Back in 1990, 1 KD was worth around $4 US. After Saddam invaded, the currency went to near zero. Most people simply thought that Kuwait had ceased to exist as an independent country. However, within a year of liberation, the KD was almost back up to its pre-invasion value. There were people, who looking long term, bought up KD and made massive fortunes.
As I pointed out earlier, the Iraqi dinar was worth over $3 US before the invasion of Kuwait. Iraq's currency has had a historical tendency of being high value, but the aftermath of the Gulf War and over a decade of international isolation destroyed Iraq's economy. The theory goes that Iraq, now being free of international sanctions, selling its oil in a market where cost per barrel is far higher than in 1990, flooded with foreign investment, and with a governmant backed by the US, will be able to rebound economically. All of this does tend to support the notion that the Iraqi dinar has a very good chance of having value near to or equal to what it did 17 years ago.
IMO, no country with that much oil is going to have a near worthless curency for long. It's not going to happen over night, but I think it will happen. When I invested in the new dinars, I was looking at least 10 years down the road. The bump in value currently under way shows it is moving in the right direction.
Flame » in reply to corrected blockquote
Same thing happened with Kuwaiti dinars.
The whole thread (46 posts)
- Our resident poet spoke sweetly of the Iraq War
- Another war poem
- re: "resident poet"?
- re: And TB could predict !
- Boy, did you miss the point.
- It was the expectations raised by Bush & Cheney.
- "hopes were in trumpeting negativity "
- Boy, did you miss the point.
- The Song of Battles
- And LJ, if you're out there..........