Dinarland Highlights – 4.18.21
“GETTING INTO IRAQ HAS NOW NEVER BEEN EASIER“
This is part of the plan to re-open the country to international status and allow a free flow of people and capital in and out of the county. This is what we need to see.
“MEANING OF CURRENCY REVALUATION AND WHAT WILL HAPPEN IF IRAQ TAKES THIS PATH”
“The act of altering the value of a nation’s currency relative to other currencies is typically influenced by market pressures. The pressure is now.”
The pressure is not going to end until the CBI completes the project to delete the zeros and the revaluation of the dinar against the dollar.
Let’s do a thought experiment. Let’s say you live in Iraq and you have a certain amount of currency. They are not going to gain like you and I are. Because we bought with U.S. dollars. That means we bought it at a tenth of a penny. Well their economy is set up at a tenth of a penny. In other words they didn’t pay anything. The currency was just given to them. If you go buy a coke at a tenth of a penny [Or 1450 dinars] and the value goes up because there’s a revaluation or they just simply corrected their currency – they’re just going to move the decimal over. Now it’s just a dollar. So now you have the currency that’s a dollar and a coke that has the price tag that’s a dollar…There’s going to be a little bit of gain for them but not like you and I are going to get because we bought with the U.S. dollar. That’s a principle you have to understand.
What if somebody out there put an article out and says, ‘hey we’re going to revalue next month.‘ What do you think the population in Iraq is going to do? Do you think they go out and spend the dinars that they have? No! They’ll squirrel it away. It would literally shut their economy down. That’s why I tell people you’re not going to find a magical article coming out of Iraq saying we’re going to revalue in a month or two months or a week…Iraq is not telling everybody we’re going to add a ton of value to this – it would ruin the supply times velocity of the Iraqi dinar.
There’s obviously a lot of pressure to have the rate change take place in Iraq and it’s coming from all angles. Having said that, these reforms are doing exactly what they were supposed to do – help get Iraq back on their feet. I know they were talking it’s going to take three to five year. I’m not seeing that. They’re actually moving at a much faster pace…
Obviously the more they grow the private sector the better the economy rebounds. It it strengthen the currency…building up your foreign reserves assets helps the currency. The GDP of your economy helps grow the currency. We won’t necessarily need to have some RI or RV called out. There could be other things that happen that affect the value…that does not mean there won’t be an RI or RV called. That still might happen but there are other things we can be focused on that help our situation…
…we have spent the last eight plus years telling members the truth of how or if the dinar can ever appreciate in value. It’s based on sound principles and the economic success of Iraq. There is no magic wand or overnight RV. There is no significant overnight RV, it’s not how monetary policy works.
Iraqi Dinar Revaluation and Global Currency Reset News | Dinar Chronicles
Courtesy of Dinar Guru
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