Quote: (09-21-2011 01:57 PM)Caligula Wrote:I thought that it would revalue and they would just knock zeros off the money but the value would stay the same.
It's at best a wildly optimistic reading of markets, at worst an outright scam.
Don't think anyone will be retiring off a small investment in IQD. At best they'll reap a small profit if and when revaluation comes, but it won't be anywhere near the 1000x return people are talking about.
Some informative links here:
http://www.blifaloo.com/info/dinar.php
People assume that the Iraqi government has to revalue their currency when the economy strengthens. The argument is that oil money will grow the economy and strengthen the currency, spurring the gov't to revalue it.
The problem is that even if they do revalue (which isn't certain) they're more likely to start with a new currency that will be traded internationally and set a reasonable exchange rate from the old dinar to the new internationally traded dinar they'll create. I think something similar was done in 2003 because Saddam made the economy a basket case and the old dinar was worthless.
And that's if Iraq decides to revalue at all. A growing economy fuelled by oil money may also lead to inflation, meaning that the currency devalues. This will make servicing its debts cheaper and fuel the export economy.
I wouldn't buy it.
http://www.moneyshow.com/trading/article...rency-Scam
Nobody wants to hear it. The bank manager said that Trump has 20 mil tied up in it.