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Saleh: Dinar is covered heavily by $60B in foreign reserves; Goal is to be equal to the dollar

JustNTime

By JustNTime,
in Iraq & Dinar Related News

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zigmeister Newbie

zigmeister

Posted
Posted

Very good find and IMO, very important information here.

"He explained: that the dinar covered in hard currency at a rate of more than (100%), and this rare condition, and has a cash reserve large hard currency than for (60) billion dollars retained by the face of difficult circumstances that may occur in the country, giving the power of the dinar against foreign currency."

I am going to take a stab at this:

1. All Dinar notes are covered over 100% (Rare condition = Undervalued)

2. Plus

3. Cash reserve of 60 Billion Dollars for the sole purpose of difficult circumstances

4. Giving the power of the Dinar against foreign currency = It may be as strong as the Dollar

now but not reflected yet.

"Commended the deputy governor of the Central Bank of the appearance of Mohammed that the dinar covered in hard currency by more than (100%) and not fear him from the vagaries of currencies of neighboring countries."

va·gar·y

   [vuh-gair-ee, vey-guh-ree] Show IPA noun, plural -gar·ies. 1. an unpredictable or erratic action, occurrence, course, or instance: the vagaries of weather; the vagaries of the economic scene. 2. a whimsical, wild, or unusual idea, desire, or action.

Here he must be talking about Iran, Siria and neighboring countries. Perhaps how some of these currencies devaluations, due to sanctions, are not affecting the strength of the Iraqi Dinar.

"He pointed to: that the goal of central bank policy at the moment is the stability of the exchange rate of the dinar against the U.S. dollar, but our goal in the long run be equal to it being a process needs a strong economy and inflation is low and a cash reserve large"

1. Policy at the moment is the exchange rate of the Dinar for the Dollar.

2. Long run goal is 1:1

3. Need a strong economy

4. Low inflation (I have a problem with this one)

5. Large cash reserve

"Jubouri said in an earlier statement (the news): The approach undertaken by the Bank Central retention rate of the dinar against the dollar during the current indication that monetary policy in the country able to make the dinar equivalent of the U.S. dollar."

The Central Banks retention rate = Indications that the CBI has been taking the higher notes off the markets.

The CBI, under its current monetary policy, has the power to make the Dinar and the Dollar 1:1

In conclusion:

All the Dinars that are in circulation are covered by over 100% which means it can be revalued and adjusted to the right percentage. The 60 billion dollars in the reserve are extra and are not being counted to cover the Dinar. If all the numbers were in place, correctly the value of the Dinar could be just as strong as the Dollar. The mention of a strong economy is very important. Right now, the GOI is trying to establish better economic reform to allow investments in Iraq with less red tape and guarantees. The low inflation is the kicker. I am willing to bet that there are at least 2 prices for every commodity in Iraq right now, one in Dollars and one in Dinars and the gap has to be very big. The Dollars are running out on the streets of Iraq, purposely done by the CBI to dedollarize the country but this phenomenon is also making commodities more expensive to buy since Dinars are in the play now. Inflation is going to shoot through the roof if the CBI does not adjust the Dinar accordingly and closes the gap to the Dollar. I see a small RV on the way very shortly to adjust the gap. I see the real RV shortly after, perhaps once the GOI passes the budget, specially if the budget reads in Dollars and not Dinars. Simultaneously, the RV and the Budget can run together once it is affirmed and becomes law. Remember folks, this is my pure opinion and observation with this important article. Thank you for your find and post. GLTA and Go RV.

Great post Tamiflyer. I admire your ability to work through some of these posts and come up with some interesting scenarios and possibilities. Thanks.

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tamiflyer Newbie

tamiflyer

Posted
Posted

Great post Tamiflyer. I admire your ability to work through some of these posts and come up with some interesting scenarios and possibilities. Thanks.

Thanks Zig. I just find that some of these articles are done with the intent to teach and others with the intent to confuse. Iraqis, in general, are very bright people and I find it hard to believe that even through software translations, the content would be distorted so much as to not make any sense. It is to the best interest of the CBI to give out enough information to satisfy the UN, IMF, WB, ect but at the same time, give out enough information to confuse the rest of the world. It's a good scheme and the plan is working. If it wasn't for a website like DV, people would not even know what a Dinar is and what its potential value might store. Thank you for your kind words. GLTA and Go RV.

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Shick Newbie

Shick

Posted
Posted

If they wait for 2yrs to RV their economy would be in shambles, there must be some symbolic meaning to the two yrs remark, or am I dreaming that I just read this. The state of the Iraqi economy is and should be on the first meeting agenda, but you see from the readings that it isn't. Look up! Leaders Perk-up! and find a way to help from within and without will follow suit. GO RV GO! :rolleyes:

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Nelg Newbie

Nelg

Posted
Posted

Well done, Tamiflyer! You did an excellent appraisal of the article. And, I know that it was an opinion.

If they have enough to cover the dinar by 100% then two things are possible:

1. They have removed enough from the market place which would allow them to cover an RV. Let's say the have removed from the street the allusive 30 Trillion Dinar or at least cut it to 15T. That means that they have at least 16T dinar in their coffers for an RV. IMO.

2. Or, if there is still the allusive 30T dinar on the street, then that would mean they have more than the 30T dinar to cover an RV.

The $60B in their possession is to handle difficulties that arise in the budget, GOI, etc. (IYO and IMO).

If this is the case, all of the funds are in place and we could RV at any point in time. What they are waiting for are the HCL and the laws that control international commerce.

Will be an interesting Monday.

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JustNTime Newbie

JustNTime

Posted
  • Author
Posted

Very good find and IMO, very important information here.

"He explained: that the dinar covered in hard currency at a rate of more than (100%), and this rare condition, and has a cash reserve large hard currency than for (60) billion dollars retained by the face of difficult circumstances that may occur in the country, giving the power of the dinar against foreign currency."

I am going to take a stab at this:

1. All Dinar notes are covered over 100% (Rare condition = Undervalued)

2. Plus

3. Cash reserve of 60 Billion Dollars for the sole purpose of difficult circumstances

4. Giving the power of the Dinar against foreign currency = It may be as strong as the Dollar

now but not reflected yet.

"Commended the deputy governor of the Central Bank of the appearance of Mohammed that the dinar covered in hard currency by more than (100%) and not fear him from the vagaries of currencies of neighboring countries."

va·gar·y

   [vuh-gair-ee, vey-guh-ree] Show IPA noun, plural -gar·ies. 1. an unpredictable or erratic action, occurrence, course, or instance: the vagaries of weather; the vagaries of the economic scene. 2. a whimsical, wild, or unusual idea, desire, or action.

Here he must be talking about Iran, Siria and neighboring countries. Perhaps how some of these currencies devaluations, due to sanctions, are not affecting the strength of the Iraqi Dinar.

"He pointed to: that the goal of central bank policy at the moment is the stability of the exchange rate of the dinar against the U.S. dollar, but our goal in the long run be equal to it being a process needs a strong economy and inflation is low and a cash reserve large"

1. Policy at the moment is the exchange rate of the Dinar for the Dollar.

2. Long run goal is 1:1

3. Need a strong economy

4. Low inflation (I have a problem with this one)

5. Large cash reserve

"Jubouri said in an earlier statement (the news): The approach undertaken by the Bank Central retention rate of the dinar against the dollar during the current indication that monetary policy in the country able to make the dinar equivalent of the U.S. dollar."

The Central Banks retention rate = Indications that the CBI has been taking the higher notes off the markets.

The CBI, under its current monetary policy, has the power to make the Dinar and the Dollar 1:1

In conclusion:

All the Dinars that are in circulation are covered by over 100% which means it can be revalued and adjusted to the right percentage. The 60 billion dollars in the reserve are extra and are not being counted to cover the Dinar. If all the numbers were in place, correctly the value of the Dinar could be just as strong as the Dollar. The mention of a strong economy is very important. Right now, the GOI is trying to establish better economic reform to allow investments in Iraq with less red tape and guarantees. The low inflation is the kicker. I am willing to bet that there are at least 2 prices for every commodity in Iraq right now, one in Dollars and one in Dinars and the gap has to be very big. The Dollars are running out on the streets of Iraq, purposely done by the CBI to dedollarize the country but this phenomenon is also making commodities more expensive to buy since Dinars are in the play now. Inflation is going to shoot through the roof if the CBI does not adjust the Dinar accordingly and closes the gap to the Dollar. I see a small RV on the way very shortly to adjust the gap. I see the real RV shortly after, perhaps once the GOI passes the budget, specially if the budget reads in Dollars and not Dinars. Simultaneously, the RV and the Budget can run together once it is affirmed and becomes law. Remember folks, this is my pure opinion and observation with this important article. Thank you for your find and post. GLTA and Go RV.

+1 to you and Neig both! th_smiley_two_thumbs_up.gif

Great analogies emot-worship.gif

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Carrello Rising Star

Carrello

Posted
Posted

I think CBI is building a new building they can't do both. So they best restructure the rate.

Geez, after seeing wavgg's numbers he came up with on the 13 dinar spread that CBI charges and the volume they have done in recent years, I think they can afford both, and they need to push the big red RV button. I might have to get one of the new Tesla Model X with the gull wings. B)

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SPRAYERDUDE Newbie

SPRAYERDUDE

Posted
Posted

and it was a member of the Finance Committee and the representative / National Alliance / Haitham Jubouri who said it may likely equal to the price of the Iraqi dinar against the dollar during the next biennium after the implementation of the project to delete three zeros from the Iraqi currency.

I am afraid this is not good news:(

If they raise the value after the deletion of three zeros...we maybe break even (in 2 years).

If the $60 Billion covers the 30 Trillion Dinar out, this also tells us it is not a RV at a dollar:( If it were they would need $30 Trillion to cover the RV.

Plus they say it will take up to 2 years to do so. I would think that means delete the zeros first,then the RV equals $.86 to slowly go up to a dollar in 2 years....so that means One Million Dinar equals $860...IMO

They have stated time and time again they are reducing the money supply down to 15 - 30 billion "now do the math"

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J769 Newbie

J769

Posted
Posted

Well done, Tamiflyer! You did an excellent appraisal of the article. And, I know that it was an opinion.

If they have enough to cover the dinar by 100% then two things are possible:

1. They have removed enough from the market place which would allow them to cover an RV. Let's say the have removed from the street the allusive 30 Trillion Dinar or at least cut it to 15T. That means that they have at least 16T dinar in their coffers for an RV. IMO.

2. Or, if there is still the allusive 30T dinar on the street, then that would mean they have more than the 30T dinar to cover an RV.

The $60B in their possession is to handle difficulties that arise in the budget, GOI, etc. (IYO and IMO).

If this is the case, all of the funds are in place and we could RV at any point in time. What they are waiting for are the HCL and the laws that control international commerce.

Will be an interesting Monday.

How does more dinar back up (cover) the dinar? If that's how it works why wouldn't Saudi Arabia print 50 trillion riyals, leave half of it in their CB, and be the wealthiest country on the planet?

They have stated time and time again they are reducing the money supply down to 15 - 30 billion "now do the math"

How can they reduce it to that if there's way more than that outside the country already?

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tamiflyer Newbie

tamiflyer

Posted
Posted

tamiflyer,

Can you expand on your statement (if all the numbers were in place....) so I can understand your meaning better. thx

"If all the numbers were in place, correctly the value of the Dinar could be just as strong as the Dollar."

It took me a little bit but I imported the spreadsheet from the CBI and Adjusted it a little bit so it would make sense. Mind you that the numbers I worked with were from 2006 until present. I could not get the other ones since the CBI has them as a Xerox copy and I can't grab those numbers unless I do them one by one but It won't be today. ;) However, here are some of the Dollars that have gone through the CBI, for one thing or another. There are definitely some numbers missing on my part (2005 and below) and plenty on their part (Lack of reporting.) The adjusted volume is according to the (000)USD that is on their spreadsheet.

They have said that they have over 60 billion Dollars, I believe it.

They have said that the Dinar has over 100% backing, I believe it.

They have said that they want to be the strongest currency in the region. I believe it.

Have they said everything that we need to know? No. Do they have to? No. Unless they are completely out of Chapter VII, we won't know for sure. Will they ever? Perhaps but not until they start reporting like the IMF, the WB and the UN wants them to do. Except for the numbers in the picture below, the rest are my most humble opinions. Thank you for your post. Enjoy. :)

GLTA and Go RV.

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Nelg Newbie

Nelg

Posted
Posted

How does more dinar back up (cover) the dinar? If that's how it works why wouldn't Saudi Arabia print 50 trillion riyals, leave half of it in their CB, and be the wealthiest country on the planet?

How can they reduce it to that if there's way more than that outside the country already?

Yep. I should have said USD instead of dinar. The amount to cover the 15T dinar would be $16T USD.

The amount to cove the 30T dinar would be $30T+ dollars.

Thanks for the correction.

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OregonHopeful Newbie

OregonHopeful

Posted
Posted

Can anyone pin point exactly when this biennium, or 2 year plan was first mentioned or supposedly began? Also is there something that actually lays out Phase 1, 2, or 3 or are we only speculating what they entail?

From my memory, it has been stated that Phase 1 has been completed and we are "in" Phase 2 (whatever that is). Also, we need to remember that they talk somewhat backwards to us so I belileve that when they say the dinar will equal the dollar after the deletion of the zeros, that they mean, the deletion of the zero's will "cause" the dinar to be equal to the dollar. (IMHO).

It has also been stated that this "phase" or project will be completed by 2013 (not begin in 2013).

I love articles like this and I feel we are very very close! :D

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daniel c Newbie

daniel c

Posted
Posted

He explained: that the dinar covered in hard currency at a rate of more than (100%), and this rare condition, and has a cash reserve large hard currency than for (60) billion dollars retained by the face of difficult circumstances that may occur in the country, giving the power of the dinar against foreign currency.

He pointed to: that the goal of central bank policy at the moment is the stability of the exchange rate of the dinar against the U.S. dollar, but our goal in the long run be equal to it being a process needs a strong economy and inflation is low and a cash reserve large [/font][/color]

and it was a member of the Finance Committee and the representative / National Alliance / Haitham Jubouri who said it may likely equal to the price of the Iraqi dinar against the dollar during the next biennium after the implementation of the project to delete three zeros from the Iraqi currency.

http://www.ikhnews.com/news_view_32720.html

Iraq 60 billion in surplus ... USA 12 trillion in debt

dinar should be 100 times that of USD

if common sense prevail in this modern world economic system

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