Darin
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Everything posted by Darin
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redenominated banknotes slated for July 2013
Darin replied to VIZIOIRAQI's topic in Iraq & Dinar Related News
Seems The Ride Is Soon Over. Whether Its Boom Or Bust, Rd Or Rv, We Will See A Conclusion. Still Havent Seen A New Currency Code.... -
RV to Kuwaiti Dinar
Darin replied to keepmwlknfny's topic in Opinions, Perspectives, and Your Two Cents on the Iraqi Dinar
You had to go & poke the bear, didn't you?? -
No Crossing Swords
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His Vocabulary Is Short, Much Like A Toddler.
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If only you could be more entertaining.
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Hey, your using my logic! LOL We can effectively say that the value of the IQD RVs each and every day. It is just a matter of how we view a R/V. Minimal changes are a smaller %, but its a new value set. Yes, the central bank may have an official rate, but, we're speaking in terms of street value (market rate). That value, very likely changes each day. And as of recently, it has been going the wrong way in value in what we hope to see.
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A lot of factors are at play... Their population is different, their GDP is about 10 times of Iraq (but their population may factor into that), their known for their exports (as we've seen with Asian countries, their exchange rates are low), But their exchange regime is different. When we compare oil producing countries, they generally have higher exchange rates. Which means comparing Iraq to S. Korea is like Apples/to/Oranges. Iraq isn't know for their exports, they're known for their oil. They have a pegged currency, but if they change their exchange regime, the rate may change
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Anyways, the point of the comment is to show that they could reach that point. They just need to help by increasing their GDP and get their economy growing.
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Well, its luck of the draw. If they find a good mine to begin with, they could likely extract with ease. A lot can happen in 20 years. I think that is a high estimation. Regardless, their oil output in 20 years will likely be in teens for millions per day produced. Therefore, if your matching oil sales, than the argument holds a little bit of weight - but if you were to match present day sales, that may be a different story (especially if the value of gold goes up).
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So let me get this straight... The South Korean currency has as of 2011 the following for M2. (M2) 966,403,214,000,000 Has recently surpassed the quadrillion mark. And has an exchange rate of roughly 1119:1 for the US dollar. While Iraq has a M2 of 77,204,000,000,000 And has an exchange rate of roughly 1166:1 for the US dollar. If we use math here, we can find that is S. Korea had a similar M2 of Iraq, their value could increase from the 1119 down to about 90 units to a dollar. Which would equate to over a value of $0.01 per unit. Yet, the argument of a $0.01 R/V is impossible? When a country that benefits from a low exchange rate from their high volume of exports? I would like to note, that I used 2011 M2 figures & present day exchange rates. With the higher M2 figure, using those calculations would of only increase my figures from $0.0111 to a higher value. interesting...
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Stryker - They Are Trying To Implement Tariffs July 1st Of This Year !
Darin replied to DinarThug's topic in Dinar Rumors
Great way of thinking... The tariffs are a tax - paid by the importers. The government collects the taxes, but the people have to pay for a higher costs of goods. So the tax is introduced into the goods sold. Tariffs can be good for those companies that produce goods from within the country. It makes their competition have higher costs so the companies from within can be more competitive. -
The way we use LOP around here and how it could mean Loss of Profit - Look at it this from this point of view: You make a buy a good at a certain cost & you sell that good for cost + markup. The markup is your profit, right? Well lets say that you left that in your bank account for years and inflation took hold. That profit that you once had is no longer a profit as the value was diminished. You could hope that the value appreciates to the value it was at the point of the profit to maintain that profit, however a R/D would reduce that appreciation from taking an effect and therefor you would have a loss of profit. Highly unlikely that anyone sat on a profit in a bank for years in terms of dinars, but you get the idea.
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Interesting read - it appears the high demand for foreign currency equals profits to money changers. High demand for dollars, pounds, and euros. Thus people willing to give forth additional amounts of IQD to acquire those currencies. So the demand for dinars is so low, that even those carrying it are willing to take a loss in value to acquire currencies that are more easily converted.
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I think we need to keep an open mind on how the value can change. We always look at something from the point of view of the dollar. Lets say that I used the INR (Iranian Rupee) to convert to IQD when the exchange rate was around 20:1. I sat and held the currency and I see that the exchange rate has increased to 30:1. When I exchange my dinars back for rupees, I will receive more rupees. In this particular pairing, the dinar appreciated in the pairing of the rupee. (i.e., Rupee lost value, Dinar gained value). So to say that the dinar is unable to appreciate in value is a rather foolish comment. It has the ability to gain or lose value in a pair of another currency. This particular argument is slightly a moot point, as it is not like we all used Rupees to buy Dinars. However, if we had and the exchange rate was once 20:1 and became 30:1, we would see profits. The actual reality is that the INR has actually strengthened against the IQD over the recent years. But that isn't to say that things couldn't easily change down the road.
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So, the Iraqis are preferring the dollar over the dinar. The CBI claims they'll make measures to close that gap. How is the CBI going to close that gap? They can't regulate individuals, but only businesses. If an Iraqi is trading cash on the streets, regulations are not going to hold any weight as the sale of currency will be between the buyer & the seller. If the buyer is willing to spend 1,200,000+ to acquire $1,000, and the seller agrees, the transaction will complete. If the CBI opens up more places for average citizens to run and exchange their dinars for cash, it'll only lead to more flooding of dollars and less dinars on the street. You can't force people to demand something.. So therefor, I am curious how you believe the CBI will take action to close that gap.
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Seems that it would require doing some work on their back-end.. but you can't really intervene in a free & fair trade. If 1 is selling $1,000 for 1,200,000+ than that is what a person will have to pay. I would predict the only way to close the gap is to introduce more currency exchange locations that are regulated to only sell dollars to Iraqis at a set rate. That would "close" the gap, but it would also allow for more dumping of dinars.... As dollars would be easier to come by. Which would be the next problem. Unless the economy doesn't mind that they're working soley on dollars. Please provide further discussion how the CBI has control over the people on what they use as a market rate. If an average Iraqi has $1,000 and sells it for 1,200,000 ++, how is the CBI going to intervene to prevent such scenarios from happening?
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Please provide further information on how the CBI will go forward with closing the market rate gap. How would they stop an Iraqi holding dollars selling to another Iraqi for dinars. If I had I had $1,000 and say I will only accept 1,200,000 for trade - how is the CBI going to intervene for that scenario?