You don't want a FLOAT

[rockfl9]

A central bank resorts to a float when it no longer wishes to use up it's reserves.  It is NOT a good sign.

Recent example is the Egyptian pound which fell from $0,12 to $0.05 on the float. Investors with IGP lost a ton of money.

Some Iraqi's are concerned that the decrease in CBI reserves signals the same. With 40T IQD in circulation IF the reserves fall below $38n  it will be in the same condition.  

I dont know where they got the added $3Bn at the CBI  , I think Mohsun  put on the press release to ease some Iraqi's concern.  

[Texstorm]

Well I agree with you there Rock ! There is no way for Iraq to find stability in their economy if the market rate changed 3 or 4 times a day. It's going to have to come out even up with USD to have a chance of keeping up with the market economy. Once pegged to the USD it can easily become International and Iraq could also now  force outside companies or entities that wish to business there to deal in the IQD.

[rockfl9]

51 minutes ago, Texstorm said:

Well I agree with you there Rock ! There is no way for Iraq to find stability in their economy if the market rate changed 3 or 4 times a day. It's going to have to come out even up with USD to have a chance of keeping up with the market economy. Once pegged to the USD it can easily become International and Iraq could also now  force outside companies or entities that wish to business there to deal in the IQD.

IQD IS PEGGED TO USD. Well sort of!.  The CBI/MOF  is purposely  keeping the Iqd from trading internationaly mainly to keep Iraqis from moving value out of the country. Presently IQD is not allowed to leave the country or RETURN ?  That is why US banks cant get any to sell OR will BUY Back any today. Evidently the dealers have found ways to get some out, and maybe to ship some back .

[Texstorm]

That's why we are going have  a big fat RV party Rock ! You just said it...."you don't want a Float'' . You can't have your cake and eat it too.  "Well sort of !" does not negate the real truth is that it's artificial rate is being held down, it's not really the CBI or MOF, it's all of the external sanctions' that have prevented Iraq from an open International market.  One day all of these stops will be out of the way and other countries will be forced to use IQD , if they want to do business in Iraq.