So I still have several friends that text and call about dinar, they’re frustrated about how some continue to post things that give people ulcers about the investment. The current flip seems to be about net worth.
Newshound (I use that term lightly) Guru K……. It has been clearly stated that Iraq’s net worth is 16 trillion dollars including all minerals and oil in the ground. Iraq has over 100 trillion dinar in circulation. There can never be a significant RV.
So let’s break this down. the key word is circulation. This US currency department refers to circulating currency as the number of Federal Reserve notes, U.S. notes and currency no longer issued. Now here’s the fun part, they don’t print some of these notes anymore so why do we still call them in circulation? Because they are legal tender. But BWM, what’s that got to do with Iraq? Well before the Saddam-faced dinars, there were other dinar produced in Switzerland, that became known as swiss dinar. When they exchanged the currency from Saddam dinar to the newer notes it was on a 1 to 1 basis, but the Swiss dinar were a 1 to 150. They were given 60 days to trade in the Saddam notes. While the Saddam notes are no longer valid currency (they had no official backing, but were recognized at the 3.20 rate), Swiss dinar are considered a zombie currency and still maintained value over the years.
So how does the government calculate what is in circulation. This is where it takes a twist. Notes are tracked based on the serial numbers that are printed on the note. But if you have a torn note and you want it replaced, you have to go through a process by which you turn it into a bank, they have to verify the note, the note then gets replaced and the reported serial number is removed from circulation. How many of you would do that everytime you had a torn dollar? You stuffed it in a drawer, or you just put it away somewhere and it became lost or forgotten. Think of Iraq, the heat, and carrying around a wad of currency to pay for everything. We know that a few years back the notes were becoming so worn they had to print newer notes. We can only count what went out, you can’t keep up with the exact location of every note. There’s no tracker or system for running down serial numbers. While there were trillions of dinar printed and put into circulation, when you consider the theft of dinar (serial numbers noted more than likely for most), wear and tear, government destruction, and money lost in mattresses, there is a definite loss of the number of dinar in actual circulation. When you consider that this will again be replaced with the printing of new lower denominations, the number is circulation will have much more control.
Just a thought, if you feel like the dinar will never change in value and there will never be a significant revaluation in the exchange rate. Sell your dinar, if you even have any, and let people who actually look at things other than wikipedia continue doing our due diligence and determining what is or isn’t a good investment for ourselves.