By: Bob Lock

Perspectives on International Currency History & Revaluations

Introduction

I have spent many years educating people on the value and utility of trusts, and how to create and use them as Estate Planning tools. Recently, I have had the pleasure of developing educational materials for international currency speculators. In the many discussions I have had over the past several years, I have realized how few of those people that I have encountered have ever speculated in international currencies before now. And how even fewer have any understanding of the history of currencies and revaluations, and why their speculation in exotic currencies like the IQD, VND, ZIM and others has the potential to provide significant returns.

In point of fact, most people in the world have little to no understanding of either modern or historic monetary policies. So, for everyone’s edification I thought it appropriate to start with a look at how and why we got here, and why speculation in exotic investments like crypto-currencies or foreign currencies is not as crazy as some of your friends and family would have you think. So, let’s start at the very beginning and go from there.

Origins of Money: Palatial Credit, Not Barter

In ancient times, economies operated primarily on credit rather than direct barter. Neolithic and Bronze Age societies understood the time gap between planting and harvesting. When Babylonians frequented local alehouses, they didn’t carry grain in their pockets for immediate payment. Instead, they ran up a tab, settling it at harvest time on the threshing floor. The ale women who ran these “pubs” would then pay most of this grain to the palace for consignments advanced to them during the crop year. These payments were financial in character, not simple barter exchanges. Monetized grain and silver served as means of payment, mainly to settle such debts. This monetization was administrative and fiscal, with the palace or temples regulating weights, measures, and purity standards1.

From ancient currencies like the Greek drachma and Roman denarius to contemporary initiatives for a new reserve currency backed by the BRICS nations, the world of finance has undergone significant transformations that have shaped international trade, investments, and monetary policies. The historical evolution of currencies, along with shifts in global financial dynamics, and the ongoing efforts of the BRICS Alliance to challenge traditional monetary structures represent a complex interplay of economic history, geopolitical influence, and strategic cooperation in the modern era  that provide the backdrop for modern speculation in exotic currencies.

Coined Money in Ancient Greece and Rome

Ancient civilizations relied on precious metals like gold and silver to establish currencies that facilitated trade and commerce across regions. The Greco-Roman world witnessed the invention of coined money. This process was complex, dynamic, and often experimental, intertwining economics with cultural, political, and social developments that ultimately resulted in the system of currencies we have today.

Greek and Roman societies gradually adopted standardized metal coins, which bore official markings. These coins facilitated trade, enabled taxation, and became symbols of power and authority. The monetary practices that developed over time included transactional use of weighed bullion, until the concept of coinage which originated in the Greek region. Electrum, a natural alloy of gold and silver, played a significant role in this early coinage.

The Greek drachma and Roman denarius were among the earliest forms of currency used as mediums of exchange in the Mediterranean world, enabling transactions and economic interactions among diverse cultures. Throughout the Middle Ages, the Byzantine solidus and Islamic dinar emerged as prominent currencies, reflecting the economic influence and trade networks of the Byzantine Empire and the Islamic Caliphates. These currencies played essential roles in international commerce, fostering connections between Europe, Asia, and Africa.

The flourishing trade routes of the medieval period saw the rise of currencies like the Venetian ducat and Florentine florin, gold-based coins that facilitated transactions between Italian city-states and other European powers. The standardization of coinage and the reliability of these currencies contributed to the growth of long-distance trade and financial stability in Europe.

The exploration and colonization of the Americas in the Age of Discovery brought about the prominence of the Spanish silver dollar as a global reserve currency in the 16th to 19th centuries. The influx of silver from Spanish colonies in the New World led to the widespread acceptance of the Spanish dollar in international trade, shaping economic relations between Europe, Asia, and the Americas. In fact, the Spanish silver dollar was the basis for the original US dollar. The Coinage Act of 1792 established that a dollar was the basic unit of account for the new Republic, and its weight was based on the weight of the Spanish milled dollar at that time, which was 371.25 grains of pure silver.

In addition to the Spanish Dollar, in the 17th and 18th centuries the Dutch guilder played a significant role as a reserve currency within the Dutch colonial empire, together laying the groundwork for modern central banking practices and monetary policies. In fact, the Dutch Republic’s economic prosperity and financial innovations influenced the development of banking systems in Europe and beyond.

The 19th century marked the era of British economic dominance, with the British Pound Sterling emerging as the dominant reserve currency, solidifying its position after World War II through the Bretton Woods Agreement.

George Soros and the Demise of the British Pound: Black Wednesday

The dominance of the Pound Sterling lasted until George Soros, a renowned investor, made history by “breaking” the Bank of England on September 16, 1992, a day that became known as Black Wednesday.

Here’s how it unfolded:

The European Exchange Rate Mechanism (ERM), established in 1979, aimed to stabilize European currencies and prepare for the eventual adoption of the Euro, a new currency innovation that was designed for the unification of the major European economies and currencies. It fixed exchange rates to the German mark, the strongest and most stable currency in Europe. Fluctuations were allowed within a certain range, but if a currency hit its upper or lower limit, the central bank intervened to maintain stability.

Initially, Britain declined to join the ERM, preferring monetary independence. In 1990, under Prime Minister Margaret Thatcher, the U.K. joined the ERM to commit to European integration. However, problems arose: Britain joined at a high exchange rate (2.95 German marks per pound), hurting exports. Its economy was weaker, and inflation higher than Germany’s. External shocks from Germany’s reunification added pressure.

Soros’s Role in Black Wednesday

George Soros became skeptical of the U.K.’s ERM decision, and amassed a massive short position against the British pound, betting on its decline. On Black Wednesday, speculators like Soros forced the British government to withdraw the pound from the ERM. The pound rapidly devalued, leading to an estimated $1 billion profit for Soros and his Quantum Fund. The pound by that time had already lost its luster as a major international trade currency, but this event pretty much sealed its fate, and the US Dollar then became the standard.

The Rise of the U.S. Dollar as a Global Reserve Currency

The journey of the United States dollar (USD) as a global reserve currency began with historical events and strategic decisions. Let’s explore its rise and enduring influence:

The Evolution of United States Currency: From Constitutional Mandates to Modern Monetary Policy

Constitutional Foundations

The origins of United States currency can be traced back to the Constitution itself. Article I, Section 10 of the U.S. Constitution explicitly states that “No State shall… make any Thing but gold and silver Coin a Tender in Payment of Debts”1. This clause was intended to establish a stable monetary system based on precious metals, reflecting the Founders’ distrust of paper currency and desire for sound money.

The Spanish Dollar and Early American Coinage

In the early days of the nation, the Spanish silver dollar became the de facto currency due to its widespread circulation and consistent silver content. The Coinage Act of 1792 defined the U.S. dollar based on the Spanish milled dollar, specifying it should contain “three hundred and seventy-one grains and four sixteenth parts of a grain of pure, or four hundred and sixteen grains of standard silver”2.

The Act of April 2, 1792, established the first U.S. Mint and codified the use of gold and silver in American coinage. It set the silver-to-gold ratio at 15 to 1, reflecting the market prices of the time2. This bimetallic standard would persist, with some modifications, for well over a century.

The Federal Reserve Act of 1913

The establishment of the Federal Reserve System marked a significant shift in U.S. monetary policy. The Federal Reserve Act, passed by Congress and signed into law by President Woodrow Wilson on December 23, 1913, created a central banking system for the United States4.

In “The Creature from Jekyll Island,” G. Edward Griffin provides a critical analysis of the Federal Reserve’s creation and its impact on the American economy. Griffin argues that the Federal Reserve Act was crafted by a small group of powerful bankers and politicians to serve their own interests rather than those of the public5. Griffin contends that the Federal Reserve, through its ability to create money out of thin air, has led to economic instability, encouraged war, and ultimately acts as an instrument of totalitarianism5. He presents seven reasons to abolish the Federal Reserve, including its inability to achieve its stated objectives, its operation as a cartel against public interest, and its role in perpetuating a system of usury5.

I have personally been to the old JP Morgan winter hunting estate on Jekyll Island in Georgia, which is now the Jekyll Island Hotel. In the JP Morgan room there was a framed photograph of the representatives of the largest banking families in the world, along with the members of Congress that they controlled. Beneath the photograph was an excerpt from the autobiography of Paul Warburg, who detailed how the men in the picture secretly traveled to Jekyll Island and drafted the Federal Reserve Act using assumed names so that the servants would not know who they were. It is a fascinating story that all Americans should know about. Griffin’s book is the best source I have found for understanding how we came to be where we are in terms of the Federal Reserve, and the almost $36 Trillion in debt that this nation owes to private banking families.

In 1914, the first U.S. dollar bills were printed after the establishment of the Federal Reserve Bank. During World War I, the Allies needed supplies, and the U.S. provided them. The Allies paid the U.S. in gold, leading to the accumulation of gold reserves by the U.S. This pivotal moment set the stage for the USD’s ascent a global reserve currency. I highly recommend that you pick up a copy of “The Creature From Jekyll Island” if you want to know the history and truth about the Federal Reserve system, and why we need to return to the mandate of our Constitution. It is a book that really sparked my interest in this area. You can pick one up at Amazon at: (https://amzn.to/3VTWKZV)

Post-World War II Era: The Bretton Woods Agreement

After World War II, the U.S. emerged as the world’s economic powerhouse. In 1944, the Bretton Woods Agreement established the USD as the primary global reserve currency. Under this system other currencies were pegged to the USD, the USD was convertible to gold at a fixed rate, and the International Monetary Fund (IMF) and the World Bank were created to promote international monetary cooperation and development.

Current Status and Challenges

In 1971, President Nixon suspended the dollar’s convertability to gold, and effectively ended the Bretton Woods system. However, before it was relegated to the dustbins of international monetary history, it was replaced by the new petrodollar system that was rolled out soon after. The rise of the US Petrodollar system took shape in the early 1970s after the Nixon Shock ended the convertibility of the US dollar to gold. In 1973, the United States struck a deal with Saudi Arabia to standardize oil prices in US dollars. In exchange, the US would provide military aid and equipment to Saudi Arabia. This agreement facilitated the recycling of petrodollars back into the US economy and became the basis for the modern petrodollar system. Other OPEC nations followed suit, demanding payment for their oil exports exclusively in US dollars. This created consistent global demand for the US dollar and allowed the US to accumulate huge trade deficits which were settled through petrodollar surpluses recycled from oil exports. The petrodollar system, coupled with the dollar’s role as the world’s primary reserve currency, cemented the dollar’s dominance in global trade and finance for decades to come1.

The USD’s dominance has persisted due to the stability of this Petrodollar system, as well as factors such as:

• Liquidity: The USD is widely accepted and traded.
• Deep Financial Markets: U.S. financial institutions play a crucial role in international trade and finance.
• Global Trust: Investors and central banks hold huge quantities of USD reserves for trade purposes.

Attempts to Return to Asset-Backed Currency

In his book “Miracle on Main Street,” Tupper Saussy made the case that Americans have the legal right to use gold and silver as money, based on the Constitution’s provisions. Saussy correctly contended that no state or local government can force citizens to pay fines or taxes in Federal Reserve notes, only in gold or silver money3. While technically correct, this argument has not gained traction in the courts or wider society for the obvious reasons that the private banking cartel and its mainstream media minions control them and frustrate the efforts of the American people to use Constitutional money in their affairs or even educate themselves about that possibility. This is a great book that I encourage all Americans, and others around the world with similar systems to read. You can find it here at Amazon. (https://amzn.to/40cL3A7)

Until we either return to Constitutional money or go bankrupt, there will be challenges and shifts, and  will watch the dominance of the US Dollar slowly eroding due to a number of factors, including:

• Deficits: U.S. military spending and trade imbalances have led to increasingly unsustainable deficits. At present the US Debt balance is fast approaching $36 Trillion, causing rising concern for international trade partners. In fact, many countries that have had to maintain large reserves of USD for trade have begun to divest their holdings of US Treasuries in favor of conducting trade in their local currencies. The evolution of the BRICS alliance has sped this divestment up, which ultimately does not bode well for the USD.

The evolution of United States currency from its constitutional foundations to the current Federal Reserve system reflects a complex interplay of economic, political, and social factors. While the original intent was to establish a stable monetary system based on precious metals, the country has moved towards a fiat currency system managed by a central bank. This shift has sparked ongoing debates about the nature of money, the role of government in monetary policy, and the economic implications of our current financial system.

References

1 U.S. Constitution, Article I, Section 10, Clause 1.

2  The Value of Money in Colonial America. Coins.nd.edu.

3  Saussy, T. (1980). The Miracle on Main Street: Saving Yourself and America from Financial Ruin.

4  Federal Reserve Act. Investopedia.

5  Griffin, G. E. The Creature from Jekyll Island: A Second Look at the Federal Reserve.

6  Federal Reserve Act. Wikipedia.

The BRICS Alliance and the Quest for a New Reserve Currency Paradigm

In recent decades, the emergence of the BRICS Alliance—formed in 2006 and comprising Brazil, Russia, India, China, and South Africa—has reshaped the global economic landscape, challenging the traditional dominance of Western currencies like the US dollar and the Euro. In pursuit of greater economic independence and financial sovereignty, the BRICS nations have explored the creation of a new reserve currency that is backed by a diversified basket of their respective currencies or hard assets like gold.

The BRICS Currency Initiative represents a strategic push by these emerging economies to assert their influence in the evolving international financial system and reduce their dependency on Western financial institutions. With a combined population representing a significant portion of the world’s inhabitants and substantial economic output, the BRICS nations seek to create a more equitable and inclusive global economic order that reflects the diverse interests and priorities of emerging markets.

At the 14th BRICS Summit in 2022, leaders from the member countries reaffirmed their commitment to exploring the possibility of a new global reserve currency that would challenge the existing hegemony of Western currencies4.

Russian President Vladimir Putin and Brazilian President Luiz Inacio Lula da Silva expressed strong support for the initiative, highlighting the need to diversify the global economic system and reduce dependencies on a small group of reserve currencies. The BRICS Alliance’s efforts to promote the use of local currencies in trade transactions within the group have gained traction as a means to reduce reliance on the US dollar and Euro. By conducting trade settlements in their national currencies, BRICS countries aim to enhance financial autonomy, mitigate currency risks, and strengthen economic ties within the alliance.

In 2024, the BRICS Alliance embarked on a significant expansion initiative, inviting new member countries to join the alliance and further diversify its economic and geopolitical reach. The inclusion of Egypt, Ethiopia, Iran, and the United Arab Emirates as new BRICS members underlines the alliance’s commitment to broadening its scope and fostering greater collaboration among nations with shared economic interests and strategic objectives4.

In June of 2024 30 more countries applied to become members of the BRICS Alliance. This expansion of the BRICS Alliance represents a transformative shift in global economic governance, as emerging markets and developing economies seek to amplify their collective voice on the world stage. By expanding its membership and deepening collaboration with a diverse set of countries, the BRICS Alliance’s stated aims are to reshape the international financial architecture, promote sustainable development, and foster greater economic stability in a rapidly changing world.

Challenges and Skepticism

Replacing the USD is no small feat. The USD’s status is deeply entrenched due to historical precedent, trade relationships, and financial infrastructure. In addition, the BRICS face internal challenges, including differing economic structures, religious and political ideologies, and levels of development. Further, skeptics argue that the BRICS lack a unified vision and may struggle to coordinate effectively.

Potential Impact on Global Finance

A successful BRICS-backed reserve currency could reduce the USD’s dominance, potentially leading to a multipolar currency system. Central banks diversifying their reserves away from the USD portend major changes that could totally reshape the global financial landscape. This is manifesting in a world where BRICS Conducted $260 Billion Worth of Trade Without the US Dollar (As of April 2024)6.

BRICS Global Trade Figures

• BRICS accounts for approximately 20-21% of global trade, corresponding to an annual trade turnover (exports plus imports) of US$10 trillion in 2023 7.
• China’s foreign trade with other BRICS member countries reached 4.62 trillion yuan (648 billion U.S. dollars) in the first nine months of 2024, a year-on-year increase of 5.1% 2.
• According to the latest data, mutual trade between BRICS countries has reached almost 678 billion dollars per year 1.
• BRICS+ (including new members) accounts for a 23.3% share in global merchandise trade 3.

BRICS Trade Without the US Dollar

• As of March 2024, over half (52.9%) of Chinese payments were settled in RMB while 42.8% were settled in U.S. dollars 6.
• 80% of trade between Russia and China is conducted in Rouble or Yuan 9.
• In 2023, one-fifth of oil trades were reportedly conducted with non-dollar currencies 6.
• Intra-BRICS trade accounted for 37% of their total transactions in 2022, up by 56% since 2017 1.
• Despite efforts to reduce dollar dependence, 47% of China’s cross-border payments were still conducted in dollars in 2023 9.
• Even Russia, despite sanctions, continued to settle a third of its exports in dollars in 2022 9.

The transition away from the dollar is real and growing, and it appears that Iraq will move away from its reliance on the dollar and towards some kind of alliance with the BRICS nations. The potential impact on the Iraqi Dinar is not knowable at this time, but it certainly bears watching.

The Iraqi Dinar (IQD) and Its Complex Journey Towards Revaluation

The Iraqi Dinar (IQD) has traversed a tumultuous path throughout its history, marked by political upheavals, wars, and economic challenges. Let’s delve into the recent developments and factors that could support a potential revaluation of the IQD that so many are praying for and speculating on.

Pre & Post Saddam Hussein Era

The IQD replaced the Indian rupee as Iraq’s official currency in 1932. It was initially pegged to the British pound, however, it later shifted to the U.S. dollar. By 1973, the IQD reached a stable exchange rate of $3.3778 USD before the Gulf War in 1990-91 1.

Chaos ensued during Saddam Hussein’s rule, leading to hyperinflation and a collapse in the IQD’s value. By 2000, Iraq’s GDP had plummeted, and the IQD was nearly worthless1. After Saddam’s fall, efforts to stabilize the IQD began and continue to this day. There’s speculation about a potential revaluation, but it remains a complex situation1.

Recent Discussions on Increasing the Value of the Iraqi Dinar

On March 14, 2024, Iraq’s Finance Committee, chaired by Atwan Al-Atwani, convened with its members and the Governor of the Central Bank of Iraq (CBI), Ali Al-Alaq, to discuss monetary policy, the banking system, and methods to increase the value of the Iraqi dinar1.

The Finance Committee emphasized the importance of monitoring the economic file and monetary policy based on oversight principles. They expressed their desire to coordinate with the Central Bank to enhance the value of the Iraqi dinar, stabilize the market, alleviate the burden on citizens, and address deficits. The Central Bank Governor reviewed economic and monetary aspects, emphasizing the need for fundamental rules to monitor transfers and analyze cash operations1.

Factors Supporting Potential IQD Revaluation

While the revaluation of the IQD remains a complex and fluid situation, several factors could support an increase in its value in the near and long-term future:

Oil and Gas Wealth

Iraq possesses vast oil and gas reserves, ranking fifth globally in proven crude oil reserves and 11th in natural gas reserves1. With over 145 billion barrels of proven oil reserves, Iraq has significant potential to increase oil production and exports, which could drive economic growth and strengthen the IQD.

The Iraqi government has announced plans to increase oil production capacity to 8 million barrels per day by 2027. Additionally, efforts are underway to capture and utilize associated gas from oil fields, which was previously flared, to generate electricity and support industrial projects.

Mineral Wealth

Beyond hydrocarbons, Iraq is endowed with substantial mineral resources, including sulfur, phosphate, and limestone. The government has prioritized developing the mining sector, aiming to diversify the economy and generate additional revenue streams.

In 2023, the Iraqi Ministry of Industry and Minerals held a conference to encourage investments in mineral exploration and petrochemicals, highlighting the country’s large reserves and abundant energy resources.

Infrastructure Development

Iraq has embarked on an ambitious infrastructure development plan, allocating over $150 billion for projects in various sectors, including transportation, telecommunications, energy, and housing. Key initiatives include:

• The Grand Faw Port: A $6 billion deep-water port project in Basra, aimed at becoming one of the largest ports in the world.
• The Development Road: A $17 billion project to construct a 1,200-kilometer two-way high-speed rail network and motorway connecting Iraq to Turkey, positioning Iraq as a regional transit hub.
• Housing and Urban Development: Plans to build 1 million new housing units by 2025 and develop new residential cities like the $10.1 billion New Bismayah City.

These large-scale infrastructure projects are exactly what are needed to stimulate economic growth, attract foreign investment, and support the strengthening of the IQD.

Business and Investment Climate

To attract foreign investment and foster economic diversification, Iraq has implemented reforms to its Investment Law, streamlining procedures and offering incentives such as tax exemptions, land ownership rights, and long-term leases.

The Iraqi government has also prioritized developing the private sector, recognizing its role in driving economic growth and reducing reliance on oil revenues. Initiatives include improving access to credit, reducing bureaucratic hurdles, and developing industrial zones.

Regional Cooperation and Trade

Iraq’s strategic location and efforts to strengthen regional cooperation could also enhance its role as a trade and transit hub, benefiting the economy and the IQD. Key developments include:

• Joining the BRICS Alliance: Iraq’s inclusion as a prospective BRICS member in 2024 could facilitate greater economic integration and trade with the bloc.
• Strengthening Ties with Turkey: Agreements signed in 2024 aim to enhance cooperation in various sectors, including the Development Road project connecting Iraq and Turkey.
• Expanding Trade with Gulf Neighbors: Discussions are underway to establish new transit routes through Saudi Arabia and the Gulf region, leveraging Iraq’s geographic position.

While challenges remain, these factors collectively suggest that Iraq possesses significant potential for economic growth and diversification, which could support a revaluation of the Iraqi Dinar in the future, provided political stability and sound economic policies are maintained. I believe that it is useful to view the whole issue of an IQD revaluation in the lens of the rather recent revaluation in Kuwait after the Gulf War.

The Kuwaiti Dinar (KWD) Revaluation: Lessons from History for the IQD

During the Gulf War (1990-91), Iraq invaded Kuwait, causing significant disruption to the Kuwaiti Dinar (KWD), in addition to loss of life and incredible damage to infrastructure. Before the invasion, the KWD was a strong currency, valued at 3.47 USD. After the invasion, Kuwait’s economy suffered greatly and it took years to recover. After Iraq was expelled from Kuwait in February 1991, the banks revalued the Kuwaiti dinar. The KWD surged from a low value (20 dinars per dollar) to the pre-invasion rate of $3.47 USD. This made the KWD the highest-valued currency globally. It is worth looking at the factors that made this revaluation possible.

Factors Supporting the KWD’s High Value:

Oil and Gas Wealth

Kuwait’s vast oil and gas reserves have been the cornerstone of its economic strength. The country holds approximately 7% of the world’s proven oil reserves, estimated at 101.5 billion barrels. The low cost of oil production in Kuwait, coupled with its significant export capacity, has provided a steady stream of revenue, bolstering the national economy and supporting the value of the KWD. The country’s oil wealth has also enabled the establishment of a substantial sovereign wealth fund, the Kuwait Investment Authority (KIA), which manages surplus oil income and invests in various global assets.

Prudent Fiscal Management

Kuwait’s government has maintained a conservative fiscal policy, characterized by low public debt and substantial budget surpluses. This prudent management has instilled confidence in the Kuwaiti Dinar and has been a critical factor in its stability and high value. The country’s fiscal discipline is further evidenced by its ability to maintain a large reserve of foreign currency, providing a buffer against economic shocks.

Political Stability

Political stability has been a significant factor in the strength of the Kuwaiti Dinar. Despite regional tensions, Kuwait has managed to maintain a stable political environment, supported by a constitutional monarchy and a robust legal framework. This stability has attracted foreign investment and has been crucial in maintaining the confidence of international markets in the KWD.

Economic Diversification Efforts

While oil remains the backbone of Kuwait’s economy, the government has actively pursued economic diversification to reduce dependency on oil revenues. Investments in sectors such as finance, infrastructure, and tourism have been part of this strategy. The development of non-oil sectors has contributed to the overall economic resilience of Kuwait, further supporting the value of the KWD.

Currency Peg and Capital Controls

The Kuwaiti Dinar is pegged to a basket of major international currencies, with the U.S. Dollar being the primary component. This pegging system has provided stability to the KWD, aligning it with the economic policies of the United States and other major trading partners. Additionally, strict regulations on the outflow and inflow of the Kuwaiti Dinar have minimized currency speculation and volatility, further supporting its value.

Post-Revaluation Developments

Following the revaluation, Kuwait continued to strengthen its economic position. The Central Bank of Kuwait played a crucial role in maintaining the stability of the KWD by implementing sound monetary policies and ensuring adequate liquidity in the banking system. The country’s strong export economy, driven by oil and gas exports, has continued to provide a solid foundation for the KWD’s value.

Lessons for the Iraqi Dinar (IQD)

The experience of the Kuwaiti Dinar revaluation offers valuable lessons for the potential revaluation of the Iraqi Dinar (IQD). Key takeaways include:

• Political Stability: Critical to the revaluation efforts as ensuring that Kuwait could maintain a stable political environment, which is crucial for maintaining investor confidence and supporting currency value.
• Effective Governance: Kuwait exercised prudent fiscal management and developed sound economic policies, which are essential for stabilizing and strengthening a currency.
• International Support: Kuwait enlisted and received significant cooperation and support from the International community, which can play a significant role in the successful revaluation and stabilization of a currency.
• Economic Diversification: One big key for Kuwait which can be emulated by Iraq, was reducing their dependency on a single revenue source, such as oil, and developing other sectors, which can enhance economic resilience and support currency value.

The experience of the KWD revaluation offers valuable lessons for the potential revaluation of the IQD. Key factors include the importance of political stability, effective governance, and international support in restoring and maintaining currency value.

Conclusion

The historical evolution of reserve currencies, the rise of the BRICS Alliance as a leading voice in global finance, and the potential revaluation of the Iraqi dinar represent critical chapters in the ongoing saga of international economic relations. From ancient coinage to cutting-edge financial initiatives, the world of currencies continues to evolve, driven by changing economic landscapes, geopolitical shifts, and innovative approaches to monetary policymaking.

As the BRICS Alliance expands its influence and challenges established paradigms in the financial realm, the global community stands at a pivotal juncture, poised to reimagine the future of money, trade, and economic cooperation on a truly global scale. The experiences of the IQD and KWD highlight the complexities of currency revaluations. As Iraq navigates its economic challenges, the potential revaluation of the Iraqi dinar remains a topic of high interest, along with currencies like the VND, ZIM and others which are turning their focus to the BRICS, asset backed model to support a revaluation of their currencies. Keep an eye on further developments and announcements from the Iraqi Central Bank and government to follow the progress.

This article purposely avoided discussion of Central Bank Digital Currencies (CBDCs), as well as crypto currencies, as they would require an article or more just to themselves. However, the purpose of this post is to provide the reader some perspective, particularly for those readers whose experience in speculating in international currencies is only very recent, and who stand in the face of doubters and naysayers who say that it is foolish speculation because little people never get to benefit from currency revaluations. The reality is that wise speculators who took advantage of the disruption of Kuwait’s economy due to the Gulf War and accumulated KWD were richly rewarded. In the case of the IQD, there are many factors that are at work that suggest that a revaluation is not just probable, but inevitable.  The same factors are also at work with the VND and even the downtrodden ZIM, as BRICS and other alliances work to establish a world that can no longer be dominated by the US dollar.

I hope that you have found value in this brief analysis, and look forward to your thoughts on my Telegram chat! If you enjoy this content, please consider donating to support our research, by clicking on the “Donate” button on this site. Should you wish to create your own trust(s) for Estate Planning purposes, let’s discuss my Common Law Trust materials. Just send me an email to: debtlawyer@gmail.com and I’ll send you some information.

All my best,

Bob Lock

References

1. Iraqi Parliament. “Central Bank discusses Increasing the Value of the Iraqi Dinar.”
2. Treasury Vault. “History of the Iraqi Dinar – Pre and Post Saddam Hussein.”
3. XE. “Iraqi Dinar (IQD) Currency Exchange Rate Conversion Calculator.”
4. Corporate Finance Institute. “Iraqi Dinar (IQD).”
5. Trading Economics. “Iraq Currency.”
6. DFSU Lifelong Learning Campus. “NY Times article from 1991 reporting the revaluation of the Kuwaiti dinar.”
7. AI3D Blog. “The Truth About the Kuwaiti Currency ‘RV’ in 1991.”
8. Banknote World. “Gulf War Money – The Stolen Kuwaiti Dinar.”

© 2024 Bob Lock – Anti-Radicals Blog

Disclaimer
The contents of this post are provided for educational and entertainment purposes only. The information, content, and materials available in this post do not constitute legal, financial, accounting, or other professional advice. The authors and publishers of this post are not engaged in rendering legal, financial, or other professional services.

creature from Jekyll island

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