Happy Monday Dinarians,
I can’t tell you how AWESOME I feel this morning – just minutes ago after I logged in to LJ’s Next Step Skype News Room and I saw a REAL NEWS Article posted by “MyDigitalDr” one of the room’s active members.
This Article is from March 25, 1991 and is from The New York Times (Archive) – It is titled: “AFTER THE WAR; No Electricity but Kuwait Reopens Its Banks” and among many things it specifically talks about Kuwait’s Central Bank’s “RV” of their KWD (Kuwaiti Dinar) after Saddam had invaded Kuwait.
Here is the article – I have highlited the exchange rate for you.
By DONATELLA LORCH, Special to The New York Times
Published: March 25, 1991
It still has no water and little electricity or food, but Kuwait revived its banking system today, introducing a new currency.
Banks reopened for the first time since Iraqi occupation forces shut them down in December. Thousands of people lined up to exchange their old Kuwaiti dinars for crisp new ones and to withdraw a limited amount of money.
Without electricity, the banks services were slow, limited to money exchange and withdrawal. There was no telex, no electronic money transfer and no telephones. The computers were unusable, so all transactions had to be entered by hand.
“It’s like going back 20 years,” said Mohammed al-Yahya, the manager of the Commercial Bank of Kuwait, the nation’s second-largest bank. Seized Dinars Canceled
The Central Bank is canceling the value of Kuwaiti dinars that were seized from the Central Bank and put into circulation by the Iraqis. The invalid serial numbers were posted today in front of all banks in the city.
All other old dinars can be exchanged for new ones on a one-to-one rate until May 7, when the old dinars become invalid. The new official exchange rate is 3.47 American dollars for one new Kuwaiti dinar.
Although it is severly handicapped without electricity, the Commercial Bank, like many other major banks, was able to… [Continue Reading on NYTimes Site]
Now you can know with CERTAINTY that Kuwait did in fact “RV” their Currency for 3.47 KWD to $1.00 USD – and friends I’ve been searching for this fact based article for years, and poof, out of the blue, “MyDigitalDr” on LJ’s Board found it and posted it. So, thanks to you, whoever you are. Also, thanks to the NY Times for including it in their Archives – that is really awesome!
To those out there who claim that it is just not “possible” for Iraq’s Central Bank to “RV” the IQD because it has “never been done before” – THEN TELL THEM TO READ THIS NEW YORK TIMES ARTICLE, AND SEE HOW THEY RESPOND!!!…
I have always said, I own what I can afford to LOSE if the Iraqi Dinar never significantly increases in value (a.k.a. “RVs”). Therefore I only own what I hold in my hand.
Personally, I still don’t feel comfortable with the idea of “lay-a-ways” and “reserves” – so I am speculating / gambling with just a small amount of my “discretionary” or “throw-a-way” funds – that is it!
If you are NOT comfortable with it – then don’t buy it. If you own some now, then sell it back to a Dinar Broker of your choice.
And friends, that is only what I would suggest to you, if you are interested in the possibility of the Iraqi Dinar increasing in value at some point in the future (hopefully sooner than later) then only buy and hold what you can “throw away” if it never does significantly increase in value.
~ Mr. IQD