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Buying foreign currency


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There has been talk at work about buying the new Iraqi money and holding on to some for awhile. Thinking is, once the country settles down and the economy starts to grow, their money will be worth a great deal more.

What is everyones thoughts on it?

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It depends on what your investment strategy is.

People have already done that with other countries in the past but it entirely depends on how that country rebuilds itself.

I remember a buddy of mine used to work at a currency exchange for a number of years. The Russian ruble was practically worthless even though the Soviet Union had crumbled and Russia still had enormous natural resources yet to be tapped.

Some countries go through an economic rebirth while others don't.

And it also depends if your investment strategy requires waiting, even for a number of years.

Although others may disagree, I personally think that buying a small amount of currency would be interesting as well as other investments in that country that are now emerging. However I don't have the cash so that is a moot point for me right now.

And please... No political tirades... This is just an interesting investment question...

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Yeh, I catch that once in a while now too... they want so badly to hype the NID, but they can't because it's not traded on the ForEx yet.

Most important: don't invest more than you're willing to lose. A lot of people went overboard with the hype that the Dinar will once again reach it's pre-war rate of 3.40 to the U.S. dollar.... some even mortgaged thier homes. :roll:

The hype was fueled further when seller's brought up what happened to the Kuwaiti Dinar dropping to .10 to the U.S. dollar and shot back to over $3 after Desert Storm. It's at $3.42 right now.

It sealed the deal for those looking to be overnight millionaires when word got out Warren Buffet had taken advantage of the Kuwaiti exchange rate... they assumed the same would happen for Iraq simply because they're sitting on oil and natural gas reserves. Not quite that simple.

You also need to get farrrr away from U.S. media if you're going to get any kind of true sense on what's going on over there - and what I mean by that is the Financial News from the Middle East - not just reports on what bombs blew up this day which all U.S. media is concerned about.

U.S. media does not carry the kinds of stories you as a Dinar investor should be looking at.

Perfect example is three articles I was able to link together with a little research...

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11th Jan 2006 : Web Edition No: 12394 http://www.arabtimesonline.com

Indicating the need for launching a campaign to educate citizens on the terms of loan contracts, the MP urged CBK to closely monitor the activities of all local banks and investment companies to protect the interest of citizens.

Rapporteur of the committee MP Abdulwahed Al-Awadhi said “the decision to link the Kuwaiti dinar with the US dollar was taken at the GCC Summit in Manama where all member states decided to peg their respective currencies to the dollar as a part of the preparation to unify GCC currency by 2010.”

Raising interest rate by local banks is due to inflation in the country, and connected with technical factors related to tying our currency with $ and strictly concerns the Kuwaiti economy. “Local banks have increased the interest rate due to the inflation in Kuwait,” he said. “This is also connected to some technical factors related to the linking our currency to the US dollar.”

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Al-Ateyah: Iraq can join the GCC http://www.arabicnews.com

Gulf-Iraq, Politics, 5/27/2003

The secretary general of the Gulf Cooperation Council GCC Abdul Rahman al-Ateyah said that there is nothing that prevents Iraq's gradual joining of certain offices of the Gulf Cooperation Council after stabilizing of its conditions and forming its legitimate government.

In a press conference he held on Sunday evening on the occasion of the GCC secretariat's celebration of its 22nd anniversary, al-Ateyah said that "Iraq can join certain offices of the GCC, the same as Yemen which is now a member in many of the GCC offices," adding that Iraq was a member in all commissions and councils in the context of the Arab Gulf states and it is its right to play its due role in these organizations and also in regional and international organizations.

Al-Ateyah noted the participation of the GCC member states in rebuilding Iraq through measures taken by the Gulf Ministerial council in its two meetings in Kuwait and Riyadh to provide relief aids and humanitarian support for the Iraqi people. He stressed the participation of the GCC in any program set for rebuilding of Iraq due to the relations of neighborhood and partnership in the Gulf region.

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November 16, 2005: 10:45 AM EST By Jeanne Sahadi, CNN/Money senior writer

NEW YORK (CNN/Money) – The tax panels of the House and Senate each passed tax bills Tuesday evening that differ in two key ways: Only the House version calls for an extension of the reduced rates on capital gains and dividends; while only the Senate version calls for major AMT relief in 2006.

After postponing its vote three times in less than a week, the Senate Finance Committee finally passed a revised tax bill that omitted a provision that would extend reduced investment tax rates.

Sen. Charles Grassley (R-Iowa), chairman of the committee, had included a one-year extension in his original proposal but dropped it when it became clear the bill would be defeated by the stiff resistance to the provision from all the Democrats on the committee, as well as one Republican – Sen. Olympia Snowe of Maine – whose vote was needed to pass the bill. The Committee has 11 Republicans and nine Democrats.

The provision called for capital gains and dividends to continue to be taxed through 2009 at 15 percent (5 percent for low and middle-income taxpayers, reduced to 0 percent in 2008). Those rates are currently set to increase after 2008.

Opponents of the measure say it's hard to justify an extension of a tax break that disproportionately benefits higher income taxpayers when lawmakers, under pressure to reduce the deficit, are also proposing to cut spending on programs like Medicaid and food stamps, which affect the poor and working poor.

Proponents, meanwhile, say the tax cut extension is desirable sooner rather than later because delay might create uncertainty in capital markets. And, in general, they say the reduced investment tax rates have boosted stocks and the economy.

The Senate Finance Committee's tax bill was passed by a vote of 14 to 6, said committee spokeswoman Jill Gerber. Snowe voted in favor of it as did three Democrats on the committee -- Sen. Max Baucus (D-Montana), the committee's ranking Democrat, Sen. Blanche Lincoln (D-Arkansas) and Sen. Charles Schumer (D-NY).

The absence of the investment-tax-rate extension in the Senate bill doesn't mean the prospects for an extension are dead.

The House Ways and Means Committee passed its own amended tax bill Tuesday evening, which includes an extension of the reduced capital gains and dividend tax rates for two years through 2010.

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You also want to watch what's happening with the ISX (Iraqi Stock Exchange) http://www.isx-iq.net/

Future Outlook 2006

Iraq Stock Exchange

Posted: Wednesday, 28 Dec 2005 http://www.feas.org

After the moving to it a new location in the year 2005 Iraq Stock Exchange expects to execute the following plans in 2006:

1) Full execution of the Electronic Trading system;

2) Application of the Central Depositorys role of keeping shares;

3) Development of a training program in trading;

4) Granting of permission to the non Iraqi Investors for Trading;

5) Joining the International and Arabic Federation for Exchanges;

6) Acceptance for listing Iraqi unlisted Companies;

7) Using New Financial Investments especially Governmental and Non Governmental Funds;

8) Restricting the role of ISX in Privatization of General Sector Companies; and

9) Introduction of a new composite index in cooperation with Dow Jones. The index will be free float weighed index.

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There's also an interesting "discussion" that's been going on over at www.fatwallet.com about the NID for the past 714 days. It comes down to whether you believe in it or not - just like with any other investment you make.

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Generally best to stay away unless you like to gamble. And if you do, tread lightly. Currency exchange is usually highly leveraged (ie. a 1% decline on your end of the currency exchange = 100% loss).

If you need some added excitement, my suggestion is to invest in companies that do business in emerging markets or even Japan. They are crushing it right now. And it is likely the dollar will fall this year. If you're investment is being held in Yen while that happens, then you get the added spread.

No sense in exposing yourself to a detrimental loss. Not worth it, unless of course, it is play money that you won't think twice about if you get wiped out.

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Generally best to stay away unless you like to gamble. And if you do, tread lightly.

Any time you take cold hard cash out from under your mattress and try to make it earn more money for you, you're taking a gamble, true?

You're right on - don't risk more than you can afford to lose.

Most important - do your homework.

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Generally best to stay away unless you like to gamble. And if you do, tread lightly.

Any time you take cold hard cash out from under your mattress and try to make it earn more money for you, you're taking a gamble, true?

You're right on - don't risk more than you can afford to lose.

Most important - do your homework.

AMEN BROTHER!!!!!! :D

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Generally best to stay away unless you like to gamble. And if you do, tread lightly.

Any time you take cold hard cash out from under your mattress and try to make it earn more money for you, you're taking a gamble, true?

Even leaving your money under your mattress is still a risk... Fire, burglary, snooping relatives, etc...

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Generally best to stay away unless you like to gamble. And if you do, tread lightly.

Any time you take cold hard cash out from under your mattress and try to make it earn more money for you, you're taking a gamble, true?

Even leaving your money under your mattress is still a risk... Fire, burglary, snooping relatives, etc...

At the risk of being redundant, you must do your homework. Everything you do involves a degree of risk; if you are knowledgeable about what you want to do you reduce the risk.

As someone above, so eloquently stated, even having your money in the mattress is risky.

But will you live your life in fear of loosing your money and deprived yourself from being successful or will you make the plunge and find what you are really made of?

Just a thought.

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Very true. The most 'successful' people are risk-takers. Many have fallen flat on their faces along the way - but they recovered. And learned. And never made the same mistakes again....

.... or as a wise man once said... "What are you gonna do? Eat at Wendy's and play with your d*ck 'till the end of time???!!!" ~ George Carlin

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Very true. The most 'successful' people are risk-takers. Many have fallen flat on their faces along the way - but they recovered. And learned. And never made the same mistakes again....

.... or as a wise man once said... "What are you gonna do? Eat at Wendy's and play with your d*ck 'till the end of time???!!!" ~ George Carlin

:lol: lmof!!!!

Extremely successful people have that trend in common, risk taking!!!! “a wise man learns from his mistakes, a wiser man learns from the mistakes of others”

Think about that one!

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