Saturday Midnight Opinions - 3/05/2022

[ronscarpa]

Remember, no one really  knows what will happen, or when. They're simply stating their opinions based on what they perceive to be happening in Iraq... RON  

 

 

*** Pimpy  Article: "Fitch Affirms Iraq at 'B-'; Outlook Stable"  Since 2015 they keep slowly but surely devaluing the currency.  I bring this up for a reason.  Understand Iraq today in 2022 is nothing like Iraq even from 2020.  It has come a long ways. There is plenty of reason to feel so optimistic about the dinar investment.

 

*** RVAlready  I don’t think the CBI will agree to change the rate until the government is seated. Hopefully, they will install the president by next Friday.

 

*** Kaperoni  The Dinar Community perception  - "the exchange rate of the Iraqi dinar is currently a fake and suppressed value."  This is a misrepresentation of the IMF directives...Again not true and just nonsense. The exchange rate is the exchange rate of the Iraqi dinar it is not fake or a suppressed value. Over the years the IMF has created programs hence the term 'program' to stabilize the currency, cut costs, meet directives etc.  By no means is the exchange rate of the dinar artificial...True, but it is greatly undervalued..RON 

 

 

*** MilitiaMan   the CBI, they have the exchange rate in their court. Not the GOI / Finance Minister, his tasks are important, just different from the CBI...They are independent from each other.  As for the political side of things, they will eventually come around. They may even come around at the same time. I know there is a view that they need to be first, but, the way I read it and from the expert on the CBI has it that the exchange rate is in their court…They devalued before and they can revalue in the future...

 

 

Edited March 6, 2022 by ronscarpa

[fioranosportscars]

 

[md11fr8dawg]

25 minutes ago, ronscarpa said:

True, but it is greatly undervalued..RON 

 

But Ole Kraperoni says otherwise!!!

[ronscarpa]

1 hour ago, md11fr8dawg said:

But Ole Kraperoni says otherwise!!!

 

Actually he does believe it's undervalued, but he is so intent on how any increase in value must happen that he doesn't focus on the fact of Iraq's natural resources. RON 

[sooner guy15]

It’s real simple lady’s and gentleman, the gurus who claim it’s not going to happen, are going to right every day but one. The gurus who claim it’s going to happen every day, are going to be wrong every day but one! When that day comes, none of us are going to care about what any of them think!! 

[Thief]

Generally, to determine the exchange rate of a country, several factors/indicators have to be taken into considerations. 

- Economic health (economic indicators) 

- Public debt

- balance of trade

- inflation

- political stability

(just to name a few). 

 

The question is: were all these factors taken into consideration when they first set the dinar exchange rate (1500 IQD per dollar) in 2003? 

~ economic health? What economic health? 

~ balance of trade? Nope, they didn't have any trade with anybody. 

~ political stability? I don't think so. 

~ inflation? Cruelest/hyper 

 

So what were the economic factors that determine the rate of IQD then? 

 

I don't know, what I know is ~ that exchange rate could not be the true equilibrium rate. That was why IMF had to come in with a program and help them to maintain stability. 

 

Now, let just assume that they did take all those factors into considerations ~ has any of those indicators change over these  last 20 yrs or so? Definitely. Which means the current rate of 1460 IQD per USD (which is as old at that of year 2003) needs to change. 

 

And I don't see 20 yrs of economic, political progress  means changing their exchange rate by just 20-30% of their 2003 exchange rate. 

 

See my point Kap? 

Edited March 7, 2022 by Thief
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