Exchange rate of the dinar against the dollar 1.16

[hame55]

I originally thought the CBI stopped reporting their M0 money supply number in 2005.  In researching, it appears to be in or around 2010.  Still a little uncertain on that.  The link below discusses the M0 number.  I do not know how reliable the figures are, since the CBI doesn't seem to report them directly and it is impossible to find the M0 number at the CBI.  On the other hand, at least it is a starting point.  This gets rid of the discussion at 30 to 33 trillion in circulation, because M2 numbers even take into account sales values on real estate, etc. 

Either way, I believe Iraq can easily support a 1.16 rate; and in reality probably a lot more (no!  not $3 + as gurus proclaim). 

 

http://www.tradingeconomics.com/iraq/money-supply-m0

What do you mean exactly - that they really don't have high trillions in circulation?

Yes 

 

I saw that dontlop and found it interesting, because he says the auctions are taking dinar from the market.  Well that is a little different than what I understood the auctions were doing.

Exactly - that's why I brought it up on another post - this is critical!

Steers us away from LOP, lowers money supply stabilizes economy, works with dollar levels...

That is EXACTLY what the auctions are doing. Pulling dinar and dollarizing the streets. Why do that if all you were planning is a lop ... Excepting large notes at a new, lower face value. You wouldn't. Did Turkey do that? Nope.

Accepting or excepting large notes? Not a grammar thing here - just want to see your point for meaning.

id say partially . not totally .. because of the amount they have removed over the years is around 300 to 500 trillion ..dinars .

 

i think they use the reserves to buy back those  dinars ..thats why he said you cant use the reserves  but for issues of the stability of the exchange rate

and they keep adding to the reserves with oil  generated funds  from exports

and they are ahead of the game by 80 billion dollars right now

Real question is....how many dinar are on the streets...how many are hoarded anticipating an RV, and how many are outside the country...we can't know any of these numbers. But we are good are smelling the moves they are making and getting the gist of the pie being baked....LOL

[zigmeister]

ham I don't think too many have been hoarded in Iraq.  No big three notes for sure.  They have to stand in line and exchange them for smaller denoms when they are paid and then I suppose they have to get into another line to get dollars or buy food.

[Bunk]

 ...  go rv....

[hame55]

I don't know, I still think 30 trillion in circulation is BS.

Think about it..

there are 42,000 members on this sight. If each member has an average of 2 mil dinar, that's only 80 billion..

so one must wonder were the rest is. 30 trillion is ALOT. I just don't see it..

Me neither. I think you are right. 30T is way too much.

ham I don't think too many have been hoarded in Iraq.  No big three notes for sure.  They have to stand in line and exchange them for smaller denoms when they are paid and then I suppose they have to get into another line to get dollars or buy food.

Yeah well that explains...yet the whole street level dinar for dollars exchange scenario is a bit murky. What I understand is they get paid in dinar, don't like them, and exchange them for dollars, which they use to buy everyday stuff. Is that right?

[umbertino]

Abby normal. I know that, it's from young Frankenstein. Funny movie. One of my favorite movies. I sure hope we see an rv of at least 1 to 1.

[millionaire in training]

Brother, ya know full well that Iraq is not getting by on only 30 some billion dinar. More like dinar and 

 

what seems to be a limitless amount of dollars. I can't remember how many times I've read how that

 

the Iraqis use only dollars. Even yesterday someone posted a pic of a vegi isle in a super market and 

 

the prices were in dollars. The CBI sells dollars to buy dinar, dollars dollars dollars. Now the GOI and the 

 

CBI say they want to return to the GLORY DAYS of dinar before Saddam. And I believe them. I have learned 

 

a thing or two about all this over the yrs and I will bet the farm that you will NEVER SEE Iraq L O P.

 

Forgetting all the usual arguments, Iraq isn't Turkey bla bla bla, Iraq, and EVERY OTHER COUNTRY uses 

 

a fiat currency. To use the laymen's terms, a currency that is backed solely by the good faith of the people.

 

For example our own government has recently been printing 80 billion dollars a month for nearly a yr. But

 

the U.S. Treasury has kept those dollars locked up in there vaults. Now were talking about some 3 trillion $.

 

If the U.S.  Treasury were to suddenly dump those dollars on the street the effect would be devastating.

 

The public FAITH in the dollar would drop so fast it would seem overnight. It wouldn't matter what the

 

Federal Reserve said the dollar was worth the prices of goods on the street would shoot through the

 

roof. The dollar would be dropped by every country in the world. IT WOULD BECOME WORTHLESS. 

 

The real question here is, Why print that many dollars then? But that's whole other subject. What I have 

 

just done is show what would happen if the populous looses FAITH in the dollar. Now consider this scenario,

 

The CBI does l o p the dinar as you suspect. What do you think the average Iraqi would think about that? Even 

 

if it were a neutral event, no harm no foul, for the person in the street; I would submit to you that the FAITH 

 

in the dinar would plummet. The average person would think themselves to have been screwed by their

 

own government and the CBI so much so that no one would use the dinar ever. They have, after all, so many

 

dollars. And that currency is STRONNNNNGGG.    At least everyone thinks it is. 

 

Now you may say, they wouldn't know the difference and therefore wouldn't care, but I disagree. They have 

 

been awaiting this event more than you or I, and they know what Turkey did. They know that Turkey still hasn't

 

fully recovered from their l o p. And they understand, just as much as you or I, what is going on with the dinar.

 

A L O P would destroy any and all FAITH  in the dinar. I would even submit to you that every country who has

 

done a L O P has experienced this, loss of faith, I am referring to. Also NO country that has L O Ped has 

 

ever amounted to a hill of beans in the world economy. NOT ONE. Iraq wants to become a world leader

 

and to do that they need a POWERFUL CURRENCY, and that requires the good FAITH of not only the Iraqi 

 

people but the world as well.    

 

 

LGD, 

 

YOU ROCK.......EXCELLENT POST.................YOU"RE THE MAN

 

PHD ON IRAQ AND THE DINAR

 

YOU"RE MY HERO............Thank you so much for your words. This thread was starting to freak me out until you came along.

Big Hug To Ya

M.I.T.

[rockfl9]

OK.

Someone posted a link that says there are 69T dinar in circulation. CBI data almost the same. It's true.

the CBI doesn't OWN the dinar it buys in the auctions it must transfer them to the MoF. i.e. cant destroy them . They're all still there.

Physical USD in Iraq , maybe 20M , they may be rare and valuable. The CBI is not importing physical USD TO Iraq ! by buying IQD we are! Diluting the dinar;. We are the reason there isn't an rv/rd.

[zigmeister]

OK.

Someone posted a link that says there are 69T dinar in circulation. CBI data almost the same. It's true.

the CBI doesn't OWN the dinar it buys in the auctions it must transfer them to the MoF. i.e. cant destroy them . They're all still there.

Physical USD in Iraq , maybe 20M , they may be rare and valuable. The CBI is not importing physical USD TO Iraq ! by buying IQD we are! Diluting the dinar;. We are the reason there isn't an rv/rd.

Well then the CBI set us up!

[starlight]

keeping my feet on the ground, as in being grounded:  they cannot expose an exchange rate before the RV happens...i hope i am wrong.

[outlawclg]

Darn You CBI !!!    Always playin jokes on people!      I'll show you. I won't buy any more of your silly dinars.....until I get paid again.

 

Seriously though,  why so much time and effort for a L O P?       

[JMULS31]

Your absolutely right. Why people that are insisting that the only way to raise the value is an lop is beyond me. They shouldn't even be involved in this investment.

But some of those countries had to RD more than once until they were stable.  An RD is not always the answer.   

Yes they could, Shabs said there would be a penalty on the dollar if they used it.  Maybe a tax or something I don't know.

  

Countries Don't LOP when there sitting this pretty

 

Economic indicators

Core inflation (YoY): MAR 2013

3.25%

Inflation (YoY): MAR 2013

1.28%

M2 growth (YoY): JAN 2013

8.43%

http://www.cbi.iq/?pid=Home〈=en

[IQD1217]

Revaluation means a change of a price of goods or products. This term is specially used as revaluation of a currency, where it means a rise of currency to the relation with a foreign currency in a fixed exchange rate. In floating exchange rate correct term would be appreciation. Altering the face value of a currency without changing its foreign exchange rate is a redenomination, not a revaluation.

In general terms, revaluation of a currency is a calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. central bank) can alter the official value of the currency. Contrast to "devaluation".

For example, suppose a government has set 10 units of its currency equal to one US dollar. To revalue, the government might change the rate to five units per dollar. This would result in that currency being twice as expensive to people buying that currency with U.S. dollars than previously and the US dollar costing half as much to those buying it with foreign currency.

Before the Chinese government revalued the yuan, it was pegged to the US dollar. It is now pegged to a basket of world currencies.

In economics, hyperinflation occurs when a country experiences very high and usually accelerating rates of inflation, causing the population to minimize their holdings of money. Under such conditions, the general price level within an economy increases rapidly as the official currency quickly loses real value.[1] Meanwhile, the real value of economic items generally stay the same with respect to one another, and remain relatively stable in terms of foreign currencies. This includes the economic items that generally constitute the government's expenses.

Unlike regular inflation, where the process of rising prices is protracted and not generally noticeable except by studying past market prices, hyperinflation sees a rapid and continuing increase prices and in the supply of money,[2] and the cost of goods.

Hyperinflation is often associated with wars, their aftermath, sociopolitical upheavals, or other crises that make it difficult for the government to tax the population, as a sudden and sharp decrease in tax revenue coupled with a strong effort to maintain the status quo can be a direct trigger of hyperinflation.

[IQD1217]

http://en.m.wikipedia.org/wiki/Iraqi_dinar

[Dads Home]

I hate to ask, but is that New Dinar?  Bunny Ear? The old, 1,000 old Dinar equals 1 New Dinar trick??  I wish they said rate, $.76 or $1.99 or anything else.

At least the ride will be over...until they change their mind tomorrow.

I hate to be so pessimistic here...but I have learned.

Moving the rate from .00086 to .86 is $1.16...exactly what would happen with a Bunny Ear.

.00086 is what 1 iraqi dianr is worth in US dollars...worth less than a penny. Dropping the zeros off that would mean 1 iraqi dianr worth .86 cents US dollars...which is the same as 1.16 iraq dinar to 1 Us dollar. This can happen WITHOUT the bunny ears as well.  In this article i believe it means 1 US dollar for 1.16 iraqi dinar....not 1 iraqi dinar being worth $1.16 in US money.

[Amos9:13]

I wouldn't let any of these articles get you down.  Keepem is just stating what other countries have done to erase garbage that gurus have put out there.  There are many things working in our favor that show the country won't lop.  You have to remember that parliament doesn't always know what's going on in the Central Bank.  That's more likely going to be between maliki and Turki.  In my opinion if Maliki wanted a lop he could have gotten one with Shabibi and now Shabibi is gone.  What people don't want to hear is that might make us wait longer to see an end to this ride, but again I'd rather see a much more positive end than a small return.  Let them keep blabbing....once it goes on for another year or so they might realize they don't need zeroes at all just an adjustment which we've seen those articles too.  We know the value needs to be pegged to something besides the US dollar that'll help in itself.  I'm not sure what their real rate is but once they establish that, I think the confidence will rise and the demand will make it rise gradually.  Will we be overnight millionaires, maybe not but hey keep praying!  If we aren't then it might just take a little patience in their value to go up.  There are many cards we don't hold that we need to see to make a 100% accurate decision.  I have asked in my prayers that the currency RV/Appreciate and not RD, I suppose you all do the same.

[calkid11]

Great post and responses, I like it , bring on the RV...

[awcoffeebean]

Works For Me! Let's Get The Show On The Road!

[Hopeful_Investor]

I'd prefer an even dollar but i will definitely take 86 cents!

GO RV!!!!

[Amos9:13]

I just want enough to "not owe any man anything but to love him" then work part time lol ....

[Nadita]

I just want enough to "not owe any man anything but to love him" then work part time lol ....

Me too.. any formula for that...???

[Amos9:13]

lol keep praying that "this investment is going to be in our favor" and wait for it . 

[Sweet baby dinar]

Thanks

[PD46]

But the link says there is 69 Trillion dinar in M0! A 1:1 would Value it at 69 Trillion dollars and the M2 would be 80 Trillion dollars! I think that exceeds the value of Iraq's known oil reserves.

 

Rock, no where in that article does it say or use the word trillion; you made that up.  I do see the word billion all throughout the article. 

A 1 to 1 value doesn't mean trillion.  Not to be ugly, but I'm not sure how you learned to do math.   If I have an apple and you have an apple and your apple is worth $1 and my apple is worth $.01, then all I need to do to make my apple equal to your apple is proclaim my apple value is now worth $1.  Under your math, I would need to have or go find trillions of apples to be equal to your one apple.  The 1166 to 1 rate is an artificial program rate; not the real rate. 

Iraq has more than enough gold, oil, and cash reserves to simple make their dinar on par with the US dollar. 

There are not trillions of dinars in circulation.  The CBI is showing smoke and mirrors to hold down speculation. 

What do you mean exactly - that they really don't have high trillions in circulation?

Hey hame.  I mean exactly that.  They do not have the 30+ trillions in circulation.  The news articles are using M2 numbers.  By the CBI and news agencies reporting this, it would hold down speculation.  Clearly it has worked, since so many people are confused. No one should expect the CBI to simply come out and say what they are really doing. 

Edited July 14, 2013 by PD46

[Sweet baby dinar]

Rock, no where in that article does it say or use the word trillion; you made that up. I do see the word billion all throughout the article.

A 1 to 1 value doesn't mean trillion. Not to be ugly, but I'm not sure how you learned to do math. If I have an apple and you have an apple and your apple is worth $1 and my apple is worth $.01, then all I need to do to make my apple equal to your apple is proclaim my apple value is now worth $1. Under your math, I would have to go find trillions of apples to be equal to your one apple.

Iraq has more than enough gold, oil, and cash reserves to simple make their dinar on par with the US dollar.

There are not trillions of dinars in circulation. The CBI is showing smoke and mirrors to hold down speculation.

Yes hame. I mean exactly that. They do not have the 30+ trillions in circulation. The news articles are using M2 numbers. By the CBI and news agencies reporting this, it would hold down speculation. Clearly it has worked, since so many people are confused. No one should expect the CBI to simply come out and say what they are really doing.

Interesting view. Thanks.

[PD46]

Yes, this is what Phoenix mentioned yesterday on his call.  In 2010 it went to zero and now they are hiding the exact figure for apparent reasons.

 

Hey supergirl.  This is exactly what Phoenix has been talking about on his radio show.  Phoenix has a lot of information and has studied a lot about the dinar.  I've learned that when he keeps to facts based on documents / news articles; he then has a good track record of being right. 

I do listen to him.  He has jeopardized his credibility by sticking his reputation to claims of an imminent RV.  I have watched him back peddle a lot since last October of 2012 to this point in 2013.  Remember him saying he didn't see this going past the end of the first quarter of 2013; then he said May and June were looking good; and then not past the 3 days after the removal of Chap. 7 sanctions.  Now he's saying not passed the end of July.  Excuses for no US media blitz about Iraq (which are true) and Phoenix calling for RVs on Sundays and Mondays now?  Sadly, Phoenix has been a guru. 

His written info is true, though it does need to be checked.  I believe he would agree.  He needs to have his wife post the link to the ministry of planning's website where the all contract rates are to be written at $1.13; and the true exchange rate of the IQD is $3.21 to 1 dinar. 

 

I saw the other threads here talking about Abby on Going Global East Meets West.  Abby speaks fluent Iraqi Arabic, and she is a Muslim who appears to be invested in the dinar also.  So she would be a reliable source. 

Edited July 14, 2013 by PD46