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These are the new customs controls for the introduction and removal of funds across the Iraqi border


fnbplanet
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1 hour ago, Floridian said:

 

Yes, I think you're right, but I sure hate to go into long-winded explanations when everyone asks "What happened?"

Simply tell them what other investment have they ever made that has shown a 5000% return. One way to silence the critics. LOL

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Maybe they are waiting until they get ISIS out of Hawija, and then they'll raise the dinar.  Seems like it might take awhile.

 

"The operation to liberate Hawija will begin a few days after Eid al-Adha," spokesman Ahmed al-Assadi, said referring to the Muslim holiday marking the end of the annual hajj pilgrimage to Mecca in Saudi Arabia.

Sunni Muslims began observing Eid al-Adha on Friday, while Iraqi Shiite Muslims will mark the start of the four-day holiday on Saturday.

 

Assadi said the operation aimed at retaking from IS an area of 9,000 square kilometres (3,500 sq miles), covering the town of Hawija and surrounding the area, including eastern Shargat, a town further west.

 

http://www.shafaaq.com/en/En_NewsReader/6f974784-e3c2-4715-8d75-f06ca63325f7

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1 minute ago, Floridian said:

 

Ah!  Very good!  

But I need a rebuttal when they say "But you said we're gonna be rich!"   LOL

Tell them they should have invested more. If it is really .05 cents, $1000 investment would return $50,000. Now who could complain about that.

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17 minutes ago, Rmc10 said:

If you invested $10,000 you would end up with $500,000 minus 50% because of taxes so $250,000. Now depending on how long you've been invested that could be really good or sort of good. More money is better than no money. 

 

 

I know, I know.  It's all good.  I don't want to complain.  It's just that for years we were all tossing around big numbers and I really wanted that oceanfront condo in Florida.

I guess it's just not gonna happen.  :(  It just wasn't meant to be.   I'll have to set my sights on something less.

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2 hours ago, Half Crazy Runner said:

 

Not to mention, Iraqi dinars are completely unusable outside of Iraq. So, why would anyone want to take them out of the country in the first place? 

:lol: Because they are collectors items that might be worth something one day and they dont trust the banks to store them in a safe deposit box at the bank...        criminea....     I'm starting to think like an Iraqi citizen now.....    :mellow:

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Here's what happened in Switzerland.  We will all have to be very careful about this:

 

From Economist.com:

explains
Explaining the world, daily
The Economist explains
Why the Swiss unpegged the franc

The Economist explains
Jan 18th 2015
by C.W.

IN THE world of central banking, slow and predictable decisions are the aim. So on January 15th, when the Swiss National Bank (SNB) suddenly announced that it would no longer hold the Swiss franc at a fixed exchange rate with the euro, there was panic. The franc soared. On Wednesday one euro was worth 1.2 Swiss francs; at one point on Thursday its value had fallen to just 0.85 francs. A number of hedge funds across the world made big losses. The Swiss stockmarket collapsed. Why did the SNB provoke such chaos?

 

The SNB introduced the exchange-rate peg in 2011, while financial markets around the world were in turmoil. Investors consider the Swiss franc as a “safe haven” asset, along with American government bonds: buy them and you know your money will not be at risk. Investors like the franc because they think the Swiss government is a safe pair of hands: it runs a balanced budget, for instance. But as investors flocked to the franc, they dramatically pushed up its value. An expensive franc hurts Switzerland because the economy is heavily reliant on selling things abroad: exports of goods and services are worth over 70% of GDP. To bring down the franc’s value, the SNB created new francs and used them to buy euros. Increasing the supply of francs relative to euros on foreign-exchange markets caused the franc’s value to fall (thereby ensuring a euro was worth 1.2 francs). Thanks to this policy, by 2014 the SNB had amassed about $480 billion-worth of foreign currency, a sum equal to about 70% of Swiss GDP.

 

The SNB suddenly dropped the cap last week for several reasons. First, many Swiss are angry that the SNB has built up such large foreign-exchange reserves. Printing all those francs, they say, will eventually lead to hyperinflation. Those fears are probably unfounded: Swiss inflation is too low, not too high. But it is a hot political issue. In November there was a referendum which, had it passed, would have made it difficult for the SNB to increase its reserves. Second, the SNB risked irritating its critics even more, thanks to something that is happening this Thursday: many expect the European Central Bank to introduce “quantitative easing”. This entails the creation of money to buy the government debt of euro-zone countries. That will push down the value of the euro, which might have required the SNB to print lots more francs to maintain the cap. But there is also a third reason behind the SNB’s decision. During 2014 the euro depreciated against other major currencies. As a result, the franc (being pegged to the euro) has depreciated too: in 2014 it lost about 12% of its value against the dollar and 10% against the rupee (though it appreciated against both currencies following the SNB's decision). A cheaper franc boosts exports to America and India, which together make up about 20% of Swiss exports. If the Swiss franc is not so overvalued, the SNB argues, then it has no reason to continue trying to weaken it.

 

The big question now is how much the removal of the cap will hurt the Swiss economy. The stockmarket fell because Swiss companies will now find it more difficult to sell their wares to European customers (high-rolling Europeans are already complaining about the price of this year’s skiing holidays). UBS, a bank, downgraded its forecast for Swiss growth in 2015 from 1.8% to 0.5%. Switzerland will probably remain in deflation. But the SNB should not be lambasted for removing the cap. Rather, it should be criticized for adopting it in the first place. When central banks try to manipulate exchange rates, it almost always ends in tears.


Dig deeper:
A referendum to boost Switzerland's gold reserves (November 2014)
The market reaction to the SNB's decision (January 2015)
The impact on Central Europe (January 2015)
 

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Here's something else I found.   Maybe these things don't apply to Iraq, since Iraq has no exports to speak of, except oil.

 

If a currency appreciates because of speculation (e.g. markets deciding one country like Switzerland has best chance of strong currency). Then the currency may become much stronger than economic fundamentals suggest. Therefore, the currency becomes overvalued compared to relative purchasing power. In the case of Switzerland, the currencies strength was being driven by investors seeking a safe haven from worries over US and EU economies. The appreciation in exchange rate was creating a fundamental over-valuation of Swiss exports. This was leading to a fall in domestic demand. The currency appreciation was so fast, it wasn’t possible for a successful diversification. I believe Switzerland did the right thing in limiting the appreciation. If they had allowed foreign currency traders to continue to pile into the Swiss Franc, the value of the Franc would have become divorced from economic fundamentals, and they would have seen a recession.

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4 minutes ago, Aryoseno said:

From what i read 10.000 US$ is an international regulation that you have to report to the local authority , just like in my country INDONESIA. When you bring in/out, 10.000 US$ or the number in our currency (Rp) , is Rp. 100.000.000 (minimum), you have to report to the authority, if you dont do that you will charge 10% or 300 million Rp.

 

And fyi Rupiah exchange rate compare to US $ is ,

1 US$ = Rp 13.000

 

10.000 US$ = Rp 130.000.000

 

So imo , 10.000 US$ and 200.000 IQD, can *reflect* the value of IQD exchange rate

Here we go again....   :mellow:

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15 hours ago, billjr said:

Tell them they should have invested more. If it is really .05 cents, $1000 investment would return $50,000. Now who could complain about that.

This is exactly why IMO that when the IQD revalues it will have to be suddenly!! leaving no room for speculation or a run on IQD!

IMO it must be either on par with the USD or a reinstatement to $3+ 

Iraq cannot afford to sell out any longer at the undervalued rate!

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