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dontlop

can anyone produce a link that says the dinar is pegged to the dollar ?

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ive seen the dinar was a defacto peg .. then it turned into a crawling peg for a couple years . then it said it was now a stablized arrangement ..

 

 never saw any official  listing that the dinar was pegged to the dollar .. when i ask some people  who say it is pegged  if they got a link..they ask me a question .. or  just say it is..

 

im wondering if someone has a link from the cbi that says its pegged to the dollar

 

 

ive been reading and what im seeing alot is that the exchange rate is stablized by the cbi currency auctions ..

 

well thats what the imf says .. its a stablized  arrangement ..no where  does anyone say its pegged to the dollar  on anything official anywhere that i know of ..

 

i got one link ..and it says it was a free floating currency

 

 

 

  The New Iraqi Dinar (NID) - a free floating currency - was introduced in January 2004 together with a new monetary control system. http://www.iraqitic.com/iraqiTIC_policyEnvironment_ar.php

 

 

 

.. thats all i got besides the imf  link that says its a stanblized arrangemet

 

 

 

 

IM WONDERING IF THEIR IS SUCH A LINK ?  THATS MY QUESTION ON THE DINAR

 

MY SECOND QUESTION IS ,,  COULD YOU PLEASE POST IT ..

 

IM NOT LOOKING FOR A UNSUBSTANTIATED EXPLAINATION .. I ALREADY HEARD THAT A BUNCH OF TIMES ..  im looking for  documented proof . it makes a differance  on any revaluation speculations .

 

 

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if no link is produced ,, everytime one of those people tell you your dinar has to be backed by foriegn reserves ..  because its pegged to the dollar .. ask them for a link that says its pegged  to the dollar .

 

they will not show me any link .so far

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No link. but ifit was free floating....the exchange rate would constantly move. it appears to be fixed/pegged tothe dollar on a dirty float.

of course you probably already noticed it. hopefully someone can find out

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the cbi shows a few currencys on their site for comparison   .. as well as the sdr  rate .. which is a basket  of currencys .. the SDR was redefined as a basket of currencies,today consisting of the euro, Japanese yen, pound sterling, and U.S. dollar.


the only other link i got is the imf >>
 
http://www.imf.org/e...2011/cr1175.pdf


same link...page 54 ... it talks about its defacto peg ...

IX. Exchange rate arrangement:
The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis
since October 4, 2003. The central bank followed a policy of exchange rate stability which
has translated in a de facto peg of the exchange rate since early 2004. However, from
November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate.
As a result, the exchange rate arrangement of Iraq was reclassified to the category of
crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its
earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of
Iraq was reclassified effective January 1 2009 as a stabilized arrangement
.

Edited by dontlop
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dontlop, the dinar is pegged to the dollar. It is obvious. I don't understand your obsession with definitions.

 

I'll throw one of your own tactics back at you. Prove to me that the Dinar is NOT pegged to the dollar.

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De Facto Classification of Exchange Rate Regimes and Monetary Policy Framework

Data as of July 31, 2006

1. This classification system is based on members' actual, de facto, arrangements as identified by IMF staff, which may differ from their officially announced arrangements. The scheme ranks exchange rate arrangements on the basis of their degree of flexibility and the existence of formal or informal commitments to exchange rate paths. It distinguishes among different forms of exchange rate regimes, in addition to arrangements with no separate legal tender, to help assess the implications of the choice of exchange rate arrangement for the degree of monetary policy independence. The system presents members' exchange rate regimes and monetary policy frameworks to provide greater transparency in the classification scheme and to illustrate the relationship between exchange rate regimes and different monetary policy frameworks. The following explains the categories.

Exchange rate regimes

Exchange arrangements with no separate legal tender

2. The currency of another country circulates as the sole legal tender (formal dollarization), or the member belongs to a monetary or currency union in which the same legal tender is shared by the members of the union. Adopting such regimes implies the complete surrender of the monetary authorities' control over domestic monetary policy.

Currency board arrangements

3. A monetary regime based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. This implies that domestic currency will be issued only against foreign exchange and that it remains fully backed by foreign assets, leaving little scope for discretionary monetary policy and eliminating traditional central bank functions, such as monetary control and lender-of-last-resort. Some flexibility may still be afforded, depending on how strict the banking rules of the currency board arrangement are.

Conventional fixed peg arrangements

4. The country pegs its currency within margins of ±1 percent or less vis-à-vis another currency; a cooperative arrangement, such as the ERM II; or a basket of currencies, where the basket is formed from the currencies of major trading or financial partners and weights reflect the geographical distribution of trade, services, or capital flows. The currency composites can also be standardized, as in the case of the SDR. There is no commitment to keep the parity irrevocably. The exchange rate may fluctuate within narrow margins of less than ±1 percent around a central rate—or the maximum and minimum value of the exchange rate may remain within a narrow margin of 2 percent—for at least three months. The monetary authority maintains the fixed parity through direct intervention (i.e., via sale/purchase of foreign exchange in the market) or indirect intervention (e.g., via the use of interest rate policy, imposition of foreign exchange regulations, exercise of moral suasion that constrains foreign exchange activity, or through intervention by other public institutions). Flexibility of monetary policy, though limited, is greater than in the case of exchange arrangements with no separate legal tender and currency boards because traditional central banking functions are still possible, and the monetary authority can adjust the level of the exchange rate, although relatively infrequently.

Pegged exchange rates within horizontal bands

5. The value of the currency is maintained within certain margins of fluctuation of more than ±1 percent around a fixed central rate or the margin between the maximum and minimum value of the exchange rate exceeds 2 percent. As in the case of conventional fixed pegs, reference may be made to a single currency, a cooperative arrangement, or a currency composite. There is a limited degree of monetary policy discretion, depending on the band width.

Crawling pegs

6. The currency is adjusted periodically in small amounts at a fixed rate or in response to changes in selective quantitative indicators, such as past inflation differentials vis-à-vis major trading partners, differentials between the inflation target and expected inflation in major trading partners. The rate of crawl can be set to adjust for measured inflation or other indicators (backward looking), or set at a preannounced fixed rate and/or below the projected inflation differentials (forward looking). Maintaining a crawling peg imposes constraints on monetary policy in a manner similar to a fixed peg system.

Exchange rates within crawling bands

7. The currency is maintained within certain fluctuation margins of at least ±1 percent around a central rate—or the margin between the maximum and minimum value of the exchange rate exceeds 2 percent—and the central rate or margins are adjusted periodically at a fixed rate or in response to changes in selective quantitative indicators. The degree of exchange rate flexibility is a function of the band width. Bands are either symmetric around a crawling central parity or widen gradually with an asymmetric choice of the crawl of upper and lower bands (in the latter case, there may be no preannounced central rate). The commitment to maintain the exchange rate within the band imposes constraints on monetary policy, with the degree of policy independence being a function of the band width.

Managed floating with no predetermined path for the exchange rate

8. The monetary authority attempts to influence the exchange rate without having a specific exchange rate path or target. Indicators for managing the rate are broadly judgmental (e.g., balance of payments position, international reserves, parallel market developments), and adjustments may not be automatic. Intervention may be direct or indirect.

Independently floating

9. The exchange rate is market-determined, with any official foreign exchange market intervention aimed at moderating the rate of change and preventing undue fluctuations in the exchange rate, rather than at establishing a level for it.

Monetary policy framework

Exchange rate anchor

10. The monetary authority stands ready to buy or sell foreign exchange at given quoted rates to maintain the exchange rate at its preannounced level or range; the exchange rate serves as the nominal anchor or intermediate target of monetary policy. This type of regime covers exchange rate regimes with no separate legal tender; currency board arrangements; fixed pegs with and without bands; and crawling pegs with and without bands.

Monetary aggregate anchor

11. The monetary authority uses its instruments to achieve a target growth rate for a monetary aggregate, such as reserve money, M1, or M2, and the targeted aggregate becomes the nominal anchor or intermediate target of monetary policy.

Inflation targeting framework

12. This involves the public announcement of medium-term numerical targets for inflation with an institutional commitment by the monetary authority to achieve these targets. Additional key features include increased communication with the public and the markets about the plans and objectives of monetary policymakers and increased accountability of the central bank for attaining its inflation objectives. Monetary policy decisions are guided by the deviation of forecasts of future inflation from the announced target, with the inflation forecast acting (implicitly or explicitly) as the intermediate target of monetary policy.

Fund-supported or other monetary program

13. This involves implementation of monetary and exchange rate policies within the confines of a framework that establishes floors for international reserves and ceilings for net domestic assets of the central bank. Indicative targets for reserve money may be appended to this system. Countries that maintain nominal anchors, exchange rate anchors, monetary anchors, or inflation targeting frameworks are classifies under those respective rubrics.

Other

The country has no explicitly stated nominal anchor but rather monitors various indicators in conducting monetary policy, or there is no relevant information available for the country.

it doesnt say ..it just says stablized arrangement

 

on the imf link

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So it went back to a peg in 2009?

 ya it does look like that . thanks

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they must got some dufis sitting over at the iraqi trade information center making up lies ... his link says its a free floating currency

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i think it could be number 10 ....11 ...or 13 ....on that list



If it were free floating it would be traded on Forex. It's not.

geez  i remember someone saying thats how the swiss dinar kept its rates .. they said after it was demonetized it was a free floating currency ..lol



Look at the currency auctions, dontlop. What are they buying and selling? Pesos?

ya that would explain its exchange regime especially if they sold oil in petropesos ..hey look at russia

 

"On Friday, Sept. 7, Russia announced, that as of today, we will supply China with all of the crude oil that they need, no matter how much they want... there is no limit. And Russia will not sell or trade this crude oil to China using the American dollar."



iraq could be next seling oil in dinars

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dontlop, here is a link that states that the Iraqi dinar (IQD) is pegged to the US dollar (USD) ~ several times: http://en.wikipedia.org/wiki/Iraqi_dinar

 

You’ll have to read the “History” section to find the following:

 

The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars.

 

The Dinar is currently pegged to the dollar at a rate of 1166/1164 (sell/buy) dinars per dollar as can be seen on the Central Bank Of Iraq's home page.

 

The exchange rate reportedly available on the streets of Iraq is around 1200 dinars per US dollar.

 

The IMF as part of the rebuilding of Iraq is monitoring their finances and for this purpose uses a single rate (not a sell/buy) of 1170 dinars per dollar.

 

 

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If you look on XE you can clearly see what the base currency is.....the U.S. dollar. If it was a market driven float, you would see it change on the UN operational rates, but it is not. The 1166 you see at the cbi is a change in relation to local market price to keep the dinar from sliding further in value to the dollar....locally, in country. Plus, it helps the cbi make a little more money....about 4 dinars more per US dollar. It has nothing to do with international trade. It's a sanctioned currency. Period. Pegged to the dollar for stability. However, that policy can change with a stroke of a pen and a change in international status, I.e. chapter 7.

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dontlop, the dinar is pegged to the dollar. It is obvious. I don't understand your obsession with definitions.

 

I'll throw one of your own tactics back at you. Prove to me that the Dinar is NOT pegged to the dollar.

 

RVPT...........Is that a double dog dare ???

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dontlop, the dinar is pegged to the dollar. It is obvious. I don't understand your obsession with definitions.

 

I'll throw one of your own tactics back at you. Prove to me that the Dinar is NOT pegged to the dollar.

i thought it was an honest question...andi think he found his answers. Thanks for your input....very helpful as well

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dontlop, the dinar is pegged to the dollar. It is obvious. I don't understand your obsession with definitions.

 

I'll throw one of your own tactics back at you. Prove to me that the Dinar is NOT pegged to the dollar.

i can tell your facinated by it .. you seem to want to follow me everywhere on this site .

 

im not saying it isnt pegged to the dollar ..i ask a question and these are the types of responses you always give .. nothing as usual ..

 

you seem to be obsessed with me .. ..  .. as far as i know your not the police here .. why pretend you are ..

 

if i make a statement and someone like you says my statements are false .. and i ask you to prove to me that what im saying is false .. and you cant .. that means your are the one making false statements .. .. have a bite of that .

i guess you wouldnt concider what your behavior on this topic as a personal attack on me would ya

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ive seen the dinar was a defacto peg .. then it turned into a crawling peg for a couple years . then it said it was now a stablized arrangement ..

 

 never saw any official  listing that the dinar was pegged to the dollar .. when i ask some people  who say it is pegged  if they got a link..they ask me a question .. or  just say it is..

 

im wondering if someone has a link from the cbi that says its pegged to the dollar

 

 

ive been reading and what im seeing alot is that the exchange rate is stablized by the cbi currency auctions ..

 

well thats what the imf says .. its a stablized  arrangement ..no where  does anyone say its pegged to the dollar  on anything official anywhere that i know of ..

 

i got one link ..and it says it was a free floating currency

 

 

 

  The New Iraqi Dinar (NID) - a free floating currency - was introduced in January 2004 together with a new monetary control system. http://www.iraqitic.com/iraqiTIC_policyEnvironment_ar.php

 

 

 

.. thats all i got besides the imf  link that says its a stanblized arrangemet

 

 

 

 

IM WONDERING IF THEIR IS SUCH A LINK ?  THATS MY QUESTION ON THE DINAR

 

MY SECOND QUESTION IS ,,  COULD YOU PLEASE POST IT ..

 

IM NOT LOOKING FOR A UNSUBSTANTIATED EXPLAINATION .. I ALREADY HEARD THAT A BUNCH OF TIMES ..  im looking for  documented proof . it makes a differance  on any revaluation speculations .

you can't just ask for a link, heck i could throw up a blogger blog and say it is in about 30 seconds. a credible link from the cbi, credible news organiztion if that exists anymore or a government agency.

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dontlop, here is a link that states that the Iraqi dinar (IQD) is pegged to the US dollar (USD) ~ several times: http://en.wikipedia.org/wiki/Iraqi_dinar

 

You’ll have to read the “History” section to find the following:

 

The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars.

 

The Dinar is currently pegged to the dollar at a rate of 1166/1164 (sell/buy) dinars per dollar as can be seen on the Central Bank Of Iraq's home page.

 

The exchange rate reportedly available on the streets of Iraq is around 1200 dinars per US dollar.

 

The IMF as part of the rebuilding of Iraq is monitoring their finances and for this purpose uses a single rate (not a sell/buy) of 1170 dinars per dollar.

 ya i saw that wiki leak thing . its been edited so many times ,, check out the edit history    it could be true  but im not convinced ..  1959 ?

 

the euro has a rate on the cbi page ,, severl currencys  are listed . as well as the sdr .. i was thinking more of a sdr  anchor of some kind  a basket .. it moves every day when paired against the dollar , ive seen it any where from 1128 to 1165 on xe  exchange  recently  when paired against the dollar .. its emailed to me every day .

 

 iraq  changed their exchange regime three times  in the last 10 years ..

 

 

the iraqi trade commision .. is trying to promote iraq  has listed on its site a free floating currency that is fully convertable  .. why would they intentionally lie to potential prospects on its web site .

 

thanks for the links  ...i saw those already  it doesnt say its pegged to the dollar on the cbi page , it shows multiple currency exchange rates

i was looking for an oficial link that actually says the dinar is pegged to the dollar

it most likely is pegged to the dollar  but why the fluctuations  between the two  when pairing them? i thought it may be anchored to the sdr .. . but who knows . its probably pegged to the dollar thats the best i can do ,, i cant swear to it ..

 

heres something  that adds to the thought

 

 

Given that 97.8% of the world’s reserves have been held

in the U.S. Dollar,Euro, Yen and British Pound since 2000, some authors have included the British

Pound as a potential anchor currency in addition to the G3 currencies (Patnaik et al.,

2011). Other major trade partners could be potential anchor currencies as well, but if

the trade is denominated in dollars or another major currency, as it is mostly, then in

that case the trade partner might not be a potential anchor as the home currency

benefits from stabilizing its exchange rate against the currency in which the trade is

denominated.

Edited by dontlop

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another potential anchor 

we must analyze

whether regional currencies play an important role in the currency baskets 

 

everyone thinks they need a dinar with  a value equal to the region



 i quit .

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1950 - 1990

In 1956 the National Bank of Iraq became the Central Bank of Iraq. Its responsibilities included the issuing and the management of currency, control over foreign exchange transactions, and the regulation and supervision of the banking system. It kept accounts for the government, and it handled government loans. Over the years, legislation has considerably enlarged the Central Bank's authority. In 1959 the peg was switched from the British pound to the United States dollar at the rate of 1 dinar = 2.8 dollars.

http://cbi.iq/index.php?pid=History

 

The peg has not changed since 1959

Edited by MrFnHappy

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If you look on XE you can clearly see what the base currency is.....the U.S. dollar. If it was a market driven float, you would see it change on the UN operational rates, but it is not. The 1166 you see at the cbi is a change in relation to local market price to keep the dinar from sliding further in value to the dollar....locally, in country. Plus, it helps the cbi make a little more money....about 4 dinars more per US dollar. It has nothing to do with international trade. It's a sanctioned currency. Period. Pegged to the dollar for stability. However, that policy can change with a stroke of a pen and a change in international status, I.e. chapter 7.

the dollar is the base currency for the entire monetary system .. one dollar equals one monetary unit .. that is the constant that never changes ..

 

you can go to  the un .. official exchange rates and punch in the us dollar .. look at its history .. it is 1.00000 .......always was always will be ..1.00000

everey country  goes off the dollar .

 

try this .. on this link ..   http://www.unjspf.org/UNJSPF_Web/page.jsp?page=FullExchangeRts

 

 its a un pension  currency exchange rate calculator .. go in and put in any country .. but first try the united states   and look at the history ..

 

where it says country   .. put in any country  with your mouse .. the history of any country comes up in a couple seconds ..

 

the united states  rate is  1.00000 in every catagory  for every years ..no other country in the world has that status  

 

after the us .. put in iraq ..

this link gives a better picture that why i use it ..

up to 1997 you can clearly see the peg of the dinar  to the dollar on that link

after 1997 .. not so much

it has stablized in 2010 again .. att 1170

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