Dinar Update for February 5
Feb 05, 2011
If reports are true, we may seen the revaluation of the Iraqi dinar soon. The last three ministerial positions of the Iraqi government are close to being filled (finally), and the budget is ready for its third reading and passage.
Everything is slower in Iraq, so don't become unbalanced. But I thought it would be good to post some basic instructions for those of you holding dinars. If you intend to cash in at your local bank, this information is irrelevant, of course. But you may want to do a price comparison. Most banks will charge 2-4% and may also charge a "spread" (discount). DinarTrade currently has 3 locations to cash in that are ready today. Within a week of the revaluation, they will open another 9 locations around the country. They will charge just $150 per million dinars to cash in. See the link below for all the details and locations.
These banks set up by DinarTrade will cash in all dinars, regardless of where you purchased them.
Vinnie tells me that he is due to get in another shipment of dinars on Monday. Assuming that the revaluation has not already occurred over week end, he will continue sending them out next week. To order, you can call him at:
By the way, I make it a practice to read the views of those who have views different from mine. I want to know the opposing views so that I am never closed off to other viewpoints. This is true for both biblical teachings as well as the dinar issue. So if I hold a particular viewpoint, it is usually because I have read opposing views and find them to be deficient.
There are articles posted online that claim the sale of dinars is a "scam." I suppose anyone can turn anything into a scam, mainly by promising to send dinars upon receipt of your money and then skipping town. There are always cases of land fraud, people selling land that they do not own. But this in no way makes it a scam to sell land. Same with dinars.
Dinars are genuine Iraqi currency, same as US or Canadian or Australian dollars. The only difference is that 20 years ago the UN sanctions forced the dinar off the international currency exchange to put economic pressure for "regime change" in Iraq. This had the intended effect of driving the price of their dinar down to near zero, in spite of the fact that Iraq was very rich in natural resources, most notably oil, natural gas, and agriculture.
The fact that the dinar is not yet reinstated as an international currency is one of the main factors that the "scam view" points to in support of its position. They simply do not understand the history of how the dinar was removed from the IMF, nor how Iraq is steadily moving toward the reinstatement of the dinar at the IMF. Iraq has complied with all the UN demands and is moving toward becoming a full member of the World Trade Organization. It cannot feasibly be a member of the WTO until its currency has some real value, and certainly it must be re-listed with the IMF to be tradable around the world.
There are many testimonials from ordinary people who say that their bankers are now preparing to cash in dinars. Some even give an expected cash-in value, and it is a lot more than 3 cents each. Some report that banks are stocking up on cash reserves now, presumably because they are expecting a revaluation soon, and they need dollars to buy dinars from people who may want some take-home cash while depositing most of it in their bank accounts.
I have no way of knowing the validity of testimonials from other people, but I doubt if they are ALL liars. Secondly, I do have some personal contacts in some high places, people who read my blogs regularly and who pass on certain things to me, so that I have greater insight into the world situation. I appreciate such reports and encourage others to keep me informed, especially from embassy personnel, government or UN officials.
From my own contacts, I can say that some very high officials in the UN and World Bank and government officials are quite heavily invested in Iraqi dinars. They are in a position to know if this is a "scam" or not, and they have reason to believe it is valid.
The recent unrest in Tunisia, Egypt, Yemen, and Jordan is now beginning to spill over into Iraq. The Iraqi government is thus being pressured to get this done quickly before the people start demanding their heads. The people of Iraq are poor, because the dinars they own are worth very little at the present time. When the revaluation occurs, they will have a lot more money to buy goods and services and imports. Most of the dinars in the world are still in Iraq, owned by the Iraqi people themselves. They have the most to gain from a revaluation.
One final note . . . I believe that this revaluation will be the beginning of the end of the US dollars as the "world's reserve currency." Oil will no longer be priced in dollars but in dinars. At first, when dinars are being cashed in for dollars, the value of the dollar will probably go up in value, due to the demand for dollars. But in the long run, the dollar will receive a fatal blow. For this reason, I have suggested that people buy things of real, tangible value, rather than have too much money sitting in a bank account that is becoming worth less and less every month.
The more you can study and learn about how to manage money, the better off you will be. Try not to depend too heavily upon money managers who think that everything will continue to get better and better. Those people rely too heavily on rosy government reports which are rigged and skewed to make the government look better than it is.