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Parliamentary Finance intends to reintroduce the coin ... Another proposal to delete the zeros


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On 12/9/2019 at 3:15 PM, Is this ever gonna happen said:

I really think its time, parliament said in 2014 the RV was being postponed 5 years, not that that means anything, but i'm getting a good vibe, just bought another $50,000 worth, a small amount of money to throw away that might do something, been in this since I was in Iraq in 2004... still waiting.

why not the longer it takes the more we make...i keep buying shares, with another 17,000,000 added to the portfolio...shares or cash you have to be in the game!

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First, in regards to the psychological factor of the Dinar we take a look at the psychological factor of the dollar through a key indicator that most everyone has probably heard of:

 

 

Quote

 

Consumer confidence index (CCI)

This consumer confidence indicator provides an indication of future developments of households’ consumption and saving, based upon answers regarding their expected financial situation, their sentiment about the general economic situation, unemployment and capability of savings. An indicator above 100 signals a boost in the consumers’ confidence towards the future economic situation, as a consequence of which they are less prone to save, and more inclined to spend money on major purchases in the next 12 months. Values below 100 indicate a pessimistic attitude towards future developments in the economy, possibly resulting in a tendency to save more and consume less.

 

 

 

 

This is basically the "how people feel" index in regards to their expectational use of their currency as it can be seen in the definition above. Every country monitors how their people "feel" about their current and future purchasing power. This is its psychological factor. If Iraqis don't feel good about the Dinar they won't choose to use it. They will seek out other currencies, e.g. the USD, to complete their purchases. Right now the CCI for Iraq is really low.

 

Second, the individual that posted the chart that shows the IQD in the 80's to be in in three-dollar range. The chart fails to denote that at the time experts in the field believed the Dinar was overvalued and it should have been half that or approximately $1.62. Remember it was Saddam who set the exchange rate and who knows what methodology he used. For reference sake, in the 80's crude oil per barrel had a low of $12.51 in 1986 and a high of $31.77 in 1981. To be far though the purchasing power of $100 in 1986 is equivalent to roughly $237.15 today. Today's dollar is only worth 42% of what it was worth in 1986.

 

Lastly, from research compiled through various sources Iraq's gold reserves have not changed in the last three years and have remained at 96.3 tonnes. Iraq has roughly 79,567 billion in Foreign exchange reserves (as of 5/2020) which is the lowest of 2020. This also down from a high of 94,613 billion in 5/2014. I have actually seen these reserves being reported as low as 10 billion. So it might depend on where you get your information from as to the correct figure on the reserves. The current price of gold per ounce is 1,882.26 (H 1883.22 L 1,873.21).  A metric ton (tonne) has 35,273.962 ounces. So the total amount of reserves that Iraq has on hand is 7.96 billion. The amount of IQD in the world has been stated as between 40 to 45 trillion. If we divide the total amount of reserves by the average total amount of IQD in the world, Iraq could only support a maximum exchange rate of $1.87. This is just a rough estimate and does not include different currency types. Also this is the maximum value based off of figures found through research of third-party sources are not exact. For example the gold per ounce could drop 36 dollars tomorrow and it would change the maximum exchange rate. Also no one in their right mind would max the RV based on the maximum exchange rate as there would be no foreign exchange reserves left.

 

Therefore it can be shown Iraq can afford an exchange rate up to but no more than $1.87, as a rough estimate based off of third-party sources and not an rv value, and yes, consumer confidence will play a key role in the revaluation and the direction it goes once an RV happens. Consumer confidence is just another way of saying the psychological factors the people "feel" about their expectational use (purchasing power, savings borrowing etc.) of their currency.   

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On 10/7/2020 at 1:27 AM, Theseus said:

First, in regards to the psychological factor of the Dinar we take a look at the psychological factor of the dollar through a key indicator that most everyone has probably heard of:

 

 

 

 

 

This is basically the "how people feel" index in regards to their expectational use of their currency as it can be seen in the definition above. Every country monitors how their people "feel" about their current and future purchasing power. This is its psychological factor. If Iraqis don't feel good about the Dinar they won't choose to use it. They will seek out other currencies, e.g. the USD, to complete their purchases. Right now the CCI for Iraq is really low.

 

Second, the individual that posted the chart that shows the IQD in the 80's to be in in three-dollar range. The chart fails to denote that at the time experts in the field believed the Dinar was overvalued and it should have been half that or approximately $1.62. Remember it was Saddam who set the exchange rate and who knows what methodology he used. For reference sake, in the 80's crude oil per barrel had a low of $12.51 in 1986 and a high of $31.77 in 1981. To be far though the purchasing power of $100 in 1986 is equivalent to roughly $237.15 today. Today's dollar is only worth 42% of what it was worth in 1986.

 

Lastly, from research compiled through various sources Iraq's gold reserves have not changed in the last three years and have remained at 96.3 tonnes. Iraq has roughly 79,567 billion in Foreign exchange reserves (as of 5/2020) which is the lowest of 2020. This also down from a high of 94,613 billion in 5/2014. I have actually seen these reserves being reported as low as 10 billion. So it might depend on where you get your information from as to the correct figure on the reserves. The current price of gold per ounce is 1,882.26 (H 1883.22 L 1,873.21).  A metric ton (tonne) has 35,273.962 ounces. So the total amount of reserves that Iraq has on hand is 7.96 billion. The amount of IQD in the world has been stated as between 40 to 45 trillion. If we divide the total amount of reserves by the average total amount of IQD in the world, Iraq could only support a maximum exchange rate of $1.87. This is just a rough estimate and does not include different currency types. Also this is the maximum value based off of figures found through research of third-party sources are not exact. For example the gold per ounce could drop 36 dollars tomorrow and it would change the maximum exchange rate. Also no one in their right mind would max the RV based on the maximum exchange rate as there would be no foreign exchange reserves left.

 

Therefore it can be shown Iraq can afford an exchange rate up to but no more than $1.87, as a rough estimate based off of third-party sources and not an rv value, and yes, consumer confidence will play a key role in the revaluation and the direction it goes once an RV happens. Consumer confidence is just another way of saying the psychological factors the people "feel" about their expectational use (purchasing power, savings borrowing etc.) of their currency.   

Theseus,

 

Thank you for the info👍

 

 

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42 minutes ago, Wiljor said:

“the value of the new Iraqi dinar converges with the value of the dollar”

 

Music to my ears 🙌

Wiljor, Totally agree my friend....Keep that good music playing til we reach the RV / RI destination.....👍👍🎶🎵🎼🎧🙏🙏

 

GO RV & RI

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Hands down one of the Best articles ever on the elusive RV to date! If they are talking about it there then you know the plan has to be real! That article said everything we needed to hear and believe the RV plan to be!!

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2 hours ago, tigergorzow said:

Wiljor, Totally agree my friend....Keep that good music playing til we reach the RV / RI destination.....👍👍🎶🎵🎼🎧🙏🙏

 

GO RV & RI

Absolutely agree tigergorzow, keeping the faith brother, and getting ready to turn up the music for the happy dance 🙌

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Expert: Canceling 3 zeros from the currency will lead to the collapse of the process ... Iraq needs a "rescue plan ''

Feb 5, 2021

12_MjAyMS0wMi0wNSAwMjo0MjowMA==.jpg?u=1612530616

 

Baghdad Today - Special


 Economic expert Rasim al-Akidi warned against the step of dropping zeros from the country's currency, indicating that this step may lead to the collapse of the Iraqi dinar.


Al-Aqidi said in an interview with (Baghdad Today), that "dropping zeros from the Iraqi currency is not feasible at the present time, especially since the government and its financial instruments are not in control of the monetary mass that the country possesses."


He added that "the decision to drop zeros from the currency must be preceded by a series of important matters, including state control over the largest monetary mass, so as not to accumulate hard currencies at the central bank."


He pointed out that "raising the zeros without controlling the greater proportion of the monetary mass may lead to the collapse of the dinar, because the state does not control cash for the clubs of neighboring countries, companies and banks, and whoever controls the economy may resort to a game that leads to its collapse, which leads to a double loss of its value against the dollar."


The economic expert, Rasim al-Aqidi, identified earlier, about 4 negatives that would emerge at once if the Iraqi government went to float the Iraqi dinar.


Al-Aqidi said in an interview with (Baghdad Today), "The floating of the dollar, or what is known as the liberalization of the exchange rate, takes place through two methods, the first is pure or free, and the second is the controlled or controlled method, and in both cases the price of the dollar will rise against the Iraqi dinar and will lead to the withdrawal of a large amount of the monetary mass in the markets. ".


He added, "Withdrawing a large monetary block offset by 4 drawbacks at the same time will arise and the affected will be large segments, including the increase in prices in the markets in addition to the factories’ reluctance to produce because the value of profits will decrease in front of costs in addition to the absorption of per capita income and the increase in rental prices, so the interest will be limited compared to other damages. ".


Al-Aqidi pointed out that "Iraq needs an economic rescue plan that starts from maximizing non-oil revenues, which are many and keeping the influential authorities away from them because a large part of the financial resources does not go to the state treasury, and this is part of the causes of the current financial crisis in the country."

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Deleting zeros from the Iraqi currency ... An imminent economic collapse

Feb 5, 2021

The-Iraqi-dinar-scaled.jpg

 

The financial and economic situation in Iraq is constantly worsening, in the absence of high oil prices, in addition to the continued embezzlement and control of hard currency by the parties in the country.

 

The remedies do not seem close, especially since Iran is tightening its grip on Iraqi resources, without taking into account the real crisis in Mesopotamia. However, activists and experts have talked about the possibility of resorting to "deleting zeros."


But the economic expert, Rasem Al-Aqidi, warned against the step of dropping zeros from the country's currency, as it could lead to the collapse of the Iraqi dinar.


Al-Akidi said in a press statement, that "dropping zeros from the Iraqi currency is not of use at the present time, especially since the government and its financial tools do not control the monetary mass that the country possesses."


Adding that «the decision to drop the zeros from the currency must be preceded by a series of important things, including the state’s control of the largest monetary mass, so that hard currencies do not accumulate at the central bank.


Al-Aqidi pointed out that "raising the zeros without controlling the greater proportion of the monetary mass may lead to the collapse of the dinar because the state is not in control of the currency."


Also, "the neighboring countries, companies, banks, and those who control the economy may resort to a game that leads to its collapse, which also leads to a double loss of the dinar's value against the dollar," according to the expert.


Iraq has been suffering for about a year from an economic downturn that has threatened the financial security of the Iraqis, specifically the segment of employees, and the spread of the " Corona " virus caused a decrease in the prices of oil, which is the source of the treasury of Mesopotamia.


Political conflicts also led to the suspension of the approval of the fiscal budget for the current year 2021, which is indicated to be the service of the parties loyal to Iran, and not the Iraqi people who are waiting for services and a decent life.

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The economic expert, Rasim al-Aqidi, identified earlier, about 4 negatives that would emerge at once if the Iraqi government went to float the Iraqi dinar.

This is the key piece of this guys concern, which is why Iraq maintains a peg to the US dollar, thus no games. As far as controlling the mass of money, once a revalue of the exchange rate is instituted whatever stored currency will have no choice but go to the banks for lower denominations since they won't be able to spend large notes in the local market. [The current drop of the exchange rate and further drops suggested has caused much of the chunky money to be exchanged to dollar for wealth preservation.] MHO

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On 9/7/2019 at 12:57 PM, DinarDavo said:

 

not sure psychological is going to be of any value when I'm going shopping for a new F-150....  <_<

All purchases one makes has an overall psychological effect on the purchaser. In the United States that psychological effect is called Consumer Confidence. 

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(edited)

Also, "the neighboring countries, companies, banks, and those who control the economy may resort to a game that leads to its collapse, which also leads to a double loss of the dinar's value against the dollar," according to the expert.

 

Hogwash. This is nothing more than fear-mongering. "The neighboring countries" have not collapsed nor has their currency had a double loss against the dollar. 

 

When the exchange rate was changed in December 2020, the rate was only supposed to be at that rate for only one (1) year. One year only. This article is to make the GOI look like they know what they are doing from an expert standpoint when they really have no clue. In that time since the exchange rate was changed, the White Papers came out and was implemented. The one year magically became 4 to 5 years via the White Papers. Notice in the roll out of the coins they state they will be deleting the zeros proceeding the roll out of smaller denominations. Thus from the implementation of the White Papers, 5 years becomes 2025 to 2026 for the implementation of the zero deletion project and RV. And the roll out of the coins becomes 2027.  So by this schedule an RV will happen anywhere between 2025 and 2027. (Unless they add more to this at a later date).

Edited by Theseus
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On 12/2/2020 at 10:14 AM, DWS112 said:

Economic expert calls for deleting zeros to strengthen the local currency

11/30/2020

873418-44ad1f04-e858-43ba-ba52-3e564a335075.jpg&w=570&h=253&t=absolute

 

Baghdad / NINA / The expert on economic affairs, Raad Twaij, called on the Central Bank to delete the three zeros from the Iraqi dinar to strengthen the local currency.

Twig said in a statement to the Iraqi National News Agency ( NINA 😞 "It is known that the monetary block in circulation is about 60 trillion dinars, which is not available with the Central Bank of Iraq, banks and the public, and it is a large monetary block compared to the economic transactions of the Iraqi economy."

He added, "A large proportion of this bloc suffers from compactness, and therefore this does not help the Iraqi Central Bank in drawing an effective monetary policy."

Twig pointed out: "The deletion of three zeros or the gradual deletion of zeros makes the value of the Iraqi dinar appear at a higher value," indicating: "The evaluation processes and the monetary balance will be rapidly formed in the market economy."

He explained: "The monetary mass can become approximately 15 to 25 trillion dinars, and the value of the new Iraqi dinar converges with the value of the dollar, which facilitates the accounting process and allows small and new denominations of cash to appear in the money market."

bump

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On 2/5/2021 at 10:50 PM, DWS112 said:

"raising the zeros without controlling the greater proportion of the monetary mass may lead to the collapse of the dinar,

is this what we are seeing now with the removal of street traders...and banning of USD in country....and movement to electronic banking and currency boards (swfit forex) buy and seel rates...removing street rate, parallel rates and MCP

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On 10/7/2020 at 2:57 PM, Theseus said:

If we divide the total amount of reserves by the average total amount of IQD in the world, Iraq could only support system" rel="">support a maximum exchange rate of $1.87.

yep and shabs said they can afford $5.00

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