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$1.13 to $3.21 Iraqi Ministry of Planning


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thanks for going into the research butifldrum ,   looks like it might be an old article , but I hope they are still holding onto the idea that the dinar is still worthy of the 1.30 value  ,,, and some knucklehead bumps into the r \ /   button and sets it off tonight   :lol:

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thanks for going into the research butifldrum ,   looks like it might be an old article , but I hope they are still holding onto the idea that the dinar is still worthy of the 1.30 value  ,,, and some knucklehead bumps into the r \ /   button and sets it off tonight   :lol:

Heck I wouldn't care if it was someone smart who bumps their head. :lol:

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Hello There fellow Dinarians. Has anyone seen this before? Just got it off the Iraqi Ministry of Planning. It states our IQD could support a buck plus right now. Hope it aiint old.

 

 

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

 

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

 

Estimate the shadow price of foreign currency:

 

  1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary  requirements to implement  the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

 

 

 

 

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

 

  • Export-outputs.
  • Outputs marketed locally that substitute imports.
  • Imported inputs.
  • Inputs produced locally that usually go to exports.
  • Foreign labor.

According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules.

In other words the pricing rules calculate what the project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

 

 

  1. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the  economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

 

The justifications to call for the use of an exchange rate that is lower than the official exchange rate are:

 

  • The use of an exchange rate that is lower than the official rate is the appropriate action at the investment planning level to translate the country’s economic strategy aiming at stimulating central investments in the sectors that encourage the development of non-oil exports, as well as sectors that encourage the expansion of domestic production base in order to reduce imports and compensate it with local commodities. This helps to reduce reliance on foreign exchange earnings from crude oil exports and increases the share of non-oil sectors in the local production.

 

  • The application of the amended exchange rate on project imported inputs will assist in directing investments away from aggregated sectors dependent on imported inputs and the preference of those sectors that rely on locally produced inputs.

 

  • The use of the amended exchange rate helps to correct the balance in favor of the traded goods sectors compared to non-traded goods.

 

  • The real exchange rate has declined rapidly since the early seventies, through rapid rise of the level of prices and local costs which led by the steadiness of the official exchange rate to change in prices and actual local rate costs that gave an advantage for imported goods at the expense of locally produced goods, meaning that it led to deterioration of the competitiveness of alternative replacement goods and export commodities.

 

  • This action shows that the official exchange rate overestimates the value of the dinar, compared to the foreign currency and from the promoting goods substituting imports and export commodities point of view of.

 

And in support to this view is the state’s utilization and in a broad approach to the customs and quantitative protection policies especially for consumer goods, as well as export subsidies that exports have through an amended export exchange rate.

 

 

  1. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities.

 

thanks NYK! Keep on digging around. Thanks for your work.

 

Go RV! :moon-from-car:

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Ok thank you for this, I was sure I had read this article years ago or one just like it but was too lazy to do the research.  

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Ok thank you for this, I was sure I had read this article years ago or one just like it but was too lazy to do the research.  

And your a worker bee. Come on. Kidding of course. I love honey, no complaints here. 

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The Exchange Rate of Foreign Currency in Economic Feasibility Studies

and 

 

  1. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authoritie

YES!!!!!! :) this is very good affirmation albeit old...Intention is intention. I would love to see this sooner than later. And I wish I knew how to do a smiley face wave...so here's the closest I can!

 

 \o/

 

GO RV! Woot! & Thank Kevin.

  

 

Edited by Dinarian64
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The website is bogus.  No author names, no phone number to contact.  The other piece add to the website that I thought was odd was the visitor counter... that is not normal for a government website.

 

Gurus hide and pump this IQD any way possible!  haa haa haa

They must be some really bored, and really creative gurus, because this is a full Government website. Live streaming web. If this website isn't good enough for you, maybe you should think about running for mayor of Silicon Valley. They could use someone like you.

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OK I think it time for the old man to chime in here, I remember when I got in to the dinar back in late 2010 & the IMF was talking about doing an econominc review of Iraq to see what rate could be held. In Feb 2011 the IMF put out their report which showed they could support a $2.20 rate. Now thing may have change since than it could be higher or it could be lower. But the main fact in all this is Iraq's centeral bank will make the call on what it comes out at. So think of it as a low rate like a penny & be supprised if it comes out higher.

we will get there someday just not today & don't make me turn this car around & take you home.

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I only want real truth coming to us... This money folks are investing... Emotionally everytime people feel the news is real they buy more and more... But then it never comes. Just bring caution!

 

I know...It's Sad but I think those are called Pumpers.. If you feel comfy with the amount you own then just stay there..:)    God Bless everyone, this U. S. is starting to sound like Iraq..?

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Dr Robbins, DB and Crew: You don't know what you are talking about at all. I indicated originally that this may be an old  repeat article from the start. Further research shows that this article came out in 2009 from the Iraqi Ministry of Planning, at a time somewhat after a non-Sadam era ISX transitioned from chalk boards to computers. Thank you very much. Step off the easy train, do a little research on The Iraqi Ministry of Planning on the internet yourself. Go to it from all the different sites that you find when you Bing or Google it and see if they don't lead you to this very site. Unless your afraid to findout your are wrong.

 

The speak is technical, investment wise. It was a little challenging to me, but like you guys I have been around this IQD stuff long enough (started in 2006) to understand alot of this kinda information now in a way I didn't at the beginning. I also have developed a skill where I can tell most bogus sites from the legit ones. This one is legit, its also an Iraqi one so it may not have a phone number on the site at this time. Shoot they just copyrighted the logo and site not to long ago.

 

What the speak tells me is that all the hard work the GOI and its departments have done to build up their modern infrastructure as inexpensively as possible is paying off. Cheeper to build at a cost of 1/10 of a penney than at a cost of 50 cents or $3.00, am I right? They have set themselves up very well according to the direction and help they got from the U.S. its allies and the IMF. We all know that they still have a ways more to go before they can RV and absorb the costs of an RV without fracturing their economy. It also tells me that as they enter the international arena, say approaching the IMF for a loan, that they can prove their credit worthiness by showing that their currency could trade at $1.00 to $3.00 now, based on the price of oil per barrel stated in their most recent budget and current proven oil production capacity. Which has gone up year over year.  Maybe this can translate to the stock market pre or post RV. Also include their diversifying their economy in the short, medium, and long term future. Don't exclude the trade agreements they made recently with India (in IQD) and what that means for the IQD. Remember also the trade agreements made with South Korea and China.

 

This is one article, from one department. It only reflects one piece of the pie. Don't kid yourselves, yeah the money people are investing in this, you and I are each one of them now. Just not as sophisticated as them perhaps. So why not learn to use the tools that they use, to understand the research they understand, to be able to see what they see. Get more and more comfortable in thinking outside the box we all use to be in before we got into this investment. So when it does RV we won't get ripped off and we will be able to know a good thing when we see it. These are the only reasons I posted the article in the first place. If not, keep your head stuck in the sand and see how quickly your post RV fortune goes away if you don't manage your new found assets well.

 

This still may very well come in at 10 cents to the dinar and rise towards $1.00 via a managed float over the following 1-2 years for all I know and go on a market adjustment method after that up to the $3.00 range from the 2nd to 3rd year. If it happens that way then the period for cashing in for us may not last to the full 3 years if the market rate jumps to $3 to soon. The GOI may shorten the cashing in period if the IQD hots the $3 plus range to soon for them. I don't know. Again, I think these are some of the ways we all should become more comfortable in thinking. Yes its also not the only way to think. Still gotta get the HCL passed. Seat the full GOI. Fill that security Ministry position. Yep its still frustrating watching and waiting for someone to get up off their butt, pull the trigger and allow this thing to RV. Peace.

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According to the pricing rules the value of the output and input (traded) is calculated using export prices (FOB) and import prices (CIF), according to what is listed in the pricing rules. In other words the pricing rules calculate what a project produces from foreign currency (quantity of exports multiplied by the export price (FOB) in foreign currency or the quantity of substitute imports multiplied by the import price (CIF) in foreign currency, as well as what the project uses from foreign currency and imported inputs multiplied by the import price (CIF) in foreign currency .... etc.).

In a later step, project outputs and inputs must be converted from the foreign currency to its equivalent in local currency (dinars) by using a specific exchange rate for the foreign currency.

 

 

  1. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the  economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.


Read more: http://dinarvets.com/forums/index.php?/topic/162600-113-to-321-iraqi-ministry-of-planning/#ixzz2gvQeC0rD

 

Hey Doc:  It does not call for decreasing the rate from $3.20 to $1.13. It simply states in one section that the official exchange rate should reduce the real value of "foreign currency"  by valuing the IQD " for less than $3.208." Translation, this means that going back to 2009 they knew then that they had to de-dollarize the Iraqi economy. You cannot expect the GOI/CBI to get to 10 cents per IQD, let alone $1.00 or more if they are competing against "foreign curency" , ie: the U.S. dollar in their own country. The $1.13 reference is at the end of the article and speaks to the a potential approval  of an amended rate of $1.13 to be used in technical and economical feasibility studies and for (1.134) dollar per dinar.

Read more: http://dinarvets.com/forums/index.php?/topic/162600-113-to-321-iraqi-ministry-of-planning/page-3#ixzz2gvUUmLPB

 

Peace.

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