BAGHDAD - Smuggling, hoarding and currency speculation sent the Dinar on a rollercoaster ride this week, pushing the value of the new currency up to almost ID 900 to the Dollar. On the day that the old notes bearing Saddam’s picture were phased out, the new currency saw some of the same market manipulation the older currency faced, prompting some economists to ring alarms that the beleaguered currency may be set for a more serious downfall.
”Large amounts of the new Iraqi Dinar have been smuggled out of Iraq to neighboring countries like Kuwait and Syria and Jordan, and the demand for the dinar is now much higher,” said Ali Fahmy, a trader in Kiffah market, as he watched the Dinar rise ever higher in value.
”There are now traders supplying dinars to speculators in other countries. For example, if I have $1000 and change it to 1.5 million ID, and then smuggle the money outside Iraq, after a while the Iraqi dinar may become so strong against dollar that I would then have a fortune. ”
The smugglers have taken to concealing the new Dinar in unlikely ways, traders say. Some have stuffed the new bills into car spare tires, or stashed banknotes in hidden tanks within trucks crossing the border. ”They come to us and want the dinar in high denominations like the 25,000 or 10,000 note. That’s because it’s easy to carry large amounts of the dinar and hide it in hidden places in bags or suits,” says Naji Tawfiq, a trader in Harthya.
Even Iraqis seem to be stashing away dinars in the hope that the exchange rate will return to its 1980’s high of $3.3 for per dinar. ”They are waiting till their ID1.5 million becomes $5 million. It’s a big gamble but they hope that their few million Dinars will one day be worth millions of dollars instead,” explains Ali Fahmy.
”If the smuggling continues, then we will face a real problem, as there is not enough currency for us, the Iraqis, to deal with in the markets. This may force the Central Bank to print more dinars with the effect that the value will fall,” suggests Hisham Al-Dagestani, a banking expert. ”We should punish anyone exporting dinars, and close the borders to stop it from happening.” But Central Bank officials put a different spin on the wide fluctuations. The huge fluctuations reflect rising confidence in Iraq and in it’s currency, they insist. Sabah Noori, manager at the Minister of Finance’s office, predicts global interest in the new Iraqi dinar to increase even further. ”When I was in Kuwait, I saw notes and signs in the streets about the Iraqi dinar’s value. People trust the new currency as it can’t be faked, because they believe that the Iraqi dinar is supported by the Americans. I heard people saying that they should buy large amounts of the new dinar to gain benefit in the future.”
”There are high hopes for the Iraqi economy,” says Iraqi Central Bank governor Dr. Sinan Al-Shibiby. ”It’s now a trustworthy currency, but the rise in value is not justified because it’s too big a jump, while you really want something smooth. People now want to have the dinar because it will be strong in the future.”
http://www.iraq-today.com/article.ph...ing=§ion=2
"SUPER" POST (Dinar Vets):
We know Iraq wants to RV but we've heard through the chat and forum people say that the longer it takes for Iraq to RV the higher the rate on the dinar will become at RV. Well that is very true and this is an article that was posted in 2004, in another forum that I belong to, its old I know and the link don't even work anymore, but it can give some incite to a lot of people that are new (newbies). A little history on what the CBI is trying to accomplish. CBI knows that in order to bring the rate up on the Iraqi dinar they have to make the dinar a valuable and desirable currency by pushing it through the system over and over with auctioning and selling out of country to people like you and I through E-bay or the dinar traders make the New Iraqi Dinar (NID) rate go up. Now every time we hear a rumor that the RV is next week and rate is going to be $x.xx dollars per dinar. The internet is the quickest way to get a rumor started and what does a lot of people do when they hear that it's going to be for sure 100% done? People are going to be like sharks in the ocean that smell a drop of blood, especially if it came from the "CBI". "Oh I don't have enough dinar, I have to get more just in case the RV doesn't come in as high as I think it will."
I know I've done it myself, never the less not only does CBI make a bunch of money but the dinar traders do as well. But the point is there is no RV on that date and CBI knows it, because it's a RUMOR and they are not held accountable for what does materialize. "Oh but next week, and the following week, and month, or year there will be an RV. And those that has made the predictions are set up to look like fools because it didn't come about and as long as CBI continues to keep the rumors flowing, then the more the money flows their way. But the danger of what I thought could happen is about corruption within the CBI or TBI, that is to say if some are skimming money off the top, by not reporting what they take for themselves, then the rate of the dinar is sitting still and not growing in a physical valve. But I think we all know Iraq by now in that they will milk all they can, while they can. So you see CBI can be using the dumb greedy INFIDEL World to pay for all of their living while sitting on I think they have strategically the most resources on earth than anyone. So keep in mind don't kill the messenger the next time you hear a rumor of 100% RV, or it going RV tomorrow or next week, it may be coming from the Iraq's CBI or TBI. But know this that the valve of their money is still moving up daily, and if you hear that it has RVed, then it doesn't mean you have to cash in right away unless, and I do mean unless you are destitute and need it for survival or we are told we have a set time limit to trade in our old currency for new currency. IMO
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