• Announcements

    • Adam Montana

      NEW LOGIN PROCEDURE   03/18/2016

      As you can see, the site has gone through a few changes! One major change is how you login - your "username" is now your displayname. Please keep that in mind when logging in.
Rayzur

IQD is Moving on Forex against USD (trading still not possible?)

32 posts in this topic

While watching other pairs, I popped over to the IQD:USD pair just to see what would come up. Apart from whether or not you can trade this, I did notice it is at least being tracked live, at one minute updates, on auto refresh and there is obvious movement.

 

I'm NOT saying to you can trade IQD on Forex...

 

(though not sure why you can't. How DOES currency become recognized?) :shrug:

 

What I am saying is it's being tracked with live refresh, and there is obvious movement, in this case,

24 Aug at almost 1165:1, to present day/time of 19 Sep (00:23) at 1126.9:1

 

 

Thought some of you might like to take a look at this, and the wonderful trending it shows as we wait for the magical number to appear :D

 

http://forex.tradingcharts.com/chart/US%20Dollar_Iraqi%20Dinar.html?chartpair=US%2520Dollar_Iraqi%2520Dinar&ctype=l&movAvg1=1&movAvg2=&BB=1&AccDist=1&ADX=1&tz=EST&per=5m&sub=Save

 

 

13

Share this post


Link to post
Share on other sites

Thanks for being on top of things Rayzur, very interesting... 

1

Share this post


Link to post
Share on other sites

One problem is that the dinar is pegged. No demand for trading on a forex platform for a pegged currency cause it doesnt really move. 

 

We would probly never see the dinar actively traded on forex. Most all oil producing countries are pegged, and to the dollar at that. WTO acceptance might help get the dinar accepted in more areas of the world, but its still possible that it wouldnt be accepted everywhere. 

 

I dont see the dinar ever being traded on forex even if it is accepted worldwide unless they change their monetary policy. And thats more then likely not on the near horizon....

1

Share this post


Link to post
Share on other sites
The forex has posted updates on the Gorex for the last three years. It updates every 20 minutes.
Onanda updates every 20 minutes, and yahoo is every 15 minutes.
1

Share this post


Link to post
Share on other sites
I find this most encouraging as it did not even appear on Forex several months ago when I checked
1

Share this post


Link to post
Share on other sites

One problem is that the dinar is pegged. No demand for trading on a forex platform for a pegged currency cause it doesnt really move. 

 

We would probly never see the dinar actively traded on forex. Most all oil producing countries are pegged, and to the dollar at that. WTO acceptance might help get the dinar accepted in more areas of the world, but its still possible that it wouldnt be accepted everywhere. 

 

I dont see the dinar ever being traded on forex even if it is accepted worldwide unless they change their monetary policy. And thats more then likely not on the near horizon....

 

I'm kinda getting out on a branch here... but I thought that oil was pegged to the USD, versus a country's currency? So like Germany would have to convert from Marks to USD to buy oil.. with regard to the ME in general... ??

 

In response to your thoughts, AutoMag wrote a great reply some  3 years ago which might address some of them... :D

BEGIN AUTOMAG:

The Dinar is pegged to the USD at this time. However it's rate is carefully subject to a managed float by CBI. That is why they have the daily auctions. The rate is maintained by Shabibi to keep inflation down and the rate steady as per agreements with the IMF which required them to maintain a steady rate for a period of one year ending I believe in either Nov. 09 or Dec.09. The policy used to achieve that stable rate is still in effect to this day and that is why the Dinar has not risen along with the stronger Dollar. The rate has been .0008457 for so long and that would indicate the stabilization policy I had mentioned. Even though there are some fluctuations it has stayed around that number for a long while. Keeping the steady rate is what CBI uses to combat inflation even though there has been a rise in the dollar. It has to do with their economic conditions and the money supply. Read the IMF web site and you can get idea of how that works.

luckylucy is correct however that when the RV occurs the CBI can peg to a basket of currencies as no International organization can determine what a governments currency rate RV's at or the standard that supports that currency. That is a sovereignty issue. The peg will be tested by the market and will sink or swim after the RV on the merits of that currencies performance on the open market. Now if the CBI made a deal with IMF about a rate that could make some difference as to what that rate is but I'm not aware of a deal even though it has been rumored they did. I just have no clue about that.
....

If we get lucky the Iraqi CBI will choose a basket of currencies (such as Kuwait), which could include commodities ie gold, oil, or other such resources at their disposal. That would be the opportunity we investors would like to see as that might cause them to RV at a much higher rate than we would think possible. Shoot I like your prediction because if the rate you suggested comes about I am gonna have to figure out how to spend that much money. I can invest what I thought I would get and still be obscenely rich beyond my wildest imaginations.

Thanks for your post. It was interesting and caused me to think about it and I like to think. However I would ask anybody who knows to share information as to exactly what the Iranian currency is actually pegged too as I have not discovered that information and I am curious about that. Thanks.

http://dinarvets.com/forums/index.php?/topic/20749-dinar-pegged-to-the-dollar/

3

Share this post


Link to post
Share on other sites

Will someone please tell me where it is stated that the IQD is pegged to the USD,,,,

0

Share this post


Link to post
Share on other sites

Will someone please tell me where it is stated that the IQD is pegged to the USD,,,,

 

Yeah, I can't find that regarding where it is now.... Lots of stuff to show it was historically a hard peg.  Would be nice to see in print. I'll go back to my IMF for Dummies post and see if I can find it later tonight....  Hard peg to USD  is different than oil peg to USD isn't it??? I'm on the fly and not putting this together right now...

0

Share this post


Link to post
Share on other sites
Its been pegged for decades. If you look at the history of the dinar you will find the answers. There hasnever been an official proclamation stating it has been changed. But if I remember correctly you MIGHT could make a case that its tied to SDR's which is a basket of a few currencies but guess what is the major one there? The USD.....
0

Share this post


Link to post
Share on other sites

currency trading...unlike stock market trading...is trade 24/6...only on sunday they suspend trading.  stock market tradings is 5 days a week...and only from opening bell to closing bell. so you'll see something move everyday b/c some is always trading their currency somewhere in the world. 

0

Share this post


Link to post
Share on other sites

I check it everyday, it does this all the time. Moving in the 1100's, back and forth. It was astonishing to me that about a year ago it went from 1166.00 to 1166.0000. Four digits after the decimal point, from two. The Dong does / did it too, at the same time. I thought a year ago, this is it! When it went to four decimal points. So far, nothing. Today, opened at 1126.9000 now at 1141.4000. :shrug:

http://forex.tradingcharts.com/foreign_exchange_rates/custom_forex_quotes.html?sQSyms=USDIQD%2CEURUSD%2CGBPUSD%2CCHFUSD%2CAUDUSD%2CUSDMXN%2CUSDUAH%2CUSDJPY%2CUSDCNY%2CUSDCOP%2CCADUSD%2CUSDVND&btnFinished=Finished%3A+Display+Favorite+Quotes

Wm13

0

Share this post


Link to post
Share on other sites

Interesting Waterman.... I'm going to have to take a look around and see what other currencies of similar statute are also tracked. I know I'm reading in to this.... it seems they are tracking so that when you can finally trade it, you've got some comparative history to use in determining its viability in your portfolio?

It still leaves me with the question.... what does it take, what are the mechanisms, what is the process by which a currency is added to the forex. And similar, for a currency to be considered internationally traded? As in who is saying its not recognized (other than banks who won't carry it but will order it for you to travel)..

How do we know its not internationally recognized and just so minor, no one wants to deal with it as part of their staple?

0

Share this post


Link to post
Share on other sites

Interesting Waterman.... I'm going to have to take a look around and see what other currencies of similar statute are also tracked. I know I'm reading in to this.... it seems they are tracking so that when you can finally trade it, you've got some comparative history to use in determining its viability in your portfolio?
It still leaves me with the question.... what does it take, what are the mechanisms, what is the process by which a currency is added to the forex. And similar, for a currency to be considered internationally traded? As in who is saying its not recognized (other than banks who won't carry it but will order it for you to travel)..
How do we know its not internationally recognized and just so minor, no one wants to deal with it as part of their staple?


I would look at the posts by carter I think one is pinned....thats not his full screen name but he is a forex trader and made a post about why you wont see the dinar on forex. Gpccarter maybe? Lol

I thought I remember the dinar being taken off the OFAC list but still no one deal in the dinar because there is no need or demand for it
1

Share this post


Link to post
Share on other sites

I would look at the posts by carter I think one is pinned....thats not his full screen name but he is a forex trader and made a post about why you wont see the dinar on forex. Gpccarter maybe? Lol

I thought I remember the dinar being taken off the OFAC list but still no one deal in the dinar because there is no need or demand for it

 

This one: http://dinarvets.com/forums/index.php?/topic/102812-please-stop-looking-iqd-is-not-on-forex/

 

Its in this Forum right above this thread.

 

-

1

Share this post


Link to post
Share on other sites

Thanks much Markinsa, appreciate it!!! Will check it out....

0

Share this post


Link to post
Share on other sites

Doesnt matter how much it moves.... unless it is tradeable we wont be able to cash in.... 

0

Share this post


Link to post
Share on other sites

Perhaps we had better check with the Gurus to find out what the "back" bank screens are showing....That's where the real action is..... :D :D :eyebrows:

1

Share this post


Link to post
Share on other sites

Perhaps we had better check with the Gurus to find out what the "back" bank screens are showing....That's where the real action is..... :D :D :eyebrows:

 

Their flashing 

0

Share this post


Link to post
Share on other sites

Doesnt matter how much it moves.... unless it is tradeable we wont be able to cash in.... 

 

So theoretically, if it moved to 1:1 and I went to my bank and told em I just got back and have all this stuff I want to exchange... don't you think they would say... okay.... It is the currency of the country. And I get most banks don't want to keep it on hand now as its so worthless (relative to others they supply)... but it's not like its illegal to exchange it.... Just thinking out loud... :peace:

0

Share this post


Link to post
Share on other sites

Thanks Markinsa for the thread... I did read it and see the error in my thinking, which I actually knew, so that means I'm an idiot for putting it out that way (won't be the first or last time, I get passage into the idiot club)

So to reframe....

 

Currency exchange is noted in the relationship between two currencies.

There is a USD:IQD relationship being shown on various forex analytical sites, which one uses to analyze whether or not to buy.

The change in the relationship we see between the IQD and USD pair, is the result of the change in the USD, as the IQD is not traded on forex as of yet.

The "value" of the IQD remains as is stated on CBI, and its value is not changing....

 

It nonetheless seems to me, that in watching this relationship if the dollar remains on a downward spiral, and even if the IQD rate is 1168 (or whatever)... that we could nonetheless conclude that it takes less USD to buy IQD at the CBI rate? And continuing the downward spiral of the USD, that if it really hit the fan, ..... even if IQD is not on forex, that number could mean the IQD is worth more than the USD if that pair hit something like -1.10 or something?

Understood, I'm not watching the value of IQD increase, I watching the USD decrease.... ughhh btw

 

I still want to know:

  • What is necessary for a currency to be "internationally recognized"
    • How do we know it is, or is not (is there an announcement, what is the process... blah blah, etc)
  • What is necessary for a currency to be included on forex for trading
    • Does inclusion on forex mean its recognized... meaning is the fact you can trade it, the indicator it is recognized?

 

I can take my IQD to the bank right now and exchange it. My PB knows I'm all over the world and said sure, bring it in. The same is not true for the pile of Italian lira I forgot to exchange. How is the recognition of the dinar different from the recognition of the lira... Is IQD kind of internationally recognized? Maybe I should ask my PB next time we re arrange things... 

Anyone have any ideas or thoughts?

0

Share this post


Link to post
Share on other sites

http://www.imf.org/external/pubs/ft/fandd/2007/09/pdf/basics.pdf

 

 

This does not really answer your question but it does show why the rates fluxuate...regardless they are tradable or not 



now one thing I do know (and this is why I watch the budget)......to avoid currency risk Iraq can negotiate contracts in Dinar. Which is something we are seeing.

2

Share this post


Link to post
Share on other sites

Thanks Markinsa for the thread... I did read it and see the error in my thinking, which I actually knew, so that means I'm an idiot for putting it out that way (won't be the first or last time, I get passage into the idiot club)

So to reframe....

Rayzur, my friend, YOU are far

from an idiot!!!

Thank you for taking the time

to post, much appreciated!!

1

Share this post


Link to post
Share on other sites

So theoretically, if it moved to 1:1 and I went to my bank and told em I just got back and have all this stuff I want to exchange... don't you think they would say... okay.... It is the currency of the country. And I get most banks don't want to keep it on hand now as its so worthless (relative to others they supply)... but it's not like its illegal to exchange it.... Just thinking out loud... :peace:

 

I would say NO, try to go to a currency exchange kiosk and try to exchange, I would say that its not possible, UNTIL it is internationally trade-able... you can probably only exchange in Iraq. Im just thinking out loud.... I could be wrong... 

0

Share this post


Link to post
Share on other sites

Wish they'd hurry the hell up and RV. Gonna start getting REAL COLD REAL SOON up here in the Oil Fields' of North Dakotah, eh.

 

Fingers crossed, but I'm guessing 2014/1st qtr./currency reform. I wouldn't slap money down on a bet having been thru 10 years of verbal diarrhea with these jokers; just a guess.

 

Looks like I'll just keep that hammock and scotch " on ice " for a while longer.

 

Time to break out the winter gear, sigh.

1

Share this post


Link to post
Share on other sites

Poking around looking for what defines a currency as one of international trade.... I found the following stuff from the WTO:

 

Trade is an important factor in establishing a currency as an international currency, notably by fulfilling the transaction/medium of exchange and unit of account motives of currency demand. A well prepared liberalization of currency use for international trade and foreign direct investment transactions can even be helpful in achieving the international investment and reserve currency status. While in the distant past in the later was also linked to preponderance of a country in trade markets, it is now linked to the prevalence of the currency in  international financial transactions, which supposes that the country in question engages at least partly in some liberalization of capital account transactions

 

  1. The determinants of currency invoicing internationally

  2. A. What defines an international currency?

 

A. Blinder (1996) offers a good definition blending four characteristics which

encompasses the three classical functions of money (a medium of exchange, a unit of account, and store of value): an international currency accounting for a preponderant share of the official reserves of central banks; a currency used "hand-to-hand" in foreign countries; a currency in which a disproportionate share of international trade is denominated; and a dominant currency in international financial markets.

 

This paper mainly focuses on the currency denomination of trade, which fulfils only

one of the four characteristics defined by Blinder, but which, for centuries, has been at the core of a country's role in international trade and central to the importance of that currency internationally. When official reserves were in gold, any other metals or physical benchmark, and when international financial markets did not allow for the exchange of non-merchandise related assets and liabilities, an international currency was essentially a currency used for trade purposes - fulfilling the roles of medium of

exchanges (of payment), i.e. a currency that reduces transactions costs and inefficiencies of barter trade, and of a unit of account, i.e. a currency allowing for the valuation of merchandises between two or more countries.

 

The unchallenged status of the US dollar as the main international currency during

several decades (P. Kenen, 1983) has been strengthened by the expansion of financial

markets, in a context of opening up of capital account transactions during the 80's through the year 1990's. The dominance of the US dollar in international transactions has been such during this period - as was the prevalence of the Sterling Pound in the previous century - that the academic interest on currency use has been falling somewhat, until the introduction of the euro. The availability by the European Union of data on the use of the euro resulted in increased interest by analysts, notably to

examine whether the event of the euro was coinciding with a decline of US dollar use.

At the same time, in the early 2000's, progress in trade theory allowing for a better

account of firm heterogeneity was used to improve the understanding of the micro-economic determinants of invoicing in international trade at the firm level.

 

All in all, these factors have revived the discussion on currency use in international trade - a discussion that is now further fed by the creation of an off-shore market for the Renminbi (RMB), and the large appetite of the market for local currency financing of trade in the Chinese currency. The success of RMB use triggers new questions as to the future panorama of currency use in world trade and the event of multi-currency environment in the future (Section II

3

Share this post


Link to post
Share on other sites
Guest
This topic is now closed to further replies.

  • Recently Browsing   0 members

    No registered users viewing this page.