local currency bond issuance would improve the value of the Iraqi dinar

[SocalDinar]

Smart answer: local currency bond issuance would improve the value of the Iraqi dinar 17-11-2013 12:43 PM Baghdad (newsletter). She is a member of the Finance Committee, a Deputy from the Kurdistan Alliance//smart Najeeb, the new Central Bank issue bonds in dinars within the Bank's policy to improve the value of the Iraqi currency against other currencies.Najib said (News Agency): former Central Bank bonds were in foreign currency, the Bank of dinar bond issue not to restrict its work to other currencies.She added that the Bank will increase the bond order for five years and hopes the Central Bank issued the first tranche before the end of the year, although that decision will be taken with the participation of the Ministry of finance. He said Abdel Basset Turki said Iraqi Central Bank Governor that Iraq is planning to issue bonds in local currency for the first time for the financial policy and not for the purpose of financing./finished/5 l. Eng. -

 

http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http%3A%2F%2Fwww.ikhnews.com%2Findex.php%3Fpage%3Darticle%26id%3D108214

[pokerplayer]

Sounds real good, let's hope this will assist with the RV,

 

Thxs SD +1 for the post  

 

pp

[millionaire in training]

Man I hope this is a turning point for the dinar ........make it happen  

[GGGECKO]

We can only hope that this is a catalyst for the RV. We got to hope that the Central Bank decides to do it's job....

 

Go RV. Thanks SD!!!

[jeepguy]

although that decision will be taken with the participation of the Ministry of finance. He said Abdel Basset Turki said Iraqi Central Bank Governor that Iraq is planning to issue bonds in local currency for the first time for the financial policy and not for the purpose of financing./finished/5 l. Eng. -

 

http://www.microsofttranslator.com/bv.aspx?from=&to=en&a=http%3A%2F%2Fwww.ikhnews.com%2Findex.php%3Fpage%3Darticle%26id%3D108214

the decision will be taken participation of finance minister  {  I re-typed  this part , as  I think someone a few days ago , ask ,or stated  , the same idea ,  the finance guy  stated that the dinar can with stand 2.50  <------ wonder if that  is the target  point ?

[keepmwlknfny]

Looking for change in market rate first......

[sandfly]

THANKS

[zigmeister]

Looking for change in market rate first......

What exactly do you mean Keep?

[keepmwlknfny]

What exactly do you mean Keep?

Tenmillion had posted some info a few weeks ago stating that under their current IMF standings thay the market rate and official rate could not differ more then 2 percent.....

I still believe that the key wouod be seeing the market rate getting lower then the official rate first. I could be wrong but it makes sense to me anyways. Cause if they cant even get the citizens to accept a higher value, where is the confidence with the rest of the world accepting a higher value?

Also note that most of the articles that refer to a higher exchange rate are talking about the market rate so my assumption although dangerous lol would be that this is also referring to getting the market rate lower....

[zigmeister]

Tenmillion had posted some info a few weeks ago stating that under their current IMF standings thay the market rate and official rate could not differ more then 2 percent.....

I still believe that the key wouod be seeing the market rate getting lower then the official rate first. I could be wrong but it makes sense to me anyways. Cause if they cant even get the citizens to accept a higher value, where is the confidence with the rest of the world accepting a higher value?

Also note that most of the articles that refer to a higher exchange rate are talking about the market rate so my assumption although dangerous lol would be that this is also referring to getting the market rate lower....

I was thinking it was to bring the two rates closer together.  However if this works, people buy the bonds, they bring people in the bank and bring the dinar off the streets bringing the rate up....right?

[unirod]

The Dinar Bond offer is said to be the value of 2.3 Million USD. I do not think such a small amount is enough to even ripple the market rate...IMO

[zigmeister]

The Dinar Bond offer is said to be the value of 2.3 Million USD. I do not think such a small amount is enough to even ripple the market rate...IMO

As I understand it, there are more bonds they will issue.  It makes sense they would start small.  First you have to get the Iraqi people to buy them, let alone go into the bank and buy them.  I would not be surprised to see the exchange rate rise.  It won't take long before more people will begin to invest in the bonds.  Right now they are putting out the bait.

[sandstorm]

itll be used to stabilize the market rate, a monetary tool.

will they use it to remove 50-90% of dinar in circulation? no, thats unimaginable, and will do the opposite of its purpose. stability is the goal.

any country would rather devalue its currency instead of revalue anyways.

it does iraq no good at all to revalue their currency. its an extreme cost, that does nothing. if they ever want a 1:1, they will replace the currency and it will cost them the minimum, compared to any other scenario

We can only hope that this is a catalyst for the RV. We got to hope that the Central Bank decides to do it's job....

 

Go RV. Thanks SD!!!

the cbi has and is doing its job. inflation is around 2%, their beginning to control the market rate. they are doing what they do.

the central banks job is not to rv and cost its country its reserves and currency stability. please refer to the cbis main primary objective

[zigmeister]

it does iraq no good at all to revalue their currency. its an extreme cost, that does nothing. if they ever want a 1:1, they will replace the currency and it will cost them the minimum, compared to any other scenario

I would have to disagree somewhat with this, being they are at this time an importing country it would be very helpful in buying commodities and products internationally.  Far better for them to use their dinar than dollar.  They need stuff to help build their country on an international level.  So revaluing even a small increment would be a good thing.  Devaluing....well that is not going to happen, dinar has only one way to go, but up.  

 

They don't have to RD btw, there are other ways around it, one of course is bonds.

[zigmeister]

I must clarify, I am not saying bonds are the answer but yes a tool to remove dinar off the streets of Iraq.  This would open the door to other avenue's.

[Carvette]

there are so many "reads" out there. my mind is on over-load. I have read so many more things that don't get into this DinarVets, and it leads to a RV very soon due to so many things they have and will do....Go RV

[Gullywumper]

I would'nt buy any country's bonds! I bought US war bonds back in the 60's

and guess what they are worth today NOT A DAM THING!

Just like our country does with money just keep printing them up until they are worthless!

Wonder how many Iraq will print up just like the dinar?Your better off buying the current

dinar and sitting on it like I have for over 9 years.No one in their right mind would go into

Iraq and invest, there insurance company would drop them like a rock.To many idiots

blowing things up and if your from the west you might not live to see the next day.

There is no stability in Iraq,The banksters have screwed their own people and are forcing them

to use our sorry arsed dollar infidel money.The war was fought in the peoples back yard

and what did they give there people for it NOTHING! The banksters scooped up all the large

notes so their own people could not make bank.Now they want them to buy their bonds

Good Luck with that! They have no control over their current government just like us

just filthy greed and thats all these bonds are for.They will just hedge the profits from these

bonds and when they lose which they will they wont be worth spit just like my US war Bonds.

Lets see is the dollar worth 82cents? oh 4 cents did my bonds make bank?

And dont forget the spread when you cash them out!Whats bad is I bought 500 of them

and I will BURN each and every one of them before I let our gov have them that cheap.

And I know what your thinking well their bonds are already cheap they have to go up

wanna bet?Lets see lets make a new currency but print up 30+ trillion of it

the cost is worth more than the value of it.Bonds are a straight up scam!

When you buy these bonds see if they will let you buy it with dinar.ROFLMAO!

that should tell you something.I was a sucker once but not twice!You should have seen

the look on my bankers face before I removed my cash from his bank and I showed him

those war bonds he LOOKED DOWN to the ground in shame!IN SHAME!

The only way I will buy those bonds is if I can buy them with Dinar they can

trash the currency but not the Bond.

[zigmeister]

I would'nt buy any country's bonds! I bought US war bonds back in the 60's

and guess what they are worth today NOT A DAM THING!

Just like our country does with money just keep printing them up until they are worthless!

Wonder how many Iraq will print up just like the dinar?Your better off buying the current

dinar and sitting on it like I have for over 9 years.No one in their right mind would go into

Iraq and invest, there insurance company would drop them like a rock.To many idiots

blowing things up and if your from the west you might not live to see the next day.

There is no stability in Iraq,The banksters have screwed their own people and are forcing them

to use our sorry arsed dollar infidel money.The war was fought in the peoples back yard

and what did they give there people for it NOTHING! The banksters scooped up all the large

notes so their own people could not make bank.Now they want them to buy their bonds

Good Luck with that! They have no control over their current government just like us

just filthy greed and thats all these bonds are for.They will just hedge the profits from these

bonds and when they lose which they will they wont be worth spit just like my US war Bonds.

Lets see is the dollar worth 82cents? oh 4 cents did my bonds make bank?

And dont forget the spread when you cash them out!Whats bad is I bought 500 of them

and I will BURN each and every one of them before I let our gov have them that cheap.

And I know what your thinking well their bonds are already cheap they have to go up

wanna bet?Lets see lets make a new currency but print up 30+ trillion of it

the cost is worth more than the value of it.Bonds are a straight up scam!

When you buy these bonds see if they will let you buy it with dinar.ROFLMAO!

that should tell you something.I was a sucker once but not twice!You should have seen

the look on my bankers face before I removed my cash from his bank and I showed him

those war bonds he LOOKED DOWN to the ground in shame!IN SHAME!

The only way I will buy those bonds is if I can buy them with Dinar they can

trash the currency but not the Bond.

I see you are in a pleasant frame of mind today.  These bonds are being offered to the Iraqi people, not for international sales, so you are not included in these sales.  Yes they are asking them to bring their dinar in for bonds.  One more thing, which has skipped by many of us, including myself, the bonds are electronic, which means the banks electronic capabilities are up and ready to roll.  A sign of progress for Iraq.

[vomer]

Bond.  James Bond.

 

[Gullywumper]

I see you are in a pleasant frame of mind today.  These bonds are being offered to the Iraqi people, not for international sales, so you are not included in these sales.  Yes they are asking them to bring their dinar in for bonds.  One more thing, which has skipped by many of us, including myself, the bonds are electronic, which means the banks electronic capabilities are up and ready to roll.  A sign of progress for Iraq.

Oh Thank You for that response it was what I was waiting for.

Just as the War bonds were meant for us and no one else.They went down from the moment

they were created.So what your saying is they cant use the USA dollar to buy them they have to

lose money in converting the dollar back to dinar to buy these so called bonds?

And who is going to explain to these mostly uneducated folks buying these bonds the bank?

To me it sounds like they want to totally dry up the dinar make a profit from the conversion and then

sell them a worthless bond backed by what?Think about that.Would you fall for this?

So then after buying these bonds are they going to trickle up again 4 pips to show a gain

for buying these bonds that will be attached to what?

Please show me a bond that made a profit in todays economy.Mine sure didnt!

If they were smart they would let us buy those bonds with our dinar.Why not?

Progress in Iraq without a international traded currency?Roflmao.

Look at our country would you call that progress too?The rich fleecing the poor

I would'nt buy a single one of those bonds if I was a iraqi national.The stinch from this

whole thing tells the iraqi's we will lose from it too.And they would!

[sandstorm]

I would have to disagree somewhat with this, being they are at this time an importing country it would be very helpful in buying commodities and products internationally.  Far better for them to use their dinar than dollar.  They need stuff to help build their country on an international level.  So revaluing even a small increment would be a good thing.  Devaluing....well that is not going to happen, dinar has only one way to go, but up.  

 

They don't have to RD btw, there are other ways around it, one of course is bonds.

imo the bonds will be used to stabilize the market rate. when they start to import more and the budget grows more and more, they have to put out more dinar. the more dinar in the economy, the more dinar that will need to be yanked to maintain stability for the market rate to keep it within 2%.

i have evolved now into the theory, the cbi has no intention of increasing the rate passed 1000:1. i think they can play delays for another year or two. i see them leaving buffer room from 1166 to 1000 in the meantime. yet given their reserves, gold, oil, theyve yet to do squat except a 4 point move a year or so ago. i dont see the desire or any rush in changing whats currently happening.

any move past a 1000:1, would stun and change my opinion. unfortunately im beginning to think this currency will never get passed that point.

im one that would only expect small, gradual, consistent movement. i dont believe in any one time huge rv. imo, it goes against everything a central bank is supposed to do. imo, if and this is an imiganary if, the cbi rv"d to a dollar, theyd create runaway inflation, empty the reserves, all staff would be fired and probably given a life sentence. jmo

[whatsthis]

ok we still have people questioning how this will work I will do my best to explain this as simple as I can.

Teh CBI will issue dinar bonds these bonds are like when the US sells bonds to pay debt or interest on a debt. So what the CBI is doing is creating debtto reduce the supply of dinars in the market (on the streets of Iraq). What this will do is creat demand for the dinar.

Supply & Demand = lower supply higher the demand will become when demand goes up so does the value.

Thess bonds that the CBI will be selling will have a 5 year term with interest less than 6% so the citzen will have a chance to make money.

This reducing the money supply in the country is to bring the market rate back into the 2% the IMF has told them they have to be in to accept article 8 of the IMF.

Now this doesn't mean that they will accept it as soon as they are in the 2% but some would think that could be why they are doing it. This bond sales come from the IMF telling them to do this to get the market rate which is around 1220 dinars to 1 usd 2% would be 1179 dinars to 1 usd.

Than they could what the IMF calls a disorderly exit. & if they did this it would put more pressure on parliament to pass those economic laws they are sitting on.

[zigmeister]

ok we still have people questioning how this will work I will do my best to explain this as simple as I can.

Teh CBI will issue dinar bonds these bonds are like when the US sells bonds to pay debt or interest on a debt. So what the CBI is doing is creating debtto reduce the supply of dinars in the market (on the streets of Iraq). What this will do is creat demand for the dinar.

Supply & Demand = lower supply higher the demand will become when demand goes up so does the value.

Thess bonds that the CBI will be selling will have a 5 year term with interest less than 6% so the citzen will have a chance to make money.

This reducing the money supply in the country is to bring the market rate back into the 2% the IMF has told them they have to be in to accept article 8 of the IMF.

Now this doesn't mean that they will accept it as soon as they are in the 2% but some would think that could be why they are doing it. This bond sales come from the IMF telling them to do this to get the market rate which is around 1220 dinars to 1 usd 2% would be 1179 dinars to 1 usd.

Than they could what the IMF calls a disorderly exit. & if they did this it would put more pressure on parliament to pass those economic laws they are sitting on.

I think you stated this very clearly.  Good job.

[zigmeister]

imo the bonds will be used to stabilize the market rate. when they start to import more and the budget grows more and more, they have to put out more dinar. the more dinar in the economy, the more dinar that will need to be yanked to maintain stability for the market rate to keep it within 2%.

i have evolved now into the theory, the cbi has no intention of increasing the rate passed 1000:1. i think they can play delays for another year or two. i see them leaving buffer room from 1166 to 1000 in the meantime. yet given their reserves, gold, oil, theyve yet to do squat except a 4 point move a year or so ago. i dont see the desire or any rush in changing whats currently happening.

any move past a 1000:1, would stun and change my opinion. unfortunately im beginning to think this currency will never get passed that point.

im one that would only expect small, gradual, consistent movement. i dont believe in any one time huge rv. imo, it goes against everything a central bank is supposed to do. imo, if and this is an imiganary if, the cbi rv"d to a dollar, theyd create runaway inflation, empty the reserves, all staff would be fired and probably given a life sentence. jmo

I don't believe in a huge RV for sure.  But, it is possible if these bonds work for them and bring their 2% between market rate and real rate, which I think they will.  They move into article 8, WTO, so on so forth.   It would not surprise me at all to see Iraqi international bonds offered to the international world.  Some of us would be inclined to buy some would we not?  It is something Turki stated a while back.  I believe it was in the article they could back dinar, I can't remember the percentage right off the top of my head now.  Anyway he stated something to the effect he felt the people who have invested in dinar internationally will be inclined to reinvest their money back into the Iraq.  I am thinking bonds might have been one of these avenues.  So let's say they offer bonds internationally, we take our dinar in for some bonds......less dinar, more valuable.  Could be a win win for everyone.  Just a thought.

[Gullywumper]

Who is gonna trade their dollar for a worthless dinar plus pay the spread to covert back

to buy these bonds?Is it Guaranteed that this bond will pay them back the yield that they say

at under 6%? Thats what they told me when I bought US war bonds and what did I get?

The shaft is what I got.Electronic banking is a failure from the get go.If the IMF's model for

banking is so great then why are most of our banks filing chapter 13 and closing?You cant guarantee

a bond when the leaders of your country are crooks.I would just love to see the IMF post showing

this is how much dinar we have removed from the streets and have destoyed it.That will NEVER happen

Yeah lets set these banks up with a fiat plan to save their country.Let the euorpean and USA banks show them

how its done.Oh yeah! we are so good at robbing the citizens of its country.

I am willing to bet those bonds wont yield 1% what are they going to invest in that can produce that kind of yield

without the crooks I mean bankers hedging it and losing it.Make more bonds to pay off that debt too.

The only thing Iraq has is oil and not as much as you may think they have.I have spoken to a shell geologist

and he says that over half of their reserves are gone and most of it tied up in debts to other countries.

Without Iraq manufacturing anything viable to sell outside their country where are the profits gonna come

from?Hmmmm buy bonds my arse.If there was money to be made from these bonds they would'nt tell

us lower peons this information.Just like something else.I would be scarred to even buy those bonds with

my dinar that I have now because their is NO GUARANTEE they will pay.One war does what to a countries

money supply after they issue those bonds.5 years they can guarantee nothing will happen to their money supply?

Oh Yeah sell me crazy I need some more.

What Whatsthis posted is true and well written but do you think that bankers follow this and do only right

with YOUR money?Wooooo Hoooooo doing and saying are 2 differant animals.They only see profit

NOW not 5 years from now.Next they will say here is a new Iraqi Credit card and why not

buy some bitcoins while you are at it.Just remember who's banking model are they following?

Thats the Key.When shell sold most of their stocks and are getting out of the oil and gas industry

tells me that we have consumed most of the oil that was in the ground.Thats why were digging through

shale getting junk oil.That should tell you something right there.Iraqi Oil to back some 30trillion

dinar that they dont have.I want this RV as bad as most of you but do some research in just what Iraq

sells for profit.Why go to a fiat system if you have that kind of oil in the ground.Because they dont.

Why did I watch haliburton drill a thousand plus wells while I was over their its because they

wanted to know just how much oil they have.They pulled out as well.

Whats that tell you?They didnt spend 10 years there to help the Iraqi's.

Its a trap and the iraqi's will get caught.I feel sorry for them and I hope to hell they dont buy

these bonds.Would you buy any USA bonds right now?Now do you want them to buy theirs?

Crooked arse banks they got your back right?