New CBI Web site

[rockfl9]

looks legitimate But why a .COM ?

Interesting numbers: 

M1 =  71.1 Trillion dinar ( cash  plus demand accounts)

T-Bills  = 16.2 T IQD   

Total Debt  =  47.5 T IQD

SO if reserves are $51.5 based on M1 alone the exchange rate shuld be  .000724 ????

IF you add  the debt it falls to  .000432  ( This is where a FLOAT would start)

[rockfl9]

To clarify , the total debt  figure  is only the dinar based debt. The external debt is owed in dollars (kuwait , Paris club and GCC (Arab) , . About $40B .  But that is all GOI debt not CBI.  While that indirectly affects the dinar it is not a direct liability on the CBI.

[rockfl9]

Iraq External debt is $73.4B.  Owed in HARD currency!  More than current reserves. IF it was a business it would be considered bankrupt. BUT of course as acountry that is not  possible.  However this makes it difficult to borrow more .

 

[bostonangler]

I think they could erase their debt in one day if they brought Dinar out and floated it... The buying would drive up the value incredibly fast... JMHO

 

B/A

[rockfl9]

10 minutes ago, bostonangler said:

I think they could erase their debt in one day if they brought Dinar out and floated it... The buying would drive up the value incredibly fast... JMHO

 

B/A

B/A.  Read my post under " Iraq monetary policy"  .   How would the dinar  be worth more in a float???   It would be valued strictly by supply and demand.  People are paying the dealer premium these days because the supply is limited.  Some of that supply is recycled dinar , not new.  Now THINK what would happen if ALL 80 trillion dinar ( Yes, thats how much the CBI admits to)  were to become available on the world market.   If by chance the price would go from $860/mIL TO SAY  $880/mIL THE CBI would profit by  simply printing more!  Ultimately the  the dealers would go out of business. But that wont happen because the street price  in  Iraq is LESS THAN $860/Mil and that would drive the  entire market to that level.

[bostonangler]

1 minute ago, rockfl9 said:

How would the dinar  be worth more in a float???

 

I think there are hundreds of billions of dollars in the hands of investors who will not touch this as it stands... Get it on FOREX and let traders start playing it and the value will go up... It could be short lived, but I'd like to see it let go... I don't care if it is short lived, I will be exchanging very quickly if it moves up at all... You mentioned their debt is 73 billion... In today's world that is peanuts... Bitcoin lost 43 billion in value this weekend.. Companies are buying each other out for hundreds of billions everyday... Their debt is really not a big issue when you look at today's money... JMHO

 

B/A

[rockfl9]

B/A... You are wishing like a true dinarian.   Try to think like an Iraqi ..  A FLOAT is almost irreversible there is no going back to a fixed rate. You are correct in that the world moves trillions of dollars in value  every day across 100 countries .  But for Iraq to let the IQD float to half a cent (?) THEN CRASH would be a disaster for Iraq. The debt would still be there , only now more difficult to repay.

THE Bitcoin loss was a PAPER loss  ,  virtual  gain, virtual loss. That's all.   When a company is bought out it represents buildings , machinery REAL property value.

The FOREX market operates 24/7 and savvy traders swap billions in microseconds on the news  .  The opportunity for a profit would be GONE before got your pants on to get to a bank. Let alone get an email.