Imagine a coin from a distant land. Once obtained, a short period of time is expected to achieve an ROI of more than 100.000%. It allows you to move away from the investment arena and live the life you’ve always dreamed of.
That would be good, wouldn’t it?
The currency we are going to look at is the Iraqi Dinar, also known as IQD.
First of all, Iraq has potential! Potential pockets! Annual GDP change of 8.6% in 2011, 8.4% in 2012, 10.2% in 2013 and an expected report of similar figures for the next five years.
While most world economies are in decline, Iraq is clearly not.
Why are we seeing 5 million informed investors buying Iraqi Dinar? Do they know something we don’t?
The gist of the deal is simple, those driving Dinar’s sales say that the Iraqi dinar is ridiculously undervalued and the only option is to complete a “revaluation” so that those who maintain the dinar now will not be far off. the future wakes up and realizes that they have a substantial profit of $100,000 for every $1 investment.
Some in the Dinar community expect less and others expect more
Many of us know that Iraq has a lot of potential and is excellent, despite the constant turmoil in everyday life. A good example of how the economy is doing was when Iraq had its first IPO since the Saddam Hussein era, an Iraqi telecommunications company called Asiacell, which ended up being the largest listing of IPOs in the Middle East and North Africa since the listing of Saudi Arabia Mining in 2008 on the Saudi Stock Exchange.
Even if you take oil and oil prices into account, Iraq currently ranks fifth in oil reserves. But it gets even better: much of Iraq hasn’t even been explored yet! Especially if you consider new technologies for exploration, the currently documented reserves will definitely be higher.
As you can clearly see, Iraq is a success waiting to happen.
My prediction is that we will see an Iraqi dinar denomination in which three zeros will be excluded from the currency, meaning that the current legal tender will be canceled after a newly issued legal tender for, say, 90 days.
For example, you fill up your car today for a matter of 25,000 dinars, equivalent to $ 21.47, and as soon as the denomination takes place, you have freshly minted bills, say 20 and 5 dinars. You return to the same place to buy your gas, and instead of using 25,000 dinars, you pay with the new proposal of 25 dinars. This means that the purchasing power is exactly the same, no less, no more, no winners or losers. Meanwhile, the exchange rate for the dollar remains the same 25 dinars, you get 21.47 dollars. I want to take a moment to look at what happened in late 2003 and early 2004, when the provincial coalition government issued the new Iraqi dinar (currently in circulation) in exchange for the old Iraqi dinar with Saddam’s face on it. .
From October 15, 2003 to January 15, 2004, everyone in Iraq could switch to the new legal course, those outside Iraq were not there. After the 15th of January passed, those who maintain the old proposal could no longer change and the proposal is null and void.
The risk currency speculators face is that Iraq may rename and, given its history, even make a switch in the country, leaving only those who cannot reach Iraq with a worthless pile of coins. I think you should take this very seriously if you consider whether the Provincial Coalition Authority (America, Great Britain, etc.) did this in power, now that Iraq has full power, it is well within the rights to do so the same and probably will too.
Some may say: “If Iraq is considering such action, it is certainly a moral duty to stop selling to foreign buyers.” Unfortunately, the central bank of Iraq’s duty is to sell as much of its currency as possible to the highest bidder.
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Article 32 of the currency law gives them the right to remove the three zeros and allow only one exchange in the country.
Iraq still has more than 71 tons of physical notes alone, and with a revaluation it would be worth the $11 trillion, which even if you doubled the amount of the US dollar
Dollars in circulation would leave you with only 25% of the IQD (M2).
It is also backward that Iraq would use oil as an exchange rate / inflationary hedge for the Iraqi currency because the reality is that oil is burned, sold and used, also known as depleted. There is no random vault to store oil because it must be constantly sold or used, meaning that the currency is overvalued every time a barrel goes through this process.
Conclusion
For many dinar holders outside of Iraq, the future remains bleak, contrary to what dinar delights will tell you. The fact that the numbers don’t add up should be enough to say that this get-rich-quick fallacy is just a mistake.