Tlar & Member Discussion

[UNEEK]

No date. Economist: the value of the dinar will fall

Iraqi economic expert said that the current monetary policy pursued by the Central Bank of Iraq has led to a reduction in the value of the Iraqi dinar against the dollar, compared to what it was before the issuance of an arrest warrant former central bank governor Sinan al-Shabibi.

And between economic expert who declined to be named, said Iraqi dinar exchange rate before fabricating a crisis the Central Bank arrived in price below its current price, stressing that the bank was unable to maintain the value of its price old despite raising dollar sales even arrived last Sunday to about $ 220 million, compared to sales ranging between 175 - 200 million dollars before the decision to change Shabibi.

FULL ARTICLE AND LINK BELOW

TLAR: The number of dinar out has been stated by the bank at 30 trillion. They have been buying it as we know for months now so we assume there is much less out now. The have been net buyers, not net sellers for at least 5.5 months. We know the value of the dinar to be 1166.

If we divide the whole 30 trillion dinar (even though we have seen them buying and retiring it for months now) we get $25,728,987,993. That's the sum total value of every dinar that has been mentioned by the CBI since late 2011 as to how many are out there.

TLAR CONTINUES: That less than 26 billion US to cover the dinar at 100%.. In laymans terms 25.9 billion US dollar completely covers and is equal to all the dinar out. The CBI has also stated recently that they have 67 billion in reserves to cover the 25.9 billion worth of currency.

That means for each 1 dollar in value of dinars in the street it is covered by the banks currency reserves with 2.58 dollars. These numbers do not take into consideration, in my estimation that the CBI has bought probably 13 - 14 trillion dinars out of the 30 trillion, through the auctions and retired them over the last 5 months.

This does not count the gold reserves over a billion, nor does it count the DFI worth upto 200 billion, nor does it count the potential 800 billion owned by Iraq sitting in foreign banks that is frozen by the US/UN. It also says nothing the the wealth of resourses which we know to be a minimum15 trillion reserves of oil in the ground not counting the gold yet to be dug up.

The point of this is to say Iraq has umpteen times the wealth necessary to cover any currency up to and including $3. 00. They had initial intentions of making it a dollar which IMHO is very conservative.

For them to be concerned about the dinar dropping in value from 1166 to something less is ridiculous. It is either a currency manipulation by the bank to get people to sell even more dinars back to the CBI or it is a total lack of confidence in all things Iraqi.

I for one see this article as in contrast to many other articles saying the dinar is strengthening, as either a tactic by the CBI as I've stated, or another non degreed, foolish, quasi expert, weighing on something he knows nothing about.

At 1166 the bank could buy every dinar everywhere 2.58 times. Or just using the amount from their currency necessary to buy all the dinars out, which buy the way are US dollars, Euros, Yen etc., they would still have a net currency reserve of 41 billion dollars. These are all hard currencies.

SADIE: Sad,...Just plain Sad

CARRELLO: Sadie, it sad after the good Doctor's diligent work, (Shabibi) but I am reminded of Maliki's antics and the progressive wave of strength building against him. Maliki had been getting aggressive, but when he put out an arrest warrant for Shabibi, the world stopped for a moment to take a breath and a closer look.

People outside of the government came together to support Shabibi and speak out against Maliki, and an energy started to take hold to bring people the confidence to go against the two-bit gangster, and I believe that TPB nodded that Maliki is now more than a fly buzzing around their head, but something that needed to be exterminated sooooon, It has been like a snowball rolling downhill gathering depth and diameter since then.

The IQD will come back, and I am hopeful, no matter what others say, that Dr. Shabibi returns. I believe that Shabibi's arrest warrant has done nothing but good for Iraq and for us. Make no mistake: I don't like it, but every cloud has a silver lining.

RUSS: I also think that the drop in the value of the IQD is another sign that the preparation for the release of the new currency (New Lower notes) is getting over cooked. The so called "failure" of the CBI is really because the plan has stalled.

This holdup was not of the Banks making, which is what the article says. These are all good articles that excite me, that my IQD is getting ripe for the picking. It's time to start and dedollarize Iraq!

BLUEYESINLEVIS: More USD into the economy.. means more IQD gathered in to the CBI. I dont care what the article says other than that. It only points to an intensification of the dollarization.. which is in essence and practice.. "removing the zeros".

All part of the plan... IMHO. And yes.. Russ' posts are both very insightful. Carello.. I dont thinkwe see Shabibi return to Iraq..but I expect he is still in control behind the scenes even now. Time will tell.

CARRELLO: I agree with you Blue on the behind the scenes guidance, but I still believe Shabibi could come back to ride Sea Biscuit across the CBI finish line. You have to give me a break here....I am a woman so I tend to be sentimental, optimistic, forever idealistic, and still think Ringo and Paul will get back together again.

PALLADIUM: Blues, I agree with you about the dollarization aspect. It would potentially weaken the economy though. Either way, removing those zeros.

Democracies are "Mob Rule" forms of govenment, and the dinar is being weakened by this aspect. If Iraq were following their constitution and acting like a Republic; that dinar would be strong and going up in value right now

No date. Economist: the value of the dinar will fall

Iraqi economic expert said that the current monetary policy pursued by the Central Bank of Iraq has led to a reduction in the value of the Iraqi dinar against the dollar, compared to what it was before the issuance of an arrest warrant former central bank governor Sinan al-Shabibi.

And between economic expert who declined to be named, said Iraqi dinar exchange rate before fabricating a crisis the Central Bank arrived in price below its current price, stressing that the bank was unable to maintain the value of its price old despite raising dollar sales even arrived last Sunday to about $ 220 million, compared to sales ranging between 175 - 200 million dollars before the decision to change Shabibi.

And linking Iraqi expert among central bank sales and the amount of funds needed by the State to cover its operating budget from the salaries and financial obligations, and said that Iraq was able raise the value of the Iraqi dinar exchange rate 1187 dinars to the dollar if they are not to interfere in the management of the value of the Iraqi currency,

but the government policy blundering and is an expert approved by the Iraqi market mainly on imports from abroad prevented raise the value of the Iraqi currency, especially if the dinar remained stalled at the rate of 1230 dinars to the dollar, he said, adding that this rise cost the Iraqi economy huge losses worth hundreds of millions of dollars a year.

He wondered economic expert about why fabricating crisis Shabibi, who was accused of corruption, while continue the central bank to follow the policies in the sale of foreign currency?, Expected to have the central bank to raise the value of the supply of the dollar against the continuing decline in the value of the Iraqi dinar in the case of the government's refusal to heed the wise management dinar exchange rate in the near term and medium term. LINK

[keepmwlknfny]

Ok Tlar........

First off, the auctions are in place to keep inflation and the exchange rate stable.....it doea not remove.currency from the.streets or from whats in circulation......

Also, the 200 plus billion your mentioning from the DFI, thats what has flowed through the account since it was started......its a checking account for the govt of iraq.....doesnt belong to the CBI anyways so none of that money would be used as reserves.

And lastly, the frozen n amounts to be returned also has to deal with the DFI, so its not the CBIs and the amount is no where near 800 billion.......

[UNEEK]

Ok Tlar........

First off, the auctions are in place to keep inflation and the exchange rate stable.....it doea not remove.currency from the.streets or from whats in circulation......

Also, the 200 plus billion your mentioning from the DFI, thats what has flowed through the account since it was started......its a checking account for the govt of iraq.....doesnt belong to the CBI anyways so none of that money would be used as reserves.

And lastly, the frozen n amounts to be returned also has to deal with the DFI, so its not the CBIs and the amount is no where near 800 billion.......

Thanks Keep -

[capt.cliff]

From what I have read the DFI account is frozen -Iraq can't make a withdrawal as needed just partly used to keep the Goi solvent --they get a set amount but not all of it--that is why it keeps growing--the actions of buying dinars and paying for them in dollars--way cool because they are still taking electronic dinars out of circulation by paying for them with real dollars--both figure into how many dinars are really out there, not just in country but with also on a international [broker] level --lets think about it ,there are not really the amount of dinars held within Iraq that is traded in every auction ---the CBI is making money on the sale , the banks/institution's are making money by the spread but the net result is the dinar IS being decreased to levels--physically , in-country and electronically resulting in a net reduction of dinars--not on the street level as a result so to speak[and we know that has dried up] but on the electronic level!---it all counts in the end to a higher value when they do decide to trip the switch!

I digress but the dollar is coming in quicker then then they canweennthemselvess off of it -hencee reportable the buying od Gold something that hasintrinsicc value -what's next? and there will be a next--this is not a short subject here --this is monumental

Look further then the next news post--LOL!

I want tomorrowrow as bad as anyone else but look at the big pic, not the doom and gloom people here!

[ronscarpa]

Good post UNEEK - food for thought .. Thanks for bringing it over...(+1)

RON

[RVPleaseToday]

I think TLAR's math is way wrong.

Edited February 4, 2013 by RVPleaseToday

[katie45]

what is going on with this site? why are my posts not getting posted?