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Looks Like Kaperoni is Wrong!

coolbeans
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coolbeans Newbie

coolbeans

Posted
Posted

Looks like the speculation from Kaperoni and Ennorset was wrong. 

 

They had come to the conclusion that the IQD was going to be a float but according to todays statement   from the Governor of the CBI to parliament the IQD will be pegged to the USD.

 

Note: A "Set dollar exchange rate" is a hard peg to the USD.

 

 

 

The Presidency of the Council of Representatives meets Governor of the Central Bank and the Agency

 

Sunday 12 May 2013

Met with the Presidency of the Council of Representatives, headed by Mr. Osama Abdel Aziz al-Najafi, head of the Council and in the presence of Dr. Qusay al-Suhail, First Deputy Chairman of the House of Representatives and Mr. Aref Tayfur, Vice President of the Council on Sunday 05/12/2013 Mr. Abdul Basit Turki, head of the Office of Financial Supervision and the Governor of the Central Bank of Iraq and the agency. 

And the Presidency of the Council expressed during the meeting its full support for the central bank to scrutinize the work of private banks and archiving of information within the bank and reform measures that include a set dollar exchange rate and the reduction of the phenomenon of money laundering and strengthen the capacity of the central bank in economic development. 

The meeting dealt with the role of the House of Representatives in issuing decisions in order to protect Iraq's money for the next year and address the issue of debt and push focus of the international effort to protect Iraqi funds abroad.

The information department 
Iraqi Council of Representatives 
05/12/2013

 

http://translate.google.com/translate?hl=en&ie=UTF8&rurl=translate.google.com&sl=ar&tl=en&u=http://www.parliament.iq/

 

__________________

 

 

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PA10 Newbie

PA10

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Posted

Folks, for us it's not about the "Peg", it's all about "rate" we simply need to see a meaningful revaluation. See entire article at: http://www.wealthdaily.com/articles/iraqi-dinar-stabilization/4215

 

 

"By controlling the amount of USD available in Iraq, the Iraqi government controls the value of the USD relative to its own currency, thereby stabilizing the dinar. It is as close as you can get to an outright currency peg".

 

 

 

CBI Control

One short sentence answers all these questions: the Central Bank of Iraq regulates the flow of money through controlled auctions.

july-2011-new-iraqi-dinar-50.jpgNeedless to say, this is not normal. In most other countries, money can be easily exchanged into a number of currencies at the will and whim of any citizen. The exchange rates are allowed to move freely according to the forces of supply and demand, interest rates, etc.

According to Middle East e-paper Al-Monitor:

The purpose of these auctions is to control the IQD:USD exchange rate by controlling the amount of USD circulating in Iraq. At these auctions, USD is issued exclusively to banks, companies and traders for the purpose of conducting business transactions with foreign entities (ie: importers, securities traders, banks, etc).

“Every day since 2004, the CBI has held an auction through which hard currency is sold to banks, companies and traders in exchange for evidence of import and transaction receipts. The auctions aim to prevent market speculation and stabilize the exchange rate of Iraqi dinars to the US dollar.”

By controlling the amount of USD available in Iraq, the Iraqi government controls the value of the USD relative to its own currency, thereby stabilizing the dinar. It is as close as you can get to an outright currency peg.

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jeepguy Mentor

jeepguy

Posted
Posted (edited)

thanks for the post ---  set at a dollar exchange rate--- doesn`t really say it is pegged to the dollar , in the paragraph, maybe  they are leaning toward ,  ---- the set exchange is either 1 dollar, 2 dollar, or 3 -------> anywhere in between is jim dandy :peace:  ,,, lets  hope it is in the tomorrow bracket and not the soon area !   tomorrow bayyyyyyyyyy beeeeeeeee

Edited by jeepguy
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umbertino Grand Master

umbertino

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I had a feeling they would be wrong .... they have been a few times in the past.

 

Lets just hope that set exchange rate to the dollar is somewhere in the $1 to 1 dinar range lol

Let's hope it's in that range... As long as they don't lop.

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sundog Newbie

sundog

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Sorry people but you are confusing 2 different topics. The banks have been overcharging their customers when they try to buy dollars to do business. Remember - 80% of Iraqi's DO NOT use the banks. The businesses go to the bank with their Dinar and buy dollars for that is what they need to run their business. The banks are gouging them. They are overcharging them for dollars. It is unfair business practices. The exchange rate mentioned in the above rate has nothing to do with raising the value of the Dinar. Has nothing to do with an RV. You are reading too much into every bank story. Yes, problems would be solved in Iraq if they would just RV but that article does nothing to raise the value of the dinar just trying to make it a fair exchange.

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The Machine Newbie

The Machine

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Sorry people but you are confusing 2 different topics. The banks have been overcharging their customers when they try to buy dollars to do business. Remember - 80% of Iraqi's DO NOT use the banks. The businesses go to the bank with their Dinar and buy dollars for that is what they need to run their business. The banks are gouging them. They are overcharging them for dollars. It is unfair business practices. The exchange rate mentioned in the above rate has nothing to do with raising the value of the Dinar. Has nothing to do with an RV. You are reading too much into every bank story. Yes, problems would be solved in Iraq if they would just RV but that article does nothing to raise the value of the dinar just trying to make it a fair exchange.

 

 

I think you have that the wrong way around..... the CBI has been selling dollars to businesses at the rate of 1166IQD to $1 , while the street value for the dinar that these businesses use is around 1250 IQD to the dollar .

 

who comes out better off .... the people that buy at the auctions ...... there buying more dollars for less than market value dinar.

 

The CBI could charge 1250 but that would defeat their main goal which is to stabilize the currency, so they continue selling dollars in exchange for dinars at there program rate of 1166

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sundog Newbie

sundog

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Just a thought - that the banks charging more dinars for dollars could possibly be their way of retaining more dinars for themselves. Not just the CBI - I'm talking the other banks that buy from the CBI and then turn around and sell the dollars to their customers at a much higher rate and there is no one to stop them. They know there will be an RV so they are hording the dinar and also getting more of it off the streets. The buyer has no choice but to pay the rate because they have no where else to buy from. It's not what the banks pay the CBI it's what the banks charge their customers.

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