**Failure in dinar exchange rate** discuss radical solutions CBI

[easyrider]

Member: financial representative intends to host the Central Bank Governor to discuss failures in the dinar exchange rate
08-04-2013 05:09 AM


Baghdad (newsletter). Member of the Finance Committee disclosed the Attorney//Secretary Hadi Abbas, the intention of the Committee to host the temporary Central Bank staff for their discussion on financial and monetary matters in the country and how to improve them.

He said Abbas (News Agency): the next few days will be hosting the Central Bank Governor and some of his aides in the House and the Finance Committee for discussion about akhavakat dinar exchange rate against the dollar, and how to develop the financial and banking sector in the country.

He added: there are many complaints about the sale and purchase of foreign exchange in the Central Bank auction, which caused low exchange rate of the Iraqi dinar against the dollar in the past period, he will be discussing all things to identify the most important challenges and come up with radical solutions.

The Iraqi market has experienced considerable unrest in recent weeks in the price of the US dollar against the Iraqi dinar as the sale price of one dollar to 1280./finished/8 l. Eng.http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http://www.ikhnews.com/index.php%3Fpage%3Darticle%26id%3D80652

 

Note: i know one radical solution they can do RV the dang dinar!!!!!

Edited April 9, 2013 by easyrider

[LIBoy]

Unfortunately, the only rate they are talking about, in my opinion, is to get it back to the 1170 range. According to the article it is now at 1280.

Although the CBI auction has had the 1166 rate for quite some time now so not sure where the 1280 is coming from.

Edited April 9, 2013 by LIBoy

[easyrider]

Unfortunately, the only rate they are talking about, in my opinion, is to get it back to the 1170 range. According to the article it is now at 1280.

that is NO radical solution lol not even up there with tubular or far out.

Edited April 9, 2013 by easyrider

[jeepguy]

seems like even c.b.i. has pumpers from with in it`s own administration   .... the only thing that would be radical ---- 1 too 1  but they are afraid too move away from the u.s.dollar . the average citizen still is not too trusting of the corruption that comes with any thing  radical { i.m.o. }

[gainesm]

seems like even c.b.i. has pumpers from with in it`s own administration   .... the only thing that would be radical ---- 1 too 1  but they are afraid too move away from the u.s.dollar . the average citizen still is not too trusting of the corruption that comes with any thing  radical { i.m.o. }

 

You know...thinking about this, though...wouldn't a 1:1 be both radical as well as getting people to trust more in the Dinar?  If it was set at a 1:1 rate it would definitely allow folks to cash-in big, but not so big as to cause ridiculous levels of worldwide volatility, and would also have the people start seeing the Dinar as every bit as valuable in buying power as the USD is.  Something about that seems so wonderfully obvious, that it clearly can't be what the government will do.

[SocalDinar]

Market rate is 1255 today.

CBI has been selling high cash transactions at their auctions since SHABS left. Its coming close to a weekly all time high this week.

Only hurts the IQD. Easily controlled with policy but yet it continues.

Thanks Easy

[jeepguy]

You know...thinking about this, though...wouldn't a 1:1 be both radical as well as getting people to trust more in the Dinar?  If it was set at a 1:1 rate it would definitely allow folks to cash-in big, but not so big as to cause ridiculous levels of worldwide volatility, and would also have the people start seeing the Dinar as every bit as valuable in buying power as the USD is.  Something about that seems so wonderfully obvious, that it clearly can't be what the government will do.

hey good afternoon buddy ,,, yes it would ,, that was what i was kind of saying that would be a radical movement in dinar value  seeing they haven`t stayed true too any other movement they have promised in past years.....  i do believe your right on the idea if they do go too 1 too 1  all people who are travling through iraq, live in iraq, and deal in dinar,  would have a heck of a better faith in the currency  --- but i think the upper class folks  { parliment  g.o.i.  maliki . no telling who else }  is making a heck of a bank load off just selling the u.s. dollar  ---- yes they sell the oil in u.s.dollars , and it is believed they sell those dollars in the banks , and this attracks more dinar  the larger notes ,, if this is the deal why so long in riseing the  value in dinar ?  who is getting what ???

Market rate is 1255 today.

CBI has been selling high cash transactions at their auctions since SHABS left. Its coming close to a weekly all time high this week.

Only hurts the IQD. Easily controlled with policy but yet it continues.

Thanks Easy

ahhhh thanks social --- yeppers they love too keep the dinar in crap state, and the dollar moving

[gainesm]

hey good afternoon buddy ,,, yes it would ,, that was what i was kind of saying that would be a radical movement in dinar value  seeing they haven`t stayed true too any other movement they have promised in past years.....  i do believe your right on the idea if they do go too 1 too 1  all people who are travling through iraq, live in iraq, and deal in dinar,  would have a heck of a better faith in the currency  --- but i think the upper class folks  { parliment  g.o.i.  maliki . no telling who else }  is making a heck of a bank load off just selling the u.s. dollar  ---- yes they sell the oil in u.s.dollars , and it is believed they sell those dollars in the banks , and this attracks more dinar  the larger notes ,, if this is the deal why so long in riseing the  value in dinar ?  who is getting what ???

 

Yeah, well that's the big question these days I think.  I saw some rumors about how Maliki is trying to get amnesty from prosecution - which made me wonder what kinds of crazy things we'll find out about if he is able to get it.  On the plus side, it could be we're going to find out that Shabibi is going to be put back at the CBI and then start turning things around.  I don't really know a lot of all that history with his removal and his exile, but I've been trying to catch up - and if he was a sound leader at the CBI, then maybe he'll be able to bring us some progress.

[Boozer]

In the coming Day's .

[Nelg]

Any type of movement of the rate toward equality with the dollar would be a radical move; even if it came out at .10 to 1 - IQD! I would take that in a heartbeat compared to what it is now.

[Elixirbaby]

I would take .10 in a Heartbeat. Never look back

[Belecosity]

Radicalll!!!!! TK might have been right!!! :eyebrows:

 

bank screens showing 7 +! now thats rad

[Silverdinar]

The Iraqi market has experienced considerable unrest in recent weeks in the price of the US dollar against the Iraqi dinar as the sale price of one dollar to 1280./finished/8 l. Eng.http://www.microsoft...rticle&id=80652

 

Note: i know one radical solution they can do RV the dang dinar!!!!!

I agree if they would just do the right thing and get Maliki out the way and RV it wouldn't be UNSTAVBLE or in A STATE OF UNREST. JUST DO IT  ( as Nike says)

[Nelg]

Never view a "bank screen" is rose colored glasses. With glasses like that everything comes out the way we want it.

[Tirebiter]

Interesting article Easyrider.  Thanks for bringing it.  What keeps coming back to my mind is look at the currency valuation wars going on in the world and the emphasis on keeping currency values, either real or perceived, artificially low.  There are market effects going on that I don't think any of us ever anticipated regarding currency values.  It used to be that the thought process was you wanted a strong currency.  Now. it seems to increase the value of your exports vs. imports, the idea is to keep your currency value low.  Currency value manipulation seems to be the order right now.  I think we are in for a longer wait.  jmo.

 

It also doesn't help that in Mali, the French President's camel was slaughtered for food. Apparently, the Mali's got tired of waiting for "soon".  lol 

[TQueezy]

A revaluation to over a dollar per dinar would be radical enough to get people to trade in dollars for dinar and stop using the dollar. Since citizens get paid in dinar, de-dollarization would occur, which is a great benefit to their economic situation and also pages the way for lower denominations/coins to be distributed.

[sandfly]

OK

[gainesm]

If you use the US and China as an example, it's a perfect way to see how a trade deficit grows too large to be sustained when the exporting nation's currency is artificially weak.  If China were to just suddenly RV and then let the Yuan free float, it would send the US (and other nations) into a pretty bad spiral of recession.  Over time it would all balance out, but it would not be a fun ride while it lasted.

 

(If I knew anything about economics or finance, the rest of this post might be worth reading - instead, it's just me furrowing my brow and biting on my tongue as I try to reason out what seems to make sense)

 

Luckily there is not that kind of trade deficit for the US with Iraq - if anything, it's the other way around.  But because the USD free floats and Iraq's currency is artificially weak against the USD, if Iraq were to RV it wouldn't send the rest of the world into a recession - though it could cause recession and inflation in Iraq if not managed carefully once it enables a free float or RV.  

 

I would think the other oil producing nations would want to see Iraq's currency appreciate quite rapidly.  The cheaper Iraq can sell its oil (which is pretty darn cheap considering the exchange rate), the more it effects the trade profits of the other oil producing nations.  

 

It is just so odd to me how much they aren't all on the bandwagon to hurry up and get Iraq settled and prospering as quickly as possible - doing so is in everyone's best interests.

[dontlop]

they could  send out lower denominations to the banks ahead of a revaluation of the dinar ..in prepreation for the exchange period.. get the ducks in a row ..

 

then the cbi can change its exchange rates for the  new iraqi dinar that has kurdish language on it ";lower denominations "; . and  peg an exchange rate  to the new iraqi dinars for exchange of the bremmer  while they co-exist ..it could be 100 to one .. it could be 10 to one ..  it could be what ever rate they choose  to peg the bremmer exchange rate ..  the new dinars  official exchange rates with the kurdish language on it  can be different than the bremmers  official  exchange rates  and co- exist with different rates .heck they could use the market value to  exchange them . but i dont see why ,,, that would make people  mad .. the cbi guarentees its official exchange rates ,, they dont guarentee market rates . i really dont think theres very many phisical notes left on the streets ,, they do have   digital  bremmers    that would be instantly converted by decree .

 

 by decree  a rate can be exchanged  over night .. its a matter of an official  announcement  by the cbi . thats the way official exchange rates  set by a central bank are changed ,, unless they are free floating  exchange rates .. .. the last i heard the cbi is using a stablized  exchange rate regime ... what ever that means. it moved from  a crawling peg .. to a stablized arrangemet in 2009

[Biker]

Easy , I feel this way about it, Maliki bumped Shebbs out of the way so the market would go crazy, that way he could let Iran his home boys buy up as much as they need wile having sanctions against them. Now all the sudden Sebbs is back and claims of false charges by some one other then Maliki is being talked .I'm not to sure we will see a real Rate change for a wile yet with Syria and Iran scooping it up. And the boys in the sand box like playing craps with 2 moneys .

[RVPleaseToday]

"A revaluation to over a dollar per dinar would be radical enough to get people to trade in dollars for dinar and stop using the dollar."

 

Why would an RV encourage someone in Iraq to trade in dollars for dinar?

[Reelemfast]

I think Maliki IS the reason why this R.V. has not happened. He does not like the idea of

Americans making money of there currancy. He knows whats going on and hes got his

(kissing buddys) right on top of this all the time. He will delay this R.V. as long as he can.

Biker is right on with playing with 2 currancy, i think it would be a nightmare to have 2 currancy's.

I don't think were going to see a R.V. for along time. I hope there is no plans to print New currancy in

the future, that would end this investment.

Pray for God to put Wisdom in the minds of the leaders of Iraq and it's people, for them to do what is

right for there country.

I'm going fishin.

[hame55]

Unfortunately, the only rate they are talking about, in my opinion, is to get it back to the 1170 range. According to the article it is now at 1280.

Although the CBI auction has had the 1166 rate for quite some time now so not sure where the 1280 is coming from.

Of course this is only the low rate talk...however, why are they worried about the dinar fluctuating a few hundred pips when most of their business is in dollars? It's tied to the dollar and the dollar moves....so what's the big wiff?

 

Is there anything else behind this...such as they are tiring of moving between two currencies, auctions, rates, etc and are ready to use the IQD?

hey good afternoon buddy ,,, yes it would ,, that was what i was kind of saying that would be a radical movement in dinar value  seeing they haven`t stayed true too any other movement they have promised in past years.....  i do believe your right on the idea if they do go too 1 too 1  all people who are travling through iraq, live in iraq, and deal in dinar,  would have a heck of a better faith in the currency  --- but i think the upper class folks  { parliment  g.o.i.  maliki . no telling who else }  is making a heck of a bank load off just selling the u.s. dollar  ---- yes they sell the oil in u.s.dollars , and it is believed they sell those dollars in the banks , and this attracks more dinar  the larger notes ,, if this is the deal why so long in riseing the  value in dinar ?  who is getting what ???

ahhhh thanks social --- yeppers they love too keep the dinar in crap state, and the dollar moving

Yes! They idea is to figure out who is getting what. The GOI must be happy making money as they are - without an RV - perhaps they really are waiting until the infrastructure/politics are right and meanwhile they make plenty on spreads, corruption etc