Could 1.17 be our rate?

[Butifldrm]

The CBI may be positioning it's self to remove the three zero's from the .00085 which muight result in a CBI a sell rate of 1.17 and us an exchange rate of ????. I say .85 to 1.00. What do ya'll say?

I looked for the article in which the CBI performed a study, either in 2009 or 2010, as to the true value of the IQD and if I remember correctly it would be between 1.13 to 1.17.

Now I found this document from the Ministry of Planning, Thanks to Marcus Curtis: Whom I highly repect. His whole article is very enlightening, a must read considering the present moves of the CBI. From his perspective and from the recent dollarization of the Iraqi markets, I would say Iraq will have to come out at a rate slightly higher than a dollar to dedollarize the Iraqi markets again.

As Per Marcus Curtis

Iraq has also been fighting dollarization, which is defined as two or more currencies in circulation in one nation. The two main currencies in Iraq are the dollar and the dinar. Iraq has been trying to remove the US dollar from circulation via its currency auctions. This information is available on the Central Bank of Iraq’s website. So the dinar does compete with the dollar. There was a study done in March of 2010 by the ministry of planning. They concluded that, in order for the dinar to compete in open markets and compete with the dollar, it would need to rise to a rate of $1.13. Here is the document.

Read more: &do=embed#ixzz1kEHPDccp' frameborder='0' data-embedContent>

Now the MOP study!

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

· Export-outputs.

· Outputs marketed locally that substitute imports.

· Imported inputs.

· Inputs produced locally that usually go to exports.

· Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

· The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

· The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

· The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

· The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

· This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en

Anyway, I just thought I would throw this information out there for discussion.

[wineguy]

1.17 works for me... Go RV!

[The Machine]

1.17 works for me... Go RV!

works for me too .... i'll take that rate all day long .....

[vvalley]

I think an exchange rate of 1.13-1.17 seems pretty logical based on all of the info posted Let's just

do this already Goooooo Rvvvvv Alreadddyyyyy

[Sowhat]

That has been around a long time. 2007. Something like that. Cannot remember.

[TonyDownTheShore]

I like it 1.13 or 117 doen't matter, thanks for the articles Butifldrm.

[zigmeister]

This is since 2006, shouldn't the rate be higher today?

[lomeygoat]

A dollar and a bit would be great....just do it already.

[Luigi1]

Could be, 1.17 would put the IQD at 1 to 1 to the Dollar after raising the 3 zeros.

Now vote...damn it...vote.

Edited January 22, 2012 by Luigi1

[powerpager]

Killer Post !!!

[Butifldrm]

This is since 2006, shouldn't the rate be higher today?

I believe it should considering inflation, but when is the last time an MOP study was performed on the actual exchange rate? I have not seen one since. The last study I saw performed was by Earnst and Young and it found the rate to be 1.30. I really don't believe the CBI will come out with the actual exchange rate it will graudually increase over the next three years.

[Carrello]

I believe it should considering inflation, but when is the last time an MOP study was performed on the actual exchange rate? I have not seen one since. The last study I saw performed was by Earnst and Young and it found the rate to be 1.30. I really don't believe the CBI will come out with the actual exchange rate it will graudually increase over the next three years.

Great information, Butifldrm. Thank you.

[keepmwlknfny]

"Foreign exchange has emerged as a scarce resource for developing countries, as these nations face multiple problems of balance of payment. As a result, the demand price is greater than the official price of the foreign exchange. At this point, a cost-benefit analyst needs to decide whether the price of imports and exports is to be valuated at the nominal price or the adjusted price. Most economists believe that pricing should be adjusted upwards for both exports and imports, so that the adjusted price complies with the scarcity value, which is reflected by the demand price of foreign exchange."

<br class="Apple-interchange-newline">

This fall under the category of shadow pricing, which is what these rates in the document are using.....I need to do some more reading on this, but this seems to just be a way to make trading between countries (especially ones in Iraqs position) easier.....

Buuuuuttttt this also makes it sound as if these trading partners are actually at some point or another, taking the dinar as if they really are worth 1.13 and 3 dollars......

[DinarStudent]

[okane]

Cash me out!

[mrref]

The CBI may be positioning it's self to remove the three zero's from the .00085 which muight result in a CBI a sell rate of 1.17 and us an exchange rate of ????. I say .85 to 1.00. What do ya'll say?

I looked for the article in which the CBI performed a study, either in 2009 or 2010, as to the true value of the IQD and if I remember correctly it would be between 1.13 to 1.17.

Now I found this document from the Ministry of Planning, Thanks to Marcus Curtis: Whom I highly repect. His whole article is very enlightening, a must read considering the present moves of the CBI. From his perspective and from the recent dollarization of the Iraqi markets, I would say Iraq will have to come out at a rate slightly higher than a dollar to dedollarize the Iraqi markets again.

As Per Marcus Curtis

Iraq has also been fighting dollarization, which is defined as two or more currencies in circulation in one nation. The two main currencies in Iraq are the dollar and the dinar. Iraq has been trying to remove the US dollar from circulation via its currency auctions. This information is available on the Central Bank of Iraq’s website. So the dinar does compete with the dollar. There was a study done in March of 2010 by the ministry of planning. They concluded that, in order for the dinar to compete in open markets and compete with the dollar, it would need to rise to a rate of $1.13. Here is the document.

Read more: &do=embed#ixzz1kEHPDccp' frameborder='0' data-embedContent>

Now the MOP study!

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

· Export-outputs.

· Outputs marketed locally that substitute imports.

· Imported inputs.

· Inputs produced locally that usually go to exports.

· Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

· The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

· The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

· The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

· The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

· This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en

Anyway, I just thought I would throw this information out there for discussion.

I don't know where you are getting all of the prices from, but the man (Shabibi)said one to one. Isn't that pretty clear to understand?????

[easyrider]

"Foreign exchange has emerged as a scarce resource for developing countries, as these nations face multiple problems of balance of payment. As a result, the demand price is greater than the official price of the foreign exchange. At this point, a cost-benefit analyst needs to decide whether the price of imports and exports is to be valuated at the nominal price or the adjusted price. Most economists believe that pricing should be adjusted upwards for both exports and imports, so that the adjusted price complies with the scarcity value, which is reflected by the demand price of foreign exchange."

<br class="Apple-interchange-newline">

This fall under the category of shadow pricing, which is what these rates in the document are using.....I need to do some more reading on this, but this seems to just be a way to make trading between countries (especially ones in Iraqs position) easier.....

Buuuuuttttt this also makes it sound as if these trading partners are actually at some point or another, taking the dinar as if they really are worth 1.13 and 3 dollars......

Question is what do they know that we don't? hmm makes me wonder.

[Drprunepicker]

The CBI may be positioning it's self to remove the three zero's from the .00085 which muight result in a CBI a sell rate of 1.17 and us an exchange rate of ????. I say .85 to 1.00. What do ya'll say?

I looked for the article in which the CBI performed a study, either in 2009 or 2010, as to the true value of the IQD and if I remember correctly it would be between 1.13 to 1.17.

Now I found this document from the Ministry of Planning, Thanks to Marcus Curtis: Whom I highly repect. His whole article is very enlightening, a must read considering the present moves of the CBI. From his perspective and from the recent dollarization of the Iraqi markets, I would say Iraq will have to come out at a rate slightly higher than a dollar to dedollarize the Iraqi markets again.

As Per Marcus Curtis

Iraq has also been fighting dollarization, which is defined as two or more currencies in circulation in one nation. The two main currencies in Iraq are the dollar and the dinar. Iraq has been trying to remove the US dollar from circulation via its currency auctions. This information is available on the Central Bank of Iraq’s website. So the dinar does compete with the dollar. There was a study done in March of 2010 by the ministry of planning. They concluded that, in order for the dinar to compete in open markets and compete with the dollar, it would need to rise to a rate of $1.13. Here is the document.

Read more: &do=embed#ixzz1kEHPDccp' frameborder='0' data-embedContent>

Now the MOP study!

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

· Export-outputs.

· Outputs marketed locally that substitute imports.

· Imported inputs.

· Inputs produced locally that usually go to exports.

· Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

· The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

· The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

· The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

· The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

· This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en

Anyway, I just thought I would throw this information out there for discussion.

Nice article and makes total common sense. Everyone that paid $1100-$1300/ million dinar will loose money.

works for me too .... i'll take that rate all day long .....

How does 1.13 make you money? 1 million is now 1 thousand times 1.13=$1130.00

[F-16Pilot]

How does 1.13 make you money? 1 million is now 1 thousand times 1.13=$1130.00

I think you missed the conversion, $1.134 USD /Dinar. In other words, if you have 1,000,000 dinar when you can cash in you receive $1,134,000 USD. I see that as a small profit in my book.

[semichdave]

wrong math Prune... if they go dinar for dollar..... 1 million dinar = 1 million dollars...... if they go 1 to 1.134 = 1 million dinar x 1.134 dollars = $1,134,000.

try again bubba. think dollar for dollar. 1 dinar in left hand = 1 dollar in the right hand... unless it goes higher... IE 1.13

[Drprunepicker]

The CBI may be positioning it's self to remove the three zero's from the .00085 which muight result in a CBI a sell rate of 1.17 and us an exchange rate of ????. I say .85 to 1.00. What do ya'll say?

I looked for the article in which the CBI performed a study, either in 2009 or 2010, as to the true value of the IQD and if I remember correctly it would be between 1.13 to 1.17.

Now I found this document from the Ministry of Planning, Thanks to Marcus Curtis: Whom I highly repect. His whole article is very enlightening, a must read considering the present moves of the CBI. From his perspective and from the recent dollarization of the Iraqi markets, I would say Iraq will have to come out at a rate slightly higher than a dollar to dedollarize the Iraqi markets again.

As Per Marcus Curtis

Iraq has also been fighting dollarization, which is defined as two or more currencies in circulation in one nation. The two main currencies in Iraq are the dollar and the dinar. Iraq has been trying to remove the US dollar from circulation via its currency auctions. This information is available on the Central Bank of Iraq’s website. So the dinar does compete with the dollar. There was a study done in March of 2010 by the ministry of planning. They concluded that, in order for the dinar to compete in open markets and compete with the dollar, it would need to rise to a rate of $1.13. Here is the document.

Read more: &do=embed#ixzz1kEHPDccp' frameborder='0' data-embedContent>

Now the MOP study!

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

· Export-outputs.

· Outputs marketed locally that substitute imports.

· Imported inputs.

· Inputs produced locally that usually go to exports.

· Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

· The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

· The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

· The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

· The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

· This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en

Anyway, I just thought I would throw this information out there for discussion.

The three 000s they will drop is off the demonination of the currency. 25000IQD becomes 25 then do the math

[Drprunepicker]

I think you missed the conversion, $1.134 USD /Dinar. In other words, if you have 1,000,000 dinar when you can cash in you receive $1,134,000 USD. I see that as a small profit in my book.

Just remove the three 000s and you have your amount $1130.00

[DinarDana]

Just remove the three 000s and you have your amount $1130.00

WE are not going there - we have a special topics section on this site for this discussion and this isn't it. LOP all you want, but please not under this topic, just makes everyone angry. Besides that will not happen.

[CaptainWingnut]

Wow!

I can see that many people are misinformed about the working of exchange rates.

Let's see if I can help a tiny bit.

Currently the rate is 1166 IQD for 1 USD

or if you divide 1166 into 1 you get 0.00085763

0.00085763 is the REAL rate.

If they ReValue 0.00085763 to 1.0 then it is a $1 RV

Okay so going just a bit further,

When Iraq RV's at $1, it references THEIR currency,

and that means that every IRQ you have is worth $1 USD

If they RV'd at 25 cents, every IRQ you have will be worth 25 US cents.

That's the general break down, it's much more complicated than that

because it works in basis points points.

--------------------

I believe this analysis is as solid as we've seen BUTIFLDRM

When I put my financial analyst hat on my intel leads me to believe

that they'll probably come in at the lower end ($1 to start) and

gradually ramp it up from there, depending on the speed at which

they want the triple zero notes to come off the streets of the world.

Their budgeting numbers that are available in official documents

and do support a very good financial case theory of more than a buck...

right on up to, and even through the $1.17 line.

Woot Woot!!

THEORY WITH ME

So if they RV at $1.07 lets say,

and wait for all 000 notes to come home or off the street,

(which will probably be a bounty time limit),

once the bounty expires,

they could RV again to $2.14 (just twice as much)

and TOTALLY pay for world cost of the entire first RV,

This would put them at a serious break even point...

NO DEBT.

DEBT FREE IS HUGE.

Anything above THAT rate would be profit (speaking loosely).

Keep in mind that just prior to the Gulf War, the Iraqi Dinar was

valued at $3.2169 USD to $1 IQD

And THEY want to be back to at least THAT!!

If their third RV takes them back to Pre-Gulf War rate of $3 .2169, (that's exactly 1/3 more again)

They MAKE as much in profit as the first RV cost them.

So, the less they push the rate envelope on the first RV, the MORE

profit that is in it for them on the 3rd and later rv's.

They announced a few years ago that due to their enormous oil reserves

they expect to eventually be the STRONGEST currency in the Arab world...

Whoa! Does that means they expect to eventually be stronger than

the Morocco Dirham which is currently sitting at $8.54616 ???

You can figure that one out...

GO RV!!!

[brbrlocke]

1.17 could be my rate if they would just do it already....