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rockfl9

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

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2 hours ago, rockfl9 said:

Hmmmmm,   I sense some doubt !

Floridian,  IF you want to understand  lifting/removing the zeros just look at Turkey or Venezuela .. It is simple take a 25000 note and replace it with ONE new 25 note with the same purchasing power (value).  Been done dozens of times before.  THe thing the CBI is proposing is NOT to do it all at one time  , THis is a new approach.  For merchants it would mean mixing the notes in the cash drawer. For banks an extra sorting operation.  But no one gains or looses.  Chalk it up to experience.

LOL"doubt"...Investments/Speculation are not a given. So unless your a novice you would understand this. Your responses as is the case with most LOPsters is that of regret & hostility towards investing & life in general....sad really. Now that's a  fascinating topic for a make believe book you can/cannot write - LOL.

Lopsters the gift that keeps on a giving - 24/7   365

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I think dinarins expect that the day will come when the CBI simply pulls the trigger and sets a new rate and that will some how induce banks around the world to begin buying unlimited amounts of IQD ... Ridiculous !!!!  Any good book on international finance will tell you that outside of the native country a currency is priced on a supply/demand basis. The demand is based on what the currency will provide in goods and services. Other then oil which is traded in USD Iraq has little else to offer. 

A bank will take in a foreign currency ONLY when it has a customer order to buy it. A bank cannot speculate by purchasing a currency , it is too risky. 

Iraq  will have to LOP someday , but this is not the year... The CBI's  priority right now is to get the reserves up to the level it needs to be. Currently they are about $10B  shy.   That is the result of their efforts to prop up the exchange rate. 

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There was a documentary on Iraq on the NGEO  Channel last night (very late) ...Mosel and Faluga are ghost towns the few people there are squaters in the few liveable structures .  The reporters were heavily censured on what they could show or say.   In the smaller towns they were still ferreting out  out ISIS posing as civilians .  Bagdad and  arbil had  a lot of unfinished construction.  Projects that have run out of funding.  Obviously NOT a rich country.

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Well you have good reasoning.  I guess we will all just wait and see what happens.  Other news and articles say otherwise. 

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14 hours ago, cranman said:

Well you have good reasoning.  I guess we will all just wait and see what happens.  Other news and articles say otherwise. 

I dont count any of the rumors and  the translations of some articles are suspect..  Some of the articles are quoted from pumper sites as real news but it is not.

I do believe reports by the CBI that the current exchange rate is correct and they are planning to keep it stable .  That means to me that they do not have intentions to change it.  Although things can happen that are out of their control.

The current M2  of I raq is 88 TRILLION dinar an INCREASE of  4T in the last 5 years , The reserves however have decreased fro 69B to 61B in the same time frame.  WHY , Because the CBI/MOF have been using the reserves to keep the rate stable. as well as printing more unsupported currency.  The  IMF auditors should blow the whistle  on this but they must  be careful to avoid a breach of confidence in the CBI.

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WELL , I think the GOAT has been reading stuff from the tank!    Now it (or she) says that the banks will have a big customer to buy up all the dinar at the big EVENT ! The UST .  She probably  ( Being an Austrian (?)) doesnt know  the UST is not allowed to buy foreign currency as an investment and that the UST doesnt  have any spare dollars to invest anyway .. The UST is heavily in debt ...It would have to borrow more.  The money will have to come from private investors and i dont think there are many of them ..

are 

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THIS is a serious  question for any  "investment" . To become a profit there MUST be a buyer willing to pay more for the item. Banks dont BUY foreign currencies they are only an agent for the buyer. Typically the countries central bank is the buyer of last resort, BUT we know the CBI cannot repurchase IQD at even the quoted rate today.  It would be a giant leap of faith for someone to buy IQD at 1/10 of a cent expecting a profit.

 

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