[Interview with finance minister and spokesperson from the CBI]

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. 

 

[Parliamentary Committee: The dollar will not return to its previous price until after 4 years]

6 hours ago, yota691 said:

The information / Baghdad ..
The Legal Committee in the House of Representatives confirmed, on Saturday, that the issue of the dollar’s exchange rate has been finally settled and there is no intention to return to its previous price until after four years have passed.
A member of the committee, Salim Hamza, said in a statement to / the information / that “the exchange rate of the dollar has been decided definitively and there is no close return to its previous price,” indicating that “the exchange rate of the dollar has been fixed at its current price and has been implemented.”
Hamza added, "We must wait for the next elections in 2025, that is, after four years, so that we can control the exchange rate."
It is worth noting that the rise in the exchange rate of the dollar came in conjunction with the holy month of Ramadan, when markets and food products witnessed a significant increase. Ended / 25 W.

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.

[Saturday Evening Opinions @ 6:25 PM CDT - 5/01/2021]

13 hours ago, Smokey Mtn. Dinar said:

 

If these banks already deal with foreign currency's, then they don't need any "special training" for the IQD.  Basic rate knowledge should be all they need. 🙄 

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.

 

[CBI News 04/27/2021]

16 hours ago, yota691 said:

It might be and it sound goods, but I believe, Iraq needs to find the UN Guy to let the CBI do it thing...that's just my  

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.

[CBI News 04/27/2021]

8 hours ago, southbeach said:

Is this something more,? because JP Morgan, Citigroup, US Treasury, Cisco, and the British Treasury has been there for years already building their banking systems.

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. 

[Economist: The International Monetary Fund suggested to Iraq that the exchange rate should remain at 1130]

On 4/7/2021 at 11:46 AM, Carrello said:

 

Kazemi, if he could, which he cannot, would be dropping zeroes from the IQD. 1.45 in IQD, not USD, and would come out at $.69 in US dollars, and that's not better.

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.

[Comments on Managed Float of the Dinar]

33 minutes ago, Laid Back said:

 

This is an old article but a really good read 01/04/2018
 

https://cbi.iq/static/uploads/up/file-151046653027240.pdf

 

A Simulation do the dinar exchange rate linked to a basket of currencies 

Dr. Admeh Abrehi Ali 

 

Introduction:
The stabilization of the national currency by a basket of currencies, which is among the world's exchange-rate regimes, as well as strict or flexible bilateral linkage. Therefore It is proposed that the dinar be pegged to a basket of major currencies, international reserve currencies, dominant in foreign trade and capital markets, United States Dollars. But Iraq has been used to favoring bilateral ties in its monetary history and to this day. It is no secret to the followers of the argument of bilateral linkage and dollars in particular That the source of foreign currency to Iraq is the dollar first, and secondly the dollar is often in official international reserves and about 65 percent in Third, Iraq's foreign trade depends on the dollar's currency, even with neighboring and Asian countries, and the fourth most countries depend on the dollar to intervene in the market Exchange is called the intervention currency, and in Iraq also operates the window of the central bank in dollars and so we call the currency of the window.

 

However, it is necessary to interact with the currency basket proposal and to discover patterns of exchange rate movement under this system. For those interested and decision-makers to consider the performance of this system and how it differs from the bilateral link.

 

The exchange rate of the dinar linked to a basket of currencies of varying weights:

In this note, a review of the exchange rate of the Euro, Pound Sterling, Yen and Swiss currency against the Dollar since the beginning of 1999. Then we assumed The Iraqi dinar was pegged to a basket of currencies according to three alternatives to weights between the first of January 1999, the beginning of the euro, and the beginning of the 10th of 2017.

 

The weights are:

First: 65% of the dollar; 20% of the euro; and the rest of the currencies 5% each.
Second: 60% for the dollar; 20% for the euro; 10% for the sterling; and 5% for the Swiss and Japanese.
Third: 50% to the dollar; 25% to the euro; 10% to the pound; 5.7% to the Swiss and Japanese.

The exchange rate of the dinar was then calculated according to the linkage of these currencies. For simulations we assumed starting from the beginning of 2012, and points could be selected Start again and recalculate but this does not affect the pattern of movement up and down. It is important to state the results of the currency basket commitment and its weights in the exchange rate calculation, And within a period of time sufficient for the occurrence of cyclical changes and fluctuations in the relationship between the major currencies in the world. At the starting point on the first day of the first month For the year the dollar was 1200 dinars, ie at the moment of transition from the binary system to the basket. The exchange rates of other currencies change in dinars according to their exchange rates In dollars. The result is shown in the table at the end of this note, which shows how much the exchange rate will be in accordance with the currency basket and its stated weights. Below is pure experience with the assumption that the exchange rate of another primary is 1700 dinars per dollar

 

The proposal to adopt a currency basket instead of a bilateral link means that the exchange rate of the dollar will change in dinars according to the exchange rate of the basket currencies against the dollar. How many will be Change ranges, this is what you find in the table. When pricing the euro or the pound in dinars it depends on the exchange rates between those currencies and dollars, for example:

Dollars per euro are multiplied by dinars per dollar and so on. So that the dealer who turned the dinar into euros and then to the dollar recovers the amount of the dinar He used it to buy the euro when converting dollars into dinars at the same market moment. Note that the euro exchange rate with the dollar is cyclical, and generally the trend of the exchange rate of all currencies for reasons related to Productivity and therefore export prices and balance of payments accordingly. Therefore, adoption of the basket does not guarantee a specific direction for the exchange rate of the dollar, or any Other currency, in dinars. And when the basket is adopted, it does not require changing the exchange rate daily, but enough per week or monthly.  These accounts and data presentations for clarification, and knowledge of the quantitative scope of the issue under discussion. When you switch to a basket, you need to agree on currencies Weights and why. The weights assumed in this note are close to the first alternative to the components of Iraq's international reserves. Relative components can be considered For foreign trade or others to propose weights.

Table (1)
Summary of exchange rate simulation results (JDs) when linked to a currency basket
From the assumed time horizon until October 2017

 

Table (1) Summary of exchange rate simulation results (JDs) when linking a basket of currencies from the assumed start date until October 2017

 

Figure 1: Exchange rate movement between January 2005 and October 2017: Simulating the peg to the basket of currencies

 

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

[Comments on Managed Float of the Dinar]

16 minutes ago, Carrello said:

 

I hope your know-all attitude is beneficial for you, but I would get to know some of the personalities here before judging and advising members. I don't know of anyone that would say I am paranoid or afraid or anyone.

 

Many of us have love-hate relationships but we have been here a long time with a common goal. Some are good researchers and always share when they discover useful information. Others have degrees and/or experience in business and finance, legal, government, military ops and interpret and guide members on BIS, IMF, WB, WTO etc. comments and guidelines. We have a myriad of members dedicated to bringing information and opinions to everyone. We have many teachers but lecturing is not our preferred mode of communication.

 

If you join the conversation it may be beneficial to you, and who knows, you might learn something. I know with my advanced degree, extensive international travel and living in other countries, and decades of business experience, I have learned a lot here, and I know when the hip boots need to come out. Most here do.

 

Boo!

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.

 

 

[Comments on Managed Float of the Dinar]

18 hours ago, Carrello said:

Oh, sweetheart, I am not paranoid.

shhhhh you are too, look behind you!

 

[Comments on Managed Float of the Dinar]

6 minutes ago, DinarThug said:

 

 

I Believe That Ms Carrello Was Just Goofin’ On Mnt Goat - But Thx (Seriously) For Chiming In With The Helpful Response !  

 

 

I Can See Where There Might’ve Been Some Confusion With The DV Member ‘BlackRobes’ Being Mentioned In The First Paragraph Of Ms Carrello’s (Edited) Post Above - And Then The Pumper ‘Mnt Goat’ Being Discussed In the 2nd Part !  

 

PH-Man Was Responding Regarding The Site For ‘Mnt Goat’ - And Not The (DV Member) ‘Black Robes’ That U Searched For !  
 

Hence Why U Received The Department Stores Selling ‘Black Robes’ In Ur Search Response ...

 

Although Hopefully U Might’ve Found A Good Sale ...

 

   

 

But Thx For Starting This Thread Eosirl !  

 

Ya, I Can See Where U Guys Might’ve Gotten On A Different Conversation Track - And By Coincidence U Found That Additional Site Update Information !  
 

 

Mnt Goat First Started Pumping On The Convicted Felon TNT Tony’s Site About 8 Years Ago And Has Bounced Around A Few Times Since Then !  

 

 

So ‘Her’ Posts Will Probably Start Surfacing Again From Somewhere - Some Of The Pumpers Used To Just Send There Material Directly To Dinar Recraps To Have It Posted Directly There ...

 

     

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. 

[Comments on Managed Float of the Dinar]

3 hours ago, PrehistoricMan said:

Go to google and type her name in.  She has her own site now.  

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

[Comments on Managed Float of the Dinar]

4 hours ago, Carrello said:

"I wish I could PM you as I have sensitive, personal information of which some parts I could share with you but as it relates to my circumstances I am not prepared to publicly post it."

 

Blackrobes, per your quote above, why would you want to share "sensitive, personal information" with Eosirl, who you just came into contact with here, but not the rest of us? At this point we are all strangers to you. Perhaps you two have a kismet, synchronistic type relationship since you both are new here, each have 12 posts, and seem to have similar objectives. Wow! Not to say you should not be careful even in a synchronistic relationship because the charlatans and guru wannabes are always out there in Dinar World. Nobody wants to be a sucker.

 

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.

 

[Comments on Managed Float of the Dinar]

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

 

[Comments on Managed Float of the Dinar]

52 minutes ago, Laid Back said:

@eosirlThanks for your post.

 

I believe a managed float is possible, as you said, this is a cautious way to introduce a new world accepted currency.

 

It will give them time to diversify and develop the economy.

 

This was posted today.

 

2021-04-19 06:28

Shafaq News / The appearance of Muhammad Salih, Advisor to the Prime Minister for Financial and Economic Affairs, confirmed on Monday that it is not permissible to float the currency in Iraq, indicating that this leads to the collapse of the market.

Saleh said in an interview with Shafaq News; It is "not permissible to float the currency in Iraq because the market will collapse in this case," indicating that "the entry and exit of hard currency does not enter the market, which is only an exit for it, but the government is the one that brings this hard currency."

 

Saleh added, "If the government withdraws its hand, the supply will stop and the demand increases, and thus the market will collapse," stressing that "the float takes place in economies in which supply and demand come from the market and that the state enters to buy and sell to create a balance in the price with its reserves."

He pointed out that "the problem in Iraq is that the market is demanding and that the state is offering, and in the event that the Central Bank does not sell the dollar, it means that all the supply has stopped and there is no other offer, and if there is another offer, it is a little offer that is not enough to meet the demand and therefore the prices will rise." Because demand will be more than supply. "

He stressed that "the state is the bidder in Iraq, and therefore if the state tends to float, then this means there is no supply, and thus prices collapse."

Floating currency is completely liberalizing the exchange rate, so the government or the central bank does not interfere in determining it directly, but rather it is secreted automatically in the currency market through the supply and demand mechanism that allows setting the national currency exchange rate against foreign currencies.

It is noteworthy that some officials talk from time to time on the need to float and liberalize the currency to maintain hard currency reserves at the Central Bank.

 

As you can see in the article the PM financial advisor didn’t mention a managed float. He’s referring to a full float.

 

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.

[An official reveals the advantages of removing Iraq from the list of high-risk countries with money laundering]

15 hours ago, yota691 said:

The Central Bank announces the exit of Iraq from the British classification of high risk countries

 2021/04/18

 

 85

 

 

Baghdad / Al-Mawred News
The Central Bank of Iraq announced today, Sunday, that Iraq has left the British classification of high risk countries. 

A bank statement stated, “In the framework of the efforts of the Central Bank of Iraq and through the Office of Combating Money Laundering and Terrorism Financing in developing the business environment within the international compliance standards for combating money laundering and financing of terrorism, the British Treasury in the United Kingdom Government Department has not included the name of the Republic of Iraq from among the lists High-risk countries according to Resolution No. 392 of 2021. " 

He added that "the United Kingdom adopted the recommendations of the Financial Action Task Force ( FATF) in classifying countries with high risks in terms of applying anti-money laundering and terrorist financing standards, after their exit from the European Union countries, and promised Iraq is committed to keeping up with and implementing international recommendations."  

He continued, "The fact that Iraq is not included in the list of high-risk countries is positively reflected in facilitating business and entering companies between the two countries, as well as supporting financial operations between the Iraqi banking sector and the United Kingdom."

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.  

[Comments on Managed Float of the Dinar]

15 hours ago, blackrobes said:

eosirl,

 

Thank you for your balanced, dare I say nuanced response to my posting above.

 

I wish I could PM you as I have sensitive, personal information of which some parts I could share with you but as it relates to my circumstances I am not prepared to publicly post it. However in reference to your second last paragraph in which you state that bank employees do not (or perhaps are not allowed to), comment when a member of the public presents a foreign currency with a view to selling it; a few years ago I established a casual, business relationship with a trader at one prominent bank's currency trading desk. We stay in touch occasionally and he has always been up front with me.  In short, I believe he is genuinely interested in negotiating with me if and when the Dinar becomes internationally tradable. I acknowledge that this fits the mould of a 'bank story' so anyone reading these comments is free to either believe or disbelieve me. (insert silly smiling emoticon)

 

Secondly, a couple of years ago I used to volunteer at a major private hospital in my home city and shuttle patients and visitors around the campus via. a golf buggy. On one occasion, my sole passenger and I began a friendly banter and in it he disclosed that he was senior figure in off-shore and international banking. I took my chance and asked for his views on the Iraqi Dinar. He seemed naturally interested and in our short discourse said 'hang on to your holding as it will see you right one day soon.' I interpreted his remarks as a personal affirmation that I was on the right course in buying and holding Dinars. (see my disclaimer above re. believability)

 

The above said I do go through ups and downs occasionally and question whether Iraq will ever get itself sorted out. The country is riven with corruption at all levels and divided by tribal and religious schisms. 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.

 

In conclusion, I would dearly love to subscribe to a knowledgeable expert who from time to time could pierce the veil of Iraqi politics and society to offer insight on the countries progress particularly as it relates to real growth in value of its currency.

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.

 

 

[Comments on Managed Float of the Dinar]

12 hours ago, PrehistoricMan said:

See folks when an article is posted it is usually always in black lettering.  When they copy and paste it from franks site, his workers do the extra work of putting the coloring in to highlight stuff.  So any article that appears here is from his site that is in color.  No one here does the coloring.  It has already been done.  

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

[Comments on Managed Float of the Dinar]

20 hours ago, blackrobes said:

Hi eosirl,

A couple of facts that may interest you. Talkingprick (tp) now lives in the US where he has been for several years. He allegedly has a form of advanced cancer and Frank appeals to his membership at his forum from time to time to support system" rel="">support tp with cash donations to assist with his medical costs.

Frank both fascinates and frustrates me as he is the perfect definition of a narcissist and consequently, lies with such fluidity that you can never be sure when he is telling the truth.

I'll give a couple of quick example to illustrate this. In late 2019, tp claimed through Frank, that all contracts with foreign companies going forward would be secretly denominated in US dollars because these companies would never accept large quantities of Dinars as payment and in any event, the currency was not as yet recognised internationally. This intrigued me so I contacted the manager of a Dinar trading firm in my country (an Iraqi national) and explained what had been claimed by Frank. I finally persuaded this guy to contact a paternal uncle in Iraq who then occupied a middle management position at a prominent Iraqi bank. It was relayed back to me that said uncle completely rejected Frank's claim and stated that no such arrangement existed. I queried with my contact that perhaps his uncle had been sworn to secrecy but I was assured that immediate members in Iraqi families do not lie to each other as it is considered extremely disrespectful. So I was left with the only conclusion that Frank had simply made this claim up.

There are countless other cases where Frank makes what appear to be fanciful statements but just recently he has featured several phone conversations with fellow country men and women who tell elaborate stories of going to X or Y American bank (Wells Fargo is a favorite), where they, after advising they have a cache of Dinars, are then warmly embraced by a senior staff member, given preferential treatment and asked to stay in regular contact.

I live in a modern first world country in the Southern Hemisphere and immediately sought to test these claims in my country. I initially conversed with an employee at the Foreign Currency Trading desk of both HSBC and CitiBank as these are large international banks who also have a presence in the USA. Each employee patiently explained to me that the Dinar is considered an exotic currency, is not tradable outside of Iraq and their banks have no current interest in acquiring my Dinars.

Then I similarly approached personnel at the three largest banks in my country. These banks are considered internationally as mid sized banks and have branches in a number of other countries. The outcome of all my inquiries with these banks was exactly the same as my experience with HSBC and Citibank.

I could go on, but what is the point. Frank is the consummate story teller and I sometimes doubt that even he knows when he is telling the truth.

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

 

 

[Comments on Managed Float of the Dinar]

25 minutes ago, pokerplayer said:

 

 

  Excellent breakdown eosirl. Thanks for taking the time to post.

 

Also I see your new to the site, so welcome aboard !!

 

   pp

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

[Comments on Managed Float of the Dinar]

 

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.

[THE CENTRAL BANK SETTLES THE DOLLAR ORDER FOR THE COMING YEARS]

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.

 

 

 

[Barzani: We are waiting for the federal government to send the region's dues]

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. 

[The currency auction stops for a week as a result of banks ’fear of changing the dollar’s ​​price]

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.

 

 

[Al-Halbousi: Present the budget to a vote soon, and we are proceeding with the legislation of the oil and gas law]

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 

[Interest]

13 hours ago, Steelwire said:

OK .... I'm a bit confused. I thought they had dropped the IQD Savings Intersest to 2.5%. Did they recently raise it back to 5%? Can someone tell me how long its been at the 5%?

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%.