ADAM MONTANA POST - Dinar Vets (Q&A - Dubai)

Morning all. I’m going to answer some of the questions. Not all. Some of the questions posed had nothing to do with my Dubai trip, and whether you like it or not Iraq is too complicated to understand in one day, and too complicated to explain in one post.

For those of you wondering what the heck this is all about – I just got back from Dubai where I met with a CBI (Central Bank of Iraq) employee. This person has been emailing me for several months, discussing certain topics which we all believe could eventually lead to a revaluation of the Iraqi Dinar.

I think some people misunderstood one important thing – I still have not predicted a date. IN MY OPINION it won’t be until after the first of the year, but I could be wrong. My information is completely different from other people’s… do your research and make your own decision! Hopefully my information will help you put together the clues, all I ask is that you don’t ask me to make a fake prediction.

Here we go!

First Question:

Quote:

Originally Posted by caddieman It has been argued that Iraq has to have backing for the RV. As backing goes I am talking Money in the bank. Do you think this is the reason why your guy says below 1.00?

Most of us know that many banks are getting financial backing already from other banks in the world. Every big oil company that comes in with a big contract is providing work and pay for the Iraqi people, bringing more money into the country. In effect, business is going to help back Iraq.

Obviously the country needs to be able to cover any RV rate, so you DO have a good question. They are already “backed” at the rate of 1170, so our question is this: How high could the Dinar go, while still being “backed” by Iraq on it’s own?

An easy comparison is the US. What do WE have backing us? We certainly don’t have enough money in the bank to cover our debt! If we don’t have enough money in the bank to cover our currencies value, then why does Iraq need that? Even though we don’t have the reserves or resources to cover every US dollar in circulation or the debt we currently hold, China still gives us credit. Why? Because we’re not going anywhere. And neither is Iraq.

Remember, I never stated a rate, and I was not given a rate. If my contact had given me a rate I probably wouldn’t have believed him on the rest of the topics we covered. He didn’t, though, and he plainly stated that there is no way to know the rate yet. Too many factors. Anyway, when we were discussing the possible range, he was more agreeable on the low end. When I asked “Why so low?”, he told me they would come out as low as they could without having to be able to “cover” every Dinar, and allowing for a realistic maturation rate of a couple years to get to where they really should be. A huge spike would cause chaos, and be counter productive. What they want is a controlled growth.

So, does that mean it won’t come out at a dollar or two? No! The currency plunged dramatically, and it could also rise dramatically. Control is the key.

What about the amount of Dinar in circulation – can Iraq cover all that dough?

Iraq doesn’t even need to be able to cover every Dinar… the simple fact that the rest of the world wants oil will allow them to come out at a higher rate. They can say “our Dinar is now worth $2.00!”, and the world will go “Oh… ok… can I have some oil now?”

We had a good laugh about that one, because it’s true.

Quote:

Originally Posted by newbie Q: Does CBI already have the smaller denominations of 1, 5, 10 and 20 printed and ready to go for RV?

Good question! I asked the same thing, and he said it’s not a big deal. He didn’t know if the notes were already printed, but – this is key – he had seen the plates that will be used to print the smaller denoms. His belief is that there is already a certain amount printed, and depending on how fast the large notes come in, it will be very easy to print more in a short time frame.

Quote:

Originally Posted by 123uandme I was wondering if you and your contact ever discussed a possible ‘cash-in period’ (when it does RV) for the larger notes?

I was complimented on this one by my CBI contact, in fact. He said I was close – I guessed there would be a 30-90 day window to cash in, he said it would be longer. No exact range was given, but he leaned more towards 6-12 months before they permanently phase out the larger notes.

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Originally Posted by 3Eagles What about the IMF forcing the RV like people have discussed previously? Can anyone discuss how the IMF still fits into this equation?

I have a bit of information coming out shortly about how the IMF fits in, make sure you’re on the newsletter.

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Originally Posted by Danneedsrvnow It would seem that Iraq is using international visa credit cards (tbiraq.com)? If I am reading this info correct, then what makes their currency globally recognized? Or are they already?

The currency is not globally traded, but it is globally recognized. The Iraqi Dinar is the most sophisticated currency ever printed, in my opinion it is only a matter of time before all major banks are trading it.

To explain your question, though – Iraqi banks convert USD to IQD, as you will see when you open a Warka account. When an Iraqi swipes his VISA card, it “spends” USD – not IQD.

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Originally Posted by SBX .can you elaborate on Chapter 7 and the HCL and what their impact has on the RV….

I’ll cover that on the blog shortly.