Guest views are now limited to 12 pages. If you get an "Error" message, just sign in! If you need to create an account, click here.

Jump to content
  • CRYPTO REWARDS!

    Full endorsement on this opportunity - but it's limited, so get in while you can!

Pegged exchange rate


dontlop
 Share

Recommended Posts

I think the iraqi dinar is a pegged currency and its pegged to the dollar

But what exactly does that mean?

The dinar has always been a local currency and not internationally exchanged

It started out pegged to the English pound I believe and then they switched the peg to the dollar

To me all that means is the exchange rate has to have a valuation to it

The dinar is not pegged to the reserves or the amount of reserves

The reserves are for squaring away external debts since the dinar is just a local currency they can't pay external debts with it , they need a hard currency to do that , a reserve currency like the dollar or euro or English pound or Japanese yen

Iraq just happens to have access to lots of dollars since oil is sold in dollars so they use mostly dollars for importing and paying external debts

I don't think they are committed to any exchange rate based on the amount of reserves they have only on their ability to control their imports verses thier national income

The currenct account is listed on the cbi web site it's the amount left over or the debt iraq has after the trade balance is balanced

If iraq exported 100 million dollars worth of oil and they imported 50 million in imports they subtract the imports from the exports and have a balance of 50 million dollars left over , that is called the "current account "

If they imported 100 million and only exported 50 million in oil they subtract it and the current account woukd be minus 50 million

I have never seen a negative current account figure for iraq on the cbi web site

Any way

The exchange rate is not pegged to the reserves or what type of reserves or the amount of reserves

The exchange rate is only pegged to the value of one dollar

Right now the exchange rate is 1166

That doesn't make for a good exchange rate for importing but is good for exporting

Iraq always had a high valued dinar because they import most of their goods

If iraq builds up their private sector and the oil prices go back up iraq will definatly have something to work with

They need to get security in order for investors to think their investments are protected

They got slot of work ahead of them so I personally don't see a rv coming in the near future

I'm tired of talking about it, I'm worn out

I just wanted to clear that up about what exactly is pegged in the currenct monetary policy of iraq

It's been pegged for about 70 years now so it could be that even if they do rv , being its just a local currency , they may say you can spend it here in iraq but we don't have to give anyone dollars or euros for them so looking at the exported products from iraq wouldn't be a bad idea just incase you need to buy something and resell it or import it

And figure out which banks you would need to deal with

Remember citi world link has been dealing in iraqi dinar since 2006

I told ya I was worn out on this

  • Upvote 7
Link to comment
Share on other sites

You can't really just say "I thin" the Dinar is pegged to the Dollar. Why do you think that? The fact that the CBI has auctions proves it's not pegged to the Dollar. The value is based on the auction results and not just the natural way currencies float against one another. Before the Dinar is "pegged" to the dollar Iraq must get out of sanctions, join the IMF, and at that point it could be pegged to the Dollar.

Link to comment
Share on other sites

The official exchange rate does not change ever , it's pegged

The market rate is not the official exchange rate

Their are commisions all the way in and out of selling dinar and buying dinar from the open market in iraq

That's where the dinar loses value

Thru the currency dealers

The cbi charges 13 dinar per dollar

The banks buy it and don't sell it to dealers for free

The dealers don't sell it for free

There's a mark up

But the official exchange rate is always 1166

So in the end the dinar is selling for 1220 1200 what ever they get

Iraq has been a member of the imf for 70 years it doesn't need to join the imf it is a member and pays its quotas

Edited by dontlop
  • Upvote 4
  • Downvote 1
Link to comment
Share on other sites

The official exchange rate does not change ever , it's pegged

The market rate is not the official exchange rate

Their are commisions all the way in and out of selling dinar and buying dinar from the open market in iraq

That's where the dinar loses value

Thru the currency dealers

The cbi charges 13 dinar per dollar

The banks buy it and don't sell it to dealers for free

The dealers don't sell it for free

There's a mark up

But the official exchange rate is always 1166

So in the end the dinar is selling for 1220 1200 what ever they get

Iraq has been a member of the imf for 70 years it doesn't need to join the imf it is a member and pays its quotas

The only rate to go off of is the spot rate. If you walk into any currency exchange or bank there's no such thing as an official retail rate or a dealer rate. There is the spot rate and from there any dealer can choose to mark up dinar any amount they want. That's why you see say DinarTrade selling at $980 and Sterling selling at $1050, thats a $70 difference.

 

Same way if you walk into say a Travelex your going to pay about .20 cent over for a euro, you go to your bank probably 0.08 cents over. Those rates mean nothing they are simply a markup, they don't really prove or show anything except thats what a particular company has decided they need to markup the currency for to cover their costs and make a profit. That proves nothing about the strength of the country or currency.

The spot rate or market rate is the official rate.

Edited by rulesforrebels
  • Upvote 2
  • Downvote 1
Link to comment
Share on other sites

Ok from now on the central banks official exchange rate is merely a decoration

Just for you

I tried to explain

But you prefer fantasy

The pegged exchange rate is fake on the cbi web site

It's just an ornament

A silly decoration

Because iraq can't be pegged to the dollar cause their under sanctions right

And they aren't members of the imf

Dreams in ga ga land to the rescue

  • Upvote 3
  • Downvote 3
Link to comment
Share on other sites

google translation

Dollar exchange rates due to reduce hard currency raised by the Central Bank
BAGHDAD - Iraq Press - February 2: After the rise of the dollar exchange rate against the Iraqi dinar attributed the Economic Committee in the House of Representatives on Monday, the high exchange rate in local markets to Jmmlh of decisions taken by the Central Bank during the past few days to support economic development.
To this end, a banking expert said "dollar exchange rates will return to normal soon," noting that "the height of the dollar exchange rates against the Iraqi dinar is due to busily banking offices to buy the dollar, and reduce the amount of hard currency sold by the Central Bank in accordance with the recommendations of the the general budget. " Admiral ended


bing translation

Dollar prices due to reduced hard currency by the Central Bank

Baghdad-Iraq press – 2 February: after a rise in the dollar against the Iraqi dinar attributed the Parliament's Economic Committee, on Monday, rising exchange rate in local markets to gmmlh of decisions taken by the Central Bank over the past few days to support economic development.

A banking expert, said that "the dollar exchange rate will return to normal soon," Noting that "the rise in the exchange rate of the dollar against the Iraqi dinar is busily exchange offices to buy the dollar and reduce the amount of hard currency sold by the Central Bank in accordance with the recommendations of the general budget". Finished a. h

http://www.iraqpress...-مرده-خفض-العم/

2
Quote
MultiQuote

Read more: http://dinarvets.com/forums/index.php?/topic/196112-parliament-holds-budget-responsibility-rising-dollar-and-banker-errors-confirms-dollar-exchange-rate-stood-at-1260-dinars/#ixzz3QcKCAlPq

Link to comment
Share on other sites

Number of banks 22

Auction price selling dinar / US$ 1166

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 91,724,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 91,724,000

Total offers for selling (US$)

Today's currency auction 1166.

Same exact price for the last three years

With the value of the dollar changing over the past few years due to inflation how could the exchange rate not change from 1166 if it's not pegged

The dollar floats but the dinar peg remains the same every day at the cbi auction 1166

Being pegged if the dollar goes to a 10 cent value the dinar remains at 1166 for that 10 cent dollar

It's some screwed up stuff

I think every currency should stand on its own merit

  • Upvote 3
Link to comment
Share on other sites

Long-Presse correspondents in Baghdad and the provinces noted that the price of the dollar against the Iraqi dinar rose again on Monday, from 1250 to 1260 Iraqi dinars

Read more: http://dinarvets.com/forums/index.php?/topic/196112-parliament-holds-budget-responsibility-rising-dollar-and-banker-errors-confirms-dollar-exchange-rate-stood-at-1260-dinars/#ixzz3Qdximcp2

So the market rate is changing which it is subject to change but it's the cbi job to stablize the rate within 2% of the official exchange rate

They usually do this by buying up the dinar which creates more demand in the public for something that's disappearing

If they want the dinar to lose value they don't buy as much dinar leaving it plentiful in the public

  • Upvote 1
Link to comment
Share on other sites

If the dinar loses market value say 10% and they maintain the same reserves they can print up more 10% more dinar and change the official exchange rate to match

Printing up more dinar creates the liquidity they are looking for

Why else would they cap the auctions ?

It could be they just want people to use the banks which frees up a lot of dinar because they are just using paper trails for transactions from one account to another therefore they don't need all those dinars circulating in people's hands outside the bank

Issuing the credit cards for citizens that are backed in dollars will enable Iraqis the opertunity to buy from merchants that otherwise deal in dollars because they import their merchandise using dollars

So this may be a short term transaction until credit cards are issued and things fall into place

So it's my view that even though the market rate has fallen the cbi will not adjust the official exchange rate

Edited by dontlop
  • Upvote 1
Link to comment
Share on other sites

Putting out my thoughts isn't talking to myself

They are published in an open forum for people to read

You should try it and see how many people read it or have you tried that already and know that answer

1638 views on this one so far not to mention the rest of my topics I've posted over the years

If no one was reading it I would stop

Good luck to ya on yours if you try it

Controversial or not people are taking what they want and possibly advancing their own research

I could be a cheer leader

But that's not adding much of anything

Edited by dontlop
  • Upvote 2
  • Downvote 1
Link to comment
Share on other sites

Here to disrupt I see

Out of all the great exciting news you choose to come to this topic and do this

I guess it doesn't suprise me

You must lead some life

Go lead

One more and I hit the report button on all three

  • Upvote 2
  • Downvote 1
Link to comment
Share on other sites

We don't know how many dollars will be deposited in the cbi since the new policy's

They will be getting the equivalent of dinar for their foriegn currency deposits

Sounds like de-dollarization coming to Iraq

They deposit their dollars and when they by externally those buys will be met with dollars from the cbi

This could be a major collection of dollars from the streets

Legal tender laws could mean only dinars will be used in iraqi markets

They seem to be sliding away from multiple currencys in iraq and are headed to dinar market economy

I always thought the streets were the secret reserves waiting to be called in and added to the reserves

Could be a hundred billion dollars headed to the cbi

Could be 500 billion if maliki and barzani and talibani and mutlag and the rest all turn over their foriegn currency for dinar

We will all be watching this unfold

They could end up with a 3 or 4 dollar dinar after they delete 3 zeros

Or they could end up with a penny as it stands

We do not know I'm including you in the we part

The first step was when the govt said all govt payrolls and contracts will be paid in dinar

It looks like they are adding to that with the latest developments

Legal Tender Act passed, Feb. 25, 1862

On this day in 1862, Congress passed the Legal Tender Act to finance the Civil War. It allowed the federal government for the first time to print paper money, called greenbacks, that was not backed by an equal amount of gold or silver.

As the government’s hard currency reserves dwindled, the legislation created a new path for it to pay its bills. By obliging creditors to accept the greenbacks at face value, the legislation also energized the economy even as Congress kept inflationary pressures in check by enacting an income tax and steep excise taxes.

The act legitimized paper currency in “payment of all taxes, internal duties, excises, debts, and demands of every kind due to the United States, except duties on imports, and of all claims and demands … and [it] shall also be lawful money and legal tender in payment of all debts, public and private, within the United States.

By the time the war ended in 1865, the government had printed nearly $500 million in greenbacks — the equivalent of more than $7 billion today.

In 1870, the U.S. Supreme Court, in a 4-3 ruling, declared paper currency to be unconstitutional. The majority opinion, written by Salmon Chase, the chief justice, found that Congress had violated Fifth Amendment guarantees against deprivation of property without due process of law. As the wartime treasury secretary under President Abraham Lincoln, Chase had played a key role in authorizing greenbacks.

On the same day that the court ruled, President Ulysses S. Grant nominated two candidates to fill judicial vacancies. They were confirmed by the Senate. At its next session, the tribunal agreed to revisit the greenback issue. It reversed its earlier decision, in a 5-4 ruling that held the Legal Tender Act of 1862 to be a justifiable use of federal power during a national emergency

Read more: http://www.politico....l#ixzz3QpNQVfXR

It looks like the usa did it when they were in trouble and at war to finance their way out of a mess

Printed money up , just like that

Edited by dontlop, Today, 08:02 PM.

Posted Today, 09:16 PM

The greenback sure wasn't a reserve currency in 1862 yet it wasn't backed equally to the value of the greenback

Imagine that

The green back was good for all transactions in the USA and if you were importing you coukdnt use the greenback to pay your duties on " imports "

So they had to use gold or silver to import and gold or silver to pay the duties on imports

So will iraq use dollars for imports and pay tariffs on imports in dollars also like the usa did with imports using gold or silver as the hard currency for trade and duties

Or euros of course what ever hard currency they choose for importing

Chase

  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

Chase had played a key role in authorizing greenbacks.

Chase was the "Chief Justice of the Supreme Court "when greenbacks were issued

As the government’s hard currency reserves dwindled, the legislation created a new path for it to pay its bills. By "obliging creditors "to accept the greenbacks at face value

that was not backed by an equal amount of gold or silver.

The usa ended up the richest country's in the world

  • Upvote 1
  • Downvote 1
Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.