DinarintheAZDesert Posted March 28, 2013 Report Share Posted March 28, 2013 Sorry if this has already been posted or if it's in the wrong section, but I found this interesting. GO RV... Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars. Estimate the shadow price of foreign currency: 1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine. The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs. * What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar. In particular the following outputs and inputs of foreign currency were distinguished: · Export-outputs. · Outputs marketed locally that substitute imports. · Imported inputs. · Inputs produced locally that usually go to exports. · Foreign labor. According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules. In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency …. etc.). In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency. 2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etc. The justifications to call for the use of an exchange rate that is lower than the official exchange rate are: · The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production. · The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs. · The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods. · The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities. · This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of. And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate. 3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities. (Source) http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en 9 Link to comment Share on other sites More sharing options...
TLHUBER Posted March 28, 2013 Report Share Posted March 28, 2013 Am I reading this right 1.134? So basically 1.13 ? Oh, and for 3 years? 2 Link to comment Share on other sites More sharing options...
NWGUY Posted March 28, 2013 Report Share Posted March 28, 2013 $1.13.......let's do it!!! Go RV or RI !!!! 3 Link to comment Share on other sites More sharing options...
SocalDinar Posted March 28, 2013 Report Share Posted March 28, 2013 THANKS!! Bring it on Turki! 1 Link to comment Share on other sites More sharing options...
Dinar Buddy Posted March 28, 2013 Report Share Posted March 28, 2013 WHAT A MINUTE... This website is owned by a company in the US... this site could be bogus and miss leading... Look at this closer and you see it is not functional my a true government site. BE CAFEFUL!!! 2 Link to comment Share on other sites More sharing options...
RVPleaseToday Posted March 28, 2013 Report Share Posted March 28, 2013 Obviously the numbers don't mean what you think, because the text says this: "This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of." The official exchange rate is 1166. 1 Link to comment Share on other sites More sharing options...
dontlop Posted March 28, 2013 Report Share Posted March 28, 2013 is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports… etcRead more: http://dinarvets.com/forums/index.php?/topic/144817-the-exchange-rate-of-foreign-currency-in-economic-feasibility-studies/#ixzz2OsiAT6MK The justifications to call for the use of an exchange rate that is lower than the official exchange rate are: · The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. which is exactly what iraq has been doing Obviously the numbers don't mean what you think, because the text says this: "This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of." The official exchange rate is 1166. thats a program rate 4 Link to comment Share on other sites More sharing options...
capt.cliff Posted March 28, 2013 Report Share Posted March 28, 2013 (edited) If I read this right it does not even float the 2013 budget , to break even--I think this is a recirculated article from maybe 3-4 years ago---applied to now--things have been discovered---meaning resources--meaning value to the IQD---is far larger then just oil--the only problem comes from the political end---not the true value of Iraq and her capabilities--that is what we are looking for now--the money is there --potential to go higher in the future is a foregone conclusion! It is also amazing that as new discoveries are made for different resources , it seems no one region is left out, but sharing all to everyone is a stumbling block--there are just getting a glimpse of sharing and working together to average the same up and down resources are valued--it is all energy now---that technocrat Bs JUST MIGHT WORK when they learn we all benefit from all our resources and have the fair share divide equally upon among regions ,one up one down --this sounds like socialism but it not, it is lack of understanding that all have an place at the card game---and understand that there will be a winner and a loser but it is never 1-on-1 there is a winner from the other 5 players but the 3 in the middle walk away with more then lose of dinars, they will talk about how to get better within their own areas since they are speaking and Sharing their thoughts--there will always be a winner and a loser but real change comes from the middle-- Just politics from here on in! Edited March 28, 2013 by capt.cliff 1 Link to comment Share on other sites More sharing options...
skitealwedrop Posted March 29, 2013 Report Share Posted March 29, 2013 Obviously the numbers don't mean what you think, because the text says this: "This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of." The official exchange rate is 1166. You are correct. The rate is 1166 the last time I checked the CBI website. Obviously, the GOI and CBI are in a malfunction mode. There is more going on politically be hind the scenes than I care to know. The Iraqi's are a different breed. I wouldn't trust the boys in the sand pit. They are corrupt as hell. 1 Link to comment Share on other sites More sharing options...
NWGUY Posted March 29, 2013 Report Share Posted March 29, 2013 You are correct. The rate is 1166 the last time I checked the CBI website. Obviously, the GOI and CBI are in a malfunction mode. There is more going on politically be hind the scenes than I care to know. The Iraqi's are a different breed. I wouldn't trust the boys in the sand pit. They are corrupt as hell. I agree in someways with you.....these guys are very corrupt, but wouldn't it make sense for them to get the RV done? They obviously have access to large amounts of dinar, and if they could get it RV'd, they could make a mint! I guess my question is.....what is stopping them from RVing this? I mean, even if they RV'd it over a dollar, they could walk away with millions, why wouldn't this bunch of morons not do that? That really is my question. Can anyone answer this question? Not bashing at all, just want to know, what my dinar friends think??? Go RV or RI !!! 2 Link to comment Share on other sites More sharing options...
sandstorm Posted March 29, 2013 Report Share Posted March 29, 2013 This study was from when the official exchange rate was 3.20. a long long time ago. from my understanding, the study was to see at what rate the dinar could compete against the dollar. Link to comment Share on other sites More sharing options...
skitealwedrop Posted March 29, 2013 Report Share Posted March 29, 2013 I agree in someways with you.....these guys are very corrupt, but wouldn't it make sense for them to get the RV done? They obviously have access to large amounts of dinar, and if they could get it RV'd, they could make a mint! I guess my question is.....what is stopping them from RVing this? I mean, even if they RV'd it over a dollar, they could walk away with millions, why wouldn't this bunch of morons not do that? That really is my question. Can anyone answer this question? Not bashing at all, just want to know, what my dinar friends think??? Go RV or RI !!! We will have to see how the story plays out. The Iraqi's are clearly not in a hurry. Most of us are aware of that fact. Peace all! 1 Link to comment Share on other sites More sharing options...
sandfly Posted March 29, 2013 Report Share Posted March 29, 2013 I'M IN A HURRY. SO RV I'L TAKE 1.13 3 Link to comment Share on other sites More sharing options...
Bored Posted March 29, 2013 Report Share Posted March 29, 2013 For the record, if I've been siting my college essays correctly, the last time the MOP website was updated was 2012. 1 Link to comment Share on other sites More sharing options...
OZmosis Posted March 29, 2013 Report Share Posted March 29, 2013 "the official exchange rate over estimates the value of the dinar" may well mean that the value of the dinar is "over estimated" to the "negative" in relation to the dollar. It is all in the interpretation as well as the translation, as I have read CBI statements elsewhere that discuss the aim to achieve a dinar value which is more in tune with the value of the US dollar. Just saying ... I think 1:1 might be a good compromise but please don't announce it on 1 April. 1 Link to comment Share on other sites More sharing options...
Bored Posted March 29, 2013 Report Share Posted March 29, 2013 "the official exchange rate over estimates the value of the dinar" may well mean that the value of the dinar is "over estimated" to the "negative" in relation to the dollar. It is all in the interpretation as well as the translation, as I have read CBI statements elsewhere that discuss the aim to achieve a dinar value which is more in tune with the value of the US dollar. Just saying ... I think 1:1 might be a good compromise but please don't announce it on 1 April. Why not announce it April 1st? 1 Link to comment Share on other sites More sharing options...
OZmosis Posted March 29, 2013 Report Share Posted March 29, 2013 Hello Bored. Why not announce it April 1? April 1 is April Fool's Day. 2 Link to comment Share on other sites More sharing options...
Bored Posted March 29, 2013 Report Share Posted March 29, 2013 Hello Bored. Why not announce it April 1? April 1 is April Fool's Day. Beggars can't be choosers my friend.. I'll take any date I can get! 2 Link to comment Share on other sites More sharing options...
OZmosis Posted March 29, 2013 Report Share Posted March 29, 2013 I'll take any date also - as long as I have confirmation email from Adam and I can actually see the new rate on the CBI website. By the way - great profile pic. Cheers. 1 Link to comment Share on other sites More sharing options...
make11 Posted March 29, 2013 Report Share Posted March 29, 2013 Wow, I really wish this would be true. 1 dollar per Dinar is the best I have been hoping for actually. Would be amazing and great that this is found on an official site of Iraq planning. This article would link well with the other topic in Dinarvets that how can officers only promised a retirement of 400 dinars unless there is a RV of at least 1 dollar per IQD... http://dinarvets.com/forums/index.php?/topic/144835-400-dinar-pension-for-retired-military/ 3 Link to comment Share on other sites More sharing options...
keepmwlknfny Posted March 29, 2013 Report Share Posted March 29, 2013 This study was from when the official exchange rate was 3.20. a long long time ago. from my understanding, the study was to see at what rate the dinar could compete against the dollar. That is correct......the official rate of the dinar hasnt been even close to.3.20 for quite sometime..... This is very old documentation..... 2 Link to comment Share on other sites More sharing options...
Bored Posted March 29, 2013 Report Share Posted March 29, 2013 I'll take any date also - as long as I have confirmation email from Adam and I can actually see the new rate on the CBI website. By the way - great profile pic. Cheers. Agreed, have to stay grounded.. no more riding the coaster.. And thanks! someones gotta represent the 90's babies here! I feel like im in an investment with all middle aged people.. 1 Link to comment Share on other sites More sharing options...
ronscarpa Posted March 29, 2013 Report Share Posted March 29, 2013 Thanks for the post DitAZDesert .... we shall see what things really are, when it finally rolls out...! 1 Link to comment Share on other sites More sharing options...
Belecosity Posted March 29, 2013 Report Share Posted March 29, 2013 verrrr niccceeee... Howww mucchhhhhh??? 2 Link to comment Share on other sites More sharing options...
starlight Posted March 29, 2013 Report Share Posted March 29, 2013 (edited) Last line of the text on this page at the Iraq Ministry of Planning website, yes, it's been there for years: 3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities. http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en Edited March 29, 2013 by starlight 1 Link to comment Share on other sites More sharing options...
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