March 22nd, 2011 09:39 am
I know there’s a lot of information out there about the RV and sometimes it’s hard to know even where to start. If you’re looking to get the facts on the RV, I highly recommend purchasing Daniel Carlson’s ebook: Make Money on the Iraqi Dinar by [clicking here]
Daniel is a dinar specialist and a Dinar Daddy contributor. He sent me an advanced copy and it is THE textbook for the future of the Iraqi dinar.
Here’s a free preview that he has allowed me to publish:
Section 3: How Can I Profit Off the Dinar?
It’s a pretty simple concept – you sell your dinars for more than you paid for – but there are some complex components involved as the price of a dinar depends on the exchange rate or relative value against the U.S. dollar.
Let’s get a handle on how exchange rates work with the Iraqi dinar. Currently, the Iraqi dinar is under a managed float system. This means that the value of the dinar fluctuates according to the foreign exchange market for the dinar, but the government of Iraq and the Central Bank of Iraq have the authority to intervene and set rates to change the value of the dinar (revalue).
The foreign exchange market refers to the world-wide financial market of trading currency. It is a huge large market as the daily trading volume is near $4 trillion. It is also a very concentrated market as over 95% of all trades are between the seven most liquid currency pairs:
EUR/USD (euro/dollar
USD/JPY (dollar/Japanese yen)
GBP/USD (British pound/dollar)
USD/CHF (dollar/Swiss franc)
AUD/USD (Australian dollar/dollar)
USD/CAD (dollar/Canadian dollar)
NZD/USD (New Zealand dollar/dollar)
The primary purpose of the foreign exchange market is to facilitate international trade and foreign investment by enabling businesses to convert one currency to another currency. For instance, a US business is able to pay for Japanese imports by converting US dollars into Japanese yen in the foreign exchange market. Investors also take positions on foreign currency and use the foreign exchange market to carry out their trades. The primary way trades are made is between large commercial banks, securities dealers, international businesses and national central banks.
Right now, the foreign exchange markets for the dinar are the daily auctions held by the Central Bank of Iraq (CBI). Every day, banks buy and sell dinars from the CBI and the supply and demand from this process determines the exchange rate for the dinar. However, the volume of trades in these auctions pales in comparison to the volume of any of the seven major currency pairs. On any given day, the trade volume between the Iraqi dinar and the US dollar may be around $150 million. However, trade between the Euro and the US dollar is about $4 billion! It’s not even close! As a result, large commercial banks really have no incentive to deal with the dinar right now, because it is such a small market! That’s why you can’t go to your local Bank of America to buy and sell dinar and have to purchase from private dealers.
Naturally, the next question is, when will banks start buying and selling dinars? There is no way anyone could time such an event, however, there are some key factors that need to be in place for the Iraqi dinar to become a majorly traded world currency. The foreign currency exchange is primarily based on global trade. As countries import and export products from different countries, they need foreign currency to pay for foreign goods. Iraq is not a major global trade partner, yet. Iraq is poised to become a huge player in the global economy with its oil trade. In addition, new industries are developing, attracting more foreign investment and diversifying Iraq’s economy. For more in depth analysis of the Iraqi economy, go to Section 7].
In order for Iraq to build strong economic trade partnerships, Iraq must first have a stable political environment domestically. Second, it is essential for Iraq to form strong political relationships to foster beneficial trade terms. Iraq must prove itself politically to attract foreign investment. Foreign investors must feel secure enough that their investments will be protected and that the Iraqi government will pass laws and regulations to make it easy to do business in Iraq. It is the government’s responsibility to rebuild Iraq’s infrastructure to create a business climate that allows both domestic and foreign businesses to thrive. For specific insights, go to Section 7 learn about how Iraqi politics can move the country forward.
Global trade is important of the dinar to be recognized as a major world currency, but what will it take for it to increase in value and for dinar holders to make money? This is literally the million dollar question.
One event that could change the value of the dinar dramatically is if the Iraqi government and the CBI revalues the dinar. This would be an instant jump and would benefit everyone who has dinars. Since the dinar is on the managed float regime, the CBI could potentially increase the value of the dinar against the dollar. This would mean Iraq could pay off its $60.05 billion debt and jump start its economy. So how come the CBI just doesn’t revalue now? It’s important to keep in mind that the International Monetary Fund (IMF) states that policymakers should not “manipulate exchange rates…to gain an unfair competitive advantage over other members.”
A significant initial revalue would certainly give Iraq an unfair advantage and could mean political suicide for Iraq. The CBI could certainly revalue the dinar initially at $5 per dinar. Iraq would pay off all of its debt and become the dominating force in the global market. In addition, the Iraqi dinar would become one of the most widely traded currencies, as it would be one of the strongest currencies. Not so fast. If the CBI were to immediately revalue to an astronomical value from its current exchange rate, there would be a huge political backlash.
The UN, IMF and the international community would punish Iraq by refusing to trade. Iraq already has UN sanctions that prevent it from importing certain necessary goods and has to pay 5% of its oil revenues to Kuwait. It is estimated that the sanctions are costing Iraq $24 Billion a year in trade! If the UN members felt that a very high dinar revalue were unfair, there could potentially be more sanctions placed on Iraq and hurt its growth even more. It doesn’t seem wise for the CBI to revalue at a sky-high rate because of the potential consequences. However, that does NOT mean the dinar cannot reach its potential…[click to read more]
Make Money on the Iraqi Dinar is a great resource, which I’ve referred to in a chat. It has over 60 pages of analysis, charts and graphs that provide facts about the future of the dinar. Here is what I wrote to Daniel in an email about his ebook:
Excellent read Daniel. I loved it! You are the ONLY person I have read along this journey that is a detailed and professional as I try to be. I love your writing style, and your mastery of the information and presentation of the material was very well done. It only further solidifies you as someone ANYONE would like to do business with. I loved it!
Also, there is a money back guarantee so there is no risk. There is no risk in getting researched facts and no risk in having a solid foundation on the RV. This is a must read for every serious dinar investor.
Check it out for yourselves: Make Money on the Iraqi Dinar
All,
Now is the time to be really solid on your RV facts. Don’t get mislead any more by rumors and hearsay. Do the research yourself and make your own decisions.I know there’s a lot of information out there about the RV and sometimes it’s hard to know even where to start. If you’re looking to get the facts on the RV, I highly recommend purchasing Daniel Carlson’s ebook: Make Money on the Iraqi Dinar by [clicking here]
Daniel is a dinar specialist and a Dinar Daddy contributor. He sent me an advanced copy and it is THE textbook for the future of the Iraqi dinar.
Here’s a free preview that he has allowed me to publish:
Section 3: How Can I Profit Off the Dinar?
It’s a pretty simple concept – you sell your dinars for more than you paid for – but there are some complex components involved as the price of a dinar depends on the exchange rate or relative value against the U.S. dollar.
Let’s get a handle on how exchange rates work with the Iraqi dinar. Currently, the Iraqi dinar is under a managed float system. This means that the value of the dinar fluctuates according to the foreign exchange market for the dinar, but the government of Iraq and the Central Bank of Iraq have the authority to intervene and set rates to change the value of the dinar (revalue).
The foreign exchange market refers to the world-wide financial market of trading currency. It is a huge large market as the daily trading volume is near $4 trillion. It is also a very concentrated market as over 95% of all trades are between the seven most liquid currency pairs:
EUR/USD (euro/dollar
USD/JPY (dollar/Japanese yen)
GBP/USD (British pound/dollar)
USD/CHF (dollar/Swiss franc)
AUD/USD (Australian dollar/dollar)
USD/CAD (dollar/Canadian dollar)
NZD/USD (New Zealand dollar/dollar)
The primary purpose of the foreign exchange market is to facilitate international trade and foreign investment by enabling businesses to convert one currency to another currency. For instance, a US business is able to pay for Japanese imports by converting US dollars into Japanese yen in the foreign exchange market. Investors also take positions on foreign currency and use the foreign exchange market to carry out their trades. The primary way trades are made is between large commercial banks, securities dealers, international businesses and national central banks.
Right now, the foreign exchange markets for the dinar are the daily auctions held by the Central Bank of Iraq (CBI). Every day, banks buy and sell dinars from the CBI and the supply and demand from this process determines the exchange rate for the dinar. However, the volume of trades in these auctions pales in comparison to the volume of any of the seven major currency pairs. On any given day, the trade volume between the Iraqi dinar and the US dollar may be around $150 million. However, trade between the Euro and the US dollar is about $4 billion! It’s not even close! As a result, large commercial banks really have no incentive to deal with the dinar right now, because it is such a small market! That’s why you can’t go to your local Bank of America to buy and sell dinar and have to purchase from private dealers.
Naturally, the next question is, when will banks start buying and selling dinars? There is no way anyone could time such an event, however, there are some key factors that need to be in place for the Iraqi dinar to become a majorly traded world currency. The foreign currency exchange is primarily based on global trade. As countries import and export products from different countries, they need foreign currency to pay for foreign goods. Iraq is not a major global trade partner, yet. Iraq is poised to become a huge player in the global economy with its oil trade. In addition, new industries are developing, attracting more foreign investment and diversifying Iraq’s economy. For more in depth analysis of the Iraqi economy, go to Section 7].
In order for Iraq to build strong economic trade partnerships, Iraq must first have a stable political environment domestically. Second, it is essential for Iraq to form strong political relationships to foster beneficial trade terms. Iraq must prove itself politically to attract foreign investment. Foreign investors must feel secure enough that their investments will be protected and that the Iraqi government will pass laws and regulations to make it easy to do business in Iraq. It is the government’s responsibility to rebuild Iraq’s infrastructure to create a business climate that allows both domestic and foreign businesses to thrive. For specific insights, go to Section 7 learn about how Iraqi politics can move the country forward.
Global trade is important of the dinar to be recognized as a major world currency, but what will it take for it to increase in value and for dinar holders to make money? This is literally the million dollar question.
One event that could change the value of the dinar dramatically is if the Iraqi government and the CBI revalues the dinar. This would be an instant jump and would benefit everyone who has dinars. Since the dinar is on the managed float regime, the CBI could potentially increase the value of the dinar against the dollar. This would mean Iraq could pay off its $60.05 billion debt and jump start its economy. So how come the CBI just doesn’t revalue now? It’s important to keep in mind that the International Monetary Fund (IMF) states that policymakers should not “manipulate exchange rates…to gain an unfair competitive advantage over other members.”
A significant initial revalue would certainly give Iraq an unfair advantage and could mean political suicide for Iraq. The CBI could certainly revalue the dinar initially at $5 per dinar. Iraq would pay off all of its debt and become the dominating force in the global market. In addition, the Iraqi dinar would become one of the most widely traded currencies, as it would be one of the strongest currencies. Not so fast. If the CBI were to immediately revalue to an astronomical value from its current exchange rate, there would be a huge political backlash.
The UN, IMF and the international community would punish Iraq by refusing to trade. Iraq already has UN sanctions that prevent it from importing certain necessary goods and has to pay 5% of its oil revenues to Kuwait. It is estimated that the sanctions are costing Iraq $24 Billion a year in trade! If the UN members felt that a very high dinar revalue were unfair, there could potentially be more sanctions placed on Iraq and hurt its growth even more. It doesn’t seem wise for the CBI to revalue at a sky-high rate because of the potential consequences. However, that does NOT mean the dinar cannot reach its potential…[click to read more]
Make Money on the Iraqi Dinar is a great resource, which I’ve referred to in a chat. It has over 60 pages of analysis, charts and graphs that provide facts about the future of the dinar. Here is what I wrote to Daniel in an email about his ebook:
Excellent read Daniel. I loved it! You are the ONLY person I have read along this journey that is a detailed and professional as I try to be. I love your writing style, and your mastery of the information and presentation of the material was very well done. It only further solidifies you as someone ANYONE would like to do business with. I loved it!
Also, there is a money back guarantee so there is no risk. There is no risk in getting researched facts and no risk in having a solid foundation on the RV. This is a must read for every serious dinar investor.
Check it out for yourselves: Make Money on the Iraqi Dinar
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