Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

The end of the LOP threory


Recommended Posts

After reading part of the document on the below link. I must conclude that the IMF will not allow Iraq deleting the three zeros. Therefore, LOP is out the sight.

http://www.imf.org/external/pubs/ft/scr/2010/cr1072.pdf

So I don't have to try and find the "part of the document" you read. Why do you feel this way? It looks like this report is based on discussions they had @ multiple times and locations from last year.

Link to post
Share on other sites

once again, this document has been posted, reviewed and discussed in a previous thread.

32. The lack of data and large structural changes in the Iraqi economy preclude any

meaningful estimation of the equilibrium real exchange rate. A very crude assessment

suggests that the dinar is broadly in line with fundamentals.4 With the drop in oil prices, it

appears that a possible prior undervaluation has disappeared, and that the dinar could even be

somewhat overvalued. The relative low levels of headline and core inflation, however, do not

suggest any significant deviation from the equilibrium real effective exchange rate.

Moreover, as oil revenues are expected to rise substantially over the medium- to longer term,

the equilibrium real exchange rate is likely to rise as well. More importantly, a nominal

depreciation could undermine confidence in the dinar, destabilize expectations, lead to

increased dollarization, and reignite inflation, reversing the hard-won gains made in recent

years. The CBI therefore intends to continue to keep the exchange rate stable, but will

consult with staff if its reserves were to fall significantly below the program targets..

55. Staff supports the CBI’s intention to continue to manage the exchange rate with

a view to keeping inflation under control. Although difficult to assess, the exchange rate

appears to be broadly in line with fundamentals, taking into account the expected increase in

oil production. Moreover, a strong and stable currency provides a solid anchor for the

public’s expectations. The CBI should continue to keep a close watch on inflation and be

ready to raise the policy interest rate if core inflation were to pick up again.

http://www.imf.org/external/pubs/ft/scr/2010/cr1072.pdf

The problem with this document, in my opinion is that in one paragraph it reads like a LOP, in the next it could be an RV... Personally I just can't make heads or tails of it.

Link to post
Share on other sites

After reading all 90+ pages i have concluded the following. The IMF and Iraq have agreed to keep the inflation rate down by maintaining a stable interest rate and stable exchange rate. No changes to the Iraqi exchange rate. That does not mean they will not re-denominate their currency to ease exchange of good and services and LOP us all. Since the inflation rate is the key factor here, I do not see any RV/RI in the near future. Unless Oil price increase during 2010 I do not see any movement. I do not know where our fellow investors got the RV deadlines that the IMF or UN have suppose to have set. It was not mentioned in this document. I truly hope I am wrong about the RV, I am heavily invested in Dinars. I'm tired of the Smoke and Mirrors analysis of CBI reports and statements, trying to read something into the statement that is clearly not there. I rely on the hope that the translations are screwed up and that an active misinformation policy is in place. Thanks for the post. This post is what I like to see! Thanks Rafy!

Link to post
Share on other sites
I agree that it does seem to rule out a lop (specifically in the 2010/2011 plan), but it also seems to rule out an RV.

wanted to add to my original post. short6 may have given me the only slight hope available. If this is in fact mis-direction (I'd say it's a small chance), then we might see an RV in my lifetime.

Link to post
Share on other sites

17. With the easing of inflationary pressures, monetary and exchange rate policies

have been relaxed. The CBI gradually reduced the policy interest rate to 7 percent in May

2009. The CBI also moved from a policy of allowing the Iraqi dinar to gradually

appreciate—the dinar strengthened by 20 percent vis-

Link to post
Share on other sites

Look if there was a LOP there would be talk about LEGISLATION because they have to make this a LAW FIRST!!!!!!

SECOND, what INFLATION? okay....THERE IS only 7%. COUNTRIES WITH HIGH INFLATION LOP! IRAQ IS NOT THIS. Look back on those articles, how concerned is cbi about that inflation?

THIRD, IS this Dinar not FIAT MONEY?

http://www.investopedia.com/terms/f/fiatmoney.asp

What Does Fiat Money Mean?

Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.

OKAY Enough comparing reserves and M2....Look at our own Federal Reserve do we even know what the M2 and what our reserves are? What makes a dollar a dollar? Dont you think thats the same thing they are going to pull with this Dinar? Fiat Money is based soley on faith. The Faith that Iraq has a lot of oil, possibly more than Opec combinded considering some of their neighbors and the side drilling that could have been going on. The faith that US Armed forces are here backing this country up, we are not leaving this place until IRaq is confident they can do this, I read maliki and allawi say they would probably ask the US to stay. The faith that this country will come together and rebuild because of our efforts, were having to fight Iran and IRan's influence, we people have no idea. The world is putting faith into this, as long as everyone agrees to exchange the dinar at the determined value then it will work. FIAT

Somoene tell me I'm wrong and provide an intelligent response please

Link to post
Share on other sites

They are ready for a RV/RI..........Inflation rate is at 6%; interest rate is at 7%......These two things have been going down for the last three years...When inflation rates and interest rates are low, the value of a currency is high....That's how it works!!

Link to post
Share on other sites

Do you know which banks in the US you can buy dinar from. I have called Chase, Wells, and others and they all say the country is on the blocked country list and they cannot sell dinar. Which banks can I get these from and is it cheaper to get from the banks or just buy from one of the web sellers?

Link to post
Share on other sites

My understanding is that LOPs are generally applied to currencies suffering from mega-inflation - not applicable to Iraq.

Also, the recent LOP experience in North Korea is likely to scare the **** out of anyone with half a brain!

Regards

GrahamB

Link to post
Share on other sites
Do you know which banks in the US you can buy dinar from. I have called Chase, Wells, and others and they all say the country is on the blocked country list and they cannot sell dinar. Which banks can I get these from and is it cheaper to get from the banks or just buy from one of the web sellers?

You might find some good information in the forum subsection Buy/Sell Dinar.

Link to post
Share on other sites

Well, one thing we know for sure, post about "lop" and peeps will read, including moi. ;)

This topic is like the energized battery rabbit ... just keeps on going and probably will until the end of time! :lol:

John125 posted what I thought was a good explanation, so if you are reading here you might find her post enlightening: :bulb:

http://dinarvets.com/forums/showthread.php?15581-Redenomination-and-Exchangeability-From-Another-Site&highlight=redenomination

Link to post
Share on other sites
Guest
This topic is now closed to further replies.
  • Recently Browsing   0 members

    No registered users viewing this page.



  • Testing the Rocker Badge!

  • Live Exchange Rate

×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.