What Is Cheap?

malcolminthemiddle · August 22, 2005

Considering historical prices what is cheap at the moment. Is it:

US$ Blue Chip

Technology Funds

Japanese Fund

Latin America Funds

Korean Funds

Energy Funds

or what?

Firefan · August 22, 2005

He,he - yeah that is the problem in the current market! Everything seems expensive or at least VERY fairly priced which is unusual in most of financial history.

Some clever heads do state that value and small caps (be it US/EU or elsewhere) have had a good run, and it is time to look at growth/large caps, but in my humble opinion they still seems rather expensive on a historical basis, using almost ANY metric...

Gold/precious metals stocks might be an exception currently - and personally I have allocated 10% to same, a good diversifier (as part of a further diversified portfolio) to hold no matter what.

Cheers!

Considering historical prices what is cheap at the moment. Is it:
US$ Blue Chip

Technology Funds

Japanese Fund

Latin America Funds

Korean Funds

Energy Funds

or what?

pnustedt · August 23, 2005

Considering historical prices what is cheap at the moment. Is it:
US$ Blue Chip

Technology Funds

Japanese Fund

Latin America Funds

Korean Funds

Energy Funds

or what?

None of the above - look at:

Healthcare (long term)

Biotech

Eastern Europe

chownah · August 23, 2005

I know very little about investing. Aren't Japan Funds very cheap based on historical prices because the Japanese stock market used to be really really high and the prices have dropped to a fraction of what they were before and also because real estate prices have been deflating for quite awhile?

malcolminthemiddle · August 24, 2005

I know very little about investing. Aren't Japan Funds very cheap based on historical prices because the Japanese stock market used to be really really high and the prices have dropped to a fraction of what they were before and also because real estate prices have been deflating for quite awhile?

<{POST_SNAPBACK}>

I was thinking just that last night. I remember sometime in the mid 80s the Nikkei was around 35,000, now it is 12,473.

thaistick · August 24, 2005

Historically speaking,the new Iraqi dinar currently valued at $.00068 cents when it was worth $3.40 per dinar in the pre-Saddam days is the cheapest.One can buy a million dinars for $1000 today and if it goes up to just a penny per dinar,that turns $1000 into $10,000,and as I'm betting $60,000 with my 60 million,it would make my $60,000 into $600,000.

Check out www.investorsiraq.com which is a forum for dinar investors.The Kuwait dinar went from .04 cents to $4.00 per dinar after the last Gulf war,and Iraq is a lot bigger and has the world's second largest proven oil reserves.The word is that

whenever they sign the Iraq constitution,the currency peg will be announced,and the IMF said a fair valuation for the dinar is .30-.41 cents.

Edited August 24, 2005 by thaistick

Bizz · August 24, 2005

Historically speaking,the new Iraqi dinar currently valued at $.00068 cents when it was worth $3.40 per dinar in the pre-Saddam days is the cheapest.One can buy a million dinars for $1000 today and if it goes up to just a penny per dinar,that turns $1000 into $10,000,and as I'm betting $60,000 with my 60 million,it would make my $60,000 into $600,000.
Check out www.investorsiraq.com which is a forum for dinar investors.The Kuwait dinar went from .04 cents to $4.00 per dinar after the last Gulf war,and Iraq is a lot bigger and has the world's second largest proven oil reserves.The word is that

whenever they sign the Iraq constitution,the currency peg will be announced,and the IMF said a fair valuation for the dinar is .30-.41 cents.

<{POST_SNAPBACK}>

Yu might want to read this from fatwallet.

http://www.fatwallet.com/forums/messagevie...threadid=270766

The_Moog · August 24, 2005

Real estate in Jakarta is cheap - US$40,000 for a new 2 bed condo a stone's throw away from the Shangri La Hotel.

Mr. Farang · August 27, 2005

Historically speaking,the new Iraqi dinar currently valued at $.00068 cents when it was worth $3.40 per dinar in the pre-Saddam days is the cheapest.

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Can the new Iraqi Dinar be purchased directly in Thailand?

thaistick · August 27, 2005

Historically speaking,the new Iraqi dinar currently valued at $.00068 cents when it was worth $3.40 per dinar in the pre-Saddam days is the cheapest.

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Can the new Iraqi Dinar be purchased directly in Thailand?

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Most of the dealers reside in Jordan or Lebanon with a few in the US.My main dealers are in Jordan and can accept credit card payments for up to a few thousand dollars and bank wires for any amount.The cheapest and best sellers on Ebay are dima89,jaki2000,and antiquesghaith.I have bought millions from all of them and I now have a direct relationship with antiquesghaith bypassing Ebay and wiring money directly to him in Jordan.I have bought over 300 million dinars directly from antiquesghaith for family friends,business associates,doormen,

maids,etc.I know 2 people with over 100 million dinars and helped one of them get his.

One of the Ebay dealers also will give discounts to members of the investorsiraq.com forum by using their link on the forum's main page.Get a safety deposit box ready to stash the cash and try to get more of the 5000 and 10000 dinar notes over the 25000 notes.I have every size denomination but my most recent purchases have been smaller denominations.As the value rises,larger notes will be cashed in for smaller notes or in our case dollars,euros,etc.

Because of all the buzz about the constitution being signed soon and the currency peg announcement expected to occur right after,now could be the last chance to buy at these cheap prices.A lot of dealers are already raising their prices or stopping selling because of the anticipation.

Mr. Farang · August 28, 2005

Historically speaking,the new Iraqi dinar currently valued at $.00068 cents when it was worth $3.40 per dinar in the pre-Saddam days is the cheapest.

<{POST_SNAPBACK}>

Can the new Iraqi Dinar be purchased directly in Thailand?

<{POST_SNAPBACK}>

Most of the dealers reside in Jordan or Lebanon with a few in the US.My main dealers are in Jordan and can accept credit card payments for up to a few thousand dollars and bank wires for any amount.The cheapest and best sellers on Ebay are dima89,jaki2000,and antiquesghaith.I have bought millions from all of them and I now have a direct relationship with antiquesghaith bypassing Ebay and wiring money directly to him in Jordan.I have bought over 300 million dinars directly from antiquesghaith for family friends,business associates,doormen,

maids,etc.I know 2 people with over 100 million dinars and helped one of them get his.

One of the Ebay dealers also will give discounts to members of the investorsiraq.com forum by using their link on the forum's main page.Get a safety deposit box ready to stash the cash and try to get more of the 5000 and 10000 dinar notes over the 25000 notes.I have every size denomination but my most recent purchases have been smaller denominations.As the value rises,larger notes will be cashed in for smaller notes or in our case dollars,euros,etc.

Because of all the buzz about the constitution being signed soon and the currency peg announcement expected to occur right after,now could be the last chance to buy at these cheap prices.A lot of dealers are already raising their prices or stopping selling because of the anticipation.

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Interesting! You must be very rich to spend in the neighborhood of $200,000.00 USD for, what many people consider, pure speculation! Nice! My Dear Mother, who is really excellent about investment advice, her reaction (today) to the new Iraqi Dinar is, "You are better off buying window treatments for your new house!" and "Make sure you get a pretty color so you can wallpaper a room with them!"

I wish I was rich enough to speculate like you! Good Luck!! Hope your speculation pays off big!

TRIPxCORE · August 28, 2005

Eastern Europe

Good answer Pnustedt. I concur.

thaistick · August 28, 2005

Interesting! You must be very rich to spend in the neighborhood of $200,000.00 USD for, what many people consider, pure speculation! Nice! My Dear Mother, who is really excellent about investment advice, her reaction (today) to the new Iraqi Dinar is, "You are better off buying window treatments for your new house!" and "Make sure you get a pretty color so you can wallpaper a room with them!"

I wish I was rich enough to speculate like you! Good Luck!! Hope your speculation pays off big!

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It's $60,000 I'm gambling for my 60 million dinars but over a $100,000 each for 2 of my friends.They are millionaires and I am a zero below them but hope to get to their level.And the Iraq dinar being backed up by black gold at record high prices beats US dollars backed up by the government.It will be ironic that the Iraq dinar goes up as the USD goes down.But the dinars are extraordinarily colorful and would brighten up each room of the house.

Edited August 28, 2005 by thaistick

Mr. Farang · August 28, 2005

It's $60,000 I'm gambling for my 60 million dinars but over a $100,000 each for 2 of my friends.They are millionaires and I am a zero below them but hope to get to their level.And the Iraq dinar being backed up by black gold at record high prices beats US dollars backed up by the government.It will be ironic that the Iraq dinar goes up as the USD goes down.But the dinars are extraordinarily colorful and would brighten up each room of the house.

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Yes, My Dear Mom says new Iraqi Dinar will look nice under the glass on a coffee table too!!!!! BTW: $60K USD is a lot of money to speculate with, but if you get lucky and something unforseen happens to make them worth 10 or 20 cents each, you will have done very very well!!! I hope everyone's speculation pays off. To be frank, Dear Mom does not think the current political process in Iraq is going anywhere that will help you in the short to mid term. Reading the net, there was similar speculation in 2004 and, again, my Dear Mom, says the political situation is worse not better. I have found Dear Mom to be very wise in her years of experience and have learned not to discount her investment and political advise offhand. She is right almost 99% of the time on matters of financial risk and speculation and if I had listened to her in the past, I would have been a multi-milllionaire by this time!!!!!

What does your Mom say about speculating on Iraqi Dinar?

thaistick · August 28, 2005

It's $60,000 I'm gambling for my 60 million dinars but over a $100,000 each for 2 of my friends.They are millionaires and I am a zero below them but hope to get to their level.And the Iraq dinar being backed up by black gold at record high prices beats US dollars backed up by the government.It will be ironic that the Iraq dinar goes up as the USD goes down.But the dinars are extraordinarily colorful and would brighten up each room of the house.

<{POST_SNAPBACK}>

Yes, My Dear Mom says new Iraqi Dinar will look nice under the glass on a coffee table too!!!!! BTW: $60K USD is a lot of money to speculate with, but if you get lucky and something unforseen happens to make them worth 10 or 20 cents each, you will have done very very well!!! I hope everyone's speculation pays off. To be frank, Dear Mom does not think the current political process in Iraq is going anywhere that will help you in the short to mid term. Reading the net, there was similar speculation in 2004 and, again, my Dear Mom, says the political situation is worse not better. I have found Dear Mom to be very wise in her years of experience and have learned not to discount her investment and political advise offhand. She is right almost 99% of the time on matters of financial risk and speculation and if I had listened to her in the past, I would have been a multi-milllionaire by this time!!!!!

What does your Mom say about speculating on Iraqi Dinar?

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She's got her 40 million in her safety deposit box so she's kind of bullish on it.And

the bombings do make the headlines but the economy is rolling along and oil is at a record output.They even have a Mitsubishi dealership selling new cars and

Iraqis are buying up cellphones and laptops.Businesses are flourishing and Pepsi is building a bottling plant.The bottom line is they have the oil the world wants and pays through the nose for and it is money in the bank.The media have their motives on what they report and nobody trusts them anyway.

Mr. Farang · August 28, 2005

She's got her 40 million in her safety deposit box so she's kind of bullish on it.And the bombings do make the headlines but the economy is rolling along and oil is at a record output.They even have a Mitsubishi dealership selling new cars and Iraqis are buying up cellphones and laptops.Businesses are flourishing and Pepsi is building a bottling plant.The bottom line is they have the oil the world wants and pays through the nose for and it is money in the bank.The media have their motives on what they report and nobody trusts them anyway.

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Question: Do you have a chart that tracks the exchange rate of USD to New Iraqi Dinar since the currency has been on the market? (I could not Google one up!).

thaistick · August 28, 2005

The IQD has been softly pegged to the dollar by the CBI,Central Bank of Iraq,and it has been held steady at 1480-1460 dinar per dollar since its introduction in 1/04.Links to the CBI and the National Bank Of Kuwait's currency exchange rates are below.

http://www.nbk.com/NBK/TopBar/Rates/rates.htm

http://www.cbiraq.org/cbs6.htm

Mr. Farang · August 28, 2005

The IQD has been softly pegged to the dollar by the CBI,Central Bank of Iraq,and it has been held steady at 1480-1460 dinar per dollar since its introduction in 1/04.

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Oh, I think I see, thanks! Let me see if I understand:

The exchange rate of the IQD is set by the CBI, not the market. Currency traders purchase IQD from one of 20 Iraqi banks and resell the IQD to speculators (like from your earlier referenced eBayer from Jordan to your good self).

Speculators hold the currently waiting for the CBI to change ("repeg") the exchange rate and at that time speculators (such as your good self) can sell their currency back to the CBI (or more likely to other currency traders)?

~G~ · August 28, 2005

I know very little about investing. Aren't Japan Funds very cheap based on historical prices because the Japanese stock market used to be really really high and the prices have dropped to a fraction of what they were before and also because real estate prices have been deflating for quite awhile?

<{POST_SNAPBACK}>

Accomodation in Chiang Rai is very cheap. Good value in spite of the soi dogs.

chownah · August 28, 2005

I know very little about investing. Aren't Japan Funds very cheap based on historical prices because the Japanese stock market used to be really really high and the prices have dropped to a fraction of what they were before and also because real estate prices have been deflating for quite awhile?

<{POST_SNAPBACK}>

Accomodation in Chiang Rai is very cheap. Good value in spite of the soi dogs.

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Yeah.....but some of the people you have to put up with!!!...my advice is turn tail and run!!!

malcolminthemiddle · August 28, 2005

The IQD has been softly pegged to the dollar by the CBI,Central Bank of Iraq,and it has been held steady at 1480-1460 dinar per dollar since its introduction in 1/04.

<{POST_SNAPBACK}>

Oh, I think I see, thanks! Let me see if I understand:

The exchange rate of the IQD is set by the CBI, not the market. Currency traders purchase IQD from one of 20 Iraqi banks and resell the IQD to speculators (like from your earlier referenced eBayer from Jordan to your good self).

Speculators hold the currently waiting for the CBI to change ("repeg") the exchange rate and at that time speculators (such as your good self) can sell their currency back to the CBI (or more likely to other currency traders)?

<{POST_SNAPBACK}>

Good pont.

Thaistick, when the time is right, how do you intend to convert your IQD back to US$,Euro or whatever currency?

Mr. Farang · August 28, 2005

Good piont.

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Dear Gentlemen,

In my post above, I was not seeking to "make a point" (to clarify) ..... as I have much respect for ThaiStick and his thoughts. I am trying to understand the IQD currency market as part of an (ad hoc) investment due diligence strategy. I simply do not feel as if I understand the IQD market well enough to speculate in new Iraqi Dinar currency - but would like to.

ThaiStick has motivated me to perform some basic due diligence (DD) - maybe we can publish our analysis (for profit) after we put energy into the DD effort and complete the process (who knows what can become of a collaboration!) ? ThaiStick has a lot of knowledge in this area, has purchased considerable IDQ, and I'm experienced at performing due diligence (for clients) in a number of areas.

Just trying to understand as I keep an open mind. "Trust, Respect and (very important ) Validate".....

Mr. Farang · August 28, 2005

Informatiion on the NID (IDQ) here is useful, from this link:

http://www.globalsecurity.org/military/wor...ency-reform.htm

In June 2003 the Iraqi central bank once again began printing Dinars, with fallen leader Saddam Hussein's image on them. The 250 dinar denominated banknotes were printed by the Baghdad mint, under the supervision of the manager of the central bank. This was an effort to overcome a severe shortage of Iraqi dinars and to offset fears of counterfeit currency. The new 250-dinar bills -- worth less than US$0.20 each, were issued because of a shortage that caused a liquidity crisis in the country.
The administrator for the Coalition Provisional Authority in Iraq, Paul Bremer, outlined in an address to the Iraqi people 07 July 2003 the key spending priorities for the Iraqi national budget over the coming six months. These included commitments to improve the water, electrical, public health and telecommunications systems.

Bremer announced that the Coalition would print and distribute new banknotes for Iraq. In response to this press announcement in Baghdad, De La Rue confirmed that it was in discussions to assist in the production of banknotes for Iraq. The Company led a consortium of global currency specialists to manufacture the banknotes. De La Rue is the world 's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as travellers cheques and vouchers. Thomas de la Rue began printing British postage stamps in 1855, and obtained the contract for all Indian postal requirements.

Banknote Corporation of America, Inc. (BCA) is the largest high security printer in the United States, with headquarters in New York City and a manufacturing plant in North Carolina. Banknote Corporation specializes in intaglio printing, producing stamps for the United States Postal Service as well as for foreign postal administrations.

American Banknote Corporation (formerly United States Banknote Corporation) is primarily concerned with the engraving and printing of corporate and government securities and other secure documents, including the production of holograms. The American Bank Note Company, the first security printing company in the United States, can trace it origin over 200 years ago to the father of security printing, Paul Revere. The American Bank Note Company traces its beginning back to 1795, with the formal creation of the American Bank Note Company in 1858. On August 8, 2003, a jury found that Morris Weissman, former chairman and CEO of American Banknote, had inflated his company's earnings in 1996 and 1997. Based on the false numbers, the 1998 public offering of the company's subsidiary, American Banknote Holographics, was a success, netting the company $115 million. When the accounting fraud was uncovered in early 1999, the spinoff's shares dropped from about $16 a share to $1.80 a share. The stock was delisted in August 1999. American Bank Note Holographics ("ABNH") is in many ways a new company today, with new management that started in 1999.

Bremer stated that the so-called "print" dinars in circulation in most of Iraq, nor the formal national currency (or "Swiss" dinar) still used in some parts of the Kurdish North were suitable for the new Iraq. "Print dinars" were poor quality, and in practice circulated widely in only two denominations -- the 250 dinar note, and the 10,000 dinar note [and no coins]. This made Saddam dinar notes very inconvenient to use. The "Swiss" dinars, while of higher quality, were so old that they were literally falling apart in people's hands. The former national ("Swiss") dinar notes were used throughout Iraq until the early 1990's, and this national currency still circulated in the Kurdish north. The bills nicknamed "Swiss dinar" either because of their relative stability and strength or because it was made in Europe, depending on the account. The Swiss dinar was trading at about 6.7 to the dollar in early July 2003.

Bremer stated that a new currency had not been designed by the United States as only a sovereign Iraqi government could take that decision. The new currency would not depict Saddam Hussein. The design for the new currency, which was not been released in advance to the public, was taken from the designs of the "Swiss" dinar, though the new notes had different colors and denominations. The new dinars were printed in a full range of denominations: in 50s; 250s; 1,000s; 5,000s; 10,000s; and 25,000s. The new banknotes were much better protected against counterfeiting, they were much more durable and suffer less "wear and tear".

The new currency was made available to the Iraqi people on 15 October 2003. They replaced the existing Iraqi "print" dinars at parity: one new Iraqi dinar was worth the same as one "print" dinar. The new dinar replaced the "Swiss" dinar at the rate of 150 new dinars to one Swiss dinar. These different rates reflected the different prices, expressed in local currency, in different parts of the country.

Currency could be exchanged at branches of the Rafidain and Rasheed banks, and Iraqis had three months in which to make the exchanges. On 18 August 2003 the Central Bank of Iraq advised Iraqis to deposit all their dinars in local banks to facilitate their change into the new currency. The Bank's governor, Faleh Dawood Salman, said the UK firm charged with printing the new Iraqi money intended to ferry the first shipments to the country in a few days. "The process of changing the money has started and I call on all Iraqis to open accounts in both government and private banks and deposit the amounts they are willing to swap," Salman said.

On 01 October 2003 it was disclosed that agents from the Defense Criminal Investigative Service (DCIS) and the 812th Military Police Company assisted by Iraqi police and the Ministry of Finance had broken a counterfeit printing operation in Baghdad and seized counterfeit currency worth 100 billion dinars. DCIS agents and Military Police raided two locations, seized printing presses and arrested Amar Fadil Ramadan Al-Kayse, an Iraqi national who was subsequently released to Iraqi Ministry of Interior officials for prosecutorial action by the Iraqi Ministry of Justice and Courts. The investigation leading to the arrest of Al-Kayse revealed that Al-Kayse was printing and attempting to pass counterfeit 250 Iraqi dinar notes to the Central Bank of Iraq (CBI), which is funded and operated by the Coalition Provisional Authority (CPA). Al-Kayse owned and operated the Sarmad Company for Printing, a local Baghdad printing shop and worked as editor of Nuktat Dhaw ("Spot Light"), a newspaper in Baghdad.

Stephen Cecchetti, Professor of International Economics and Finance at Brandeis University, noted in June 2003 that "Cultural legitimacy is the final and most important issue to confront in designing the new Central Bank of Iraqi. What any of foreigners write or say is irrelevant unless the people of Iraq are involved. Most importantly, we cannot go into Iraq and build a set of institutions that reflect American and Western European values. This will not work. The new Central Bank of Iraqi will belong to the Iraqis and so they have to set it up. While I might think it would be fitting to start printing new Iraqi currency with an image of King Hammurabi on it, I'm not going to use the currency."

The new currency was unveiled during a press conference in the capital of Baghdad, October 4, 2003. The new Iraqi dinar is a sturdy and secure currency, imprinted with traditional Iraqi symbols -- altogether a great improvement over the flimsy bills with Saddam's face. Iraq's new banknotes include pictures of an ancient Babylonian ruler and a 10th century mathematician in place of the face of Saddam Hussein. An ancient Islamic compass, patterned on the an Astrolabe from Baghdad dated 1131 AD, on the new Iraqi 250 dinar banknote replaced the face of Saddam Hussein on the old note. This is the same Arabic Astrolabe that was used on the ½ dinar note of the 1980s issue and the 1000 Dinar note of the 2002 issue.

The original order of 2 billion notes filled more than twenty-five 747 airplanes.

At the time that the new dinar was introduced, the Central Bank of Iraq (CBI) was made independent of the Finance Ministry, which had been under the control of the Baathist Party. The CBI had suffered from a long period of domination by the Baathist regime and isolation from the international community, and needed much assistance to rebuild. The CBI's monetary policy function required special attention. It lacked a modern statute to facilitate monetary stability, a coherent framework for conducting monetary policy aimed at achieving price stability, and corresponding instruments for implementing monetary policy.

The exchange rate of the new dinar appreciated about 25 percent in the months following its introduction in late 2003, while prices were stable and inflation low. The exchange value of the dinar was quite stable, despite further growth in quantity. The earlier strength in the dinar helped hold down prices over the first several months of this year, and it seems quite likely that inflation will end up low this year, especially compared to the double-digit or higher rates that had characterized the Saddam era. This stability provided the basis for much-needed public confidence in the management of its currency.

Coalition Contractors did not have to be in country long to discover that there was no ability to use credit or ATM cards, and finding available bank related services was challenging given the security situation near many work sites. In order to make payments to local suppliers, vendors and sub-contractors, some resorted to carrying luggage bags of USD across borders themselves while others paid fees to international banks for the risk associated with making a physical money movement on their behalf. Nearly all contractors have had a different experience and story to share on how they have wired around the difficulties and challenges posed to them to get the currency they need when they need it, and where they need it.

Once acquired however, payments in cash continue to be problematic for the payee. For example, Iraqi persons in their role as contractors, suppliers and employees can become easy targets for criminals and insurgents when paid in cash. There have been instances when Iraqi’s have left a coalition base with a cash payment and been robbed, often resulting in injury and at times death. Payments made in the form of a check drawn on a local bank branch and denominated in Dinar is perhaps the safest way to pay Iraqi firms and persons.

03.10.31_20Iraqfinalword.pdf

Edited August 28, 2005 by Mr. Farang

chownah · August 28, 2005

Seems like I read that Iraq has a huge, unmanageable pile of debts racked up under the previoius administration. I don't recall that any official settlement of this debt or a plan as to how it would be settled in the future has been formalized...perhaps I'm wrong and simply missed it in the news. If I am correct and there is this huge pile of debt, then I would like to know that if the debt is all or partially forgiven will this likely be done in connection with a re-issue of currency to prevent Iraqi's from eliminating their debt and maintaining their wealth. If Iraq owed me alot of money I wouldn't feel very good about forgiving the debt and allowing the people who owed me the debt to maintain thier riches. What is the view of how the value of the existing currency would be affected if there was a currency re-issue?

Mr. Farang · August 28, 2005

What is the view of how the value of the existing currency would be affected if there was a currency re-issue?

<{POST_SNAPBACK}>

Based on my research on the net, motivated by ThaiStick's post, it seems highly unlikely that the New Iraqi Dinar (NID) will be replaced. This is very high quality currency produced at considerable expense to establish the future of Iraqi, under the current startup government backed by the US. Anything is possible, however it would be a huge loss for the current government to have to "start all over" with a new currency and the odds that the US will permit the current government to be "overthrown" (at least under the Bush administration) and a new currency with the photo a "hero insurgent" etc. to replace it, is very low.

NID.Key.Financials..pdf

20040628_historic_review_cpa.pdf

Edited August 28, 2005 by Mr. Farang

Mr. Farang · August 28, 2005

Seems like I read that Iraq has a huge, unmanageable pile of debts racked up under the previoius administration.

<{POST_SNAPBACK}>

CIA Factbook - Iraqi Debt

CNN: U.S. cancels Iraq's $4.1 billion debt - Friday, December 17, 2004

Also, see:

Iraqi Dinar - From Wikipedia, the free encyclopedia.

Edited August 28, 2005 by Mr. Farang

thaistick · August 28, 2005

Wow Mr Farang!While I was asleep you sure did much research on the subject.

The new Iraqi dinars are made by the De La Rue company in the UK and have the most modern anti-counterfeit features of any currency and they are far better than the US dollar's.Magnetic strips,

holograms,raised printing,UV ink,etc.,are all features of the new dinar.The Iraqi people cashed in their dollars for them so they have faith in them and they are used to conduct business,invest in the Iraq Stock Exchange,buy cars and products from neighboring countries,

etc..The new government will not want to start over and have investors and businesses lose faith in their currency.

A huge amount of Iraqi debt has been erased already upwards of 80%. That's a huge load off of the government's budget, freeing up a lot of oil revenue for reconstruction purposes. Lower budget deficits/higher budget surpluses mean a stronger dinar.Thanks to the G8 and other countries cancellation of most of Iraq's debts is why the IMF had revised upwards its valuation for the dinar from $.30 US cents to $.41 US cents per dinar.I feel the CBI will actually be peg it between .01-.10 US cents at around .05 US cents.This would be high enough to make the Iraqis happy with their increase in purchasing power and make those facing elections have a happy electorate.

Whenever it is pegged or revalued to a level for me to think about exchanging and cashing some or all in,I will be doing it a little at a time starting with the highest denominations.If the peg is high then it will be a lot of advice from a tax attorney and financial advisor.If it is small,it will be exchanging less than $10,000 visiting banks in my area.

Investors on iraqinvestors.com have already been able to buy dinars at the Compass Bank in the US and some have reported that the dinars they received from Compass Bank had Bank Of America marked paper sleeves on their stacks.This would be a good sign for a major international bank like BOA,one of my banks,to be in at the top standing by for the first rush of purchases as the value moves up,only to be replenished by the notes that will be cashed in at the initial release.

People over in Kuwait can get dinars at the National Bank of Kuwait which is also one of the several banks, which include HSBC,Standard Chartered,Citibank,etc., with licenses to open in Iraq.

There are forum members who work at Wells Fargo Bank that have said that they are gearing up for the release of the IQD onto the world market.

If I didn't have any dinars,I would at least bet a few thousand to get a few million.For all the banks and companies and the Iraq people themselves using and investing in the dinar are all good signs.And

Warren Buffet made a mint investing in the Kuwaiti dinar after the first Gulf War.

Mr. Farang · August 28, 2005

IMF had revised upwards its valuation for the dinar from $.30 US cents to $.41 US cents per dinar.I feel the CBI will actually be peg it between .01-.10 US cents at around .05 US cents.T

<{POST_SNAPBACK}>

Dear ThaiStick,

I could not easily fine the IMF report (one recent report attached) you indirectly reference above that has the IMF revised estimates for the NID. Could you kindly find it and post?

IMF and IRAQ

Yours sincerely,

Mr. Farang

IMF.cr05294.pdf

IMF_cr05295.pdf

Edited August 28, 2005 by Mr. Farang

thaistick · August 28, 2005

The IMF valuation models that support a rate of .30-.41 USD are now givens on the investorsiraq forum.I will search the forum for the original sources of the information.The range based on IMF analysis was .20 - .43 to the USD for several months.Based on oil and gas reserves, along with several other factors including GDP, money supply and debt, the rate of .41 USD was finalized and agreed to by the IMF, G8,Saudi Arabia,and Kuwait sometime in July.

Mr. Farang · August 29, 2005

The IMF valuation models that support a rate of .30-.41 USD are now givens on the investorsiraq forum.I will search the forum for the original sources of the information.The range based on IMF analysis was .20 - .43 to the USD for several months.Based on oil and gas reserves, along with several other factors including GDP, money supply and debt, the rate of .41 USD was finalized and agreed to by the IMF, G8,Saudi Arabia,and Kuwait sometime in July.

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Thanks. I still do not understand the IMF projections and look forward to the original data (if you can kindly find it). The IMF projections are based on a "completely up and running, smooth social and economic systems in Iraq" ?

Edited August 29, 2005 by Mr. Farang

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