Jump to content
House Price Crash Forum
dom

Iraqi Dinar

Recommended Posts

Seems the Internet is full of dinar merchants. One million dinars can be purchased for about £400, 2800 to the £!!! Bank of Iraq base rate 12%

Will this currency ever be worth anything again in 5-10-20 years or will the dollar replace it? Is the new Dinar part of the US grand plan?

Discuss.

Share this post


Link to post
Share on other sites

Simple

1980s 1 dinar = 3.25 USD

2002 1 dinar = 0.33 USD

2005 1 dinar = 0.0007 USD

So by the cyclical things of econmies, the ONLY WAY IS UP

HOWEVER you need to look at time scales. Iraqi dinar may take a long time before it floats, and then for it to recover to previous highs. By then your notes might have melted away. Open a Iraqui bank account might be a better idea.

After WW2 the deutsches mark was worthless, but now 50 years on its worth a lot. (well before the Euro came along) Thats the logic behind it. However, the deutsches mark was freely trading straight after the defeat of hitler i believe. So thats another differance

Bull points -

Maybe large gains

Iraq has large oil reserves

Oil demand globably increasing

Price of oil increasing

Bear points -

Difficult to sell - banks not accepting currency

No timescale for currency to trade on forex

Some experts say it is not an investment but a gamble (better to buy gold?)

Counterfeit notes risk

Iraq still plagued by civil unrest

Share this post


Link to post
Share on other sites

Iraq has the 2nd largest natural gas reserve in the World - this in addition to the oil.

The Iraqi people are a very intelligent race - full of scientists etc.

The new Iraqi Dinar is almost impossible to counterfeit - it is made by a UK Company and has all of the latest security measures (water marks etc).

Iraq has observer status at the WTO - it has to be a full member within 5 year of getting observer status, so only about 2 years until it has to be a full member. Full membership requires an activly traded currency on FOREX.

Iraq now has a democratic government.

I am convinced that in 15 years time the dinar will back to its levels from the early 80's. My advice is to buy as much as you can afford (mixed notes). Treat it as your highest risk investment, so only buy if you have space cash.

Place the dinars in a plastic wallet in your safe and then forget all about them until at least 2020.

astos

Share this post


Link to post
Share on other sites

how did you come accross the dinar? (asking anyone on here)

Lots of people are making money acting as the middle men and stirring up the excitement of the dinar

e.g.

Ebay seller sells information on "how to make the most of this once in a life time opportunity to get rich"

(you only find out about the dinar after paying)

then theres the people who sell the dinar to you - they make something like 20-30% profit -

and then theres the people who talk down the dinar, and selling the information on ebay about the pitfalls.

Excellent business model they got here. Create excitement by selling a dream, and then provide the product to this market.

De La Rue who make the iraqi dinar in the UK, hampshire i think, have recently reported record profits - they are making a bunce :o

Share this post


Link to post
Share on other sites

So by the above currency values, if the dinar returns to 1980's level - say in 10 years time, then:

£1000 invested now at 2005 dinar rates against the dollar will = approximately 8 million £.

Dont want to risk that much <_<

Think i will go for £100 -> only £800,000.

Still a very attractive odds if u ask me!

B)

Share this post


Link to post
Share on other sites
Guest Bart of Darkness
However, the deutsches mark was freely trading straight after the defeat of hitler

The background behind this is quite interesting.

The German mark was introduced on 21 June 1948 by the Western Allies (the USA, the United Kingdom and France). The old Reichsmark and Rentenmark were exchanged for the new currency at a rate of 1 Deutsche Mark = 10 Reichsmark, and each person received 40 Deutsche Mark.

http://en.wikipedia.org/wiki/Deutschemark#History

This action so angered the Russians that it precipitated the Berlin Blockade.

Share this post


Link to post
Share on other sites

I think investing in the Iraqi dinar is unlikely to make anyone rich.

It's interesting that it was valued so highly in the 70s/80s before the Iran/Iraq war.

Seems like it was almost a stronger currency than the British Pound.

There is no reason to think that it will be heading back to those heights

in the near future, for one thing it's a completely different currency.

The instability in Iraq as well as escalating war in the region doesn't generally

cause fiat currencies rocketing in value.

Share this post


Link to post
Share on other sites
Guest Bart of Darkness

Isn't there a possibility that they may simply replace the dinar with the "New dinar" at some point, in much the same way as the Reichsmark vanished into history.

Share this post


Link to post
Share on other sites

ok today is 1st AUG 2006

assuming this forum is around in 2020,

I have 200,000 iraqi dinar (about £100 worth)

I ll let you know how i do ;)

Interesting idea and good luck.

Imagine all the BTL properties you can buy in the great crash of 2021 :blink:

ps. I will be doing my Dinar research this week :P

Share this post


Link to post
Share on other sites

I looked into this a few months back and it all looks quite reasoned and viable as long as you are willing to wait a decade or two ...... except for one fatal flaw ...... when Iraq does get back on its feet, the currency will no doubt be re-issued and the notes you bought many years ago will be worth next to nothing (like they are today!)

Share this post


Link to post
Share on other sites

I looked into this a few months back and it all looks quite reasoned and viable as long as you are willing to wait a decade or two ...... except for one fatal flaw ...... when Iraq does get back on its feet, the currency will no doubt be re-issued and the notes you bought many years ago will be worth next to nothing (like they are today!)

Thats why you should open an Iraqi bank account and deposit your £'s / $'s there instead.

Either way - whether it reaches pre 1980's level is irrelevant. The point is that it WILL increase significantly. Even if it reaches just 50% of its 1980's levels, £100 invested = £400,000.

Id call this a low risk punt - with massive potential reward.

Edited by Rikk03

Share this post


Link to post
Share on other sites

That's why you should open an Iraqi bank account and deposit your £'s / $'s there instead.

Either way - whether it reaches pre 1980's level is irrelevant. The point is that it WILL increase significantly. Even if it reaches just 50% of its 1980's levels, £100 invested = £400,000.

Id call this a low risk punt - with massive potential reward.

How do you go about opening an Iraqi BA?

Share this post


Link to post
Share on other sites

I looked into this a few months back and it all looks quite reasoned and viable as long as you are willing to wait a decade or two ...... except for one fatal flaw ...... when Iraq does get back on its feet, the currency will no doubt be re-issued and the notes you bought many years ago will be worth next to nothing (like they are today!)

I have been researching this and there is another issue, which is already been proposed and discussed by Iraq.

They are thinking of adjusting the currency value to remove 3 0's (zero's) so that the value is more inline with the dollar. If this does result in a re-issue of new currency then all the speculators that have bought up the exising post-2003 dinar will be stuffed.

And looking at the history, there no point in saying if it returns to previous exchange rates pre-war, because it is not the same currency. The strengthening of the Dinar needs to be looked at on its own potential, not by referencing their previous currency (saddam dinar).

Its a massively risky bet, and probably only worth doing if you have some spare MEW as this is risk free eh!!! :ph34r::lol:

AFP

Share this post


Link to post
Share on other sites

Id call this a low risk punt - with massive potential reward.

I wouldn't, I'd call this a very high risk bet. And like all bets with 4000:1 odds you are very very likely to loose your stake.

However, there's nothing wrong with betting provided you can afford to loose your money, so as long as you accept this will almost certainly come to nothing then why not.

(Just don't go planning to retire on the proceeds).

Edited by Voice of Reason

Share this post


Link to post
Share on other sites

As I spoke with polish soldiers who were enough unlucky to serve there, Iraqi resistance is visiting Kuwait sometimes to blown a pipes, and whole local population wants strongly death to Coalition.

I wouldn't bet on new Iraq dinar than.

Share this post


Link to post
Share on other sites

Interesting article -

http://www.timesonline.co.uk/tol/news/worl...icle3054267.ece

I've noticed ebay dealing in this currency is picking up. looking at highest bid I reckon nominal prices are up 20% on this time last year.

More to do with falling western currencies I fear.

Remember it's just a punt!

Edited by dom

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.