Wednesday Morning Opinions @ 9:25 AM MDT - 1/03/2024

[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... So, take everything with a grain of salt ...  RON 

 

 

 

Mnt Goat ...2023 was an outstanding year for progress in the currency monetary reforms in Iraq. I could hardly believe that so much was done in such a short period of time, if you compare the other 20 years since the 2003 invasion. In today’s news we read multiple articles talking about all this progress and how they have so far managed to get the parallel rate from 160,000 to 145,000. This is very close to the official CBI rate of 132,000, but not yet there as they expected.  My CBI contact is telling me they still want to bring it closer and more stable...It’s all very good signs but now there yet. [Post 1 of 2]

 

Mnt Goat  My CBI contact tells me they do need it closer and stable and when it does, they will trigger another CBI official rate revaluation. But this will still be the program rate not what we want. We need to keep our eyes on the CBI “official” rate. When this rate drops again, I was told they will move ahead on the project to delete the zeros. They want to accomplish this in the month of January and are optimistic they can. So, this is the very good news for today to kick off the new year. [Post 2 of 2]

 

 

Pimpy  Question:"What's the difference between a dirty float and a managed float?" You have a fixed rate like we have now... where they come out and say you get 1320 dinar for a dollar, fixed.  Then you have two types of floats...Free Float - that means a market determines the value no ifs, ands, or buts. The market determines the value. That's a free float.  A managed float is the same as a dirty float.  That means the Central Bank of Iraq will watch what happens in the free market, like Forex, but if it goes too far in one direction...then they intervene.  They'll do something to control the exchange rate to keep it from getting out of whack.

 

 

Frank26  Question: "...Some of the banks I called said they're going to send them to another bank and inspect them and then bring them back?"  What happens if the Brink truck as it's driving to the the other bank gets robbed?  'We will replace the dinar.'  No you won't.  You'll replace the value, which is ka-ka right now.  Don't ever lose site of your dinars.  I told you take pictures.  You just need pictures of the front of your dinar not necessarily the back.  The front has the batch number and the serial numbers.  That's what's important.  

 

 

 

 

[NWGUY]

Let's hope that Iraq let's it go to the free float, and let the market determine the value.  The managed float would be no different then we are at now.  No Good!   Let's go Iraq! 

[Luigi1]

Pimpy contradicts himself.  Yesterday, it was up to a 2 year wait.

Today, he's talking floats.

[NWGUY]

2 hours ago, Luigi1 said:

Pimpy contradicts himself.  Yesterday, it was up to a 2 year wait.

Today, he's talking floats.

 

They all seem to flip flop regularly!