CBI: CBI study entitled: Central Bank of Iraq and the evolution of monetary policy

[RVPleaseToday]

No one has ever explained to me why Iraq's currency would be considered valuable if they floated it. We want DOLLARS for our Dinar. The last thing we want is a float.

The only reason we would make money on an RV is BECAUSE the dinar is pegged to the dollar!

Edited January 23, 2013 by RVPleaseToday

[easyrider]

No one has ever explained to me why Iraq's currency would be considered valuable if they floated it. We want DOLLARS for our Dinar. The last thing we want is a float.

so you would rather them come out with a new currency code? a float is better than a LOP. We simply Don't know what they will do its all speculation. It's not like i am making this up look it up, who knows.

Edited January 23, 2013 by easyrider

[RVPleaseToday]

easy, the ONLY way we can make money on this is if they do a straight up RV and are pegged to the dollar. It's not a matter of what I want or not. I want to make money on this.

Edited January 23, 2013 by RVPleaseToday

[Darin]

No one has ever explained to me why Iraq's currency would be considered valuable if they floated it. We want DOLLARS for our Dinar. The last thing we want is a float.

The only reason we would make money on an RV is BECAUSE the dinar is pegged to the dollar!

I think your in the mindset that floating the dinar would mean it would also be traded on forex. The internal market is already based upon a market value and it is less than the going rate of the CBI. Floating the dinar would only be selling/buying the value at its market rate. Their current market rate is less than the CBI rate. So while your right, a float would mean less money now but the point is it may not mean less money in the future. The value could have a better chance to rise.

[easyrider]

This is ALL assuming that these are the true intentions they have to free float the currency from 1166 We simply DO NOT know. Also this was published recently but how old is this? so many questions. Could plans have changed? well this is Iraq lol

Edited January 23, 2013 by easyrider

[billjr]

I don't see it either. Here's a list of countries with free floating currencies.

Albania

Australia

Brazil

Canada

Chile

Czech Republic

Democratic Republic of the Congo

Economic and Monetary Union of the European Union (euro)

Austria

Belgium

Cyprus

Estonia

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Malta

Netherlands

Portugal

Slovakia

Slovenia

Spain

Ghana

Hungary

Iceland

Israel

Japan

Mexico

New Zealand

Norway

Philippines

Poland

Somalia (as of December 1989)

South Africa

South Korea

Sweden

Switzerland

Turkey

United Kingdom

United States

Zambia

You'll notice that Saudi Arabia, Syria, Kuwait, Jordan, Iran, Lebanon, Egypt .... etc. aren't on the list. The only neighbor of Iraq's on the list is Turkey, and if you'll study the history of the Turkish lira it was allowed to free float starting in 2001 which triggered hyperinflation and led to a 50% reduction in its value. The CBI has stated clearly that they are concerned about inflation so I can't imagine them risking hyperinflation via removing the dinar from a peg to the USD. I think what they mean by a flexible exchange rate is a managed float. A free float is too risky for a country as unstable as Iraq.

It is clearly stated under #5 A-policy ( last sentence ) " Achieve stability in the exchange rate of the Iraq Dinar in the context of a flexible rate system orbit " THE LOP DEBATE IS OVER PERIOD! They just told us what they plan to do. FREE FLOAT.

[easyrider]

It is clearly stated under #5 A-policy ( last sentence ) " Achieve stability in the exchange rate of the Iraq Dinar in the context of a flexible rate system orbit " THE LOP DEBATE IS OVER PERIOD! They just told us what they plan to do. FREE FLOAT.

[RVPleaseToday]

My question is, if the Dinar floats and is traded internationally, rather than pegged to the dollar, then who pays us? If it is being traded, then I have to find another trader who is willing to buy my Dinar for dollars...and why would he do that? Once the currency is out of my hands, it's just dinar. And only worth the current price. I don't know where all this float nonsense started, but it sure isn't what we want!

Edited January 23, 2013 by RVPleaseToday

[easyrider]

My question is, if the Dinar floats and is traded internationally, rather than pegged to the dollar, then who pays us? If it is being traded, then I have to find another trader who is willing to buy my Dinar...and why would he do that? Once the currency is out of my hands, it's just dinar. And only worth the current price. I don't know where all this float nonsense started, but it sure isn't what we want!

ill tell you what i dont want is a new currency code!!

[RVPleaseToday]

Without a peg, all the theories about how an RV would be paid for go out the window.

[keepmwlknfny]

Until they can get the market value to pass the official CBI rate, a free float will not work.......

Even if they tried it, thinking it woukd be better in the long run, initially the.value would depreciate.....where is the confidence going to come from or the demand if your sitting there watching the value drop further? I dont know about any of you, but that would hurt my confidence in it.....and i would be rushing to exchange my dinar for USD if i lived there.....

[dontlop]

to me it says its another study .. i dont see where it says its their plan .. in the united states our news papers are devided up in catagorys .. news and opinion are two of those catagorys .. this is how many politicaly motivated storys are in those news papers , magazines ..ect. .. they fall under opinion columns .. news is supposed to be factual .. ive read story after story that have proved later not to be factual ..

i wonder if iraq has such catagories .. if they do .. they should be labeled .. because something is in a news paper .. evidently does not make it a fact .. so i guess all we really have is the rates at the cbi ..these storys go round and round

[Captjohn]

It is quiet long, and as far as the studys go . If you have been invested for a long time like lots of us you will find thats all these Morons do is Studys and argue. They can never seem to play in the sand box nicely. I think they have done about 60 studys up to this point in the last 10 years lol. And the sad thing is they never accomplish anything. :rolleyes:/>

Studies are fine....unless they are a substitute for action, which in the case of Iraq seems to be the case. They are long on talking and short on doing. Let's just get it done.

[Tripphood]

I would think it would be a better scenario if they came out at a staging rate of at least a Dollar and then either a free or managed float. Would that not seem like the better strategy? Why would anyone holding Dinar or Dollars be incentivized to trade?

[BelievingInTheBest]

I would much prefer to have a free floating, internationally traded, IQD. Reduce the physical IQD money supply (which I believe they have done and are still doing), gradually take the dollar out of the system and watch the value of the IQD go up as the political system irons the bumps out. Open the bond market (which they are moving on) and the infrastructure will start to rebuild with Iraqi workers. They have so much work to get done that it will take workers from the other parts of the Arab world. There will be so much Iraqi business to invest in as they grow their country.

I am very excited about a free floating IQD. Even if it does go down at first, at least it is free to move. And if it does go down at first, that might be a good thing as it could clear more IQD off the streets reducing the IQD physical money supply even more. Then start the dedolarization process. All the while the CBI will be making money off the exchanges. Managing the currency or float means they manage our potential profits. Free floating the currency allows you and me to determine our profits as the value naturally rises and falls over time. Will it be as fast as our desired profits? For most, probably not. But it will be a much more accurate profit.

Just my two cents and opinion.

Edited January 23, 2013 by BelievingInTheBest

[RVPleaseToday]

By what mechanism do you RV a free floating currency?

[dontlop]

mechanisms are made as required .. where did all the mechanisms come from in the first place .. they make them up as they go . . http://removingtheshackles.blogspot.ca/

[RVPleaseToday]

dontlop, if it is free-floating Iraq is not in control of it. You can't, by definition, RV a free floating currency.

[staunch]

dontlop, if it is free-floating Iraq is not in control of it. You can't, by definition, RV a free floating currency.

Buy can you revalue into a free float? Ie: RV to say .50 and then float it

[whatsthis]

I don't see it either. Here's a list of countries with free floating currencies.

Albania

Australia

Brazil

Canada

Chile

Czech Republic

Democratic Republic of the Congo

Economic and Monetary Union of the European Union (euro)

Austria

Belgium

Cyprus

Estonia

Finland

France

Germany

Greece

Ireland

Italy

Luxembourg

Malta

Netherlands

Portugal

Slovakia

Slovenia

Spain

Ghana

Hungary

Iceland

Israel

Japan

Mexico

New Zealand

Norway

Philippines

Poland

Somalia (as of December 1989)

South Africa

South Korea

Sweden

Switzerland

Turkey

United Kingdom

United States

Zambia

You'll notice that Saudi Arabia, Syria, Kuwait, Jordan, Iran, Lebanon, Egypt .... etc. aren't on the list. The only neighbor of Iraq's on the list is Turkey, and if you'll study the history of the Turkish lira it was allowed to free float starting in 2001 which triggered hyperinflation and led to a 50% reduction in its value. The CBI has stated clearly that they are concerned about inflation so I can't imagine them risking hyperinflation via removing the dinar from a peg to the USD. I think what they mean by a flexible exchange rate is a managed float. A free float is too risky for a country as unstable as Iraq.

Iraq is not in this list yet because they have not started the float yet they are telling us it will be a free float when it happens.

Until they can get the market value to pass the official CBI rate, a free float will not work.......

Even if they tried it, thinking it woukd be better in the long run, initially the.value would depreciate.....where is the confidence going to come from or the demand if your sitting there watching the value drop further? I dont know about any of you, but that would hurt my confidence in it.....and i would be rushing to exchange my dinar for USD if i lived there.....

your looking at it as only being Iraq market economy when they free float is will be based on supply & demand on the world wanting dinars.

[zul]

flexible exchange rate system orbit=free float

You are right....

"....added Alkrasna adopt all of Iraq, Tunisia, Algeria, Mauritania and Sudan system “floating orbit of exchange”, where value is determined currency in the market, according to the forces of supply and demand, and the government to intervene when necessary to re-route the exchange rate.."

[SWFloridaGuy]

This was a great read guys, thanks.

[katie45]

Until they can get the market value to pass the official CBI rate, a free float will not work.......

Even if they tried it, thinking it woukd be better in the long run, initially the.value would depreciate.....where is the confidence going to come from or the demand if your sitting there watching the value drop further? I dont know about any of you, but that would hurt my confidence in it.....and i would be rushing to exchange my dinar for USD if i lived there.....

Apparently, you know more than the experts that have been planning and preparing for Iraq to do a float? lmbo

[katie45]

This is old news, Kap and his team said 6-8 months ago that the CBI was going to free float the dinar. And each and everyone one of you thought he was off his rocker. In fact, he is correct. So how many of you will now give my friend credit? I bet very few. lol

[keepmwlknfny]

your looking at it as only being Iraq market economy when they free float is will be based on supply & demand on the world wanting dinars.

But its also based on Iraqs market economy.....if their own people wont pay the CBIs rate, if their own people dont want the dinar, then who else will?? If you cant get the people in your own back yard to show demand, it loses its appeal elsewhere....it means it wont take off....

Its almost like music....you have tons of people trying to make it into the industry....you know what the record companies look at above all else?? How well they do in their own back yard. You can have the next great sound but if you cant get the people in your area to want it, and for your local radio stations to play it, they wont touch you....