DrDinar.com/blog/2009/04/11/4-years-in-iraq-studying-dinar-live-phone-interview-first-50-callers/
So tell all those naysayers to take THAT to the bank. I owned Dinar when it was ‘not cool’ to own dinar back in summer 2004 and so has many readers of this blog.
As we speak there builds a BAND of investors waiting to buy the moment the Dinar revals, some of whom read this very blog! But they won’t buy till it revals?! Strange but it happens all the time with World Bank currency debuts. This will cause a surge in Dinar price right after reval while some of the dinaraholics race to sell. This happened with Kuwaits reval, and as you know, they are next door to eachother.
Please post your feedback on this thread, lets all be Clear on this. There is no smoke and mirrors here. The rebirth of Babylon comes to mind..
HI,
I BELIEVE WHEN THE OLD DINAR LEFT THE MARKET IT WAS AT $.31.
NOT A BAD PLACE TO START!! PROBABILITY IS SMALL FOR 2009, SO HOPEFULLY 2010 WILL BE THE YEAR THE REVAL WILL OCCUR.
Interesting,
There are some real astute posters on this blog, good on you, enjoyed reading your input as it aligns with mine for the most part. I too believe we are as close to restoration as ever. When you look back as we all do, almost every goal set out to be reached has been, except for one, the oil law which is now over a year with no passage. Even chapter VII is resolved, so watch what happens next.
With elections coming up in Jan., and Maliki being challenged, I am certain Maliki will buy the election just like in the U.S., lol It is all about money, and with Iraqi’s having their debit cards, and coins being removed from market over a year ago, there is no other conclusion I can think of than the time is now, before the end of year, so stay tuned.
Success to all,
http://www.VOIP-COIP.com
i own about one million dinar since the time they printed the new ones , but what i would like to know is when the reval does finally happen where do we sell our dinar do we have to go to iraq to get rid of them or will they be transferrable at our local banks . good luck to you all regards john
also if we have to go to iraq how safe will it be carrying all that cash into their country seeing every man and his dog will be heading there to cash in regards john
Any currency traded on the World Exchange can be traded in every country in the world that has currency exchange house banks. Do a search for your country: Australia currency exchange bank (city)
Woo-hoo, Darren the posts are great and I have to thank John for his question (it was also one of my burning questions that I never dared to post).
I did find that the Commonwealth and most major banks in the cities of Oz can also exchange money.
Interestingly, the disclaimer states that ‘The exchange rates provided are for foreign exchange transactions up to AUD 50,000 and are intended only as a guide’ whatever that means…
And thank you Mike for your bonus post,
Thank you very much for your valuable blog,
Suzanne
P.S.: Has anyone here been to Iraq during this year? Just curious to learn how the countryside is these days – like is the bread-basket area green and lush?
Good information and great reading! There is a wise statement which declares one has what one says! Those who own the dinar will prosper and the worriers will still have their fears and their poverty. Thanks!
As for exchanging Dinars, you will be able to do that at your local bank. One bank told me that I would have to let them know a week or so ahead of time so they can have enough currency on hand – depending of course on how many Dinars one wants to exchange on a certain day.
As for the what the Dinar will `start at` is anyone`s guess but I remember reading that Condoleeza Rice had mentioned at a meeting back in 2004 I believe, that the U.S. would be ready to back the Dinar at 80 cents. Whether that is still `in play` or not I don`t know and it`s not only the U.S. who will have a say in the matter. HOWEVER, that amount sure sounds good to me.
Let`s stay positive and keep smilin`. 
Interesting,
Whether it was said or not that U.S. would back Iraqi Dinar at .80, things have changed dramatically over the past few years, and the U.S. cannot even back the dollar with drop of 20% over past year alone. lol
As I see things, one way or another the dollar and dinar will be one for one, either by dinar revalue or dollar devalue. I have always felt the .31 would be starting point, and since the verbiage used over and over was restoring dinar to former value, you have to assume they were referring to the value just prior to devalued dinar in 2003 which the Saddam dinar was at .31. Sure, you can back up in time, but 3.41 or whatever was not and was never an internationally traded rate, it was pulled out of a hat by Saddam, so not real then, or now.
Time will tell, but I cannot see how the introduction of restored rate to former value will be much higher than .31, but I do believe it will rise again a lot sooner than many think. With talk of unified currency in middle east region, this could set the stage for an even higher value, especially if they get oil pumping at the expected 4M barrels a day level we have heard. That combined with oil going back up in price next year when Iran confilct explodes, hang on, it will happen, and no better time than now to buy an election for Maliki. lol
www,VOIP-COIP.com
Dear Mike,
The unified currency of GCC is not going to materialize any time in the near future. Oman and UAE is already out of it. Let us be realistic. Iraq joining the GCC is also a long time dream, which is also will remain in the dream for a long time. Because, I am an asian working in the GCC for the last 27 years and has indept understanding about the mindset here. As for the revaluation of IRQ, I can agree with Mr. Mike with his prediction which seems realistic, but will have to wait some more time. I am sure that the value of Dinar is going to be increased. But it will be in a gradual manner only. As I see look things from my prespective from the Middle East, Iraq is going to be in the forefront of development and attract investment from around the world as other GCC countries are either overdevelped or spent the resources for unfeasible projects. The proble withing this Middle Eastern Countries is that they cannot even agree to disagree.
Regards, Attakoya
Agreed,
I don’t think GCC will happen soon, as in this year, just sooner then many think. I say it will happen within two years, so what is your guestimate with 27 years experience. You must have a notion, even with the fact they can never agree to disagree, which I also agree with.lol
http://www.VOIP-COIP.com
hi…i don’t think goverment of iraq stupid…(heeeehehehe)
Hi All
Just a quickie to everyone.
Who is going to sale them straight away & who is going to hold on to them.
Holders why hold them & when do you feel will be the best time to cash in
Cant wait to see the “you must be mad waisting your money on that rubish”
eat there words
Regards
Steve
Good question,
I am holding for there is a lot further to go once oil shoots back up to $150. plus, so it would be foolish to cash out entirely, of course, some should cash out enough to get entirely out of debt is best advice, then hold whatever you can which will also lesson tax bite.
Success to all,
http://www.VOIP-COIP.com
Also weighing on the U.S. dollar was a British newspaper report that Gulf Arab states were in secret talks with Russia, China, Japan and France to replace the greenback with a basket of currencies in trading oil, though big oil-producing countries denied the report.
If this report is correct where does it leave the Dinar of Iraqi?
Just Curious
Larry
No impact one way or another on dinar, except dollar may drop to level of dinar instead of dinar rising to level of dollar. lol
http://www.VOIP-COIP.com
there is also the problem of tax here in australia , im not sure of u guys in america but we will get taxed at an approximate rate of 48% ( which sucks big time ) unless any holders out there know of a better way to reduce taxation ????? . also i heard rumour a while back about a reprint of currency and getting rid of the notes we have now , because of a revalue these will be too large a denomination where would that leave us then . great site and comments i wish wealth to u all regards john
WOW, that is some tax bite, sorry to hear. We don’t get hit quite as hard in the U.S., but I am sure this too is about to change given U.S. has a multio trillion dollar debt which they cannot even pay the interest on. lol I expect huge tax increases, so hopefully it happens sooner than later before tax rate goes up.
As to any change in currency as has been discussed, no problem, I don’t think this is going to be a change like when Saddam was overthrown and they had to dump all the notes given his mug was on almost every note. It would not have been possible to leave this currency in place, so that is only reason new notes were printed and devalued. The talk now is to add Kurdistan lanquage to Arab, but I think that is nonsense as I know people in Kurdistan and they had never mentioned this was ever mentioned in any papers or on news, so it may be a cover Baghdad up for reprint of smaller denom notes. As most know, you cannot believe anything the Iraqi’s say. lol
If it is true that new notes are to be printed, they will be lower deonom only and the larger 5K, 10K and 25K will simply be phased out just as was done in U.S. with $1K and $500. note, they even had a $10k note used by banks, but these have been long gone from street and collector items, I have a $1K and it is still legal tender, but worth far more to collectors, especially with dollar dropping to near all time lows this past year. lol So don’t worry, they will not be replacing notes, just adding new lower denoms.
Success to all,
http://www.VOIP-COIP.com
SOME INFO FOR THE AUSSIES OUT THERE , just did some checking with the tax department in west australia and whatever you change in dinars can be classed as an income and be taxed at the rate that you are paying on your wages now which is a bit of a relief but should check with your tax department in your state anyway , anonymously of course .
regards and luck to everyone
Thank you kindly for your research, John.
Have a quantum week!
was just wondering if anyone knows what effect the vote in january will have on the reval of the dinar , is this a positive step towards the revaluation of the dinar . luck to all john
Good question,
Like every piece of this puzzle, each one holds value, and this one clears the way for any potential hold up in elections. With Maliki sweating bullets over election, even trying to block the minister of oil inquiry over his failure to increase oil production over his term, and given Maliki was trying to stall inquiry, it goes to show politics as usual. The learned well how U.S. democracy works, corruption is out of control in Iraq just as it is in U.S. lol
When you look back over all these years, each piece of the puzzle is important, some more than others, and as I see it, this Kirkut issue is not going away, it was simply cleared temporarily to clear out of way for elections. Nothing was really resolved, just shelved. The deep seated reasons why the Kurds want back the region which was their own prior to Saddam expelling Kurd’s, and now Arabs were given control, and in recent years, the Kurd’s who were expelled have come back to claim what control they once had. Now that a huge oil reserve has been proven, now it is an oil issue on top of control, so this is far from resolved.
The one thing we all have seen is the hatred between sects dating back centuries,and this will never change. With the same issues apparent in Parliament, total hatred amoung sects, this whole issue of who gets what has been delayed for years. Now we have elections in Jan, and any delay would have only helped opposition to Maliki who has done little in office for the poor.
What Maliki has done is successfully allowed all his party members to rip off Iraq for billions over his term demonstrating Iraq has learned well from U.S., and that is for gov. to rip off as much as they can from tax payers. Iraq is no different, and looking at latest inquiry into oil minister who was ripping off his millions, if not billions, and all the while doing nothing for the poor, and to think he has not increased oil production during his term, makes you wonder. And when Maliki was trying to stall hearing until after elections, it gets more interesting every day.
As I see it, this is how Iraq operates, let the party members in control rip off as much as they can from the poor citizens, and we have seen many examples of this, so Maliki wanted to stop inquiry for fear the truth would come out just before elections. We know how the oil minister has been at war with Kurdistan over signing oil deals, and if the Kurd’s were put in control of Baghdad back in 2004, I would be Iraq would be pumping 6M barrels a day and all of Iraqi’s would have electricity, be employed and less killing than we have seen.
The poor who have nothing to live for sacrifice their lives, the wealthy would never blow themselves up, and this is why the Kurdish region is so much more advanced and economically stable than Baghdad, so you have to ask yourself, what has the current government done for the poor? Nothing, that is the real issue, while all Parliament members are millionaires over same term. The Kurd’s are the true leaders in Iraq, and as the minority, and knowing Arabs hate Kurd’s, this Kirkut issue is far from over.
The temporary agreement to prevent delay in elections was needed as Maliki’s re-election is far from assured, and this is what I find most interesting. I think Maliki will have to buy his election just as was done in U.S. by effectively promising the poor extended unemployment benefits, bail them out of foreslcosures, healthcare for all, you name it, and it was promised to get elected. Who voted more than at any time in history, the poor, and this is no different for Iraq. The poor have gotten nothing over the Maliki term, and all we saw was gov. leaders get wealthy, sound familiar. lol
Iraqi’s are waking up to this fact as they still don’t have electricity 24/7, unemployment is still high, hope is dimming, and Maliki has to do something to get re-elected, and I feel he will try to buy election with a restoration move on currency, even if a smaller than expected one, I think he knows he has to help the poor to be elected this time around, and an example of his fear was when he tried to delay inquiry into oil ministers faliure to increase output. Sure sounds like Maliki is worried to me, so this should be an interesting time for all of us as elections near.
Success to all,
http://www.VOIP-COIP.com
just a quick note now that dubai is in a financial turmoil does anyone have any ideas on how this is going to effect iraqs reval , if at all it will .
negative or positive effect ????? regards and luck to all ,john
Good question.
As many know, peak oil is hitting UAE and has been in steep decline for years, and main reason why the ousted all outsiders from oil industry to keep this secret as long as possible while they invested in building other profit points, like real estate and tourism.
Combined with peak oil, and the decline in oil prices, even the super rich oil countries are feeling the worldwide recession. Dubia in particular started building mega buildings and making region a tourist hot spot trying to replace what they knew was coming, running dry of oil. Already evident from my sourses is the grade of oil has declined as well as volume being pumped, never mind cost given extraction expenses are double what they were a decade ago.
Simply put, this has shaken all the markets, stocks dropped 150+ in U.S. as well as other markets got nervous. If Dubia becomes insolvent like the U.S. technically is, watch out, this could spell the end for any full economic recovery for next decade. So with peak oil becoming more well known in middle east, no doubt this will explode oil prices back up to $150. + range again which combined with shortages will force UAE to purchase oil eslewhere in time.
Now who has the largest reserves in region? Iraq, and when this is released with upcoming contracts with big oil developers being signed every day, it is only a matter of time that Iraq will become the wealthiest of all middle east countries in the next decade. Sure makes things more interesting since Dubai became involvent and shook world markets. You have to ask, who is next? I see Iran sanctions getting tighter with refusal to adhere to pressure on nuclear development, and if Israel attacks as I predict they will, all hell breaks out in region, so oil prices will go even higher, all good for Iraq. I like to gamble, so I am betting on Iraq big time.
Success to all,
http://Pro-Poker-Secrets.com
I believe that Jay Robbins reply to Larry about the value of his dinar if it revalues at .10 is incorrect. He stated that he as 1,500,000IQD. IF it revalues at .10 he will have $150,000 USD not $1500 -do you agree?
jo rip u are correct at $150.000 not $1500.00 regards and luck john
Has been a lot of news of recent from Iraq with the oil deals going down & the news of the election date set but what about the big problem of the exchange of the Dinar?
I have had the luck to get to know a very informed Iraq Dinar seller/investor who now informs me that you do indeed need a bank account that you can deposit your Dinar in before you have any chance of making a profit from them.
It will be practically impossible to exchange physical bank note (Dinars) if you don’t have them in an Iraq account.
As I live in the UK it is impossible for me to place or deposit the Dinars I have in to a bank, first hurdle is to open a bank account, tried this with Warka but as yet had no reply, even if I do get an account the second problem is getting physical bank notes in to that account, cant mail it to risky, cant wire them as there in my hands not in a bank & there are no banks or money institutes in Europe that will even consider the Dinar.
All though things seem to be on the move in the right direction hurdles still seem to get higher for the investors with physical bank notes.
If anyone knows any different I would love to hear.
Merry Xmas to you all
Steve
Total BS, when the dinar is restored to former value, notes will be accepted from anyone who is in the currency exchange business, which means most major banks, so don’t worry about it.
Merry Christmas to all
http://Pro-Poker-Secrets.com
Some of these posts are great and others are funny. I have never been wealthy but I am not stupid about wealth either. Iraq screwed up in 1991 and that is when their money started to dive. I talked to a money exchanger in Kuwait, many times, who had been there doing that job for over 30 years, in Kuwait. He remembers trading ID (Iraq Dinar) when it was of more value than the KD (Kuwait Dinar). Business was being done between the two countries and men traveled between them, sometimes needing to use the exchange.
The countries that have the most to loose when Iraq evaluates it’s money are Iraq’s neighbors and the members of OPEC. Iraq will soon knock Saudi from it high position of global oil authority (what’s that worth to Saudi Arabia). Iraq has by far the most ability for income than any of those mentioned. Oio, gas, farming, mineral mines, religious tourism, central location…….
I have more than a million ID and I am sure that when or shortly after is does finely revalue I will be wealthy. Now if I have one million or more in value of a world traded currency, then my main job will be to keep as much of it as possible. Money does talk, even to this day. I already have had an account with a bank which does offer offshore accounts. My ID was bought as an investment not income, although I do not believe that the tax man will look at it that way. Fine, I will wire around them. Bankers looking to make some money on your wealth can help you in many ways, like favorable exchange rates, and accounts in company names instead of your own. Hell I can live a good life on just the interest alone and still pay off what I want in good time.
suzanne please contact me if u are in australia at jbutch@iprimus.com.au thanks we need to talk about cashing in in australia regards john
Nice blog, I found you while searching on AOL. Does anyone know where to find a voip download? I really would like to get started using a voip service.