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dinaris4me

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About dinaris4me

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  1. I would disagree with stryker on many of his points and agree with a few of them. What most of the article explains is why it is necessary to replace the currency with a new one. If you look at the projected growth of their M1(cash dinar) from 30 trillion to 70 trillion in 2015, they are saying it would be much less expensive to replace it with a new one (minus the three zeros) than it would be to stay on the path they are on. Stryker and others who say the are "removing the three zero bills from circulation" miss a very very basic component. Since there is only 30 trillion in cash out of a basic money supply of 70 trillion, then the most they could remove if they took every cash dinar out of circulation would be 30 trillion, which would still leave 30 trillion and that is under the extreme and unattainable situation of removing ALL cash. So the best case would be maybe reducing it 5 to 10 trillion. That would get them no where near the 30 billion they need to be at.
  2. They moved again in jan 2012. If was worth more why not move it more? I think the 2% limit is only on openly traded currencies
  3. http://www.imf.org/e...010/cr10316.pdf The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis since October 4, 2003. The central bank followed a policy of exchange rate stability which has translated in a de facto peg of the exchange rate since early 2004. However, from November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate. As a result, the exchange rate arrangement of Iraq was reclassified to the category of crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of Iraq was reclassified effective January 1 2009 as a stabilized Arrangement. It is a crawling peg...why wouldn't they start raising the rate like they did in Jan if they have removed that much dinar? Why wait to do it all at once?
  4. they have been increasing the value a little at a time over the last several years, why wouldn't they continue to do that and if it is undervalued why not increase it a little at a time as they have been doing?? It would have a lot less of a shock to their economy and they could stop it when ever it no longer was seen as a value. Why do all of this and then wait and wait and the increase the value 100,000%? Doesn't seem like a very good plan.
  5. Maybe they are trying to educate the go RVers!
  6. If there is 9 trillion US dollars with a GDP of 14 trillion, compared to 70 trillion iqd with a GDP of 100 billion, how can they be similar in value?
  7. Iraq will do what is best for Iraq as well as what is fiscally possible.
  8. It's not wether they can RV or not. They have already RV'd several times, most recently in January. The question is to what magnitude can they RV. Based on the information available 18% seems about as good as its going to get.
  9. Not likely and virtually impossible. There is no value in a sudden increase to Iraq only to speculators.
  10. It mostly changes their purchasing power for imports. If they gradually increased the rate they would not need to adjust salaries. It wouldnt neccessarily impact local pricing. At least not right away.
  11. Why is it that some come to the LOP section... Just to call people arrogant for understanding a RD but never offer any argument or defense of what they believe...it comes across as someone who can't win an argument so they attack the person instead...I would much prefer to hear how you think Iraq can pay for the mythical RV...but I doubt that will happen.
  12. They have taken many measures in preparation of replacing the currency. They have stated it would take three phases and I think they are well into the first phase. It doesn't mean they are reducing the amount in circulation...which they aren't as indicated by their financials.
  13. This was a year ago but seems to be headed to an obvious conclusion.
  14. The 1000 to 1 may be the high end of what they can do... Seems the local pressure is pushing it the other direction...I enjoyed your theories and would agree with most of them...don't be too hard on the pro RVer's...I remember when you worked hard at defending them trying to prove it was possible....best of luck
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