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CNN. Broadcasting In Low Def From A Wobbly Bar Stool At The Thirsty Camel Lounge ! Finance parliamentary: convert 5 thousand dollars per passenger raises the value of the dinar BAGHDAD / JD / .. Parliamentary Finance Committee confirmed that the conversion of $ 5,000 per passenger helps raise the value of the Iraqi dinar against the dollar, to be the advocate of the dollar before the government banks instead of exchange in illegal ways. A member of the Finance Committee MP Najiba Najib told / JD / today: that the transfer of U.S. $ 5,000 per passenger and the official exchange rate by the Rafidain Bank in Baghdad airport will help raise the value of the dinar against the dollar. And called Najeebeh to that does not limit the dollar third-specific and be in the state banks instead of exchange in illegal ways. The Finance Minister Ali Shukri agency has instructed the Rafidain Bank in Baghdad airport transfer of $ 5 thousand dollars per passenger and the official exchange rate. / End / Mona Fatlawi / LINK Enorrste: The final paragraph explains this clearly. The CBI has authorized any foreigner to exchange up to $5000 for dinars at the official rate. This means that any foreigners will have dinars to spend, instead of dollars, in Iraq. ... It will raise the value of the dinar because more people will trade in dinars, rather than dollars. The foreigners are being encouraged to trade their dollars for dinars rather than spending dollars within the country. As the dinar becomes, once again, used for regular commerce due to the foreigner's use of it, the value will rise, because it will increase the number of foreigners using it within the country. Since the number of foreigners using the dinar is small, this is not going to flood the economy with dinars. But it will open the doors to more foreign commerce, which will increase demand for commerce generally within the country. To that extent it will increase demand generally for trade in the country. Since the amount of dinars within the country is limited by the CBI, this is simply a method to increase trade/commerce within the country. The longer term effect will be an increase in the value of the dinar. In short, this is an attempt, short of moving to Article 8 of the IMF charter, to increase use of the dinar WITHOUT opening it up to the world market. I suspect that this is a test on the part of the CBI, to ensure that public acceptance of the dinar will not cause it to fall in value. They are offering this at up to $5000 per foreigner in the hopes that some demand will be created. Demand will raise the value of the dinar, as the article implies. But this test will ensure that there is sufficient demand to guarantee that the value will not fall. After all, if foreigners won't buy the dinar at 1166 to 1, why would they buy it at a higher value. This is a test. Merely a test. Once it succeeds, we will see a release to the world of the currency. Of course, I could be wrong. Enorrste Enorrste I do not see how this can be interpreted as exchanging dinars for dollars. Since the transaction is taking place by "passengers" at the Baghdad Airport, it only makes sense that the exchange is from dollars into dinars. To think otherwise is to bend the simple meaning of the article out of shape, in my opinion. No one goes to Baghdad Airport to exchange dinars for dollars. Quite the opposite. A "passenger" is a foreigner entering the country. He comes in with dollars and is being encouraged to exchange the dollars for dinars at the official rate. Making this an easy transaction "at the airport" tends to eliminate the lower "market rate" that a passenger might get from another location once inside the country. Therefore the effect will be to support the value of the dinar, as the article says. Once again, if the plain sense makes sense we should not look for any other sense. I don't mean to ruffle feathers, but the plain sense is pretty easy to identify here. Enorrste Tlar: I believe this is just an expansion of the policy that is now extended to the banks. Any Iraqi can show his passport and buy $5000 US dollars per day as long as he is buying it with dinar. $5000 US dollars being bought by that bank is at the then going exchange rate. All this article is saying is the that privilege is now being extended to include passengers at the airport. Most likely it is aimed at passengers exiting the country to allow them to exchange back dinars they may have purchased or received in change while in Iraq with the intention of using them in Iraq, but did not. I'm sure it goes both ways. A person entering Iraq can buy dinars for use in country if he desires using USD or an equivalent value in another currency such as Euros but most likely. Most likely the amounts purchased if any will be much less than $5000 worth of dinar. They are just expanding service and making it more convenient to buy and sell the currency, and not get stuck with a non international currency because time to leave and they didn't have time to go to a bank and switch. Fast Eddie I agree with your take on this.
