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Depletion of foreign currency in Iraq


yota691
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Depletion of foreign currency in Iraq

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Posted 22/03/2012 05:35 AM

BAGHDAD / follow-up to the East: Economic Commission warned by MP / coalition in Iraq / Nora Albjara process of depletion of the hard currency of the country as a result of the deterioration of the Syrian pound against the U.S. dollar, will affect the exchange rate of the Iraqi dinar against international currencies. The Albjara (of the Agency news) on Wednesday: The low exchange rate of the Syrian pound against the U.S. dollar will lead to the withdrawal of foreign currency from local markets in favor of Syria, as happened recently when the deterioration of Altoman Iran to the U.S. dollar, and this will affect the value of foreign currency in Iraqi markets and the low exchange rate of the dinar against the dollar. It called for: the importance of taking necessary measures to prevent the occurrence of smuggling foreign currency out of the country through the control of Iraq's border with neighboring countries to reduce the appearance of such cases, in addition to the central bank should take a role in controlling the sale of the dollar Bmzadeh fact that the process will lead to increase the demand on the U.S. Dollar. She Albjara: can not make the deterioration of the currencies of the countries surrounding Iraq to receive negative impact on the Iraqi dinar, but we must work to increase the exchange rate of the Iraqi currency through the sale of crude oil in Iraqi dinars, as Iran is now selling some of its oil own currency, which saved Altoman Iranian deterioration in front of hard currency. The exchange rate of the Syrian pound has dropped significantly against the U.S. dollar as a result of political and security problems taking place in all regions of Syria, which has made ​​the U.S. dollar is equivalent to (7.5) for the SP.

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We've been hearing about their foreign reserves being tapped into and the solution for a while now. Obviously they've gone this long without implementing their solution, how much longer can they keep it up is the million dollar question.

I was thinking the same thing, they must not be into much of a bind, to keep on dragging this out!! Who knows!! They only went threw 2 Billion last month!! That all!! :D

Edited by yota691
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GM and thanks Yota. Now they are talking Syria. Well they already are doing border checks and have refused to let commercial trucks through. People yes, trucks no. This tells me again that the exchange rate should be higher than a dollar if the economic sanctions plan continues. Otherwise they are still able to conduct commerce at a profitable rate. Just my 2 cents. :)

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This is just a case of them setting the stage for changing the petro-currency from the dollar to the dinar. In order to justify this to the rest of the world, they first throw up a black flag by pointing out a problem that either don’t exist, or is so minor that it is of no real consequence. Then they overstate the situation and blow it out of proportion. After they have raised enough attention to the problem, they offer a solution that not only solves the problem but is in their own best interest. The timing is perfect; right before the Summit, where they can present this to the rest of the Arab world and garner their support. Any foreign currency that might be taken out of the country is currency that is in the hands of individuals and not in their reserves. Therefore, it would have no bearing on the value of their own currency. They have not only been talking about increasing the value of the dinar, but also decreasing the value of the dollar. This works really well for them. Changing the Petro-currency not only sets the stage to RV the dinar, but it will significantly reduce the value of the dollar to the rest of the world and assists in de-dollarizing Iraq. It bodes well for our investment, but not for the American economy. Don’t get me wrong, I want this RV as much as anyone here. But, in the long run, I am not sure what the “fallout” will be. Perhaps someone here with a little more education than I’ve got can offer their opinion on this. Hopefully, I am looking at it all wrong.

Roadrunner

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This is just a case of them setting the stage for changing the petro-currency from the dollar to the dinar. In order to justify this to the rest of the world, they first throw up a black flag by pointing out a problem that either don’t exist, or is so minor that it is of no real consequence. Then they overstate the situation and blow it out of proportion. After they have raised enough attention to the problem, they offer a solution that not only solves the problem but is in their own best interest. The timing is perfect; right before the Summit, where they can present this to the rest of the Arab world and garner their support. Any foreign currency that might be taken out of the country is currency that is in the hands of individuals and not in their reserves. Therefore, it would have no bearing on the value of their own currency. They have not only been talking about increasing the value of the dinar, but also decreasing the value of the dollar. This works really well for them. Changing the Petro-currency not only sets the stage to RV the dinar, but it will significantly reduce the value of the dollar to the rest of the world and assists in de-dollarizing Iraq. It bodes well for our investment, but not for the American economy. Don’t get me wrong, I want this RV as much as anyone here. But, in the long run, I am not sure what the “fallout” will be. Perhaps someone here with a little more education than I’ve got can offer their opinion on this. Hopefully, I am looking at it all wrong.

Roadrunner

The Fall out should be RV, cash out, and start drilling are own Dang Oil. JMO :D and Nice Breakdown!! +1

Edited by yota691
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If they were to RV 1:1 and immediately announce that all oil sold would be in dinar, there would be no reason to worry about your post RV investments. You just hang on to whatever dinar you haven't cashed, and watch it triple (at least!) within two years, maybe sooner.

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If they were to RV 1:1 and immediately announce that all oil sold would be in dinar, there would be no reason to worry about your post RV investments. You just hang on to whatever dinar you haven't cashed, and watch it triple (at least!) within two years, maybe sooner.

at 1 to 1 they will get one maybe 2 of my 25,000 back, and I 'll chill to the end of the year :D

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This is just a case of them setting the stage for changing the petro-currency from the dollar to the dinar. In order to justify this to the rest of the world, they first throw up a black flag by pointing out a problem that either don’t exist, or is so minor that it is of no real consequence. Then they overstate the situation and blow it out of proportion. After they have raised enough attention to the problem, they offer a solution that not only solves the problem but is in their own best interest. The timing is perfect; right before the Summit, where they can present this to the rest of the Arab world and garner their support. Any foreign currency that might be taken out of the country is currency that is in the hands of individuals and not in their reserves. Therefore, it would have no bearing on the value of their own currency. They have not only been talking about increasing the value of the dinar, but also decreasing the value of the dollar. This works really well for them. Changing the Petro-currency not only sets the stage to RV the dinar, but it will significantly reduce the value of the dollar to the rest of the world and assists in de-dollarizing Iraq. It bodes well for our investment, but not for the American economy. Don’t get me wrong, I want this RV as much as anyone here. But, in the long run, I am not sure what the “fallout” will be. Perhaps someone here with a little more education than I’ve got can offer their opinion on this. Hopefully, I am looking at it all wrong.

Roadrunner

Good analysis!

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This is just a case of them setting the stage for changing the petro-currency from the dollar to the dinar. In order to justify this to the rest of the world, they first throw up a black flag by pointing out a problem that either don’t exist, or is so minor that it is of no real consequence. Then they overstate the situation and blow it out of proportion. After they have raised enough attention to the problem, they offer a solution that not only solves the problem but is in their own best interest. The timing is perfect; right before the Summit, where they can present this to the rest of the Arab world and garner their support. Any foreign currency that might be taken out of the country is currency that is in the hands of individuals and not in their reserves. Therefore, it would have no bearing on the value of their own currency. They have not only been talking about increasing the value of the dinar, but also decreasing the value of the dollar. This works really well for them. Changing the Petro-currency not only sets the stage to RV the dinar, but it will significantly reduce the value of the dollar to the rest of the world and assists in de-dollarizing Iraq. It bodes well for our investment, but not for the American economy. Don’t get me wrong, I want this RV as much as anyone here. But, in the long run, I am not sure what the “fallout” will be. Perhaps someone here with a little more education than I’ve got can offer their opinion on this. Hopefully, I am looking at it all wrong.

Roadrunner

You couldn't have put a better emphasis on the planned collapse of the dollar. I can see the IMF and the world bank cheering this move on, as well as those who control the banking system. You cannot bring in a new WORLD currency if Oil is still considered the Petro Dollar. With Other super powers calling for a replacement to the dollar as the worlds reserve, this action Iraq may pull will only be another fallin chest piece in this End Game.

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You couldn't have put a better emphasis on the planned collapse of the dollar. I can see the IMF and the world bank cheering this move on, as well as those who control the banking system. You cannot bring in a new WORLD currency if Oil is still considered the Petro Dollar. With Other super powers calling for a replacement to the dollar as the worlds reserve, this action Iraq may pull will only be another fallin chest piece in this End Game.

LS1Hawk,

Apparently we are thinking along the same lines. I usually steer clear of the conspiracy side of things because in my line of work it is not good to be stamped with that brand. Be that as it may, I am smart enough to realize that everyone we rub elbows with at state dinners and such, is not necessarily our friend or our ally. Most of the Middle Eastern countries recognize that we are the biggest threat to their way of life. They would like nothing more than to eliminate that threat. If they can spin this in such a way as to not only help themselves, but hurt us in the process then they will band together on it.

Roadrunner

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at 1 to 1 they will get one maybe 2 of my 25,000 back, and I 'll chill to the end of the year :D

I'm the same way, I plan on holding out as long as I can. The only problem I see with that is the amount of time we'll have until the larger notes are void, thus raising the argument for lower denominations...

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This is just a case of them setting the stage for changing the petro-currency from the dollar to the dinar. In order to justify this to the rest of the world, they first throw up a black flag by pointing out a problem that either don’t exist, or is so minor that it is of no real consequence. Then they overstate the situation and blow it out of proportion. After they have raised enough attention to the problem, they offer a solution that not only solves the problem but is in their own best interest. The timing is perfect; right before the Summit, where they can present this to the rest of the Arab world and garner their support. Any foreign currency that might be taken out of the country is currency that is in the hands of individuals and not in their reserves. Therefore, it would have no bearing on the value of their own currency. They have not only been talking about increasing the value of the dinar, but also decreasing the value of the dollar. This works really well for them. Changing the Petro-currency not only sets the stage to RV the dinar, but it will significantly reduce the value of the dollar to the rest of the world and assists in de-dollarizing Iraq. It bodes well for our investment, but not for the American economy. Don’t get me wrong, I want this RV as much as anyone here. But, in the long run, I am not sure what the “fallout” will be. Perhaps someone here with a little more education than I’ve got can offer their opinion on this. Hopefully, I am looking at it all wrong.

Roadrunner

All the more reason for Iraq to RV over 1:1. IMHO, Roadrunner is dead on with his theory. Things are falling into place.

The GoI closing just about everything down for at least three days.

The Arab League Summit to commence next week.

Iran and Syria contributing to the de-dollarization of Iraq.

Repeated expressed intent to RV +/-1:1.

The intentions to replace the petro-dollar with the Petro-dinar.

The constant bombardment of "educational" material of the dinar for the people of Iraq. BTW, I like how they cited the Marshall Plan so eleoquently. But one wonders, "Didn't the Marshall Plan leads us into the Cold War"? IJS.... <whistle, whistle, whistle>

The mutual dislike of "the West" manifesting in the intent to use the economy (oil) as their weapons of choice. (They may not like each other but the sure as heck don't like the US).

Personally speaking, if these components are true, then a gradual cash out may be in order. However, I would look at the global situation and make an educated guess on that strategy when the time comes. Personally, I'd like for them to RV around 2:1 (after taxes and spread which might be closer to the 2.50 mark) and I'm all out from jump!!! LOL!!!!

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