Change At Odana

[ThePhantomRider]

I am posting this in rumors, but last week it was listed on the Odana site that the currency regime was listed at .32109 for the IQD...

It was shown to have been there for at least 4 years in old discussion boards.

Now it's changed to float:

http://www.oanda.com/cgi/fxlookup/CurrencyInfo.pl?currencyCode=IQD

Now walk with me, here is the definition of float:

What Does Floating Exchange Rate Mean?

A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that particular currency relative to other currencies. Thus, floating exchange rates change freely and are determined by trading in the forex market. This is in contrast to a "fixed exchange rate" regime.

Did you see that?

Furthermore:

Investopedia explains Floating Exchange Rate

In some instances, if a currency value moves in any one direction at a rapid and sustained rate, central banks intervene by buying and selling its own currency reserves (i.e. Federal Reserve in the U.S.) in the foreign-exchange market in order to stabilize the local currency. However, central banks are reluctant to intervene, unless absolutely necessary, in a floating regime

Can any experts explain the sudden change and listing to something that is tied to the Forex? I know the Forex has no change, just giving information.

BTW, the definitions are here:http://www.investopedia.com/terms/f/floatingexchangerate.asp

TPR

[TennesseeCherokee]

Thank you for delving deeper into the "float" or "peg" question....

[ThePhantomRider]

Thank you for delving deeper into the "float" or "peg" question....

Doesn't the float sound good right now considering it is defined as being traded on the Forex?

TPR

[TennesseeCherokee]

Honestly, TPR, I was always under the assumption that the IQD was a managed float..at least from 2003 to present. Looks like it was "pegged" prior to 2003. Wish I were of more help here but my forte is not monetary currencies.

Edited January 17, 2011 by TennesseeCherokee

[hopefullbk]

Doesn't the float sound good right now considering it is defined as being traded on the Forex?

TPR

YES IT DOES! sorry to scream but I hope this means something. I dont use this as a monitoring tool, I use netdania so I dont know if this recently change. I'm following the same thread on a few different forums because, this could be something cool. Outside chance but it could be a good indicator. Thanks for bringing it up. I wish I knew more about this one to contribute.

[nir]

Good post float is kinda a supply and demand but for currency.

[ThePhantomRider]

Me too, not my forte, but it has changed in the last 72 hours from .32109 to Float and based on the definition of a float, this may be a good sign.

TPR

Good post float is kinda a supply and demand but for currency.

Thanks,

The Forex part of the definition is what struck me...Time will tell.

TPR

[TennesseeCherokee]

I'm very interested at this information. Sounds positive....Good eyes !

[singaporesling]

Thank you for your interest in OANDA.

The Currency Regime for IQD was changed on the OANDA.com website because IQD is not a pegged currency any longer and has not been for some time now. Unfortunately the website was not updated to reflect the change sooner.

Unfortunately we are not sure why the Central Bank of Iraq decided to change their monetary policy. We suggest that you contact them for information on why the change was made.

If you have any questions please contact us at your earliest convenience.

Kind Regards,

OANDA.com support Team(JD)

http://oanda.com

[ThePhantomRider]

Forgot to upload my email here as well...it was along the same lines as yours but they said that a currency regime doesn't necessarily mean that it's traded on Forex, but like yours said to find out why the country changed it to float.

TPR