Dinar Revaluation

[tenmillion]

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?

 

*I don't think they are intentionally using  MCP. There was an increased demand for foreign exchange because of dollars going to Syria. That caused the  spread between the official rate and the parallel market rate ( up to that point it was below 2 percent) to climb, passing 9 percent back in May 2013.

 

*Since Iraq imports using dollars, there is not much demand for using the dinar. Iraq needs to diversify their non-oil economy and move to IMF Article 8. Article 8 would encourage foreign investment which would aid in the development of Iraq's economy. (There are several other factors that affect the IQD exchange rate....security, investment laws, political instability, the banking system, etc.)

 

*This is a good link which explains what influences exchange rates. My favorite is in the conclusion:

 

"While exchange rates are determined by numerous complex factors that often leave even the most experienced economists flummoxed, investors should still have some understanding of how currency values and exchange rates play an important role in the rate of return on their investments."

 

http://www.investopedia.com/articles/basics/04/050704.asp#ixzz25FC8wQcd (6 Factors That Affect Exchange Rates)

 

So there ya go..... a complex puzzle we've been trying to figure out!

[justchecking123]

*I don't think they are intentionally using  MCP. There was an increased demand for foreign exchange because of dollars going to Syria. That caused the  spread between the official rate and the parallel market rate ( up to that point it was below 2 percent) to climb, passing 9 percent back in May 2013.

 

*Since Iraq imports using dollars, there is not much demand for using the dinar. Iraq needs to diversify their non-oil economy and move to IMF Article 8. Article 8 would encourage foreign investment which would aid in the development of Iraq's economy. (There are several other factors that affect the IQD exchange rate....security, investment laws, political instability, the banking system, etc.)

 

*This is a good link which explains what influences exchange rates. My favorite is in the conclusion:

 

"While exchange rates are determined by numerous complex factors that often leave even the most experienced economists flummoxed, investors should still have some understanding of how currency values and exchange rates play an important role in the rate of return on their investments."

 

http://www.investopedia.com/articles/basics/04/050704.asp#ixzz25FC8wQcd (6 Factors That Affect Exchange Rates)

 

So there ya go..... a complex puzzle we've been trying to figure out!

My cerebellum digested this information quite easily.

 

Gracias!

[Maggie123]

Thank You TenMillion...Your Contributions Are MUCH Appreciated.

 

It's so good to see you back

[Rasica]

If the video is real, then the statement that it would take 2-3 years for currency reform means to me an 'exchanging process' under the newly reconnected

IQD to the GDP/GNP.

 

Where the removal of the last remaining three zero notes is a slow process of exchange and then removal from the 'open market' by the banks.

 

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Edited October 24, 2013 by Rasica

[zul]

 

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.

• http://cbi.iq/documents/Announcemen-A-13-11-2013.pdf 

•  

   To / approved banks exercise all banking / financial transfer companies approved all / exchange companies to bypass all (dollar selling prices)  11/13/2013

 

Beginning Dec.1st 2013, all banks and exchange companies are instructed to sell dollar to the public at  the price of 1177 dinar per dollar

 

1177 per dollar is about 1% of CBI selling price (1166)

 

Can we now say they have the mechanism to comply with IMF Article 8..?  

[zigmeister]

 

 

 

• http://cbi.iq/documents/Announcemen-A-13-11-2013.pdf 

•  

   To / approved banks exercise all banking / financial transfer companies approved all / exchange companies to bypass all (dollar selling prices)  11/13/2013

 

Beginning Dec.1st 2013, all banks and exchange companies are instructed to sell dollar to the public at  the price of 1177 dinar per dollar

 

1177 per dollar is about 1% of CBI selling price (1166)

 

Can we now say they have the mechanism to comply with IMF Article 8..?  

 

Thanks Zul I think we do.

[DinarThug]

Uh hello, did you not read several months back where wife in the know had cashed out? There is a link

Can we now say they have the mechanism to comply with IMF Article 8..?

And Now All Of A Sudden Wife In The Know Has Resurfaced !

Coinkidink ? I Don't Think So ...

[AmericaInc]

And what is your take on this Mr.Optimistic?

 

Should we be excited?

So how many negs does Keep need to accumulate before the mods kick him into the Lopster pile?

Good observation, I watched the video 6 times and I also did notice that in big letters across the screen "DINAR REVALUATION" was captioned. 

It might be a "revaluation" - if you take this term literally, the price could go either way. Of course we expect it to go up...

and it could go up:

 

in a free float

in a managed float

in an RD (No!!!)

in an RV

in some kind of hybrid regime

 

They will keep saying "redenomination" until the the day it happens...so let's STOP ruminating about the term. And yes, it does go "up" in and RD because if they LOP the zeros it's $1.18USD or thereabouts and then they go up from there, to say around Kuwait's level. We make a few times our money - air out of the balloon.

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.

You mean you have been here for years...for a few thousand bucks?

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.

Excellent Belecosity. Thank you so much.

I learned something new here - that Iraq is in a rare position with dual currencies, and under IMF control, to declare the dinar what they want to, based on certain parameters...while using the dollar for all major contracts, therefore not destabilizing their country when they RV...this is great news...

Posting has been a little easier the last couple of days... but if I chose to do that (007) I'd ask permission and make it known to everyone...

 

Like it wouldn't be obvious...  Maggie 007 does have a nice ring to it though... don't you think?

 

I always loved Nancy Drew when I was a kiddo.

I read the Hardy Boys.

I like your posts by the way - are are gentle person.

Who is talking about a lop? Lol at least you could be relevant in your posts. But if you insist, the only ones bringing it and and starting threads about it are some of the go rvers who dont understand what they are posting or simply people curious and asking questions about it

You have GOT to be kidding Keep...

"Who's talking about an LOP?"

 

Look, I know you're on the fence when cornered...but you have most of your body on the RD side, believe me,

and go after any Rv'ers like a rabid dog...

[justchecking123]

Not sure it's a good thing to get THIS thread up and cranking again...

[Gunshow2425]

So how many negs does Keep need to accumulate before the mods kick him into the Lopster pile?

It might be a "revaluation" - if you take this term literally, the price could go either way. Of course we expect it to go up...

and it could go up:

 

in a free float

in a managed float

in an RD (No!!!)

in an RV

in some kind of hybrid regime

 

They will keep saying "redenomination" until the the day it happens...so let's STOP ruminating about the term. And yes, it does go "up" in and RD because if they LOP the zeros it's $1.18USD or thereabouts and then they go up from there, to say around Kuwait's level. We make a few times our money - air out of the balloon.

You mean you have been here for years...for a few thousand bucks?

Excellent Belecosity. Thank you so much.

I learned something new here - that Iraq is in a rare position with dual currencies, and under IMF control, to declare the dinar what they want to, based on certain parameters...while using the dollar for all major contracts, therefore not destabilizing their country when they RV...this is great news...

I read the Hardy Boys.

I like your posts by the way - are are gentle person.

You have GOT to be kidding Keep...

"Who's talking about an LOP?"

 

Look, I know you're on the fence when cornered...but you have most of your body on the RD side, believe me,

and go after any Rv'ers like a rabid dog...

ugh…don't quote people from OCTOBER 23RD in a negative manner.  Whats the point?

 

Not sure it's a good thing to get THIS thread up and cranking again...

 

I concur!

[dontlop]

So how many negs does Keep need to accumulate before the mods kick him into the Lopster pile?It might be a "revaluation" - if you take this term literally, the price could go either way. Of course we expect it to go up...and it could go up: in a free floatin a managed floatin an RD (No!!!)in an RVin some kind of hybrid regime They will keep saying "redenomination" until the the day it happens...so let's STOP ruminating about the term. And yes, it does go "up" in and RD because if they LOP the zeros it's $1.18USD or thereabouts and then they go up from there, to say around Kuwait's level. We make a few times our money - air out of the balloon.You mean you have been here for years...for a few thousand bucks?Excellent Belecosity. Thank you so much.I learned something new here - that Iraq is in a rare position with dual currencies, and under IMF control, to declare the dinar what they want to, based on certain parameters...while using the dollar for all major contracts, therefore not destabilizing their country when they RV...this is great news...I read the Hardy Boys.I like your posts by the way - are are gentle person.You have GOT to be kidding Keep..."Who's talking about an LOP?" Look, I know you're on the fence when cornered...but you have most of your body on the RD side, believe me,and go after any Rv'ers like a rabid dog...

Yep 1.18 dinar per dollar

Or .86 cents per dinar

Or $860 dollars per million

[keepmwlknfny]

So how many negs does Keep need to accumulate before the mods kick him into the Lopster pile?It might be a "revaluation" - if you take this term literally, the price could go either way. Of course we expect it to go up...and it could go up: in a free floatin a managed floatin an RD (No!!!)in an RVin some kind of hybrid regime They will keep saying "redenomination" until the the day it happens...so let's STOP ruminating about the term. And yes, it does go "up" in and RD because if they LOP the zeros it's $1.18USD or thereabouts and then they go up from there, to say around Kuwait's level. We make a few times our money - air out of the balloon.You mean you have been here for years...for a few thousand bucks?Excellent Belecosity. Thank you so much.I learned something new here - that Iraq is in a rare position with dual currencies, and under IMF control, to declare the dinar what they want to, based on certain parameters...while using the dollar for all major contracts, therefore not destabilizing their country when they RV...this is great news...I read the Hardy Boys.I like your posts by the way - are are gentle person.You have GOT to be kidding Keep..."Who's talking about an LOP?" Look, I know you're on the fence when cornered...but you have most of your body on the RD side, believe me,and go after any Rv'ers like a rabid dog...

Did you read it correctly? No one was talking about a lop in this thread. Thank you.....

And I dont go after people in the sense your talking about....I will question people thoroughly when they bring up a RV scenario.....thats a little different....

[new york kevin]

" ... I will not debate." Sounds like your quoting The President now. Are you changing your name to Mr O. ? LOL. The world is topsy turvy, Keep I gave you a positive bringing you down from a neg 19 to neg 18. Whats happening???

 

This is DV debating. and yes I agree Mr Opitmistic it is/was a good article pointing towards the IQD ability to increase in value. Just because its old does not invalidate the information contained in it. As is the info in the articles regarding India, China, Jordan entering into trade agreements with GOI using Iraqi currency, can you say increase that velocity behind IQD. Or todays article where Iraq is dealing like a sharp businessman and offering extended promise to pay periods, from 30 days up to now 60 days to pay if India increases their volume of bpd in 2014. Taking advantage over Iran due to sanctions and the difficulties of doing business with em. Shell is doubling down and has now practically committed to building a  new $11 billion (USD) petro chemical plant, on top of agreeing to a $11.25 billion natural gas deal, on top of their Majoon oil field deal. CBI issuance of bonds in IQD. All of this stuff and hundreds of more articles out of Iraq are pointing to the GOI/CBI ability to start increasing the value of the IQD ... NOW.

 

Please note I used the phrase " increasing the value of the IQD. " This choice is due to the fact that some DV followers, and you know who you are

(I will start namin names if ya'll don't start cuttin it out), are now into semantics over what some call this investment, or the dynamics there of. You see technically this investment has all the earmarks of a currency speculation. They also like slamming those who call for an RV or a RD or a managed float etc. Challenging folks near and far to prove one currency that has ever RV'd. Like its some kind of sin that many terms blur the lines, not our fault they are interchangable. Alot of these terms are valid economic 101 type terms. What the heck, who cares, if someone misapplies it once in a while, or all the time for that matter. Call it whatever so long as it increases in value by whatever means they can. And tell them to do it NOW.