Arabic side of the Central Bank Of Iraq News and Announcements!!

[ALBUNDY]

Keepmwlknfny : " I havent heard of the dong redenominating yet...".. We hope this is a good sign. We just wait and see which one is going to pop first between Dong and IQD. Also, Do you have a confident that Indonesia Rupiah will lop?

[Goldiegirl]

Although I havent heard of the dong redenominating yet.....

Well then, your not in the "know"....

[keepmwlknfny]

Well then, your not in the "know"....

Not on the dong Im not hahaha......

I only keep track of one dong.....and thats my own

[Goldiegirl]

Not on the dong Im not hahaha......

I only keep track of one dong.....and thats my own

So what you're saying is.....your "short on the dong".....LOL

[keepmwlknfny]

So what you're saying is.....your "short on the dong".....LOL

If by short you are talking quantity then yes!!

[zul]

Your basically agreeing with what i said without recognizing it......

Directly or indirectly, it will affect inflation.....too much money chasing too few goods....

Have you been listening to kraperoni? lol....I know that you understand that by exchanging a 25k note for a 25 note you ARE reducing the money supply physically.....you cant reduce the money supply by simply exchanging the bigger bills for an equal amount in lower denoms.....for instance exchanging a 25k note for 1000 (25) notes.....that does nothing to reduce the money supply!

As far as the dinar being pegged to the dollar, it has been pegged to the dollar since 1959 when it switched from being pegged to the british pound.....

The dinar was introduced into circulation in 1932, by replacing the Indian rupee, which had been the official currency since the British occupation of the country in World War I, at a rate of 1 dinar = 11 rupees. The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars. By not following the devaluations of the U.S. currency in 1971 and 1973, the dinar rose to a value of US$3.3778, before a 5 percent devaluation reduced the value of the dinar to US$3.2169, a rate which remained until the Gulf War, although in late 1989, the black market rate was reported at five to six times higher (3 dinars for US$1) than the official rate.^[2]

You can just look at all the articles regarding the value of the dinar vs the USD....they mention it in almost all the currency articles coming out of Iraq....Nothing has indicated they have moved away from being pegged to the USD....another reason they hold about 45% of their reserves in the USD....even though its a program rate still, it hasnt moved away from being pegged to the dollar....

Keep

We differ at how they reduce their money supply. My understanding is they reduce them by removing 3 zeros notes from circulation. pysically. You on the other hand think they will reduce it by just changing the unit currency ~. just call your 25,000 dinar note, a 25 dinar and you have a reduction in money supply.LOL!

As for the money supply affecting the inflation, that's the maths. If you are CBI and you want to increase your purchasing power, you have to reduce your money supply. And i mean...reduce them physically. Not just by changing the unit currency, as what you are suggesting.

Thank you for the history lesson in dinar being a pegged currency in the past. For your information, in 2003 and 2004, the value of the dinar changed almost daily. Countries dont just peg and re-peg their currencies, up and down, on a daily basis . The only way they could do that was to let let their money move on a managed float . Maybe you should take a look at the movement of the CBI exchange rate (IQD vs USD) from 2003 to 2008 before CBI deciided to lock it at 1170 in 2009. And tell me if you still think it's a peg currency.

[hoosier1470]

So what you're saying is.....your "short on the dong".....LOL

LMAO....now that's funny!!!

[keepmwlknfny]

Keep

We differ at how they reduce their money supply. My understanding is they reduce them by removing 3 zeros notes from circulation. pysically. You on the other hand think they will reduce it by just changing the unit currency ~. just call your 25,000 dinar note, a 25 dinar and you have a reduction in money supply.LOL!

As for the money supply affecting the inflation, that's the maths. If you are CBI and you want to increase your purchasing power, you have to reduce your money supply. And i mean...reduce them physically. Not just by changing the unit currency, as what you are suggesting.

Thank you for the history lesson in dinar being a pegged currency in the past. For your information, in 2003 and 2004, the value of the dinar changed almost daily. Countries dont just peg and re-peg their currencies, up and down, on a daily basis . The only way they could do that was to let let their money move on a managed float . Maybe you should take a look at the movement of the CBI exchange rate (IQD vs USD) from 2003 to 2008 before CBI deciided to lock it at 1170 in 2009. And tell me if you still think it's a peg currency.

They are gonna be removing the zero notes completely.....they are removing ALL the current notes if they get approval from the GOI....

I think you are misunderstanding the whole 25k will be equal to (1) NEW 25 note....they arent just gonna give them markers and tell them to mark out the zeros lol. The notes we have will all be removed from circulation and destroyed. But, if you have a 25k note, you will have to exchange with the CBI (or whoever) for (1) NEW 25 note. They will take that 25k note you turned in, and destroy it. Doing so, you just effectively removed 24,975 dinar from circulation. That is how they plan on reducing the money supply.

As far as the pegged currency, it doesnt mean you cant change the value of your currency. It can still be revalued and devalued. Thats why if you watch forex and those other currency sites, you will see the value of the dinar move up and down daily and its based on the movements of the USD.....

As you can see from the chart below dating from 1990 to 2000 (while still being a pegged currency to the USD) The value can go up and down....being pegged doesnt mean your value cant change.....

http://www.oanda.com/currency/historical-rates/

[zul]

They are gonna be removing the zero notes completely.....they are removing ALL the current notes if they get approval from the GOI....

I think you are misunderstanding the whole 25k will be equal to (1) NEW 25 note....they arent just gonna give them markers and tell them to mark out the zeros lol. The notes we have will all be removed from circulation and destroyed. But, if you have a 25k note, you will have to exchange with the CBI (or whoever) for (1) NEW 25 note. They will take that 25k note you turned in, and destroy it. Doing so, you just effectively removed 24,975 dinar from circulation. That is how they plan on reducing the money supply.

As far as the pegged currency, it doesnt mean you cant change the value of your currency. It can still be revalued and devalued. Thats why if you watch forex and those other currency sites, you will see the value of the dinar move up and down daily and its based on the movements of the USD.....

As you can see from the chart below dating from 1990 to 2000 (while still being a pegged currency to the USD) The value can go up and down....being pegged doesnt mean your value cant change.....

http://www.oanda.com/currency/historical-rates/

You, exchange your 25K note for 25 dinar note. I will turn in my 25k note for whatever exchange rate at that time.

A pegged currency will not be on forex they are under fixed exchange rate regime. Only currencies with free float are on forex.

Peg simply means fix at a certain level. If dinar is pegged to the dollar, the price (IQDvsUSD) remains fixed, tied to the dollar. However, their value against OTHER currencies may appreciates or depreciates based on the movement of the dollar.

Edited November 5, 2012 by zul

[keepmwlknfny]

You, exchange your 25K note for 25 dinar note. I will turn in my 25k note for whatever exchange rate at that time.

A pegged currency will not be on forex they are under fixed exchange rate regime. Only currencies with free float are on forex.

Peg simply means fix at a certain level. If dinar is pegged to the dollar, the price (IQDvsUSD) remains fixed, tied to the dollar. However, their value against OTHER currencies may appreciates or depreciates based on the movement of the dollar.

Well if the CBI has its way, then you will be turning in your 25k note in at the rate it is now.....1166.....

Your right, pegged currencies usually wont be very profitable and arent on forex....which is why you will probly never see the dinar on forex unless they change their monetary policy.....same reason why the Kuwati dinar isnt traded on forex.....again, pegged currencies doesnt mean its fixed and has to stay at that value....do you not rememver Kuwait raising the value of their dinar recently? Guess who they are pegged to......

[yota691]

Somebody mention a change on Monetary policies: Set twenty official: States is committed to Basel 3 could face sanctions

November 4, 2012 15:40 Last Update: 04 Nov 2012 15:40

Read more:

[keepmwlknfny]

Somebody mention a change on Monetary policies: Set twenty official: States is committed to Basel 3 could face sanctions

November 4, 2012 15:40 Last Update: 04 Nov 2012 15:40

Read more: http://dinarvets.com.../#ixzz2BLfxmZrQ

Thats a little different yota.....by monetary policy changes, I mean that they would have to move away from the peg and change to a free floating or market driven currency which they have mentioned but there has been no action or steps in that direction yet. So we wait and see....