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IMF suggests Stable Iraqi Dinar


perkey1995
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Don't shoot the messenger... but this is what I found today.... Is this a smoke screen with continual denial before the fact ????????

Posted on 30 March 2011. Tags: IMF, International Monetary Fund, IQD, iraqi dinar, Redenomination, revaluation

A report on Monday by the International Monetary Fund (IMF) suggests that the Iraqi dinar is currently fairly valued at 1170 dinars to the US dollar:

“The CBI [Central Bank of Iraq] will continue to aim at keeping inflation low, predominantly by maintaining a stable exchange rate. The low level and the relative stability of inflation do not suggest any significant over- or under-valuation of the Iraqi dinar. Also, a stable exchange rate continues to provide a solid anchor for the public’s expectations in an otherwise highly uncertain environment and in an economy with a very low level of financial intermediation.”

The report continues, “Meanwhile, the CBI will continue to keep its policy interest rate positive in real terms. To enhance mobilization of domestic financing, limitations on state-owned banks’ use of government deposits for investing in Treasury bills have been reduced, while the pension fund has also been allowed to invest in Treasury bills and to participate in auctions directly.”

It also allows for the possibility of an upward drift in the value of the dinar over the years:

“Staff supports the CBI’s policy of managing the exchange rate of the Iraqi dinar to keep inflation low. A stable exchange rate continues to provide a solid anchor for the public’s expectations in an otherwise highly uncertain environment. Over time, rising oil revenues could put upward pressure on the real exchange rate, which would warrant allowing greater exchange rate flexibility.”

http://www.iraq-businessnews.com/2011/03/30/imf-suggests-stable-iraqi-dinar/

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Thank you and have a good night. However, with all the activity that has been occurring, I really can't believe the currency will not revalue much higher than it presently is. Why would the IMF keep urging/pushing Iraq to reval. It does not make any sense.... is this the typical old trick mentioned in the Stansberry report.... they categorically deny what is about to happen, shortly before it is does occur... Smoke screen and mirrors.???????... just hoppin"

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It may come down to who you are going to believe, and it may be smoke and mirrors. Who knows? Only time will tell.

And we know for sure the Iraqi government is not doing handstands over anything a perceived "western" alphabet soup organization is going to think, or speculate, or believe about their country, or their politics or currency. Every time they have been put upon to ante up for the UN or the IMF or any other bunch, do you see them going out of their way to do what is expected or "required"? No, you do not! They will go the extra mile, maybe not for a camel, but with a camel, to prove they don't have to do anything by western standards. Look how long since their election and they were supposed to have everything settled by year end and still it is not. They don't follow any one's precepts about how things should be or are. Out of contrariness they could just decide to ruffle feathers and RV whether the IMF thinks they need to or not, and at a rate they feel will add glory to their cause or whatever.

I am not going to worry about this. It may be a glitch but I don't think so. Too much is riding on this, and not just the small investors. Their are countries holding creditors off waiting for this to happen.

smee2

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It may come down to who you are going to believe, and it may be smoke and mirrors. Who knows? Only time will tell.

And we know for sure the Iraqi government is not doing handstands over anything a perceived "western" alphabet soup organization is going to think, or speculate, or believe about their country, or their politics or currency. Every time they have been put upon to ante up for the UN or the IMF or any other bunch, do you see them going out of their way to do what is expected or "required"? No, you do not! They will go the extra mile, maybe not for a camel, but with a camel, to prove they don't have to do anything by western standards. Look how long since their election and they were supposed to have everything settled by year end and still it is not. They don't follow any one's precepts about how things should be or are. Out of contrariness they could just decide to ruffle feathers and RV whether the IMF thinks they need to or not, and at a rate they feel will add glory to their cause or whatever.

I am not going to worry about this. It may be a glitch but I don't think so. Too much is riding on this, and not just the small investors. Their are countries holding creditors off waiting for this to happen.

smee2

Hey Smee! Who are the countries holding off creditors? I'm not trying to be smart at all just trying to learn. I have heard that a few places but no one will show me who it is. Thanks buddy!

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Really? Do you think the IMF would say the IQD should be worth X? The IQD is stable based on the fact that the CBI is making it stable. The CBI could make it stable at a 1:1 ratio.... or more ..... or less. The 1170IQD to $1USD is not realistic once Iraq is allowed to have a tradable currency.

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I agree with you all. I find it hard to believe with all of Iraq's effort and so many other events that have occurred to allow the RV to remain at 1170. we need to confirm the facts rather than just opinions. Any help welcomed. May be we just keep the faith and ignore this article. Maybe Iraq- Businessnews is not credible?????

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Its over guys!!!that said it all.it will be yrs befor they even think of rv the dinar..o well o knew it was to good to be true.life goes on .u cant trust them people over thear.thay hate the usa.allways have.allways will.so let them keep killing each other ..

Just a question, if "u cant trust them people over there..." why would you believe this article? I agree with the others, smoke and mirrors.

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there is only the story in "the iraqi business news" but when you click on the bottom to read the whole article it says "page not found". has any one ever heard of "the iraqi business news" or seen any of their articles before?

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That news source has some far out articles, too far out, far enough where they are not believable. Notice no author either. Read the Iraq: IMF Second Review Under the Stand-By Arrangement - March 2011:

Progress has been made in moving toward accepting the obligations of Article VIII, Sections 2(a), 3, and 4, of the IMF’s Articles of Agreement. Iraq has worked with IMF staff to complete the review of exchange laws and regulations and are considering measures to remove the identified exchange restrictions on current international transactions. Iraq remains committed to avoid imposing any restrictions on the making of payments and transfers for current international transactions or introducing any multiple currency practices.

Edited by starlight
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Don't shoot the messenger... but this is what I found today.... Is this a smoke screen with continual denial before the fact ????????

Posted on 30 March 2011. Tags: IMF, International Monetary Fund, IQD, iraqi dinar, Redenomination, revaluation

A report on Monday by the International Monetary Fund (IMF) suggests that the Iraqi dinar is currently fairly valued at 1170 dinars to the US dollar:

“The CBI [Central Bank of Iraq] will continue to aim at keeping inflation low, predominantly by maintaining a stable exchange rate. The low level and the relative stability of inflation do not suggest any significant over- or under-valuation of the Iraqi dinar. Also, a stable exchange rate continues to provide a solid anchor for the public’s expectations in an otherwise highly uncertain environment and in an economy with a very low level of financial intermediation.”

The report continues, “Meanwhile, the CBI will continue to keep its policy interest rate positive in real terms. To enhance mobilization of domestic financing, limitations on state-owned banks’ use of government deposits for investing in Treasury bills have been reduced, while the pension fund has also been allowed to invest in Treasury bills and to participate in auctions directly.”

It also allows for the possibility of an upward drift in the value of the dinar over the years:

“Staff supports the CBI’s policy of managing the exchange rate of the Iraqi dinar to keep inflation low. A stable exchange rate continues to provide a solid anchor for the public’s expectations in an otherwise highly uncertain environment. Over time, rising oil revenues could put upward pressure on the real exchange rate, which would warrant allowing greater exchange rate flexibility.”

http://www.iraq-businessnews.com/2011/03/30/imf-suggests-stable-iraqi-dinar/

this is BS. this is the same "publication" that posted the Bernie Maddof story, only that one was posted under the link http://shortlinks.co.uk/3fol also, i checked the IMF site. there is no article regarding anything of this nature. the last article on the IMF site, we all saw was on 03-03-11. also, if you try and read the rest of the "story" on the above link it takes you to a blank page. and, finally, does the term "newbie, with 3 posts mean anything to anyone??? if i had found this on the IMF site or on any other reputable site i would consider it's merit but this guy is a joke. he's making himself out to be a journalist when he is obviously a skeptic whose looking to get recognition by playing 'devil's advocate'.

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....I think STABILITY is whats going to get this thing done ! There is NO WAY the iraqi dinar WILL NOT increase in valu....the more stability the closer we are....i still see ABSOLUTELY NOTHING NEGATIVE in a post like this.....it's coming...may not be how we wish it to be ....but the dinar is going to make us all very happy....imho

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BULL **** !!!!

smoke n mirrors.

Agree! This is not over yet. If they can convince the populous to get rid of their dinars by selling back to the dealers out of fear they WIN BIGTIME saves on payouts. NEVER GIVE UP! Losers Give up, they are at the bottom of the food chain and thus have the lowest intestinal fortitude or survival rate in a bad situation. Smoke and Mirrors folks and I have said this a million times, DO NOT BELIEVE HALF OF WHAT YOU READ COMING OUT OF THE ME! PONDER A QUARTER OF THE NEWS AND THROW THE REST IN THE TOILET! E.x. How many times did they tell us they had the ministry positions filled? Hell Maliki voted his own picks down.....LMAO. RELAX we are almost DONE! I have been in this many years now and have become wise to the ME news companies and the Arab mentality. Hang in there and stay the course. Peace.

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Progress has been made in moving toward accepting the obligations of Article VIII, Sections 2(a), 3, and 4, of the IMF’s Articles of Agreement. Iraq has worked with IMF staff to complete the review of exchange laws and regulations and are considering measures to remove the identified exchange restrictions on current international transactions. Iraq remains committed to avoid imposing any restrictions on the making of payments and transfers for current international transactions or introducing any multiple currency practices.

Aha! Starlight has nailed it! I've been looking for the mechanism that makes a currency tradeable or not tradeable, and I don't know how I missed this. I'll have to get this framed.

Does anyone know specifically what these "identified exchange restrictions" are? I'm guessing it's another article, section, and paragraph of something, from back in the bad old days.

Great post Starlight, and thanks!

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Read the article. Some parts that were left out, that I think may be of some importance.

24. Staff supports the CBI’s policy of managing the exchange rate of the Iraqi dinar

to keep inflation low. A stable exchange rate continues to provide a solid anchor for the

public’s expectations in an otherwise highly uncertain environment. Over time, rising oil

revenues could put upward pressure on the real exchange rate, which would warrant allowing

greater exchange rate flexibility. Staff also welcomes the authorities’ continued commitment

to safeguard the independence of the CBI, which is critical for maintaining confidence in the

Iraqi dinar

IX. Exchange rate arrangement:

The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis

since October 4, 2003. The central bank followed a policy of exchange rate stability which

has translated in a de facto peg of the exchange rate since early 2004. However, from

November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate.

As a result, the exchange rate arrangement of Iraq was reclassified to the category of

crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its

earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of

Iraq was reclassified effective January 1 2009 as a stabilized arrangement.

Iraq continues to avail itself of the transitional arrangements under Article XIV. Iraq has a

generally unrestricted current account regime and a significantly liberalized capital account.

However, four measures (plus one exchange restriction maintained for national or

international security) have been identified to give rise to exchange restrictions subject to

IMF approval, namely, (i) the requirement to pay all obligations and debts to the government

before proceeds of investments of investors, and salaries and other compensation of non-Iraqi

employees may be transferred out of Iraq, (ii) the requirement to submit a tax certificate and

a letter of non-objection stating that the companies do not owe any taxes to the government

before non-Iraqi companies may transfer proceeds of current international transactions out of

the country, (iii) the requirement that before non-Iraqis may transfer proceeds in excess

of ID 15 million out of Iraq, the banks are required to give due consideration of legal

obligations of these persons with respect to official entities, which must be settled before

allowing any transfer, and (iv) an Iraqi balance owed to Jordan under an inoperative bilateral

payments agreement. In addition, one exchange restriction maintained for security reasons

should be notified to the IMF under the framework of Decision 144-(52/51).

http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf

Edited by hammy
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Hey Smee! Who are the countries holding off creditors? I'm not trying to be smart at all just trying to learn. I have heard that a few places but no one will show me who it is. Thanks buddy!

Good question ... okay, I am going strictly by memory here, and it is, at my age, not in perfect working order ... here goes ...

About eight months ago, or so, maybe longer, there was a lot of news about several countries being broke ... and it seems to me that Spain was one of them and/or Greece too, or one of them was just getting into the situation of having to really do something drastic 'cause they were running so low on money. At that time other countries were mentioned, even I think Great Britain ... It all had to do with economic numbers I am not good with but I am sure they were speaking of several European countries facing major money issues, equating to a person facing bankruptcy.

Next thing, I was reading on the forums, here and elsewhere, that a lot of these countries had stockpiled dinar and were waiting for the RV so that they could bail themselves out of their financial difficulties. At this time the Unites States of America, home of the free, land of the brave, whichever way that goes, was about to become the home of the homeless and the land of the broke. Of course a lot of that sentiment was fuelled by people ragging on the current American president ... and it seems to me the health care issue was at the top of the list at the time. Anyway, once again, there was much discussion about the fact that America has acquired, and is holding, major dinar, and would profit much by the RV if it came in at a decent rate.

So, that is what I based my comments on, about some countries holding off creditors. There was much mention made of certain dates when various countries, including America, needed to prove solvency and holding the dinar was a part of the plan.

Now it could all be a lot of hogwash ... more smoke and mirrors, or pumping, or hopeful thinking ... I really don't know.

But considering these things were read and heard by most everyone who watches television news and then certainly those who read the dinar forums, I felt it was okay to say that in my post.

And I realize you are not trying to be a smart a.s.s., it is perfectly okay to expect someone to back up what they say or write with some sort of reason. It does not always, however, come with a "link" ... hahahaha sorry about that.

If you have any comment, or disagreement, fire away. :)

smee2

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I appreciate all of your comments. I am new to this site and when I saw it I thought i should forward it for comment. It certainly does not coincide with anything we have been researching so far. So needless to say, I was shocked and thought I should bring it forward. Thanks again for all of your insight. I too believe it is smoke and mirros because too much has been happening that contradicts this article. It must not be a credible source.

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