Iraqi Dinar

[bigjarofwasps]

The New Iraq Dinar, Iraq's official currency, is now at an historic low.

The value of the new Iraqi Dinar, currently at around 1471 Dinar to the dollar, had fallen to between 3500 and 4000 against the dollar before the end of combat operations in July, 2003.

The United States has pledged almost a trillion dollars, military and civilian support, debt relief and economic ties that will give Iraq the capability to develop its potential as a $70 billion economy, one of the largest in the region. Giving Iraq the opportunity to establish itself as a sovereign nation, economically and socially, will bring stability to the region, normalize oil prices as well as bringing peace and prosperity to the people of Iraq.

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The New Iraq Dinar, Iraq's official currency, is now at an historic low.

The value of the new Iraqi Dinar, currently at around 1471 Dinar to the dollar, had fallen to between 3500 and 4000 against the dollar before the end of combat operations in July, 2003.

The United States has pledged almost a trillion dollars, military and civilian support, debt relief and economic ties that will give Iraq the capability to develop its potential as a $70 billion economy, one of the largest in the region. Giving Iraq the opportunity to establish itself as a sovereign nation, economically and socially, will bring stability to the region, normalize oil prices as well as bringing peace and prosperity to the people of Iraq.

Iraq is in a unique position in history. A vibrant country with a highly educated population of just over 22 million people, Iraq possesses oil reserves of over $10 trillion at the current market value. Released from the repressive regime of Saddam Hussein, Iraq has the potential to become a $70 billion dollar a year economy, with one of the largest oil and gas reserves in the world, second only to Saudi Arabia.

Major industrial nations from around the world are present in Iraq, either as military or civilian support, to assist Iraq in its desire to establish a safe, secure and economically sound country.

Trillions of dollars have already been pledged for repair and restoration. Reconstruction of the infrastructure including power, water, road and highways, IT and phone systems, and health and human services, has already begun.

Making all the right moves.

Regional Agreements.

Iraq is quickly establishing beneficial relationships in an effort to export its oil and gas reserves through already established pipelines in its neighboring countries.

Monetary System.

The monetary system established by the new government encourages foreign investment, a key to develop a strong economy.

Central Bank.

The Central Bank of Iraq is an independent agency, not affected by the political parties of the many factions in Iraq.

Stock Market.

A new stock market opened recently with record trading volumes pushing stock prices drastically upwards for the 27 firms listed, with over 2 billion shares changing hands in only 6 trading sessions.

Bond Market.

The Central Bank of Iraq offered its first treasury bonds on July 18th, with broad participation of the private commercial banks of Iraq.

Real Estate Market.

Real estate in Iraq is booming, largely because of the severely depressed prices due to the restrictive policies of the old regime. With money flowing into Iraq, citizens are now buying houses in neighborhoods generally reserved for government officials.

Oil Production.

With the new government firmly in place, the reconstruction of the infrastructure including rebuilding many of the major oil fields is steadily going forward. Iraq has signed tentative agreements with international oil companies to exploit its vast oil reserves.

It is believed that within 1 to 2 years the oils fields will be producing sufficient oil to build a foundation for revenue and within 5 to 10 years Iraq will return to its place in the world economically, socially and politically.

[bigjarofwasps]

This is on Ebay.......

Do you want the opportunity to get rid of that millstone around your neck, called the MORTGAGE. or do you want to spend the next twenty year,s paying for it.

Between October 25th 2003 and January 15th 2004 the coalition provisional Authority issued the new Iraqi dinar printed by De La Rue using modern anti-forgery techniques to "create a single unified currency that is used throughout all of Iraq.

The new banknotes consisted of six denominations, 50, 250, 1,000, 5,000, 10,000, 25,000.

The notes were similar in design to notes issued by the CBI in the 1970s and 1980s.

A 500 dinar note was issued a year later, in October 2004.

The Central Bank of Iraq decided on what the new currency would look like. The De La Rue based in England was the company chosen to print the new Dinar.This company printed the Dinar used by Iraq prior to the Saddam Dinar and actually still had some of the old printing plates which were updated for the new money.

De La Rue used 5 factories around the world to print the new Dinar- in England, Sri Lanka, Kenya, Malta and Germany. The Spanish Government generously donated resources too- printing the 250 Dinar notes at its print works in Spain.

DO NOT LET THIS SLIP BY

The new currency was unveiled during a press conference in October the 4th 2003.The original order of 2 BILLION notes filled more than twenty-five 747 aeroplane.

The new Iraq Dinar is now the official currency of the people of Iraq.

Baghdad-in Drawers and footlockers, servicemembers in Iraq are banking on the future by hoarding millions of Iraq Dinars.

Many suspect the dinars precipitous drop in the past decade could mean a Huge rebound ahead. Each dinar was once worth a few Dollars.

LEST WE FORGET

In 1991, the Kuwaiti dinars value fell from over $3.00 to near worthlessness. It rapidly shot back after liberation.

Anyone who aquired Kuwait dinars at the low point, was soon able to cash in for many hundreds of times the purchase price.

It all happened so fast, most of the world never had a chance at getting any.

Circumstances are different, and its not happening that quickly in Iraq. But there is another difference, too.

THIS TIME, YOU KNOW ABOUT IT.

When people fear for there future, they invest in gold, jewelry and coins. When people feel confident about the future, they buy real estate. Property prices have skyrocked across Iraq.

If you pass on this...,for the rest of your life you,d wish you

NEVER KNEW ABOUT IT.

Iraq,s currency- the Dinar= the next powerful investment.

Iraq has been granted 32 billion dollars in dept relief. Opening international Trade has increased the wages to Iraqis 25 million people who have pent up demand for goods and services. An estimated $33 billion has already been collected for rebuilding Iraq.

Coca-cola, Chevron, Texaco, and more are investing, wages are triple those paid elsewhere in the Middle East- Wall Street Journal. More Iraqis are holding onto there dinar as a savings vehicle after years of hoarding dollars.

No one doubts Iraqis potential for enormous production, Only 17 of its 80 known oil fields have been developed, and the costs of new production are among the worlds lowest.

Iraq has vast areas of fertile land and the most precious commodity of all in the Middle East,WATER. With the rejuvenation of the Tigris and Euphrates River, Iraqs agriculture sector may once again be the Breadbasket of the Middle East.

There are NOT Many sure things left in life

BUT if you pass on this,

YOU WILL REGRET IT ONE DAY

Cameras and reporters do not lie, but they do not always give a full perspective. Political brinkmanship devoid of context breeds panic. Bombs and blood sell copy, but do not accurately reflect Iraq. Political milestones give a glimpse of the often-unreported determination that Iraqis and long-time visitors see daily. Bombings and body bags are tragic. But they do not reflect failure. Rather, they represent the sacrifice that both the Iraqis and coalition allies have made for security and democracy. The referendum,refugee return, real estate and investment show much more accurately--and objectively--Iraqis steady progress.

US authorities estimate Iraqis have imported one million cars and trucks and more than 500,000 satellite dishes since fighting ended.

Iraq is coming out of a 35 year oppression by a regime that practised the politics of terror and thuggery. Some time must pass before the countrys "mental health" bounces back.

THIS IS THE TIME TO BUY.

While as many as one in six Iraqis fled their nation under Saddam now hundreds of thousands have returned, real estate values are skyrocketing, major construction is up, the value of the dinar, Iraqs currency, is steady, investment is rising. All of these signs point to a growing confidence by Iraqis thay there nation has a future and that its wealth will grow and spread. Thats good news worth heralding.

Iraq Development Program-Iraq deemed worlds greatest oil prospect.

Iraq is the greatest oil prospect in the world, with huge undeveloped oil fields and enough reserves to meet the worlds needs for many years. Using modern equipment and technology. Iraqs oil production could exceed output from Saudi Arabia. Iraq has the worlds second largest proven oil reserves, with 113 billion barrels. However the true amount of reserves may be closer to 300 billion barrels because the countrys oil fields have not been thoroughly explored.The supplies, if developed could help meet the worlds increasing thirst for oil.Global oil consumption is projected to rise to 119 million barrels a day by 2025, up from about 80 million now, this is a tremendous opportunity for the entire world. Iraqs oil reserves are six times greater than the reserves of the Caspian Sea and four times greater than USA reserves, We need that Iraq oil. The world needs it.

Iraq is now producing about 2 million barrels of oil a day. But that number could rise to 10 million if Western oil companies were allowed to develop the countrys vast reserves. The giant oil fields of Saudi Arabia produce between 9 and 10 million barrels of oil a day.

There is no reason why Iraq can,t be in that category.

Since Saudi Arabia is being pushed to its production limits by the demand from the US and now China and India, the next logical choice is Iraq. With the USA rebuilding Iraqs oil infrastructure it seems like a good possibility Iraq will be a wealthy country again in the not so distant future.

You are buying qty 20x 5,000 note,s

Only ?53.30

100,000 Dinar

The possible increase in value of your 100,000 dinar

Iraq Dinar ? UK

? 0.01 ? 1,000.00

? 0.05 ? 5,000.00

? 0.10 ? 10,000.00

? 0.50 ? 50,000.00

? 0.75 ? 75,000.00

? 1.00 ? 100,000.00

If the dinar gets back to its 1990s value $3

?1.70 ? 170,000.00

There are NOT many sure things left in life, BUT if you pass on this action,

You will regret it one day.

[bigjarofwasps]

HSBC closes in on Iraqi bank deal

Basic banking services are available in Iraq

HSBC is close to buying a majority stake in Iraqi bank Dar Es Salaam Investment bank, according to one of the global bank's senior executives.

HSBC is in talks to buy a 70% stake in the Iraqi lender, which has 14 branches across Iraq and employs 450 staff.

HSBC was one of three foreign banks given permission last year to start trading in Iraq.

But high levels of violence have so far hindered the development of the country's banking system.

Basic services

HSBC hopes to buy the company from its main shareholder, the Khudairy family.

David Hodgkinson, chief executive of HSBC's Middle East operation, said the bank was "very close" to concluding an agreement.

The banking system in Iraq is still in its fairly early stages of development

David Hodgkinson, HSBC

He said HSBC hoped to develop the bank's services by investing in computerised payment systems and cash machines.

"I think because the banking system in Iraq is still in its fairly early stages of development, it will be a question of putting in place fundamental services," he told Reuters.

Foreign banks were banned from Iraq under Saddam Hussein although a number of private banks were licensed to operate.

After Saddam Hussein was overthrown, HSBC, Standard Chartered and National Bank of Kuwait were licensed to operate in Iraq.

Any deal would have to be approved by the Central Bank of Iraq as well as the board of Dar Es Salaam.

With operations in Bahrain, Jordan, Kuwait, Lebanon, Oman and Qatar and the Palestine Authority, HSBC claims to be the largest international banking group operating in the Middle East.

[bigjarofwasps]

A number of people have begun touting so-called "investment" opportunities in the Iraq Dinar as a "sure way" to make a lot of money with little or no risk. Many of our clients have asked our opinion on the legitimacy of this.

Is "investing" in the Iraq Dinar a sure way to profit? We don't think so. In our opinion, buying the Iraq Dinar is a high risk investment with a poor outlook.

A Little History

The official rate of the old Iraq Dinar, $3.22 USD (U.S. Dollars), was set in 1982 by Saddam Hussein. The old Iraq Dinar could not be freely traded, so this rate was never tested or upheld on the world market.

The current Iraq Dinar (IQD) was introduced between October 2003 and January 2004 by the Coalition Provisional Authority in close consultation with financial experts from Iraq and the international community. The IQD is currently valued at a little less than seven hundredths of a US cent. (1 USD = 1460 IQD). The old "Saddam" Dinar has no current value and is worth only what a collector is willing to pay for it.

What's Happening Now?

The IQD is not freely traded, and is not being used in any significant international transactions. We are unaware of any official bank or foreign exchange office outside of the middle east that will exchange the IQD.

The IQD trades on a very small, tightly controlled exchange. The total volume of IQD traded by the Central Bank of Iraq is in the thousands of dollars, compared to the $1,900 billion dollars traded on the Foreign exchange market every day. This small number of trades makes the IQD's value effectively immaterial.

The Central Bank of Iraq's stated objective is not to promote the free trade of IQD, as is the case in a true free market economy, but rather to keep the value of the IQD stable. The only way the Bank can ensure the semblance of stability is by tightly controlling the exchange of IQD on the market, and by ensuring that the currency cannot freely trade on the open market. They evidently fear that open trading of the IQD would lead to a rout in which the value of the IQD would sink to practically nothing.

Consider the situation. Why tightly control the trading of the IQD if it is likely to appreciate in value? If the value of the IQD were to surge, this could be held out as evidence of a surge of confidence in Iraq's economy. So why not open the IQD to free trading? Why would this be done unless the Iraqi Central Bank itself feels that the IQD would decline in value in a free market?

A Snapshot of Iraq Today

The current situation in Iraq is pretty grim:

Over a decade of international economic sanctions and a devastating war has left the infrastructure in tatters

$125 billion of external debt

Millions of dollars in post-war debt

No stable government

Insurgency steadily on the rise

Oil facilities and pipelines are sabotaged regularly

Many (including the former Prime Minister of Iraq) predict out-and-out civil war

These aren't the kind of conditions typically conducive to the creation of booming economies. More to the point -- a 450,000% increase in the value of the IQD (as predicted by some of its promoters) seems ridiculous in the face of these challenges.

But Surely There's Oil Under Those Dunes?

A lot of the hype over the IQD centers around Iraq's vast oil reserves and their supposed economic value. The oil market is extremely unpredictable. An economy based on oil alone (oil makes up 95% of Iraq's foreign exchange earnings), will mirror that unpredictability. Let's look at a real-world example: Venezuela.

Oil accounts for 80% of Venezuela's national exports and 50% of its government revenues. The country is one of the world's top five oil producers. In the last four years, Venezuela has experienced intense political instability, including an oil strike and an attempted coup d'?tat. The resulting economic chaos has led to the extreme devaluation of the Venezuelan Bolivar -- today, it is worth only about a third of its US Dollar value from January 2000, and only about a quarter of its Euro value from January 2000.

Investing in a country's currency is tantamount to investing in that country's economy as a whole, not in any single commodity. Investing in the Iraq Dinar is not the same as investing in Iraq's oil.

But What About Kuwait?

Promoters of the IQD like to compare Iraq now to post-Gulf War Kuwait -- but this is comparing apples to oranges.

Before the Gulf War, Kuwait had a stable government and its foreign investments generated more income for its economy than its oil did. After the war, despite losing a third of its pre-war investment portfolio (over $100 billion USD), Kuwait still had a solvent economy, a stable government, and an intact infrastructure. Of course its currency increased.

In comparison, Iraq entered the war with a $125 billion USD debt, has almost no infrastructure, no stable government, and no other foreign income except its oil -- the vulnerability and unpredictability of which we have already pointed out. The outlook for its economy and the IQD is grim for the foreseeable future.

In late 2004, the US was successful in convincing some foreign creditors to "forgive" some of Iraq's debt. However, debt forgiveness is seldom a blessing, and generally comes at a very heavy price. Other countries whose foreign debts have been "forgiven" have found it nearly impossible to generate any foreign investment afterwards. Think about it: how would you feel about investing in Iraq again if you lost your entire investment (i.e. you "forgave" it) last time?

If it Sounds Too Good to be True...

Ask yourself one question: if the Iraq Dinar is such a hot commodity, why would anyone in the know be willing to sell it to you? If you thought that the IQD was going to multiply in worth by hundreds of thousands of percent, would you sell it? Of course not -- you'd be too busy buying as much of it as you could.

But if you thought that the IQD was going to go down in value over time, well, then you might start trying to convince people that it was a "great deal" so that you could get rid of all of yours before it nose dives.

Remember the old saying: if it sounds too good to be true, it probably is. Be careful!