Iraqi Dinar Investments May Be Your Best Retirement Option With Impending Revalue of Iraq Free Dinar
December 20, 2009
The Iraqi government has come a long way since the overthrow of Saddam back in 2003. Sadly, there si a long way to go before Iraq and the infrastructure is back to what it was before U.S. invasion. I have been following progress since 2003 and have been an investor in Iraq ever since. Given the current economic collapse worldwide, what has gotten the attention of the investment world is the stability of the Iraqi Dinar over the past six years.
As one of the main goals announced early on, Iraq has accomplished the stability of currency concerns, as well as they have managed to control inflation which was also a goal set by Iraqi leaders. We only hear about the negatives in Iraq, terrorist attacks, sectarian killing, no electricity or adequate fuel for vehicles or generators to power homes and businesses. It appears only the negative news was reported by the major media outlets given the liberal slant well known by everyone given the press loved attacking the Bush administration.
Politics as usual, both here in the U.S. as well as in Iraq. Politics is the same throughout the world, and given the U.S. is forcing democracy upon Iraq, it only reasons that the same dirty politics and party divisions would be adopted as well by the Iraqi Parliament. All the delays we have witnessed are all caused by the sectarian divide between Shiite’s, Sunni’s and Kurd’s which represent the main powers in Iraq. Given the hatred between the sectarian parties, similar to the hatred between the democrats and republicans, no wonder no one can agree on important issues in Iraq.
What we see now after six years is progress towards partial agreement between parties, not nearly what would be hoped given the wealth of Iraq, and the need to help its citizens which are mostly poor people who are desperate for change. If this sectarian divide did not exist, Iraq would be well on its way to being the wealthiest middle east country by now. Sadly, these parties have wasted years fighting over who gets what with regards to oil proceeds. Even after parties agreed to share equally, it was not enough for some.
With elections scheduled for January 2010, there was even a delay on the election law which was held up for months leading up to the second most important election in Iraq. Will it go off as planned, it finally looks like it is passed, and this is one of the last issues that needed to be resolved before any hope of a revaluation or restoration of the dinars value.
For those who have already invested in the Iraqi Dinar from the start, they have already seen over 50% return on investment, but if you are like most who follow this closely, 50% is a pittance to what the potential will be if you can just remain patient. With stock market collapse, markets rising and falling daily, housing collapse, banking collapse, we have seen it all over the past year, so considering the small amount needed for a potential retirement windfall, everyone should be researching the Iraqi Dinar for their retirement plan.
As we approach the end of the year with election law now passed, much of Iraq’s former debt forgiven, oil law passed and major companies lining up for oil contracts, I know from my contacts that Iraq has the largest oil reserves in the world. They have not been confirmed yet, but when they are, which will be early next year given the recent progress, there is no way the Iraqi Dinar will remain at these artificially low rates. With much of the infrastructure in oil and electricity still far from complete, Iraq will need to purchase billions from outside of Iraq, and it will not happen with an artificially depressed current value of the dinar. It must be revalued before these major expenditures begin, so I predict it will happen early next year, perhaps even before the elections given politics as usual of paying for votes. Maliki in not assured the election given so little has been done for the poor voters, so just like in U.S. politics, you can buy an election, so Maliki just may push an interim revaluation awaiting full revaluation when GCC is enacted in middle east with new universal currency. Either way, all it takes is patience.
With current Iraqi Dinar being stable at 1170 for over a year while all other currencies have been fluctuating up and down, mostly down, as with the U.S. dollar now at lowest exchange rates in decades, you cannot ignore the fact the Iraqi Dinar has been rock solid throughout the economic meltdown of banking in U.S. With major press on MSNBC and Erin Burnett and Jim Cramer talking about it for the first time, the secret is out, there are few other investments which could come close the the ultimate potential of the Iraqi Dinar. Of course, never invest what you cannot afford to lose, but if you do decide not to invest in the Iraqi Dinar, just never look back or you may regret it for the rest of your life.
Micheal OSullivan
http://www.Iraqi-Investments.com
Iraq is an extremely wealthy country when you look at their natural resources and potential GDP. The expert consensus is that Iraq has at least the second largest oil reserves and natural gas reserves in the world. There is strong speculation that Iraq actually has the largest oil and natural gas reserves in the world. Additionally, many people don’t realize that oil from Iraq is some of the world’s cheapest oil to drill and refine—the oil is very “rich” and close to the surface with few impurities or hindrances to drilling. Iraq’s cost of production per barrel of oil is minimal compared to other world oil producers. This all means that Iraq’s profit margins on their oil production are some of the highest in the world. Additionally, Iraq has a vast agricultural system and abundant fresh water supplies from the Tigris and Euphrates rivers—Iraq is known as the “Bread Basket of the Middle East.” Moreover, Iraq has a large and traditionally hardworking productive population. The bottom line is that Iraq has staggering wealth in natural resources and tremendous GNP and GDP.
There is NO WAY the country of Iraq is going to be allowed to decay into a state of instability. Iraq is not Somalia, Vietnam or Rwanda — It is a strategic Middle Eastern country with tremendous potential wealth. It is in the best interest of every Western country and most Middle Eastern countries for Iraq to succeed as an independent stable economy and country. No Western or Middle Eastern country is going to stand by while Iraqi’s vast oil reserves and wealth fall under the control of a neighboring rouge country or insurgency—it just won’t happen.
The political and economic powers of the world are doing everything possible to stabilize Iraq and bring their economy in line with the rest of the world as soon as possible—this is in the best interest of all nations. World leaders understand that wealth and prosperity in a country lead to stability and increased productivity—people don’t revolt when their needs are being met and their quality of life is improving. One of the fastest ways to stabilize a country is to increase its wealth and the quality of life for the population as soon as possible. The cost of increasing an entire population’s wealth is much less than the cost of war and widespread instability in the oil-rich nations of the Middle East.
The history of the Iraqi Dinar demonstrates strong potential for growth. At one time, the Iraqi Dinar was worth over 3000 times what it is currently worth, while at the same time oil was selling for approximately $15 per barrel — less than 1/5th of today’s price.
When will the Iraqi Dinar be revalued?
If the value of the Iraqi Dinar increased in value to just the lowest valued currency of the mainstream Middle Eastern countries, it would result in a 260 times increase in value. More simply stated, 1 million Iraqi Dinar purchased for approximately $1200 US dollars today would be worth $260,000 US dollars if the Iraqi Dinar were valued at $.26 US Dollars—the lowest current valuation for a mainstream Middle Eastern country. If the Iraqi Dinar were to reach a value equivalent to its historical rate of $3.20 US dollars per Iraqi Dinar, the value of an approximate $1200 US dollar Iraqi Dinar investment for 1 million Iraqi Dinar would be worth $3,200,000 US Dollars. As a note, the current exchange rate for the Kuwaiti Dinar is $3.44 US dollars for 1 Kuwait Dinar—it would take $3,440,000.00 US Dollars to purchase 1 million Kuwaiti Dinar.
Since its inception in late 2003, the Iraqi Dinar has steadily increased in value—indicating a recovering economy and increase in conversion of natural wealth resources.
The bottom line is that the Iraqi Dinar is currently at an extremely low valuation compared to the US Dollar. The currency has steadily increased in value since inception in late 2003. Iraq is a country with phenomenal wealth potential; and additionally, has the backing and support of the major political and economic powers of the world. There currently seems to be minimal risk that the Iraqi Dinar will decrease in value. The tremendous potential upside return compared to the minimal downside risk seems to make the Iraqi Dinar a compelling investment opportunity worth investigating.
One compelling speculation that may relate to the value increase of the Iraqi Dinar is the actual amount of Iraqi Dinar being held by the United States Treasury Department. A significant increase in the value of the Iraqi Dinar would more than pay for cost of recent US war efforts in the Middle East and greatly alleviate the tremendous debt recently initiated by the US Government. The US Government’s current runaway spending seems to suggest that the US Treasury Department is expecting a massive windfall in the near future that will cover debt. Although this theory seems logical and despite the fact that this theory is parroted by many, this speculation can not be confirmed.
In determining when the Iraqi Dinar will increase in value, all indicators point toward something happening in the near future (next 12 months) if not the very near future (next 3 months). The appreciation of the Iraqi Dinar has been unprecedentedly flat over the past 8 months despite low Iraqi inflation and a weakening US economy and US dollar. The Iraqi economy has been on a continual surge of economic growth for the past couple of years as Iraq has continued to stabilize and rebuild. The news coming out of Iraq from numerous returning military members with various reliable sources indicates a rapid move and increase in valuation occurring prior to, or in conjunction with US troop reductions. Indicators also point to an increase in the Iraqi Dinar exchange rate occurring prior to, or shortly after Iraqi elections. It appears that administratively, the IMF, WTO, and other world financial entities are working in close conjunction with the Iraqi Government to bring Iraq’s financial system online with the rest of the world. The expectation is that the Iraqi Dinar will soon be freely traded through banks worldwide—further accelerating their recovery and economy, and adding to overall stability.
When will the Iraqi Dinar be revalued?
To answer the question of “How” and “How high?” the Iraqi Dinar will revaluate, some speculation is in order. Based on historical precedents, an initial sudden significantly (overnight/over weekend) high revaluation seems very possible. This initial move could be anywhere along the entire spectrum of rumored possibilities from $.10 to $1.49. After this initial revaluation, it seems likely there will be numerous significant incremental increases in valuation over a period of time. This continual increase in value after an initial base valuation will prevent an overwhelming surge on the world financial system. By incrementally increasing the value of the dinar, it will limit the number and amount of Iraqi Dinar exchanges as many investors and currency traders will choose to hold their Iraqi Dinar or purchase more as they anticipate further valuation increases. In other words, a steady increase in the value of the Iraqi Dinar will create a free flowing market as some investors cash-out, others hold on, and others purchase Iraqi Dinar for the first time.
Iraqi Dinar to be revalued?