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binko
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Posts posted by binko
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this is saying that central bank of iraq's plan to remove the 3 zero's was aproved and vote on, new currency will be printed, and will be out with the old currency. they will send a letter out in 3 languges- aribic,kurtish,english.explaining how this will work. they have a sample saying what cost 1200 dinars now with the old currency will cost 200 cents in the new currency. it say this will take time will not happen over night
I think that the crappy translation is once again at fault here. They are saying that 1200 dinars will buy a dollar and then a dinar and 200 fils will also buy a dollar.......ie 1.2 dinars (post poppsy loppsy) if you want to believe it all.
But its the same old same old........only difference here is that they are saying that it will be a lingering process over years.
Which is really crappy if you believe them.
How does it serve their best interests anyway?
It doesn't do a thing for their international standing or economic progress unless they RV before releasing new currency.
So I'll drink to that.
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The fact that they say the same friggn thing ALL the friggn time - is such an overplay that I believe it really is a smokescreen.
The above quote strikes home, and while from 1993 and the circumstances where completely different, my point is, Iraq will do what's best for Iraq.
But do you really think that the powers that be would let them......come on, these Iraqis are so indebted to the liberating forces and international investment and oil sales that they will do what is dictated to be done by those with the mega interest in seeing their dinars bring a big return etc..........iraqi parliament is the most puppet like i have EVER seen. Its a friggn joke!
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I would like to say "my pleasure", but in reality, I hate this as much as anyone else.....7 years of waiting, and for what.....
I recently finished liquidating 90% of my cash holdings. Since I bought long ago, I've made all my money back, the 5 mil I still hold are free, and I can take a nice vacation too.
So, I'm in a zero risk situation and will hang around till the fat lady sings, just in case they perform some magic with the reported financial numbers.......hey, if the gurus end up being correct, 5 mil should be plenty, right?
Since the gurus make predictions, and while I'm rambling, allow me to make a prediction.
Iraq will RD sometime in 2012 and a RV will follow, but only after all the old dinar come home, or they are declared to be no longer redeemable.
In order to benefit from any RV, you will have to exchange for the new currency (while taking a loss on both sides of the exchange) and wait.
Too, there is a possibility that it might be "difficult" to exchange for the new currency.
Reality bites.
I agree - unfortunately ..........unless all this Lop talk is a smokescreen.
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I have ordered from Dinar Banker several times; it is possible that some of you are reading too much into this. (Please don't shoot the messenger!)
The last wire I sent to them went to "Global Transaction Services." My guess is that they are using a contractor who specializes in Order Entry and/or Fulfillment, to do data entry for them and just process all of the incoming orders, and do the accounting for them. Previous to this G.T.S., the wires were going to somewhere else. This situation, where they temporarily do not accept wires, has happened before, then they had a new wire destination, and I am guessing that they have become dis-satisfied with the performance or service that they are receiving from their sub-contractor, as they probably did before, or had some other falling out. Maybe the contractor cannot handle the volume, so they are making other arrangements...
I suspect that they have gone to locking the rate the same day as postmark instead of next day 9am, because many customers would be unhappy if they had no option by which to lock rate immediately, and they would lose business.
I think Ty is a great guy who served our country, one of my friends says he knows him personally, and I have been very impressed with hearing him speak on Call Squad; I tuned in just to hear him speak.
Does anyone think that they would still be taking orders at all if they had REAL HARD EVIDENCE of immediate RV? They are nice folks, but they are not fools, nor are they running a charity!
Yes Agreed and I recently used wire transfer to the new outfit.......probably just a wiring change........ Crazy how everyone wants to read RV into it. Would love the RV be now but this means zippo.
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This is the same "Talking Points" letter that was posted here before to LeBouder, whoever that is...had no letterhead as seen below...Maybe all Senators get these "Talking Points". I don't know.
Iraqi Dinar Fact Sheet
July 2011
• The U.S. Treasury does not hold Iraqi dinars. Official U.S. foreign exchange reserve assets are comprised of euro, yen, gold, and Special Drawing Rights (or SDRs), an international reserve asset created by the IMF in 1969 to supplement its member countries’ official reserves.
• A redenomination of the Iraqi currency would not lead to a revaluation by the same amount, and may have no effect on the currency’s value. Under a redenomination, a new currency replaces an old currency, but the value of the currency remains the same. On June 21, 2011, the Central Bank of Iraq (CBI) announced that it would be implementing a redenomination of the Iraqi dinar. Under the proposed redenomination, the Iraqi government would issue a new dinar note that will be equivalent to 1000 current dinars. The exchange rate would be 1.17 new dinars to the dollar, equivalent to 1,170 current dinars to the dollar.
• As a sovereign nation, Iraq has the sole responsibility for the management of its currency. The U.S. government is not in a position to revalue, or prevent the revaluation of, another country’s currency.
• The Iraqi dinar has been pegged at 1,170 dinars to the U.S. dollar since early January 2009. From 2006 to 2008, the CBI allowed the currency to appreciate by about 20 percent, primarily as a way to combat inflation (see chart at right). Inflation peaked at more than 70 percent in 2006 and has remained below 10 percent since early 2008.
• The Treasury Department does not prohibit U.S. citizens from exchanging dinar for dollars. Treasury is not aware of any U.S. financial institution engaged in the exchange of Iraqi dinars though there are some online money services businesses (MSBs) that advertise this service. Treasury requires certain MSBs to register with the Financial Crimes Enforcement Network (FinCEN), but does not recommend or endorse any such business.
• Executive Order 13303 does not pertain to U.S. citizens’ investments in the Iraqi dinar. The Order protects assets of the Development Fund for Iraq (DFI) and other Iraqi assets from legal attachments or liens. The Coalition Provisional Authority created the DFI in 2003 in order to promote the transparent use of Iraqi funds for purposes benefiting the people of Iraq.
= smokescreen-
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Here's a thought:
20Mill did a scenario of CBI auction buybacks of dinar.........looks like 30- 50Trillion dinar bought back per year, at least (based on more like a trillion per week to me).
Well thats been going on for several years right....
So if electronic is involved in there somehow then there's far more than enough to cover how ever many trillions up to about 300-500 Trillion or possibly more.
So definitely think there is capacity in that argument.
What say yee all
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Middle East Economic Survey
VOL. XLVIII
No 18
2-May-2005
The Foreign Exchange Auction In Iraq
By Simon Gray
Simon Gray is Adviser, Markets and Financial Infrastructure, Centre for Central Banking Studies (CCBS), Bank of England. During his secondment to the Coalition Provisional Authority (CPA) in Baghdad, he was Senior Advisor to the Central Bank of Iraq. He wrote this article for MEES.
The Central Bank of Iraq (CBI) introduced a foreign exchange auction on 4 October 2003, just under a fortnight before the start of the currency exchange (which replaced the old banknotes, and ran from 15 October to 15 January 2004). The timing was to a large extent dictated by that of the currency exchange, but the underlying need reflects Iraq’s position as a major oil-exporting country.
Background
The government’s revenue is predominantly in US dollars, from oil sales. To this extent, Iraq’s position is similar to that of many countries in the region. And in common with many countries in the region, its expenditure is largely in domestic currency, in this case Iraqi dinar. The Ministry of Finance therefore needs to sell dollars for dinar.
Typically, a Ministry of Finance with foreign currency revenues will sell surplus foreign exchange (it will use some for the purchase of imports for government projects etc; and may keep some in a separate oil stabilization fund) to the central bank; and the central bank will on-sell dollars to the market, via the banking system. Under a fixed exchange rate regime – and many oil-exporting countries in the region operate such a policy – it is clear at what rate the Ministry should sell to the central bank. The central bank can then on-sell, at the same rate, whenever banks request dollars. Prior to the war, Iraq operated a fixed exchange rate regime (albeit with a hopelessly non-market exchange rate), supported by exchange controls. But post war, the central bank was not in a position to operate a fixed exchange rate regime, and in any case did not want to lock into the exchange rate prevailing at the time.1
From the end of the war though summer 2003, the exchange rate was purely market-determined – the market in question being a street market for physical cash in three main locations in Baghdad. But the Ministry and central bank did not need to make use of this market, as official expenditure at that time was mostly in US dollar bills.2 From October, things had to change. Once the currency exchange was under way (from 15 October), it was clearly important – if only from a political point of view – for the government to make disbursements in the new Iraqi dinar, rather than predominantly in dollars as had been the case since May. This meant that the Ministry needed a reference rate at which it could sell dollars to the central bank; and the central bank needed a mechanism for on-selling dollars to the market. Without a mechanism to rechannel dollars to the economy, there would have been two consequences:
A shortage of dollars could hit the dinar exchange rate, leading potentially to a very sharp depreciation;
A dollar shortage would also cut off import supply, pushing up prices sharply. (Large amounts of dollar expenditure by the CPA and MoF had, predictably, fed through to a huge increase in imports, as previously suppressed demand could now be satisfied.)
Associating the introduction of the ‘new’ currency with sharp depreciation, cutting of the supply of consumer goods, and a hike in prices for those goods still available would have been disastrous.
An Auction As The Solution
The solution was to introduce a foreign exchange auction. This was kick-started by the CBI selling a small amount of its foreign exchange reserves to the market. Thereafter, the auction rate could be used for MoF dollar sales to the CBI (so that it would be a genuine market rate, rather than something based on a straw poll of street exchanges); and the market could bid for dollars in the auction to meet the level of demand. If demand was excessive, the rate would adjust.
We were aware that, once the new currency was available, the MoF would be selling several hundred million dollars a month to the CBI, and that auctions could easily exceed $10mn a time as the domestic demand generated by government expenditure (payment of salaries, pensions etc) fed though to import demand (since many consumer goods had to be imported), and thus demand for foreign currency. It was important to prepare the market for the auction system, and ideally to have a mechanism up and running, before the amounts became large. This meant starting in early October at the latest.
The full details of the auction need not be covered here. Importantly, several meetings were held with the commercial banks and the non-bank licensed foreign exchange dealers to discuss the mechanics and the purpose of the auction. Three dry runs of the auction were held, to give participants a better feel and ensure the mechanics worked. The first dry run was very messy; but by the end everyone understood not only how to complete bidding forms correctly, but how to participate in the price formation process and learn from the previous auctions.
All the banks and foreign exchange dealers also understood how the CBI would participate. It would look at the volume and price of bids from the market before deciding on its own participation, so that it could choose the cut-off rate. Clearly, no central bank can have full freedom in this: trying to keep the dinar too strong could lead to an unsustainable drain on limited reserves, while trying to hold back appreciation could have an inflationary impact. But at the margin, and for a time, the CBI could influence the rate. Since the market is allowed to participate in the auction in either direction (buying or selling dollars), it is possible that the central bank will not need to participate at all. But in practice there will nearly always be a large net demand for foreign currency by the market
.
Banks and licensed foreign exchange dealers were allowed to submit bids directly to the central bank; but the dealers had to accompany their bids by a confirmation from their bank that funds were available to honor the bid, if successful. Settlement is book-entry only, across accounts at the central bank. Most bids are made in the 15-30 minutes before the cut-off time for the auction; and results are published 30 minutes after the close of bidding. Details can be found on the CBI website (). Settlement is same-day. The short time-scale – only possible with book-entry settlement – helps to keep the auction and the rest of the market in line with each other.
The Auction, Exchange Rate Policy And Inflation
The first auction was held on 4 October 2003, and received a single bid, for $20,000. There was some debate about whether to accept it, since it was arguably below the market rate. But the CBI decided it was important to give a positive signal to the banks, to encourage participation in the future, and the bid was accepted. Within a couple of weeks, the bid rate at the auction and the street price – CBI staff went out three times a day to check prices at a range of locations (preferring those where prices were displayed, rather than given in response to a request) – had merged; and volumes were soon close to $10mn3. The majority of Iraqi banks participate regularly.
The CBI has said regularly in the auction result announcements that its aim is to achieve broad exchange rate stability, in order to support domestic price stability. There is no exchange rate target or band. The CBI has been able to meet demand, and there is not enough economic information for the market to take a strong view on what an ‘appropriate’ level of the exchange rate might be, certainly not to push for change in the rate.
But while the ‘right level’ was not clear, the CBI could be confident that excessive volatility was harmful. After the massive shocks to the economy and to society more widely in the previous months, it was important as far as possible to engender an atmosphere of stability – particularly in the early days of the currency exchange, when many Iraqis would see their income switching from dollar cash to new dinars. In any case, in view of the upward stickiness of some prices, it was likely that exchange rate volatility would tend to increase the level of inflation.
Especially in the early days, it was not clear what a ‘normal’ level of day to day volatility might be, since there was no ‘normal’ period to compare with. The chart above shows the daily returns on holdings of new Iraqi dinar, and clearly indicates much more volatility in the early days of the auction, and of the currency exchange, than more recently. Two particular spikes in the chart – in early December and mid January – can be linked to the announcement of Saddam’s capture (when it was not clear what the long term impact would/should be), and the end of the currency exchange, when the trend appreciation of the dinar (arguably starting with Saddam’s capture) led to ‘irrational exuberance’.
In the former case, the CBI made no attempt to stand against the trend, but did help to smooth it by the level and rate of its participation in the auctions. By contrast, the very sharp appreciation of the dinar in early January seemed unwarranted and almost certainly unsustainable; and it was clearly upsetting the market4. On this occasion – on 15 January 2004 – the CBI bought a small amount of dollars at the auction, and indicated that the recent appreciation of the dinar ‘was not supported by any recent political or economic announcements’. In other words, the CBI again avoided taking a stance on the appropriate level of the exchange rate, but merely noted that nothing had changed recently which would justify the very sharp movements in preceding days. Similar action in January 2005, just ahead of the national elections, was also undertaken in response to an increase in volatility, but otherwise the market has been remarkably quiet.
Reducing exchange rate volatility, and then supporting a remarkably stable nominal exchange rate since the beginning of 2004, has proved to be a very powerful tool in meeting the CBI’s objective of low domestic inflation (formalized in the new CBI law, dated 6 March 2004). In Iraq, as in many commodity-exporting open economies, there is a rapid pass-through from the exchange rate to domestic inflation. The correlation is bound to be unstable, as it will be affected by expectations, changes in the level of demand (eg reflecting changes in the security situation), changes in the direct costs of importing goods in an unsafe environment, and periodic supply disruptions. But prima facie, there is strong evidence that a stable exchange rate has helped to support price stability.
In fact, there were differing exchange rates depending on the denomination of note used (with a difference of 25-30%); and the rate was very unstable. The ID10,000 note was not widely accepted at face value, in part because of (legitimate) counterfeit concerns; and the smaller-denomination ID250 notes (worth around $0.12 at the time) could not be printed fast enough. Within a year of the first auction daily turnover was regularly over $25mn. In the words of a senior official at Rafidain on the evening of 14 January: "The market is going crazy. People are offering 1,000 for the dollar. What are you doing about it?"
More Information:
http://www.bankofengland.co.uk/education/ccbs/ls/pdf/lshb05.pdf (Banking in Low Income Countries by Simon T. Gray)
http://pubs.aeaweb.org/doi/pdfplus/10.1257/0895330042162395
http://www.nps.edu/Academics/centers/ccc/publications/OnlineJournal/2004/jul/looneyJul04.html
Thanks again 20M.........me I am very privileged to be in on this so late and with half your names sake worth.
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Binko - I found your proof! Now I don't want anybody on this site to ever question whether or not the CBI buys or sells IQD or USD... LOL
Middle East Economic Survey
VOL. XLVIII
No 18
2-May-2005
The Foreign Exchange Auction In Iraq
By Simon Gray
Simon Gray is Adviser, Markets and Financial Infrastructure, Centre for Central Banking Studies (CCBS), Bank of England. During his secondment to the Coalition Provisional Authority (CPA) in Baghdad, he was Senior Advisor to the Central Bank of Iraq. He wrote this article for MEES.
The Central Bank of Iraq (CBI) introduced a foreign exchange auction on 4 October 2003, just under a fortnight before the start of the currency exchange (which replaced the old banknotes, and ran from 15 October to 15 January 2004). The timing was to a large extent dictated by that of the currency exchange, but the underlying need reflects Iraq’s position as a major oil-exporting country.
Background
The government’s revenue is predominantly in US dollars, from oil sales. To this extent, Iraq’s position is similar to that of many countries in the region. And in common with many countries in the region, its expenditure is largely in domestic currency, in this case Iraqi dinar. The Ministry of Finance therefore needs to sell dollars for dinar.
Typically, a Ministry of Finance with foreign currency revenues will sell surplus foreign exchange (it will use some for the purchase of imports for government projects etc; and may keep some in a separate oil stabilization fund) to the central bank; and the central bank will on-sell dollars to the market, via the banking system. Under a fixed exchange rate regime – and many oil-exporting countries in the region operate such a policy – it is clear at what rate the Ministry should sell to the central bank. The central bank can then on-sell, at the same rate, whenever banks request dollars. Prior to the war, Iraq operated a fixed exchange rate regime (albeit with a hopelessly non-market exchange rate), supported by exchange controls. But post war, the central bank was not in a position to operate a fixed exchange rate regime, and in any case did not want to lock into the exchange rate prevailing at the time.1
From the end of the war though summer 2003, the exchange rate was purely market-determined – the market in question being a street market for physical cash in three main locations in Baghdad. But the Ministry and central bank did not need to make use of this market, as official expenditure at that time was mostly in US dollar bills.2 From October, things had to change. Once the currency exchange was under way (from 15 October), it was clearly important – if only from a political point of view – for the government to make disbursements in the new Iraqi dinar, rather than predominantly in dollars as had been the case since May. This meant that the Ministry needed a reference rate at which it could sell dollars to the central bank; and the central bank needed a mechanism for on-selling dollars to the market. Without a mechanism to rechannel dollars to the economy, there would have been two consequences:
A shortage of dollars could hit the dinar exchange rate, leading potentially to a very sharp depreciation;
A dollar shortage would also cut off import supply, pushing up prices sharply. (Large amounts of dollar expenditure by the CPA and MoF had, predictably, fed through to a huge increase in imports, as previously suppressed demand could now be satisfied.)
Associating the introduction of the ‘new’ currency with sharp depreciation, cutting of the supply of consumer goods, and a hike in prices for those goods still available would have been disastrous.
An Auction As The Solution
The solution was to introduce a foreign exchange auction. This was kick-started by the CBI selling a small amount of its foreign exchange reserves to the market. Thereafter, the auction rate could be used for MoF dollar sales to the CBI (so that it would be a genuine market rate, rather than something based on a straw poll of street exchanges); and the market could bid for dollars in the auction to meet the level of demand. If demand was excessive, the rate would adjust.
We were aware that, once the new currency was available, the MoF would be selling several hundred million dollars a month to the CBI, and that auctions could easily exceed $10mn a time as the domestic demand generated by government expenditure (payment of salaries, pensions etc) fed though to import demand (since many consumer goods had to be imported), and thus demand for foreign currency. It was important to prepare the market for the auction system, and ideally to have a mechanism up and running, before the amounts became large. This meant starting in early October at the latest.
The full details of the auction need not be covered here. Importantly, several meetings were held with the commercial banks and the non-bank licensed foreign exchange dealers to discuss the mechanics and the purpose of the auction. Three dry runs of the auction were held, to give participants a better feel and ensure the mechanics worked. The first dry run was very messy; but by the end everyone understood not only how to complete bidding forms correctly, but how to participate in the price formation process and learn from the previous auctions.
All the banks and foreign exchange dealers also understood how the CBI would participate. It would look at the volume and price of bids from the market before deciding on its own participation, so that it could choose the cut-off rate. Clearly, no central bank can have full freedom in this: trying to keep the dinar too strong could lead to an unsustainable drain on limited reserves, while trying to hold back appreciation could have an inflationary impact. But at the margin, and for a time, the CBI could influence the rate. Since the market is allowed to participate in the auction in either direction (buying or selling dollars), it is possible that the central bank will not need to participate at all. But in practice there will nearly always be a large net demand for foreign currency by the market
.
Banks and licensed foreign exchange dealers were allowed to submit bids directly to the central bank; but the dealers had to accompany their bids by a confirmation from their bank that funds were available to honor the bid, if successful. Settlement is book-entry only, across accounts at the central bank. Most bids are made in the 15-30 minutes before the cut-off time for the auction; and results are published 30 minutes after the close of bidding. Details can be found on the CBI website (). Settlement is same-day. The short time-scale – only possible with book-entry settlement – helps to keep the auction and the rest of the market in line with each other.
The Auction, Exchange Rate Policy And Inflation
The first auction was held on 4 October 2003, and received a single bid, for $20,000. There was some debate about whether to accept it, since it was arguably below the market rate. But the CBI decided it was important to give a positive signal to the banks, to encourage participation in the future, and the bid was accepted. Within a couple of weeks, the bid rate at the auction and the street price – CBI staff went out three times a day to check prices at a range of locations (preferring those where prices were displayed, rather than given in response to a request) – had merged; and volumes were soon close to $10mn3. The majority of Iraqi banks participate regularly.
The CBI has said regularly in the auction result announcements that its aim is to achieve broad exchange rate stability, in order to support domestic price stability. There is no exchange rate target or band. The CBI has been able to meet demand, and there is not enough economic information for the market to take a strong view on what an ‘appropriate’ level of the exchange rate might be, certainly not to push for change in the rate.
But while the ‘right level’ was not clear, the CBI could be confident that excessive volatility was harmful. After the massive shocks to the economy and to society more widely in the previous months, it was important as far as possible to engender an atmosphere of stability – particularly in the early days of the currency exchange, when many Iraqis would see their income switching from dollar cash to new dinars. In any case, in view of the upward stickiness of some prices, it was likely that exchange rate volatility would tend to increase the level of inflation.
Especially in the early days, it was not clear what a ‘normal’ level of day to day volatility might be, since there was no ‘normal’ period to compare with. The chart above shows the daily returns on holdings of new Iraqi dinar, and clearly indicates much more volatility in the early days of the auction, and of the currency exchange, than more recently. Two particular spikes in the chart – in early December and mid January – can be linked to the announcement of Saddam’s capture (when it was not clear what the long term impact would/should be), and the end of the currency exchange, when the trend appreciation of the dinar (arguably starting with Saddam’s capture) led to ‘irrational exuberance’.
In the former case, the CBI made no attempt to stand against the trend, but did help to smooth it by the level and rate of its participation in the auctions. By contrast, the very sharp appreciation of the dinar in early January seemed unwarranted and almost certainly unsustainable; and it was clearly upsetting the market4. On this occasion – on 15 January 2004 – the CBI bought a small amount of dollars at the auction, and indicated that the recent appreciation of the dinar ‘was not supported by any recent political or economic announcements’. In other words, the CBI again avoided taking a stance on the appropriate level of the exchange rate, but merely noted that nothing had changed recently which would justify the very sharp movements in preceding days. Similar action in January 2005, just ahead of the national elections, was also undertaken in response to an increase in volatility, but otherwise the market has been remarkably quiet.
Reducing exchange rate volatility, and then supporting a remarkably stable nominal exchange rate since the beginning of 2004, has proved to be a very powerful tool in meeting the CBI’s objective of low domestic inflation (formalized in the new CBI law, dated 6 March 2004). In Iraq, as in many commodity-exporting open economies, there is a rapid pass-through from the exchange rate to domestic inflation. The correlation is bound to be unstable, as it will be affected by expectations, changes in the level of demand (eg reflecting changes in the security situation), changes in the direct costs of importing goods in an unsafe environment, and periodic supply disruptions. But prima facie, there is strong evidence that a stable exchange rate has helped to support price stability.
In fact, there were differing exchange rates depending on the denomination of note used (with a difference of 25-30%); and the rate was very unstable. The ID10,000 note was not widely accepted at face value, in part because of (legitimate) counterfeit concerns; and the smaller-denomination ID250 notes (worth around $0.12 at the time) could not be printed fast enough. Within a year of the first auction daily turnover was regularly over $25mn. In the words of a senior official at Rafidain on the evening of 14 January: "The market is going crazy. People are offering 1,000 for the dollar. What are you doing about it?"
More Information:
http://www.bankofeng.../pdf/lshb05.pdf (Banking in Low Income Countries by Simon T. Gray)
http://pubs.aeaweb.o...895330042162395
http://www.nps.edu/A...ooneyJul04.html
http://www.bos.frb.o...04/ppdp0401.pdf
Read more: http://dinarvets.com/forums/index.php?/topic/78815-cbi-currency-auctions/#ixzz1UPp0hDDr
20M Many thanks for that! Mucho appreciato. And to the several others who responded to my post - thanks also.
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we all know how fast their government moves. looks like we are in for a longer wait
WHAT IS BEING SAID IS LOP LOP LOP !
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I saw those daily currency auctions there and considered that they were actually selling dinar for USD. !!!! ie the other way around.
I mean hey, where do all these dinarbanker and the likes get their masses of spanking new bills?
So I see it as highly expansionary! And to the reverse end!
They quote the auctions in USD and I assume USD equivalent because they are raking in USD from brokers who get it from you and me.
Prove if you can that they are buying back dinar........coz I say its the other way around.
Just saying IMO..........wish it weren't so but.......realism is where I am at.
20 you now know what sonny1 and his professors friends have known for a long time now. As I have stated on numerous occasions, the CBI has been removing 000 notes from circulation for some time. Now all you have to do is try and convince the lopsters of this. I gave up a long time ago. I tried posting that the CBI was buying dinar but it seems every time I did I was told I was wrong and I refuse to argue on a forum. You have said it in a way I couldn't. Great job my friend. Let's see which lopster speaks up first.
I sure hope you are right!
Isn't there anyway to find someone who really knows whether dinar or $$ are being sold at the auctions?
Also, I heard that the US forces are being paid in dinar not USD these days......so they must be getting lots of 000s out to the market , not removing them. This is not consistent. Can you explain this? Thanks.
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No LOP. Shabbs wants his currency to be STRONG and POWERFUL...a LOP ain't gonna do that. When the new currency comes out, your 25,000 Dinar note will be worth the same as 25 x 1,000 Dinar notes.
Shabbs was also heard to say that he and his financial Team have learned from the lopping in Turkey....they learned what NOT to do.
So chin up. No need to worry...we're almost there. hang on to your Dinars!!!
Cheers from Aussie.
I read that the 1000 dinar note will be a coin......I guess like a $1 aussie coin mate.
Not so sure about the lop not happening. I think it will lop and then strengthen. Maybe 3-5 bucks.
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This is really good news..! In listening to the Call Squads recording from last night, they talk about the coins, and the reason why they haven't come out before now. Primarily it is because of the Copper Value in the coin. Meaning that the copper (mineral) was worth more than the face value of the actual coin....but now....who would want to Melt Down a coin that is worth $25.00? These coins will be the first introduction of lower denoms.....
To hear more compilations of these fantastic news articles, I highly recommend listening to last nights call: http://www.another site.com/
Wish I could be more specific, but there is too much information to remember
The coins won't be worth $25. I think that is wrong. They haven't come out now simply because they are not relevant until the three zeros are dropped and the internal economy is rebooted at three zeroes less. When they are released they will be equivalent to coins say in the USA. When the Dinar RV at say $1 or more these coins are the...what do you call em....instead of "cents", I think "fils" . And then the lower new denom notes will be just what they say they are- ie approx 1 dinar, 5 dinar, 10, 20 50 100 dinar - yes . Simple.
All existing on the ground notes in iraq will need to be exchanged for these lower denom. ie trade your 1000 in for a 1dinar new note, trade 4 of your 25,000 notes there for one new 100dinar note. Loaf of bread used to cost 2000 now will cost 2 x 1 dinar notes or 4 x 50fil coins. Pretty darn simple me thinks.
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I appreciate your response but I believe I covered what would happen IMO with this in my post...
Outside only RV: Wouldn’t there be massive rioting in Iraq if they found out that outsiders made millions from their Blood, Sweat and years of Tears? Wouldn’t they be finding every way possible to get their cash out of country so they could cash-in? I don’t think our Amazing Soldiers would be very happy as the pride of our nation fought for a stronger Iraq not to weaken one. (In addition I think it's reasonable to assume that a lot of Iraqi's have 50,000 IQD considering the current value (apx. $50 USD).
I found your closing statement humurous until your "Apologise to negroes." comment. I'm not a fan of Obama but I am a fan of a world where we are judged on the content of our character.
If / when it RVs I believe it will be tied with the 000s dropped from INTERNAL pricing in Iraq.
If it is approx 1:1 rate with USD then the locals will be able to buy exactly the same stuff and only small currency will be valid......thats why there is such a big run on locals getting rid of their big notes for USD these past days. This activity to sweep the streets of large notes is fully consistent with an impending RV 1:1 ish.
Addressing Riots: I think NOT.
When the RV occurs yes they may or may not hardly know what massive money is being made by the USA and currency speculators in the first instance, and that will quickly be replaced with realisation that there is now a real economy that they are living in. I also think that the Iraqi government will, with strategic timing, pump some sort of massive stimulus package to the people in many forms - as learned over these years from their close association with "democratic" powers that be with their nouveau socialistic ways of appeasing the masses.
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Doesn't matter. Many will continue conducting business, even after RV. They will continue to sell right up to RV, or even after. No worries.
If they sell after the RV it will be at the RV price plus margin, not the absurdly low rates we have now.
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What? That isn't how debt instruments work...
Money isn't real. We weigh debt instruments against each other as we don't base our monetary system on commodities anymore. So 3 trillion dollars is just a balance sheet number that can be represented by workforce contracts and political liaisons between nations, and in the end, things get shmoozed over. I know that sounds like B.S., but fortunately, that's how things work. If we were to meticulously bean-count every unit of currency and "money" in the world and expect people to honor their parts based on their economies, we'd be in even worse conditions than we are now.
The 3 trillion dollars will come from nowhere, from no one. It's simply a way to balance and measure debt instruments to achieve future economic and inter-governmental goals, like a one-world electronic currency, and a one-world government, and all those other freedom-vamping things that The Elite are all too eager to see happen.
That's all I got, peace out...
Yes I agree.
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It was for 587 ounces of gold for 1,000,000 dinar.
If you change it to covert gold by putting 587 ounces of gold then covert that it shows 1,097,000 dinar
Yes its a good solid glitch. Silver and other currencies not glitched but yes I don't mind buying 587oz of pure gold with my 1mill dinar. Nice Glitch. And a conversion rate of $.86 seems very coincidental to valuations we have been hearing......over all nice thumbs up.
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Hello, I have been following this site for a few decades now, but have had no reason to post until I got this information! I can 100% assure you I am not a pumper because I have met myself and know myself very well, and I would not prey on innocent people like that!
So, I heard this rumor from my Siamese twin, who is a Lt General in the United States of Iraq's advanced sand deployment unit. As he is my sister, and very prone to gullibility, I decided would check in with my other source. My other source, ironically, is the nephew of Shabibi's favorite Camel! They both said that, with absolute certainty that Iraq is going to have important meetings about currency over the next two weeks!
To prove I am not lieing, my sister's name is Alex Smith, and the nephew of one of Shab's most trusted advisers is Dub-Thumper.
This is incontrovertible proof that the RV will happen within hours, and will be really freaking high!
Now, if I were a pumper I would have given a date and rate, so again, to anyone with the trained mind, this is FACT not rumor!
Say what? Something about a siamese monkey speaking through the eye of a camel or something?
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This is great. All this confusion and run on the dollar - (I mean just how much more valueless can the dinar get! - its just misguided fear) - the confusion and disruption points to the need for a speedy implementation.
And the zeros will go with a simple RV, its the best cleanest quickest solution IMO........everyone will be very happy on the ground and us outside holding the big notes.
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You are so right, it is scriptural what will happen in Iraq...and not as some guru say's either...and God is not a liar...."Iraq will be the mecca of the world that all will marvel over"...after the media let's us see this...eventually?...lol....
P.S. On another note, I've always wondered if some of these guru's and liars...were'nt put out there so as to keep speculation down...similar to the cheap tabloids that people read....some love that crap and some hate it...but if anything inside of one of those junk news tabloids was relevant, it would never be noticed by those that could do anythhing about it or make a difference anyway...just a good laugh to read and chunk.....think about this, the things the intellectual or real investors would be looking for, in our case with the dinars...most of them would'nt even look at the dinar...or at least some of the one's that could have an impact monetarily by investing largely....all due to it looking like a joke after reading a few of the infamous "RV tomorrow" funnies!...lol...could all of this "trash" be a way to keep a certain saturation percentage level where it is needed...or balanced?...I mean hey, some bankers say it is a scam, and banks have been selling it by the tons...and many bankers own it as well....but banks can't say anything good about it?....but appx. 400 banks caved in last year alone, then the banks push their almost no-paying CD's and other losing propositions, while inflation sends you backwards......I'M NOT SO SURE THIS THING WAS'NT SET UP BY DESIGN TO LOOK LIKE A BIG JOKE....AND MAYBE IT HAD TO BE THIS WAY...AS EVERYTHING HAS A BALANCE...NOTHING WORKS IF EVERYONE GET'S IN IT....IT SURE IS SOMETHING TO THINK ABOUT?
couldn't agree more, and its for this double jeopardy reason that it just may come good.
This is the weirdest investment I have made. I have made some high risk investments and lost it all, so I am familiar with risk. With this one though, I only put in a small amount ( which would be sufficient for a big gain if it comes through at anything above 10c in my book.) and am happy to watch the banter until it RVs. and IMO it will RV. No need for a bunny ear just revalue and see the big notes disappear from street use.
I do see that opportunism re hype and pumping and dinar sales is standard business in the good ol USA and so that does't disqualify this investment at all to me.
I am concerned about the overall money supply but so long as the street level is managed and the massive iqd that are turned in by us all for our millions is converted to oil value from Iraq via the fed then it just may fly. Its a bit tricky, but it COULD happen. So I'm in - with a manageable investment - and will definitely not lay away any more based on rumor of a date.
Keep it real, it may happen, its not a lottery ticket - its a peculiar high risk and long term investment that will, I think pay off, but just how much.........don't absolutely count of massive but certainly a decent return. Yet don't rule out massive.
And do seek Him first.
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Sounds like you got it all figure out in your 4 months. You're right...That may have been sufficient time for you to do diligent research and to form an educated opinion. Of which you are completely entitled. What I can tell you is 4 months is not sufficient time to see the changing faces on this site or the waves of investors. The broken hearts and deep regrets that each wave brings forth takes an equal number away as it resides. You see... the homeless vet that came on here a year ago wondering if it was really going to save him like so many people told him it would... bothers me more than you know. The people losing or that have now lost their homes or filed bankruptsy. Many buying Dinar for their hail mary saving touchdown because the RV is upon us. The folks with cancer or who's spouses are afflicted wanting this miracle to save them or their family. The divorces that are or have occurred and the unemployed that come in here thinking this will fix it.... this will fix it. As they tell others to invest and to buy more because it is a can't miss investment because some gurus that have 4 whole months of research say it will.
You see... being positive is a beautiful thing in life. Frankly, there isn't enough of it in the world. But my friend... just as their are people that know more than me their are people that know more than you. Are you so positive and smart that you are too naive to listen? I thank God there are people on this site kind enough and strong enough to offer a different and more grounded perspective. People that aim to teach and share their Dinar education that care about the lives of the people I mentioned above. People that stand up to the pumper gurus that are outright coning others for one of 2 reasons: they plan on making money from them or they are fulfilling that insatiable ego because for once in their lives they are popular at something and finally have a medium for their voice. Adam is right up front that this is a business for him and I love that. The other's intentions lurk in the shadows TBD. You have a lot to learn. No amount of cheerleading is going to prepare people more then learning about their investment from all sides through their own research as well as listening to others. Just curious but do you think that Bernie Madoff investors thought the naysayers on that investment were negative and stupid too?
I have high hopes for this investment or I wouldn't be in it. I have contingency plans if it doesn't pan out. It is too bad you decided to do a drive by shooting post because you sound like an intelligent poster that could offer up good discussion.
Very balanced and compassionate understanding of the human condition as relates to this investment. I got suckered into the idea of 3,000+ multiple gain only a couple of weeks ago and have been intensely researching it. I nearly wasn't going to pay the final 90% of the layaway except that I figure a 2-3x return is fairly close so I paid it and get my 25k notes in a day or two. The second layaway comes due for its 90% final payment in a few days and I am quite likely going to to just let that 10% just fly off because I doubled up on June 30th believing that was the final day for buying Dinar at these rates. I have enough invested in this. Please know that my investment in Dinar represents only about 1% of my portfolio of investments. Keep it real folk. Be blessed in life. His Spirit is life.......the money is a tool, and sometimes a tool that can squish the life out of you. Be careful. Give thanks and hope truly only in Him.
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complete waste of brain power
ha you got like -37 for that.......but you know what.......your kinda right! Watch I'll get a smattering of red too!
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OK great, so it's happening tomorrow. Great. Amazing how they know this stuff. How do they know this stuff?
Oh, wait, was this a couple of days ago? oopsie.
Oh well, there's always tomorrow.
LOL ha ha yes its happening tomorrow......oh I mean yesterday..... broken record. But ever hopeful.
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You gotta read the whole article and put it into context though.....that one line sounds great, but its the rest of the article that explains the process of getting a lower denom with higher appreciation....
Turkey did both....they redenominated then once that process was complete, they raised the value of the new currency
I think you have the clearest head here. I agree, it looks like a lop followed by reasonable controlled appreciation.
I see a 50 - 300% return here and not much more.
See, people look to much to the government, UN sanctions, etc. etc.
We have to take into consideration that their banking system is different than ours.
It appears they are on their way to implementing a basel 3 banking system.
The US government is on a basel 1 banking system with some basel 2 incorporated.
So their #s they give us, are not the #s we would or should perceive them to be when comparing it to how the US conducts banking activity
Keep that in mind....
I.e., the way that the M2 is valued is entirely different in Iraq than how it is done in the US.
This is maybe a way the massive returns could be realised. But I don't understand the banking system differences. I do think that the only way an RV could happen without removing existing currency is if there is an adjustment internally within Iraq such that the dinar is valued differently to outside......but how could that happen? I just don't see it. Is it possible somehow? Can you explain if so plz?
Open Market Operations aka "Currency Auctions"
in Iraq & Dinar Related News
Posted
May I.
Its basically the LOP which when he says "Homogenous Function Degree Zero" its basically saying that there is no change to valuation. It serves nothing to really strengthen the currency and is only a smoke screen to what really needs to be going on.
An RV may be very close as this so called LOP may never need to happen if much of the money supply has been taken back via the auctions and whatever other mechanisms they have.