Dinar Revaluation

[chess]

The news clip is old hat .. But it beggars belief that the CBI and GOI are wasting so much time .. Really when one thinks about it the only ppl who will make money out of this will be those who sell the dinar to the plebs like us that we're gullible enough to believe in an investment that has been goin to happen every Monday\Thursday 17th of the month .. Etc etc for years .. It is almost an anti climax .... I need cheering up with some good news

 

 

........ok, THIS Friday for sure.............................99 cents..............................(trying to be realistic and practical)

[jg1]

Hyperinflation, an unchecked increase in the money supply. Ok, who did it. 

[Belecosity]

LOL....its not what anyone wants to hear, believe me. And I think thats why some take it so personal when this subject is brought up. It gets really touchy for some. All you hear from the gurus is that its what we want and that its a revaluation. So people dont take the time to look and verify for themselves. Gurus hide the real meaning of a redenomination so few hear about it especially on other sites!!

 

Unfortunately for us, its all within the realm of staying within the laws. Many countries have removed zeros from their currency over the years, and thats how they go about doing it. Two different ISO codes, so technically two different currencies, so they can be assigned different values. Thats why we dont want a new ISO code either. But yet just days ago, there were posts from gurus talking about a new ISO code as if its great. It can be really confusing for the people who just want to know whats really going on!

 

Lucky for us, we havent seen any movement towards getting a new ISO code. I believe they have to apply for one first, so I would think we would get some sort of heads up if they decide to go in that direction!! And thats when you would know its time to sell asap.  If you want to learn more about removing zeros, I would study Turkey's redenomination since it was more recent and the CBI has mentioned that country as well in reference to their own plan. As far as the ISO code, I think you might just have to google that one and see what you come up with. Cant remember where the good info is on that subject...not hard to find though!

Hey Keep,

Obviously the scenario that you keep talking about is what has been done in the past to other currencies, and if we take a rationale approach to the IQD, it has more probability than a revaluation.

I will preface what I'm going to say with the fact that I do believe the IQD will RV or unpegg and begin trading on the Forex increasing the value.

but the issue I have with an RD scenario, is that I have to question why have they not done this yet?

My next problem with this is that most RD's occur when their is severe hyperinflation and the money supply is spiraling out of control. (doesnt seem to be the case here)

Next is that most RD's occur when a countries currency is already traded globally and a revalue is absolutely impossible.

 

I dont have time to write alot, Really busy at the moment. I would like to get your thoughts on this though.

[jcfrag]

Hey Keep,

Obviously the scenario that you keep talking about is what has been done in the past to other currencies, and if we take a rationale approach to the IQD, it has more probability than a revaluation.

I will preface what I'm going to say with the fact that I do believe the IQD will RV or unpegg and begin trading on the Forex increasing the value.

but the issue I have with an RD scenario, is that I have to question why have they not done this yet?

My next problem with this is that most RD's occur when their is severe hyperinflation and the money supply is spiraling out of control. (doesnt seem to be the case here)

Next is that most RD's occur when a countries currency is already traded globally and a revalue is absolutely impossible.

I dont have time to write alot, Really busy at the moment. I would like to get your thoughts on this though.

[jcfrag]

Now this a great debate, Lovin it guys!!!

[keepmwlknfny]

Hyperinflation, an unchecked increase in the money supply. Ok, who did it. 

We can thank Saddam.....inflation is under control now thanks to Shabs, still money supply issue!

[MrOptimistic]

 

Hey Keep,

Obviously the scenario that you keep talking about is what has been done in the past to other currencies, and if we take a rationale approach to the IQD, it has more probability than a revaluation.

I will preface what I'm going to say with the fact that I do believe the IQD will RV or unpegg and begin trading on the Forex increasing the value.

but the issue I have with an RD scenario, is that I have to question why have they not done this yet?

My next problem with this is that most RD's occur when their is severe hyperinflation and the money supply is spiraling out of control. (doesnt seem to be the case here)

Next is that most RD's occur when a countries currency is already traded globally and a revalue is absolutely impossible.

I dont have time to write alot, Really busy at the moment. I would like to get your thoughts on this though.

 

+1   

sadly not much use explaining it to a narrow-minded lopster 

[keepmwlknfny]

Hey Keep,

Obviously the scenario that you keep talking about is what has been done in the past to other currencies, and if we take a rationale approach to the IQD, it has more probability than a revaluation.

I will preface what I'm going to say with the fact that I do believe the IQD will RV or unpegg and begin trading on the Forex increasing the value.

but the issue I have with an RD scenario, is that I have to question why have they not done this yet?

My next problem with this is that most RD's occur when their is severe hyperinflation and the money supply is spiraling out of control. (doesnt seem to be the case here)

Next is that most RD's occur when a countries currency is already traded globally and a revalue is absolutely impossible.

 

I dont have time to write alot, Really busy at the moment. I would like to get your thoughts on this though.

Why have they not done it yet?

 

Well, we are talking about Iraq here. They cannot do anything in the normal amount of time something should take! Heck look at the elections they had. Should have taken weeks, maybe a month and it was still about a year later and they didnt have all the seats filled and positions taken. They have also done extensive studies (Shabs is a smart man, but does not wanna set Iraq up for failure). They are trying to get the banking sector in line with the rest of the world as well. And if you check all the articles now about deleting the zeros, its pretty much been a disagreement for quite awhile about the best time to implement. Im not so sure the parliament has officially voted and passed it (they have the final authority on it) I could be wrong about them passing the bill. In those articles they have stated they are unsure about the stability of Iraq right now, still security issues, and of course because of those things, they are worried about the counterfeiting that could go on during the process. I know people will say that either whats the point in trying to make fakes when they are worthless (which is not true) and that the dinar is the most sophisticated currencies made. Well the 25k dinar is worth just under 25 bucks. You print enough of them, and are able to exchange them over a two year period, you can come away with a nice chunk of money. The dinar is not a new currency anymore....it had high security features when it was made, but you give people enough time and they can fake anything. Thats why countries change the face of their currency every now and then. Hell look at the US. Gotta stay ahead of the curve!!

 

As far as hyperinflation goes, you are correct, they have brought their severe inflation under control. But you dont want to RD during those periods. If you look at Turkey for example, they brought their inflation down around 10% before they RD. Thats the key is to get that under control first so that you dont have to do it again. That is what countries do first, is bring inflation under control. Zimbabwe tried doing it DURING hyperinflation and it failed miserably and they ended up trying to do i think another two times!!  I know people will say well Iraq is not Turkey and thats right. They are two different countries, but they suffered from the same problem. And thats why the CBI references Turkey so much in reference to what they want to do. They both had low exchange rates, high inflation and an inflated money supply. All the oil in the world cannot erase previously failed monetary policies. 

 

Now the money supply. According to the CBI and the IMF, Iraq has approximately 35 trillion dinar in circulation. I would say thats pretty much out of control. It just keeps growing and growing. The reserves are growing at the same time which is great but still, Iraq started out with I think about 6 trillion total in the 2003 exchange and it has grown out of control in the past ten years. The misconception is that the auctions are pulling in dinar to be destroyed. Not the case. The GOI takes the USD from oil revenue (which is what they run off of) and exchanges it for dinar from the CBI, the CBI makes a profit off that and then turns around and takes the USD and sells it in the auctions. The majority of all of this is electronic. There is some cash portions, but its all circulated back into the market through the banks.The CBI is not taking in dinar from the citizens pockets to be destroyed. Its a constant balancing act between the banks. Its how they keep the rate and inflation stable.

 

And lastly there are no restrictions on when or who can redenominate. It doesnt matter if your currency is traded. That has to bearing on if a country can RD. Many countries that dont have convertible currencies have RD over the years. Not bashing you but those last two statements almost sound like it came from a guru just to make it seem like Iraq cant RD.  Many countries have RD that dont have fully tradeable currencies including Zimbabwe, Argentina and Bolivia.

http://service.nordea.com/nordea-openpages/fi/lists/currency/nonConvertibleExchangeRateFI.action?language=en

If you look at past countries that have RD, Im sure you will find more on that list....

+1   

sadly not much use explaining it to a narrow-minded lopster 

I know from your inexperience to this investment, you dont quite understand it yet. But knowing what the CBI is saying is not being narrowminded. Its called knowing your investment. Its easier to bash what you dont understand or pretend it doesnt exist but it doesnt help you at all. You will learn this in time.

http://www.cbi.iq/index.php?pid=Statistics

 

 

Click on key financial indicators (just below key financial indicators documentation)

 

There you willl find the spreadsheet with the amount of currency outside the banks which is whats in circulation.

 

http://www.indexmundi.com/g/g.aspx?c=tu&v=71

 

There you will see the graph of Turkeys inflation. They RD in about 2005 once they got inflation under control.

[boosterbglee]

Thanks, Keep...appreciate you taking the time to educate!  Waiting for Iraq...........I ask myself daily if this logical or have I lost my mind?

[Magdalen]

I appreciate this thread and the differing points of view. My two cents: Iraq can RD, but they will not. They'll RV the Dinar. The rate? Anybody's guess at this point. When? I think within the next few months.

[sxsess]

 

Hey Keep,

Obviously the scenario that you keep talking about is what has been done in the past to other currencies, and if we take a rationale approach to the IQD, it has more probability than a revaluation.

I will preface what I'm going to say with the fact that I do believe the IQD will RV or unpegg and begin trading on the Forex increasing the value.

but the issue I have with an RD scenario, is that I have to question why have they not done this yet?

My next problem with this is that most RD's occur when their is severe hyperinflation and the money supply is spiraling out of control. (doesnt seem to be the case here)

Next is that most RD's occur when a countries currency is already traded globally and a revalue is absolutely impossible.

I dont have time to write alot, Really busy at the moment. I would like to get your thoughts on this though.

 

This is exactly my thoughts. If they were going to RD they would have done this long ago. IMO, they will raise they exchange rate and drop zeros off the currency. I never planned on making millions here, but I did plan on at least a double or a triple. Thats realistic. A lop without a rate increase would do nothing for their country and its citizens.

[keepmwlknfny]

This is exactly my thoughts. If they were going to RD they would have done this long ago. IMO, they will raise they exchange rate and drop zeros off the currency. I never planned on making millions here, but I did plan on at least a double or a triple. Thats realistic. A lop without a rate increase would do nothing for their country and its citizens.

Well they have given their reasons over and over on why it hasnt happened. They only recently (about a year ago) submitted the plan to parliament. So its in their hands. But you are right, there would be a rate increase accompanied with the lop, just only on the new currency. Ours would retain the 1166 value. So if you wanted to stay in the game, you would have to find a way to exchange your old dinar for the new and hang on for longer. 

[Belecosity]

 

And lastly there are no restrictions on when or who can redenominate. It doesnt matter if your currency is traded. That has to bearing on if a country can RD. Many countries that dont have convertible currencies have RD over the years. Not bashing you but those last two statements almost sound like it came from a guru just to make it seem like Iraq cant RD.  Many countries have RD that dont have fully tradeable currencies including Zimbabwe, Argentina and Bolivia.

http://service.nordea.com/nordea-openpages/fi/lists/currency/nonConvertibleExchangeRateFI.action?language=en

If you look at past countries that have RD, Im sure you will find more on that list....

 

 

 

 

 

Thanks for your opinion keep. I am the farthest from a guru, just a financial advisor. I just tend to look at things in a better light than you do. I look at the unknowns of this investment and see possibility.

That is how people make millions... taking a chance .

I was not saying that they could not RD...... not sure how you got that. I said that most countries would never be able to RV their currency without an RD because they are internationally trad able..... Not sure how you got the other way around. My thought is that because the Dinar is not, they have more capacity than most countries to deal with their currency as they see fit without affecting the entire monetary system.

Does that make sense? I'd love to hear if you feel differently.

 

As for the money supply,,,, lets just say if they havent done something in secret to reduce those number... then we will never see anything but possibly our money back.

[keepmwlknfny]

 

 

And lastly there are no restrictions on when or who can redenominate. It doesnt matter if your currency is traded. That has to bearing on if a country can RD. Many countries that dont have convertible currencies have RD over the years. Not bashing you but those last two statements almost sound like it came from a guru just to make it seem like Iraq cant RD.  Many countries have RD that dont have fully tradeable currencies including Zimbabwe, Argentina and Bolivia.

http://service.nordea.com/nordea-openpages/fi/lists/currency/nonConvertibleExchangeRateFI.action?language=en

If you look at past countries that have RD, Im sure you will find more on that list....

 

 

 

 

 

Thanks for your opinion keep. I am the farthest from a guru, just a financial advisor. I just tend to look at things in a better light than you do. I look at the unknowns of this investment and see possibility.

That is how people make millions... taking a chance .

I was not saying that they could not RD...... not sure how you got that. I said that most countries would never be able to RV their currency without an RD because they are internationally trad able..... Not sure how you got the other way around. My thought is that because the Dinar is not, they have more capacity than most countries to deal with their currency as they see fit without affecting the entire monetary system.

Does that make sense? I'd love to hear if you feel differently.

 

As for the money supply,,,, lets just say if they havent done something in secret to reduce those number... then we will never see anything but possibly our money back.

 

Could you be a little more specific? Are you talking about being able to do whatever they want with their currency without affecting the global monetary system? Or their own?  Being a pegged currency will definitely keep more restriction on what they can do and get away with as far as value. But I dont think thats what you are getting at....

[Djorgie]

LOL....its not what anyone wants to hear, believe me. And I think thats why some take it so personal when this subject is brought up. It gets really touchy for some. All you hear from the gurus is that its what we want and that its a revaluation. So people dont take the time to look and verify for themselves. Gurus hide the real meaning of a redenomination so few hear about it especially on other sites!!

 

Unfortunately for us, its all within the realm of staying within the laws. Many countries have removed zeros from their currency over the years, and thats how they go about doing it. Two different ISO codes, so technically two different currencies, so they can be assigned different values. Thats why we dont want a new ISO code either. But yet just days ago, there were posts from gurus talking about a new ISO code as if its great. It can be really confusing for the people who just want to know whats really going on!

 

Lucky for us, we havent seen any movement towards getting a new ISO code. I believe they have to apply for one first, so I would think we would get some sort of heads up if they decide to go in that direction!! And thats when you would know its time to sell asap.  If you want to learn more about removing zeros, I would study Turkey's redenomination since it was more recent and the CBI has mentioned that country as well in reference to their own plan. As far as the ISO code, I think you might just have to google that one and see what you come up with. Cant remember where the good info is on that subject...not hard to find though!

Thanks so much for the info. I will definitely do some research on it.

[Belecosity]

Could you be a little more specific? Are you talking about being able to do whatever they want with their currency without affecting the global monetary system? Or their own?  Being a pegged currency will definitely keep more restriction on what they can do and get away with as far as value. But I dont think thats what you are getting at....

I apologize, I have been too busy lately that even when I do write anything it tends to only make sense in my head

 

now my thoughts are just purely speculative, but I have been trading on the forex going on a few years. Any time a country or their central bank has tried to mess with their currency (mostly to devalue it) their have been repercussions. Take for instance japan when they kept shorting their own currency in contrast to others to keep the value low and increase their trade surpluses, many big players came in and took them for all they were worth. (now that is not the only reason for japans woes, but it did play a large role) I bring this up to say, that anyone who thinks that the dinar can be internationally trade able and then RV needs to rethink what they are actually saying. not saying it is impossible, but it doesn't really make sense. Their would be some many people that would lose everything, especially banks who solicit trade between countries with bankers acceptances(BA's). Banks are the ones who actually take on most of the risk involved with cross commerce trade, not businesses. So when the forex has a currency that devalues or revalues at drastic rates, banks step in and stable them out. If you watch the forex market orders you can watch it happen on a daily basis. If Iraq does go convertible with their currency, an RD is a way more probable scenario.

 

I preface my thoughts with that because i feel like Iraq is in a situation the risk of banks losing a lot of money if they did revalue is drastically diminished due to the fact that all foreign trade is done through the USD. so hypothetically if they did revalue their currency the only dramatic effects you would see take place are within country commerce.(until they went convertible) I am not too savvy on Iraq banking, but I would imagine that BA's only take place in USD, and they might not even be necessary in Iraq's situation, unless businesses are hedging against the USD they are using. So Iraq's monetary issues are very different from most countries because they are very isolated in their monetary reform policy (except for speculators).

Now I know their are a pegged currency, but the peg does move, as we have seen over the last 10 years. (obviously not the movement we are longing for of course).

 

So i guess my conclusion would be that Iraq is able to do what they want with their currency as long as they are able to prove to the U.S. and others they have control of their inflation and money supply. The U.S. and other will not allow Iraq to mess up their with monetary policy.... they are already doing it well enough with their fiscal and social policies. With all the instability Iraq is surrounded with, if they fell into a period of hyperinflation and devaluation, it will just add to the middle eastern problems.

 

so in my opinion, Iraq being able to revalue their currency, the last major issue out their is money supply. Now I don't really want to argue about hard currency supply within Iraq, because it has been argued way to much. I will agree with you keep, that their is no "proven sign" whatsoever that Iraq has diminished the dinar in circulation, in fact just the opposite, so for me that is where speculation kicks in. Also Iraq has continually said they were attempting to begin the steps of Re Denomination. 

 

hypothetically if they have diminished the supply of dinar within country they would be able to peg a new value to the currency based on reserves etc. etc. with the amount in circulation. heck they have increased the value over they last 10 years, with the circulation increase, of course they are able to do this with rising GDP and wealth(not much of it of course), but they have none the less. If the really have been secretly reducing the supply of dinar within country, it seems like and RV of the dinar is definitely possible.

 

Sorry if this isn't very clear, i am multitasking right now. I would like to get your thoughts on this. I might be missing something and If I am, feel free to let me know.

[MrOptimistic]

I apologize, I have been too busy lately that even when I do write anything it tends to only make sense in my head

 

now my thoughts are just purely speculative, but I have been trading on the forex going on a few years. Any time a country or their central bank has tried to mess with their currency (mostly to devalue it) their have been repercussions. Take for instance japan when they kept shorting their own currency in contrast to others to keep the value low and increase their trade surpluses, many big players came in and took them for all they were worth. (now that is not the only reason for japans woes, but it did play a large role) I bring this up to say, that anyone who thinks that the dinar can be internationally trade able and then RV needs to rethink what they are actually saying. not saying it is impossible, but it doesn't really make sense. Their would be some many people that would lose everything, especially banks who solicit trade between countries with bankers acceptances(BA's). Banks are the ones who actually take on most of the risk involved with cross commerce trade, not businesses. So when the forex has a currency that devalues or revalues at drastic rates, banks step in and stable them out. If you watch the forex market orders you can watch it happen on a daily basis. If Iraq does go convertible with their currency, an RD is a way more probable scenario.

 

I preface my thoughts with that because i feel like Iraq is in a situation the risk of banks losing a lot of money if they did revalue is drastically diminished due to the fact that all foreign trade is done through the USD. so hypothetically if they did revalue their currency the only dramatic effects you would see take place are within country commerce.(until they went convertible) I am not too savvy on Iraq banking, but I would imagine that BA's only take place in USD, and they might not even be necessary in Iraq's situation, unless businesses are hedging against the USD they are using. So Iraq's monetary issues are very different from most countries because they are very isolated in their monetary reform policy (except for speculators).

Now I know their are a pegged currency, but the peg does move, as we have seen over the last 10 years. (obviously not the movement we are longing for of course).

 

So i guess my conclusion would be that Iraq is able to do what they want with their currency as long as they are able to prove to the U.S. and others they have control of their inflation and money supply. The U.S. and other will not allow Iraq to mess up their with monetary policy.... they are already doing it well enough with their fiscal and social policies. With all the instability Iraq is surrounded with, if they fell into a period of hyperinflation and devaluation, it will just add to the middle eastern problems.

 

so in my opinion, Iraq being able to revalue their currency, the last major issue out their is money supply. Now I don't really want to argue about hard currency supply within Iraq, because it has been argued way to much. I will agree with you keep, that their is no "proven sign" whatsoever that Iraq has diminished the dinar in circulation, in fact just the opposite, so for me that is where speculation kicks in. Also Iraq has continually said they were attempting to begin the steps of Re Denomination. 

 

hypothetically if they have diminished the supply of dinar within country they would be able to peg a new value to the currency based on reserves etc. etc. with the amount in circulation. heck they have increased the value over they last 10 years, with the circulation increase, of course they are able to do this with rising GDP and wealth(not much of it of course), but they have none the less. If the really have been secretly reducing the supply of dinar within country, it seems like and RV of the dinar is definitely possible.

 

Sorry if this isn't very clear, i am multitasking right now. I would like to get your thoughts on this. I might be missing something and If I am, feel free to let me know.

RV in order to RD, RD in order to become internationally recognized

[new york kevin]

Belecosity: I follow you and appreciate your contribution.

[keepmwlknfny]

I apologize, I have been too busy lately that even when I do write anything it tends to only make sense in my head

 

now my thoughts are just purely speculative, but I have been trading on the forex going on a few years. Any time a country or their central bank has tried to mess with their currency (mostly to devalue it) their have been repercussions. Take for instance japan when they kept shorting their own currency in contrast to others to keep the value low and increase their trade surpluses, many big players came in and took them for all they were worth. (now that is not the only reason for japans woes, but it did play a large role) I bring this up to say, that anyone who thinks that the dinar can be internationally trade able and then RV needs to rethink what they are actually saying. not saying it is impossible, but it doesn't really make sense. Their would be some many people that would lose everything, especially banks who solicit trade between countries with bankers acceptances(BA's). Banks are the ones who actually take on most of the risk involved with cross commerce trade, not businesses. So when the forex has a currency that devalues or revalues at drastic rates, banks step in and stable them out. If you watch the forex market orders you can watch it happen on a daily basis. If Iraq does go convertible with their currency, an RD is a way more probable scenario.

 

I preface my thoughts with that because i feel like Iraq is in a situation the risk of banks losing a lot of money if they did revalue is drastically diminished due to the fact that all foreign trade is done through the USD. so hypothetically if they did revalue their currency the only dramatic effects you would see take place are within country commerce.(until they went convertible) I am not too savvy on Iraq banking, but I would imagine that BA's only take place in USD, and they might not even be necessary in Iraq's situation, unless businesses are hedging against the USD they are using. So Iraq's monetary issues are very different from most countries because they are very isolated in their monetary reform policy (except for speculators).

Now I know their are a pegged currency, but the peg does move, as we have seen over the last 10 years. (obviously not the movement we are longing for of course).

 

So i guess my conclusion would be that Iraq is able to do what they want with their currency as long as they are able to prove to the U.S. and others they have control of their inflation and money supply. The U.S. and other will not allow Iraq to mess up their with monetary policy.... they are already doing it well enough with their fiscal and social policies. With all the instability Iraq is surrounded with, if they fell into a period of hyperinflation and devaluation, it will just add to the middle eastern problems.

 

so in my opinion, Iraq being able to revalue their currency, the last major issue out their is money supply. Now I don't really want to argue about hard currency supply within Iraq, because it has been argued way to much. I will agree with you keep, that their is no "proven sign" whatsoever that Iraq has diminished the dinar in circulation, in fact just the opposite, so for me that is where speculation kicks in. Also Iraq has continually said they were attempting to begin the steps of Re Denomination. 

 

hypothetically if they have diminished the supply of dinar within country they would be able to peg a new value to the currency based on reserves etc. etc. with the amount in circulation. heck they have increased the value over they last 10 years, with the circulation increase, of course they are able to do this with rising GDP and wealth(not much of it of course), but they have none the less. If the really have been secretly reducing the supply of dinar within country, it seems like and RV of the dinar is definitely possible.

 

Sorry if this isn't very clear, i am multitasking right now. I would like to get your thoughts on this. I might be missing something and If I am, feel free to let me know.

Im not so sure that being convertible/nonconvertible would make a difference in what they can do with their currency. I think their monetary policy of being pegged would make more of a difference. Which is why I think moving away from a peg would make a better opportunity for the CBI to be more flexible with the dinar.

 

I see that China and India are working towards being a fully converible currency, and China has RD and India is on the verge of RD.  So maybe to get that confidence in working towards being convertible, Iraq might need to start over from scratch and prove that they can hold their own and be stable (RD)Just to erase all the effects of past failed monetary policy. Not of course what we would want to hear but Im not sure. But then again, I havent seen any restrictions on either end (convertible/nonconvertible) that says you can or cannot RD before or after. 

 

I agree that they need to get a hold of the ever growing money supply. It reduces any chance of seeing any significant return on the dinar. There is no evidence of them reducing it, only continuing to print more, but thankfully as they are growing the reserves. 

 

Until there is some kind of change in monetary policy (moving away from a peg) I dont see them having much room to do anything they want. But the catch 22 is that Iraq is not diversified enough in their economy for that to be a viable option. They depend too much on oil to run the country. I dont know of any country that has a majority of oil as their GDP that isent pegged. And thats probly because of the volitility of its price, the supply, and demand.

 

There are however countries not on that non-convertible list of currencies that have redenominated.....

RV in order to RD, RD in order to become internationally recognized

If they RV first, there is no need to redenominate. Not sure where this concept started.

 

If they can even move the value up to two and a half times its current value, then you cannot remove three zeros.....and there would be no need to pursue any sort of RD. They can just keep on trucking the way they have been....building the reserves....

[MrOptimistic]

Im not so sure that being convertible/nonconvertible would make a difference in what they can do with their currency. I think their monetary policy of being pegged would make more of a difference. Which is why I think moving away from a peg would make a better opportunity for the CBI to be more flexible with the dinar.

 

I see that China and India are working towards being a fully converible currency, and China has RD and India is on the verge of RD.  So maybe to get that confidence in working towards being convertible, Iraq might need to start over from scratch and prove that they can hold their own and be stable (RD)Just to erase all the effects of past failed monetary policy. Not of course what we would want to hear but Im not sure. But then again, I havent seen any restrictions on either end (convertible/nonconvertible) that says you can or cannot RD before or after. 

 

I agree that they need to get a hold of the ever growing money supply. It reduces any chance of seeing any significant return on the dinar. There is no evidence of them reducing it, only continuing to print more, but thankfully as they are growing the reserves. 

 

Until there is some kind of change in monetary policy (moving away from a peg) I dont see them having much room to do anything they want. But the catch 22 is that Iraq is not diversified enough in their economy for that to be a viable option. They depend too much on oil to run the country. I dont know of any country that has a majority of oil as their GDP that isent pegged. And thats probly because of the volitility of its price, the supply, and demand.

 

There are however countries not on that non-convertible list of currencies that have redenominated.....

If they RV first, there is no need to redenominate. Not sure where this concept started.

 

If they can even move the value up to two and a half times its current value, then you cannot remove three zeros.....and there would be no need to pursue any sort of RD. They can just keep on trucking the way they have been....building the reserves....

 

Hey KEEP, do you know what an odious debt is?

http://www.cato.org/publications/policy-analysis/iraqs-odious-debts

 

Definition of 'Redenomination':

The process of changing the currency value on a financial security.

Definition of 'Revaluation':

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".

and a quote - June 3, 2013 Turki revealed "to postpone the project raise zeros from the currency and the value of the Iraqi dinar toward climb to more power because we passed the bottleneck."

 

IMO translation.. if you know that arabic is read backwards.

Postpone the project to delete 3 zeros because we passed the bottleneck and the value of the iraqi dinar is to climb toward more power.

http://goingglobaleastmeetswest.blogspot.com/2013/07/iraq-cbi-goldforeign-reserves-greater.html

 

I guess you can keep wasting your time ranting about turkey's inflation rates which have very little relation to Iraq's situation as you can see from Turkey's situation they entered the WTO in March of 1995 which opened the door for the inflation and RD. Iraq is not even in the WTO yet and Iraq just replaced an existing dictatorial regime hence why debt is being restructured and forgiven. The WTO didn't even exist when sanctions were placed on Iraq. So please brush up on your studies and stop being so narrow minded, your ignorance is giving me and most others here a headache. 

I do appreciate some of your posts but your narcissism is over feeding your ego.

Edited October 23, 2013 by MrOptimistic

[keepmwlknfny]

Hey KEEP, do you know what an odious debt is?

http://www.cato.org/publications/policy-analysis/iraqs-odious-debts

 

Definition of 'Redenomination':

The process of changing the currency value on a financial security.

Definition of 'Revaluation':

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".

and a quote - June 3, 2013 Turki revealed "to postpone the project raise zeros from the currency and the value of the Iraqi dinar toward climb to more power because we passed the bottleneck."

 

IMO translation.. if you know that arabic is read backwards.

Postpone the project to delete 3 zeros because we passed the bottleneck and the value of the iraqi dinar is to climb toward more power.

http://goingglobaleastmeetswest.blogspot.com/2013/07/iraq-cbi-goldforeign-reserves-greater.html

 

I guess you can keep wasting your time ranting about turkey's inflation rates which have very little relation to Iraq's situation as you can see from Turkey's situation they entered the WTO in March of 1995 which opened the door for the inflation and RD. Iraq is not even in the WTO yet and Iraq just replaced an existing dictatorial regime hence why debt is being restructured and forgiven. The WTO didn't even exist when sanctions were placed on Iraq. So please brush up on your studies and stop being so narrow minded, your ignorance is giving me and most others here a headache. 

I do appreciate some of your posts but your narcissism is over feeding your ego.

Again, just because you can post a definition doesnt mean you actually understand it because your posts would reflect it. Which is why I said that your post is misleading. The video you posted is about a lop....not a revaluation.....if you actually knew what you were posting about, you would never have posted it. This and that silly lop article you posted that you got all excited abou t lol......

 

Just because Turkey joined the WTO doesnt mean thats what caused their inflation and them to RD.  They had a failing monetary policy. Thats what cause the hyperinflation.

 

And if you knew what you were talking about, the WTO has nothing to do with Iraqs forgiven debt, nor the value of their currency. According to all the information you have been posting, its not me that needs to spend time "brushing up on their studies".   You have shown you clearly dont know much about this investment....I feel for you.....I was in your position at once....until I really started doing my own homework. You have a long ways to go my friend.....keep on truckin.....you will be there soon enough....

[Belecosity]

Im not so sure that being convertible/nonconvertible would make a difference in what they can do with their currency. I think their monetary policy of being pegged would make more of a difference. Which is why I think moving away from a peg would make a better opportunity for the CBI to be more flexible with the dinar.

I see that China and India are working towards being a fully converible currency, and China has RD and India is on the verge of RD. So maybe to get that confidence in working towards being convertible, Iraq might need to start over from scratch and prove that they can hold their own and be stable (RD)Just to erase all the effects of past failed monetary policy. Not of course what we would want to hear but Im not sure. But then again, I havent seen any restrictions on either end (convertible/nonconvertible) that says you can or cannot RD before or after.

I agree that they need to get a hold of the ever growing money supply. It reduces any chance of seeing any significant return on the dinar. There is no evidence of them reducing it, only continuing to print more, but thankfully as they are growing the reserves.

Until there is some kind of change in monetary policy (moving away from a peg) I dont see them having much room to do anything they want. But the catch 22 is that Iraq is not diversified enough in their economy for that to be a viable option. They depend too much on oil to run the country. I dont know of any country that has a majority of oil as their GDP that isent pegged. And thats probly because of the volitility of its price, the supply, and demand.

There are however countries not on that non-convertible list of currencies that have redenominated.....

If they RV first, there is no need to redenominate. Not sure where this concept started.

If they can even move the value up to two and a half times its current value, then you cannot remove three zeros.....and there would be no need to pursue any sort of RD. They can just keep on trucking the way they have been....building the reserves....

Edited November 30, 2013 by Markinsa
Fixed Quote Box

[keepmwlknfny]

Mroptimistic you didnt catch the point of any of my posts which is why you should refrain from replying to them. I didnt post Turkeys inflation rate to compare it to Iraq, it was to show that countries dont RD during periods of hyperinflation if they want it to be successful. I guess that was too much for you to grasp.

[MrOptimistic]

Again, just because you can post a definition doesnt mean you actually understand it because your posts would reflect it. Which is why I said that your post is misleading. The video you posted is about a lop....not a revaluation.....if you actually knew what you were posting about, you would never have posted it. This and that silly lop article you posted that you got all excited abou t lol......

 

Just because Turkey joined the WTO doesnt mean thats what caused their inflation and them to RD.  They had a failing monetary policy. Thats what cause the hyperinflation.

 

And if you knew what you were talking about, the WTO has nothing to do with Iraqs forgiven debt, nor the value of their currency. According to all the information you have been posting, its not me that needs to spend time "brushing up on their studies".   You have shown you clearly dont know much about this investment....I feel for you.....I was in your position at once....until I really started doing my own homework. You have a long ways to go my friend.....keep on truckin.....you will be there soon enough....

lol... You misread what I said. Carry on with your pessimism. You are only hurting yourself. 

Detach your emotions b/c it seems to be affecting the members here. You bully them off the boards with idiotic debates.

 

My lesson for you is done today.

[keepmwlknfny]

lol... You misread what I said. Carry on with your pessimism. You are only hurting yourself. 

Detach your emotions b/c it seems to be affecting the members here. You bully them off the boards with idiotic debates.

 

My lesson for you is done today.

There is no pessimism/optimism in understanding information, In understanding facts. Only when hoping for a certain outcome....geeze.....how old are you? 13?  

 

Hoping for a certain outcome is different then grasping the information put in front of you. When you can comprehend that, and what you posted today, you might have a little more validity in your words and yourself.

 

 

Your more then welcome to show me what I misread, but all i saw was you posting definitions of terms above your knowledge and making unrelated statements to what I posted....

Edited October 23, 2013 by keepmwlknfny