Dinar Revaluation

[Belecosity]

Having an internationally traded currency or not does not affect a countries ability to RD, but the implications that having an international currency bring do affect a currencies ability to fluctuate in value. A redenomination with a convertible currency or a non convertible currency is acceptable because no banks or people are losing out. That is my point. A revalue with a convertible currency does have losers and winners. BA's within banks would lose or gain big and the monetary systems that are intertwined with said currency would go wild. That's why I am implying that if any country was to RV, Iraq, solely due to the fact that their currency is not affecting other currencies world wide, is in a good position to do that. If china or India revalued their currency instead of an RD, for no reason, the world would react by slamming the currency on the forex back to the levels it should have been at. But if chinas currency was solely held within country and they used the USD for foreign trade, they could whatever they wanted to do with the yen they theoretically could if the US recognizes it as viable. Now I do agree that if the dinar becomes unpegged From the dollar then they have a good chance that their currency will experience gains. Any large scale gains , however, I think would have to occur before they become convertible because I cannot recall any currency that rose on the forex drastically without banks stepping in and stopping it. Like I said, the banks around the world , once a currency is international, have a large say in whether a currency rises or falls. Regardless of their actually value. Kuwait unpegged from the dollar and had gains, but nohing like the 250% gains the CBI claims to be able to withstand http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axpON9NWC0W4

[GGGECKO]

And you know I thought you guys were playing nice together. Thank you for your post Mr. Optimistic. Keep your right but you've got to dial it down with your attacks brother. I've found as I've gotten older that I don't have to win every argument. This helps retain employees and gets people to work with you instead of against you. Something you learn forming 6 companies. Just saying.

 

Go RV and Good Luck to us all

[keepmwlknfny]

Having an internationally traded currency or not does not affect a countries ability to RD, but the implications that having an international currency bring do affect a currencies ability to fluctuate in value. A redenomination with a convertible currency or a non convertible currency is acceptable because no banks or people are losing out. That is my point. A revalue with a convertible currency does have losers and winners. BA's within banks would lose or gain big and the monetary systems that are intertwined with said currency would go wild. That's why I am implying that if any country was to RV, Iraq, solely due to the fact that their currency is not affecting other currencies world wide, is in a good position to do that. If china or India revalued their currency instead of an RD, for no reason, the world would react by slamming the currency on the forex back to the levels it should have been at. But if chinas currency was solely held within country and they used the USD for foreign trade, they could whatever they wanted to do with the yen they theoretically could if the US recognizes it as viable. Now I do agree that if the dinar becomes unpegged From the dollar then they have a good chance that their currency will experience gains. Any large scale gains , however, I think would have to occur before they become convertible because I cannot recall any currency that rose on the forex drastically without banks stepping in and stopping it. Like I said, the banks around the world , once a currency is international, have a large say in whether a currency rises or falls. Regardless of their actually value. Kuwait unpegged from the dollar and had gains, but nohing like the 250% gains the CBI claims to be able to withstand http://www.bloomberg.com/apps/news?pid=newsarchive&sid=axpON9NWC0W4

You are correct about redenominating, no one would lose out either way. I can also agree with you on that!! And yes in any case revaluing the currency will have its ups and downs, its winners and losers.  

 

I do see what your saying about the dinar not really having an effect on the global market, that is true. Not much of a demand for it anywhere except really in the hands of speculators. So I do see where your coming from on that respect. That now would be a better time to do it if any.....any why the hell havent we seen those gains seems to be the biggest question out here!  They have openly stated they can support 2.5 times its current rate....so why not do it now??

 

They would still be covered 100%.....

And you know I thought you guys were playing nice together. Thank you for your post Mr. Optimistic. Keep your right but you've got to dial it down with your attacks brother. I've found as I've gotten older that I don't have to win every argument. This helps retain employees and gets people to work with you instead of against you. Something you learn forming 6 companies. Just saying.

 

Go RV and Good Luck to us all

I didnt come out at him.....I dont normally start it. Its the ones that want to be a smart arse with me so i give it back 110%.  Read through the thread....  = )

[Belecosity]

Belecosity: I follow you and appreciate your contribution.

thanks

[Belecosity]

You are correct about redenominating, no one would lose out either way. I can also agree with you on that!! And yes in any case revaluing the currency will have its ups and downs, its winners and losers.  

 

I do see what your saying about the dinar not really having an effect on the global market, that is true. Not much of a demand for it anywhere except really in the hands of speculators. So I do see where your coming from on that respect. That now would be a better time to do it if any.....any why the hell havent we seen those gains seems to be the biggest question out here!  They have openly stated they can support 2.5 times its current rate....so why not do it now??

 

They would still be covered 100%.....

 

 

 

 honestly that is what I have trying to get across  this whole time. lol. sorry i have been on my phone this whole time,, and it can get so annoying to keep your thoughts flowing.

in conclusion "they are in a unique position to make drastic changes if their house is in order. "

 

now to why they haven't done anything even though they could and should....i guess that's why were all here.

I really don't get why people bash you... yah I guess you can be a little harsh, but others are just as harsh to you.

 

I would never recommend this investment to someone trying to retire safely, but i'm only 25 and I could care less if I lose a few grand, I will never make even %250 in any mutual fund or recommended investment in 30 years, so this for me, whether its pans out like i want it to or not, is a great speculation.

 

If you want to make real profit, you have to be able to research on your own and take risks. It's just how it works.

[Maggie123]

Keepums and Belecosity... BRAVO!!!!

 

I can't thank you two enough for a wonderful debate!

 

Very much appreciate all of your time and efforts... I learned a lot from you both

 

 

PS. Belecosity... 25 Really??? You Are A Brilliant Young Person!

 

You are going to do very well in life no matter what... Salute'

[tenmillion]

 It would be a benefit for Iraq to move to IMF Article 8. In the last Article IV consultation, the IMF suggested that Iraq comply with Article 8 Terms of Agreement.

The problem seems to be that Iraq chooses to stay in transitional Article XIV and restrict their currency rather than use Middle East and North Africa Financial Action Task Force (MENA FATF) recommendations to combat money laundering~terrorism.

 

Here are the 8 restrictions:

 

Iraq continues to avail itself of the transitional arrangements under Article XIV. Eight exchange 

restrictions (plus one exchange restriction maintained for national or international security) and one 

multiple currency practice (MCP) are subject to IMF jurisdiction and approval. The exchange 

restrictions are 

 

(i) the limitation that corporates can purchase foreign exchange in the auction for 

import transactions only; 

 

(ii) limitation on the availability of foreign exchange cash for individuals 

(i.e., one request per month); 1

 

 

(iii) maximum limits on the availability of foreign exchange cash in the 

auction for banks;2

 

 

(iv) maximum limits on the availability of foreign exchange cash in the auction for money transfer companies and money exchange bureaus;3

 

 

(v) the requirement to pay all obligations 

 

 

and debts to the government before proceeds of investments of investors, and salaries and other compensation of non-Iraqi employees may be transferred out of Iraq; 

 

(vi) the requirement to submit a tax certificate and a letter of non-objection stating that the companies do not owe any taxes to the government before non-Iraqi companies may transfer proceeds of current international transactions 

out of the country;

 

(vii) the requirement that before non-Iraqis may transfer proceeds in excess of ID 15 million out of Iraq, the banks are required to give due consideration of legal obligations of these persons with respect to official entities, which must be settled before allowing any transfer; and 

 

(viii) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In 

addition, one exchange restriction maintained for security reasons should be notified to the IMF 

under the framework of Decision 144-(52/51). The MCP arises from the absence of a mechanism to 

ensure that the official exchange rate and the market exchange rate do not deviate by more than 

2 percent.

[Belecosity]

Keepums and Belecosity... BRAVO!!!!

 

I can't thank you two enough for a wonderful debate!

 

Very much appreciate all of your time and efforts... I learned a lot from you both

 

 

PS. Belecosity... 25 Really??? You Are A Brilliant Young Person!

 

You are going to do very well in life no matter what... Salute'

Wow maggie, thank you very much! be blessed!

[keepmwlknfny]

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....

LOL I think Markinsa messed that box up a little hahaha.....

 

This was my reply to MrOptimistic!

[Belecosity]

LOL I think Markinsa messed that box up a little hahaha.....

 

This was my reply to MrOptimistic!

lol yah i was just reading though and noticed that. I knew i wasn't that smart

[keepmwlknfny]

 honestly that is what I have trying to get across  this whole time. lol. sorry i have been on my phone this whole time,, and it can get so annoying to keep your thoughts flowing.

in conclusion "they are in a unique position to make drastic changes if their house is in order. "

 

now to why they haven't done anything even though they could and should....i guess that's why were all here.

I really don't get why people bash you... yah I guess you can be a little harsh, but others are just as harsh to you.

 

I would never recommend this investment to someone trying to retire safely, but i'm only 25 and I could care less if I lose a few grand, I will never make even %250 in any mutual fund or recommended investment in 30 years, so this for me, whether its pans out like i want it to or not, is a great speculation.

 

If you want to make real profit, you have to be able to research on your own and take risks. It's just how it works.

LOL its all good....it can be tough to get across all your thoughts when on the phone. I know exactly what your talking about!!

 

Im just as stumped as many as to why no movement if they can back a higher value currently. Either they really are just interested in keeping the stable rate and want to show they have a strong currency (being as how much its backed by). They are still worried about the stability of the rate after the change, maybe it has something to do with them having such a problem even getting the market value to match the official value, or they havent had any plans on moving the value up in this fashion from the get go....

 

We will see.....hopefully soon.....

 

 It would be a benefit for Iraq to move to IMF Article 8. In the last Article IV consultation, the IMF suggested that Iraq comply with Article 8 Terms of Agreement.

The problem seems to be that Iraq chooses to stay in transitional Article XIV and restrict their currency rather than use Middle East and North Africa Financial Action Task Force (MENA FATF) recommendations to combat money laundering~terrorism.

 

Here are the 8 restrictions:

 

Iraq continues to avail itself of the transitional arrangements under Article XIV. Eight exchange 

restrictions (plus one exchange restriction maintained for national or international security) and one 

multiple currency practice (MCP) are subject to IMF jurisdiction and approval. The exchange 

restrictions are 

 

(i) the limitation that corporates can purchase foreign exchange in the auction for 

import transactions only; 

 

(ii) limitation on the availability of foreign exchange cash for individuals 

(i.e., one request per month); 1

 

 

(iii) maximum limits on the availability of foreign exchange cash in the 

auction for banks;2

 

 

(iv) maximum limits on the availability of foreign exchange cash in the auction for money transfer companies and money exchange bureaus;3

 

 

(v) the requirement to pay all obligations 

 

 

and debts to the government before proceeds of investments of investors, and salaries and other compensation of non-Iraqi employees may be transferred out of Iraq; 

 

(vi) the requirement to submit a tax certificate and a letter of non-objection stating that the companies do not owe any taxes to the government before non-Iraqi companies may transfer proceeds of current international transactions 

out of the country;

 

(vii) the requirement that before non-Iraqis may transfer proceeds in excess of ID 15 million out of Iraq, the banks are required to give due consideration of legal obligations of these persons with respect to official entities, which must be settled before allowing any transfer; and 

 

(viii) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In 

addition, one exchange restriction maintained for security reasons should be notified to the IMF 

under the framework of Decision 144-(52/51). The MCP arises from the absence of a mechanism to 

ensure that the official exchange rate and the market exchange rate do not deviate by more than 

2 percent.

 

Good to see you again Ten!  Thanks for jumping in!!

 

Do you have the information on what article 8 would allow them to do?

 

Cause maybe its article 14 keeping them from raising the value if they are saying that the market rate and exchange rate cannot deviate by more then 2 percent!!!

 

Also do you have the link to where you got this info?

Edited October 23, 2013 by keepmwlknfny

[keepmwlknfny]

Hey Ten,

The part I highlighted in bold below is the most intriguing.....do you know what the MCP stands for??  This would be the argument for why no rise in value has occured. Because they cannot even get the market rate higher then it is. They cant get it passed the official rate....

 

 

(viii) an Iraqi balance owed to Jordan under an inoperative bilateral payments agreement. In 

addition, one exchange restriction maintained for security reasons should be notified to the IMF 

under the framework of Decision 144-(52/51). The MCP arises from the absence of a mechanism to 

ensure that the official exchange rate and the market exchange rate do not deviate by more than 

2 percent.

 

So until they remove themselves from article 14, no go on any movement.....

 

Unless they are purposely keeping themselves in article 14 for other reasons that we dont want to hear lol......

[dontlop]

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.[/size]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".[/size]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 wohich 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.

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.[/size]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".[/size]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.

Thanks

[tenmillion]

I would say for investment purposes such as eliminating exchange controls on current and capital account transactions.

 

Iraq is also applying for WTO membership. IMF Article 8 is a requirement to be a member.

 

MCP = Multiple Currency Practices

Edited October 23, 2013 by tenmillion

[Irish75]

Why is Keep even in this? Sell your Dina Keep and move on.

 

I don't believe everything I read but I don't bash people and claim I know everything.

 

Sell your Dinar (if you even have any) and move on , go change the oil in that 740iL, do something anything get a life.

[keepmwlknfny]

 

I would say for investment purposes such as eliminating exchange controls on current and capital account transactions.

 

Iraq is also applying for WTO membership. IMF Article 8 is a requirement to be a member.

 

MCP = Multiple Currency Practices

 

Ok so then it seems until they remove themselves from 14 completely, there really isnt much hope for movement.

 

Or until they remove themselves from observer status with the WTO.

 

Am I reading that correctly? What would they consider multiple currency practices?

[dontlop]

Hey KEEP, do you know what an odious debt is?http://www.cato.org/publications/policy-analysis/iraqs-odious-debts your narcissism is over feeding your ego.

.

I hope everyone opens and reads this link from Cato institute

[keepmwlknfny]

Why is Keep even in this? Sell your Dina Keep and move on.

 

I don't believe everything I read but I don't bash people and claim I know everything.

 

Sell your Dinar (if you even have any) and move on , go change the oil in that 740iL, do something anything get a life.

You should just stick to yourself if you have nothing to contribute!  = ) You are taking information presented way too personal lol.....you need to detach all emotion from this. It will help you!!

[dontlop]

I wonder mr optimistic

I wonder if they will be held responsible for his printing of all those dinars since he devalued his currency and used that money to repress the citizens of iraq

I wonder mr optimisticI wonder if they will be held responsible for his printing of all those dinars since he devalued his currency and used that money to repress the citizens of iraq

Currency is nothing more than debt notes

[dontlop]

He spent all the value right out of those dinars till his last days building palaces for himself and buying weapons to repress the people of Iraq

Great link you provided mr optimistic

Again here's the link thanks mr o

Iraq’s Odious Debts

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

[keepmwlknfny]

I wonder if they will be held responsible for his printing of all those dinars since he devalued his currency and used that money to repress the citizens of iraq

 

It appears they are since the amount was transferred to the new IQD plus some!  Most of the debts forgiven so their economy can thrive, but its not all forgiven. They are held responsible for even some of those.

[JMULS31]

How about you stick to yourself since you bring nothing but negativity about information that you don't even fully understand.  You obviously don't have another life other than being on DV.

 

You should just stick to yourself if you have nothing to contribute!  = ) You are taking information presented way too personal lol.....you need to detach all emotion from this. It will help you!!

[keepmwlknfny]

How about you stick to yourself since you bring nothing but negativity about information that you don't even fully understand.  You obviously don't have another life other than being on DV.

You care to enlighten me then oh gracious one on what information it is that I dont understand??  Or just wanna make nonsensical statements and run off with your tail between your legs? 

[Irish75]

 Right there Keep look how you replied to JMULS31 and the type of attitude you came across with. "oh gracious one on what information don't I understand" I know everything is the way it came across to me. People get turned off by negative and I'm right all the time attitudes this is why I said I would never let you near the front counter at my business. I'm not saying your wrong about what is going on with the Dinar but you don't have to shoot everybody down when they bring a video or article over, I have no idea what Iraq is going to do and frankly neither do you.

 

I do not take this pesonally I read boith sides of the information and move on, I have my opinion on what I think it will do (float) but I'm not going to rip on somebody because they think it is going lop or RV that is their opinion and they are entitled to it. I do rip on people that hammer it home on ever post they post.

 

What gets me is why you even got involved with this in the first place and if you are so sure it is going to lop and the only way you can turn it in is in Iraq why you are not selling yours back to the dealer and get out?

[dontlop]

Agreed

It's like betting 5 dollars on a Dallas cowboy game

Then going to the game and sitting in the stand talking smack about the cowboys the entire game I front of the fans and complaining he just wants the truth to be heard

His minimul. Bet of 5 bucks is his pass to say what ever be wants as he claims

Hey I'm a cowboy fan I bet on the cowboys

And cant understand why the true cowboy fans are throwing beer in his face as he's running his pie hole

Edited October 23, 2013 by dontlop