READ!!!...Iraq Dinar...Went from Fixed to Floating Exchange...

[20MillionDinar]

Bottom Line: If trillions of Dinar were removed from circulation it would have a HUGE impact on the value of the IQD, that is extremely obvious... "

It's not obvious to me. Remove trillions of dinar from circulation and you would still have a small, unstable country with only 60 billion USD in reserves and a lot of oil underground, the income from which they plan to use over time to run and build their own country, not to back their currency or make speculators rich.

Supply & Demand:

If Iraq is worth $60 Billion overall and there is 60 Trillion Dinars total M2.

Now let's say 20 Trillion Dinars were completely removed from circulation.

That means 40 Trillion still equals $60 Billion = Each Dinar is now worth more

Again, this is simple Supply & Demand

[Stryker365]

hey dont you mean 364...1/2 ..............credibility is a state of mind ............STROKER .........O i mean STRYKER ,...........I have had enough of all of yalls crap .............so you will now see the new RANDALL

Wow.... about what i expected from a BS like you...have another drank and a line

As you say there BS'er hahahahahahah........go pedal you crap somewhere else

for a guy that has so much money why are you trying to get friends here with all your lies?

I would really like to meet you in person dude and I'd show you how a real Texan handles a person like you.

.

Edited January 19, 2012 by Stryker365

[HopefulTxn]

This is true, but like I said before, when has Iraq ever been a democracy? For that matter, when has any other Middle Eastern country been a democracy? Never...

We are in un-chartered times.

I have yet to see where a type of government dictates the manner in which they value their currency. If you can provide such information it would be appreciated.

But, I think if you do some research, you will find that countries that receive the bulk of their revenue from oil sales do not use a floating currency.

[tigerstripes]

Bottom Line: If trillions of Dinar were removed from circulation it would have a HUGE impact on the value of the IQD, that is extremely obvious... "

It's not obvious to me. Remove trillions of dinar from circulation and you would still have a small, unstable country with only 60 billion USD in reserves and a lot of oil underground, the income from which they plan to use over time to run and build their own country, not to back their currency or make speculators rich.

So you're saying the number of dinars in circulation has no bearing on their value?

[lotsofdinar]

That means 40 Trillion still equals $60 Billion = Each Dinar is now worth more"

No, it means it's worth exactly the same thing as it does now. Which is what all these articles from the CBI is trying to tell folks in Iraq. Sixty trillion, or 60 billion. It's the same pie they are dividing. You can have trillions of little pieces or billions of bigger pieces, but you still have the same amount of value. The country is worth no more just because you proclaim it to be.

Edited January 19, 2012 by lotsofdinar

[Stryker365]

Foreign Currency is exchanged in almost any bank around the entire USA...you pay a small exchange fee (way less than the dinar dealers are charging might I add) but it is money.

There is more to it then saying "its value is controlled purely by what the market determines it is worth." That is only partially true. The true value lies in what the CBI could then do once they decide to let their currency float.

There is excessive amounts of Dinar which is needed at this time to maintain the fixed exchange rate system. This is a major reason for the over inflated money supply.

If the Iraqi Dinar is allowed to float then that would allow them to withdraw and destroy trillions of dinar immediately. This in turn creates greater demand for the IQD currency and drives up value. Also, being an internationally recognized currency using a flexible exchange rate puts the currency on the FOREX market giving the currency more liquidity and trade volume is increased substantially!

It really doesn't get any clearer than this. If they move to a flexible exchange rate system aka "let it float" then there would be tons of benefits. I just listed the main benefits above, it pretty much sums it up.

Terry, your wasting your time with this guy, believe me.

[lotsofdinar]

Regardless of how much or how little dinar existed, why would there be a demand in the currency market for Dinar? Whatcha gonna buy with it? Sand and camels?

Edited January 19, 2012 by lotsofdinar

[MrFnHappy]

What color is the .........movement

Bwahahahahaha

[tigerstripes]

I have yet to see where a type of government dictates the manner in which they value their currency. If you can provide such information it would be appreciated.

But, I think if you do some research, you will find that countries that receive the bulk of their revenue from oil sales do not use a floating currency.

Does a currency have to be floating for it to be traded on the currency market? Honest question.

[20MillionDinar]

Terry, your wasting your time with this guy, believe me.

I just realized that when he didn't understand the analogy that was made in regards to supply and demand.

For a 61 year old he is extremely naive in economics. I don't think currency speculation is his area of expertise...

[MrFnHappy]

You make a good point 20 MD.. maybe that is why ever since December the US Treasury Dept has been buying up 1 million dinars a day and still doing it. Im not a trader or have any knowledge in trading but in your opinion wouldnt that be helpful in a counter attack to any entity trying to corner the market? Obviously the US has some plans for the long haul with all they have been and are still doing in Iraq. Such as leaning on who I think is one of the people holding everything up in parliment. I think you know who I'm talking about? It has been said through a few articles that his reign is coming to an end. Either M is going to play ball and be a nice guy allowing for equal power in the govt.. or he is gone. That simple so either way at the National Conference I would hope to see alot of deals worked out like Erbil, HCL, Trade etc.. what are your thoughts? Nate

You mean to tell me the UST is spending $867 a day on dinar?

Got a link?

[randalln]

Wow.... about what i expected from a BS like you...have another drank and a line

As you say there BS'er hahahahahahah........go pedal you crap somewhere else

for a guy that has so much money why are you trying to get friends here with all your lies?

I would really like to meet you in person dude and I'd show you how a real Texan handles a person like you.

DO YOU KNOW WHERE PARKDALL -MALL IS .....Fella YOU CANT FIND A OTHER TEXAN LIKE ME ............And your 3.75 years ......IN ......dose not touch what i have done ........ya im that good still want to spar

.

[Rockstarr]

You mean to tell me the UST is spending $867 a day on dinar?

Got a link?

It wouldn't be surprising. The U.S. govt. currently spends $10 billion a day just to function.

[lotsofdinar]

Does a currency have to be floating for it to be traded on the currency market?"

Yes.

Randalin, you're in Beaumont?

Edited January 19, 2012 by lotsofdinar

[HopefulTxn]

Does a currency have to be floating for it to be traded on the currency market? Honest question.

Basically, if it is not a floating currency it is usually going to be considered an exotic and will trade in much smaller volumes with higher costs from the broker. Not all brokers deal with exotics, and those that do tend to have higher spreads.

It comes down to why deal in the currencies that are pegged to others when you can just as easily, and more cheaply, trade in the ones they are pegged to. From what I have been told it is harder for the brokers to trade in exotics because there is far less demand for them, so their risk goes up. If their risk goes up, your cost goes up.

[tigerstripes]

Basically, if it is not a floating currency it is usually going to be considered an exotic and will trade in much smaller volumes with higher costs from the broker. Not all brokers deal with exotics, and those that do tend to have higher spreads.

It comes down to why deal in the currencies that are pegged to others when you can just as easily, and more cheaply, trade in the ones they are pegged to. From what I have been told it is harder for the brokers to trade in exotics because there is far less demand for them, so their risk goes up. If their risk goes up, your cost goes up.

Thanks. So yes (it is traded as an exotic) but no (because it costs more to trade it).

Would I be right in assuming that it is pretty safe to say that the dinar has not been floated? That would be pretty big news and I'm sure it would have been in the media.

So. Something happened in the last couple of days, because the CBI changed the rate.

The latest info I could find from the IMF said:

II. DEFINITIONS

3. For purposes of monitoring under the program, a program exchange rate will be

used. This program exchange rate will be set at ID 1,170 per U.S. dollar. The program

exchange rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign

assets and liabilities denominated in U.S. dollars, as required. For CBI assets and liabilities

denominated in SDRs and in foreign currencies other than the U.S. dollar, they will be

converted in U.S. dollars at their respective SDR-exchange rates prevailing as of

December 31, 2010, as published on the IMF’s website.

http://www.imf.org/external/np/loi/2011/irq/030311.pdf

So........does the CBI need the permission of the IMF to change the rate? I know that they have changed the rates previously, but I'm just wondering if they are still under a special IMF Program, do they need permission from the IMF to change their buy and sell rates of the currency?

[HopefulTxn]

Thanks. So yes (it is traded as an exotic) but no (because it costs more to trade it).

Would I be right in assuming that it is pretty safe to say that the dinar has not been floated? That would be pretty big news and I'm sure it would have been in the media.

So. Something happened in the last couple of days, because the CBI changed the rate.

So........does the CBI need the permission of the IMF to change the rate? I know that they have changed the rates previously, but I'm just wondering if they are still under a special IMF Program, do they need permission from the IMF to change their buy and sell rates of the currency?

The thing to remember is that Iraq has been working with the 'program' rate since around 2003/04. There have been a number of changes to the value of the dinar since that time. According to the IMF documents they do not dictate what an exchange rate for any country actually is. What they rely on is other countries stating if a country is manipulating the exchange rate of their currency or not against others. If that happens, and the IMF finds it to be the case, then the IMF has its procedures to deal with it, up to the point of expulsion from the IMF. But there has not been anything put forward by anyone that the IMF has ever had the authority to change the value of any members currency value to other currencies of the world. If there is such documentation I have yet to find it, and would truly appreciate anyone that could provide a link to support that assertion.

[wavggg]

http://www.forexpros.com/currencies/usd-iqd

1/2 way down the page, look for the red bull...on left

Ahhhh... look for the "Red Bull"...

Should have been your first clue - now find the Vodka tag and you'll be there...

LOL!

Luv Ya!

GOOOOO RRR VVV!

GG

[tigerstripes]

The thing to remember is that Iraq has been working with the 'program' rate since around 2003/04. There have been a number of changes to the value of the dinar since that time. According to the IMF documents they do not dictate what an exchange rate for any country actually is. What they rely on is other countries stating if a country is manipulating the exchange rate of their currency or not against others. If that happens, and the IMF finds it to be the case, then the IMF has its procedures to deal with it, up to the point of expulsion from the IMF. But there has not been anything put forward by anyone that the IMF has ever had the authority to change the value of any members currency value to other currencies of the world. If there is such documentation I have yet to find it, and would truly appreciate anyone that could provide a link to support that assertion.

Well that's interesting.

I did a bit of reading on the IMF Articles the other day. Iraq is in XIV at the moment and I believe that if you are in XIV you are allowed to manipulate your currency. Once you move into VII (or VIII - can't remember which one), I think it's then that manipulating the currency value is frowned upon.

So, anyway, the IMF isn't actually saying that the dinar is worth 1170USD, but that's the figure they are using to value the assets and liabilities. So it's really just an implied thing from the IMF? But the CBI can change that and say "No, it's really worth this much"?

Maybe there is no answer to this, and maybe I'm just way off the mark, but I have been wondering for a while if they have to inflate there M1 to conform to the program rate. Not saying the currency in circulation figures are wrong, but if their foreign currency reserves keep going up, and everything is being valued at 1170, then their M1 / M2 has to increase as well right?

[wavggg]

It wouldn't be surprising. The U.S. govt. currently spends $10 billion a day just to function.

The USG "prints" $10 Billion a day to spend - They borrow it from your great grandchiildren...

nothin' new...

gg

[HopefulTxn]

Well that's interesting.

I did a bit of reading on the IMF Articles the other day. Iraq is in XIV at the moment and I believe that if you are in XIV you are allowed to manipulate your currency. Once you move into VII (or VIII - can't remember which one), I think it's then that manipulating the currency value is frowned upon.

So, anyway, the IMF isn't actually saying that the dinar is worth 1170USD, but that's the figure they are using to value the assets and liabilities. So it's really just an implied thing from the IMF? But the CBI can change that and say "No, it's really worth this much"?

Maybe there is no answer to this, and maybe I'm just way off the mark, but I have been wondering for a while if they have to inflate there M1 to conform to the program rate. Not saying the currency in circulation figures are wrong, but if their foreign currency reserves keep going up, and everything is being valued at 1170, then their M1 / M2 has to increase as well right?

From everything I have read Article VIII gives a country more leeway in their exchange rate over those in Article XIV. If you look at the two, it states that there are obligatory differences between the rwo. I highly doubt that the countries that are in Article XIV, which are trying to obtain VII status, are able to circumvent the system by manipulating their currency value. If that were the case, there are a number of countries I can think of off the top of my head that would love to do so.

What we are all hoping is that there is a global conspiracy to inflate the stated volumes of dinar in circulation far beyond what they truly are. Based on the modern economics used by every other country that has gone through this scenario, that is really our only hope that this will happen in the manner in which many people claim and hope for. If it's not, then the question would become why Iraq would become the first country in the last 50 years to exit a period of high/hyper inflation and not handle it the same way other countries have, which did not produce huge sums of money for people speculating on that particular currency.

[Rockstarr]

The USG "prints" $10 Billion a day to spend - They borrow it from your great grandchiildren...

nothin' new...

gg

True that.

[tigerstripes]

From everything I have read Article VIII gives a country more leeway in their exchange rate over those in Article XIV. If you look at the two, it states that there are obligatory differences between the rwo. I highly doubt that the countries that are in Article XIV, which are trying to obtain VII status, are able to circumvent the system by manipulating their currency value. If that were the case, there are a number of countries I can think of off the top of my head that would love to do so.

I'll do some more reading!

What we are all hoping is that there is a global conspiracy to inflate the stated volumes of dinar in circulation far beyond what they truly are. Based on the modern economics used by every other country that has gone through this scenario, that is really our only hope that this will happen in the manner in which many people claim and hope for. If it's not, then the question would become why Iraq would become the first country in the last 50 years to exit a period of high/hyper inflation and not handle it the same way other countries have, which did not produce huge sums of money for people speculating on that particular currency.

I'm just looking for a glimmer somewhere!

Thanks for your responses. Much appreciated.

[zul]

I just realized that when he didn't understand the analogy that was made in regards to supply and demand.

For a 61 year old he is extremely naive in economics. I don't think currency speculation is his area of expertise...

I agree...i think this is where he got lost, totally and structurally.

That means 40 Trillion still equals $60 Billion = Each Dinar is now worth more"

No, it means it's worth exactly the same thing as it does now. Which is what all these articles from the CBI is trying to tell folks in Iraq. Sixty trillion, or 60 billion. It's the same pie they are dividing. You can have trillions of little pieces or billions of bigger pieces, but you still have the same amount of value. The country is worth no more just because you proclaim it to be.

[SSI]

I invest for the long haul. I think over the next decade (and it is, of course, speculation) that Iraq will become stable, that its natural resources will benefit the country, and the currency will become more valuable. I'm hoping for a 20 percent to 30 percent return over that period. I believe Iraq to be a good investment, but they have a long way to go. It's extremely interesting watching the struggles within the country and will be interesting watching them resolve their problems and prosper. But it's not as interesting to watch their growth without some skin in the game, which is why I buy currencies.

With all due respect, if you are of the opinion that this investment will take approximately ten years to net a 20 or 30 percent gain, why do you spend so much time debating with others now? Your take is clear to many who opt to "ignore" your thoughts, so why don't you in return ignore those who don't share your opinions on the expectations of this investment? Just curious, thank you.