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Member of the economy: the central bank can make the dollar equivalent of (1000) JD requirement to change its current policy


yota691
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Member of the economy: the central bank can make the dollar equivalent of (1000) JD requirement to change its current policy

On: Saturday 26/05/2012 10:34

Baghdad (news) .. According to a member of the Committee of Economy and Investment MP / block Iraqi white / Aziz Mayahi, the ability of the central bank to make one dollar is equal to (1000) Iraqi dinars, the requirement to change its monetary policy current, and described as "wrong" and need to re-examine them.

said Mayahi (of the Agency news news) on Saturday: The central bank was able to reduce the value of the U.S. dollar against the Iraqi dinar and make the exchange rate is equivalent to (1000) dinars, because of the financial reserve a large estimated at more than (62) billion dollars. He added that the current monetary policy pursued by the Bank Central "wrong" and need to be reconsidered, because the continuation of work out will harm the public money, especially in the recent period when it rose the value of the dollar significantly against the dinar because of the promotion of transactions and fake by speculators led to the smuggling of large amounts of hard currency abroad, laden with the responsibility of the the Central Bank. He pointed out: that the central bank governor has promised to reduce the exchange rate of the dollar against the dinar after (6) months from now to make one U.S. dollar equivalent of (1000) dinars, when it was hosted by the Economic Commission representative, pointing out that they process is not Balsabh and can be achieved . / Finished / 8. d. Q /

http://www.ikhnews.com/news_view_43354.html

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Six months from now. I am sure they are not good for this. 1000 to 1.00 is their goal it appears. However not everyone on the economic committee agrees with this ratio and or policy. Interesting no mention of zero's being murdered. So this makes me wonder if they are now in discussions on dinar exchange rate with the 0's?

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1000 dinar to 1 dollar then drop the zeros ?

This is always what I thought they would do. Making it 1 to 1 and thus making it easier for the citizens to stop using the dollar and adjust to the change.

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IMHO,

The CBI can do all the rate changes it wants but unless the dinar is COMPARABLE to the USD, the local Iraqi citizen won't let go of it. Granted, when the CBI starts taking in more dollars and releasing only dinars, there could be a shift but it's not likely that a local Iraqi citizen is going to want to have to carry a brief case full of IQD to but groceries. That just spells socio-economic unrest. But then I'm sure that all the commitees and forums they've had already pointed these things out...

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IMHO,

The CBI can do all the rate changes it wants but unless the dinar is COMPARABLE to the USD, the local Iraqi citizen won't let go of it. Granted, when the CBI starts taking in more dollars and releasing only dinars, there could be a shift but it's not likely that a local Iraqi citizen is going to want to have to carry a brief case full of IQD to but groceries. That just spells socio-economic unrest. But then I'm sure that all the commitees and forums they've had already pointed these things out...

well not only that is that will create a black market no matter how much the CBI thinks they have gotten U.S dollars off the streets it will create a demand if its not on Par when they introduce the first class of LD's which i believe will happen by september sometime.

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I ran the JD through other translators and it means "equates dinar". One translated to KWD. I don't think it has anything to do with a comparison to the Jordanian dinar. :)

IMHO,

The CBI can do all the rate changes it wants but unless the dinar is COMPARABLE to the USD, the local Iraqi citizen won't let go of it. Granted, when the CBI starts taking in more dollars and releasing only dinars, there could be a shift but it's not likely that a local Iraqi citizen is going to want to have to carry a brief case full of IQD to but groceries. That just spells socio-economic unrest. But then I'm sure that all the commitees and forums they've had already pointed these things out...

Decreasing the supply of dollars will appreciate the dollar against the IQD - depreciating the IQD. That has been the case with dollars moving across the borders of Iran and Syria - decreasing the supply of dollars in Iraq causing an appreciation of the dollar due to demand.

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to increase the value of its currency .. ,, iraq would need enough foriegn reserve funds to cover any and all of their exchanges if everyone wanted to cash in their dinars....say 4 trillion dinars hit the cbi for exchange to dollars .. and the cbi had only 62 billion dollars .. they would go belly up because they only have 62 billion dollars worth of foreign reserves... so everything over and above the 62 billion would instantly be devaluing exactly what was just increased in value .. back to square one ..1000 dinars for a dollar... or am i missing something here ..like ,,,,oh ya you only get one new dinar for 1000 of the old ones .. .. i forgot about that again,, i was getting high on that dollar for dinar thingy again and forgot the rest of the story of this zero deletion thingy .. ok then ... never mind anything that doesnt add up

revaluing a currency to a higher rate .. is not an easy thing to do ..or every third world country would do it

dag gon it

right now they could rv to around 2 cents and cover all the dinars out there

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Leesburg, how does the IQD held in reserve in other central banks, and American private citizens held IQD, work into your equation of two cents? I am not sure if we have a definitive answer, but many have said that when cashed in, our IQD will be held electronically and used for reserves here in the US. Thoughts? Thanks.

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Leesburg, how does the IQD held in reserve in other central banks, and American private citizens held IQD, work into your equation of two cents? I am not sure if we have a definitive answer, but many have said that when cashed in, our IQD will be held electronically and used for reserves here in the US. Thoughts? Thanks.

that would be fantastic if that happened ,, last year at this time iraq was traveling the globe setting up bi lateral agreements .. i was hoping thats what they were doing .. as far as my guess as to the value .. my calculator was not big enough to handle all the zeros .... i was just devideing 60 billion dollars in reserves .. 60 billion dollars by 30 trillion dinars .. i got 1.2 something .. that could be where the 1200 dinars for a dollar rate comes in right now .. that figure i gave could be wrong ..sorry ..

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to increase the value of its currency .. ,, iraq would need enough foriegn reserve funds to cover any and all of their exchanges if everyone wanted to cash in their dinars....say 4 trillion dinars hit the cbi for exchange to dollars .. and the cbi had only 62 billion dollars .. they would go belly up because they only have 62 billion dollars worth of foreign reserves... so everything over and above the 62 billion would instantly be devaluing exactly what was just increased in value .. back to square one ..1000 dinars for a dollar... or am i missing something here ..like ,,,,oh ya you only get one new dinar for 1000 of the old ones .. .. i forgot about that again,, i was getting high on that dollar for dinar thingy again and forgot the rest of the story of this zero deletion thingy .. ok then ... never mind anything that doesnt add up

revaluing a currency to a higher rate .. is not an easy thing to do ..or every third world country would do it

dag gon it

right now they could rv to around 2 cents and cover all the dinars out there

Only if they have 600 billion in reserves. Currently they have enough to cover at 0.002 per dinar

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that would be fantastic if that happened ,, last year at this time iraq was traveling the globe setting up bi lateral agreements .. i was hoping thats what they were doing .. as far as my guess as to the value .. my calculator was not big enough to handle all the zeros .... i was just devideing 60 billion dollars in reserves .. 60 billion dollars by 30 trillion dinars .. i got 1.2 something .. that could be where the 1200 dinars for a dollar rate comes in right now .. that figure i gave could be wrong ..sorry ..

Thanks, Leesburg. I appreciate your input, one way or the other. B)

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I think what you are not taking into your reasoning is that the CBI has been taking in lots and lots of Dinar out of ciculation. Last article i seen on this stated that they, I believe, had recovered 85% of the Dinar that was in circulation. Now, I agree that the other countries Central Banks will hold the Dinar they take in to do business over a period of time, they will not cash all they have at once. This I beieve is a standing agreement between the other countries and Iraq to make the RV be achievable. It is impossible for anyone but the CBI to know exactly how much Dinar is still out in circulation and being held by other countries. It is not possible to even make a statement to say how much of an RV they can handle without putting the economy of Iraq in jeapordy. My advice is, sit back, read the articles, belive what you choose and throw the rest out of your brain before you go crazy. Just my thought on this.

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What about that $800 millon plus account they "found". Would that be included in their reserves?

Even if it was not included and added. 800 million would only increase the value of 30 trillion dinar by 0.000026 cent per dinar. Now if they found a few trillion somewhere then we'd have something. :tiphat::cigar:

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Even if it was not included and added. 800 million would only increase the value of 30 trillion dinar by 0.000026 cent per dinar. Now if they found a few trillion somewhere then we'd have something. :tiphat::cigar:

With fractional banking they only need the oil in the ground to back the Dinar.

They now have double the cash reserves necessary to fully back the Dinar.

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With fractional banking they only need the oil in the ground to back the Dinar.

They now have double the cash reserves necessary to fully back the Dinar.

And that is just the beginning of it. Trust me they can more than cover a 1-1 RV. Many think they have a spin on the numbers and the numbers are a single of many factors needed to RV ! Yet, all the info is still fun to read. Always know they will do what is in their best interest, and this means for trade and confidence in their currency. LOP's wont do that... ALSO WE ARE A VESTED INTEREST! Which is why they hold currently so much USD. They are very entrenched with us. We will all do very well WHEN EVER THEY CHOOSE TO FINALLY DO WHAT IS EMINENT.

Peace <_<

Edited by imgesing
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Six months from now. I am sure they are not good for this. 1000 to 1.00 is their goal it appears. However not everyone on the economic committee agrees with this ratio and or policy. Interesting no mention of zero's being murdered. So this makes me wonder if they are now in discussions on dinar exchange rate with the 0's?

SHHHHH!! Dont give them any ideas!! Let them continue talking about changing their policy and making these small jumps WITHOUT talkin about those cursed zeros!! laugh.gif

This is exactly what we wanna see.......(so far)

The last report I saw stated that the CBI has taken in 70% of the dinar issued. If I'm not totally confused, they only have to have reserves to support the outstanding balance.... :confused2:

The only report I know of (and that people keep repeating in regards to why they feel the CBI is and has been pulling in dinar) is talking about them removing 70% of the excess liquidity but if you read further in that report/article, it tells you that what they did with that money was cycle it right back into the banking system for loans/financing and such...

With fractional banking they only need the oil in the ground to back the Dinar.

They now have double the cash reserves necessary to fully back the Dinar.

Fractional banking isnt about backing the value of their currency....has nothing to do with a central bank really....

Its used by commercial banks for loaning purposes....

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