Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content

rockfl9

Lopster
  • Content Count

    2,584
  • Joined

  • Last visited

Community Reputation

-197

About rockfl9

  • Rank
    Senior Member

Profile Information

  • Gender
    Not Telling

Recent Profile Visitors

17,390 profile views
  1. rockfl9

    IQD on FOREX

    EC, from what I have read the BIS is like the Supreme Court of the banking world. Central banks don't have a choice . If they want to deal with other central banks they must abide by BIS directives. The penalty is ISOLATION. One thing for certain the BIS does not allow banks to manipulate it's exchange rate to make a profit . It expects inter bank exchanges to be at par , that is buy and sell at one price over a period of time.
  2. rockfl9

    IQD on FOREX

    I wish you luck DB .. It looks like you are going at it the right way, that is Learn as much as you can BEFORE putting any real money to work. Even then be prepared to make some mistakes . One tip I can give is when you learn you have made a mistake GET OUT .. Dont waste time and money trying it save a bad trade. When I buy a stock I pick a point , time and amount for keeping it , and if it fails that test i'm out.
  3. rockfl9

    IQD on FOREX

    EC,, A good explanation .! The FOREX is only a reporting service. There are currency traders around the who post bids and offers and the FOREX generally posts the mid-point . But I am sure they are in some way regulated. For example the Interbank market limited to the central banks and large money_centered banks are regulated by the BIS . It is a very elite group that trades in private. Currencies are commodities and regulated as such.This is what you will find on forex. Regulated by a countries commodity regulators. A note here is that these dealers seldom deal with Physical currencies . The trades are between accounts.The problem dinar holders will have is to find an institution that will collect the dinar and when they find they may have more than they can sell locally , send the excess back to the CBI. That institution does not exist today.
  4. rockfl9

    IQD on FOREX

    Wondered what happened to you. NO .!!!!!! Way back, some how banks were able to get dinar through official channels . Possibly a US bank operating with the CPA. Then , I'm guessing here , that bank ceased to operate . Or policy changed and taking dinar out of the country was prohibited. My guess about 2006. If you read the CBI law it makes some specific statements that the IQD intended for consumption ONLY . IN IRAQ. That is it is not to be transported IN or OUT of the country. I remember a email from Mr .Issa when asked by a member here if they could send IQD to be deposited into an account and he replied, NO! IT would NOT be accepted. SO when you bought IQD in those days , it was somehow obtained from banking channels but it was a mistake. and the banks no longer offered it. That opened the door for the dealer channel , to find unscrupulous Iraqi's to smuggle it out . Only time will tell if the GOI will change the law and allow it back into the country.
  5. Don't look for IQD on FOREX for a (long ) while. My guess is NEVER. The reason is simple. OFFICIALLY the IQD DOES NOT EXIST.. The CBI wants it that way. IT was Never intended to leave the country.. What you have was smuggled out. The banks and pro currency traders know that . IF the CBI were to issue a BUY BACK it would only happen in country . Currencies are traded on FOREX because people want to BUY things that must be paid for in a country's domestic currency.. Right now Iraq doesn't produce anything that is exported except oil and gas priced in dollars.
  6. I forgot to add one more comment. What IF the CBI were to actually buy IQD at 10 cents !!! ALL that " CHUNKY MONEY " would come out of the mattresses . FAST. Iraqis know they can buy anything with dollars . Not so with IQD,.
  7. You can sell anything at any price (offered) on Ebay, ,, , I heard of a person that sold bags of DIRT !!!! Did you read AMs July 12 message ? It has a couple of unusual assumptions . One is that the CBI would directly ?? offer to buy back IQD at a profit to the seller. There is no way to do that except in Iraq. Once the dinar is circulated the CBI NEVER expects to get it back. Trading is done thru the FOREX market in general and here the price is set by demand..Central banks only deal with other central banks and regulated by the BIS. Again doing the Math. If the CBI were to set the rate at 10 cents ( which it can do for the Iraqi market) BUT NOT increase the reserves that would be a FLOAT in the International Market and that would be a dilution in value of 100 ( or more ) ... The attempt would be viewed as a price manipulation... The BIS/IMF have rules against overt price manipulations and would send the CBI to the penalty box. i.e. If the CBI were to actually do that in Iraq it would be a drain on the reserves and make the IQD worth les Internationally...
  8. I know the guru's have touted that there will be an RV which will create enormous demand for IQD and all you have to do is go into a bank and EXCHANGE for dollars. But consider that if the RV is .10 that is $100K per mil ! WHO has that kind of money to put at risk? Dinarians would have waited 17 years for that ., It could be another 17 years and the IQD would go nowhere ( the bloom is off the rose ). In the last 15 years we have seen several problems for Iraq. The most serious financially is the loss of income. The solution was to reduce production which also reduces income. Iraq is going (?) broke. The NET is that if Iraq were to attempt an RV of any amount under these conditions --- NO educated currency manager would BELIEVE it !
  9. That's a far cry from going to a BANK and exchanging whole mils COD !!! Although banks cant avoid handling USD fear of contamination could make them avoid taking in IQD. Maybe they will require appointments and meet you at the door wearing PPEs.
  10. I am sure there is no negative selling price for anything.. It has to be a quirk in the reporting system ! If some dollars were paid by the holder of the contract then that was the price paid for the oil. Of course the seller did suffer a paper loss. As with most commodities there is always a dealer waiting to swoop in on a real bargain .. Back to the RV news. strange that Ali Alak would publish a report explaining the DEVALUATION process ! And a few economists caught it. Could he be setting things up for a devaluation.. That is not good news for dinarians. The GOI has always had a financial reporting problem. One side thinks there is $70B in the treasury and the other says it is only $600M ? If they do not have enough to pay the bills ( salaries) and cannot or won't borrow to cover , the country ( and it's bank ) will collapse. IQD will be worthless even in Iraq. Even 1500:1 would be a Wonder. Dinar buy-back ?? could this be another SCAM??? E.g. start a rumor there is a shortage. AHHA something is going to happen. Now offer a BUY-back .. HAHAAAAA THEY KNOW SOMETHING... GOTTA GET SUMMORE Dinar . Whoops the price is now $1150. DARN !
  11. Hello EC.. You maybe correct when it comes to a futures contract. But it is a stretch of the imagination to think that the deal would have to close for such a impossible amount . Surely if someone had that contract for say $41 and sold it for $1 , somebody got that oil for $1 . It was a loss in the contract of $40 BUT the oil sold for $1 NOT MINUS $40. but that may be the way it had to be reported.. Speculators loose some money in futures but the commodity always gets sold for some amount of REAL money. It does remind me of an investment class I had where the prof said " " NEVER invest in futures or CURRENCIES ,leave those to the pros. You could end up with a box car of porkbellies !!!
  12. Although it is probably meaningless to comment at this time , the report of a negative price for oil was an ERROR. The lowest price for the sale of ANY commodity is ZERO CENTS. That would be FREE. You cant buy anything for MINUS one cent , There is no way to account for Negative moneys ... It was probably supposed to be a -40% drop and got entered in the price field. THE lowest sale price for oil THIS YEAR was $19.74. Mark that up to Comodity Trading 101.
  13. The only real income Iraq gets is USD.. It can use USD to import things needed for the military or ration card items BUT it must pay salaries in dinar and to do that it must go to the banks and exchange dollars for dinar . That has been called an AUCTION in the past and it will continue in the future no matter what it is called. Right now things are closed up. But soon the people will need other items and will need dollars. I haven't seen what the latest HCL law looks like BUT the original law said that ALL crude production must be controlled by the central . That means the Kurds would have to surrender control of their oil fields ---- That was the sticking point. I DO NOT believe the Kurds would ever agree to that condition. Agreed they would Deliver a portion of the product But not control of the fields.
  14. I dont think the auctions will stop. The proposal is that control of the auctions move from the CBI to the MOF... Be careful here . The CBI was doing a good job keeping the rate stable which made it's major customers ( the importers) happy and rich. If the MOF takes over it will concentrate on meeting the budget for salaries etc. and DAMN the importers !! Also the MOF does not have the experience to run the auctions and we should expect some foul ups during the learning period.. Expect shortages of goods and unstable prices. Certainly the importers were cheating and the CBI probably know that .. But was aware that if they reported them shutting any importer down would not solve the problem and possibly their own employees were complicit. If this goes thru expect some interesting events .
  15. Continued. IF the bonds go into DEFAULT the CBI is BANKRUPT and thus would have no standing as an International institution. That is only a logical conclusion .. But in todays world some thing would have to serve as an exchange agent for the GOI at least on a cash in/out basis. Iraq's oil dollars would be collected and paid out thru Banks in other countries. I know I am painting a bleak picture for Dinarians to expect an RV of any size that would be profitable . But it is a cruel world .
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.