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zul

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About zul

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  1. zul

    Go Iraq Part 6

    8-22-2019 Newshound Guru Kaperoni Does anyone actually believe the CBI could RV or RI the dinar at 1 to $1 or greater with an excess of 42 trillion dinars in circulation? That is 3x's the worlds money supply. It simply cannot be done. -------------------------------------------------------- Iraq cannot RV because they have 42 trillion dinar in circulation. 😭Loppers' fav. statement. And now Kaperoni's as well. I'd say they are looking at a very narrow angle. I agree, IF (and that is a big IF), IF there are 42 trillion dinar out there, there is no way Iraq could RV. But.....in the financial world, what you see & what you hear is not always what it is. And we have seen too many examples of this over the years. Currency always represent wealth. Almost every country has a central bank that is in charge of managing the wealth/quantity of money in circulation. In Iraq, the central bank is CBI and the currency is, of course, the dinar. But due to its 'position' and limitations (under Art.14), dinar has not actually reach its full potential of a currency as a medium of exchange, a store of value or as a principal measure of wealth. Not yet. And then..... we have the 'glorious' dollar....fulfilling ALL the role of a real money, 'floating' in the Iraqi market, side by side with the dinar. Now..... ~ What if the policy to allow dinar and dollar floating/operating side by side in the Iraqi market IS by design, to transfer wealth from dinar to dollar. ~ What if pitting the dinar with all its limitations ( under art.14) against the glorious dollar is intentional, so that dollar will reign, thus increasing the demand for dollar instead of dinar; giving CBI the much needed space to restructure/rework their currency. ~ What if CBI already have a mechanism (running) that withdraws IQD from the market.....without disrupting their economic lifeblood (i.e their financial sector). And without attracting too much attentions. ~ What if those 42 trillion (or 35 trillion dinar, quoted by others) are not 'out there' already? (Not all of them...) ~ What if those withdrawn dinar are already in CBI's vaults but not technically classified/reflected as CBI's (assets or liabilities). See....there are other possibilities/angles that they have never looked at (most of which are happening right before their eyes) and yet they are waving the flag of NO RV... Bros, anything to add...?
  2. We have seen circulars/notifications from CBI recently, more than once, reminding commercial banks on the procedures of exchanging currencies (incl. Dollars and Euro)......yeah that's a big deal. And it looks like, they are preparing/expecting massive exchanges in the not-too-distant future. Even if we assumed all the 77% chunky money (in the news) are dinar, I would like to think that most of them are now already sitting in the CBI vaults, as commercial banks reserves ~ collected by the banks, when they (iraqis) exchanged their dinars for dollars. Note: Commercial banks reserves (eventho' they are kept in the central bank vaults) are still considered as M1 (currency in circulation) by the central bank because they still belong to the commercial banks, by definitions.
  3. Haha....i'm sure some of them DO keep dinar in their homes. What i was trying to say is (re: above post)~ if Iraq were to RV, not all of those 77% will be RVed because I believe large part of the 77% Iraqi currency are in dollars.
  4. Hi Floridian, If I may, I want to share my opinion on this. But first, let me quote an article on 'chunky' money or "mattress money" 12-12-2015 02:36 PM He revealed the central bank governor on the Keywords , earlier, that 77% of the Iraqi currency traded in the market are chunky in residential buildings, pointing out that "these funds are outside the banking sector." Now......I'm not too sure if all these 77% Iraqi currency 'traded in the market' are all dinars, simply because of the 'dominance' of USD in Iraqi market. Iraqis (as we know it) always prefer dollars for many biz transactions and savings. I would too if I were living in Iraq Why they love USD? Because ~ "We trust the dollar more. The dollar does not go up and down, it is fixed," Even now, many still take whatever opportunities they have to change their dinars into hard currency. At one time, some bank officials, were reportedly, making big money by buying dollars at the bank’s auction at a rate of 1,190 dinars for the dollar and then sell those dollars on the market for 1,250 dinars. All these money quickly becomes 'chunky money' (part of the 77%), meaning they are traded only in the market outside the banking system. So....there u go, my reason on why I don't think most of the 77% chunky money are dinars. Even in the news....they did not mentioned those 77% are dinars, per se, only Iraqi currency. Just my opinion, of course.......
  5. love it..../~ well it certainly will be 'something totally different' from all their previous budgets. *their words* Git up!
  6. zul

    Go Iraq Part 6

    Same language as their FML...
  7. TQ SB / the good stuff are already in the news, I just break them down.... Hope this news will take us to where we should already be.
  8. So that's the triggers....../ Been wondering why all of a sudden they have all these interest/news about the reintroduction & re-work of coins.
  9. zul

    Go Iraq Part 6

    See u in Maui....... 🍹
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