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Where's the money going to come from???/


rockfl9
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There ARE over 100 TRILLION IQD in their M2!!  An RV of 0nly 1 cent would require the CBI to come up with an extra  $940 BILLION in the reserves. It doesn't have it and never will. 

Some pumpers are saying that the auctions have been removing dinar from circulation , that is ridiculous . When the CBI buys  the dinar it goes right back in circulation as salaries.

I expect there will be a new rate in December .. The IQD will become MORE worthless.   

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1 hour ago, rockfl9 said:

There ARE over 100 TRILLION IQD in their M2!!  An RV of 0nly 1 cent would require the CBI to come up with an extra  $940 BILLION in the reserves. It doesn't have it and never will. 

Some pumpers are saying that the auctions have been removing dinar from circulation , that is ridiculous . When the CBI buys  the dinar it goes right back in circulation as salaries.

I expect there will be a new rate in December .. The IQD will become MORE worthless.   

Thats a lot of dinar!  So does that mean a $3.00 revalue would cost the CBI  $300 Trillion USDs

Iraq's proven oil reserves is about 145 billion barrels Even at $100 a barrel that would only be worth $14.5 trillion USDs

and Iraq only gets a portion of this.  Hmmmmm  Must be funny math.  

If I ask my accountant how much 2+2 equals  her answer is " How much do you want it to be?" HAHA

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On 6/17/2021 at 6:40 PM, SocalDinar said:

Thats a lot of dinar!  So does that mean a $3.00 revalue would cost the CBI  $300 Trillion USDs

Iraq's proven oil reserves is about 145 billion barrels Even at $100 a barrel that would only be worth $14.5 trillion USDs

and Iraq only gets a portion of this.  Hmmmmm  Must be funny math.  

If I ask my accountant how much 2+2 equals  her answer is " How much do you want it to be?" HAHA

You are right SD.  AND a RV of one CENT would need 1 Trillion USD.

The equation for exchange rate ( EC ) with the dollar is :                 

Value of the reserves in USD                                                           68 Billion USD   

___________________________      == IQD  EC   for the IQD today    ______________________ =   .000068                                 Total liability in local currency                                                        100   TRILLION IQD

No one can change that !  

Oil in the ground is an estimating tool.  It only has real value when shipped.

No one knows what oil will be worth in 2050 OR how much will be needed, BUT iraq wiil have 40 MILLION more people to feed.

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Dinarians have to take their RV colored glasses off and THINK.

Iraq NEEDS a foreign INvestment that will put a lot of Iraqis to work that will produce a shippable product to the world at a competitive price.

COMMON sense says it can't do that with an expensive currency.

Some countries purposely DEVALUE their currency to produce cheap labor .

Iraqis do not appear to have modern manual skills.  Everyone tries to get a government (desk) job .

Government jobs generally do not add to national income (GDP) .

Another problem is that Iraq does not have the kind of natural resources that produce shippable products. 

Most modern manufacturing requires electriciy and water and those are limited.

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2 hours ago, rockfl9 said:

You are right SD.  AND a RV of one CENT would need 1 Trillion USD.

The equation for exchange rate ( EC ) with the dollar is :                 

Value of the reserves in USD                                                           68 Billion USD   

___________________________      == IQD  EC   for the IQD today    ______________________ =   .000068                                 Total liability in local currency                                                        100   TRILLION IQD

No one can change that !  

Oil in the ground is an estimating tool.  It only has real value when shipped.

No one knows what oil will be worth in 2050 OR how much will be needed, BUT iraq wiil have 40 MILLION more people to feed.

 

got a link? 

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It is a simple ratio problem. Dollars per Dinar. It's just Math. 

Now the numbers I got from the 2018 annual report, which I just happen to have a copy. I could not find one for 2019 and 2020.

But note those numbers numbers show the exchange rate should have been .0068 way back then !!!!  But the CBI was exchanging at the .0086. rate.

The CBI website now shows the M2 at a little more than 124 Trillion Dinar. But they no longer show the amount of reserve s ???

So things could be worse .

Maybe the 2000 number that the Ecomist brought up is the real NEW rate.  .0050 !!!!!

 

 

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On 6/17/2021 at 6:40 PM, SocalDinar said:

If I ask my accountant how much 2+2 equals  her answer is " How much do you want it to be?" HAHA

I've said for years that math is not accounting and accounting is not math.  Don't confuse the two!

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Accounting involves ADDITION and SUBTRACTION two very basic MATH functions .  You must be confused !

 

Another thing  The CBI can't know How many dinar are in-country , out of country , lost , buried or destroyed.

So ALL dinar is considered In circulation no matter where it is. ALL 120 trillion of them .

When a country DEVALUES its currency it must release MORE to compensate for the necessary price increases. 

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STOP and have a THINK.

The CBI can't create DOLLARS or any other currency.

The FOREX doesn't create money it just MOVES it from SELLER to BUYER.

'BANKS don't BUY and HOLD FX they just broker it for a FX dealer (if they have one)

SOOOO where is the money going to come from????  The FX dealer will have to find a buyer willing to pay the price.  IT is called the GREATER FOOL theory. FX dealers are very smart people and they don't like to loose money.

By now it should have been clear that the GooRoos that predict rates and dates ARE ALL LIES always were.

The CBI is taking a lot of HEAT for devaluing the dinar .  WHY did they do that ??  Because they gambled a lot of their reserves during all those years propping up the value when they should have allowed a gradual inflation.

The small rise in the price of oil is not enough .  

They will see an increase in import costs due to world inflation this year which will easily eat up any gains in oil.

I expect another devaluation by December if they want to prevent a CBI default.

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  • 1 month later...

I am confused here.  What a 1:1 RV has something to do with iraqi foreign reserves ( USD )? Will all US dinar holders be able to exchange dinars for dollars in the country of iraq when this baby pops? I thought US dinar holders will only exchange dinars for dollars at BOA or other banks in the US?

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On 8/25/2021 at 7:27 AM, rvmydinar said:

I am confused here.  What a 1:1 RV has something to do with iraqi foreign reserves ( USD )? Will all US dinar holders be able to exchange dinars for dollars in the country of iraq when this baby pops? I thought US dinar holders will only exchange dinars for dollars at BOA or other banks in the US?

The IQD is a PEGGED currency, that is MOF/CBI policy. The rumor that the rate is being HELD low and the CBI could UP the rate 10000% overnight is GOORUU POO!

The rate is what it is due to the amount of reserves in the CBI, nothing more. The only way for the rate to simply double would be to double the amount of reserves. because of the number of dinar in circulation the CBI would need to ADD about 40 BILLION dollars to their reserves. Due to financial constraints that is impossible .

 

As far as being able to exchange dinar at a US bank that is also a RUMOR. Technically dinar is EXCLUSIVE to Iraq. NO dinar can legally leave or return to Iraq. It is Officially a NON-convertible item.. All banks know that, so if they were to take-in dinar they take the risk of a TOTAL LOSS.

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2 hours ago, rockfl9 said:

The IQD is a PEGGED currency, that is MOF/CBI policy. The rumor that the rate is being HELD low and the CBI could UP the rate 10000% overnight is GOORUU POO!

The rate is what it is due to the amount of reserves in the CBI, nothing more. The only way for the rate to simply double would be to double the amount of reserves. because of the number of dinar in circulation the CBI would need to ADD about 40 BILLION dollars to their reserves. Due to financial constraints that is impossible .

 

As far as being able to exchange dinar at a US bank that is also a RUMOR. Technically dinar is EXCLUSIVE to Iraq. NO dinar can legally leave or return to Iraq. It is Officially a NON-convertible item.. All banks know that, so if they were to take-in dinar they take the risk of a TOTAL LOSS.

There are some very intriguing things going on (out of the publics view) that can/will change the very things you mention that are preventing a high exchange rate right now. 

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15 hours ago, rockfl9 said:

As far as being able to exchange dinar at a US bank that is also a RUMOR. Technically dinar is EXCLUSIVE to Iraq. NO dinar can legally leave or return to Iraq. It is Officially a NON-convertible item.. All banks know that, so if they were to take-in dinar they take the risk of a TOTAL LOSS.

What if the iqd become internationally recognized currency one day, can dinar holders exchange dinar for dollars at any US bank?

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On 8/28/2021 at 5:53 AM, rvmydinar said:

What if the iqd become internationally recognized currency one day, can dinar holders exchange dinar for dollars at any US bank?

????  WHY isn't the IQD "international" today..  In fact, NO major bank will buy or sell it !!   Iraq does not allow citizens to take more than 1000 in or out of the country. Iraq specifically does not want IQD out of the country . Iraqi's must pay for all imports in dollars euros etc.

The only reason to have IQD today is if you were planning a trip to Iraq, but they would prefer you gave dollars.

NO US bank is obligated to do FX . It is done as a customer service and  they dont profit from it.  Generally you will need to be a customer. Smaller banks dont do it.   

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On 8/27/2021 at 4:35 PM, Longtimelurker said:

There are some very intriguing things going on (out of the publics view) that can/will change the very things you mention that are preventing a high exchange rate right now. 

The Dinar RV has been a classic example of intrigue since day one . If you think the dinar will FLOAT , it is possible. But that means the CBI has thrown in the towel and no longer controls the  rate.  You dont want that to happen. When a currency switches to a float ( like Egypt ) it looses value.

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19 minutes ago, rockfl9 said:

The Dinar RV has been a classic example of intrigue since day one . If you think the dinar will FLOAT , it is possible. But that means the CBI has thrown in the towel and no longer controls the  rate.  You dont want that to happen. When a currency switches to a float ( like Egypt ) it looses value.

I hope it floats. I believe the demand will be high enough to make it increase in value as neighboring countries will need their currency when Iraq becomes the financial and logistics hub of the Middle East.

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Rvmydinar : Longtimelurker is WRONG  !  The Treasury and FED ONLY deal in dollars.  There is NO market for IQD in the US at any exchange rate except for those individuals that BELIEVE in a potential  RV.  WHY would they give up USD just to hold dinar??? That's stoopid !

P.S. OIL is bought in ALL currencies , not just dollars. The bidding is formally one in dollars as a convenience.  For example, a ECC country will bid in dollars BUT it will settle in Euros ..

If a US bank were to EVER take in dinar . It would be because somewhere there IS an ORDER to buy it. Once that order is filled the bank will WAIT  for another order. THERE will not be a massive exchange process , Ie 800#s , and special exchange offices. 

But IMO that will never happen.

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6 minutes ago, Longtimelurker said:

I hope it floats. I believe the demand will be high enough to make it increase in value as neighboring countries will need their currency when Iraq becomes the financial and logistics hub of the Middle East.

YOU really need to take a course in International Banking.

When Egypt switched to a float the value went DOWN 11% overnight, It was expected to be worse.

A country would only WANT IQD IF it wanted to BUY something made in Iraq. 

Iraq desperately NEEDS to produce something to EXPORT besides OIL. Especially something that will use a lot of local labor.  This is the private  market they keep talking about .  Getting something started and training enough people will take years,

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2 hours ago, rockfl9 said:

YOU really need to take a course in International Banking.

When Egypt switched to a float the value went DOWN 11% overnight, It was expected to be worse.

A country would only WANT IQD IF it wanted to BUY something made in Iraq. 

Iraq desperately NEEDS to produce something to EXPORT besides OIL. Especially something that will use a lot of local labor.  This is the private  market they keep talking about .  Getting something started and training enough people will take years,

"YOU really need to take a course in International Banking."

 

Please explain where I'm off. Thanks

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7 hours ago, rockfl9 said:

Rvmydinar : Longtimelurker is WRONG  !  The Treasury and FED ONLY deal in dollars.  There is NO market for IQD in the US at any exchange rate except for those individuals that BELIEVE in a potential  RV.  WHY would they give up USD just to hold dinar??? That's stoopid !

P.S. OIL is bought in ALL currencies , not just dollars. The bidding is formally one in dollars as a convenience.  For example, a ECC country will bid in dollars BUT it will settle in Euros ..

If a US bank were to EVER take in dinar . It would be because somewhere there IS an ORDER to buy it. Once that order is filled the bank will WAIT  for another order. THERE will not be a massive exchange process , Ie 800#s , and special exchange offices. 

But IMO that will never happen.

Oil was primarily purchased with USD for many many years, just recently countries started getting away from the petro dollar.. not sure where you get your info..Of course there's not a market for IQD in the U.S, it's hasnt been internationally accepted for 30 years, but once it is internationally accepted and we trade in the IQD it will go to our reserves.. no need to respond, arguing online is silly

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10 hours ago, Longtimelurker said:

but once it is internationally accepted and we trade in the IQD it will go to our reserves.

" we trade in the IQD, it will go to our reserves ", why would the US foreign reserves want to accept and keep the worthless currency ( with 3 zeros ) after we exchange dinar for dollars one day once it is internationally recognized currency? Unless the US foreign reserves want to exchange dinar ( with 3 zeros ) for a new lower denoms that has a value/ new rate? As we know after the new lower denoms comes out one day, the dinar ( with 3 zeros ) will be worthless/ no value, right folks? 

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2 minutes ago, rvmydinar said:

" we trade in the IQD, it will go to our reserves ", why would the US foreign reserves want to accept and keep the worthless currency ( with 3 zeros ) after we exchange dinar for dollars one day once it is internationally recognized currency? Unless the US foreign reserves want to exchange dinar ( with 3 zeros ) for a new lower denoms that has a value/ new rate? As we know after the new lower denoms comes out one day, the dinar ( with 3 zeros ) will be worthless/ no value, right folks? 

It won't be worthless when we exchange it. 

Edited by Longtimelurker
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3 minutes ago, Longtimelurker said:

It won't be worthless when we exchange it. 

Did you mean that the dinar ( with 3 zeros ) will coexist together with a new lower denoms for a limited amount of time? What about the rate? Will the dinar ( with 3 zeros  note ) have the same rate with a new lower denoms note once it will become internationally recognized currency one day?

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