Iraqi Dinar Under Attack

[zigmeister]

I read an article earlier today that stated that Senator McCain stated that there might be a split forming 3 states in Iraq. We all know of the 3 fractions that are fighting within Iraq. This would make sense, and then with the talk of the above article concerning an attack on the currency, this has me a little scared with this investment. I don't want to be negative, but wow, there is a lot going on that doesn't really sound good. Is this smoke and mirrors or are these serious issues that may not be resolved for a long time? I would love to hear Adams thoughts on this. Hey, I am like all of you, I want to hear GOOD news.... but have to be realistic in what is going on.

Anyone on this forum that has expertise on all of the above, would love to hear from you.

I happen to agree with Adam Montana, he said there might be talk of dividing into three, but they all know, Iraq is much stronger as one, than 3 pieces.

Anyone mind if I drop this here?

The Syrian Pound and the Iranian Rial are probably crashing, especially with the news that Tokyo may suspend oil purchases from Iran, and the Arab League threatening Syria about their in house "cleansing".

Do you think that it's possible, that in a rush for hard currency, they are selling off their (possible) stashes of Iraqi Dinar for USD? I strongly guess, given their relations with Maliki, that if something IS coming with an RV, that they stockpiled a buttload of it.

If ol' Shabby is as smart as we think he is, don't you think he'd jump at the chance to suck up some of this "out of country" dinar? Could this be why they're dragging this thing out a bit, under the guise of "political differences" (smoke!)?

The auction was still up there today. It might be to suck that dinar out from under Iran. Just a thought. I haven't a clue but a possible scenario.

[Sanssouci]

Anyone mind if I drop this here?

The Syrian Pound and the Iranian Rial are probably crashing, especially with the news that Tokyo may suspend oil purchases from Iran, and the Arab League threatening Syria about their in house "cleansing".

Do you think that it's possible, that in a rush for hard currency, they are selling off their (possible) stashes of Iraqi Dinar for USD? I strongly guess, given their relations with Maliki, that if something IS coming with an RV, that they stockpiled a buttload of it.

If ol' Shabby is as smart as we think he is, don't you think he'd jump at the chance to suck up some of this "out of country" dinar? Could this be why they're dragging this thing out a bit, under the guise of "political differences" (smoke!)?

I don't mind. I think you paint a very plausible scenario.

[Carrello]

Seriously? Dude you made the wrong decision....this isnt for everyone....but it appears you just like to argue

I agree with you. Lots can stretch a conversation into the next month, over and over and over........

[cbs71]

I was told at least another year as well...more than likely the tail end of 2013. This came from my sister who is senior vice president of a large bank in San Antonio, Texas. No one anticipates it before then. Wish it were different though.

No disrespect, but bankers don't have a clue either...

[Carrello]

Anyone mind if I drop this here?

The Syrian Pound and the Iranian Rial are probably crashing, especially with the news that Tokyo may suspend oil purchases from Iran, and the Arab League threatening Syria about their in house "cleansing".

Do you think that it's possible, that in a rush for hard currency, they are selling off their (possible) stashes of Iraqi Dinar for USD? I strongly guess, given their relations with Maliki, that if something IS coming with an RV, that they stockpiled a buttload of it.

If ol' Shabby is as smart as we think he is, don't you think he'd jump at the chance to suck up some of this "out of country" dinar? Could this be why they're dragging this thing out a bit, under the guise of "political differences" (smoke!)?

Would this be an opportunity to cut off out-of-country cash-in in an effort to disallow terrorists from cashing-in, or a very short cash-in period? Just a thought.............maybe I should get my passport renewed, polish the camel, and bling the burka.

No disrespect, but bankers don't have a clue either...

A banker got me into this. He still doesn't know squat. He comes to me for info.

[Sanssouci]

Would this be an opportunity to cut off out-of-country cash-in in an effort to disallow terrorists from cashing-in, or a very short cash-in period? Just a thought.............maybe I should get my passport renewed, polish the camel, and bling the burka.

I don't know, Carrello. Am I right in thinking that as long as the IMF is involved we don't need to worry about an in-country-only cash-in?

[Carrello]

I, for one, am most disturbed to hear that the Dinar is under attack. I want Iraq to succeed. Therefore, I am willing to make a sacrifice and commitment of supporting Iraq in shoring up their Dinar and will let them buy mine back at a bargain basement price of 1:1 for USD. Plus, as an added bonus, my Dinar are not worn out and can be put back into circulation without the added cost of destroying them and reprinting.

What a guy! Sacrifice for the greater good. Commendable.

I don't know, Carrello. Am I right in thinking that as long as the IMF is involved we don't need to worry about an in-country-only cash-in?

Thank you. I lost my head. It was the camel's fault. I owe you a drink in Las Vegas.

[Sanssouci]

Thank you. I lost my head. It was the camel's fault. I owe you a drink in Las Vegas.

Deal.

[vomer]

Another friggin year.

[JWJW11]

Another friggin year.

You should really read the 3 stage article to exchange to be completed by end of 2012

[sonny1]

DUHHHH

Is the CBI thick or am I missing something.

Just stop auctioning the bloody dollar & RV that way they will hold a shed load of $s, huge reserves to back the RV & once again Iraq will be on par with the neighbouring countries in the surrounding area

n/s if its that big of an issue, just stop auctioning your money.......there story isnt adding up.......but it never does iraq has a motive behind the auctions........suck dinar back in.......take as much off the streets as they can......rv..........its pretty clear........how is this negative people........if it were hurting them dont you think they would stop the damnnnn auctions........use your head people

[Sanssouci]

n/s if its that big of an issue, just stop auctioning your money.......there story isnt adding up.......but it never does iraq has a motive behind the auctions........suck dinar back in.......take as much off the streets as they can......rv..........its pretty clear........how is this negative people........if it were hurting them dont you think they would stop the damnnnn auctions........use your head people

Which brings us right back to the point I made earlier. Listen up, doubting Thomases: SMOKE AND MIRRORS.

[cbs71]

Would this be an opportunity to cut off out-of-country cash-in in an effort to disallow terrorists from cashing-in, or a very short cash-in period? Just a thought.............maybe I should get my passport renewed, polish the camel, and bling the burka.

A banker got me into this. He still doesn't know squat. He comes to me for info.

:lol: point taken

[keepmwlknfny]

Am I right in thinking that as long as the IMF is involved we don't need to worry about an in-country-only cash-in?

I wish....many member countries with the IMF have done in country exchanges only.....its always something to keep in the back of your head! Def cant rule that possibility out....even the last time Iraq exchanged the currency in 2003/04 it was in country only.....

Rising demand for dollars “is affecting our dollar-sale auction,” Salih said. “This isn’t in the interest of the Iraqi economy and it will suck foreign currency reserves … A lot of money in dollars and also deposits which are supposed to be invested in Iraq are being exchanged to U.S. dollars to fund the trade in neighboring countries.”

Sonny1 this is the bad part.....if it keeps on the way things are going it will only hurt the dinar....just like the title of the article is mentioning....it will be taking steps backwards instead of forward....

[Sanssouci]

I wish....many member countries with the IMF have done in country exchanges only.....its always something to keep in the back of your head! Def cant rule that possibility out....even the last time Iraq exchanged the currency in 2003/04 it was in country only.....

How intimately was the IMF involved then?

Rising demand for dollars “is affecting our dollar-sale auction,” Salih said. “This isn’t in the interest of the Iraqi economy and it will suck foreign currency reserves … A lot of money in dollars and also deposits which are supposed to be invested in Iraq are being exchanged to U.S. dollars to fund the trade in neighboring countries.”

Sonny1 this is the bad part.....if it keeps on the way things are going it will only hurt the dinar....just like the title of the article is mentioning....it will be taking steps backwards instead of forward....

I think we all (well, most of us anyway) understand that there is a breaking point. But something has to be exchanged for the dinar that the CBI draws in. Do they not have reserves of also the Euro and the GBP? One wonders why those would not be in comparable demand to the USD. Or is it only about the petro-dollar?

Edited January 13, 2012 by Sanssouci

[Snatcher]

The OP's title is misleading...The article says nothing about "Iraqi Dinar Under Attack" It states that

The Iraqi Central Bank (ICB) said it’s under a “currency attack” as traders buy U.S. dollars in daily auctions and resell them on the black market in Syria and Iran, which face hard currency shortages due to sanctions, according to a report from Bloomberg.

Rising demand for dollars “is affecting our dollar-sale auction,” Salih said. “This isn’t in the interest of the Iraqi economy and it will suck foreign currency reserves.

so all the debate about smoke and mirrors really doesn't matter here. This article is about Iraqi US Dollar reserves being depleted by Syria and Iran, trying to work around US santions to get cash to survive...

[Sanssouci]

so all the debate about smoke and mirrors really doesn't matter here. This article is about Iraqi US Dollar reserves being depleted by Syria and Iran, trying to work around US santions to get cash to survive...

The Iraqi dinar is "under attack" by virtue of its low demand as opposed to the dollar. Some of us think it is smoke and mirrors because (we think) the CBI is manufacturing this "crisis" in order to draw in dinars.

Edited January 13, 2012 by Sanssouci

[fnbplanet]

Would this be an opportunity to cut off out-of-country cash-in in an effort to disallow terrorists from cashing-in, or a very short cash-in period? Just a thought.............maybe I should get my passport renewed, polish the camel, and bling the burka.

IMO,

This is an example of what they have been referring to as "money laundering". Syria and Iran's currencies are really taking a dive, and have been for some time now. They have infiltrated Iraq's banks and they own dinar. They need USD, Euros and Yen - but mostly, they want USD (they'll never admit it though) to save the value of their money/currency just like you or I would buy gold, as a hedge on inflation. They smuggle this dinar (and small amounts of Iranian Rials and Syrian Pounds) into Iraqi banks, and the banks sell it to the CBI at auctions (where they make money on the spread) and buy USD.

Iran, I believe, has plans to LOpp (4 to 6 zeroes?) this coming year also, around April. The opportunity for the CBI is to get these out-of-country dinars out of circulation (and away from the terrorists, who originally had other plans for them post RV), killing two camels with one AK47. There has been a "blind eye" to these banks from the Iraqi government, as Iran and Syria are Shiite-friendly partners in crime.

Shabs knows, but he's getting something out of this too. His precious dinar is growing in value. The problem is, all has been accelerated by sanctions, and Syria's and Iran's leaders acting madder than hatters lately - probably causing a little run on the CBI reserves because of a lack of confidence in Iraq's government (and don't let them tell you it's any other reason!). All three countries have this in common right now:

1. Their leaders have been doing very stupid things lately.

2. Their people lack confidence in them.

3. Lack of confidence in governments is lack of confidence in currencies.

4. Lack of confidence in currencies drops their value (inflation).

5. People with no faith in a currency, look for safe harbor.

6. Safe harbor to them is USD, Yen, Gold.

Furthermore, I believe that anything above $140-$160 million USD sold at auctions, may possibly be used to retire dinar. The base is to balance USD in for oil against dinar needed for intracountry useage. There can't be much left on the street, and I'd bet that 40% of street cash being USD is a gross underestimation (propaganda).

[Snatcher]

The Iraqi dinar is "under attack" by virtue of its low demand as opposed to the dollar. Some of us think it is smoke and mirrors because (we think) the CBI is manufacturing this "crisis" in order to draw in dinars.

Not stated in the article...It is only speaking of dollar sales being purchased in the daily auctions and ship accross the borders. It says nothing about the Demand for Dinar or what's being purchased and traded in country. So how does one truely know the amount of dinar being purchased and traded from the OP's post?

Edited January 13, 2012 by Snatcher

[Sanssouci]

IMO, This is an example of what they have been referring to as "money laundering". Syria and Iran's currencies are really taking a dive, and have been for some time now. They have infiltrated Iraq's banks and they own dinar. They need USD, Euros and Yen - but mostly, they want USD (they'll never admit it though) to save the value of their money/currency just like you or I would buy gold, as a hedge on inflation. They smuggle this dinar (and small amounts of Iranian Rials and Syrian Pounds) into Iraqi banks, and the banks sell it to the CBI at auctions (where they make money on the spread) and buy USD.

Iran, I believe, has plans to LOpp (4 to 6 zeroes?) this coming year also, around April. The opportunity for the CBI is to get these out-of-country dinars out of circulation (and away from the terrorists, who originally had other plans for them post RV), killing two camels with one AK47. There has been a "blind eye" to these banks from the Iraqi government, as Iran and Syria are Shiite-friendly partners in crime.

Shabs knows, but he's getting something out of this too. His precious dinar is growing in value. The problem is, all has been accelerated by sanctions, and Syria's and Iran's leaders acting madder than hatters lately - probably causing a little run on the CBI reserves because of a lack of confidence in Iraq's government (and don't let them tell you it's any other reason!). All three countries have this in common right now:

1. Their leaders have been doing very stupid things lately.

2. Their people lack confidence in them.

3. Lack of confidence in governments is lack of confidence in currencies.

4. Lack of confidence in currencies drops their value (inflation).

5. People with no faith in a currency, look for safe harbor.

6. Safe harbor to them is USD, Yen, Gold.

Furthermore, I believe that anything above $140-$160 million USD sold at auctions, may possibly be used to retire dinar. The base is to balance USD in for oil against dinar needed for intracountry useage. There can't be much left on the street, and I'd bet that 40% of street cash being USD is a gross underestimation (propaganda).

Very fine analysis.

[AK47]

We still have a whole lot of year left!!!!! Many things are and will happen...Go RV!

ps...You can sure tell that people are getting frustrated and anxious by their negative outlook, and negative comments...have faith and remember the glass as half full!!!!! It WILL happen

[Abarvets]

Just as long as it RV's before I enter my master's program (which cost a lot!!!) I'll be good

THIS is the day the Lord has made... not tomorrow or some random date in 2013, but TODAY.

Go RV

Cole Pruitt let me say 2 words that has helped many through grad school.

graduate assistant

Look into one. Experience, paid education, books, and stipend depending on the University.

[zul]

Not stated in the article...It is only speaking of dollar sales being purchased in the daily auctions and ship accross the borders. It says nothing about the Demand for Dinar or what's being purchased and traded in country. So how does one truely know the amount of dinar being purchased and traded from the OP's post?

The dollar sales is being paid with dinar...and with more than 1 billion sales of USD per week, that says a lot about the demand for dinar.

[E. 1999]

The dollar sales is being paid with dinar...and with more than 1 billion sales of USD per week, that says a lot about the demand for dinar.

I was thinking the same thing

[RVInvestor]

The OP's title is misleading...The article says nothing about "Iraqi Dinar Under Attack" It states that

The Iraqi Central Bank (ICB) said it’s under a “currency attack” as traders buy U.S. dollars in daily auctions and resell them on the black market in Syria and Iran, which face hard currency shortages due to sanctions, according to a report from Bloomberg.

Rising demand for dollars “is affecting our dollar-sale auction,” Salih said. “This isn’t in the interest of the Iraqi economy and it will suck foreign currency reserves.

so all the debate about smoke and mirrors really doesn't matter here. This article is about Iraqi US Dollar reserves being depleted by Syria and Iran, trying to work around US santions to get cash to survive...

Well said IMO. Exactly what I was thinking.