JMULS31

Kaperoni

8 posts in this topic

5-7-2013 Newshound Guru Kaperoni The only way that can occur is if the world (investors/central banks, etc) drives up that rate over time via a float and supply/demand in essence funding the rise in the value of the dinar. In essence making our dinar, a reserve currency held in central banks around the world (as Saleh stated). The incentive for Iraqi’s is that the dinar is gaining purchasing power over the current rate. Some may ignore the incremental rise and choose to continue to use USD for daily transactions, but that will change once the dinar is worth more than the dollar. Keep in mind most Iraqi's use the dollar now. [post 2 of 2]

5-7-2013 Newshound Guru Kaperoni Article: "Print dinar universal security specifications will strengthen the confidence indicators in local currency" the IMF...did not ask them [Iraq] to RV the dinar..they asked them to chose an "exchange regime." There are only three choices for an exchange regime..free float, managed float, or pegged. The reason they will come out low is there is 6-10 trillion dinar that needs to be accounted for outside Iraq. Iraq cannot fund a RV at 1 to $1 with that much dinar and no central bank is going to buy the Iraqi dinar at that rate taking the risk that it would fail. [post 1 of 2....stay tuned]
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Thanks for the reference article.  I didnt seet that today.  I always figured when the dinar actually does RV it would be at a low price like at around $.10.. 

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I don't care if it comes out at .10 or .25. Let's just get something done and get on with life...........

Edited by Bull Dog
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This is, without a doubt, the most realistic analysis I seen to date of how any potential RV must be accomplished. The idea that Iraq can support even a 1 to 1 RV is ludacrous given the huge amount of Dinar that exist. The forex market would never accept/support a hight rate, and that is what will govern any eventual (as opposed to the every-imminent fantasy) RV in the real world.

 

- cantinista

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