Value of Dinar, Iraqi Dinar Revaluation

WHY BUY DINAR
History is the single biggest indicator we can look at to predict future successful outcomes. Companies do it everyday in their normal course of business when evaluating persons for home loans (credit history, employment history and history of paying bills on time), car loans, business credit. Investment advisors also look at an array of historical items to assess their investment recommendations. These include track record or history of the companies leaders on how they perform, earnings and revenue history. On a more macro (bigger picture) level economic numbers of growth or slowing go into the mix to help make a clearer picture for the future.

Iraq is no different. Let’s look at world history.

World War II – End of WW2 came in 1945. Sixty million (60,000,000) people lost their lives and most of Europe & Asia laid in ruins

Korean War – 1950 – 1953

Vietnam – 1965 – 1973 – 1965 is when the United States sent first troops into Vietnam

Operation Desert Storm – 1991 – August 2, 1990 Iraq invades Kuwait and the United States liberates Kuwait from Iraqi control January – March 1991.

Operation Iraqi Freedom – March 2003 to Present

The United States helped rebuild Germany and Japan after WWII and look at their economies now. The US rebuilt Vietnam, Korea and Kuwait. All countries are significantly more successful today.

But none of the countries above (except Kuwait) had the natural resources Iraq possesses. We have never seen an opportunity like the one that lies before us today. For 5 years now, the United States and the rest of the world have invested hundreds of billions in the rebuilding of Iraq.
Let’s look at the Top ten (10) oil producing countries and where their currency trades:

1. Saudi Arabia 266 billion barrels of reserves - .26 2. Canada 178 billion barrels of reserves - .95 3. Iran 138 billion barrels of reserves - 1/10,000* 4. Iraq 125 billion barrels of reserves - 1/1170 5. Kuwait 100 billion barrels of reserves - 3.48 6. UAE 97 billion barrels of reserves - .27 7. Venezuela 77 billion barrels of reserves - 1/2152* 8. Russia 60 billion barrels of reserves - .03 9. Libya 39 billion barrels of reserves - .81 10. Nigeria 35 billion barrels of reserves - 1/152 or half a penny

Top six countries above are Middle East countries except Canada. Example: Saudi Arabia’s currency is 26 cents for each 1 American dollar, Kuwait’s currency is 3.48 for each American dollar. So each Kuwait dinar is worth 31/2 times the US dollar. Iran’s currency is 1 American dollar equals 10,000 Iranian rial. So this currency is 1/10,000 of the US dollar, which is virtually worthless.

Now, Iraq. Their currency from October 2003 (when the new Iraqi dinar was put in circulation) Iraqi dinars has gone from 3200 to currently 1170. This is an appreciation of 173% over the last 6 years. Here’s the big question.

If you believe the growth in Iraq will continue than the Currency, the Iraqi Dinar, Iraqi dinars should be considered.