WTO=Question

[allinxpress]

Does anyone know FOR SURE if in order to be a full member of the World Trade Org u HAVE to have a tradable Currency??

[wingsofhope]

YES...

[allinxpress]

Ok, you are %100 sure wings??

[BanG]

Yes that is 100% correct.

[keepmwlknfny]

Yes, and in Iraqs case they must bring the value of the dinar closer to on par with the USD......now whether thats a 1 to 1 or only cutting it in half of what it is now is yet to be determined and there is no specific value given but we will see it go up before they are allowed into the WTO this year.....

[BanG]

Here is Iraq's current WTO status. http://www.wto.org/english/thewto_e/acc_e/a1_iraq_e.htm

[allinxpress]

Ok, as long as the IQD must be valued .. I feel VERY optimistic! I still feel it at 3.22 or above.. due to many many reasons.

@ Bang.. This doesnt look too current.. hasnt updated since 2/08.

Edited January 31, 2011 by allinxpress

[USMC_2674]

Yes, and in Iraqs case they must bring the value of the dinar closer to on par with the USD......now whether thats a 1 to 1 or only cutting it in half of what it is now is yet to be determined and there is no specific value given but we will see it go up before they are allowed into the WTO this year.....

Why "must they"?

Is this deductive reasoning, or is this a mandate from someone in charge?

Thanks in advance for taking the time to answer my question.

Semper Fidelis,

Kent

[keepmwlknfny]

Why "must they"?

Is this deductive reasoning, or is this a mandate from someone in charge?

Thanks in advance for taking the time to answer my question.

Semper Fidelis,

Kent

This is coming from the mouths of Iraqs Ministry of Finance......that they are going to reduce the difference between the USD and the Dinar, activate the role of the private sector, and open up the world markets in Iraq with customs on imported goods....

I still feel it at 3.22 or above.. due to many many reasons.

Thats just wishful thinking......would be nice....but not plausible at this time.....

[Nelson0528]

I have a hard time buying that they MUST have a recognized currency to be members in the WTO. Their primary export (Oil) is traded in USD. As far as their meager agricultural exports (about the only other products being exported to date) No one can dictate what they accept in exchange for their product. They could be willing to accept almost ANY currency for their Ag products, especially with a poor exchange rate for the DInar. Foriegn currencies are readily exchanged within Iraq every day. So, while it would be nice for them to have a strong, globally accepted, currency; I do not see where it is an absolute requirement for business. JMO Happy Monday to all!!

Edited January 31, 2011 by Nelson0528

[keepmwlknfny]

I have a hard time buying that they MUST have a recognized currency to be members in the WTO. Their primary export (Oil) is traded in USD. As far as their meager agricultural exports (about the only other products being exported to date) No one can dictate what they accept in exchange for their product. They could be willing to accept almost ANY currency for their Ag products, especially with a poor exchange rate for the DInar. Foriegn currencies are readily exchanged within Iraq every day. So, while it would be nice for them to have a strong, globally accepted, currency; I do not see where it is an absolute requirement for business. JMO Happy Monday to all!!

What sense would it make for them to be a full member of the WORLD TRADE Organization with a currency that is NOT internationally accepted or traded???

[Nelson0528]

What sense would it make for them to be a full member of the WORLD TRADE Organization with a currency that is NOT internationally accepted or traded???

Not saying it makes any sense. Only suggesting that it is NOT an absolute requirement. What sense has it made to drag out the formation of the GOI for 10 months? Nothing they have done has made much sense to this western minded individual. LOL Anyways, I wasn't trying to create a huge debate over what we all think will likely happen. Only pointing out that there have been few absolutes throughout this whole process, including the requirement for a recognized currency to participate in the WTO; although it would certainly simplify the relationship.

[allinxpress]

Thats just wishful thinking......would be nice....but not plausible at this time.....

Yea sorry.. disagree with you.. got too many feelings, and have heard too many Economists saying that it will be in the $3 range.. Makes the most sense. Anything below $1 makes no sense at all.

[keepmwlknfny]

Yea sorry.. disagree with you.. got too many feelings, and have heard too many Economists saying that it will be in the $3 range.. Makes the most sense. Anything below $1 makes no sense at all.

"economists" Alot of their theories that get passed around on these sites have been pushed aside due to things they present that just dont work in that way so some of these so called economists just seem to be normal people writing up information that just sound good to the masses.....please tell me why you think that anything below 1 dollar doesnt make any sense.....would like to hear your thoughts....

[snowglobe4]

i like the link ty...but it has had no movement since 2008....anyone know why or of more recent movement toward the WTO compliance?

[allinxpress]

Well, the IQD has ALWAYs been worth more than the USD and the only time the currency took a significant hit in value was when Saddam invaded Kuwait. Now that all the sanctions are lifted and Iraq can trade with the free world, they will thrive in a freee market economy. Plus, I have been loosely comparing this situation to an individual person coming out of Ch7. Thier "credit score" would be based on a few facts, including the amount of assests that person would currently be holding, not to mention anyone that may "cosign" for them. In this case, with all the assets Iraq has in gold, oil, natural gas and sulfur, and the fact that they have the U.S and the U.N behind them. not counting thier renewed "alliance" with Kuwait, and also the fact that in the dinar community and middle east region you have the following countries: Baharania, Tunisa, Jordan and Kuwait.. it makes sense to me that the IQD would have to be competiitive in that market. Baharani.. a is only 237 sq miles, yet thier currency is worth $2.68.

And I still cant see the big brother "Iraq" invading the little brother "Kuwait", then 20 years later the little brother has a currency value worth 3 1/2 TIMEs that of the big brother, EVEn though Big Bro has all the assets. I think 3.22 or higher makes sense because the IQD was 3.22 before and yea.. u can say that was an untraded value, but that doesnt mean the Value was INCORRECT. At the hight of his pwer, Saddams Iraq was producing more than 2 million bpd. after we invaded, that # dropped to 1.5 and below. Its at like 1.8 or 1.9 now. and its only going to climb, Especialy with the KRG set to join the party..

I think, in time, the IQD will be worth over $5.. but its not going to get there by starting at anything lower that $1. the USD is failing, Why tie another currency to one thats dropping in value??

So.. those are my thoughts. Even if it opens at 3.86.. u think a lot of people in this country are going to notice?? They might see that for a sec.. but then there will be a news headline on Justin Beiber or Linsay Lohan or charlie sheen and the public will turn thier attention to that crap..lol.

and I know one thing for a fact KeepEm.. This will be one time where you wont mind being wrong!! lol Take it easy my friends and GO RV!! I want to buy a new LED TV before my Packers win the SuperBowl!!

[blue horseshoe]

ok - Look at it this way - why would you want to be a full member of the WTO without a tradable currency? It just makes good business sense to have a tradable currency. Also, they want to deal with dinar not dollars. They want their own currency. When USD goes back to Iraq it will be changed into Dinar. If you buy a BMW in the US they do not send USD back to Germany, they trade it for Marks. The same holds true for any country. Now, on the RV amount. Wouldn't it makes sense to have your money worth somehwhere in the neighborhood of your fellow arab countries? Check the Saudi's; the Kuwaiti's; get an average of what they are. For it to revalue at 1 to 1, is not very good business sense for the Iraqis. They have gone through a lot, but they are not stupid. Their oil is their backup to any money problems they have. That is their gold standard. I have no idea what they revalue rate will be, no one does, I am just looking at it from a good common sense point of view.

[ThePhantomRider]

Better yet, why would members of the WTO want you as a member without a tradable currency?

In and around $1-$1.50 at the very most $2 could happen IMO...however once allowed to float and over time, it could get to $3 but that would happen as a natural progression of things.

Remember when the RV hits, the CBI will have to manage the floating spread so they go in too high, they would have to buy a ton to offset the sell off. If they come in too low, they will have to sell to support the throng of actual speculators that have held off till there is something official looking for the eventual climb up to its natural and balanced rate. The CBI doesn't want that.

They want to be able to go in with a rate that hopefully allows enough sell off and speculation purchases that will balance enough so they don't feel near the strain if they come in too high/low or to much of an initial spread.

TPR

[allinxpress]

Anyone know why Saudi is worth so little in compar with the USD?

[ThePhantomRider]

That is a great question, would like that answer as well.

I think if someone were to compare it to Iraq vs. Kuwait, some may get worried, though I think the difference is they will have to come out higher for the initial injection since SA didn't go through this stuff and natural selection has moved their currency to where it is, the IQD will eventually find it's equilibrium..

TPR

[dinardarius]

HI all Dinarvetors, I agree with that was written below by Allinxpress +1, I like it ! With that said I feel that until Iraq has rebuilt and improved all that is needed for most Iraqies (85%) to live in less than poverty with water, power and houseing, the huge cost of rebuilding will either keep the Dinar at a lower rate because the Iraq budget needs to stay in the positive, if for about two years they can keep it within the budget after the RV I then believe the value of the Iraqie Dinar wiil then go up to or past $3.22. So it could go either way, they may RV higher so as to get more income. I'm all for that.

I hope and feel the Iraq Dinar well RV at $1.16 or more. I also feel that Iraq will RV before the United States of America RV's. The reason for Iraq to RV before the USA is because one of two reasons: #1 When Iraq RVs first the highly inteligent folks that invested in IQDs will cash in and spend alot of $$$$$$$$ boosting the USA economy along with the USAs 400 million USD worth in the treasury will turn into a positive for our national debt (pay off China at least), thereby raising the United States of America's over all rate for RVing. We will get more USD for our Dinars if Iraq RVs first. OR

#2 The US news claims that we are in good condition over all( I do not know how they figure that, mabe they know about the RV coming) and that being said it could be when the USA RV amount is announced the price will not go down. When the USA RVs first and it come in lower that will help us get more for our Dinar. Meanwhile the USA may or may not suffer from the lower rate. Thats right my two cents worth.

I hope the Dinar RV's first even with all the building that needs to be done.

Well, the IQD has ALWAYs been worth more than the USD and the only time the currency took a significant hit in value was when Saddam invaded Kuwait. Now that all the sanctions are lifted and Iraq can trade with the free world, they will thrive in a freee market economy. Plus, I have been loosely comparing this situation to an individual person coming out of Ch7. Thier "credit score" would be based on a few facts, including the amount of assests that person would currently be holding, not to mention anyone that may "cosign" for them. In this case, with all the assets Iraq has in gold, oil, natural gas and sulfur, and the fact that they have the U.S and the U.N behind them. not counting thier renewed "alliance" with Kuwait, and also the fact that in the dinar community and middle east region you have the following countries: Baharania, Tunisa, Jordan and Kuwait.. it makes sense to me that the IQD would have to be competiitive in that market. Baharani.. a is only 237 sq miles, yet thier currency is worth $2.68.

And I still cant see the big brother "Iraq" invading the little brother "Kuwait", then 20 years later the little brother has a currency value worth 3 1/2 TIMEs that of the big brother, EVEn though Big Bro has all the assets. I think 3.22 or higher makes sense because the IQD was 3.22 before and yea.. u can say that was an untraded value, but that doesnt mean the Value was INCORRECT. At the hight of his pwer, Saddams Iraq was producing more than 2 million bpd. after we invaded, that # dropped to 1.5 and below. Its at like 1.8 or 1.9 now. and its only going to climb, Especialy with the KRG set to join the party..

Read more: http://dinarvets.com/forums/index.php?app=forums&module=post&section=post&do=reply_post&f=6&t=52595#ixzz1CewC9PAu

GO RVing

Edited February 1, 2011 by dinardarius