When the RV will occur and what to look for

[dinar420]

I'll bash him for you. Horse S**T! His motivation is either, he's a sociopath or a Dinar Salesman. That's it. Probably a combination of the two.

Yeah well how stupid can U be? Sit down and put ur helmet back on the bus is still moving Chi! Sol, Thnks for putting informative tidbits out there. I'm jus saying

Edited February 28, 2011 by dinar420

[yusofsabri]

If they delay the RV, who would suffer the most? Definitely the Iraqi peoples. Lets think about it.

[Stamp]

I am more interested to know when RV will occur.

I dont care much of what the rate will be since I am pretty sure it won't be lower than the lowest foreign exchange rate of Iraqi neighbouring countries.

UAE 1 DIRHAM and Qatar RIYAL is about 0.27 USD.

[general53]

With the fires(ATTACTS) they had in 40% OF REFINERIES, TODAY, WILL THAT FORCE THE RV AHEAD. THEY HAVE TO HIRE MORE GUARDS.(i UNDERSTAND THEY HAVE BEEN TRYING TO SEVERAL WEEKS )

MORE EQU.

RV MAY BE SOONER THEN JUNE.

[sol37]

The RV will occur a short while after they stop auctioning off currency at the CBI and then put some oil revenue between the stopping of the cuurency auctions and the RV. Why on earth would they RV immediately after auctioning off 127 million dollars of IQD. Think about it. The auctions have to stop first. Last auction was on the 27th of February, 2011. That's today folks

From the CBI web site...

Currency Auctions

Announcement No. (1843)

The latest daily currency auction was held in the Central Bank of Iraq on the 27-FEB-2011. The results were as follows:

Details Notes

Number of banks 12

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 127,960,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 127,960,000

Total offers for selling (US$) -----

No RV on the heels of these currency auction. Ain't gonna happen. They need some OIL revenues to pile up after the auctions stop.

The magic formula is to RV is:

Currency in circulation vs. foreign currency in reserves vs. OIL revenue.

Now I don't know what the magic ratio is, but this is the formula. If anyone has any ideas on the magic ration of these three things please let us know. Otherwise, every time the CBI has an auction, the RVis delayed some amount of time.

[Stamp]

Will they have a fixed exchange rate?

This 7-Feb 11 article is about gulf countries having fixed exchange rate.

http://www.zawya.com/story.cfm/sidGN_06022011_070208/Backing%20A%20Dollar%20Peg

[sol37]

Will they have a fixed exchange rate?

This 7-Feb 11 article is about gulf countries having fixed exchange rate.

http://www.zawya.com/story.cfm/sidGN_06022011_070208/Backing%20A%20Dollar%20Peg

Not sure. Could be a topic during the Arab summit. Well have to wait and see.

[R2d2dc]

Thanks for the post

[rick25sandi]

PUMPER AGAIN

[8887]

Same old speculation ... same old speculation .... just different dates and rates .... it will not stop until the Dinar RV's ... there is nothing we can do about it. Ho hummmmm.

Blessings,

8887

[Austin-Powers-for-PM]

THIS PERSON DOSNT HAVE ANY IDEA WHATS GOING ON !!!!!!!!!!!!!!!!OKIE SAYS THIS WEEK FOR SURE THIS TIME!!!!!!!!!!!!

THAT'S RIGHT!!! OKIE HAS NEVER BEEN WRONG!!! I'M TAKING MY DINARS AND CAMPING OUT AT MY LOCAL 5/3 BANK UNTIL THIS THING RV'S!!!!!!!!!!! I'M GOING TO BE A GAZILLIONAIRE BY THIS TIME TOMORROW!! YAY!!! Wait, I need to get a release from my case worker here at the funny farm before I can leave.. Dang!!!!

[terr]

Most can not wait till JUNE..

[coldwarvet]

I've asked this before, and I'll ask it again, because no one's answered the question satisfactorily: How do you get stability out of the current situation? Look at it this way: if YOU lived in a country where it took boxloads of currency to buy the basic subsistence items for your family, if electricity was available only part of the time, or maybe not at all, if your police force was being attacked frequently by subversive groups, if all around you was evidence of destruction and poverty, how willing would YOU be to just make nice? AND, if you were a government official dealing with the world with an essentially worthless currency, how effective would YOU be at implementing reforms? I've heard the mantra of "stability first, then RV" too many times, from too many people, without substantive evidence to back it up, to believe that's the answer. If that's what the decision makers are holding onto as a prerequisite, then we're in for a REALLY long ride!

[sol37]

There was another currency auction today. Like I said, and like I was told by my source in Baghdad, until the the currency auctions stop at the CBI and they stack up some OIL revenues for a period of time, there will be not an RV. The currency auctions have to stop before the RV will occur and then they need to stockpile some OIL revenues Then and RV. It's common sense folks.

This from the CBI today.

Announcement No. (1844)

-----------------------------------------------------------------------------------------------------------------------------------------

The latest daily currency auction was held in the Central Bank of Iraq on the 28-FEB-2011. The results were as follows:

Details Notes

Number of banks 21

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 137,609,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 137,609,000

Total offers for selling (US$) -----

Exchange rates

[Lutie]

Wow ! Some of you are so mean spirited I wouldn't post information in here even if I had some. What's up with that?

[Lilalbertus]

Oh, Boy time to run out and buy more. Sounds like pump.

We have heard plenty from sources in Bagdad.

Well that's when Iraqi gets control of there oil fields so logically it make sense

[Froto]

... My sources also assures me that a lop is out of the question as nobody, especially the Iraqi people will not stand idly by and see their wealth wiped out by such a draconian devaluing and destructive measure. ...

???

There is absolutely no loss in value with a redenomination (LOP). You might be right in questioning your source's knowledge. The Iraqis are suffering from the economic results of a few wars and a couple of decades of economic sanctions. Too bad there is no basis in a country being able to just wipe out those effects by saying their currency is worth hundreds or thousands times more than it is today.

[umbertino]

Most can not wait till JUNE..

I know...... For one, I spend on this site the times in between foodstamp- clipping.......

[meatmen4dinar]

The RV will occur a short while after they stop auctioning off currency at the CBI and then put some oil revenue between the stopping of the cuurency auctions and the RV. Why on earth would they RV immediately after auctioning off 127 million dollars of IQD. Think about it. The auctions have to stop first. Last auction was on the 27th of February, 2011. That's today folks

From the CBI web site...

Currency Auctions

Announcement No. (1843)

The latest daily currency auction was held in the Central Bank of Iraq on the 27-FEB-2011. The results were as follows:

Details Notes

Number of banks 12

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 127,960,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 127,960,000

Total offers for selling (US$) -----

No RV on the heels of these currency auction. Ain't gonna happen. They need some OIL revenues to pile up after the auctions stop.

The magic formula is to RV is:

Currency in circulation vs. foreign currency in reserves vs. OIL revenue.

Now I don't know what the magic ratio is, but this is the formula. If anyone has any ideas on the magic ration of these three things please let us know. Otherwise, every time the CBI has an auction, the RVis delayed some amount of time.

If you have done your research, you would know that the CBI has 50 billion already in their reserves.

[sol37]

Not pump!!! Because, despite the rumors I have heard... this is what I really think.

________________________________________

Here is some logic of what an RV rate might be based on the volatility speculators could cause with and RV.

Based on what "The Eagle" says...

There is about 1,000 Trillion Dollars (if all currencies are converted to Dollars) in the world. Strangely enough, the Rothschild family (7 families actually) own just a smidgen over 500 Trillion in assets. These are the nice folks that brought us the Federal Reserve, Bank of England, Bank of Germany and all the other reserve banks. The figures I see repeated from multiple sources tell this story: There are a total of 27 Trillion Dinars in print. BOI has recovered 17 Trillion (about 63%) leaving 10 Trillion in circulation. Of that, the US government owns a reported 5.7 Trillion, individuals and small-time speculators own about 300 Billion (about 3%), and the remaining 4 Trillion is owned by other countries.

And knowing that the only ones that will make a run on the banks is the small time speculators who hold 300 Billion Dinar ($225,000,000 USD at the current .00085 USD to 1 IQD rate) the CBI would need cash reserves capable to cover this 300 Billion Dinar run on the bank as governments and financial institutions will keep for oil purchases or investment so it's just the speculators who need to be covered.

Now, the CBI has approximately 50 Billion USD cash reserves as of the end of 2010.

So, based on their reserves, what RV amount could be supported based only on cash reserves, not oil revenues current or potential?

The answer? The CBI, as of current, could support an RV of .165 USD = 1 IQD (a shocking profit potential of 19,412% based on the current rate of .00085 USD = 1 IQD). An RV of this rate (.165 USD = 1 IQD), assuming everyone would cash in at the same time, would require 49.5 Billion USD which is the amount of the CBI's entire foreign currency reserves as of the end of 2010 (300 Billion IQD at .165 USD to 1 IQD = $49,500,000,000 USD).

To RV at .30 USD = 1 IQD they would need approximately 100 Billion USD in reserves to cover the speculator's runs on the bank. So, this will take a while, especially when they are planning on spending that on infrastructure projects.

So all you folks thinking that the RV will be at $3.22... LOL. Ain't gonna happen. Do you have any idea how much foreign currency reserves they would need to do that just to cover the 3% of their currency in speculators hands? Astronomical amounts!!! A 1:1 RV would require approximately $300 Billion in foreign currency reserves in the CBI just to cover speculators. So a 3.22 IQD to 1 USD RV would require approximatelly 1 Trillion USD in reserves just to cover speculators 3% Dinar in circulation. We will be waiting to 2025 for that one But maybe if you hold the Dinar that long, you just may see that.

Do the math. Be realistic. We will be lucky to see 10 cents USD to 1 IQD. And crap... I would be happy with that. 2.5 million IQD = 1/4 Million USD... very nice return. But no overnight millionaires.

Sorry to disappoint.

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Edited February 28, 2011 by sol37