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Luigi1

CBI Worth 3x More Than Was Previously Estimated.

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In another news article stated that Iraq ranks 5th in the world with the most gold reserves.

Iraq can back most of it's currency with gold before & after RV.

 

20 July 2017  Enorrste...

We have an actual CBI spokesman claiming that their reserves are 3x the amount of cash inncirculation.

Their cash in circulation is IQD 57 Trillion or about $50 Billion.

Sounds to me like they may have 100% coverage of their currency

Which is good by any standard but how he comes uo with 3x, I don't understand.

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6 minutes ago, sandfly said:

a year ago, they could cover it at 1.50 

That would make better sense today Canada is 75 cents to 1usd roughly. Mexico is still 10 pesos to 1usd.

Edited by Starrider
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14 minutes ago, sandfly said:

a year ago, they could cover it at 1.50 

 

 

In 2012, at the Int'l Banking Summit in Jackson Hole WY, Dr. Shabibi stated that the IQD RV could easy come out as high as 1 IQD to $5.

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they could but y, i would come out low and get all i could back in. then drop the rest that didn't turn it in

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8 minutes ago, sandfly said:

they could but y, i would come out low and get all i could back in. then drop the rest that didn't turn it in

Yep exactly like .10 cents

Edited by Starrider
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here's another article related to the above...

 

7-20-2017   Newshound Guru Kaperoni   ...Iraq does not know what there currency is worth technically because it is pegged and market forces have not taken over.  That being said...they will open to the market at the current rate and let it rise based on pressure created through the CBI capital account as market forces take over.  Do not expect it to RV or go up overnight...this will take time.  As well, the CBI can profit in commissions along the way.

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This may or may not be related but www.xe.com shows the IQD value in between the CBI sell/buy band and has been held there since about 7 pm last night (Wednesday). Typically, the CBI sell/buy band was held from Friday evening until Sunday evening (2 days). However, the past two weekends, the CBI sell/buy band was held for 3 days (starting Thursday evening). There are some mid week spikes to the CBI sell/buy of short duration (nominally a couple hours). The current trend, if it holds, would be a 4 day duration if it is not changed for one reason or another..............................

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here's another article related to the above....

 

7-19-2017   Newshound Guru Enorrste  Article:  "The Central Bank is a committee to open relations with foreign banks and participate in an international conference soon"   Quote:   "...the formation of the Iraqi Central Bank Committee to open relations with the Arab and foreign banks, while confirming that Iraq will attend a large Arab conference in New York City during the month of October next."   Wow!  Why in the world would Iraq leap into the world banking market with a conference in New York unless it fully intends to join the world economic community (as stated by the IMF last year)?  This is a huge commitment on the part of Iraq.  Think about it:  would they dare to enter into a world conference on banking without an open currency?  I seriously doubt it.  This may well be a hint to us that they are preparing to open up the currency to the world market PRIOR to October.  Time will tell...
 

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here's another article related to the above...

 

 

 

7-20-2017   Intel Guru Frank26   “Our Friend” in Iraq (Walkingstick) called me yesterday...Our Friend got information of what Iraq and the USA is about to do.   ...Iraq plans to sell American style BONDS this JULY.   Now that we have MOSUL...things are traveling at the speed of light!   ...they are going to sell BONDS … American Dollar Bonds...BUT...they will NOT be backed by the US Government.   That is an INTERNATIONAL ACT/MOVEMENT...that would be Article VIII...right?  They are going to sell these bonds this month in JULY...(1 BILLION AMERICAN DOLLARS WORTH) --- wow! Impressive...but the citizens are not going to buy these. (Pretty smart huh?!) The citizens bought the bonds offered in January.   Is this a joke? At 1184. No...it’s a PLAN! (Rather brilliant) – lots of DEALS made with AMERICA.  

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12 hours ago, Luigi1 said:

here's another article related to the above...

 

7-20-2017   Newshound Guru Kaperoni   ...Iraq does not know what there currency is worth technically because it is pegged and market forces have not taken over.  That being said...they will open to the market at the current rate and let it rise based on pressure created through the CBI capital account as market forces take over.  Do not expect it to RV or go up overnight...this will take time.  As well, the CBI can profit in commissions along the way.

The primary goal of central banks is to provide their countries' currencies with price stability by controlling inflation. 

Not just CBI, but ALL central banks of the world.

 

If CBI were to " open to the market at the current rate " and let it rise to 1:1 ( he said within 6 mths to a year), what happens to price stability then ~ which they have been working very hard to keep. (Re: their inflations rate).

 

Kap must understand that by letting the exchange rate to rise from 1184 to 1:1 it will create deflations, which in turn, will slow  down the process of developments.

 

My take is, if Iraq were to float their currency, it won't be from 1184.  But....it will be from a rate that would not cause major volatility to their price stability.

 

One more thing Kap, just out of curiousity, why do you think they will start from the current rate (which BTW is a program rate), when CBI themselves does not know the true value of their currency? - quote: " Iraq does not know what there currency is worth technically" ?

 

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9 hours ago, zul said:

The primary goal of central banks is to provide their countries' currencies with price stability by controlling inflation. 

Not just CBI, but ALL central banks of the world.

 

If CBI were to " open to the market at the current rate " and let it rise to 1:1 ( he said within 6 mths to a year), what happens to price stability then ~ which they have been working very hard to keep. (Re: their inflations rate).

 

Kap must understand that by letting the exchange rate to rise from 1184 to 1:1 it will create deflations, which in turn, will slow  down the process of developments.

 

My take is, if Iraq were to float their currency, it won't be from 1184.  But....it will be from a rate that would not cause major volatility to their price stability.

 

One more thing Kap, just out of curiousity, why do you think they will start from the current rate (which BTW is a program rate), when CBI themselves does not know the true value of their currency? - quote: " Iraq does not know what there currency is worth technically" ?

 

 

 

I'm glad your posting again ZUL, like your input.

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9 hours ago, zul said:

 when CBI themselves does not know the true value of their currency? - quote: " Iraq does not know what there currency is worth technically" ?

 

 

 

 

Oh they know the ballpark figure. This is why they keep stating things like "bring the dinar to its former glory".  All one has to do is look at it historically. Here's a quick brief history.

 

1931-1949: $4.86 (Dinar Introduced and unpegged from the British pound to the American Dollar)

1949-1971: $2.86 (Devalued in 1949)

1973-1982: $3.39 (Due to the inflation of the U.S. Dollar)

1982-1991: $3.22 (due to the war with Iran in 1982 and remained that level until the first Gulf war)

1991: First Gulf War it's been on a downward spiral reaching $3,000 dinar equal to $1 U.S. dollar in 1995 due to sanctions and aggressive publishing of new notes into circulation.

 

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22 hours ago, Synopsis said:

This may or may not be related but www.xe.com shows the IQD value in between the CBI sell/buy band and has been held there since about 7 pm last night (Wednesday). Typically, the CBI sell/buy band was held from Friday evening until Sunday evening (2 days). However, the past two weekends, the CBI sell/buy band was held for 3 days (starting Thursday evening). There are some mid week spikes to the CBI sell/buy of short duration (nominally a couple hours). The current trend, if it holds, would be a 4 day duration if it is not changed for one reason or another..............................

 

An update on www.xe.com. At about 6:30 pm CDT last night (Thursday), the IQD vs. USD rate started fluctuating nearly like over the past several months. What is interesting is the strength of the IQD hit 1154.71841 which is the strongest since April 23 at 7 pm CDT of 1,149.70292. Before that, January 18, 2016 at 7 pm CDT the IQD had the strongest IQD ever against the dollar in the last 10 years+ on www.xe.com of 1,086 IQD = 1 USD.

 

May be something. May be nothing. May be something to watch for external international indicators regarding the value of the IQD. May be not. :o   :o   :o

 

OH, YEAH BABY!!!!!!!!!!..................................

 

Go Moola Nova!

:pirateship:

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Dr. Shabibi's speech (Q&A) from 2011:

 


Question: Revaluation

With respect to the ongoing and need of stability in Iraq
and its exchange rate, we did not follow that there is a direct need for a potential revaluation of the currency to its due for domestic and foreign investment in Iraq, and in regard to that, how far you believe we are from a potential revaluation of the Iraqi currency.

Shabibi answer:

Well thank you very much for this question and the ... ahmmm ....... even if I know the answer I cannot tell you .. (laughter) the thing is ... you cannot have an economist saying without....the answer depends, so the question here is if revaluation is really going to depend on what extent we are going to continue controlling the inflation.. as you know, if you go to the Central Bank website ... the first job is maintaining price stability .

So there is a little bit of inflation in Iraq ... it use to be 2%... 3% ... now is about 5% .

But we are watching that very carefully ... If this inflation
continues we will have to revisit the question of exchange rate because revaluation depends on inflation ... of course .. the other factors that determine the movement in currencies are a lot … sometimes we look at trade, exports and imports, all the obligations, the balance of payments and all this things ...definitely no doubt you look at those ... but those are problems related to the development part of the economy.

The question of maintaining a price stability is really something ...you see the inflation and all this things..... cause nobody else in the economy is concern with inflation .... the government puts its budget... the government is the spender and the Central Bank its saver.... It's not very important for them to concentrate on inflation .... so actually the question here is we are going to track and follow the development in inflation first and of course other factors which I mentioned. Second then will determine our exchange rate movement. Thank you Governor.

This may be the same question, so I can understand if you can't answer.
My name is Bob Kelly, I am an Investor in Iraq, the Summit Hotel in the International Zone with the OPEC financing.

Question: Redenomination

I've heard a report in the last couple of days That Iraq is about to cut three zeros off the currency ...they call that re-denomination that may be the same question that you just received but I wonder if you had any information about that.

shabibi answer

Well, I mean .... I don't know whether if it is the same question, I think this cutting of three zeros... shouldn't be exaggerated ... that is a problem...the question is ... just re-denomination and .... people writing a lot of articles in the news papers... criticizing the Central Bank…., that is going to devalue the Iraqi dinar... that is going to depreciate ... all kinds of talks. This is a question, just actually, to facilitated payment... ease of counting and all this things.... when you see a lot of figures, you see trillions and huge figures.... if you want to be precise and you see twelve figures or fifteen figures or digits ... So I think we have a plan on that.

If you remember ... there was not a government decree to add this zeros. It happened because of the course of development of the economy at the beginning of the eighties.... Inflation was very high ... Inflation was rampant and therefore... small denoms start not to be use ...so government started to add the three zeros.... and of course conditions are different now .

Inflation is under control, exchange rate is manage by the Central Bank.... when you have the zeros you could not manage ... not because of fault of the government or the Central Bank (only) ... which I think there was but because there were a lot of exogenous (external) factors.

I'm not saying that we are champions now... there were a lot external factors which affected and a lot of people did not know what to do, so they started to add three zeros and all this things.

So now the situation is completely different from that time, you had a high inflation, you have now a low inflation, you had actually something which is a stable macroeconomics situation . At that time the situation was not stable . So the only way to combat all of this things at the time was to increase the denomination and put three zeros.


I think… to bring back the Iraqi dinar when actually the three zeros are remove .... of course, this will have to go hand in hand with the monitoring of the exchange rate and all this things, and we'll see ...

I think now, it is probably .... we are studying ...not studying, we have decided actually on that, when to implement that. Removal this three zeros is very soon, but of course this requires not only the Central Bank activity it requires a lot of propaganda, a lot of advertising campaign and all of this things, and you have to go probably a campaign... to educated a lot of people on this things…. and I think it needs a lot of help from the government, from many people from the government, specially the security forces, and we hope the security forces becomes less busy with the violence issue so that they can give more time for us.

 

script

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3 hours ago, Gypsygirl11 said:

I'm glad your posting again ZUL, like your input.

:; 

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2 hours ago, txwWrestling said:

Go RV! It looks like the ships are at sea.......hahahha

 

 

Okie is on final approach & given the go to land.

Bruce is celebrating.

MntGoat is grazing in pasture.

Frank is slumbering on blue sofa.

That could only mean one thing...it's a go.

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