Iraqi Central Bank to take a new financial measures in the coming days

[Carrello]

SWEET MAMA GORGONZOLA!!!! LET'S DO THIS!!!! (Anyone else having a hard time breathing???)

I am not sure, but I would think that being this late in the month, that if, IF, it were happening SOON, it would be on the 1st, which is Wednesday.

[captl1]

If we had Doc31, Mr. Rich, and Scooter (and others!) it would be old home week.

We need to send the bat signal! lol

[Dinarabot]

No movement on the iqd on forex....hmmm...usually its up and down already...

[lotsofdinar]

We kind of need to back up. There are two ways of raising the dinar against the dollar, as Shabs says he is going to do: RV the currency to 1:1 or RD by deleting three zeros off the currency, thus effectively raising the exchange rate. One Shabs has been talking about forever, the other...I think once. We still don't know which he will do. JMHO, of course.

[Alex38]

I am not sure, but I would think that being this late in the month, that if, IF, it were happening SOON, it would be on the 1st, which is Wednesday.

I like the way you think!!!!!

We kind of need to back up. There are two ways of raising the dinar against the dollar, as Shabs says he is going to do: RV the currency to 1:1 or RD by deleting three zeros off the currency, thus effectively raising the exchange rate. One Shabs has been talking about forever, the other...I think once. We still don't know which he will do. JMHO, of course.

Shocking!

[captl1]

We kind of need to back up. There are two ways of raising the dinar against the dollar, as Shabs says he is going to do: RV the currency to 1:1 or RD by deleting three zeros off the currency, thus effectively raising the exchange rate. One Shabs has been talking about forever, the other...I think once. We still don't know which he will do. JMHO, of course.

If a product costs 25000 dinars and they drop the zeros the product now costs 25 dinars.....where is the benefit? How does this increase the purchasing power??? No Benefit IMHO

[YANNAVIA]

No movement on the iqd on forex....hmmm...usually its up and down already...

The iraqi dinar is not on the forex. lol.

[Carrello]

I think nawty1 is of the female type ... eh nawty1?

I have to tell you nawty1 that I am really enjoying your breakdown and comments. Typically, academia has a cadence to their conversation that is easy to grasp and has no sharp edges.Thank you very much. Sundays are usually slow, but you should get some good debate this week.

I will remind you that we have an Member Ignore Button, and I am speaking for myself, but it has been a God send.

[nawty1]

I have to tell you nawty1 that I am really enjoying your breakdown and comments. Typically, academia has a cadence to their conversation that is easy to grasp and has no sharp edges.Thank you very much. Sundays are usually slow, but you should get some good debate this week.

I will remind you that we have an Member Ignore Button, and I am speaking for myself, but it has been a God send.

thanks, some of my students come to this site, and told me to check it out, thanks for the warm welcome

[bamagirl]

Thread still going strong this morning...go dinar!!! ***Carrello you are not only super smart, you're funny as he!!....CANNOT WAIT to meet you lady!!

[Stryker365]

thanks, some of my students come to this site, and told me to check it out, thanks for the warm welcome

What do you teach nawty1, if you don't mind me asking?

[Joker017]

thanks, some of my students come to this site, and told me to check it out, thanks for the warm welcome

e

Glad to Have You Nawty1, Definately appreciate your Input along with everyone else! This is such a Great group of people & I would just like to Give a Shout out to everyone. I'd like to say, Thank you all for your Time, Your Input, Your Analysis and Your Opinions... I've learned a lot in a very short time! Looking forward to the future, Big Time.....

[rsskelton]

Wow ! Never expected such a great response to this article. Thanks to all of you for your comments and even more special (to me at least), thank you for such a warm and gracious welcome back to DV !

RSS

[Dinarabot]

The iraqi dinar is not on the forex. lol.

http://www.forex.tradingcharts.com/quotes/index.php?sym=usdiqd&Submit=Go&tz=GMT

It does move on here....

[Umbwakali]

We know that for years they have introduced usd through auctions, I gues they will RV 1-1, then the following takes place,

law comes into place that IQD is the only currency in place in Iraq, smuggling stops as no need for USD

Auctions continue only reverse selling IQD to withdraw USD

The CBI will make a fortune and their reserves will blow to incredible new heights.

A question that has always plagued me about deletion of zero's people keep saying the notes......how about this " delete the zero's on the xchange rate"?

[nawty1]

What do you teach nawty1, if you don't mind me asking?

i am an economic professor, i used to teach currency trading classes, i am here to learn as well, just because i teach doesn't mean i know anymore than some of the very bright people on here do. just saying

i am a male, 3 kids, i know the name probably threw some off, but its been my nickname since grade school, i used to be bad news.

Edited January 30, 2012 by nawty1

[fnbplanet]

Through the magic of cut and paste, I rearranged the second paragraph of this article. Lately I've been finding that it can bring some clarity to the funky translations. Hope it helps!

Friday, he said, "the central bank announced new financial measures to reduce the smuggling of currency, as well as the reduction of inflation, in order to solve this problem in the coming days, by setting the exchange rate as well as the purchase price. The Central Bank will put in a new price, in order to balance the market."

Also, IMO, Shabby-Doo, ahead of the curve as always, has already begun measures to limit the depletion of the CBI's stores of USD (around 40% of his 60 billion reserves) by limiting the auctions to 200 million per day:

1838 15-Jan 1,205 1,170 231,115 24,500 206,615

1839 16-Jan 1,205 1,170 232,516 19,250 213,266

1840 17-Jan 1,205 1,166 201,290 25,500 175,790

1841 18-Jan 1,199 1,166 200,140 10,750 189,390

1842 19-Jan 1,209 1,166 199,905 5,500 194,405

1843 20-Jan NO AUCTION NO AUCTION NO AUCTION NO AUCTION NO AUCTION

1844 21-Jan NO AUCTION NO AUCTION NO AUCTION NO AUCTION NO AUCTION

1845 22-Jan 1,199 1,166 200,000 28,250 171,750

1846 23-Jan 1,203 1,166 202,060 19,750 182,310

1847 24-Jan 1,203 1,166 202,710 20,750 181,960

1848 25-Jan 1,205 1,166 202,000 10,750 191,250

1849 26-Jan 1,205 1,166 199,620 6,000 193,620

1850 27-Jan NO AUCTION NO AUCTION NO AUCTION NO AUCTION NO AUCTION

1851 28-Jan NO AUCTION NO AUCTION NO AUCTION NO AUCTION NO AUCTION

1852 29-Jan 1,206 1,166 202,945 41,250 161,695

1853 30-Jan 1,210 1,166 199,925 30,250 169,675

Furthermore, it is entirely possible that lower denominations have been printed (in November!), and stored for quick distribution. Note the difference in M2 growth (YoY) from October to November. An increase of 5.2%?? Probably could print bills AND mint coins for that much.

ECONOMIC DATA posted Jan 16, 2012

Interest rates

CBI policy rate (valid from 1 Apr 2010) 6%

IQD 7 day deposit 4%

Primary credit facility 8%

Economic indicators

Core inflation (YoY): Dec 2011 6.97%

Inflation (YoY): Dec 2011 6.02%

M2 growth (YoY): Oct 2011 17.2%

For 2011F:

GDP - real growth rate 9.6%

Budget deficit/GDP 13.7%

Current account deficit/GDP 0.9%

Net foreign reserves $60B

ECONOMIC DATA posted Jan. 24, 2012

Interest rates

CBI policy rate (valid from 1 Apr 2010) 6%

IQD 7 day deposit 4%

Primary credit facility 8%

Economic indicators

Core inflation (YoY): Dec 2011 6.97%

Inflation (YoY): Dec 2011 6.02%

M2 growth (YoY): Nov 2011 22.4%

For 2011F:

GDP - real growth rate 9.6%

Budget deficit/GDP 13.7%

Current account deficit/GDP 0.9%

Net foreign reserves $60B

Sorry I was late showing up for this thread. I miss Doc31 too.

[Stryker365]

i am an economic professor, i used to teach currency trading classes

i am a male, 3 kids, i know the name probably threw some off, but its been my nickname since grade school, i used to be bad news.

Thank you for the response, I had a feeling you were and that's why I ask. Thank you for your insights and I could not agree with you more. Welcome to DV and I and others look forward to your upcoming input.

an economic professor, not bad news...

Edited January 30, 2012 by Stryker365

[truthful1]

there are 2 things they almost need to do to stop this.

first: stop the auctions, if they stop the auctions they reduce the risk of money landing in the wrong hands.

second: they need to revalue the rate of exchange, if they stop the auctions, which they will have to do soon, until a new rate is high enough that the corrupt will not find it attractive enough to purchase anymore. they need to revalue for purchasing power, there purchasing power for an oil rich country is sad at best. then when the rate is too high for these corrupt to buy, they will start auctions, and interbank trading again.

lotsofdinar asked why would they announce a rv before an actual rv, well if they are not printing dinar anymore, which you would have to believe since they are buying it back, then announcing this would not be a big deal, they know how much dinar will be out, and how much they will be on the hook for. even if some sell there personal dinar, it doesn't get back to iraq, it goes from one speculator to another, so cbi can't count on getting the u.s dinar holders dinar back to the cbi. if iraq is truly done printing the dinar we currently own, them telling us there intentions isn't a big deal at all.

I like your opinion. however,i think the auctions will continue, even after a significant rv. until the dinar can be used outside iraq, citizens will need conversion to pay for imports. also the cbi makes about 2 million per auction with the 13 dinar spread. if yhe rate moves i hope its any number but 1000:1, even though thats an improvement it aligns for deletion of zeroes with parity to the dollar. ill be excited at anything lower than 1000:1, that will define to me, theres a different definition to deletion of the three zeroes.

[kennyc]

this is about to POP. Great post & good to see you back on.

[Mazzz27]

I like your opinion. however,i think the auctions will continue, even after a significant rv. until the dinar can be used outside iraq, citizens will need conversion to pay for imports. also the cbi makes about 2 million per auction with the 13 dinar spread. if yhe rate moves i hope its any number but 1000:1, even though thats an improvement it aligns for deletion of zeroes with parity to the dollar. ill be excited at anything lower than 1000:1, that will define to me, theres a different definition to deletion of the three zeroes.

sad but true

Edited January 30, 2012 by Mazzz27

[redsand]

i am an economic professor, i used to teach currency trading classes, i am here to learn as well, just because i teach doesn't mean i know anymore than some of the very bright people on here do. just saying

i am a male, 3 kids, i know the name probably threw some off, but its been my nickname since grade school, i used to be bad news.

nawty by nature, but has the economic smarts. I like your thoughts.

[hoopdog]

Soon could be another year in Iraq

[nawty1]

I like your opinion. however,i think the auctions will continue, even after a significant rv. until the dinar can be used outside iraq, citizens will need conversion to pay for imports. also the cbi makes about 2 million per auction with the 13 dinar spread. if yhe rate moves i hope its any number but 1000:1, even though thats an improvement it aligns for deletion of zeroes with parity to the dollar. ill be excited at anything lower than 1000:1, that will define to me, theres a different definition to deletion of the three zeroes.

this problem is because the dinar is so cheap, and everyone knows that it is worth more, they will do auctions-inter bank trading still, what i was saying, is if they want this problem to stop they need to stop the auction til the value is high enough so it is only bought and sold to cover the banks, now anyone can afford the dinar, and it is a smugglers dream. 1000-1 doesn't stop this problem it would have to be over $.1 to stop this problem, i do respect your opinion, but your 1000-1 makes no sense, if this is really the problem that iraq claims

Edited January 30, 2012 by nawty1

[truthful1]

this problem is because the dinar is so cheap, and everyone knows that it is worth more, they will do auctions-inter bank trading still, what i was saying, is if they want this problem to stop they need to stop the auction til the value is high enough so it is only bought and sold to cover the banks, now anyone can afford the dinar, and it is a smugglers dream. 1000-1 doesn't stop this problem it would have to be over $.1 to stop this problem, i do respect your opinion, but your 1000-1 makes no sense, if this is really the problem that iraq claims

Good point. i want anything but 1000:1. However, if it is 1000:1 they could still have two options to get on par with a dollar. Anything that can remove the traditional sense of deletion of zeroes/ rd is a big win.