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Central Bank confirms to possess large reserves of hard currency to meet demand Date: Sunday 29-01-2012 01: 13 pm

Rogue Knight

By Rogue Knight,
in Iraq & Dinar Related News

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Rogue Knight Newbie

Rogue Knight

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Central Bank confirms to possess large reserves of hard currency to meet demand

Date: Sunday 29-01-2012 01: 13 pm

Baghdad (newsletter).Iraqi Central Bank confirmed it possesses large reserves of hard currency to meet phenomenal demand, stating that there are internal and external factors behind this phenomenon.

The Bank said in a statement received (News News Agency) on Sunday: "it possesses substantial foreign reserves with high capacity in the face of any potential caused by the growing phenomenon of the demand for foreign currency based on monetary policy instruments available to control cash flow and liquidity levels to achieve the desired economic stability.

The Bank said: the phenomenon of the high demand for foreign currency in the Iraqi Central Bank buying and selling of the dollar in recent weeks, has been associated with increased overhead and flip them on the behaviour of individual demand in the market for foreign currency, which is itself an application locally on goods and services and benefits.

The Bank said: the regional conditions and complications in some countries surrounding Iraq and the mechanism of problematic in international economic relations was arrested by the additional streams with its error in formation in the demand for foreign currency by the overlap of regional trade and different financing ways./finished/l. m/

http://www.microsofttranslator.com/bv.aspx?from=ar&to=en&a=http%3A%2F%2Fwww.ikhnews.com%2Fnews.php%3Faction%3Dview%26id%3D31456

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leesburg Newbie

leesburg

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according to new york federal reserve ..they can increase their exchange rate to what ever they feel they can buy back with foriegn currency reserves ...so if they have 50 billion dollars in their reserves and they revalue their dinars to 4 dollars all they would need as assets would be what they think would be exchanged after the rate increase ... like the dinars that are out of country ...if the dinar went to 4 dollars the people of iraq would have no use for the dollar inside iraq borders so they wouldnt be cashing in their dinars for dollars ... only we in the united states would be cashing in ... so they would only need to cover our rv expense ...its hard to explain ....

this is from fed newyork

During the mid- to late-1960s, the United States experienced a period of rising inflation. Because currencies could not fluctuate to reflect the shift in relative macroeconomic conditions between the United States and other nations, the system of fixed exchange rates came under pressure.

In 1973, the United States officially ended its adherence to the gold standard. Many other industrialized nations also switched from a system of fixed exchange rates to a system of floating rates. Since 1973, exchange rates for most industrialized countries have floated, or fluctuated, according to the supply of and demand for different currencies in international markets. An increase in the value of a currency is known as appreciation, and a decrease as depreciation. Some countries and some groups of countries, however, continue to use fixed exchange rates to help to achieve economic goals, such as price stability.

In order to sustain a fixed exchange rate, a country must have sufficient foreign exchange reserves, often dollars, and be willing to spend them, to purchase all offers of its currency at the established exchange rate.

http://www.newyorkfed.org/aboutthefed/fedpoint/fed38.html

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keepmwlknfny Newbie

keepmwlknfny

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according to new york federal reserve ..they can increase their exchange rate to what ever they feel they can buy back with foriegn currency reserves ...so if they have 50 billion dollars in their reserves and they revalue their dinars to 4 dollars all they would need as assets would be what they think would be exchanged after the rate increase ... like the dinars that are out of country ...if the dinar went to 4 dollars the people of iraq would have no use for the dollar inside iraq borders so they wouldnt be cashing in their dinars for dollars ... only we in the united states would be cashing in ... so they would only need to cover our rv expense ...its hard to explain ....

this is from fed newyork

During the mid- to late-1960s, the United States experienced a period of rising inflation. Because currencies could not fluctuate to reflect the shift in relative macroeconomic conditions between the United States and other nations, the system of fixed exchange rates came under pressure.

In 1973, the United States officially ended its adherence to the gold standard. Many other industrialized nations also switched from a system of fixed exchange rates to a system of floating rates. Since 1973, exchange rates for most industrialized countries have floated, or fluctuated, according to the supply of and demand for different currencies in international markets. An increase in the value of a currency is known as appreciation, and a decrease as depreciation. Some countries and some groups of countries, however, continue to use fixed exchange rates to help to achieve economic goals, such as price stability.

In order to sustain a fixed exchange rate, a country must have sufficient foreign exchange reserves, often dollars, and be willing to spend them, to purchase all offers of its currency at the established exchange rate.

http://www.newyorkfe...oint/fed38.html

You do bring up a good point....they will only be responsible for being able to cash out who will be exchanging for other currencies like us speculators.....

If we could get a accurate number on how much dinar is being held by speculators, then we might be able to figure out a reasonable rate they could afford to cash us out at.....

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RodandStaff Rookie

RodandStaff

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That should help cover us when it's time for us to cash out... although it won't be physical cash as so many seem to think! huh.gif I know of a guy who went in to "cash" a $10,000 check... and he "bounced the bank"... they couldn't give him that much physical cash because they didn't have that much on hand. So when it comes time to cash out it will be credited to our accounts in the first place, if we want physical cash (who wants near worthless green paper that has no future???) we will have to wait for the bank to make a special order. I think I wanna try that one time... ask for cash and watch em squirm! unsure.giflaugh.giflaugh.giflaugh.gif

Thanks for the post Rogue... you just keep bringing good stuff!wink.gif

GO RV Already Baby!!!cool.gif

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keepmwlknfny Newbie

keepmwlknfny

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You do bring up a good point....they will only be responsible for being able to cash out who will be exchanging for other currencies like us speculators.....

If we could get a accurate number on how much dinar is being held by speculators, then we might be able to figure out a reasonable rate they could afford to cash us out at.....

This really supports the idea that in order for us to see the large gains we want, it will take time for Iraq to increase its reserves tremendously....most would guess that we hold trillions of dinar. Now of course if those numbers are exaggerated, which I wouldnt doubt then there could be some hope with the present situation....

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leesburg Newbie

leesburg

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once all the people around the world turn in their dinars after a revaluation ... they would end up at thier countrys foriegn reserves ... the united states for example would have billions in iraqi foriegn reserves to be used to prop up the dollar as well as for purchases of iraqi oil ,, or anything through out the world through the world trade organization..the dinar would have the new rv rate everywhere around the world and .those dinars would be then transferred to that countrys reserves ... so iraq would not necessarily need to cover all that dinar ...the bilateral agreements iraq has made over the last year or 2 most likely have covered these things ...the posibility of a revaluation is very real...

iraq has also been buying other countrys currency besides the dollar and keeping it in their foriegn reserves .. they dont mention the euro ..when they talk about foriegn reserves...or the yen or yaun ...or rupil ...they say they have 60 billion dollars ...they dont say they have 60 billion dollars ,25 billion euros ..10 billion yen ect, they may hold out till after all the other currencys revalue ... to revalue their currency last.. that way all those other currencys in their reserves have already increased in value before they rv theirs,,,giving it even more value....so if a bunch of currencys rv and iraq doesnt ...do not say iraq sucks and sell off the dinar ...only finding out 6 months later the dinar rvd ...i wont sell my dinars till they put out a dead line to exchange them in

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keepmwlknfny Newbie

keepmwlknfny

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once all the people around the world turn in their dinars after a revaluation ... they would end up at thier countrys foriegn reserves ... the united states for example would have billions in iraqi foriegn reserves to be used to prop up the dollar as well as for purchases of iraqi oil ,, or anything through out the world through the world trade organization..the dinar would have the new rv rate everywhere around the world and .those dinars would be then transferred to that countrys reserves ... so iraq would not necessarily need to cover all that dinar ...the bilateral agreements iraq has made over the last year or 2 most likely have covered these things ...the posibility of a revaluation is very real...

iraq has also been buying other countrys currency besides the dollar and keeping it in their foriegn reserves .. they dont mention the euro ..when they talk about foriegn reserves...or the yen or yaun ...or rupil ...they say they have 60 billion dollars ...they dont say they have 60 billion dollars ,25 billion euros ..10 billion yen ect, they may hold out till after all the other currencys revalue ... to revalue their currency last.. that way all those other currencys in their reserves have already increased in value before they rv theirs,,,giving it even more value....so if a bunch of currencys rv and iraq doesnt ...do not say iraq sucks and sell off the dinar ...only finding out 6 months later the dinar rvd ...i wont sell my dinars till they put out a dead line to exchange them in

The fact of them being able to pay out speculators doesn't hold up any chances of being able to RV in my mind, that part of this deal doesnt raise many flags at all..... just simply the fact of having to back the value of their currency at the same time being as diluted as it is....

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jmw Newbie

jmw

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once all the people around the world turn in their dinars after a revaluation ... they would end up at thier countrys foriegn reserves ... the united states for example would have billions in iraqi foriegn reserves to be used to prop up the dollar as well as for purchases of iraqi oil ,, or anything through out the world through the world trade organization..the dinar would have the new rv rate everywhere around the world and .those dinars would be then transferred to that countrys reserves ... so iraq would not necessarily need to cover all that dinar ...the bilateral agreements iraq has made over the last year or 2 most likely have covered these things ...the posibility of a revaluation is very real...

iraq has also been buying other countrys currency besides the dollar and keeping it in their foriegn reserves .. they dont mention the euro ..when they talk about foriegn reserves...or the yen or yaun ...or rupil ...they say they have 60 billion dollars ...they dont say they have 60 billion dollars ,25 billion euros ..10 billion yen ect, they may hold out till after all the other currencys revalue ... to revalue their currency last.. that way all those other currencys in their reserves have already increased in value before they rv theirs,,,giving it even more value....so if a bunch of currencys rv and iraq doesnt ...do not say iraq sucks and sell off the dinar ...only finding out 6 months later the dinar rvd ...i wont sell my dinars till they put out a dead line to exchange them in

sorry..but I think you may be listening to too many dinar gurus...the US can't and won't purchase oil with IQD reserves that are turned in by us...Iraq does have to cover ALL of the currency that they have in circulation...they can't just change their rate they have to be able to support that change...and currently they can't keep their electricity on...but you think they will save the world?...and why do you think EVERYONE is going to revalue?...it's NEVER been done before EVER...but now everyone is going to do it?...really?

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Stryker365 Newbie

Stryker365

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This really supports the idea that in order for us to see the large gains we want, it will take time for Iraq to increase its reserves tremendously....most would guess that we hold trillions of dinar. Now of course if those numbers are exaggerated, which I wouldnt doubt then there could be some hope with the present situation....

Only IF it (IQD) makes its way back to the CBI for exchange does the CBI reserves come into play.

If there is already an agreement to trade the IQD, that is here and other parts of the world for things like future oil, investments like other countries are doing now by forgiving dept, etc....the reserves are not effected. These numbers would already be agreed upon....

Reserves were $20 billion....now they are $60 billion...

once all the people around the world turn in their dinars after a revaluation ... they would end up at thier countrys foriegn reserves ... the united states for example would have billions in iraqi foriegn reserves to be used to prop up the dollar as well as for purchases of iraqi oil ,, or anything through out the world through the world trade organization..the dinar would have the new rv rate everywhere around the world and .those dinars would be then transferred to that countrys reserves ... so iraq would not necessarily need to cover all that dinar ...the bilateral agreements iraq has made over the last year or 2 most likely have covered these things ...the posibility of a revaluation is very real...

iraq has also been buying other countrys currency besides the dollar and keeping it in their foriegn reserves .. they dont mention the euro ..when they talk about foriegn reserves...or the yen or yaun ...or rupil ...they say they have 60 billion dollars ...they dont say they have 60 billion dollars ,25 billion euros ..10 billion yen ect, they may hold out till after all the other currencys revalue ... to revalue their currency last.. that way all those other currencys in their reserves have already increased in value before they rv theirs,,,giving it even more value....so if a bunch of currencys rv and iraq doesnt ...do not say iraq sucks and sell off the dinar ...only finding out 6 months later the dinar rvd ...i wont sell my dinars till they put out a dead line to exchange them in

Nice way to put it, its also funny to me why people challenge this when they are in this to make money...wait I see the non investor just made a comment to you.

Do not pay any attention to him he holds no dinar or respect here.....you know who you are JMW

Edited by Stryker365
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leesburg Newbie

leesburg

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The fact of them being able to pay out speculators doesn't hold up any chances of being able to RV in my mind, that part of this deal doesnt raise many flags at all..... just simply the fact of having to back the value of their currency at the same time being as diluted as it is....

it has everything to do with it ...if a country just raises their value of their currency .. that wont give anyone confidence to buy their currency ..if its not backed up... say they bought a million cars from ford ...with their new currency .."dinars"... so ford went to the bank and exchanged the dinars in for dollars ... iraq better have the dollars to back up those... dinars .... the united states isnt just going to cover iraqs expense... i know the united states does not have the foriegn reserves to cover all the dollars in existance... but they have enough to cover the ones abroad.... we do carry alot of unfunded liabilities ... which are backed up only by our economy ...the way we are educated ..to get up and go to work ... working people is the only thing that backs the us dollar ....not gold ...or land ...or other things .. its a promisary note ...an agreement between the banking sector and the private sector ..called the monetary system ..all money is based on a loan payable through work ... the more money that is given away for free ..the less valuable our dollar becomes ... via welefare ..food stamps ect... you cant give money away for free to some and tell others they have to work for it ,, unless its your goal to devalue your currency ...if you want your currency to lose value just start giving it away for free

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keepmwlknfny Newbie

keepmwlknfny

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it has everything to do with it ...if a country just raises their value of their currency .. that wont give anyone confidence to buy their currency ..if its not backed up... say they bought a million cars from ford ...with their new currency .."dinars"... so ford went to the bank and exchanged the dinars in for dollars ... iraq better have the dollars to back up those... dinars .... the united states isnt just going to cover iraqs expense... i know the united states does not have the foriegn reserves to cover all the dollars in existance... but they have enough to cover the ones abroad.... we do carry alot of unfunded liabilities ... which are backed up only by our economy ...the way we are educated ..to get up and go to work ... working people is the only thing that backs the us dollar ....not gold ...or land ...or other things .. its a promisary note ...an agreement between the banking sector and the private sector ..called the monetary system ..all money is based on a loan payable through work ... the more money that is given away for free ..the less valuable our dollar becomes ... via welefare ..food stamps ect... you cant give money away for free to some and tell others they have to work for it ,, unless its your goal to devalue your currency ...if you want your currency to lose value just start giving it away for free

Iraq has to cover any currency being exchanged back for other currencies, while still retaining enough reserves to back the value of ALL the currency.....

Lets say Iraq RVs to 1 USD.....maybe they only will end up having to pay out for 20 billion dollars worth of dinar (just pulling random numbers out) but at the same time if they do that, it would leave only 40 billion left, and that is well short of covering a 60 trillion dollar money supply at a value near 1 USD

Countries that have currency pegged to others rely heavily on the strength and amount of their reserves to back their value.....and if those numbers are all correct, Iraq is a little short right now.... laugh.gif

Edited by keepmwlknfny
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Butifldrm Apprentice

Butifldrm

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One thing I have been watching is, how Iraq will manage 45% of their foreign currency reserve being the Euro. I thought it was also interesting that they just paid kuwait over 700,000 or 1B USD in Euro. I am not a Guru, but I believe the amount of Euro the CBI hold may be a determining factor for the value of the IQD and the timing of the RV. If the Euro tanks would that not affect 45% of their foreign currency reserves? Now, I have not seen recent Data (2012) on what percentage of Foreign currency reserve is actual Euro, but in September 45% was Euro.JMO

Iraq depends on oil revenues for about 95 percent of its budget.

September 07, 2011

BAGHDAD — The Iraqi Central Bank has announced a large increase in the country’s foreign-currency reserves, RFE/RL’s Radio Free Iraq reports.

Mudher Muhammad Salih, an adviser to Central Bank Governor Sinan al-Shabibi, told RFE/RL on September 6 that the bank’s reserves “are now at about $58 billion.”

He said that was an increase from the $50 billion in foreign currency reserves it had at the end of 2010.

Salih added that the bank had recently succeeded in controlling the inflation rate, which he said in recent years had increased at a high rate and was 7.1 percent in July.

He said the Central Bank would continue to obtain different foreign currencies and increase its overall amount of foreign-currency reserves in order to protect the value of the Iraqi dinar, which he said was a “main goal” of the bank.

Iraq’s foreign-currency reserves are 45 percent in dollars, 45 percent in euros, and 10 percent in British pounds.

Iraq depends on oil revenues for about 95 percent of its budget and the increase in foreign-currency reserves thus far this year is due to higher world prices for oil. Iraq has earned some 34 percent more from oil through the first five months than it had budgeted.

Economic experts welcomed the announcement about the country’s currency reserves but warned that the total was still not high enough.

Iraqi economist Hilal al-Tahhan said the currency reserves should be roughly equivalent to Iraq’s annual budget, which is about $79.6 billion.

Iraq’s Baghdad-based Central Bank, which is an independent institution, has branches in Basra, Sulaymaniah, Irbil, and Mosul.

http://bit.ly/o8DKMe

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Elixirbaby Newbie

Elixirbaby

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Iraq has to cover any currency being exchanged back for other currencies, while still retaining enough reserves to back the value of ALL the currency.....

Lets say Iraq RVs to 1 USD.....maybe they only will end up having to pay out for 20 billion dollars worth of dinar (just pulling random numbers out) but at the same time if they do that, it would leave only 40 billion left, and that is well short of covering a 60 trillion dollar money supply at a value near 1 USD

Countries that have currency pegged to others rely heavily on the strength and amount of their reserves to back their value.....and if those numbers are all correct, Iraq is a little short right now.... laugh.gif

But your assuming that the dinar is only back by what's in their reserves. What about oil, gas? I thought I have read that value of the currency is based on many variables?

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leesburg Newbie

leesburg

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i believe they only need to cover what needs to be covered through foriegn exchange .. the people of iraq will not have a need for foriegn currency for day to day living ..just like here in the us .. we use the dollar...the us only has around 146 billion in foriegn reserves,, that doesnt cover the trillions of dollars used here in the us ... but if someone over seas wants their dollars exchanged for their countrys currency ..it is covered...if it ever got to the point to where everyone wanted to turn in all their dollars for their countries currency and it totaled to more than we had in foriegn reserves our dollar would be devalued to meet that number of exchanges.. as explained in the article from the new york fed i posted earlier.

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Elixirbaby Newbie

Elixirbaby

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i believe they only need to cover what needs to be covered through foriegn exchange .. the people of iraq will not have a need for foriegn currency for day to day living ..just like here in the us .. we use the dollar...the us only has around 146 billion in foriegn reserves,, that doesnt cover the trillions of dollars used here in the us ... but if someone over seas wants their dollars exchanged for their countrys currency ..it is covered...if it ever got to the point to where everyone wanted to turn in all their dollars for their countries currency and it totaled to more than we had in foriegn reserves our dollar would be devalued to meet that number of exchanges.. as explained in the article from the new york fed i posted earlier.

I know that these numbers have been thrown out there from time to time.

Iraq reserves 60ish billion and 30 million population

USA reserves 146ish billion and 300 million population

Makes you go hmmmmmmmm.

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leesburg Newbie

leesburg

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its all based on confidense ..im positive the amount of foriegn visitors ariving in iraq since the us left in december has dropped off significantly .. if buisnessmen dont feel safe to send its employees to a country ..to do buisness ..they wont ...do people around the world go to iraq now and check into hotels and go out sight seeing and walking up and down the streets getting lunch where ever the feel ... do they go to a beach ..or any where in iraq for entertainment .... it all depends on how iraq functions as a country since the us isnt over seeing its security ...the airports were booming while the americans were there .. but what about now ...does the govt have control .and is the govt excepted by its people . that is key for a stable dinar and weather or not it will be excepted ...

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