eosirl

I thought it was this combination of the minister of Finance and the CBI that screwed everything up in December, which the legality of powers to adjust the exchange rate came into play after the damage was done. The investigation concluded that the MOF didn't have the powers to make changes to the exchange rate. Then, it was attributed to the IMF requirements. How convenient!. If that had been the case, it would have been mentioned immediately and no need for an investigate on the legality to begin with. One would have thought the CBI would have stood up to defend its own powers but it didn't. Bribery, corruption, in league with Iran, etc.... take you pick. Now we see the same combination of clowns allegedly saying something that hints at best to a major adjustment. Brace yourselves, one doesn't know which way these inept bozos will move the rate.

One of these things is not like the other, one of these things just doesn't belong, if you can guess which thing is not like the other, before I finish my dinar song! It's the legal committee not the whole parliament, and it is only one member of that committee speaking here. If my memory serves me correctly there was a great legal debacle over the changing of the exchange rate regarding the legal right to do so, a) Was it the Governor of the CBI or b) the Minister of the Finance. While the two roles are greatly different, they both deal with Iraq's money. The CBI is responsible to ensure that there is a money supply to the banks to provide loans at desired interest rates. This is included in monetary policy which the CBI is responsible for. The Parliament is responsible for spending it, in terms of projects etc. This is called fiscal policy and which a budget is needed to show where the country's revenues have been allocated. Naturally the two can be in conflict. The CBI wants to save and build its reserves to back its currency while the govt wants that money to spend. Therefore the two can be at logger heads, but neither one can have control over the other. It was my understanding that the legal committee agreed that only the governor of the CBI was entitled to make any changes to the ex change and it was outside the realm of the Minister of Finance to interfere with that. So in hindsight it seems that the MoF are no right in his assertion that he could adjust the rate according to his wishes. It was mentioned in articles that both the governor and MoF were to be question in the next session of parliament. The main cause of concern was why did the governor capitulate with the MoF in changing the rate. Was the governor threatened in any way??? Who knows? Regardless of the reason, the poor in the country has suffered. So bottom line, the government as in the Iraqi parliament can't adjust the exchange rate now or ever, not even in 4 years ten years, etc. It will always be the governor of the CBI right to make the change. Even if the dinar is currently fixed in its ex rate, it doesn't mean it can be changed later on again at the prerogative of the CBI. So whatever Hamza says in this article it's nothing more than opinion oh his part or at worst an attempt to dissuade speculation in the dinar.

Yare absolutely right! The process of converting a currency is a standard procedure. I have done currency exchanges many times on my international trips. I always ask for a quote, even if the rate is displayed on the screens, Why? Simply because when asking for a quote, they will present you with a proforma receipt which shows the amount you you requested to exchange and the bank's fees if any, and then net amount you will receive in the exchange-currency of your choice. Then you can say Nay or Yay. Just got to watch the spread which is the difference between the bank's selling price and buy price. The wider the spread, the more the bank profits from the transaction. One strategy for the bank to lure you in, could be, to say no fees, but have a wider spread than another bank. It's buyer beware. How do you figure out which bank is best? After getting a quote from a bank, one needs to ask how long the quote is valid for. The quotes themselves don't last forever. Then get another quote from another bank and finally compare the two receipts. The receipt with the biggest net total in your pocket is the bank to go with.

Oh I totally agree, getting the dinar on the forex is but one step in the process of Iraq's reconstruction in my opinion. The UN had indeed paid a visit to Iraq several weeks ago. I feel certain it wasn't the weather they were chatting about. The UN with is designed planned projects will assist the govt. of Iraq in its reconstruction as per those white papers the Iraqi govt. spoke about months back.

I would think so that's it's more. This is from state to state. Whereas the other financial institutions as you have mentions are there for their own purpose. The fact this is the US Ambassador to Iraq, and he is the official representative of the US president, is very telling. I see if any permission was needed from the US to go forth with Iraqi reforms, they have the US permission in my opinion from this meeting.

Thanks Carrello. Finally it's nice to see someone who comprehends basic algebra in terms of keeping Dinars dinars and not in the arbitrarily switching to USD in the middle of the computation.

Excellent article explanation on how the dinar could be introduced to the forex fixed to a basket of currencies with the percentages prorated. From the graph it takes the high and low rates out of the dinar's value equation and smooths the exchange rates. The more currencies in the basket and depending on the percentages assigned can give a high overall average rate indicated by the bolded broken green dotted line. Thanks Laid Back

Oh come one Carrello, where's your sense of humor? What makes you think that I don't speak 3 languages and have lived in several countries too. The paranoid reference was in relation to you not being party to Blackrobes circle of private information and the proposed idea that BR and I were previously associated, which again you were categorially wrong and I have every right to refute it. Never said you were afraid, or afraid of anyone. I don't know who you are. Just remember you did the judging first. I just simply retorted to your comments. Please note there's a difference between lecturing and voicing an opinion. Don't confuse the two. I have no desire to 'convert' anyone to my way of thinking. After all it is a forum here. I won't be intimidated by you simply because I don't have an agenda to sell. I don't sell dinar, I am not classified as a guru and don't want to be. I have however been through two country currency changes and am aware of the process from a retail stand point of view and also from an educational background. So perhaps my experience might be of benefit to someone, and if not, I am not going to cry. Oh by the way, calling me 'sweetheart' was not only condescending but judgmental, kettle pot black etc. PS Just for the record not female.

shhhhh you are too, look behind you!

Thanks DinarThug for the explanation. The unfounded allegation of Blackrobes and myself being in cahoots was a red flag. It was the cause and effect fallacy in action. The cause - Blackrobes and I were new with 12 posts each therefore the effect - we were in cahoots. lol No need for proof just allegations. Sad really.

Tried your suggestion PrehistoricMan and all I got was Nordstrum and Dillards selling black robes.

Carrello, For the absolute record, I have no idea who Blackrobes is, other than the fact he/she claims to live in the southern hemisphere and I live in the northern hemisphere. I can assure we are not neighbors. The fact we have 12 posts each has is nothing more than coincidental and it apparently feeds your paranoia. You are the perfect example of why anyone with a bit of knowledge of the subject of international finance are reluctant to engage with forum trolls. While you are annoyed that someone with some information doesn't want to share that information with you, upsets you. Perhaps the rumor section is better suited for your reading material. Like everyone else on here (12 posts or not) are entitled to their opinion, which obviously includes you as we can see from your post. If you don't like what you read, then move on. For others who would like a more in-depth, thoughtful, analytical, and non-hyperbolic read, they are so welcome to read my comment. I am not here to convince anyone of my thoughts, that's up them. One thing is for sure, you have a bunch of sour grapes, and you are throwing them at the wrong person. As for the gurus I let them have their voice without my criticism, in the end, it's who you wish to listen to that will educate you or lead you where they want to.

Forgot to mention, that the tone of the article is negative towards an unregulated Float which market forces determine the dinar's trading rate.

Yes, it was Walkingstick via Frank that suggest the narrow band of trading, no mention if any Iraqi official, in a pertinent position, offered the same strategy. While Saleh discusses the simplistic approach of a currency's value being dependent on the Supply and Demand in reality, the factors behind the valuation of a country's currency is far more complex than supply and demand, but rather the country's current accounts, the ability to pay its debts, its assets, its political stability, its reserves, both fx currency held by the CBI, and in the case of Iraq, its oil reserves indicative of future revenue, all should contribute to an evaluation of the dinar's forex rate. Iraq fear the Dutch effect which happened to the Netherlands when it discovered oil. The value of its currency rose and the price of goods rose within the country, making its exports more expensive and thus less demand. Inflation and slowing of exports would be disastrous for Iraq. A float of the dinar with no safety measures is in essence a gamble. Fixed to a single currency or to a basket of currencies in which each chosen currency had a percentage ratio, or a managed float, all seem doable strategies for Iraq. In my opinion Iraq will have a more Goldilocks approach neither too high or too low.

How interesting that before the budget was pass a British envoy travelled to Iraq to speak to the PM requesting that Iraq get its budget past ASAP. Obviously the UK government has some special interest in the affairs of Iraq.

In my limited experience in forex currency trading, I learned one main principle and that was, you need to know when to enter a trade and more importantly know when to exit a trade and nab the gain. The downfall to that principle are emotional decisions. Don't trade on emotion, trade with critical a financial decision. There are numerous analytical tools to help you make a rational exit. One of my favorites is the Fibonacci tool. If anyone isn't familiar with it, it would be to your benefit to read up on it in the context of forex trading. So I can hear you say - when am you going to exit. For me my exit of holding dinar is when and IF it comes on the Forex at the current rate and the financial tools demonstrate no interest in the dinar by the forex traders worldwide which would be evident in the forex graphs. That's my out. However, I don't think Iraq would miss the opportunity to have their country's assets and debt reevaluated as well as its political stability to determine a more accurate value for its currency when it introduces it to the world market. I too wish I could PM you Blackrobes as I have some interesting facts that I have gleaned over the years that the main gurus missed or forgotten but again it's sensitive in nature. In your comment "Further, just because Kuwait's currency is highly valued there is no reason to arbitrarily assume that Iraq will ever arrive at a similar currency value compared to the American dollar." Is the perfect example of the fallacy of cause and effect. The cause - because Kuwait's currency is high, the effect - Iraq will be high too. The argument is illogical (sounds like and Mr. Spock comment). However, that doesn't mean Iraq's dinar can't reach a similar value. In reference to your last paragraph, it would be a gem to have someone to get an accurate insight into the future of Iraq but I think in reality it's difficult as all the shenanigans of corruption have muddied the financial waters and so reduces the accuracy, nevertheless we live in hope. Anyways, good chatting with you.

The over use of highlighting drives me up the wall and down again. I don't think they ever heard of 'less is more'

Hi Blackrobes, Very nice to make your acquaintance. I cannot find fault with what you have said above. I once travelled to the Philippines on business on my return to the US, I had a few Pilipino notes left over, I approached my local banks to exchange and they refused to exchange it. What I discovered it is the bank's discretion whether it chooses to exchange any particular currency or not. And more so with exotic currencies. Why? Simply exotic currencies are considered high risk due to the possibility of large swings in their exchange rate. The is called foreign exchange exposure, a risk any bank will try to minimize as do any business doing foreign trade. And understandably so. In one of Frank's yoube tubbies, Frank was quoting an article that was an editorial to the CBI. The headline of the article stated TO THE CBI.... Yet Frank during his presentation kept saying that the CBI was saying XYZ which was basically the content of the article. But Frank was categorically wrong as the it was the author of the article publicly suggesting what the CBI should do. When confronted with the contradiction by me, he couldn't apologize for his error, nor did he appreciate the correct comprehension of the article. Instead he chose to call me names as in that I was blind, as in the biblical reference of There are none so blind and those who can not see and then called my ignorant and uneducated. LOL This is how narcists behave when threatened is to discredit the person in question. He quickly moved on realizing his inability to comprehend the article. I drew the conclusion, while have had resources at his finger tips, he comprehension isn't quite there, perhaps due to a lack of preparation. Nevertheless to each his own and lessons are learned Now what Frank didn't know was ... I have a bachelors' degree in International Finance, I have studied accounting and the role of banks, central banks, and currency boards. I know the use of currency auctions versus a market quoted currency as you see on the forex. For homework I would have to account for a company's foreign exchange exposure in its business on certain critical days during a year or month. I am somewhat better educated in terms of international finance than Frank, but like most people I still have room to learn. So basically Frank was wrong about me, namely because he doesn't know me. Now here's what I see that causes invalid arguments in logic - The fallacy of Composition - What's true for the one is true for the all. The fallacy of Division - What's true for the all is true for the one. The fallacy of Cause and Effect - when someone makes an argument but the argument is based on false or illogical reasoning. Confusing Cause and Effect is a fallacy that occurs when someone claims that because two things typically occur together that one causes the other. I see these illogical arguments permeate through out deadland and it behooves anyone who doesn't understand these to research and watch out for them. The last thing that I see is that Hyperbole is used to exaggerate overly a not so important point. Advertisements do this to create the need to buy and thus a sale. In the end, it's buyer beware to whom you listen. As for the banks not commenting on the dinar's potential. It is not their place to comment and so I am not surprised that they wouldn't put themselves in a precarious position subject to legal recourse by authorities for inside indiscretions. As to the veracity of the banking stories they do have a common element that the bank employees never says, the dinar is going to revalue on x date at y amount. I have no doubt that perhaps some very high executives might be aware of the possibility of a dinar change in value, in order to accommodate the change. But how much of a notice, I do not know. I didn't mean to rant on...but wanted to share my understanding that's all

Thanks. While new to the board, old to the dinar wait. lol

Walkingstick is allegedly working in Baghdad with the CBI and allegedly happens to be in meetings or knows the content of the meetings. Here's an excerpt of what he is reportedly saying via Frank and my comments are afterwards. 4-14-2021 Newshound/Intel Guru Walkingstick [via Guru Frank26] Phase three: They (the Fab 4/CBI) will keep a very tight band, a super tight band on this international float. Because they don't want it to move anymore than plus or minus 3%. Then it will reach a cap...supply and demand will put the dinar on a different international level. You and I were talking about how the dinar would be introduced on the market, fixed, float, managed float. Well what Walkingstick is describing above is a 'managed float'. When he references a 'tight band' is in financial terms are the 'ceiling and floor'. What it means is the dinar will only be allowed to move only freely 3% of its value between the ceiling and floor limits. This is a cautious way to introduce a new world accepted currency. The ceiling will protect the currency from any abnormal demand to buy the dinar, (This means there isn't much room for a percentage increase in the dinar's value once introduced at a certain rate. Depending on the percentage increase in value times the number of dinar you are holding may be substantial nevertheless.) And then the inverse is true when if there was a run to dump the dinar the floor limit would protect the dinar's value for us. So, to me, that means no made rush to cash out as I am speaking in hours and days. Now these limits under the guidelines of the IMF and Iraq's volition, may be adjusted after 90 days, but not within the 90 days. I am actually very please to hear of this development if true, it gives me more leeway to find a suitable investment vehicle for the gain received.

Hold your horses! Wait just one minute! "The Deputy Governor of the Central Bank, Ihssan Shamran, told the National News Center that “the exchange rate of the dollar during the coming years will not change,” indicating that “the central bank did not resort to a gradual change in the exchange rate because it causes a catastrophic collapse in the exchange rate and confuses the market.” How wrong can that blue highlighted statement be? Any gradual change in any exchange rate for any currency doesn't cause a catastrophic collapse and it doesn't confuse the market whatsoever. It happens everyday every second every minute on the Forex. What does cause an upset in the market is a sudden and huge movement in the exchange rate, (When the Minister of Finance and the CBI in cahoots adjusted the rate and then blamed the IMF for the suggestion. If these two numpties didn't know what was going to happen, they should be fired right now). The evidence shows that it's the sudden large move like the 22% approx adjustment to the dinar that has upset the market and confused the people of Iraq to cause them to protest in the street. It certainly wasn't a gradual change that caused these issues, therefore, this commentary by this guy at the CBI is total rubbish and shouldn't be listen too. And because of that, I don't hold credence in what he says about the long term rate of the dinar either. Sadly the CBI fx currency auctions have restarted.

Oh gosh he we go again, if Baghdad fails to send the expected dues to Kurdistan, Kurdistan will hold up any progress on the hydrocarbon law in retaliation. I hope that Baghdad has the good sense to comply with its commitment to Kurdistan ASAP and get things moving. When I see reports such as this, I can't help but believe that's it is public shaming at its best to achieve the compliance needed.

Well this is a very interesting post: " Posted 5 hours ago The currency auction stops for a week as a result of banks ’fear of changing the dollar’s price First off, it's the CBI who decides whether the auctions are a go or not, not the banks. However, it the banks are so fearful, the auctions should still take place showing a zero demand for the dollar. There's always a demand for the dollar esp. in remittance - the purchase of imports into Iraq payable by an international currency the USD. The customer who would demand the USD would give the bank dinar for the currency exchange, the bank in turn would purchase on behalf of the customer the USD from the CBI at the currency auction. The bank itself doesn't take a risk so then why be fearful. Just a very odd and unbelievable headline in my opinion. One thing is sure, the currency auctions can't be functional with a Forex traded dinar.

Iraqi Parliament Approves Budget of $89 Billion for 2021 Iraq’s parliament has approved the state budget for 2021, after weeks of wrangling amid a severe economic and financial crisis spurred by low oil prices and the pandemic. BAGHDAD (AP) — IRAQ’S parliament on Wednesday approved the state budget for 2021, after weeks of wrangling amid a severe economic and financial crisis spurred by low oil prices and the pandemic. The new budget was approved at a late night session at 129 trillion Iraqi dinars ($89 billion) and a budget deficit estimated at 28.7 trillion trillion Iraqi dinars ($19.79 billion). The 2021 budget set an oil price of $45 a barrel with expected oil exports of 3.25 million barrels per day. Oil-rich Iraq is going through an acute economic and financial crisis largely due to low crude prices. In December, Iraq's Central Bank devalued the Iraqi dinar by over 20% in response to a severe liquidity crisis, a measure that sparked public outrage as the government struggled to cover its expenses. It was the first reduction in exchange rates that the Iraqi government has made in decades. Since an oil price crash last year, Iraq has been grappling with an unprecedented liquidity crisis. The crude-exporting country has had to borrow from the bank’s dollar reserves to pay the nearly $5 billion in monthly fees for public salaries and pensions. Oil revenues, which account for 90% of the budget, have brought in an average of $3.5 billion. Efforts to introduce reforms have been met with opposition and to date, the government has been borrowing internally to foot state bills. The 2020 budget was not passed due to political deadlock. The parliament on Wednesday also voted to dissolve itself on October 7, three days before Iraq is to hold general elections. Copyright

In 2019 when I did have access to my account I was able to calculate the interest earned by dividing the interest earned for that 6 month period by the previous balance. For the first half of the year, they credited the account with 0.012 or 1.2% interest. For the second half of the year the bank applied 0.013 or 1.3%.