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IQD VALUE rapidly DETERIORATES FROM 1220 DINAR to 1300 DINAR ( more than 11% )! Wouw. Omg.


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IQD value rapidly deteriorates

 

Tuesday, 14 May 2013 20:53
 
 

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Baghdad (AIN) -The price of the US dollar in the local markets reached 1,300 Iraqi dinars, compared to 1220 dinars in mid-March and represents a significant reduction of the Iraqi dinar’s value since the two last years.

 

 

It is known that the official price of the USD until this day, according to the Central Bank of Iraq is IQD 1166 and that means that the value of the Iraqi dinar has reduced more than 11%.

 

 

According to representatives of All Iraq News Agency (AIN), this decline has led to increasing prices for a lot of goods in local markets and especially the imported ones.

 

 

The central bank has promised to take measures to stabilize the value of the dinar as it was in the past, but the degradation rate of the dinar continued for up to 1,300 dinars per dollar.

 

 

Employees and retirees who receive their salaries in dinars complain from inflammation of prices since their salaries are no longer sufficient to meet their needs and that the rise in prices has included real estate and rentals, as well as transportation, food and clothing.

 

 

Many believe that the growing demand to buy the dollar from local markets has led to this significant decline in the price of the dinar.

 

 

This is attributed to smuggling the USD sold daily by the Central Bank of Iraq to Syria and Iran, which face financial sanctions and their growing need to hard currency.

 

 

The Iraqi Central Bank announced short period before new measures to restrict the availability of U.S. currency in markets, amid suspicions over possibility of smuggling large amounts of hard currency from Iraq for neighboring countries. /End/

 

 

 

THE LINK : http://www.alliraqnews.com/en/index.php?option=com_content&view=article&id=33949:iqd-value-rapidly-deteriorates-&catid=37:economy&Itemid=41

 

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Thank for the post Al Bundy.

 

With a deteriorating rate, one would have to wonder that the supply obviously outweighs the demand. While that observation may be obvious, how does one go about maintaining or increasing the demand?

 

If a seller does not prefer dinars, or prefers dollars over dinars, that will likely hurt demand as customers may likely prefer to use dollars over dinars for use of payments.

As the trend continues, you see a ripple effect continue as more sellers do not prefer dinars, therefore less customers prefer to use dinars for making purchases.

 

Many factors may play a role in the demand for a currency.

Obviously where it is accepted plays a large role. (Look at the dollar, it is nearly accepted everywhere & the global demand for the dollar is high).

Stability plays a role as well (Why hold something that is losing value if you can use a different form of currency to prevent loss of wealth).

 

You could chop off the zeros, but in my opinion it is more of a status quo and the Psych of the minds of those that use the currency would continue their own status quo. Which would simply lead to people requesting 1.3 dinars for every $1.

 

I think the official rate needs to be increased... The people who use IQD need to see a trend that their dinars are slowly buying more and more. The appreciation does not need to be so high of a % as it causes hoarding of their cash (That is obviously not a good thing). But, what the currency should represent is their growing economy.

 

I think this would look good for foreign investors too. It gives them more data to show that making any investments into the country could provide some reasonable results. Obviously if their own currency is appreciating, any revenues made by doing business could only improve as well.

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KUWAIT Dinar dipped way down, They even said tha Amir was sick and getting worse.

Just before BOOOOOOM HUGE jump up in value.

 

Well........in Iraq, it's Maliki. :) 

 

"..............Maliki in Tehran to carry out heart surgery

May 13, 2013 in the political

Baghdad / Iraq News Network A source from within the Office of the Prime Minister in a telephone interview with the "Iraq News Network" on Monday, that al-Maliki has been subjected to severe heart crisis due to a large blockage in the coronary artery causing prevent normal blood flow to the heart........? 

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If they just raised the official exchange rate of the dinar to like 1000:1 or 500:1 they would have something to work with to see if the citizens respond to it and further appreciation may be needed.

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Sometimes in stocks this a major drop in value means a up rise is about to happen. Just like how gold and silver dropped and I'm sure the sky rocket is goin to happen as the dollar DV

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Sometimes in stocks this a major drop in value means a up rise is about to happen. Just like how gold and silver dropped and I'm sure the sky rocket is goin to happen as the dollar DV

Do you think the dinar will rise in value if the dollar drops when it happens to be pegged to the dollar?

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Brisco : let's hope the IQD willl jump up in value.

 

 

Darin :  " I think this would look good for foreign investors too " , I like your positive thinking. Keep it up.

 

 

FarmersDaughter: "  Last ditch effort to make all of us sell all of our dinars before they RV " , may be that is what they plan to do.

 

 

JMULS31:  " Sometimes in stocks this a major drop in value means a up rise is about to happen " , you may be right and the questions are just " when " and " what rate " they are going to RV at... What we can do now is just wait and see.

 

 

DinarThug : you always make me laugh LOL.

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Exactly what I would do! Last ditch effort to make all of us sell all of our dinars before they RV.Wouldn't it be nice if that were really true? Oh well, I tried to put a positive spin on it.

you have hit the nail on the head. Do not sell your dinars!!!!!
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Do you think the dinar will rise in value if the dollar drops when it happens to be pegged to the dollar?

Keep, we know that the dinar is pegged to the dollar. But my questions is, if the dollar rises in value why doesn't the dinar?  

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Keep, we know that the dinar is pegged to the dollar. But my questions is, if the dollar rises in value why doesn't the dinar?

BINGO! Exactly what I was wondering. Up until recently it has, but the dollar is strong as of late and the dinar has not necessarily followed suit.
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staunch:  " but the dollar is strong as of late and the dinar has not necessarily followed suit " , Why? May be I say may be because IQD hasn't traded internationally yet and IQD has still been considered a worthless currency , therefore the IQD can't follow suit with the other foreign currencies that have already traded internationally, like the dollars.or pounds or kuwait dinar. Please correct me if I am wrong.

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BINGO! Exactly what I was wondering. Up until recently it has, but the dollar is strong as of late and the dinar has not necessarily followed suit.

To put it simply .... The dinar is at a pegged value which happens to be 1166 to $1 ..... No matter how the dollar increases in value in relation to other curriencies like say the euro or the pound , the dinar will always be 1166 to $1 unless the CBI change it .

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To put it simply .... The dinar is at a pegged value which happens to be 1166 to $1 ..... No matter how the dollar increases in value in relation to other curriencies like say the euro or the pound , the dinar will always be 1166 to $1 unless the CBI change it .

Not for the Iraqi citizen who has to fork over $1,300 Dinars for every $1 USD for goods and services.  This 134 IQD gap is what all of the hubbub is about= A 11% devaluation of the dinar against the Pegged rate.

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Not for the Iraqi citizen who has to fork over $1,300 Dinars for every $1 USD for goods and services. This 134 IQD gap is what all of the hubbub is about= A 11% devaluation of the dinar against the Pegged rate.

Yes they have to deal with the local market rate ... It's pretty much always been that way

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Keep, we know that the dinar is pegged to the dollar. But my questions is, if the dollar rises in value why doesn't the dinar?  

It does.....check out the forex pairings....

 

The value of the dinar fluctuates due to the value of the dollar going up and down. While yes, the CBI has the dinar at a locked rate right now, if it wasnt, you would be seeing the "official" value swinging up and down

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Another article complaining about the dinar value.  They know what they need to do, including the confidence of the people.  But there are political forces who work for Iran that will hinder their every effort.   But on a good note, the game changers are gaining momentum over these evil folks.  They will die trying to get Iraq respected in the world community, and work towards dealing with those who have tried to destroy their every effort of progress.

 

It appears that like Shabibi said if you don't allow me to implement my plan you will be crippling the economy, and Shabibi even threatened to sue the GOI.  

Shabibi knew that his plan for the monetary policy of Iraq and to increase the value of it had a bottom line date to implement.  But the politics took over and Iraq gets rid of Shabibi.  

 

Now the CBI under new management and doing the work of the GOI and not Shaibibi's, plan which puts Iraq's economy and currency at risk.  I believe they are at the bottom line date to either implement Shabibi's plan or come up with a new plan.  It appears they are not doing so good at it right now.  Duh, the management is not qualified.   

Edited by uncirculd
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The new CBI management is doing the same thing Shabibi did, actually even greater auctions, so that argument doesn't work. The citizens want more USD. The GOI and CBI want the dinar to be strong and de-dollarize Iraq. Only way to do that is increase the value of the IQD.

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