Dinarland Highlights - 9.22.16
POLICY AND LAWS ARE IMPORTANT FOR THE SUSTAINABLE IRAQ, THAT’S A FACT...WHAT IS MORE IMPORTANT IS THE CONNECTION IRAQ CAN MAKE TO THE EXTERNAL FINANCIAL HUB. NOW DOES IT MATTER IF THE DINAR IS ELECTRONIC OR IN PAPER FORM? NO NOT AT ALL, BECAUSE ALL TRANSACTIONS ARE SETTLED DIGITALLY. NO ONE IS CHARGED WITH THE JOB OF MOVING CURRENCY FROM COUNTRY TO COUNTRY IN A WHEEL BARROW IT IS ALL DONE ELECTRONICALLY. WHEN IRAQ TALKS ABOUT THE E-DINAR THEY ARE TALKING ABOUT MAKING A CONNECTION TO THE EXTERNAL HUB. ...THE DINAR WILL TRADE...IT IS A FACT AND IS NECESSARY ACCORDING TO THE 2010 REFORMS, AS AN EMERGING MARKET THERE IS A PLACE FOR IRAQ ALONG WITH EVERYONE ELSE. THE WORLD DOES NOT NEED THE DINAR FOR ANYTHING BECAUSE THAT IS JUST HOW THE WORLD WORKS. THE DINAR WILL NOT BE THE SAVING GRACE FOR THE PLANET...
...PLEASE STOP WRITING AND SAYING...IRAQ HAS A WORTHLESS CURRENCY. THE CURRENCY IS ONLY WORTHLESS WHEN COMPARED TO THE DOLLAR. BUT SINCE THE DINAR DOES NOT CROSS BORDERS WHEN YOU SEE IRAQ BUYING THIS OR PAYING THAT THEY ARE DOING IT WITH USD. THE QI CARDS THAT YOU ALL TALK ABOUT PLEASE STOP SAYING THE CARDS ARE LOADED WITH 3$ OR 5$ BECAUSE THAT IS NOT POSSIBLE BECAUSE THE QI CARDS ARE DOMESTIC TO IRAQ! WHY ON EARTH WOULD THEY HAVE A FOREIGN EXCHANGE RATE INSIDE THEIR BORDERS? FOREIGN EXCHANGE RATES ONLY APPLY WHEN YOU CROSS BORDERS.
UNDERSTAND THAT IRAQ IS DOING NOTHING SPECIAL, IT IS NOT A WHITE ELEPHANT OR YELLOW UNICORN IT IS SIMPLY JUST ANOTHER EMERGING MARKET AND AS SUCH IT WILL NEED TO REACT AS ALL OTHER MARKETS DO AND THAT WILL BE TO TRADE INTERNATIONALLY. I CAN NOT SPEAK TO RATE AND NO ONE CAN…AND JUST BY READING HOW ALL THE OTHER COUNTRIES DROPPED THEIR ZEROS AND DEALT WITH REVALUATIONS I’M SURE IRAQ WILL FOLLOW SUIT. ...SIT TIGHT... THE LONG WAIT IS ALMOST OVER AND FOR ALL INTENTS AND PURPOSES THE CLOCK TO THE NEW SYSTEM STARTED IN DECEMBER OF 2015 WHEN THE CODE OF REFORMS WAS FINALLY ACTIVATED AND ALL EMERGING MARKETS HAVE BEEN FAST TRACKING SINCE THEN. I HAVE MUCH MORE TO SHARE WITH YOU...FOR NOW DIGEST ALL THAT I GAVE YOU... SMILE AND CALM DOWN. IT IS ALL GOOD.
As far as who "pays" for the increase, we can't look at currency exchange as a finite transaction, a "one-and-done" if you will. Rather, it's an ongoing transaction...
1. You bought the dinar at a low rate (this is the part of investment where the investor makes their money....on the low buy)
2. The value grows (this is driven by the market and no transaction happens in this step)
3. You sell your dinar (you get the gain and the exchanging bank deposits the USD in your account after verifying)
4. The exchanging bank exchanges the dinar with the dealer (thus balancing their "paying" for the initial exchange)
5. The dealer resells the dinar at the current rate (thus balancing their "paying" for the exchange bank's exchange)
6. The new buyer of the dinar ultimately "paid" for your initial exchange but they also hold the dinar at the new value and can exchange it again as the rate increases. Once they do, they balance what they "paid" for their purchase plus gained a bit since they chose to trade...and on and on it goes from here.
So, in summary, the "paying" for your exchange is passed on and the only entity that would ultimately lose money out of pocket per se would be the investor who was holding the dinar at the time if it would crash in value. This general rule applies in all levels of investment -- buying low and selling high. We just get the benefit of the biggest jump in the difference of the two! To that point, I personally plan on initially exchanging a certain percentage of my dinar and holding on to the remaining with the hopes of an even greater gain further down the road.
Iraqi Dinar Revaluation and Global Currency Reset News | Dinar Chronicles
Courtesy of Dinar Guru