Deleting the zeros is not what you want!

[keepmwlknfny]

that was not my question. I am asking what advantages does Kuwait have in having a strong valued dinar?

Not that it's really related to the thread but IMPORTS IMPORTS IMPORTS

Here is a question for you DB....I'm gonna let you find the answer....

What kind of currency (high or low valued) is advantageous for developing countries and economies such as Iraq?

[dontlop]

Hahaha there you go with that nonsense again....

So the US is just gonna redeem all that money through goods and services from Iraq? Hahaha

And what exactly can Iraq offer us there oh gracious one?

You cAnt read Keep I didn't say that but you did for some reason

Why do you make things up when the post is right there

Lower inflation: A strong currency lowers the cost of imported goods, enabling lower prices for consumers. This leaves more money in their pockets for local expenditure.

Lower costs for some exporters: those exporters that import raw materials from abroad in order to make their products, pay less for those materials. This offers some compensation for lower competition due to the stronger currency.

Acquisition Opportunities: A company from a country with a strong currency can buy a similar company or a supplier, in a country that has a weak currency. This enables the buying company to enjoy the strong currency in order to lower costs.

Low funding costs for governments: By having a strengthening currency, flows from outside the country often go into local government bonds. This flow can lower the yield and enable the country with the strong currency to raise money at cheaper rates in the markets.

Sense of wealth: While rising stock prices and rising home values have a stronger wealth effect, also a stronger currency helps: citizens of a country with a strong currency find it cheaper to take vacations abroad, improving their quality of life.

I like this - I can see the benefits to the Iraqi people from having a strong currency. Raise the value of the dinar it's way undervalued and allow the Iraqi people to have sence of wealth!!! Go RV!!!

Your right the oil exporting nations don't have much of a private sector in the Middle East especially Iraq

Their not worried about exporting goods as much as getting a good price on imports

The oil prices are set up in dollars so it doesn't matter for the exports of oil

Iraqs private sector only makes up about 10 % of the economy

They would be better off with a higher valued currency that's why they always had a higher valued currency

Hey keep the USA has trillions of dollars it doesn't mean someone can come to America with dollars and the USA has to give them Chinese wuan

Just like you can't go to Iraq with dinar and they have to give you dollars

Iraq is not a currency exchange

So is this where you say the us is gonna redeem all that money for goods and services

Oh brilliant one

I don't know why keep pretends the USA is holding dinar

If they did yes keep they could buy oil from Iraq for its strategic oil reserves they could exchange those dinar into petro dollars like every other currency

Did I say the policies are I place right now today keep ?

Did I say the USA excepts dinar right now keep

Your ignorance is showing from page one of this thread to this page

You really should put down the drugs or what ever your on

I'm not gonna argue for 80 pages with your ignorance. ....If you don't know what I'm talking about, then don't speak...

Ok keep

Edited May 4, 2014 by dontlop

[dinarbeleiver]

Lol dontlop thanks buddy - you present a good case for a strong dinar - something the Iraqi media has been saying for the past year- purshasing power!

[keepmwlknfny]

Lol dontlop thanks buddy - you present a good case for a strong dinar - something the Iraqi media has been saying for the past year- purshasing power!

You gonna answer my question?

[dinarbeleiver]

Sorry keepem not noticed your question - I'm working nights at the moment - give me a day or two and I will come back with a detailed answer

Not that it's really related to the thread but IMPORTS IMPORTS IMPORTSHere is a question for you DB....I'm gonna let you find the answer....What kind of currency (high or low valued) is advantageous for developing countries and economies such as Iraq?

from what I have been reading the media would have you thinking a low valued currency but it's a fallacy. I will explain in the next day or two

[dinarbeleiver]

It is true that a strong currency can have various advantages.

The price of imports falls. Therefore, living standards can increase as consumers and firms can benefit from lower prices of imported goods. Some firms who rely on imported raw materials, will see a fall in costs. Consumers who buy expensive imports will see improved living standards and greater purchasing power.

Incentives to Cut Costs. A strong currency makes exports less competitive. This creates an incentive for exporters to:

look for efficiency savings / increase productivity.

Diversify into less price sensitive exports. This is often exports with greater value added. This can lead to long term benefits for economy, and is arguably better than always trying to compete through relying on weak currency which may encourage less incentives to be efficient.

Can Help Reduce inflationary pressure. An appreciation in the currency can help prevent domestic inflation and prevent the economy overheating.

In many circumstances a strong currency is beneficial for an economy. An appreciation in currency usually reflects the fact the economy is becoming more competitive and productive. For example, in the post war period Japan and Germany both experienced a sustained appreciation in their currency. This was compatible with rising productivity, low unemployment and high economic growth. By contrast, the UK experienced a sustained depreciation in value. This was a reflection of the fact the UK was losing relative competitiveness.

[keepmwlknfny]

Sorry keepem not noticed your question - I'm working nights at the moment - give me a day or two and I will come back with a detailed answer from what I have been reading the media would have you thinking a low valued currency but it's a fallacy. I will explain in the next day or two

Lol no you wont....explain now....

[dinarbeleiver]

Lol no you wont....explain now....

give some time baby lol

In many circumstances a strong currency is beneficial for an economy. An appreciation in currency usually reflects the fact the economy is becoming more competitive and productive. For example, in the post war period Japan and Germany both experienced a sustained appreciation in their currency. This was compatible with rising productivity, low unemployment and high economic growth.

Sounds familiar anyone ? I R A Q

[keepmwlknfny]

give some time baby lol

In many circumstances a strong currency is beneficial for an economy. An appreciation in currency usually reflects the fact the economy is becoming more competitive and productive. For example, in the post war period Japan and Germany both experienced a sustained appreciation in their currency. This was compatible with rising productivity, low unemployment and high economic growth.

Sounds familiar anyone ? I R A Q

Lol...except Iraq is just the opposite right now of what 6 our just copying and pasting. So you don't really know, all you do is find something that looks right and copy and paste it lol

[dinarbeleiver]

Lol...except Iraq is just the opposite right now of what 6 our just copying and pasting. So you don't really know, all you do is find something that looks right and copy and paste it lol

things are changing in Iraq keepem they are moving to a market economy. The IQD will appreciate

Like I said keepem baby you have to give me some time - I will answer your question in my own words with references!

[AmericaInc]

RV'ing would buy them trillions of dollars. Why wouldn't they want trillions of dollars?

Wouldn't Maliki have wanted trillions of dollars if he could have simply said the word and made it so?

unless the shiite Iranians controlled him a prevented the RV

So, dinarbeliever, what conclusions will you draw if it doesn't RV? And how long are you willing to wait?

I'm fascinated by the psychology of true believers. It often doesn't end well when their theology no longer fits their life situation.

take a look at the bible thumpers... God in one hand a gun in the other...

whatsa matta you guys? 50 pages of Lopster rants and RV rants weren't enough for ya?

Ya hadda start another thread....

 

You guys are certifiable

[keepmwlknfny]

things are changing in Iraq keepem they are moving to a market economy. The IQD will appreciate

Like I said keepem baby you have to give me some time - I will answer your question in my own words with references!

OK again so you don't know. I'm glad your gonna take time to learn

[RVPleaseToday]

Dinarbeliever says he is willing to wait ten more years for his dinar to appreciate, and I agree with that. I believe it will slowly appreciate, barring a dictator or civil war, over the next 10 to 20 years and will return something on our money. Most here, from their posts, aren't thinking in those terms, though.

 

I am concerned, though, that Iraq is saying they will print even more IQD, which will further inflate the currency and hold down any rise in value.

 

It still remains that, unless Iraq gets it 's currency into the billions from the trillions they now have, any real appreciation is impossible. Kuwait's 6.5 billion is not realistic for Iraq, because Iraq is a much larger country than Kuwait, so they need more dinar. But, 80 billion dinar would be much more realistic for Iraq than 80 trillion.

[Markinsa]

Here's a question for you all... Why didn't the PTB just make the Dinar on a 1:1 basis with the Dollar???  Its not like their current currency was worth anything?  They could have set the exchange rate at whatever they wanted.  The old currency could have been exchanged at the current exchange rate for the Dollar and that would have reduced the amount of currency in circulation and that would have been that.  Its just a thought I had...

 

-

[RVPleaseToday]

The only PTB that has control over the dinar exchange rate is the CBI. I guess I don't understand your question.

[Markinsa]

The only PTB that has control over the dinar exchange rate is the CBI. I guess I don't understand your question.

 

Sorry for my laziness, I figured most people would know who I was talking about.  PTB = CPA = Coalition Provisional Authority = "Government" as defined on Page 8

 

When the CPA printed all of the NEW Dinar which replaced the Sadam Currency and the Swiss Dinar.  The CPA could have set the exchange rate at whatever they wanted.

 

-

[RVPleaseToday]

The CPA did not set the exchange rate between the dinar and the dollar. The only thing the CPA did was set the exchange rate between the old dinar and the new dinar, and the Swiss dinar and the new dinar. The exchange rate between the dollar and the new dinar was based on the existing market rate.

 

In October, 2003, the official Dinar value was 1 ID= US $0.00027. In 2005, August, the official value of the dinar was 1 ID to US $0.00068. On January 1, 2006, the values changed and become 1 ID = $0.00067.

 

Saddam had declared the Dinar worth $3 plus, but no country accepted that rate. The real market rate are those quoted above.

And, by the way, the CBI has posted new numbers and the exchange rate is...1166.

[Markinsa]

The CPA did not set the exchange rate between the dinar and the dollar. The only thing the CPA did was set the exchange rate between the old dinar and the new dinar, and the Swiss dinar and the new dinar. The exchange rate between the dollar and the new dinar was based on the existing market rate.

 

In October, 2003, the official Dinar value was 1 ID= US $0.00027. In 2005, August, the official value of the dinar was 1 ID to US $0.00068. On January 1, 2006, the values changed and become 1 ID = $0.00067.

 

Saddam had declared the Dinar worth $3 plus, but no country accepted that rate. The real market rate are those quoted above.

 

You are still not understanding what I am saying.  The CBI, CPA or whoever created the New Dinar, could have created the Dinar so it was on an equal basis with the Dollar.  They already were using the Dollar in the economy, why not create a currency that equated with the Dollar? All of the Old Dinar could have been exchanged with the New Dinar at the same exchange rate as to the Dollar.

-

[RVPleaseToday]

The CPA did not have that authority.

The exchange rates are based on real numbers...you can't just pick one out of thin air.

Saddam tried that, and his "value" was ignored.

[Markinsa]

The CPA did not have that authority.

The exchange rates are based on real numbers...you can't just pick one out of thin air.

 

The CPA was the "Government" at the time, they could do whatever they wanted.

 

-

[RVPleaseToday]

No, they could only do what they were given authority to do in the legislation that created them.

They could not pull an exchange rate out of thin air. That's not how it works.

[Markinsa]

No, they could only do what they were given authority to do in the legislation that created them.

They could not pull an exchange rate out of thin air. That's not how it works.

 

Who drafted the CBI Law?

 

-

[RVPleaseToday]

The CPA and Governing Council. Which has nothing to do with the market at the time.

 

Either currency floats, and the market determines its value.

 

Or, it is pegged, and the reserves determine its value.

 

No one, as Saddam found out, can pull an exchange rate from thin air. The CPA had no authority to make up an exchange rate. The CBI has no authority to make up an exchange rate.

[dontlop]

Dinarbeliever says he is willing to wait ten more years for his dinar to appreciate, and I agree with that. I believe it will slowly appreciate, barring a dictator or civil war, over the next 10 to 20 years and will return something on our money. Most here, from their posts, aren't thinking in those terms, though.

 

I am concerned, though, that Iraq is saying they will print even more IQD, which will further inflate the currency and hold down any rise in value.

 

It still remains that, unless Iraq gets it 's currency into the billions from the trillions they now have, any real appreciation is impossible. Kuwait's 6.5 billion is not realistic for Iraq, because Iraq is a much larger country than Kuwait, so they need more dinar. But, 80 billion dinar would be much more realistic for Iraq than 80 trillion.

380 billion is more realistic for iraq than 80 billion based on its population

[RVPleaseToday]

Regardless, 80 trillion is inflated. Too much currency to RV.

Edited May 4, 2014 by RVPleaseToday