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LOLOLOL
You say... "It's simply not possible to pump, or bash, a currency."... and then make a remark about MY IQ.
Thanks for the laugh.
Kuwait had less than 400 million dinars at the time. Yes, less than 400 million. Saddam stole billions of dinars from the central bank. That drove down the street price, the official rate never changed, bank accounts remained stable, it was only the cash on the street...so some people panicked and traded their dinar for a lower rate. As soon as the war was over, Kuwait isssued a new currency and checked the serial number on every single dinar exchnaged. They honored none of the dinar stolen by Saddam. They started with less than 400 million, and finished with less than 400 million.
Iraq on the other hand... they had 20 billion at one time and now have over 35 trillion.... MASSIVE difference.
What happened in Kuwait has NOTHING to do with what's happening in Iraq. Totally different situations.
Money supply continues to grow despite the pumpers lies.
http://www.cbi.iq/xl&wr/key%20financial.xls
End of Feb. 2009.
M2.........37.654 Trillion dinar
M1.........30.416 Tillion dinar
Deposit components of the M2........17.724 Trillion dinar
Currency outside banks..................19.930 Trillion dinar
CBI net assets...............................42.971 Trillion dinar
M2 was 25.349 trillion Feb 2008 and 37.654 trillion Feb 2009. Thats a increase of 12.305 trillion dinar or ~ 33% in a year.
That's quit an increase all while being told by the pumpers that it was being reduced.
It means nothing. It's business as usual.
They have been running these exact same articles for years now. It will say down one time, then up the next.
Why would they care one bit? A lop is monetarily neutral. There is no gain or loss.
It is practically a non event. That's why countries have done it over 70 times in recent history and most people have no knowledge of lop, because it’s not a big deal.
Maybe you can explain how if I was going to open a business in Iraq... why would I care if they lop there currency?
LOL..They would have a good feeling about hemorrhoids.
From the Central Bank of Iraq...
Central bank of Iraq invites all bureaus and specialized professional companies to participate in the above tender to supply machines for currency cancellation, according to the conditions and specifications that can be obtained from the General Contracts Division, within twenty eight days from the date of publishing this announcement
They are doing exactly what they have said they would do. The rate is not moving because inflation is under control. They have been saying for years now they were increasing the exchange rate to offset inflation. Inflation is now very low, so they are leaving the rate as is. If inflation comes back, they will be able to increase the rate a again.
Learning Markets, Forex. Dinar Scam.
http://www.learningmarkets.com/index.php/200904141921/Forex/Forex-Getting-Started/the-iraqi-dinar-scam-part-one.html
Currency in circulation about to break 20 trillion.
http://www.cbi.iq/xl&wr/key%20financial.xls
Line 65… currency outside banks. 19.931 Trllion as of Feb.
M1=29 Trllion
M2=36 Trillion
The currency auctions are not buying back more than they are putting out for the budget and other expenditures. The numbers continue to grow despite the buy back as common sense would indicate.
Technically you are correct. The dinar is currently on a "managed float"
Which means... "the position when the exchange rate of a country's currency is influenced by government action in the foreign exchange market"
Iraq controls the rate through the auctions. They buy back tons of currency to keep inflation under control. If they allowed the money supply to grow out of control inflation would be out of control.
I just posted an article recently where they talked about ending the auctions and officially pegging the dinar
The dinar is backed by foriegn currency reserves and a little gold. Their foriegn currency reserves are dollars. So if the dollar devalues then the dinar devalues. That is how pegged currencies work.
LOL... there are about 100 currencies pegged to the dollar. Can you tell me ONE that moves when the dollar changes?
Your question is silly and shows you have not even the most basic of undestanding of what pegged means.
Once the auctions stop, and they officially peg the currency… say they peg it at 1100:1. That should end this scam of a huge RV. But I’m sure many will keep the faith.
Once again. How many times do you have to be proven wrong?
It specifically talks about the article you quote. It specifically says it is a lie.
http://www.cfr.org/publication/17512/minister_says_iraq_has_no_budget_surplus_worries_over_reconstruction.html
Americans are looking for an answer on the question of Iraqi surplus money. The figure of $79 billion, as reported in an August 2008 U.S. General Accountability Office report, was cited by Senator Obama in his debate with Senator McCain on Tuesday. Why is the U.S. spending so much in Iraq while there is such a huge Iraqi surplus?
This number is not accurate at all. We have at the DFI fund [Development Fund for Iraq] an amount that is not exceeding $22 billion. And this amount is allocated for the supplemental budget for 2008. In this regard there is no surplus. The surplus is only at the Central Bank of Iraq, and it is needed for supporting the Iraqi currency, and it does not exceed $30 billion. It is not surplus; it is the federal reserve. It is the reserve of Iraq. That means we cannot have a fixed currency without it.
They had a supplemental budget at the end of 2008 and spent the surplus.
The other $30 billion is what is held at the CBI to support the 30 trillion dinar.
They are now going to run a deficet.
That is a lie, and I have explained it to you before and you just ignore it.
The surplus was spent in a supplemental 2008 budget.
The rest of what they called a surplus is the foreign currency reserves that are used to back to dinar.
Here is a new article today where they say it will be a disaster for the dinar if they spend the currency reserves.
I don’t expect it to keep you from lying to the board… but they at least should be aware that you are indeed lying, so here’s the article.
http://translate.google.com/translate?hl=en&ie=UTF8&langpair=ar%7Cen&u=http://radionawa.com/(X(1)A(n5k9Lr7cyQEkAAAAZDk3ZmJkOTktMDk2OS00NDQ1LTliN2YtNjFiYzQyMmRlZDlk_eu0VuQ9mwpVUxwspKH7fohyo_E1))/Ar/NewsDetailN.aspx%3Fid%3D35349%26LinkID%3D105
Warned the Central Bank of Iraq to finance government investment projects, saying it will have serious consequences on the external economic balance and lose the country's defense force for economic stability.
He criticized the bank in an official statement, received a copy of the NOAA Radio, "what he called the allegations made by the local community to put the blame on the monetary policy of the Central Bank with regard to hyper-inflation and the deterioration of the exchange rate of the dinar, saying" Gabip the force of the Iraqi dinar is strong and is now better.
A source authorized in the bank, told a news briefing that "those circles with the monetary policy and its successes are responsible for stalling the country's investment programs and the ability to build development projects that have reached their targets in reducing the rates of inflation by a large margin.
The source said that the financing of investment projects of different government takes over serious consequences for the external economic balance, the country loses its force and the defense of the entire economic stability, as well as weaken the ability of monetary policy in the protection of the national currency and re-entering the failures caused by the deterioration of inflation, exchange rates and with a sudden high waves imbalances Foreign Affairs.
"The monetary policy of the Central Bank allowed the country's stability and to meet its cash-and-wave activity after the inflationary significant improvement in the exchange rate of the dinar. The Gabip force of the Iraqi dinar is strong, it is now the best in the evolution of monetary savings and financial intermediation and the proper and appropriate way to address the phenomenon of inflationary expectations .
2004. He pointed out that "In spite of a high interest rate the central bank in accordance with the purposes of monetary policy, but the energy credit (loans granted to citizens of cash) has risen to more than nine times since the beginning of the year 2004.
He considered, "the source address and then, the successes of the powerful over the monetary policy in the implementation of its Alastaqrari inflation and interest rates the same signal, that is designed to cover up the failure of programs and many government policies, low capacity in the conduct of their material in exchange for development projects and reconstruction."
"$1 to $1.5 Billion USD buy back"... really... never heard that before... lol.
Or... they just renew the SBA for another year and do nothing.
Because of great oil prices they never needed the money available to them through the SBA for the last 3 years... with oil prices down and a big budget deficit staring them in the face... they may want the SBA money available to them for the next year.
Something will happen soon... not sure what... but the next month or so might tell a lot.
The Stand By Arrangement with the IMF ends on Wed. the 18th.
And this was out the other day...
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://radionawa.com/(X(1)A(8ETSiDjbyQEkAAAANzUxMWFkOWQtNGQyYi00YmFhLWE4NDQtZDYzYzdjY2YwY2Fii4sCeC29HzD1c3DhKfmXJV8hRFw1))/Ar/NewsDetailN.aspx%3Fid%3D35032%26LinkID%3D105
Parliament is likely to halt the Policy of the Central Bank's daily Auction of Dollars...
So much for that buy back program.
Would they drop the budget to zero during those 18 months?
Would they stop all government spending. No salaries for gov employees, no social programs, no construction projects, no spending at all. That might upset the populace. Plus... they can only buy back what currency is offered, how do they force people to sell back, especially the trillion held by foreign speculators.
LOL... stop spending, take all the dinar away from the Iraqis, then RV making foreigners rich... yeah, that's the plan.
He might answer… lol… but it will be more gibberish.
He has NO CLUE what a tight or loose monetary policy even means.
He has no clue what a floating or fixed/pegged exchange rate means.
It’s like having a discussion with a 4 year old. He just make stuff up.
Everyone knows they are buying back currency. But most people are ALSO aware that they are buying it back and reusing it to fund the budget. Over the last 5 years, Iraq has spent way over 100 trillion dinars for their budgets. The M2 is only 35 trillion now. Obviously they have been buying money back and recycling it or the M2 would be over 100 trillion by now.
It seems so simple to understand.
LOL... What does that mean??
Iraqi Dinar is being RECYCLED by $1.5B USD/month on the open market by the CBI.
That would be a factual statement.
A recent statement from Shabs...
http://www.bi-me.com/main.php?id=328...c=33&cg=4&mset=
IRAQ. A slump in oil prices, the result of slowing crude demand caused by the global financial crisis, has left Iraq short of money to rebuild its infrastructure after years of war, economic sanctions and violence, Iraq’s central bank governor said.
“It has a large influence on us as a result of slumping [oil] prices caused mainly by the current financial crisis,” Sinan al-Shabibi told Dow Jones Newswires in an interview in Amman, Jordan late on Saturday night.
Iraq, which derives more than 95% of its revenues from oil, earned only US$1.8 billion last month from oil sales compared with almost US$7 billion last July when oil prices peaked at a record US$147 a barrel.
The country, in dire need of cash to rebuild its infrastructure after the debilitating impact of war, economic sanctions and sectarian violence, has to cut its 2009 budget to US$58.9 billion, from US$80 billion.
But al-Shabibi said that his country hasn’t been hurt by the other symptom of the financial crisis - deteriorating bank credit - due to its relative financial isolation and undeveloped banking system.
The governor said the central bank has plans to improve Iraqi state-run and private banks, which have yet to meet international standards of operation.
“There is a large programme to improve our banks especially the private banks,” said al-Shabibi.
Recently the central bank, for the first time in years, authorised the country’s private banks to handle international payments and foreign currency letters of credit worth up to US$4 million each from only US$1 million in 2008.
Most of the letters of credit used to be handled by the state-run Trade Bank of Iraq (TBI), he said. Private banks need to exert more efforts to widen their trade and financial businesses, he added.
Iraqi private banks, which number about 30, still lack an effective cross-border payment capability and most of these institutions are relatively small and can only support limited amounts of commercial trade businesses.
Al-Shabibi said the central bank has managed to reduce core inflation to 9.2% currently, from a record high of 34% in 2006.
“We are planning to reduce that inflation percentage further to a certain level that would improve the purchasing power of the Iraqi currency,” he added.
Al-Shabibi admitted that the central bank had pursued a very strong monetary policy over the last few years in order to curb core inflation which reached 70% during former Iraqi leader Saddam Hussein’s regime.
“Our monetary policy used to be very strict but now we have eased it as inflation has dropped,” he said.
Al-Shabibi said the central bank has adopted a policy to boost Iraq’s currency, the Dinar. The Dinar has risen over the last few months to a record high against the US Dollar, thanks to trading by the central bank at its daily auction.
The Iraqi Dinar was trading Sunday at 1,170, after trading at around US$1,500 per dollar for almost three years after the US invasion. Before the war, the Sinar was trading at around 2,000 to 2,500 per dollar. The central bank sells an average of US$50 million to US$60 million every working day in Baghdad to private and state-run banks.
If you understood the basics of what you pretend to know, you would understand.
http://www.cbi.iq/xl&wr/key%20financial.xls
Look near the top… all those interest rates listed… they are all dropping.
That is evidence of a loosening of the monetary policy. Now then… with rates still around 13-14 percent, that is still probably considered a tight monetary policy rate… but those rates are down from 20-21 percent.
When interest rates are dropping… that by definition means a loosening of monetary policy.
It is econ 101... Very basic. A high school econ class would teach that.
http://wps.aw.com/wps/media/objects/1001/1025108/notes/umenotes14.pdf
The Fed has at its disposal a number of
tools that it can use to engage in
monetary policy. We will study:
– Open market operations
– The discount rate
– Reserve requirements
So in Iraqs case, the open market operations would be the auctions. They continue to do the auctions so no change there.
The discount rate, they have lowered it. That is loosening.
Reserve requirements, they have lowered it, That is loosening.
If they stop the tight monetary policy, that does not mean the value will be free floating.
It will still be a pegged currency.
The difference will be the supply could grow too fast, causing inflation. They would still have to defend the peg, and they might be forced to lower the value of the dinar.
Pure nonsense.
First… Iraq has loosened monetary policy recently. The evidence of that is the lowering of interest rates.
Second… Their current money supply (m2 x exchange rate) is perfectly in line with the other middle east neighbors when compared to GDP. How you continue to ignore that FACT amazes me.
Third… the Iraqi dinar will never be allowed to float. No oil producing country does that. Every OPEC country has a pegged currency. So yes… the Gov controls the rate… but no more than any of the 100’s of other countries out there that have a pegged currency.
But the exact opposite is true. They used lowering of the rate as a tool to lower inflation. As inflation has come under control they have slowed the rate of increase, and since inflation fell under 10%... I don't think they have changed the rate once since then.
Global crisis hits Iraq rebuilding plan: C bank
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=277498&version=1&template_id=48&parent_id=28
The central bank has managed to reduce core inflation to 9.2% from a record high of 34% in 2006
Dow Jones Newswires/Amman
A slump in oil prices, the result of slowing crude demand caused by the global financial crisis, has left Iraq short of money to rebuild its infrastructure after years of war, economic sanctions and violence, Iraq’s central bank governor said.
“It has a large influence on us as a result of slumping (oil) prices caused mainly by the current financial crisis,” Sinan al-Shabibi told Dow Jones Newswires in an interview in Amman, Jordan late Saturday night.
Iraq, which derives more than 95% of its revenues from oil, earned only $1.8bn last month from oil sales compared with almost $7bn last July when oil prices peaked at a record $147 a barrel.
The country, in dire need of cash to rebuild its infrastructure after the debilitating impact of war, economic sanctions and sectarian violence, has to cut its 2009 budget to $58.9bn, from $80bn.
But al-Shabibi said that his country hasn’t been hurt by the other symptom of the financial crisis - deteriorating bank credit - due to its relative financial isolation and undeveloped banking system.
The governor said the central bank has plans to improve Iraqi state-run and private banks, which have yet to meet international standards of operation.
“There is a large programme to improve our banks especially the private banks,” said al-Shabibi.
Recently the central bank, for the first time in years, authorised the country’s private banks to handle international payments and foreign currency letters of credit worth up to $4mn each from only $1mn in 2008.
Most of the letters of credit used to be handled by the state-run Trade Bank of Iraq (TBI), he said. Private banks need to exert more efforts to widen their trade and financial businesses, he added.
Iraqi private banks, which number about 30, still lack an effective cross-border payment capability and most of these institutions are relatively small and can only support limited amounts of commercial trade businesses.
Al-Shabibi said the central bank has managed to reduce core inflation to 9.2% currently, from a record high of 34% in 2006.
“We are planning to reduce that inflation percentage further to a certain level that would improve the purchasing power of the Iraqi currency,” he
added.
Al-Shabibi admitted that the central bank had pursued a very strong monetary policy over the last few years in order to curb core inflation which reached 70% during former Iraqi leader Saddam Hussein’s regime.
“Our monetary policy used to be very strict but now we have eased it as inflation has dropped,” he said.
Al-Shabibi said the central bank has adopted a policy to boost Iraq’s currency, the dinar. The dinar has risen over the last few months to a record high against the dollar, thanks to trading by the central bank at its daily auction.
The Iraqi dinar was trading Sunday at 1,170, after trading at around $1,500 per dollar for almost three years after the US invasion. Before the war, the dinar was trading at around 2,000 to 2,500 per dollar. The central bank sells an average of $50mn to $60mn every working day in Baghdad to private and state-run banks.
History lesson...
Look at the second chart down this page.
http://en.wikipedia.org/wiki/Least_valued_currency_unit
Historical least valued currencies
Iraq could be on that list right now with their rate.
Those are the historically lowest currencies ever… about 50
Looks like about 40 of them issued a new currency and lopped.
A few DEVALUED further.
A few did nothing.
Guess how many had a big… or even small RV…. NONE.
It doesn't happen.
Then why would you not call out Rasica for posting pure crap.
My post isn't related to the lop... other than Iraq is in a world of hurt financially right now and a huge RV is out of the question....
I'll post a good lop post for you... give me a second to come up with something.
There is no surplus.
http://www.cfr.org/publication/17512/minister_says_iraq_has_no_budget_surplus_worries_over_reconstruction.html
Americans are looking for an answer on the question of Iraqi surplus money. The figure of $79 billion, as reported in an August 2008 U.S. General Accountability Office report, was cited by Senator Obama in his debate with Senator McCain on Tuesday. Why is the U.S. spending so much in Iraq while there is such a huge Iraqi surplus?
This number is not accurate at all. We have at the DFI fund [Development Fund for Iraq] an amount that is not exceeding $22 billion. And this amount is allocated for the supplemental budget for 2008. In this regard there is no surplus. The surplus is only at the Central Bank of Iraq, and it is needed for supporting the Iraqi currency, and it does not exceed $30 billion. It is not surplus; it is the federal reserve. It is the reserve of Iraq. That means we cannot have a fixed currency without it.
They had a supplemental budget at the end of 2008 and spent the surplus.
The other $30 billion is what is held at the CBI to support the 30 trillion dinar.
They are now going to run a deficet.
Real Budget news... not made up jibberish.
http://news.yahoo.com/s/afp/20090305/wl_mideast_afp/iraqeconomypoliticsbudget_20090305170524
Iraq's parliament on Thursday adopted a 58.9 billion-dollar budget for 2009 after slashing billions off government spending plans because of weak oil prices.
Your disingenuousness knows no bounds. Either that or you are the only person on earth that doesn’t know that oil prices have plummeted in the last 6 months and Iraq is in a world of hurt financially.
How about some recent relevant info.
http://www.upi.com/Emerging_Threats/2009/03/04/Iraq_needs_lean_budget_as_economy_falters/UPI-98791236200155/
Iraq needs lean budget as economy falters
Baghdad has put a $62 billion budget before the Iraqi Parliament, but some lawmakers raised objections to that figure, saying they face a $30 billion deficit in the volatile global economy.
http://www.menafn.com/qn_news_story_s.asp?StoryId=1093236517
Iraq may slash 2009 budget, 3rd time.
There have been literally hundreds of articles out talking about Iraq’s financial problems since oil prices have dropped… yet you continue to push old information.
You claim that "This M2 is a simple and artificial summary of (In House) values to help control inflation"... is pure gibberish. It's laughable that you write a sentence like that and expect people to believe it.
Iraq money supply is ABSOLUTLY tied to GDP and to claim otherwise is ludicrous. Their numbers fit perfectly with the other countries.
You are simply making stuff up and or blatantly lying... and it's obvious you have a vested interest in pumping the dinar.
You guys have to stop thinking about the value of the oil in the ground and thinking it has anything to do with currency value... it doesn't.
You also have to stop thinking about exchange rate... it is pretty irrelevant. You have to multiply the rate by the m2 and come up with a dollar value for their money supply.
I did that for every GCC country and compared it to their GDP.
Money supply value is VERY related to size of economy. It makes perfect sense. The bigger the economy, the more money needed. That’s why the US, China, Japan, the EU countries combined… they have huge money supplies because they have huge economies.
Iraq has a tiny economy. There money supply as it is fits perfectly with the other countries.
SA has 1st GDP, 382B… and 1st money supply $240B
UAE is 2 GDP, 190B… and 2 money supply, $220B
Kuwait 3 GDP, 115B… and 3 money supply, $77B
Qatar is 4 GDP,73B… and 4 money supp, $41B
Iraq is 5 in GDP, 50B… and 5 money supply, $26B
Oman is 6 GDP, 40B… but 7 money supply $19.5B
Bahrain is 7 GDP, 17B… but 6 money supply $21B
The dinar started at 4000, but before anyone got in it was around 1650, and since has dropped to 1170.
So we’re talking about 35% over the last 5 years. And that doesn’t figure the huge spread and shipping that most paid.
In the last 3 days… The BGZ, Direxion Large Cap Bear 3X Shares, has moved about 30%, no spread, no shipping, no chance of a lop.
CBI post new info. Now M1 and M2
http://www.cbi.iq/xl&wr/key%20financial.xls
The CBI iraq has added M1 to their financials.
As of Dec.
M1=28.7 Trillion
M2=35.5 Trillion
Interesting... So Italy was doing better when they had a 1500:1 exchange rate. That's what the Lira was.
Perfect example of what 99% of dinar investors don't understand. Basics of exchange rate. The value... wether it's 1:1 or 10,000:1... it means NOTHING!!.
Italy with that 1500:1 rate was a world economical power. They had a GDP(size of economy) in the top 5 of the world.
LOL... Now for a factual answer.
http://www.n2cm.com/downloads/forex_for_beginners.pdf
Exotic currencies have a severe risk together with an ability to gain very high possible profits. The weak
but fixed currencies can be sought much in order to carry out speculative attacks on them that may lead
the countries involved to wide depreciation and economical difficulties. A number of developing currencies
try to peg their currencies to the US dollar exchange rates to bring the monetary officials to order and
force currency holders not to resort to devaluations. In most of the cases it's impossible to fix the
exchange rates due to indiscipline and it mostly leads to considerable depreciation. These devaluations
often cause high possible profit but within the stable periods investors mostly hold the currencies due to
high interest rates.
In simple terms... the dinar would get CRUSHED on the forex.
Again... you ignore facts right in front of your face.
Iraqs money supply is very much in line with their economy as proven buy the actual numbers. This is each country GDP in dollars and their money supply value in dollars. Iraq is pretty much right in line. There is room for growth certainly... but nothing like being pushed by dealers and pumpers like yourself.
SA has 1st GDP, 382B… and 1st money supply $240B
UAE is 2 GDP, 190B… and 2 money supply, $220B
Kuwait 3 GDP, 115B… and 3 money supply, $77B
Qatar is 4 GDP,73B… and 4 money supp, $41B
Iraq is 5 in GDP, 50B… and 5 money supply, $26B
Oman is 6 GDP, 40B… but 7 money supply $19.5B
Bahrain is 7 GDP, 17B… but 6 money supply $21B
Facts again prove you wrong.
And a switch to a loose monetary policy would have the opposite effect.
A loose monetary policy would not cause the dinar to rise as you seem to think.
You are trying to discuss things that you don't even have a basic understanding of.
At least most here are seeing through your crap.