The dollar instead of the dinar proposal

[yota691]

The dollar instead of the dinar proposal

May 10, 2013 in the political

 

BAGHDAD / News Network Iraq - A member of the Finance Committee proposal to his committee spends agreement with the Central Bank and Ministry of Finance on the distribution of salaries of all state employees in hard currency (dollar) for one month to end the "exploitation" of private banks and banking companies to citizens. Said a member of the Finance Committee Secretary in a press statement today, "I suggested to the Finance Committee to hold the distribution of salaries of all Iraqi staff in dollars rather than the Iraqi dinar, the official exchange rate, for a period of one month to pull the rug from under the private banks that exploit citizens, and raise the value of the dollar against the Iraqi dinar." he added Hadi that "the proposal will make the process reversed and the citizen is the owner of hard currency, and therefore can not be for the owners of banks exploiting hard currency again." The dollar rose against the Iraqi dinar and the difference from the official exchange rate announced by the Central Bank of Iraq up to 10 thousand dinars per 100 dollar against the Iraqi dinar.

Edited May 10, 2013 by yota691

[Biker]

Could this be an attempt to get the Dinar off the street and out of the hands of the people so they have no cash in Dinar be for the RV, Makes ya think a little.But then again its just a comment by one person, and most likely more B/S and talk.

[Butifldrm]

Gm yota, Hum 10,000 Dinar per 100 dollar!  Either this is a major typo or they have increased the rate, because it should read 10,000 to 10.  Even 10,000 to 10 would be an increase  from 11660 to 10.  

[SocalDinar]

Thanks for the puzzling article.Yota

How many millions would you cash in at

10 grand a million Butifldrm

I think this would be a bit over a penny per dinar if my math is correct this morning before coffee

Tough choice

[MrFnHappy]

Gm yota, Hum 10,000 Dinar per 100 dollar!  Either this is a major typo or they have increased the rate, because it should read 10,000 to 10.  Even 10,000 to 10 would be an increase  from 11660 to 10.  

Of course, I could be wrong, but I believe you are reading this the wrong way.

The dollar rose against the Iraqi dinar and the difference from the official exchange rate announced by the Central Bank of Iraq up to 10 thousand dinars per 100 dollar against the Iraqi dinar.

Read more: http://dinarvets.com/forums/index.php?/topic/148376-the-dollar-instead-of-the-dinar-proposal/#ixzz2St1pOdTe

How I'm reading it is that the market, or street rate has worsened to the point that in order to obtain $100 US on the street, the cost is up to 10,000 dinar more than the official exchange rate. 

[yota691]

Maybe they are getting ready to align the Zero's GM everybody...  

[SocalDinar]

Of course, I could be wrong, but I believe you are reading this the wrong way.

How I'm reading it is that the market, or street rate has worsened to the point that in order to obtain $100 US on the street, the cost is up to 10,000 dinar more than the official exchange rate. [/size]

I think it's at 1275 iqd per dollar now on the street

That's 127,500 per 100 USD

[Saint]

Well it makes no difference . I'm gonna sit and wait for my Adam to text me and tell me this ride is over. Until then I'm enjoying the ride as bumpy as it has been. Thanks, Yota.

[yota691]

Could this be an attempt to get the Dinar off the street and out of the hands of the people so they have no cash in Dinar be for the RV, Makes ya think a little.But then again its just a comment by one person, and most likely more B/S and talk.

GM Biker something strange for all the article's that state they want the folks to use dinars, and now paying them in US dollar...Kinda flip the switch on the  Currency Traders.. don't you think...Instead of moaning an groaning  about the Exchange rate with these traders..CBI keep's doing this they won't have to worry about the Spread in Exchange Rate with these folks...  

[waterman13]

Something is very "fishy" about this article. The numbers don't add up and yes, it's a big flip of what the articles have been saying, wanting the citizens to use Dinar and not he Dollar. Or, is the 10,000 Dinar a "fee" for exchanging $100?

WM13

[Bunk]

Ah the endless posibilities... 

[houstonguy]

I read this as an attempt to stabilize the dinar and to keep the banks from taking advantage of the fluxuations  and thereby devaluing the dinar against the dollar.  The banks don't want dinar they want dollars...and by paying everyone in dollars the banks won't be able to manipulate the spread or exchange rate unless they raise the value of the dinar...which would be a good thing

[zigmeister]

This tells me people do not hold dinar.  Once they get paid in dinar they go and exchange it via money changers for dollars.  The money changers charge  much more than the banks.  The banks lose their cut for the exchange as well.

[rockfl9]

I don't think there are enough free physical dollars in Iraq to do this .. The petrodollars are electronic and they go right back out as electronic dollars to pay for imports... The reason the dollar commands such a high premium is that they are being hoarded(mattress savings)! The person quoted in this article must not be a financial person or would know it is unlikely the CBI would want to pay what it would cost to obtain and import the dollars required. Certainly would not improve the value of the dinar.

[zigmeister]

It was a proposal one of which I doubt will be considered seriously!

[TQueezy]

127500 dinar per $100 dollars street exchange is 10,000 dinars more than

117000* apprx per $100 at CBI.

That's where the 10,000 is coming from? They're just explaining the difference between the CBI and private banks/money exchanges.

[hame55]

 

The dollar instead of the dinar proposal

May 10, 2013 in the political

 

BAGHDAD / News Network Iraq - A member of the Finance Committee proposal to his committee spends agreement with the Central Bank and Ministry of Finance on the distribution of salaries of all state employees in hard currency (dollar) for one month to end the "exploitation" of private banks and banking companies to citizens. Said a member of the Finance Committee Secretary in a press statement today, "I suggested to the Finance Committee to hold the distribution of salaries of all Iraqi staff in dollars rather than the Iraqi dinar, the official exchange rate, for a period of one month to pull the rug from under the private banks that exploit citizens, and raise the value of the dollar against the Iraqi dinar." he added Hadi that "the proposal will make the process reversed and the citizen is the owner of hard currency, and therefore can not be for the owners of banks exploiting hard currency again." The dollar rose against the Iraqi dinar and the difference from the official exchange rate announced by the Central Bank of Iraq up to 10 thousand dinars per 100 dollar against the Iraqi dinar.

 

It seems the banks and "officials" make money on several spreads, official and otherwise, like the street spread, while they make money off oil as well. Doesn't seem to be a great incentive to RD. If they RD to one to one, then the game is over. So they won't do that. There is an incentive to RV, but they make money while they wait.

[SocalDinar]

This tells me people do not hold dinar.  Once they get paid in dinar they go and exchange it via money changers for dollars.  The money changers charge  much more than the banks.  The banks lose their cut for the exchange as well.

Hey Zig,

Whats your take on the cash portions of the Auctions? Used to average about $100 million a week when Shabs was in charge and now its above $200 Million a week

Actually was $276 million in cash this week.

 

GO GO RV!!

[hame55]

This tells me people do not hold dinar.  Once they get paid in dinar they go and exchange it via money changers for dollars.  The money changers charge  much more than the banks.  The banks lose their cut for the exchange as well.

Right. They value the dollar, which is what we want - get the dinar off the streets and then RV. It seems the GOI and CBI have done their work to stop any confidence in the dinar, certainly the street spread and the feeling a worker gets if his money is devalued helps. Not good for the average Iraqi but good for foreigners if there is an RV

[dontlop]

if they are going to rv ..they would have to dollarize the streets .. rv .. then de-dollarize thru legal tender laws

[handy]

TQueezy - yah the rate is no big deal just the difference from the street (private bankers ) rate 1275 and the official CBI  rate . My buddy just translated it  . 

[dontlop]

there is no way for them to rv 80 trillion dinars .. they have to dollarize .. rv ... de- dollarize ..

[handy]

Yah ur right TQueezy, my buddy translated it and it's just the difference from the street rate (private bank ) rate of 1275 and the cbi official rate of 1160 .  Nonetheless good news though...

[zigmeister]

Hey Zig,

Whats your take on the cash portions of the Auctions? Used to average about $100 million a week when Shabs was in charge and now its above $200 Million a week

Actually was $276 million in cash this week.

 

GO GO RV!!

I can't decipher what is going on, except to say it has become their cash cow, or so it seems.  The auctions had been growing before Shabs left.  Now we even see auctions on off days and evening sessions.   From these additional auctions it seems there is more of an urgency.  Kind of like they have a quota to make, then they may shut down the auctions.

 

They say the dollar has weakened the dinar.   I question as to how much dinar is actually in the hands of the people.  I have stated before there are people on this board who were in Iraq years ago and even then rare was the Iraqi who had dinar on him.  With that information, plus an article that states they are tired of fighting the dollar and feel people have become victims of the money changers, I do not think much dinar is on the streets of Iraq.  What is left is probably counterfeit.

[millionaire in training]

there is no way for them to rv 80 trillion dinars .. they have to dollarize .. rv ... de- dollarize ..

So you think that may be the plan? I wonder what the Iraqi people think is going to happen with their currency? Are they hopeful or is it just another day in hell for them ?