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

[DinarDana]

Yep....there could be other plans tied into this raising the exchange rate to 1000.....

Dont want to spoil the mood cause regardless a rise in the rate is good, but I have theorized with some other members about this exact thing before redenominating to make the switch over very easy and would leave the dinar EXACTLY on par with the USD if they removed the zeros....

I hope this IS NOT the case....

Keep, I agree you have done a great job keeping us informed about this possible outcome and I agree with you, I hope this is not the case. It can go either way in my opinion, however I want to believe that they want more purchasing power and will raise the foreign exchange rate to reflect this outcome.

[lotsofdinar]

RV'ing the dinar will not give Iraqis more "purchasing power" within the country. It would be a neutral event. A 10 dinar bag of camel chow will still cost 10 dinar (regardless of the exchange rate with the USD). What it would do, though, would be to make it far more expensive for foreign governments (think, the U.S.) to do business with Iraq. That's not what Iraq wants.

Edited January 31, 2012 by lotsofdinar

[zigmeister]

Yep....there could be other plans tied into this raising the exchange rate to 1000.....

Dont want to spoil the mood cause regardless a rise in the rate is good, but I have theorized with some other members about this exact thing before redenominating to make the switch over very easy and would leave the dinar EXACTLY on par with the USD if they removed the zeros....

I hope this IS NOT the case....

I hope this is not the choice, but I do remember the discussion. They RV it to 1000 to 1, they bring out the new currency without the zero's and RV it, at one to one. Right? Then you have two currencies of dinar running side by side. The old at 1000 to 1, the new at par with US. I am not going to worry about it, but I am prepared this may be the route, may be.

[Mazzz27]

doesnt parliament have to approve the three zeros?

[Patriotic_mess]

RV'ing the dinar will not give Iraqis more "purchasing power" within the country. It would be a neutral event. A 10 dinar bag of camel chow will still cost 10 dinar (regardless of the exchange rate with the USD). What it would do, though, would be to make it far more expensive for foreign governments (think, the U.S.) to do business with Iraq. That's not what Iraq wants.

An RV would be the exact opposite what what is happening in America, as our money decreases in value the price of goods goes up. If the value of the IQD goes up then the prices will go down, increasing the purchasing power. This will be very easy for them if it goes one to one, especially since they already use the USD. Say a candy bar costs 50 cents in US Dollars and 553 IQDs, if they go one to one that candy bar would be now worth .5 IQDs (they'll eventually make their own change).

[nawty1]

Not to be a downer, but I'm just having a hard time getting my head around the logic of revealing an imminent change to the exchange rate in a news article.

the reason why they could announce this is because they are not printing anymore dinar in its current 000 state.

so for them to announce this wouldn't matter, they sucked enough dinar back in to the central bank to the point that there comfortable, so cbi knows what they will be on the hook for.

the dinar that is out is out, they will not get any u.s dinar back, since all it does here in the states is go from speculator to speculator when one sells.

plus all they did is what they always do, they identify a problem, then it takes forever for them to act on it.

moving the rate to 1000-1 doesn't do iraq any good, there next move will be an actual rv, or redenominate (which at this point is very unlikely)

[JWJW11]

the reason why they could announce this is because they are not printing anymore dinar in its current 000 state.

so for them to announce this wouldn't matter, they sucked enough dinar back in to the central bank to the point that there comfortable, so cbi knows what they will be on the hook for.

the dinar that is out is out, they will not get any u.s dinar back, since all it does here in the states is go from speculator to speculator when one sells.

plus all they did is what they always do, they identify a problem, then it takes forever for them to act on it.

moving the rate to 1000-1 doesn't do iraq any good, there next move will be an actual rv, or redenominate (which at this point is very unlikely)

Very well said! You must be new! Lol dont fight to hard the lopsters will wear you down....they hold strong to this being a big waiste of time....and laugh about it....its not somethin they can control.

Btw Sansoucci isnt a lopster but does not see why they would announce it but I agree with you....it doesnt really matter!

[rsskelton]

the reason why they could announce this is because they are not printing anymore dinar in its current 000 state.

so for them to announce this wouldn't matter, they sucked enough dinar back in to the central bank to the point that there comfortable, so cbi knows what they will be on the hook for.

the dinar that is out is out, they will not get any u.s dinar back, since all it does here in the states is go from speculator to speculator when one sells.

plus all they did is what they always do, they identify a problem, then it takes forever for them to act on it.

moving the rate to 1000-1 doesn't do iraq any good, there next move will be an actual rv, or redenominate (which at this point is very unlikely)

Once again kudos to you my friend! Love the logic of an Economics Professor. If your not careful, your gonna make me run out of +1's.

RSS

[nawty1]

Once again kudos to you my friend! Love the logic of an Economics Professor. If your not careful, your gonna make me run out of +1's.

RSS

thank you sir, your going to make me blush.

[nawty1]

Very well said! You must be new! Lol dont fight to hard the lopsters will wear you down....they hold strong to this being a big waiste of time....and laugh about it....its not somethin they can control.

Btw Sansoucci isnt a lopster but does not see why they would announce it but I agree with you....it doesnt really matter!

its odd you say that, i was reading through the lop section last night, and though i agree with some of there points, but some of there points are a reach at best.

they seem to try to bully others, and to be honest its a shame.

when it comes to iraqs situation, m1's dont hold water, heck i just read they have 90 bil in there reserves, and they have been stating for months now that there sitting on 50-60 billion.

when dealing with a countries finances do not believe anything you read, its my opinion they lied on having 90 billion, i believe its over 100 billion, and thats with the cbi buying back dinar with u.s.d, which they have been stating for months now.

also do not believe that they have 20-30 trillion out in circ, that number is completely false in my opinion, that number isn't over 7 imo.

[cooked]

thank you sir, your going to make me blush.

I like your rationalizations. I also think you sound too smart to be a GURU like some here. Keep up the good posts. Thanks.

[nawty1]

I like your rationalizations. I also think you sound too smart to be a GURU like some here. Keep up the good posts. Thanks.

guru's are professional guessers, i use things like debt, fraud, oil pro, and the u.s influence.

i teach my students, never guess on currency, follow the flow of cash, and look at the potential of the country, and what there future is as a country, i know that iraq is cloudy right now, but in 10 years the u.s will be loaning money from them.

[20MillionDinar]

its odd you say that, i was reading through the lop section last night, and though i agree with some of there points, but some of there points are a reach at best.

they seem to try to bully others, and to be honest its a shame.

when it comes to iraqs situation, m1's dont hold water, heck i just read they have 90 bil in there reserves, and they have been stating for months now that there sitting on 50-60 billion.

when dealing with a countries finances do not believe anything you read, its my opinion they lied on having 90 billion, i believe its over 100 billion, and thats with the cbi buying back dinar with u.s.d, which they have been stating for months now.

also do not believe that they have 20-30 trillion out in circ, that number is completely false in my opinion, that number isn't over 7 imo.

I completely agree with everything you have said here! Thank you for your posts Nawty1, keep up the good work.

[tjnies]

nawty1,

Can I ask you what you feel is the hold up on this rv?

What in your opinion is the tipping point, or have they reached it already?

I know many have stated that an rv at a penny would be great, but how would such a low amount be of benefit to Iraqis and the large Corporations that want to pour millions and billions into Iraq?

Thanks in advance!

[nawty1]

nawty1,

Can I ask you what you feel is the hold up on this rv?

What in your opinion is the tipping point, or have they reached it already?

I know many have stated that an rv at a penny would be great, but how would such a low amount be of benefit to Iraqis and the large Corporations that want to pour millions and billions into Iraq?

Thanks in advance!

as were seeing iraq is trying to buy back as much dinar as they can with u.s.d, and from multiple articles the u.s money is going to iran, i do not see this as bad for us.

i think iraq wanted to suck as much dinar back in as possible, that's what tells me they will not follow turkey and r/d.

the hold up to me is them just getting back enough dinar back to be happy with what is left out there, they want to bleed out the banks to make corruption less probable.

on your penny question, i believe anything over zero would be good for iraq, they need to start using and building confidence in there own currency.

in my opinion, i feel that the rate will fall somewhere in the $.30-.80 range. but i do feel with oil being paid in u.s.d and them using u.s.d as there currency now, that $1.00 wouldn't be a reach.

[JWJW11]

its odd you say that, i was reading through the lop section last night, and though i agree with some of there points, but some of there points are a reach at best.

they seem to try to bully others, and to be honest its a shame.

when it comes to iraqs situation, m1's dont hold water, heck i just read they have 90 bil in there reserves, and they have been stating for months now that there sitting on 50-60 billion.

when dealing with a countries finances do not believe anything you read, its my opinion they lied on having 90 billion, i believe its over 100 billion, and thats with the cbi buying back dinar with u.s.d, which they have been stating for months now.

also do not believe that they have 20-30 trillion out in circ, that number is completely false in my opinion, that number isn't over 7 imo.

Couldnt agree more.....

[A.J]

It seems odd Iraq would tell people they are going to RV. Wouldn't they just have done it and revealed it after the fact? I think something is getting lost in translation.

Or they r running low on USD so they bring out a story they r going to Rv and what happens they have a run on there worthless money and get USD for it now they have more real money Imo and go RV.

[zigmeister]

Thanks for not spoiling the mood, Keep, and for not typing "isent" again. Drives me nuts! And, yes, you know well my position on these articles. They will lie all day long in an article.

If that is the case in your none-too-esteemed view, then sell me your "lots" of dinar, lotsofdinar.

:lol:

[truthful1]

the reason why they could announce this is because they are not printing anymore dinar in its current 000 state.

so for them to announce this wouldn't matter, they sucked enough dinar back in to the central bank to the point that there comfortable, so cbi knows what they will be on the hook for.

the dinar that is out is out, they will not get any u.s dinar back, since all it does here in the states is go from speculator to speculator when one sells.

plus all they did is what they always do, they identify a problem, then it takes forever for them to act on it.

moving the rate to 1000-1 doesn't do iraq any good, there next move will be an actual rv, or redenominate (which at this point is very unlikely)

It doesnt make since to announce a rv, if its going to truly be a significant one. because today lets pretend, i order a billion dollars in dinar. the dinar dealer calls the trade bank of iraq to fill the order. the trade bank of iraq orders the balance from other banks and the cbi to fill the order. The order would be filled. So, why announce a significant rv?? The answer is, you dont. soi have a gut feeling, this movement thats to occur in the coming days, wont be signifcant. some will say, thats being negative. i dont care about positive or negative, im really trying to understand why they would say this. and, because 1000:1 has been tossed around in the media, thats the next movement i think we will see. being an economics expert, you know a run on the bank can ruin them.....ie..the bank of england....and the bank has a duty to honor the order.

Edited January 31, 2012 by truthful1

[nawty1]

It doesnt make since to announce a rv, if its going to truly be a significant one. because today lets pretend, i order a billion dollars in dinar. the dinar dealer calls the trade bank of iraq to fill the order. the trade bank of iraq orders the balance from other banks and the cbi to fill the order. The order would be filled. So, why announce a significant rv?? The answer is, you dont. soi have a gut feeling, this movement thats to occur in the coming days, wont be signifcant. some will say, thats being negative. i dont care about positive or negative, im really trying to understand why they would say this. and, because 1000:1 has been tossed around in the media, thats the next movement i think we will say. being an economics expert, you know a run on the bank can ruin them.....ie..the bank of england.

who is saying that the trade bank is still selling iqd?

why would they still be selling iqd if they are buying it back, which has been stated in a handful of articles

why would iraq say they have 50 billion in there reserves, then 2 weeks later its at 90 billion.

i have seen them say they want there rate to be closer to the dollar, they said in 1 article they are discussing going to 1000-1, so your telling me that because that rate seems more negative, so that has to be the rate?

it sounds to me like you have it all figured out, so why would you be asking me questions?

[zigmeister]

It doesnt make since to announce a rv, if its going to truly be a significant one. because today lets pretend, i order a billion dollars in dinar. the dinar dealer calls the trade bank of iraq to fill the order. the trade bank of iraq orders the balance from other banks and the cbi to fill the order. The order would be filled. So, why announce a significant rv?? The answer is, you dont. soi have a gut feeling, this movement thats to occur in the coming days, wont be signifcant. some will say, thats being negative. i dont care about positive or negative, im really trying to understand why they would say this. and, because 1000:1 has been tossed around in the media, thats the next movement i think we will see. being an economics expert, you know a run on the bank can ruin them.....ie..the bank of england....and the bank has a duty to honor the order.

I suspect 1000 to 1 is the next possible rate. My question is then what will come next. However it is also possible, by the implication of 1000:1 not many are going to buy Dinars on such low rise. Especially if it implied that is far as the increase will go for now. People will sell their dinar thinking that is all they will be able to make on the investment. More dinar pulled in. CBI makes some cash on the spread. But one day out of the blue we could see a surprise RV of much higher value.

[Stryker365]

Article from September.......

As the committee said the parliamentary Iraq Ghaderaly improve the status of the dinar and adopt it as part of international reserves, as Iraq has more than (80 to 90) billion reserve at the central bank and this is positive for the benefit of the Iraqi dinar.

Link;

http://************.com/2011/09/04/expert-for-the-citizen-the-iraqi-dinar-will-recover-after-the-lifting-of-the-zeroes-and-reduce-the-price-of-the-dollar/

[truthful1]

who is saying that the trade bank is still selling iqd?

why would they still be selling iqd if they are buying it back, which has been stated in a handful of articles

why would iraq say they have 50 billion in there reserves, then 2 weeks later its at 90 billion.

i have seen them say they want there rate to be closer to the dollar, they said in 1 article they are discussing going to 1000-1, so your telling me that because that rate seems more negative, so that has to be the rate?

it sounds to me like you have it all figured out, so why would you be asking me questions?

I have nothing figured out. in a nutshell, they arent in the slightest bit trying to stop or curve speculation. If the last few years of deleting the three zeroes articles were to confuse speculators, they threw all that right out the window with this article. there are still millions of people who can still buy millions of dinar today. the cbi knows the u.s. citizens hold tons of dinar, and can still buy as much as they want. if the dinar market was drying up or harder to get, id understand them not caring about an announcement. To me, somethings not adding up, but we shall see in the coming days.......stayed tuned

[JWJW11]

It doesnt make since to announce a rv, if its going to truly be a significant one. because today lets pretend, i order a billion dollars in dinar. the dinar dealer calls the trade bank of iraq to fill the order. the trade bank of iraq orders the balance from other banks and the cbi to fill the order. The order would be filled. So, why announce a significant rv?? The answer is, you dont. soi have a gut feeling, this movement thats to occur in the coming days, wont be signifcant. some will say, thats being negative. i dont care about positive or negative, im really trying to understand why they would say this. and, because 1000:1 has been tossed around in the media, thats the next movement i think we will see. being an economics expert, you know a run on the bank can ruin them.....ie..the bank of england....and the bank has a duty to honor the order.

LMAO....the trade bank is selling you iqd....you go buy some today and its coming from a dealer or speculator....NOT THE TRADE BANK....cmon your wayyy smarter than this

[truthful1]

LMAO....the trade bank is selling you iqd....you go buy some today and its coming from a dealer or speculator....NOT THE TRADE BANK....cmon your wayyy smarter than this

Just an example. i dont know exactly where it comes from, i dont claim expert status. just testing a theory. in fact, i had the same question as someone else

Edited January 31, 2012 by truthful1