CBI RAISES PRICE OF DINAR AGAINST THE DOLLAR

[RodandStaff]

Gurus shot to h e ll.

What this article is telling us most is that the CBI doesn't need approval

or special laws passed by anyone to change the rate of the dinar. They are saying

we can do so at our discretion. Now they may want to wait for certain things to get done

but they most certainly don't have to.

That's the impression I got from Adam's chat yesterday. And I like it, I love it, I want more of it!!!

So all that is left to say is, "come on boyz... git-r-dun"

Thanks for the post Carrello!

GO RV Already Baby!!!

[jupitergirl]

Sonny1's mid east guys were right! Thanks Sonny1 please come back soon!

[keepmwlknfny]

So, I wouldn't say it is the selling of the USD that drove the rate up a little bit as it was the acquiring of the 000s that helped.

I was saying it was the buying of USD that could have driven the rate up because of the present situation in Iran and Syria and the sudden influx of high auction numbers...the CBI was talking about this issue and that it could hurt their reserves so it sounds like they bought up alot of USD to handle this situation.

But like I said, if this is a continued trend and the rate keeps lowering from 1166 then it could be something else going on....

[blaineage]

I'm having a hard time getting my pea brain around something, and if this was asked or answered somewhere else...mea culpa. The CBI has obviously engaged in a shift in policy from a fixed rate to a float of sorts. My question is this...Doesn't this make the idea of a straight lop even less likely? I am invested in divar and don't even like the word lop when used for non-currency subjects. I am also not trying to stir a hornets nest. The reason I ask is, wouldn't the lop muddy the water so to speak beyond belief for the Iraqi citizen, and why float it in the first place. If it was to be a lop, they would lop first. Again, not trying to pick a scab, but doesn't this put the lop idea to bed once and for all. I would like help on this...especially keep. Thx.

[lotsofdinar]

I don't see any shift in policy.

[blaineage]

I don't see any shift in policy.

Well for starters, it is the first time in 3 years the CBI has unpegged from 1170 to 1 on the site. Secondly the quote"As announced in favor of the (January 6, 2012) for high reserves of the Iraqi Central Bank foreign currency to the $ 60 billion for the first time in the history of Iraq, while stressing its ability to curb inflation if it came to ranking places, considered that current levels do not raise concern. And the foundations of the Iraqi Central Bank as an independent institution under the law issued on the sixth of March of 2004, as an independent body is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and management of foreign reserves and the issuance of currency management, as well as to regulate the banking sector to promote the system competitive financial and independent" this says to me if I am reading it correctly they are actually taking action rightly or wrongly as an independant body.

Read more:

[lotsofdinar]

The reserves have increased over the last year, so the exchange rate changed. The CBI decided to recognize that change. The CBI has been an independent body since they were created.

[brbrlocke]

Thanks Carrello

[blaineage]

The reserves have increased over the last year, so the exchange rate changed. The CBI decided to recognize that change. The CBI has been an independent body since they were created.

Maybe this is where I'm falling down on this, but the original story quoted Saleh as saying the the purchasing power was not commensurate with the dollar so they adjusted, not that the reserves increased. Purchasing power is much more than the local Iraq reserves, it's goods from around the world...I am wrong? As far as they have been independent ...you are of course correct, however the cbi site relative to exchange to dollar has not moved, and now it has. This appears to be an attempt to make some calculation on inflationary shifts in the marketplace relative to the dinar and not just a nominal shift in the pegged rate.

[Cosmo]

Carrello, thanks for the 'in black and white" posting, all my +1's if I could give 'em to ya!!!

[keepmwlknfny]

I'm having a hard time getting my pea brain around something, and if this was asked or answered somewhere else...mea culpa. The CBI has obviously engaged in a shift in policy from a fixed rate to a float of sorts. My question is this...Doesn't this make the idea of a straight lop even less likely? I am invested in divar and don't even like the word lop when used for non-currency subjects. I am also not trying to stir a hornets nest. The reason I ask is, wouldn't the lop muddy the water so to speak beyond belief for the Iraqi citizen, and why float it in the first place. If it was to be a lop, they would lop first. Again, not trying to pick a scab, but doesn't this put the lop idea to bed once and for all. I would like help on this...especially keep. Thx.

To be honest, I dont think we know enough about this situation yet.....they could be doing a number of things. Although I would certainly lean towards your statement of being less likely of a situation to lop if they were to switch policies because to me that would sound like they surely have something lined up to close the gap with the USD through other means! So I like whats going on right now, but it maybe too early to tell!

[Stryker365]

I don't see any shift in policy.

Keep looking.....you may want to look on PTR.....

[Darin]

To be honest, I dont think we know enough about this situation yet.....they could be doing a number of things. Although I would certainly lean towards your statement of being less likely of a situation to lop if they were to switch policies because to me that would sound like they surely have something lined up to close the gap with the USD through other means! So I like whats going on right now, but it maybe too early to tell!

O - M - G! Piggs must be flying or something... KeepM posted something positive with an optimistic outlook.

Ha!

I knew you had some glass 1/2 full posts in you...

While the change was very minor, I think I would have been extremely concerned if they brought the rate down to 1000:1.

We all know what that would mean for their next move, right?

They're climbing & gaining value... Not by an amount that any of us can break out the ticket tape quite yet.

It is just nice to know that the value has gone up since we all have held it.. We're still behind in making profits, but, it is promising to know the current status was valued X and now is X + 4 pips.

[keepmwlknfny]

O - M - G! Piggs must be flying or something... KeepM posted something positive with an optimistic outlook.

Ha!

While the change was very minor, I think I would have been extremely concerned if they brought the rate down to 1000:1.

We all know what that would mean for their next move, right?

Of course....

Its just nice to see something that could be legit, and positive for a change....

Edited January 19, 2012 by keepmwlknfny

[Carrello]

Carrello, thanks for the 'in black and white" posting, all my +1's if I could give 'em to ya!!!

How about you buy a drink for me in Las Vegas instead.......and real SOON!

[lotsofdinar]

The CBI has three options for changing the exchange rate with a pegged currency. Decrease the Dinar, increase the USD or do like Saddam and simply declare the Dinar to be worth an arbitrary amount (which didn't work out well for him, if I recall). Attempting to RV a pegged currency would, in fact, require Saddam's approach. The Dinar was a pegged currency when he pulled his rabbit out of the hat.

Edited January 19, 2012 by lotsofdinar

[Carrello]

Keep looking.....you may want to look on PTR.....

Please.........

[zigmeister]

The CBI has three options for changing the exchange rate with a pegged currency. Decrease the Dinar, increase the USD or do like Saddam and simply declare the Dinar to be worth an arbitrary amount (which didn't work out well for him, if I recall). Attempting to RV a pegged currency would, in fact, require Saddam's approach. The Dinar was a pegged currency when he pulled his rabbit out of the hat.

Totally different scenario. Sadaam didn't have many friends.

Its just nice to see something that could be legit, and positive for a change....

Indeed, I hear ya on that one.

[Mazzz27]

No, its def not trading as usual lol....but you remember the article explaining how they needed to place more restrictions on who can participate in these auctions because it seems that with the sanctions being placed on Iran, its gonna be harder getting money into the country and those who had ties with those countries, were getting into these auctions and were causing the major rise in USD sales and they were worried that if this kept up, that it could affect the reserves. So they could very well be anticipating continued larger auctions and dont want to run dry....

We just need to keep an eye on it and see what happens within the next week or so....if they keep buyin up USD and driving the exchange rate lower then 1166 then this could work out very well for us

is there any site i can watch for updates?

[MrFnHappy]

is there any site i can watch for updates?

cbi.iq

[zigmeister]

is there any site i can watch for updates?

Basically keep your eye on the news. Which here we have many who post articles from Iraq and other news media and give opinions on such articles. However with Iraq there is a translation issue, often times we find babysitters, watermelons, bugs bunny etc placed strategically in the articles. I don't know if its translations or something to amuse us while we figure out what the heck they are talking about. On that note while the news can be informative and entertaining, it can be full of smoke. Don't worry we will keep you abreast, but know this it is getting interesting in my opinion.

[Sanssouci]

Its just nice to see something that could be legit, and positive for a change....

Now, if you could just stop being such a sucker for those "delete the zeros" articles.

[Nakida]

Can somebody tell me what that means? When they say that the CBI raised the price of dinar against the Dollar.........is that good or bad for those that have invested? I am so new to all of this

[zigmeister]

Can somebody tell me what that means? When they say that the CBI raised the price of dinar against the Dollar.........is that good or bad for those that have invested? I am so new to all of this

The dinar rises, yes that is good. Its been such a limp **** for the longest time.

[Carrello]

The dinar rises, yes that is good. Its been such a limp **** for the longest time.

Now they are saying the rate changed because the auctions have been so high lately. But was the rate of 1170 set by CBI and Iraq, or the IMF? If it was the CBI, never mind. If it was the IMF, you see where I am going with this.