Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

How much dinar vs dollars in Iraq


hame55
 Share

Recommended Posts

I'm just thinking out loud here, and I'm not great with numbers - just trying to use logic here to figure out the dollarization in Iraq and how much dinar is actually being used. I'm also trying to attract other intelligent minds to look at this specifically-----

If there is officially on CBI site 27 trillion dinar in circulation, or printed....that translates to roughly 27 billion dollars of buying power, not enough to run the government, much less the economy. Therefore, there have to be a lot of dollars out there being used for everything - and this is ultimately good news for us investors. We know there are trillions of dinar out of country, and the CBI probably has a lot in their vaults, or been destroyed by overuse, so can we assume...there are less outstanding on the market.

Maybe they are more of a dollar economy than we think. Even more so than the 40% dollar number that has been mentioned on DV. They might be around 70-85% dollar use or more in their economy. How could they have survived all these years using this toilet paper currency that is worth a thousandth of a dollar? The CBI has not EVER printed enough dinar to support even a large percentage of government spending at the current budget of 102 billion US dollar value PLUS a rather large economy. That would be 100 trillion dinar, PLUS whatever is floating around in their market trading and under their mattresses. 27 trillion dinar, at 27 billion dollar value, even if you believe CBI dinar numbers numbers, only represents a fraction of their money supply

Therefore the chances of an RV over an LOP seem to be better than we've imagined even though our fears of the dreaded bunny ear have us arguing LOP with the Lopsters every day. Any ideas on this out there? :D

  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

A RV does make more sense but Shabibi has been throwing the three zeros around a lot in recentl weeks.

Iraq will now accept many different currencies to pay for oil. We often hear how much USD the CBI has on hand but we don't hear that much about other foreign currency reserves.

Even after the LOP, Iraq still has enough int'l reserves to RV 1 to 1.

I believe it will be a LOP & a RV.

  • Upvote 3
  • Downvote 2
Link to comment
Share on other sites

A RV does make more sense but Shabibi has been throwing the three zeros around a lot in recentl weeks.

Iraq will now accept many different currencies to pay for oil. We often hear how much USD the CBI has on hand but we don't hear that much about other foreign currency reserves.

Even after the LOP, Iraq still has enough int'l reserves to RV 1 to 1.

I believe it will be a LOP & a RV.

Correct me if I'm wrong, but the foreign currency reserves isn't there to desiminate to their citizens, its to back the value of their currency? I believe the thread was implying the amount of dinar circulating within the country seems to be awful low for its current rate. We don't spend Euros(valued higher than the dollar) in our country or isn't accepted as a tender to anywhere other than banks or currency exchangers.

  • Upvote 2
  • Downvote 1
Link to comment
Share on other sites

Correct me if I'm wrong, but the foreign currency reserves isn't there to desiminate to their citizens, its to back the value of their currency? I believe the thread was implying the amount of dinar circulating within the country seems to be awful low for its current rate. We don't spend Euros(valued higher than the dollar) in our country or isn't accepted as a tender to anywhere other than banks or currency exchangers.

The implication seems to be there isn't enough dinar to cover the gov. expenses nor the economy and there must be a lot more dollars out there than we think, therefore good for RV

Link to comment
Share on other sites

Hey luigi1 I smacked the neg off ya. You distilled it down to the sweet liquor we are looking for. I guess some people are so terrified of "LOP" that any inference to a "LOP" they bunch their panties. It's been explained ad nauseum why a straight "LOP" will not put Iraq ahead. Keep the faith! B)

  • Upvote 1
Link to comment
Share on other sites

The implication seems to be there isn't enough dinar to cover the gov. expenses nor the economy and there must be a lot more dollars out there than we think, therefore good for RV

You have to remember though that the currency in circulation is not whats used to run the country....

The govt and rather the whole country and the budgets etc etc are all funded by oil revenue (USD).....the currency in circulation really doesnt affect what the approved budgets are, or what money is availible to run the govt.....

  • Upvote 2
Link to comment
Share on other sites

I'm just thinking out loud here, and I'm not great with numbers - just trying to use logic here to figure out the dollarization in Iraq and how much dinar is actually being used. I'm also trying to attract other intelligent minds to look at this specifically-----

If there is officially on CBI site 27 trillion dinar in circulation, or printed....that translates to roughly 27 billion dollars of buying power, not enough to run the government, much less the economy.

Why? The US has a $15T dollar GDP and our M1 is only $2T. So Iraq having a $100B economy and an M1 of $27B doesn't seem out of balance to me. The key word here is "circulated". The same dollars or dinars are used many times in the making of GDP. This does not pose a limit on the size of budgets (or in our case debt) that they can execute.
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.