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Dinar Rumor You are not going to believe this!


Enorrste
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You are not going to believe this!

I must apologize to all for not having posted this yesterday afternoon. As it turns out I had made a commitment to drive 75 miles one way for dinner. Of course the dinner led to “after dinner drinks” and before you know it, I spent the night. Then today I was on the road all day until just now.

However, I am back and have a wonderful surprise for you all.

Let’s start with Maliki’s statement from 3 days ago:

28 February 2010

“Iraqi Prime Minister Nouri al-Maliki said on Sunday that the process to re-evaluate the Iraqi dinar has to do with economic conditions that have to be strengthened.

"’The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy,’ Maliki said in response to some questions through the National Information Center.

"’The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI)Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon,’ said the Iraqi premier.

“The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.

“The exchange rate fell even more after 2003 to reach 1170 dinars per dollar due to the CBI's policy of daily auction, in effect for more than five years now.

“The policy was lambasted by several economists on the grounds that these auctions do not give the real value of the country's local currency.

Edited by grumpy
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I follow the analysis and see your point (and always learn from your posts), but if Shabibi was really announcing the RV wouldn't he clearly announce it with a rate? If he really was eluding to the RV and it was understood that way one would think it would cause mass speculation. I have always assumed an RV announcement would be immediate, but a LOP announcement would be gradual and repetitive to avoid confusion. I guess I am falling back to your own hermaneutic "if the plain sense makes sense look for no other sense".

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"Before you all get in a huff because of my addition of this small word"

I would love it if you were right; however, the "small" word you changed Drastically altered what was said.

Again, I would love it if you were right; however, manipulating one "small word" could drastically change the meaning of any sentence.

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I agree... There's a mighty big difference between the CURRENT exchange rate and the NEW exchange rate. I'm very pleased to at least see some acknowledgement of the exchange rate, but please, let's not assume anything other than is written right in front of us. Regardless, these latest statements are a positive sign and should be treated as just that, a positive sign...nothing more and nothing less.

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Sorry for the uber-pithy post, but I've got to get to work in a minute. Just a quick point before I go: Enorrste says, "As far as I know this is the first time that Maliki has made a direct statement on the possible revaluation of the dinar."

This article doesn't say anything about a revaluation. It does say "Re-evaluate" as in, re-analyze.

I can see how we can hope that a growth in the value of the IQD could mean an RV. I hope for it too. But the IQD grew in value from 3000:1 USD after the first gulf war to its current value of 1170, it accomplished this growth with no RV. So growth in value of IQD doesn't necessarily mean an RV. Hopefully it does, though.

FP

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