New CBI Announcement 3/14/2013 Exchange Rates!!

[dontlop]

Description

 

 

 

 

These swaps involve two transactions. When a foreign central bank draws on its swap line with the Federal Reserve, the foreign central bank sells a specified amount of its currency to the Federal Reserve in exchange for dollars at the prevailing market exchange rate. The Federal Reserve holds the foreign currency in an account at the foreign central bank. The dollars that the Federal Reserve provides are deposited in an account that the foreign central bank maintains at the Federal Reserve Bank of New York. At the same time, the Federal Reserve and the foreign central bank enter into a binding agreement for a second transaction that obligates the foreign central bank to buy back its currency on a specified future date at the same exchange rate. The second transaction unwinds the first. At the conclusion of the second transaction, the foreign central bank pays interest, at a market-based rate, to the Federal Reserve.

Read more: http://dinarvets.com/forums/index.php?/topic/143559-central-bank-liquidity-swap/#ixzz2NXWtS7rv

[zigmeister]

I hope they're not referencing a quick and sudden removal of 3 zeros to get to $0.87

but who here would ever believe the removal of 3 zeros to happen suddenly and quickly...

I don't think the removal of zero's would be overnight.  As I have read and been told it takes time, education and of course printing the new currency.

[Darin]

Don't get me wrong. My friend lives in Oklahoma. He is from iran. He obviously has family in iran. He is hearing talk from iraq and iran on the rummered rate. The rest of my reply was what he translated.

So, I have a question. Was this rumor more recent, or has it been on-going for some time?

[sandstorm]

Again it is significant they are not talking just about the dollar here, but foreign currencies.  Which in their country, it is only the dollar the people would be concerned with.  

true. but its in comparision to their foreign reserves, which backs the dinar

[zigmeister]

So you are telling me they are speaking of foreign reserves and not foreign exchange rate?

[dontlop]

So you are telling me they are speaking of foreign reserves and not foreign exchange rate?

heres how i read it zig .. copied and pasted off the article >> 

 

." Adding that "the exchange rate change would be different from the current prevailing prices of foreign currency against the Iraqi dinar."

Read more: http://dinarvets.com/forums/index.php?/topic/143722-new-cbi-announcement-3142013-exchange-rates/#ixzz2NXbS6HQ4

[Darin]

heres how i read it zig .. copied and pasted off the article >> 

 

." Adding that "the exchange rate change would be different from the current prevailing prices of foreign currency against the Iraqi dinar."

Read more: http://dinarvets.com/forums/index.php?/topic/143722-new-cbi-announcement-3142013-exchange-rates/#ixzz2NXbS6HQ4R

The exchange rate would be different....

 

Seems like an official rate change to me.

Market rates always vary and change.

The official rate has been pegged.

 

Now, how much change & when is the next question.

[dontlop]

The exchange rate would be different....

 

Seems like an official rate change to me.

Market rates always vary and change.

The official rate has been pegged.

 

Now, how much change & when is the next question.

i agree .. they had talked last month about  1000 to one .... i hope they do it gradually one zero at a time .. and increase the rates .. so maybe they only have to delete one zero

Edited March 14, 2013 by dontlop

[Darin]

i agree .. they had talked last month about  1000 to one .... i hope they do it gradually one zero at a time .. and increase the rates .. so maybe they only have to delete one zero

bringing the 1164 down to 1,000 seems like a possibility.. We obviously know what could happen next at that point that would not be in our favor...

[Goldiegirl]

Now thats Sexy. And the girl is hot too.

Canadian Wiskey...only in Canada Eh!!!

You know that kind of makes sense Greg!

Yes....87 cents....!!!!

Don't get me wrong. My friend lives in Oklahoma. He is from iran. He obviously has family in iran. He is hearing talk from iraq and iran on the rummered rate. The rest of my reply was what he translated.

Is he invested too?

[BJinMontreal]

Canadian Wiskey...only in Canada Eh!!!

Yes....87 cents....!!!!

Were you punning the sense ... of the comment Goldie?  If so - nice one!!!

 

If not ... well ... um ... good for you, eh?

[sandstorm]

So you are telling me they are speaking of foreign reserves and not foreign exchange rate?

same thing. every unit of foreign reserve currency is multiplied by the foreign exchange rate to equal value. so i think we are saying the same thing differently?

They reference DOMESTIC market....which is market rate. it now stands at 1255, which if you scroll through the pdf file...you will see the market value has creeped away the last few months.

if you cross the dates when market rates were high last year........you will find articles within days..that explain this exact situation agaain. so weve seen it last year......market rate jumped high some were payin upward to 1300. Remember those articles.

now...they did last year.....bump up four pips from 1170 to 1166. I could see another adjustment possible to 1160 or maybe even 1000:1, which theyve mentioned before too.

[Goldiegirl]

Were you punning the sense ... of the comment Goldie?  If so - nice one!!!

 

If not ... well ... um ... good for you, eh?

Yes, I was punning the sense....good catch there EH!!!

Edited March 14, 2013 by Goldiegirl

[sandstorm]

Jmo....and memory of when they were saying the same thing last year

[rsskelton]

Tony   TNT

Yea, what guru said he was eating a hot dog while waiting outside the bank?? lol  (Steve?)

[zigmeister]

Okay now I am clear Sandstorm, thanks!  

[Osmosis]

I'm all in at .86 but how does anything less than $1.00 benefit the in country Iraqis?  Unless...........they are pretty much de-dollarized!

[dontlop]

bringing the 1164 down to 1,000 seems like a possibility.. We obviously know what could happen next at that point that would not be in our favor...

i dont think we know anything ,, there have been zero deletions before of one zero ... two zeros .. ,,3,,5,,6,, ..they dont have to by law delete 3 zeros .. at a time

Redenomination1 has a long history: in the 19th century, when governments faced shortages of gold or silver, they sometimes adjusted the value of their coins accordingly (recoinage; see Helleiner 2003). Among developing and transition nations, currency redenomination was employed on 60 occasions during the 1960-2003 period.2 These redenominations varied in size, from removing one zero from the currency (14 instances) to removing six zeros (9 instances); the median redenomination was three zeros, dividing the currency by 1000. Nineteen countries have used redenomination on one occasion, while ten countries have redenominated twice (sometimes, with many years in between, as in Bolivia, in 1963 and 1987; in other cases, redenominations follow rather quickly, as in Peru in 1985 and 1991). Argentina (4), the former Yugoslavia/Serbia (5), and Brazil (6) are the most frequent users of redenomination.

The Rationales for Redenomination

Why do governments engage in the redenomination of their currencies? In an era when money is backed by confidence (fiat money) rather than by gold and silver, governments may be tempted to manipulate the value of the publics currency stocks as a revenue-generating measure. One means of manipulation is inflation: a government can reduce its own domestic currency-denominated obligations by allowing a dramatic expansion of the money supply. Another means of manipulation is currency reform, in which the government introduces a new currency, but makes it difficult for citizens to convert their holdings of old currency. Ignacio Mas (1995) suggests that, while the use of currency redenomination as a mechanism of confiscation is more the exception than the rule, it has been used as such throughout history. For instance, when governments require citizens to exchange old currency for new during a very short period (e.g. one day in Laos in 1976, or three days in Nicaragua in 1988 and in the Soviet Union in 1991), it is very likely that not all old currency will be exchanged. The old currency that is rendered worthless is essentially revenue indirect seignorage -- for the government

Edited March 14, 2013 by dontlop

[rsskelton]

He's still saying the same stuff buddy at another site where people talk on the radio...hint, hint

Alex, I'll Take Pumper Gurus For $500 - Who Is TonyTNT ? And Wtf Ever Happened To Him ?

:D

[dontlop]

if they have 30 trillion dinar .. deleting one zero would leave  3 trillion  dinars ,,

 

two zeros would leave 300 billion dinars ..

 

 

three zeros would leave 30 billion dinars

[sandstorm]

Having pressure to do something is what we want. Thats when central banks take action. im hoping the rate does jump big.....but i wouldnt be surprised with eith another slight adjustment or the move to 1000 like theyve mentioned before. hopefully something shows soon.

[Goldiegirl]

He's still saying the same stuff buddy at another site where people talk on the radio...hint, hint

And...I think you have to pay to hear him chew that hot dog...

[dinarbeleiver]

They won't redonominate it is going to be a huge currency shock

[Lutie]

My head hurts !!!!!!

[sandstorm]

i dont think we know anything ,, there have been zero deletions before of one zero ... two zeros .. ,,3,,5,,6,, ..they dont have to by law delete 3 zeros .. at a time

Redenomination1 has a long history: in the 19th century, when governments faced shortages of gold or silver, they sometimes adjusted the value of their coins accordingly (recoinage; see Helleiner 2003). Among developing and transition nations, currency redenomination was employed on 60 occasions during the 1960-2003 period.2 These redenominations varied in size, from removing one zero from the currency (14 instances) to removing six zeros (9 instances); the median redenomination was three zeros, dividing the currency by 1000. Nineteen countries have used redenomination on one occasion, while ten countries have redenominated twice (sometimes, with many years in between, as in Bolivia, in 1963 and 1987; in other cases, redenominations follow rather quickly, as in Peru in 1985 and 1991). Argentina (4), the former Yugoslavia/Serbia (5), and Brazil (6) are the most frequent users of redenomination.

The Rationales for Redenomination

Why do governments engage in the redenomination of their currencies? In an era when money is backed by confidence (fiat money) rather than by gold and silver, governments may be tempted to manipulate the value of the publics currency stocks as a revenue-generating measure. One means of manipulation is inflation: a government can reduce its own domestic currency-denominated obligations by allowing a dramatic expansion of the money supply. Another means of manipulation is currency reform, in which the government introduces a new currency, but makes it difficult for citizens to convert their holdings of old currency. Ignacio Mas (1995) suggests that, while the use of currency redenomination as a mechanism of confiscation is more the exception than the rule, it has been used as such throughout history. For instance, when governments require citizens to exchange old currency for new during a very short period (e.g. one day in Laos in 1976, or three days in Nicaragua in 1988 and in the Soviet Union in 1991), it is very likely that not all old currency will be exchanged. The old currency that is rendered worthless is essentially revenue indirect seignorage -- for the government

Please no rd talk. ive been excited since the continued postponement. Although the exact 1000:1 is not a number i like. how about 999, then the possibility of only cutting two zeroes.