SWFG (5-29-13) Forex Rumors Are Back

[SWFloridaGuy]

5-28-13 SWFloridaGuy: I got two emails tonight saying the IQD was showing live on Forex. I know I've said this before but will reiterate it for the last time for the newbies so they don't go out and spend their life savings tomorrow. I know they are Nesara and WGS followers, which means most likely we will here this same rumor from the rest of the usual suspects shortly.

 

I will lay out the actual process that a revaluation must go through before it can go live to try to help clear up some confusion. Looking for the IQD on a paid Forex account (or an imposter account such as Netdania, Yahoo Finance etc.,is a futile exercise. The IQD is not traded on Forex and will not show up there first.

 

Sites which are not forex brokers/marketmakers and a poor proxy for volume, riddled with anomalies that lead to frequent chat room agitation that usually coincide with trading session openings. The spikes are directly related to the volatility of the USD or simply malfunctions.

 

Expect to change in value and place a trade but what matters to us is that the IQD is not freely traded and is not being used in any significant international transaction or on any legitimate foreign exchange, although there are plenty of dealers around the world, which are largely unregulated.

 

This will not show up suddenly and start trading on Forex, that much I can promise you from speaking about this at great length with professionals who know far more about this then myself. When a country/Reserve bank changes the value of a currency there are certain procedures that will take place long before it starts trading on Forex.

 

Here are the actual steps we should be looking for: when the time comes the CBI will get the signal from the Executive and legislative branches to initiate the implementation. Once they get the go ahead they will set a goal rate then send it to the BIS for approval.

 

At this point the BIS subcommittees (Central Bank members) will approve the target rate and regulate capital. Once approved the new rate will be sent to all central banks around the world simultaneously and this is when you will get the first opportunity to see the rate.

 

The CBI will be able to intervene through regulatory powers and control the money supply and work to keep the IQD near the official (most likely unofficial actually) target rate. Only at this point can we can expect to see a substancial arising onto the foreign exchange market.

 

I hope this serves to clear up the confusion and isn't taken as being "negative" because I do believe that one day (hopefully very soon), the IQD will be going international along with accomplishing other important matters such as WTO accession and Chapter VII release but only after time and only after they initiate their currency reform project.

 

But until that day, our focus is probably better spent elsewhere. Many make the claim that "the IQD is already listed on the Thai Interbank. This market is an important segment of the foreign exchange marke and it's already being traded. and that it doesn't matter that it's not traded on the Forex.

 

I'll expound a bit more but I'd rather accentuate Iraq's sumptuous economic growth (ranked 1 or 2 in the world; sources vary), and aspects relating to their emergence on the international scene that are encouraging and probably more deserving of our attention. So, we all agree now that the IQD is not traded on Forex and now the theory is it would be a seamless transition where it could show up on Forex first because it is already being traded on an important foreign exchange market.

 

Well, I would like to see the trades/volume they are referring to and then have it explained to me how that relates to the fact that the IQD is not internationally recognized, convertible, available to trade on any Forex market and why international banks will not accept the Iraqi Dinar.

If we're going to focus on the Thai Interbank the first thing we have to understand is that for an Interbank market to exist, a competitive banking system and an efficient payment and settlement system linking banks together is required. Iraq has neither.

 

The Interbank market in Iraq does not resemble other economies. Foreign exchange markets are another institution that is primitive in Iraq. Foreign exchange trades against the dinar are not managed electronically through an investment bank market maker.

 

Now all that can change very quickly. In part, because Iraq is receiving a lot of international pressure that supports nation building. The international community seeks to fully exploit Iraq's wealth and this will require (among other things) a sound currency.

 

Iraq's currency board once produced a sound and stable dinar anchored to the British pound and I believe there may be another board preparing to make the IQD a fully convertible currency that they can maintain. If this board is similar to others past, the directors will be appointed by the BIS (represented by 7+ countries) and the GOI.

 

The IQD not being a convertible currency is a severe hindrance to conducting business internationally. I have risked much of my own capital in hopes of a large profit and, after all we've been through, I am still confident that as a community we will accomplish far more than just adding liquidity to the market.

 

There were several reports from the CBI last year that pointed to early 2013 as target date for currency reform. Well, here we are one month away from a supposed increase. How much of an increase and exactly what they are referring to is anyone's guess but I think we can all agree that economically Iraq is headed in the right direction.  As usual these are just my opinions, which may or may not be correct. 

 

[millionaire in training]

Thank you,

Its always very interesting to here what you have to say.  

Appreciate your explanation.  

[myst]

SWFloridaGuy       It was enjoyable to read your opinion.....Thank you for posting.

 

Really like that you are clear ,precise,easy to read with a whole lot of good sense.

 

                                   Myst         

[OZmosis]

Thanks for keeping us grounded SWFG.  An informative read.

[Darin]

Thanks for the post SWFG...

 

I know that I have read that Bank restructures are scheduled to come to a conclusion in June of 2013... Makes one wonder how that relates to the recent articles coming out about trying to close the gap of the market/official rate (or even raising the exchange rate, if we have been interpreting the articles wrong).

[sandfly]

THANKS

[skeptic1138]

 

Here are the actual steps we should be looking for: when the time comes the CBI will get the signal from the Executive and legislative branches to initiate the implementation. Once they get the go ahead they will set a goal rate then send it to the BIS for approval.

 

At this point the BIS subcommittees (Central Bank members) will approve the target rate and regulate capital. Once approved the new rate will be sent to all central banks around the world simultaneously and this is when you will get the first opportunity to see the rate.

 

 

Perhaps you could point out where on the bis.org site it says anything about the BIS approving an exchange rate change for a pegged currency.  I could not find anything of the sort and the site is pretty detailed about their activities.

 

Are you claiming that the 4 IQD change from 1170 to 1166 went through this process, or that the many tiny changes China has made over the last 9 or 10 years has done so?    Of the subcommittees listed for Banking and Financial stability

 

The committees are:

• the Basel Committee on Banking Supervision
• the Committee on the Global Financial System
• the Committee on Payment and Settlement Systems
• the Markets Committee
• the Central Bank Governance Forum
• the Irving Fisher Committee on Central Bank Statistics

None lists approval of exchange rates in their activities.  The sites states the BIS's role as

 

In broad outline, the BIS pursues its mission by:

• promoting discussion and facilitating collaboration among central banks;
• supporting dialogue with other authorities that are responsible for promoting financial stability;
• conducting research on policy issues confronting central banks and financial supervisory authorities;
• acting as a prime counterparty for central banks in their financial transactions; and
• serving as an agent or trustee in connection with international financial operations.

They do not have authority over any central bank.  As far as I can tell, Iraq can set any rate that they can sustain, since the CBI is the one that will have to provide whatever exchange they set (which presently limits them to a max of around 1000 IQD to 1 USD).

 

I seem to recall that the CBI's charter gives them total control over the exchange rate as well not needing executive or legislative approval (but am not sure about that).

 

I stand ready to be shown my thinking is in error, but you'll have to show me some support for your claims.

Edited May 29, 2013 by skeptic1138

[SWFloridaGuy]

I have literally over a 100 documents proving this and the existence of these committees.  Lemme go through my archives.  I wouldn't have put it out there if I hadn't properly researched it.  I wouldn't have even been able to come up with such a scenario.  My imagination is too limited.  I will give you credit that they are extremely hard to find though.  Took me months of sifting through documents, pdf files etc. etc.etc.   Believe it or not the BIS does appoint currency directors.

 

 

The directors are appointed by the BIS, representative countries and also the government in question (in this case the GOI). Granted this is a very complex process and only partially responsible for the final outcome but it exists nonetheless. I'm really tired of debates but lemme grab some coffee in the morning and spend a few hours sifting through my records.  I also have no idea what power or authority they have to force Central Banks to do anything.  For all I know is they could be a just a very influential group making certain recommendations but I doubt they would set up such an organization unless they had some clout.  However, can you imagine trying to force your will on Iraq to do anything? 

 

Obviously, there would have to be some ascendancy either politically or economically for Iraq to play ball.  They have proven their ability to give the finger to the proper authorities many times in the past.  However, look at how much effort they are making to make amends with Kuwait, Chapter VII and WTO accession.  They are also making claims of a palpable move that will strengthen their currency (yes I know this doesn't necessarily mean RV), but it's also better news than we've had to deal with in the past.  Peace out man, I'm crashing for the night.  

Edited May 29, 2013 by SWFloridaGuy

[skeptic1138]

Thanks.  Take you time, I'm in no hurry.

[umbertino]

It'd be sweet to finally ( after 9 years for me specifically) be able to get some money out of this nightmare... We'll see  ( as usual).

SWFG...Thanks for your work.

Edited May 29, 2013 by umbertino

[sxsess]

Thanks SWFG. I have also invested much into this. I appreciate your hard work here. Good information is rare in the IQD world.

[Linda]

Thanks SWFG...

[umbertino]

Quote

Good information is rare in the IQD world.

End Quote

Indeed....

[gymrat76541]

XE Currency Exchange is showing; 1 USD = 1,149.00 IQD

 

I have never seen it so low before.

 

[skeptic1138]

Still waiting for links to the BIS site showing their involvement in approving exchange rate changes.

[fib1618]

Still waiting for links to the BIS site showing their involvement in approving exchange rate changes.

Good luck.

[skeptic1138]

Bump.  Would still like to see this info showing the BIS's involvement in approving exchange rates.

[Darin]

Bump.  Would still like to see this info showing the BIS's involvement in approving exchange rates.

You could try seeking it out for yourself.. Have you thought of trying that? If you did already, maybe you didn't try hard enough.

[dontlop]

id say to look on this daily posting by the imf  to see  if the dinar is listed yet ..>>> http://www.imf.org/external/np/fin/data/rms_five.aspx

[skeptic1138]

You could try seeking it out for yourself.. Have you thought of trying that? If you did already, maybe you didn't try hard enough.

If you go up in this thread you will find I searched the BIS site and found nothing of this sort, and only then asked SWFG to support his claims.

[Darin]

If you go up in this thread you will find I searched the BIS site and found nothing of this sort, and only then asked SWFG to support his claims.

I would guess that SWFG has spent more time there reading in-depth and may have ran across this information. Which is why the second part of my previous post referenced to dig deeper.

[dontlop]

I would guess that SWFG has spent more time there reading in-depth and may have ran across this information. Which is why the second part of my previous post referenced to dig deeper.

thats exactly what it is ,, you got to read into many different things to come up with a conclusion .. it takes days if pouring through different articles to get what you need off that site ,, you can say  .. i looked and didnt see anything ,, so its false .. money is strange ,,  it  is only seeking approval from  them to see if they are in agreement with iraqs findinmgs .. not to get  approval to see if they are alowed  to do it ... iraq can do as they please .. but iraq wants this to be successful .. and are looking for support in their anology ..

 

>>>

 

the value of money depends on beliefs about the probability of survival of the institutions that define the state itself.

[skeptic1138]

I would guess that SWFG has spent more time there reading in-depth and may have ran across this information. Which is why the second part of my previous post referenced to dig deeper.

The BIS site is pretty detailed about their services.  Could the CBI ask for comments on ramification etc of a possible future rate change?  That seems pretty likely, but that is not what SWFG laid out as the process for an RV.

 

When the time comes the CBI will get the signal from the Executive and legislative branches to initiate the implementation.  Once they get the go ahead they will set a goal rate then send it to the BIS for approval.  At this point the BIS subcommittees (Central Bank members) will approve the target rate and regulate capital.

I see no indication that this is the process. I don't even think the CBI needs executive or legislative approval (how in the world would they keep it secret if the entire legislature was informed?).

 

As I said in my first reply in this thread, I could find no indication that this is correct.  But, maybe I'm wrong.  All SWFG has to do is show me where on the BIS site it talks about this process.

Edited June 5, 2013 by skeptic1138

[skeptic1138]

I guess getting some sort of supporting evidence of the BIS's claimed role here is not going to happen.  This OP by SWFG made the rounds of the dinar site last Jan  (just pick a whole line, put it in quotes and google for it) and no links or evidence or support of any kind was offered with those either.  Oh well.

[ididitfirst]

why does skeptic show such animosity towards posts by swfg?