Iraqi Dinar, USD and War related question!
 

On 18th March 2003, $1 USD was equal to 3250 Iraqi Dinar (IQD) .. On the same day, US attached Iraq and exchange rate became 1 USD = 0.32510 IQD on 19th March 2003 (next day)..

What the fuck this means? After war IQD became more stable/costly? Shouldn't it have fallen more/become less valued? ..

Someone care to explain, please?

Thanks

Today, in case anyone was interested like I was.
1.00 USD = 1,210.50 IQD

Thanks for this :)

Also, does it mean Iraqi currency is more stable today than what it was before war?

How come? :helpme

Brujah you reckon your gonna buy some?

I was thinking about it as a speculative investment but im worried about the change of US government and pulling troops out could restore chaos. Im also worried that Turkish incursions in the north could cause more problems.

I am also thinking to invest in IQD.

About pulling troops, I don't think its gonna happen any time soon. Why would US leave that country alone to be the heaven for terrorists?

Other than that, what you see the future of IQD? How will it go up?

How will it go up?

Well clearly if stability persists then the economy can start to grow again. The currency has already firmed approx 300% since 2003 so i guess thats a good sign but i wonder how much it has firmed since 2005 (in the height of the carnage) - id be interested to see that stat.

All the talk from presidential hopefuls has been about troop withdrawal so that does worry me.

As for now, well obviously the troop surge has worked to an extent. It seems that violence is massively down and if it stays that way I can only see the currency strengthen. Its better to buy on the way up and now cant be a bad time - it will accelerate if Iraq ever gets to capitalise properly on the oil.

It could be another Kuwait. Leave me a AIM or a email addy and ill get in touch and we can share data.

Here is the great tool you need, or might already know .. historical currency conversion rates

I am looking to invest some dozen grands, but it really is not my field. So, not unsure if I should or no.

Did you read my question in first post? Do you think you know the answer?

I think I had your email, and lost it. Here is mine, vickythefire //hotmail -- or use contact link in sig, I'll exchange AIM via email.

Thanks

Edit: So, not sure* if I should or not.

:winkwink:

Ahh your right vick, i already got your email addy. As regard your initial question im not sure. Maybe the war was viewed as being a positive thing for Iraq and it encouraged inward investment or something <shrug>

Hey the historical stats are weird because it seems the FX changed suddenly on 06/30/2004

I dont get the stats here but i think its worth investigating.

I would worry more about change of currency. A million dinar with no where to spend it. "seems to much to chance on this investment."

Well im not saying it wouldnt be high risk but I reckon theres a chance to make some serious money here as Iraq recovers.

bump? im drunk

Interesting post.

According to what I know, its not possible. I mean war (or instability of state) always downgrades the value of currency. There is no chance in hell it can go up .. may be it have something to do with inflation or something? I must talk to someone who know all these things.

yup, I am on it ... but I must find answer to my first question first.

PS. send me email with your AIM, i didn't get it yet.

I am looking at around 50 million IQD, and it would be a nightmare to see currency changed. But I don't think they can change currency overnight, they must release new and ask people to deposit old and get new bills. Isn't it how this thing works?

if you have large amount of money you can do currency arbitrage

For example:
if $1.00 in U.S. currency buys 0.7 British pounds currency
&#163;1 in British currency buys 9.5 French francs
1 French franc buys 0.16 in U.S. dollars, then an arbitrage trader can start with $1.00 and earn

1 x 0.7 x 9.5 x 0.16 = 1.064 dollars which means profit of 6.4 percent.

I don't think its as easy as it looks. Money exchanger do earn shit, but by difference between the buying and selling rates.

For example, you came to me selling 100 USD for 49 GBP. Then someone else comes to me and want to buy 49 GBP for 101 USD ... this is how money can be made.

Not buying one currency and then buying another and then buying first one again, you will actually loose money over buying, buying, buying .. and exchanger will make money by selling you.

:2 cents:

Haha, if only you knew how far from the truth you are...

Also, for your information, the French franc has not existed for years. Ever heard of the Euro?

wtf...:pimp:pimp

vendot, I got an article for you .. drop me an email bro, its nice read.

If your in trading currency they have sophisticated software which finds these externalities and automatically executes. Also you have to large amounts of money to be participating in this.

Did you miss the part where it said "For Example"

Whatever dude. Buying one currency, then buying another and then buying back the first one cannot make money, assuming exchange rates are not changed during this.

How exchangers make money is the method I told above. The difference between the buying and selling rates of a currency is their profit.

Fuck, my basic question lost in the thread, someone address this please. :)

you would have to be crazy to invest in iraqi currency in my opinion

Invest in real currency markets (Forex. Managed Forex if you don't know what you're doing) At any time Iraq can revalue the dinar or wipe it out completely. It happens time and time again.

No doubt.