Kuwaiti dinar stabilizes at 0.272 per dollar

[Quietlearner]

KUWAIT, Aug 17 KUNA) -- The Kuwaiti dinar exchange rate against the dollar stabilized at KD 0.272 per dollar, and KD 0.391 per euro, the state's official monetary body, the Central Bank of Kuwait, said on Wednesday.

Meanwhile, the Kuwaiti dinar increased against the Sterling pound to KD 0.

447, and kept to KD 0.003 per Japanese yen, and decreased to KD 0.340 per Swiss franc, the daily CBK bulletin said. (end) mgb.tb.asa KUNA 171311 Aug 11NNNN

http://www.kuna.net.kw/NewsAgenciesPublicSite/ArticleDetails.aspx?id=2185546&Language=en

[Rabbi]

That translates to one Kuwaiti Dinar = $3.67

[RV on my mind]

Do we have any idea how many KD in circulation? Just wondering.

[Az Joe]

It really is to bad that Iraq will never be as strong as Kuwait.The only way to get there dinar even close is to LOP and cheat there way there.My concern from the begining was Iraq would change the curency all together to burn or cheat us out of what we had comeing to us.F Iraq my they all burn.

[easyrider]

It really is to bad that Iraq will never be as strong as Kuwait.The only way to get there dinar even close is to LOP and cheat there way there.My concern from the begining was Iraq would change the curency all together to burn or cheat us out of what we had comeing to us.F Iraq my they all burn.

i had the same concerns but thought what the heck it was cheap bought a million for about 1k, but what i have read is there old notes wil coexist with the new so therefore we wont get burned.

[Quietlearner]

Do we have any idea how many KD in circulation? Just wondering.

Heres what I could find so far. I will post more if I find it.

Quietlearner

whoops, thats not gonna work. Try the link, it will take you to the graphs.

QL

Data for June - 2011

Table 01: Monetary Survey of CBK and Local Banks

(Million Dinars)

End of MonthForeign Assets (Net)Claims on Private Sector(1) Claims on Gov.Money Supply(M2)(2) Government Deposits & AccountsOtherMoney (M1)Quasi - MoneyTotalNet (3) of which Capital & Reserve Jun 2006 4569.7 14381.7 2411.2 3805.3 11075.3 14880.5 1664.6 4817.4 3157.6 2007 5156.9 19108.1 1908.9 4322.0 13205.6 17527.6 2345.0 6301.2 4055.8 2008 4780.0 24016.7 2066.0 5013.6 15665.4 20679.0 2986.2 7197.6 5039.3 2009 9493.5 26226.4 2290.1 5002.7 20148.6 25151.3 4365.4 8493.3 5141.7 2010 Jun 9472.1 27041.7 1894.6 5569.2 19699.6 25268.8 4441.2 8698.5 5800.9 Jul 9449.1 27072.5 1894.6 5441.5 19459.5 24901.0 4623.5 8891.7 5790.8 Aug 9473.6 27152.1 1894.8 5371.6 19724.2 25095.8 4506.6 8918.2 5858.6 Sep 9460.2 27283.9 1895.4 5436.9 19722.6 25159.4 4449.2 9030.9 5888.4 Oct 9638.6 27334.7 1901.3 5372.5 19836.5 25209.0 4457.8 9207.8 6026.0 Nov 9840.9 27345.3 1901.3 5564.9 19872.7 25437.6 4491.8 9158.0 6029.2 Dec 9465.4 27527.2 1910.3 5625.0 20009.2 25634.2 4351.2 8917.5 6178.7 2011 Jan 9218.0 27579.0 1902.8 5543.4 19830.5 25373.9 4268.4 9057.4 6142.1 Feb 10957.8 27606.5 1912.3 6408.5 20572.5 26981.0 4372.8 9122.8 6153.8 Mar 10654.1 27670.9 1815.0 6442.3 20567.0 27009.4 4298.8 8831.8 6286.0 Apr 10950.6 27607.4 1899.7 6777.4 20301.6 27079.0 4352.4 9026.4 6289.2 May 10325.6 27522.4 1936.7 6867.2 20045.8 26912.9 3908.1 8963.7 6318.1 Jun 9595.0 27679.6 1936.7 6387.2 20064.4 26451.6 3711.1 9048.6 6305.9 End of MonthForeign Assets (Net)Claims on Private Sector(1) Claims on Gov.Money Supply(M2)(2) Government Deposits & AccountsOtherMoney (M1)Quasi - MoneyTotalNet (3) of which Capital & Reserve (1) Includes the balances of bonds issued against purchased debt, according to the provision of Law No. 41 of year 1993 and amendments thereof, and the balances of bonds issued against the purchase of the Real-Estate Portfolio of the Kuwait Finance House, which was fully repaid in August 2001.(2) Excluding Deposits against documentary letters of credit.(3) This item includes capital and reserve for the CBK in addition to shareholders' equity in local banks.Data as of : 14/07/2011

All data is the property of Central Bank of Kuwait.

http://www.cbk.gov.k...201106&tbl=RM01

[jg167]

Do we have any idea how many KD in circulation? Just wondering.

Their M2 is 26.4B KWD (compared to Iraq's 60T), money in circulation (M0) is only a bit over 1B I think, though the table doesn't actually call it M0 so maybe this is not quite the same. Here is the link from the central bank of Kuwait: http://www.cbk.gov.kw/WWW/index.html click on "money supply" table 02.

Kuwait's GDP is only $148B USD (world bank link http://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&met_y=ny_gdp_mktp_cd&idim=country:KWT&dl=en&hl=en&q=gdp+of+kuwait#ctype=l&strail=false&nselm=h&met_y=ny_gdp_mktp_cd&scale_y=lin&ind_y=false&rdim=country&idim=country:KWT&ifdim=country&hl=en&dl=en) so about 2x Iraq's GDP, but their M2 is 2,000x lower, so it is no mystery that the value of their dinars is 4000x higher than Iraq's.

[Quietlearner]

Their M2 is 26.4B KWD (compared to Iraq's 60T), money in circulation (M0) is only a bit over 1B I think, though the table doesn't actually call it M0 so maybe this is not quite the same. Here is the link from the central bank of Kuwait: http://www.cbk.gov.kw/WWW/index.html click on "money supply" table 02.

Kuwait's GDP is only $148B USD (world bank link http://www.google.co...ry&hl=en&dl=en) so about 2x Iraq's GDP, but their M2 is 2,000x lower, so it is no mystery that the value of their dinars is 4000x higher than Iraq's.

Jg167 Is kuwaits Dinar pinned to gold? and how does the recent pinning of the Iraq dinar at a rate of 2.4 grams per Iraq dinar figure into the potential RV of the Iraq Dinar? I have asked this question to both lopsters and Revers and neither parties will touch it. Any ideas on this. ?

[Carrello]

It really is to bad that Iraq will never be as strong as Kuwait.The only way to get there dinar even close is to LOP and cheat there way there.My concern from the begining was Iraq would change the curency all together to burn or cheat us out of what we had comeing to us.F Iraq my they all burn.

You had better get back on your meds before you hurt yourself or somebody else.

[jg167]

Jg167 Is kuwaits Dinar pinned to gold? and how does the recent pinning of the Iraq dinar at a rate of 2.4 grams per Iraq dinar figure into the potential RV of the Iraq Dinar? I have asked this question to both lopsters and Revers and neither parties will touch it. Any ideas on this. ?

No I think Kuwait pegs to the dollar. I have heard about the 2.4g of gold per dinar for Iraq but have never seen any documentation on it and it makes no sense to me. At $1500 USD/oz and 26g to the oz, then 2.4g of gold is $138 USD. That is wildly above the most optimistic post RV dreams for the value of the dinar. The world supply of mined gold is estimated to be about 10B oz or 260B grams or enough to back 108 B dinars at 2.4g/dinar, but there are trillions of dinars out, so this just doesn't add up in my view.

[Quietlearner]

It really is to bad that Iraq will never be as strong as Kuwait.The only way to get there dinar even close is to LOP and cheat there way there.My concern from the begining was Iraq would change the curency all together to burn or cheat us out of what we had comeing to us.F Iraq my they all burn.

Az Joe- Just curious as to why you believe Iraqs currency will never be as strong as Kuwaits- In recent months Iraqs growth curve and overall united pusuit of free enterprise, oil findings and overall willingness to make serious conscessions to obtain the "pie in the sky" I would think one would come up with a very different conclusion. Dont know how long you have been at this but you sound discouraged and burn out. I certainly understand this. Dance in the news and not in the rumors. Know you will realize the fruits in this situation, however, asses these morsels while watching the tree grow, not while watching it fall from said. " sorry, to much verbage, just keep your eye on the ball, its comming very very soon.

Thanks and hope you have a good day.

Respectfully,'

Queitleaner.

[jg167]

It really is to bad that Iraq will never be as strong as Kuwait.The only way to get there dinar even close is to LOP and cheat there way there.My concern from the begining was Iraq would change the curency all together to burn or cheat us out of what we had comeing to us.F Iraq my they all burn.

The metamorphosis of this issue is really amazing. We invent the idea of a 1000x RV despite this being essentially impossible for a functioning economy. We reinforce this idea with the aid of dealers until it becomes not merely a fact to many folks but something we are OWED. Then when it turn out the whole thing is false, the response is that we are being cheated. Humans are indeed strange creatures! Edited August 17, 2011 by jg167

[alston82]

So let me ask this question. Why are we talking about KUWAIT. It has nothing to do with IRAQ Nothing.

[tankdude]

Jg167 Is kuwaits Dinar pinned to gold? and how does the recent pinning of the Iraq dinar at a rate of 2.4 grams per Iraq dinar figure into the potential RV of the Iraq Dinar? I have asked this question to both lopsters and Revers and neither parties will touch it. Any ideas on this. ?

The Kuwait Dinar is pegged to a basket of currencies - this basket peg gives them some flexibility.

http://www.gulf-daily-news.com/NewsDetails.aspx?storyid=275269

As for the 2.4 gams - some people are using the rate of 42.22 per troy ounce based on "official" price of gold base on the last US Government valuations done in 1973, and what is supposedly is tied into the IMF rate (but I can't find any substantiating documentation) - which is where you get the prevalent rate of around $3.00.

http://www.munknee.com/2010/05/beware-official-u-s-government-price-for-gold-is-only-42-22oz/

So - doing the math based on this - 1 gram = 0.032 troy ounces. So 2.4 grams X 0.032 = 0.0768 troy ounce. $42.22 X 0.0768=$3.24

Hope this doesn't muddy the water even more - but this is my understanding of what many people are doing.

[HopefulTxn]

As for the 2.4 gams - some people are using the rate of 42.22 per troy ounce based on "official" price of gold base on the last US Government valuations done in 1973, and what is supposedly is tied into the IMF rate (but I can't find any substantiating documentation) - which is where you get the prevalent rate of around $3.00.

http://www.munknee.com/2010/05/beware-official-u-s-government-price-for-gold-is-only-42-22oz/

So - doing the math based on this - 1 gram = 0.032 troy ounces. So 2.4 grams X 0.032 = 0.0768 troy ounce. $42.22 X 0.0768=$3.24

Hope this doesn't muddy the water even more - but this is my understanding of what many people are doing.

People are getting the 2.4 grams from the old Iraq Central Bank Law of 1976, which was repealed by the current CBI Law of 2004. The issue is that Google Translate states that the 2004 law was repealed by the 1976 law, which makes no sense as it was created by the Baathist party, and the fact there is no mention of this going through Parliament, nor has the CBI changed what law they state they are using.

Original text on page: Link

ملاحظة: الغي هذا القانون بموجب قانون البنك المركزي العراقي رقم 56 لسنة 2004

Google's translation: Link

Note: This repealed the law under the Iraqi Central Bank Law No. 56 of 2004

Bing's translation: Link

Note: this Act was repealed by the Central Bank of Iraq Act No. 56 of 2004

There is no mention of using any weight of gold to derive the value of the IQD in the CBI Law of 2004. Link

[Captjohn]

So let me ask this question. Why are we talking about KUWAIT. It has nothing to do with IRAQ Nothing.

Where the issue of Kuwait comes from, and how it ties-in is based on Kuwait's statement to the Iraqis that when they RV'd, their price per dinar should be below the KWD. As it now trades at approx. $3.65 or so, that would peg the IQD at, say, $3.64 or less. That's assuming that the KWD doesn't revalue upward in the much-talked about world basket of currencies that is to revalue along with the IQD. Why the Kuwaitis would have any say on the price of the IQD goes back to the release from Chapter 7, war reparations, and the competition of national prides....Kuwait's in particular.

[Quietlearner]

People are getting the 2.4 grams from the old Iraq Central Bank Law of 1976, which was repealed by the current CBI Law of 2004. The issue is that Google Translate states that the 2004 law was repealed by the 1976 law, which makes no sense as it was created by the Baathist party, and the fact there is no mention of this going through Parliament, nor has the CBI changed what law they state they are using.

Original text on page: Link

ملاحظة: الغي هذا القانون بموجب قانون البنك المركزي العراقي رقم 56 لسنة 2004

Google's translation: Link

Note: This repealed the law under the Iraqi Central Bank Law No. 56 of 2004

Bing's translation: Link

Note: this Act was repealed by the Central Bank of Iraq Act No. 56 of 2004

There is no mention of using any weight of gold to derive the value of the IQD in the CBI Law of 2004. Link

You managed to find the repeal in 2004 however, you failed to post the recent signing back into law by Prime Minister Maliki. This was posted on this site several months ago. I will do the research and repost in current news events for all to see once again,

Quietlearner

[HopefulTxn]

You managed to find the repeal in 2004 however, you failed to post the recent signing back into law by Prime Minister Maliki. This was posted on this site several months ago. I will do the research and repost in current news events for all to see once again,

Quietlearner

There was no article or anything that stated the 1976 law was put back into effect. It was simply a post by someone, I want to say it was Breitling but not 100% sure, that stated they came across it in their research.

The problem is that Google Translate gives a bad translation on the text, based on the Parliament site not having any documentation on any such law change along with the CBI not changing their site to reflect the law in which they are governed by.

It also doesn't make sense that they would use a law that was written by the former regime, the Baathist party, rather than simply rewrite a new law.