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Dinar News CBI Govenor Says current Exchange Rate Reasonable


Jesse
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What happened to the study Maliki talked about? Surely, this was not their conclusion. Not only that but this cannot be for internationally traded Dinar???

This reminds me of Nick Saban saying, "I am NOT going to be Alabama's Head Coach." Then moves in the middle of the night to become Alabama's Head Coach. If this is a true statement by "Shubibi?" he just made Maliki look like a fool, and a know nothing, right before the elections. Again. I smell an RV on the horizon.

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CBI governor says current exchange rate reasonable

March 1, 2010 - 12:37:27

BAGHDAD / Aswat al-Iraq: The governor of the Central Bank of Iraq (CBI) on Monday said that the current exchange rate (1,170 Iraqi dinars per dollar) is reasonable, adding that the bank has enough foreign reserves to defend the exchange rate.

“The CBI is adopting a managed floating policy of exchange rate, through which a reasonable exchange rate is fixed,” Sanan al-Shubibi told Aswat al-Iraq news agency.

“The current exchange rate is reasonable and stable and can be defended by our vast foreign reserves, totaling $43 billion U.S. dollars at the moment,” Shubibi explained.

SS (P)

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Well I guess Adam's contact at the CBI doesn't know what his boss truly thinks... LOL. What a smokescreen, and for you skelly, I'm sure that there are folks who will buy your dinars, if you even have any, so that you will not be troubled by this investment.

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The current rate is essentially what it is worth ... plain and simple!

A managed floating policy of the exchange rate would let it stand on its own in the market and be valued accordingly.

All the talk of the rv coming in at $3.00 etc. was just to get people to buy in .... this situation is not even close to the situation with Kuwait or Germany following WWII. I have every confidence in an RV happening shortly after the elections and the violence that is almost assured to take place (no group likes losing), but I think it will come out very low and fluctuate with the free market.

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Get real people. The fat lady has sung. It's over. Sell you dinar while it is still worth something

Skelly,

Will you sell me your IQD's at the going rate - $900/million for uncirc & $725/million for circulated...??? I'm ready, let me know...!

RON ;)

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CBI governor says current exchange rate reasonable

March 1, 2010 - 12:37:27

BAGHDAD / Aswat al-Iraq: The governor of the Central Bank of Iraq (CBI) on Monday said that the current exchange rate (1,170 Iraqi dinars per dollar) is reasonable, adding that the bank has enough foreign reserves to defend the exchange rate.

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The current rate is essentially what it is worth ... plain and simple!

A managed floating policy of the exchange rate would let it stand on its own in the market and be valued accordingly.

All the talk of the rv coming in at $3.00 etc. was just to get people to buy in .... this situation is not even close to the situation with Kuwait or Germany following WWII. I have every confidence in an RV happening shortly after the elections and the violence that is almost assured to take place (no group likes losing), but I think it will come out very low and fluctuate with the free market.

I agree with you here!

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Do you realize that this is great news?! Really. I'm not hyping this at all. Look closely at what was said and take away your pesemistic thought s away from this. Shubibi says quote, "The CBI is adopting a managed floating policy of exchange rate, through which a reasonable exchange rate is fixed".

This means that they are looking to float a rate possibly to find out the try value of the dinar. The key words are "adoptinga managed floating policy". They are creating a action plan to revalue the currency! Floating a rate out on the market is opening it up to be traded internationally! That's great news my friends! Wooowhooo!

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

Wait and see what happens in themedia today and tomorrow. I've already posted a thread shwoing that www.Zawya.com has reposted the Miliki quotes from the 28th! This is a big news website for major business owners and if they get wind of this and other media sources start seeing these types of quotes being thrown around Iraqi officals and CBI, then CBI will have to explain themselves. The NBC's, ABC's, and Fox news networks are going to start questioning (researching) this, and then it's all over excpet the RVing!

So, sit back and enjoy the ride my friends!

So, it would appear that we need to be watching FOREX to see if, and when, the IQD is traded...! Then we can see how it floats on the open market. I still think Iraq must establish a new value first - far greater than the 1170, even though they just reaffirmed this rate. - IMHO

RON ;)

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Why would they redenominate their currency if this was an acceptable rate? This does not make any sense to me. I thought the reason for a redenomination was to make transactions easier. This news contradicts what we have already been told.

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A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to fluctuate according to the foreign exchange market. A currency that uses a floating exchange rate is known as a floating currency. It is not possible for a developing country to maintain the stability in the rate of exchange for its currency in the exchange market. There are two options open for them- [1] Let the exchange rate be allowed to fluctuate in the open market according to the market conditions, or [2] An equilibrium rate may be fixed to be adopted and attempts should be made to maintain it as far as possible. But, if there is a fundamental change in the circumstances, the rate should be changed accordingly. The rate of exchange under the first alternative is know as fluctuating rate of exchange and under second alternative, it is called flexible rate of exchange. In the modern economic conditions, the flexible rate of exchange system is more appropriate as it does not hamper the foreign trade. There are economists who think that, in most circumstances, floating exchange rates are preferable to fixed exchange rates. As floating exchange rates automatically adjust, they enable a country to dampen the impact of shocks and foreign business cycles, and to preempt the possibility of having a balance of payments crisis. However, in certain situations, fixed exchange rates may be preferable for their greater stability and certainty. This may not necessarily be true, considering the results of countries that attempt to keep the prices of their currency "strong" or "high" relative to others, such as the UK or the Southeast Asia countries before the Asian currency crisis. The debate of making a choice between fixed and floating exchange rate regimes is set forth by the Mundell-Fleming model, which argues that an economy cannot simultaneously maintain a fixed exchange rate, free capital movement, and an independent monetary policy. It can choose any two for control, and leave third to the market forces.

Where does anyone think Iraq falls according to this explanation? Are they a "developing country" that does not want to hamper its "foreign trade"? And do they truly want to be on par with the other GCC's? I would be interested in hearing someone's take who is familiar with these two routes of exchange and where they think Iraq fits in. Again, to me, I smell an RV. But would like to hear other educated comments.

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Sounds like a little political boxing match going on.... or all of this was planned out in advance to throw speculators off.

True Woody, however someone will be holding the IQD's that are out there - You, me, others, Ali, Ken Kuhn, et al...! The CBI won't be getting our IQD's, so it's still in thne hands of investors. I wonder how many IQD's were actually sold to investors - maybe 2 trillion (x Billions in USD)...! Keep The Faith -

Thanks,

RON ;)

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