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FLOATING DINAR RATE


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I've been lurking for 18 months and visit multiple times daily. The question i have is this. If the dinar rate was allowed to float, instead of being held at 1170/1, where would it be at now? Would it be 2000/1 or 100/1.?

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I've been lurking for 18 months and visit multiple times daily. The question i have is this. If the dinar rate was allowed to float, instead of being held at 1170/1, where would it be at now? Would it be 2000/1 or 100/1.?

HI!!! ummmm I don't really have anything of use to say about that, but wanted to say hi anyway! :D

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I've been lurking for 18 months and visit multiple times daily. The question i have is this. If the dinar rate was allowed to float, instead of being held at 1170/1, where would it be at now? Would it be 2000/1 or 100/1.?

The most recent statement by the CBI was they had enough foreign reserves to back the exchange rate 110%.

10% of 1170 is 117.

1170 - 117 = 1053

So, if the CBI insists on backing the exchange rate 100%, it could float to 1053:1 with the current foreign reserves.

If the amount of dinar in circulation was drastically reduced, they could let the rate increase by the ratio of reduction.

If the liability was reduced from 30 trillion to 30 billion, the rate could be increased 1000 times to equal 1.053 dinar per dollar.

All of this depends on a whole bunch of IFs, but that is the math, based on their past numbers and claims..

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The most recent statement by the CBI was they had enough foreign reserves to back the exchange rate 110%.

10% of 1170 is 117.

1170 - 117 = 1053

So, if the CBI insists on backing the exchange rate 100%, it could float to 1053:1 with the current foreign reserves.

If the amount of dinar in circulation was drastically reduced, they could let the rate increase by the ratio of reduction.

If the liability was reduced from 30 trillion to 30 billion, the rate could be increased 1000 times to equal 1.053 dinar per dollar.

All of this depends on a whole bunch of IFs, but that is the math, based on their past numbers and claims..

Man, that's some coincidence! -or not?

A follow-up question if I may. Is a floating currency limited to x many revaluations per year at no more than x percent increase per revaluation?

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I've been lurking for 18 months and visit multiple times daily. The question i have is this. If the dinar rate was allowed to float, instead of being held at 1170/1, where would it be at now? Would it be 2000/1 or 100/1.?

If the dinar rate was allowed to float ..... where would it be at now?

the Toilet ... LOL

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Man, that's some coincidence! -or not?

A follow-up question if I may. Is a floating currency limited to x many revaluations per year at no more than x percent increase per revaluation?

There are some guidelines imposed by the IMF that point in that direction.

How closely those guidelines are followed is the question.

The dinar is hard pegged to the dollar, and that sets the guidelines for Iraq as an IMF creditor.

2004/2005 era Document from IMF

You can look toward the middle of the page to see where Iraq was then listed. I don't know what, if any, changes have been made since then..

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There are some guidelines imposed by the IMF that point in that direction.

How closely those guidelines are followed is the question.

The dinar is hard pegged to the dollar, and that sets the guidelines for Iraq as an IMF creditor.

2004/2005 era Document from IMF

You can look toward the middle of the page to see where Iraq was then listed. I don't know what, if any, changes have been made since then..

In what I have learned Dalite is correct. I would like to add that Shabibi has said it will be a managed float. I think that is what they have now. He controls the value through the currency auctions.

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I've been lurking for 18 months and visit multiple times daily. The question i have is this. If the dinar rate was allowed to float, instead of being held at 1170/1, where would it be at now? Would it be 2000/1 or 100/1.?

2000 IQD to 1 USD would be my guess.

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2000 IQD to 1 USD would be my guess.

WOW! THAT MEANS THE VALUE IS GOING DOWN, BUT WHY? WHAT ABOUT THEIR ECONOMIC SITUATION, THIS WILL NOT HELP IN THEIR QUEST FOR ECONOMIC FREEDOM, A STRONG AND VITAL ARMED FORCES, EDUCATIONAL PURSUIT AND ALL THAT GOES WITH RVing. ONCE AGAIN ONE STEP FORWARD AND TWO STEPS BACK. AND YET! I AM PATIENT. GO RV! ;)

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