The Kuwaiti Dinar NEVER Revalued!

/ Marcus Curtis

Earlier today I received an email from Baghdad Invest. He left a link to an article written by Mr. IQD. After reading Mr. IQDs article I Just had to leave a comment. I came back later in the day only to find that the comment had vanished. It is missing! I don’t know what happened but I now feel a need to respond to this in an effort to set the record straight.

Mr. IQD posted an old article he found through a person who goes by the name “MyDigitalDr” Mr. IQD makes the claim that this article validates and confirms that Kuwait did indeed revalue their currency. The link to the article is found here.

http://www.nytimes.com/1991/03/25/world/after-the-war-no-electricity-but-kuwait-reopens-its-banks.html

Here are is a small part that was quoted by Mr. IQD

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.

Mr. IQD goes on to say the following.

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!!!…

http://mriqd.com/2014/06/30/eureka-ny-times-article-confirms-kuwaits-1991-iqd-rv/

Well I left a response in the form of a comment and it was rather long. I made every effort to be polite. I came back later and found that my comment was no longer there. So I will now include my original comment

The Kuwait RV was one of the reasons I invested in the dinar in the first place. It was articles like this that caused me to have confidence in my investment. On the surface this does look like an RV. But the fact remains that Kuwait never revalued their currency. Kuwait redenominated their currency. What is an RV? It is a policy decision from the central bank to change the value of its currency. It can only happen to pegged currencies. This is because the market determines the value for all those currencies that float. This is the standard definition of an RV.

The Kuwaiti Central Bank NEVER adjusted the rate of the dinar. The rate plummeted when Saddam invaded the country and took over the central bank. Everyone was instructed to trade the Kuwait dinar for Iraqi dinar in October of that same year. Speculation drove the price down. Once Iraq was kicked out of Kuwait it took 7 months to get the country up and running again. They had to put out fires because the oil wells were set ablaze. The value of the Kuwaiti dinar was reestablished after Iraq left. The Kuwaiti central bank redenominated the currency because Saddam left with a lot of Kuwaiti dinar. But in the exchange there was no change in value.!

Even Wikipedia acknowledges that this was a redenomination and not a revalue. This scenario is a lot different then what gurus say is going to happen to the dinar. The claim is the dinar will revalue which is due to a policy decision. That is not what happened in Kuwait. The Kuwaiti dinars change in value was due to speculation in the currency itself. It is nothing the central bank controlled. When the country was invaded the value fell because no one new Kuwait’s future. When Kuwait recovered the value came back. The central bank had nothing to do with the change in value! It was perception of a fiat currency and the fact that people lost faith in the Kuwaiti dinar that changed its value.

So there was never a Kuwaiti revalue! And given the very definition of revalue it has never happened before on the scale of what people expect from the dinar. There has never been a revalue over 50 percent.

We need to also consider that Iraq has over 34 trillion dinar in circulation. The dinar is backed by U.S. dollars. They don’t have enough dollars in their reserves to back any kind of significant revalue. Given the fact that there is only around 12 trillion U.S. dollars in America’s M2 money supply it is highly unlikely that Iraq will ever get enough reserves to revalue to any significant level

At least 28 trillion of the Iraqi dinar in circulation today is outside of Iraq’s border. When dinar is exported it is exchanged for US dollars. That money goes straight into their reserves. I agree that Iraq will take the path of Kuwait. They will redenominate their currency. When they do this they will not honor the currency outside of their border and they will cite their currency laws as the reason. Then they get to keep all of that reserve that was collected over the years due to the export of their currency.

Now this comment is gone. For some reason It vanished. So allow me to elaborate a little more. I bought Iraqi dinar based on a lot of lies that I believed. I fell for it hook line and sinker and at the time I knew nothing about how currencies actually worked. I spent 4 years researching economics after I purchased dinar.

Two years after my purchase I am researching economics and I discovered that there was never a Kuwaiti Revalue. In fact I began to research the other lies I was told only to find out that nothing that I was told was even true! That is when I decided to sell my dinar and I started posting the truth about this fraudulent so-called investment on my blog. I spent about two years posting the facts instead of make believe wishful thinking. So now let’s go a little deeper.

The paragraph in question is this one

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.

Notice that they are changing out an old currency for a new currency. This is a redenomination it is not a revalue. Revalues are slight adjustments in the value of currency and they only happen to pegged currencies to combat inflation. Now notice these two paragraphs from the New York Times article.

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.

So all the dinar was exchanged with no change in value! One old Kuwaiti dinar was equal to one new Kuwaiti dinar! Wikipedia says,

The third series was issued on 20 February 1980, after the accession to the throne of Emir Jaber al-Ahmad al-Jaber al-Sabah, at that time in denominations of 1⁄4, 1⁄2, 1, 5 and 10 dinar. A 20 dinar banknote was introduced on 9 February 1986. As a result of the state of emergency after Iraq’s invasion of Kuwait, this series was ruled invalid with effect from 30 September 1991. Significant quantities of these notes were stolen by Iraqi forces and some have appeared on the international numismatic market.

http://en.wikipedia.org/wiki/Kuwaiti_dinar

So the fourth series was introduced with no change in value! The same denominations were issued in a new series. This is because Saddam had stolen a lot of Kuwaiti dinar. That was the reason for the redenomination. So let’s recap the actual events

  • 1. Saddam’s forces invade Kuwait and they over run the country.
  • 2. While some people were captured a lot of people flee taking with them as much money as possible (Kuwaiti dinar)
  • 3. Because Saddam’s forces occupy Kuwait the value of their currency begins to fall. Those outside Kuwait exchange dinar for a lower rate.
  • 4, In October of that same year Saddam makes the Kuwaiti dinar illegal and he orders that all Kuwaiti dinar must be exchanged for Iraqi dinar. He pegs the Kuwaiti dinar to the Iraqi dinar. As a result the Kuwaiti dinar which is still in circulation falls to its lowest level.
  • 5. American forces liberate Kuwait. When Saddam’s forces leave they take a lot of Kuwaiti dinar with them. This dinar was stolen from the Kuwaiti Central bank.
  • 6. The Kuwaiti government is put back in power and the Kuwaiti dinar is restored to its original price before the central bank was shut down because of Iraqi troops.
  • 7. There was a redenomination for the sole purpose of invalidating the entire dinar supply that was stolen from Kuwait. The important point is when the redenomination occurred there was no change in value. The old dinar was worth just as much as the new dinar. Here are two more articles to go with the New York Times Article.

http://articles.latimes.com/1990-09-25/news/mn-1116_1_kuwaiti-dinar

http://articles.latimes.com/1991-03-24/news/mn-1395_1_kuwaiti-banks

This is a lot different then what people are claiming the Iraqi dinar is going to do! Gurus claim that a policy decision made by the central bank will raise the value of the over 70 trillion dinar anywhere from 100,000 to 400,000 percent. And this has never happened before! This is not what happened in Kuwait! It will not happen for obvious reasons. First the amount of hyperinflation that will come from a move like this will destroy the currency. Second nations want to have the lowest currency because it helps them with exports which strengthens their economy and provides jobs.

So if this post came up during a Google search and you friends are trying to tell you to buy dinar or you are new to the dinar world, I am providing this warning for your benefit. Run away from this so-called investment! There is nothing but hype and rumor that is repeated over and over again just to sell this worthless paper.

If you still believe the dinar will revalue after reading the articles I posted or watching events like ISIS unfold in Iraq then for one last time I appeal to your common sense. It is time to set aside all the lies and seek out the truth. Wishful thinking is not going to make you rich. Denying facts won’t help you get the things in life you want. Pipe dreams filled with hype have no chance of coming true. It is high time to face reality and set aside the foolish notion that over 70 trillion dinar is magically going to be worth anywhere from 70 trillion to 280 trillion U.S. dollars. I know what I am saying is not popular and it is not what dinar investors want to hear. But God as my witness, I am speaking the truth! ultimately it is the truth that will set you free!

23 thoughts on “The Kuwaiti Dinar NEVER Revalued!”

  1. Hi, So from what i have read it seem that the currency left the market during the invasion causing the value of the Kuwait Dinar to plummet in value. Once order was re-established in the country they issued new currency and had an exchange period. Of which you could exchange one Kuwait dinar or 3.47 in dollars. SO, During the period when Iraq was in Kuwait and the value is in the tank to an American like me all i know is I can buy 1 million Kuwait dinars for 500 dollars (just an example). So once they got control of Kuwait and issued new Dinars and they value “returned” I could now take the 1 million KWD and trade it for 3.47 MILLION DOLLARS!!!!!! To people who dont know that the currency was high before the war THIS IS A RV AND GREAT PROFIT FOR THEM. In most of the comments I see we are being very literal and hung on people using the phrase of RV. Which to some people it is a RV because 90% of them don’t know what the value was before it tanked.

    http://www.investopedia.com/terms/r/revaluation.asp

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    • You should have read the link you supplied a little more closely. This is what it said,

      “A calculated adjustment to a country’s official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country’s government (i.e. central bank) can alter the official value of the currency. Contrast to “devaluation”.”

      One of the main differences between what happened in Kuwait was the fact that value fell due to market demand. The rate was never adjusted by Kuwait’s central bank. People lost faith in the fiat currency and as a result the rate plummeted. They thought the currency was going to collapse. It was never treated as an investment. This was not a rate adjustment by the central bank. After the rate was restored then and only then the currency was changed out with new currency with no change in value!

      What the gurus claim is that Iraq’s currency will adjust because the central bank will revalue their currency. When they adjust the rate they will issue new notes and redenominate at the same time. This is not what happened in Kuwait even though they hold Kuwait up as an example.

      Furthermore there has never been a revaluation of this size in all of history. not only that there has never been a redenomination with a revalue along the magnitude that the gurus claim.

      If you look at redenominations you will discover that every one was done because of hyperinflation. The governments currency was over printed. Value is not added when the currency series is changed out. In many cases redenominations were done to prevent the currency from collapsing.

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      • You are holding on the the Central bank thing. The fact that Iraq went in and forced them to change from Kuwait dinar to Iraq dinar was the choice forced on them. By hook or by crook it was done by the central bank. I never saw a article saying during the take over how much the Kuwait dinar was worth. So it is safe to assume that during that take over and since the currency tanked that dollar over powered it during this time. Thus, leaving room for profit. No way you can show me something that says Kuwait dinar was still 3.47 to the American dollar during the invasion. Even though they were force away from the currency it still was a devaluation. No investers, no currency, no value.

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      • Ok you still don’t get it so I will try and type slower.

        1. A revalue is something that only a central bank can do. It can only happen in a country where the currency has a controlled rate because the currency does not float.

        2. The gurus have said on behalf of the dealers that Iraq is going to REVALUE its currency well over 100,000 percent. If Iraq’s currency goes to 1 penny that would be a 1,000 percent revalue. If it goes to 1 dollar that would be a 100,000 percent revalue.

        3. Currencies don’t do this and there has never been a time in history where this has happened. A central bank has never revalued a currency beyond 35 percent at any given time.

        4. In order for the gurus to spread this lie they claim that Kuwait revalued its currency. This has never happened! Kuwait never adjusted its currency. The central bank never changed the value of the Kuwaiti dinar before or during the invasion. One of the first institutions captured by Saddam was the Kuwaiti central bank. Remember a revalue is done by a central bank and it is not market driven. The claim by the guru’s that the Kuwaiti central bank did this is a lie. it is not a valid reason for Iraq revaluing its currency!

        5. While the value of the Kuwaiti dinar fell and rose again it had nothing to do with the central bank’s policy as the guru’s claim and that is the point. You can’t hold up an event that was brought about during war and had nothing to do with revaluation and make the claim that the central bank of Iraq will revalue its currency because of the things that happened in Kuwait. That is a flawed analysis.

        6. You should know that at the time Kuwait only had about 32 billion in currency. Iraq has well over 70 trillion in currency. Right now they have over 35 trillion outside of the banking structure alone. This is not the same thing or even close to the same events that happened in Kuwait, therefore you cannot compare the two as being equal because they are not!

        7. It is also worthy to note that the dinar gets its value from the U.S. dollar. Iraq holds dollars in reserve to back the dinar. There is not enough U.S. dollars in Iraq to bring the currency to the value to a penny (1,000 percent revalue) let alone a dollar.

        8.The whole Kuwait thing is used to deceive people into believing that Iraq’s central bank will soon increase the value of the dinar through a revalue and nothing could be further from the truth. This is why dealers are being indicted and others have civil complaints. Wait around a few more months and more information will surface from the government’s legal action to prove my points.

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  2. marcus you are right with KUWAIT but iraq was taken over by the us and no currency has been taken from another government . Except for the U.S. we hold IRAQI dinar in our reserves and no other country. Just think if the government screwed over a few hundred thousand citizens like that. NOT GOOD my friend. We all bought the currency legally. So KUWAIT & IRAQ is not the same

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    • I have got to respectfully disagree with you Lewis. In the first place the United States government does not have trillions of Iraqi dinar for investment reasons. How do I know this? A few years back the government arrested and prosecuted the B.H. Group for their involvement with the dinar and operating a fictitious hedge fund. If you read through the indictment you will find all sorts of things that are said about the dinar that is not true. I am going to quote directly from the indictment.

      “15. BRADFORD HUEBNER, RUDOLPH COENEN, CHARLES EMMENECKER, and MICHAEL TEADT often discussed during weekly telephone conference calls with potential investors, the U.S. Department of the Treasury holding the Iraqi dinar, further alleging the Department of the Treasury held trillions of lraqi dinar for investment purposes. In fact, the U.S.

        Department of the Treasury does not hold any Iraqi dinar for investment purposes and holds only a nominal amount for use in daily operations.

      It was further the purpose and object of the conspiracy that BRADFORD HUEBNER,”

      The government got convictions based on these statements. The indictment is very enlightening. there are other legal documents too. You should read through the Civil complaint against Sterling Currency Group. You will find that we have all been told lies. In reality the dinar is not a reserve currency and the U.S. does not hold it for that reason. Out of the the 89 trillion dinar in Iraq’s possession over 35 trillion has been released from the bank. Their reserves are falling as they use them to make up government shortfalls because of the low price of oil. The currency is actually in a lot of trouble right now. It is no longer backed 100 percent with reserves as it was in the past. This is not because of the U.S. This is because of Iraq and only Iraq.

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  3. I mean by what your saying is exactly what I’m saying just in easier terms I know when people use certain terms it really makes people go off the far end when they say revalue they mean back to the old status

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    • No we are not saying the same thing. The revalue as defined by the dinar community is a process where the central bank revalues a currency. When they do this they don’t care about previous values. It is about keeping inflation in check. This is why they are not going to take over 89 trillion dinar and make it worth more than the global economy. 30 Trillion is sitting outside their borders. To put a value of just one dollar on that currency is roughly equal in value to America’s M2 money supply times 3! They are not going to do that and keep inflation in check.

      When the situation in Kuwait happened It was private citizens dumping their cash because Kuwait was no longer a country. and the surrounding central banks were not giving a fair exchange rate because they had no assurance that the currency would be worth anything. that is why Kuwait’s value dropped to 10 cents to the dollar. It is also important to note that Kuwait only had about 32 billion in circulation at the time.

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  4. so If I had Kuwait old and exchanged it for the new and the new is worth 3+ U.S. dollars don’t I still make a profit I mean that’s technically what we are hoping for in the Iraqi dinar situation. buy it as a crashed currency and wait for them to so called revalue meaning Iraq dinar getting back to its original value???

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    • It doesn’t work like that. First if you had the old Kuwait dinar you would not be able to trade it in as the trade in period expired long ago. Second during the course of the trade in period for Kuwait no value was ever added to the Kuwaiti dinar.

      The whole thing was a lie designed to get people to buy the Iraqi dinar and that’s the point. The currency never revalued and there are people in the dinar community that did not make the money off of the kuwaiti currency as they claim. The ones who made any money at all were the bankers as they held a lot of the currency, and even so this was private market speculation. It was not generating wealth based on a central bank’s policy to revalue their currency like people claim Iraq is going to do. It is not the same thing and the Kuwaiti Revalue never happened!

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  6. So… I don’t see the downside. Lets say i buy some and it does revalue, then awesome made some money. OR they redenominate and i get to trade it back in for what i bought it for no loss in value.
    Thats literally 0% risk… might as well buy some and if it does it does… if not then who cares you get your money back.
    Is that not what will happen?

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    • OK lets talk about the downside and the risks

      1. you purchased the dinar at a 20 percent markup. This means that if you were to sell right now without any change in the value of a the currency you would lose 20 percent off the top. On a $100.00 investment this is really no big deal,but because gurus advertise this as a sure thing people tend to over leverage and many spend thousands of dollars. Some people even get loans to buy dinar. Some people take money out of their retirement accounts to get dinar. Other people sell their valued possessions and buy dinar.

      Sure you might be able to sell your dinar on eBay with the 7,000 other auctions that are on eBay. In the event of a redenomination you won’t be able to use eBay. Nobody will buy it. You will be stuck with a dealer and that is if the dealer is even willing to buy it back in the event of a redenomination. If they are be prepared to lose more than 20 percent! There will be many dealers that will close shop once the currency redenominates. You won’t be able to find them.

      2. One thing is certain, the dinar will not revalue. For the the dinar to go to 1 penny would equal a 1,000 percent increase in value. Revalues don’t work like this. Revalues only happen as a policy decision from the central bank and they only happen in 5 to 35 percent increments. Even China’s revalue of 35 percent was spread out over a span of years. Five percent here and 3 percent there. That is how real revalues happen. A dinar revalue equal to 1 dollar would be equal to a 100,000 percent revale! Not only has this never happened in all of history, but a revalue of this size would dump an equivalent value of 87 trillion dollars in the global economy, The global economy is worth about 80 trillion right now. This in turn would debase the dinar through massive hyper inflation. The mechanics of a revalue in any scenario above 35 percent simply won’t work.

      3. The gurus are confusing redenomination language with revalue language. Statements like increasing the value and removing the zeros can be found in redenomination language. Don’t take my word for it! Spend some time looking at redenominations. look at news articles regarding Turkey’s redenomination and other redenominations. You will find that the exact same terms the gurus are passing off as meaning revalue are actually redenomination terms.

      At this point I will add that Iraq may not redenominate. This was a policy that Shabibi was pursuing. Things have changed and Iraq may not redenominate at all. They may keep things just the way they are. This is anyones guess but there is the possibility that Iraq won’t do anything.

      4. The dollar is stronger than ever. The dollar just had one it’s best years in 2014. I say this because a lot of gurus say that a weakening dollar will be the reason for the revalue. That is typical of guru double talk crap. They throw false information out there and people believe it without verifying anything! But the dollar is stronger not weaker! This will in turn create more of a demand for the dollar and less for the dinar.

      http://money.cnn.com/2014/09/29/investing/us-dollar-strong-four-year-high/

      http://www.bloomberg.com/news/articles/2014-10-01/euro-near-two-year-low-before-ecb-as-share-of-reserves-declines

      The truth is you have been told lies. All of us have been told lies! I use to own dinar. but once I figured out it was a scam I sold it as quick as I could. I took my 20 percent loss and learned a very good lesson from this. That is don’t take things at face value because things are not always what they appear to be! VERIFY EVERYTHING EVEN THE THINGS I SAY!

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  7. Marcus, glad to see you post again. I also had the same thing happen to me that happened to Mike. I tried to post a comment and it was never approved. I totally agree with what you are saying and what I don’t get is the fact that a lie is a lie no matter what. Big deal he hates gurus, then he posts something like that. I thought we were in this for the truth and I agree with you sometimes the truth hurts the heart allot.

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    • Robert that is just more evidence that Mr. IQD is not approving anything he deems negative towards his Kuwaiti Revalue post. He chooses to believe a lie rather then looking at the facts. I don’t think people who are involved in this investment realize how much bondage they are in. This is not just a monetary investment. It s also an emotional one. People tie all their hopes and dreams into this thing. They really believe they are going to be rich and their unrealistic dreams will become true. Because of this most dinar investors ignore other opportunities in things like education and all the while real investment opportunities are ignored.

      Instead time is wasted following every move Iraq makes and watch what all the news articles say about Iraq, its budget, and its currency. Family and friends get put on the back burner in a lot of cases and people are just looking for the false way of escape that they believe is coming as they waste precious time waiting for the mythical revalue.

      True freedom will only come when these investors realize that they were scammed and they begin to make other plans for their lives. Which means forgetting about Iraq and the dinar and returning to the life they had before they learned about this investment.

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  8. Thanks Marcus, I tried to comment on MrIqd and he didn’t let my comment through neither. He loves to see people bash the gurus but he still believes in a RV of the dinar.Don’t know what his motivation is but glad you came to the rescue TY Mike Diston

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    • Mike it is good to hear from you. I don’t get it either. Why would he post something that is so blatantly wrong and not allow comments from people who disagree with him? or at least address the concerns that are in the comments. Mr. IQD has got to know there has never been a Kuwaiti Revalue. To me this makes him no better than the very Gurus he criticizes! He is welcome to come here and comment and present his side of the story. I promise I won’t delete it just because I may disagree. Those who seek truth don’t fear opposing points of view!

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  10. I wish you could get with the dinar guru site and they would post your information, after 7 plus years invested I am feeling that I am chasing the biggest dangling carrot ever. These ditecare money makers will die if all of this is true, but common sense dictates that every week of the past 7 years we get one guru after the other first claiming we are there then we get the opps the government changes there mind, or this came up, so yes I feel we have been duped but my investment was small and not enough to slash my wrists over. So goodluck gettingnyour message out, but I have to agree, so if anyone wants to buy mine I would sell for 1 to 1…lol

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    • There is really no debate here. Those who still choose to believe that there was a Kuwaiti Revalue may do so for two reasons. First they don’t know how currency works and they don’t understand redenomination language and second they don’t want to see the truth because they would rather hold on to something that is not true. This is because it gives them hope. But the truth is false hope makes the heart sick. People latch on to this fable because they dream of being rich or they are looking for a way of escape from their present reality. So in desperation they believe garbage like the false kuwaiti dinar revalue because it provides a temporary means of escape. It gives them a sense of hope and security.

      Things change and situations change and anyone who wants better circumstances in their lives must first acknowledge the truth about a situation. Only then will the correct path be chosen and the proper escape will come.

      This post was not written for those who want to latch on to false hopes and endless debates. Rather it was written for those who have no real information or background about the dinar. It was written to provide a warning to prevent people from falling into the dinar trap. I provided a ton of links in my own research so people can make up their own minds. They don’t need my word for anything. They can decide for themselves.

      I have already been on countless dinar calls.Debates are done over opinions. I don’t debate facts. There was never a Kuwaiti Revalue and that is a fact. Whether someone chooses to believe that fact is entirely up to them. TNT has an Agenda and I won’t go into a forum that he controls. There would be no equal footing because he has control

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