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$70 Billion Budget
http://www.iraqupdates.com/p_articles.php/article/33274
03 July 2008 (AME Info FZ LLC)
Iraq wants to raise its 2008 budget by 44% to a record $70bn, cashing in on record oil prices to rebuild shattered infrastructure, reported Reuters.
The country's finance ministry has submitted a supplementary budget of $21bn - on top of February's 2008 budget of $48bn - as prices for Iraq's main export oil hits record highs
There goes that $70 billion we were told about over and over. It is being earmarked for the budget. It will not be spent to buy back and retire currency as this board was led to believe.
Thanks for the support over there Stong. I was working the mod myself. They couldn't allow him to continue to delete my post just becuse he didn't like the info.
Off to the real job for me... nice morning in the market, got a nice pop on my two natural gas stocks. SWN, up 7% and I bailed. CHK, up 8%, tight stop.... looks like i just got stopped out of that one also. Nice profit on both... I'll hope for pullback and re-entry on both of those.
You accused me yesterday of posting "old" lop articles and I asked you to explain how a five day old article was old. I see no explanation. I also see no explanation from you as to how I'm "twisting truths".
Stop the rhetoric and proved some substance. What am I twisting? The words in those articles speak for themselves. I haven't twisted them because they don't need twisted.
LOL... not sure Stockster. I try to avoid the personal stuff (most of the time). Practically every post I make has a link to support my position. I'm just telling the truth. Kinda hard to label me as a basher.
There was one mod... a huge BKMP pumper back in the day... that had major problems with me sharing the truth. He kept on deleting legitimate post... the mods would restore them. Guess they finally got tired of it, so he's been removed as mod. His post over there were/are ridiculous. He will post a link and claim it say something. Almost always he is wrong. If he really believes what he is saying... he has the reading comprehension of a second grader, a slow one at that.
Now the ultimate illiterate is trying to start something over there. I'm sure you know who that is.
Italy joined the Euro with a lira rate of about 1500:1. Never heard of any problems.
You calling me slow... thanks for the belly laugh.
June 26th, 2008... maybe you can explain how 5 days is considered "old".
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://iraqalaan.com/bm/Economy/-2007--2.shtml
June 26th, 2008
" On the other hand, revealed adviser Central Bank Governor "sought to delete the bank and raising the number of zeroes for the future Iraqi dinars, after the Iraqi dinar rose to 20%" He refused to identify the roof of a timetable for lifting these zeroes, but he indicated at the same time that " This will lift the zeroes are rational, reflects well on the Iraqi society and without negative impact upon "as he put it."
There was no deadline for a lop. Says nothing of the sort. It simply states that they will take a DECISION in three months. Which means holding a meeting and DECIDING whether or not to do it. It says nothing what so ever about a deadline for EXECUTING a lop. It also says in the article… but you decided not to show this part. “The Iraqi minister said, however, printing new bank notes and fully replacing old notes would take two years.”
Why would there be a deadline of 3 months to do something that he then says will take 2 years?
Simple, because the 3 month date was only on the decision, and there was no hard deadline, and as far as we know they had the meeting and decided within the 3 months. CBI Gov made his statement in early April.
There was no hard deadline for reviewing the lop. It was simply stated that they would take it up within 3 months. Have they done anything in Iraq on the timetable they talked about. Plus… neither you or I know when they held the meeting. But on April 7 the CBI governor stated they would return back to the 70s, 80s rate, but that it was not simple and SUPPLY was critical. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28323429
That sounds like supply will have to be reduced and that is done with a lop.
Then couple that with last weeks article from the CBI advisor, clearly stating they will lop sometime in the future… and the obvious conclusion is they had the meeting sometime, probably before April 7 when the Governor spoke, and they decided to lop.
The lop (raising the zeros), which it is blatantly obvious that he says they will do, is a totally separate issue than the “lifting of the value” part that he refers to later.
Lops are monetarily neutral, meaning they have no effect on the value of the currency. They simply remove the large bills from circulation. New exchange rate for new currency. They can continue to improve the exchange rate slowly as they have been doing.
If they did a straight lop right now… the new currency would have an exchange rate of 83 cents per dinar. They could continue to improve it, but it would be a penny at a time.
Lopping the currency and continuing to improve the rate can both happen at the same time.
CBI ADVISER ANNOUNCES LOP PLANS!! It's over, it's now just a matter of when.
Some might have missed this also.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://iraqalaan.com/bm/Economy/-2007--2.shtml
June 26th, 2008
" On the other hand, revealed adviser Central Bank Governor "sought to delete the bank and raising the number of zeroes for the future Iraqi dinars, after the Iraqi dinar rose to 20%" He refused to identify the roof of a timetable for lifting these zeroes, but he indicated at the same time that " This will lift the zeroes are rational, reflects well on the Iraqi society and without negative impact upon "as he put it."
So the central bank is saying that they have decide to lift the zeros from the dinar, but they have not given a timetable.
It's coming... just a matter of when.
DOW JONES NEWSWIRES
Thu, Nov 29 2007
Since many might have missed this over the weekend.
UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min
Thu, Nov 29 2007, 15:19 GMT
http://www.djnewswires.com/eu
UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min
(adds more interview details)
By Hassan Hafidh
Of DOW JONES NEWSWIRES
AMMAN (Dow Jones)-The Central Bank of Iraq is contemplating rebasing the Iraqi dinar and issuing new banknotes early next year, the country's Finance Minister said Thursday.
"The Central Bank will take a decision in three months time from now, taking off three zeros from the current Iraqi dinar value," Bayan Jabor said in an exclusive interview with Dow Jones Newswires in Amman.
On Thursday, the dinar traded 1,230 dinars against the dollar, according to a trader in Baghdad. If the rebase decision is taken, it means that a dollar will equal only 1.23 dinars at current prices, the minister said.
Currency rebasings usually are monetarily neutral and are introduced to make commercial calculations easier. Turkey knocked six zeroes off its lira currency on Jan 1 2005, for example.
Before the U.S.-led invasion of 2003, the dinar was trading at 2,500 against the dollar. During early 1980s an Iraqi dinar was traded by Iraqi state-run banks at 3 dollars.
The Central Bank of Iraq has been working to improve the value of the dinar against the dollar through holding a daily auction to sell dollars to private and government banks. The bank sells between $35 and $50 million in each auction it holds, bank officials said.
The Iraqi minister said, however, printing new bank notes and fully replacing old notes would take two years.
In July 2004, the now dissolved U.S. civilian authority in Iraq decided to print the current Iraqi bank notes replacing those used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.
According to Central Bank officials some 10,000 tons of old dinars were then collected and burned.
The current banknotes were printed by Britain's De La Rue Plc (DLAR.L), the world's biggest commercial printer of bank notes. Jabor didn't say which company would print the new banknotes.
Jabor said that the government was able to bring down inflation from a record figure of 60% last year to a current 16%. He said Iraq's economy is growing at a rate of 6% this year and that the government wants to increase that figure with more crude oil exports, tourism and agriculture in 2008. Iraq sits on the third largest oil reserves in the world and depends on oil sales for almost all of its foreign currency earnings. Jabor announced earlier this month that the country's budget for 2008 would be $48.4 billion up from $42 billion in 2007. Some 88% percent of that budget would be financed from oil revenues which are expected to reach $36 billion, according to Iraqi officials.
He said that his ministry has allocated $15.5 billion for investment in various industrial, oil, agricultural, housing and service projects in 2008. He said some $5 billion that the government was not able to spend in 2007 would be moved to 2008 investment plan.
While in Amman, Jabor met with Jordanian businessmen to encourage them to start investment in Iraq's ambitious reconstruction plan for 2008. He did the same thing with Syrian and Kuwaiti businessmen last week. - By Hassan Hafidh; Dow Jones Newswires; + 962 777 612 111; hassan.hafidh@dowjones.com
(END) Dow Jones Newswires
November 29, 2007 10:19 ET (15:19 GMT
The descision has been made to lop... this is a lop, they would not use Turkey as an example if it were not. It's now just a matter of time.
Yes, and before Bob, he was MicroBob... had to change his name becuase a number of people wanted to string him up because he hooked up with Roger May, CEO Advanced Communications Technologies, and pumped the crap out of that pure scam.
LOL.. careful or he'll plagiarize something out of his latest HS Dent newsletter and put you in your place.
The adviser to the Govenor of the Central Bank of Iraq has stated that Iraq will lop 3 zeros from their currency. A new currency will be issued.
Are you sure you want to buy dinar at this time.
I'll trust the CBI advisers words.
He claims they are going to lop.
If he said no lop... then why on earth would the author note that he refused to give a timetable. If you say you are not going to do something, the person will not turn arounnd and ask you when do you plan on not doing it. LOLOL Hilarious logic.
He also... and correctly... claims that lifting the zeros is WITHOUT negative impact. That is also backed up by the fact that 70 times it has happened in the past and never have any of the problems you listed been documented.
CBI ANNOUNCES LOP PLANS!! It's over, it's now just a matter of when.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://iraqalaan.com/bm/Economy/-2007--2.shtml
June 26th, 2008
" On the other hand, revealed adviser Central Bank Governor "sought to delete the bank and raising the number of zeroes for the future Iraqi dinars, after the Iraqi dinar rose to 20%" He refused to identify the roof of a timetable for lifting these zeroes, but he indicated at the same time that " This will lift the zeroes are rational, reflects well on the Iraqi society and without negative impact upon "as he put it."
So the central bank is saying that they have decide to lift the zeros from the dinar, but they have not given a timetable.
It's coming... just a matter of when.
That is a preposterous claim. It is a very legit article and it all fits together perfectly.
The MoF pushed for a lop 2 years ago. The CBI did not rule it out at the time, they simply said they were going to put it to the side for now.
Then this came out in Nov of 07. The MoF pushed the lop again, said there was a positive attitude about it this time. Said they would take it up in 3 months.
Then in April of this year the CBI governor made his statement... to return to the value of the 70s, 80's, but that SUPPLY was important.
Then the icing on the cake was the article that came out just the other day... the CBI governors advisor came out and said that they will lop, but he would not say when.
There you have it. The MoF want it. The CBI now agrees.
It is over... a lop will happen... it's time to face the music. The fat lady will soon sing.
DOW JONES NEWSWIRES
Thu, Nov 29 2007
UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min
Thu, Nov 29 2007, 15:19 GMT
http://www.djnewswires.com/eu
UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min
(adds more interview details)
By Hassan Hafidh
Of DOW JONES NEWSWIRES
AMMAN (Dow Jones)-The Central Bank of Iraq is contemplating rebasing the Iraqi dinar and issuing new banknotes early next year, the country's Finance Minister said Thursday.
"The Central Bank will take a decision in three months time from now, taking off three zeros from the current Iraqi dinar value," Bayan Jabor said in an exclusive interview with Dow Jones Newswires in Amman.
On Thursday, the dinar traded 1,230 dinars against the dollar, according to a trader in Baghdad. If the rebase decision is taken, it means that a dollar will equal only 1.23 dinars at current prices, the minister said.
Currency rebasings usually are monetarily neutral and are introduced to make commercial calculations easier. Turkey knocked six zeroes off its lira currency on Jan 1 2005, for example.
Before the U.S.-led invasion of 2003, the dinar was trading at 2,500 against the dollar. During early 1980s an Iraqi dinar was traded by Iraqi state-run banks at 3 dollars.
The Central Bank of Iraq has been working to improve the value of the dinar against the dollar through holding a daily auction to sell dollars to private and government banks. The bank sells between $35 and $50 million in each auction it holds, bank officials said.
The Iraqi minister said, however, printing new bank notes and fully replacing old notes would take two years.
In July 2004, the now dissolved U.S. civilian authority in Iraq decided to print the current Iraqi bank notes replacing those used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.
According to Central Bank officials some 10,000 tons of old dinars were then collected and burned.
The current banknotes were printed by Britain's De La Rue Plc (DLAR.L), the world's biggest commercial printer of bank notes. Jabor didn't say which company would print the new banknotes.
Jabor said that the government was able to bring down inflation from a record figure of 60% last year to a current 16%. He said Iraq's economy is growing at a rate of 6% this year and that the government wants to increase that figure with more crude oil exports, tourism and agriculture in 2008. Iraq sits on the third largest oil reserves in the world and depends on oil sales for almost all of its foreign currency earnings. Jabor announced earlier this month that the country's budget for 2008 would be $48.4 billion up from $42 billion in 2007. Some 88% percent of that budget would be financed from oil revenues which are expected to reach $36 billion, according to Iraqi officials.
He said that his ministry has allocated $15.5 billion for investment in various industrial, oil, agricultural, housing and service projects in 2008. He said some $5 billion that the government was not able to spend in 2007 would be moved to 2008 investment plan.
While in Amman, Jabor met with Jordanian businessmen to encourage them to start investment in Iraq's ambitious reconstruction plan for 2008. He did the same thing with Syrian and Kuwaiti businessmen last week. - By Hassan Hafidh; Dow Jones Newswires; + 962 777 612 111; hassan.hafidh@dowjones.com
(END) Dow Jones Newswires
November 29, 2007 10:19 ET (15:19 GMT
The descision has been made to lop... this is a lop, they would not use Turkey as an example if it were not. It's now just a matter of time.
It has been decided by the CBI and MoF to lop. Adjust investments accordingly.
The claim that circulating dinar is being reduced is a blatant lie.
Look at the highlighted line in the chart. That is currency in circulation. Iraq has been buying back their currency for years, but it is to fund the budget. It is put right back into circulation as proven by the chart. The same people that report the numbers quoted for buying back the dinar are the same people that publish this spreadsheet. The Central Bank of Iraq. You can't believe one without believing the other.
As you can see... the number is steadily growing. It is not decreasing as some try to claim.
Anyone who knows the slightest little bit about economics and currency knows that M0 is part of M2. To claim otherwise is rediculous.
The Central Bank of Iraq Says this.
http://www.cbiraq.org/Key%20Financial%20Indicators%20Documentation.pdf
5. Money Supply (M2)
Monthly: Reported by Research & Statistics Department (as at the end of the month, in billions of Dinar) from the monthly regulatory reports of all commercial banks.
Currency in Circulation outside of banks (see 4.a above)
Deposits in Commercial Banks, excluding central government deposits, interbank
accounts, and accounts of a current nature.
Weekly: Reported by Research and Statistics Department as at the end of every
Thursday.
Currency in Circulation outside of banks is currency put into circulation as
reported weekly by Issuing Dept. less dinar cash in vaults of banks as reported by banks in the
“Monthly Reserve Calculation Period Report of Deposits and Vault Cash” .
Deposits in Commercial Banks, excluding central government deposits, interbank
accounts, and accounts of a current nature as reported by banks in the “Monthly Reserve
Calculation Period Report of Deposits and Vault Cash”.
4 a - Currency outside banks, i.e., the currency component of the money supply as shown in the Analytical Balance sheet (Item 8) which is derived from the following sources (currency put into circulation reported by Issuing Dept. less vault cash(item 8.1 of Analytical Balance Sheet) reported by Research & Statistics Dept.). From December 2003, currency in
circulation is the new currency issued by the CBI less redemption of old and damaged new currency notes. Prior to October 2003, currency in circulation is all Iraqi Dinar (other than the 25 swiss Dinar notes) issued by the CBI (both Swiss and Saddam Dinar at face value) less redemption of old and damaged notes and issued currency in vaults of CBI.
Dr. Sinan Alshabibi Governor of the Central Bank.
10 April 2008
http://dinariraqmurah.blogspot.com/2008/04/stability-of-exchange-rate-of-dinar.html
"we aspire in the near future to the return of Iraqi dinar to what it was in the seventies and the beginning eighties against the dollar and other foreign currencies and we are endeavouring and serious in this regard, but added that this process is not easy and simple and depends on the supply and demand of Iraqi dinars."
Supply is the same exact thing as M2/money supply. Money supply must be greatly adjusted to return to the seventies eighties rate. How do you greatly adjust money supply. Lop.
DOW JONES NEWSWIRES
Thu, Nov 29 2007
UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min
Thu, Nov 29 2007, 15:19 GMT
http://www.djnewswires.com/eu
UPDATE: Iraq Plans To Rebase Its Dinar Early 2008 - Fin Min
(adds more interview details)
By Hassan Hafidh
Of DOW JONES NEWSWIRES
AMMAN (Dow Jones)-The Central Bank of Iraq is contemplating rebasing the Iraqi dinar and issuing new banknotes early next year, the country's Finance Minister said Thursday.
"The Central Bank will take a decision in three months time from now, taking off three zeros from the current Iraqi dinar value," Bayan Jabor said in an exclusive interview with Dow Jones Newswires in Amman.
On Thursday, the dinar traded 1,230 dinars against the dollar, according to a trader in Baghdad. If the rebase decision is taken, it means that a dollar will equal only 1.23 dinars at current prices, the minister said.
Currency rebasings usually are monetarily neutral and are introduced to make commercial calculations easier. Turkey knocked six zeroes off its lira currency on Jan 1 2005, for example.
Before the U.S.-led invasion of 2003, the dinar was trading at 2,500 against the dollar. During early 1980s an Iraqi dinar was traded by Iraqi state-run banks at 3 dollars.
The Central Bank of Iraq has been working to improve the value of the dinar against the dollar through holding a daily auction to sell dollars to private and government banks. The bank sells between $35 and $50 million in each auction it holds, bank officials said.
The Iraqi minister said, however, printing new bank notes and fully replacing old notes would take two years.
In July 2004, the now dissolved U.S. civilian authority in Iraq decided to print the current Iraqi bank notes replacing those used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.
According to Central Bank officials some 10,000 tons of old dinars were then collected and burned.
The current banknotes were printed by Britain's De La Rue Plc (DLAR.L), the world's biggest commercial printer of bank notes. Jabor didn't say which company would print the new banknotes.
Jabor said that the government was able to bring down inflation from a record figure of 60% last year to a current 16%. He said Iraq's economy is growing at a rate of 6% this year and that the government wants to increase that figure with more crude oil exports, tourism and agriculture in 2008. Iraq sits on the third largest oil reserves in the world and depends on oil sales for almost all of its foreign currency earnings. Jabor announced earlier this month that the country's budget for 2008 would be $48.4 billion up from $42 billion in 2007. Some 88% percent of that budget would be financed from oil revenues which are expected to reach $36 billion, according to Iraqi officials.
He said that his ministry has allocated $15.5 billion for investment in various industrial, oil, agricultural, housing and service projects in 2008. He said some $5 billion that the government was not able to spend in 2007 would be moved to 2008 investment plan.
While in Amman, Jabor met with Jordanian businessmen to encourage them to start investment in Iraq's ambitious reconstruction plan for 2008. He did the same thing with Syrian and Kuwaiti businessmen last week. - By Hassan Hafidh; Dow Jones Newswires; + 962 777 612 111; hassan.hafidh@dowjones.com
(END) Dow Jones Newswires
November 29, 2007 10:19 ET (15:19 GMT
The descision has been made to lop... this is a lop, they would not use Turkey as an example if it were not. It's now just a matter of time.
You got to be kidding right? This is an article that talks about Iraqi banks getting set up electronically to do business with other banks around the world. NOTHING... repeat NOTHING in that article would lead anyone to believe that any country is buying dinar.
There are no countries that have bought dinar. Never has there been any proof at all of that. It has been nothing more than internet rumor.
Raisng the zeros IS the lop. What would the negative effects be of a lop? Why are you so mad at me? It's the CBI representative that is saying this.
Gotta agree on Obama. He's going to win unless he does or says something really stupid or a scandle comes out about him. Even at that... those type of thing don't seem to have an effect on democrats. In fact, the democrat base seem to support their figures even more when they get involved in scandle.
As for the dinar... who knows how long this will tale. This thing could drag on for a couple more years just like it has for the last couple. In my opinion... it seems like the MOF and the CBI are in agreement to lop... it's just a matter of when.
If they lopped the zeros right now and set the new exchange rate to 1:1 that would be an instant 20% increase. That would be a very substantial increase in value.
We've seen quite a few articles that talked about moving to 1000:1, then lopping the zeros. They could still do it that way. You could see another push like they did a year or so ago... where they move it down to 1000:1 over the next six months or so and then lop. We'll have to wait and see.
They did not do it before now because inflation was still high. If you had read the University of North Carolina paper that I have tried to get you guys to read... you would understand that the facts are that countries wait until inflation is under control before lopping. Instead you continue to believe what Internet dinar pumpers are telling you.
The UNC paper.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=27106003
Heres are a couple lines....
"As a result, redenominations often occur after economic crises, as governments attempt to convince citizens and markets that hyperinflation is a thing of the past"
"Redenomination is more likely following a period of high inflation and a subsequent stabilization"
"governments do choose to redenominate, but only after a sustained period during which inflation has been reigned in; the time between hyperinflation and redenomination, then, may stretch to over a decade."
The program rate doesn't really mean much. The IMF Stand By Arrangement is considered the program, it is within that program that the rate was set. The Stand by Arrangement can easly be described as an Economic Reform program. That also is talked about in the UNC paper.
"Currency redenomination, then, may come as part of a broad package of economic and political reforms "
"Furthermore, for those nations that do adopt redenomination as a strategy; and particularly those that redenominated at the end of an economic reform progress; there are substantial variations in timing.
There were articles written about the Minister of Finance's statements. They all interpreted it as a zero lop from the currency. A new currency issued. Turn in your 25Ks for a 25 and so on. There have been no articles written interpreting it as a 120,000% increase in value.
Also... do you really think the CBI representative or the MOF would so casually talk about a 120,000% increase in value... or does that sound like he/they might be talking about something that other countries have done 70 times in recent history which is to lop zeros? Not a big deal at all.
The simple truth is there is no way what so ever that Iraq could change the rate to anywhere near 1:1 with this currennt currency and a M2/money supply number of 26 Trillion.
In the past articles it was always the Minister of Finance pushing for the lop. He has been suggesting it to the CBI for two years now. We know the MOF is for a lop. These were the MOF words seven or eight months ago... "the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea." Looks like they discussed it and now we have the Advisor to the CBI Governor saying that they have decided to raise the zeros. The MOF and the CBI are now both talking about raising the zeros.
I'm not sure how you can interpret it any other way. Granted the translation is not perfect, but it's very clear that the Advisor to the Central Bank Governor is saying that they have decided to raise the zeros, he wont say when, but he says that raising the zeros is rational and will reflect well on Iraq's society and will have no negative effects.
Please tell me how that can possibly be interpreted in any way other than... The lop is coming, when is the question.
CBI ANNOUNCES LOP PLANS!! It's over, it's now just a matter of when.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://iraqalaan.com/bm/Economy/-2007--2.shtml
June 26th, 2008
" On the other hand, revealed adviser Central Bank Governor "sought to delete the bank and raising the number of zeroes for the future Iraqi dinars, after the Iraqi dinar rose to 20%" He refused to identify the roof of a timetable for lifting these zeroes, but he indicated at the same time that " This will lift the zeroes are rational, reflects well on the Iraqi society and without negative impact upon "as he put it."
So the central bank is saying that they have decide to lift the zeros from the dinar, but they have not given a timetable.
It's coming... just a matter of when.
Falsehoods vs The Truth.
Lately there has been a rash of false information spread on this board.
Here are a few.
False: That the dinar in circulation number is being reduced
Truth: While it is true the CBI is buying back dinar, the same CBI that reports those buy back numbers also reports that dinar in circulation is steadily growing. Believe one number, gotta believe the other.
False: Exchange rate is not related to GDP, but it is related to GNP.
Truth: Nonsense because Iraqs GDP is exactly th same as their GNP.... and GDP has a huge effect on exchange rates.
False: The US Fed bought 7.5 trillion dinar.
Truth: There is absolutely nothing to substantiate that claim. Iraq deposited $5 billion in the fed. It was slowly accumulated over years. The fed did not sell them dollars for dinars.
False: M2 shows the Iraqi Dinar raising in value
Truth: Truth is that is jibberish. It's a statement that makes no sense. M2 is the amount of currency units in the system. How that can show value rising is beyond explanation.
False: The Minister of Finance has said no Lop.
Truth: That is laughable. The MOF has proposed a lop 2 or 3 times at least. His last statement was... "the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea." That statement was not in 2006, it was in Oct or Nov of 2007, seven or eight months ago.
False: With 70 billion in revenues Iraq will buy back all the currency.
Truth: Another preposterous theory. First, they need that 70 billion to run/rebuild the country. No country ever has or ever will buy back that large a percentage of their currency. The whole idea is DE-dollarize... that would be the exact opposite and would only be to the benefit of foreign speculators if they did do it. Talk about a pissed off populace. Take all their dinar away, than make it worth a lot.
False: Lops only happen to multiple currencies, with hyperinflation.
Truth: Multiple currencies is nonsense when talking about a lop. Multiple currencies could be remedied by simply issuing a new currency with no lop. If you read the article posted from UNC you will see the fact is that most countries wait until inflation is under control before lopping. Some countries waitng years and years before loping. Large denomination bills are a result of inflation. A lop is done once inflation is under control and is done to simply reverse the result of the past inflation.
False: Dinar dealers have closed shop.
Truth: have seen nothing to support the statement. The statement that dealers are going out of business has been used in the past to pump up sales during a slow period.
False:M2 is an 'Inhouse Value Sheet' to determine rate of Inflation if any for Iraq.
Truth: More gibberish... makes no sense.
Just a few....
IMO
Another good read...
http://www.cepa.org.gh/archives/policy-briefs/policy09.htm
The most basic monetary models generally incorporate variables such as money supply, output and interest rates to explain exchange rate movements.
Good Read. Exchnage rate should be directly linked to GDP growth.
http://www.mees.com/postedarticles/oped/a47n36d02.htm
The CBI role can not be superior to the macroeconomic and fiscal policies and government investment in infrastructure as long as oil revenues are the only source of foreign currency earnings. Therefore, the FeR (foreign exchange rate) should be directly linked to GDP growth and inflation criteria; otherwise it is no more than a flawed practice. Such a conclusion may extend to consider these criteria in determining interest rates.
The Banks need dollars for their customers, businesses and individuals, who do business internationally. The dinar is not excepted anywhere outside of Iraq, so they need dollars to buy foreign goods and services and to pay foreign companies/employees working in Iraq.
It's so nice of you to continue to post this article and to continue to cut it off right before it says this.
"the idea will be discussed by the Central Bank, and that there is a positive atmosphere to the idea."
You are blatantly misleading the board and in my opinion you should be banned for such crap.
LOL, so in effect you are saying the U.S. gave the Iraqis $5B to deposit into a private firm (The Federal Reserve) so Iraq can harvest $100M in inteest each year.
No I am not saying that. The article clearly states that it was Iraqs money that was deposited. It states that the money had accumulated since the introduction of the dinar. Maybe you should look up the word accumulated.
If you have any authority or site that can support your position this would be appreciated.
The article you keep posting proves my point. You simply can't comprehend the meaning.
As far as the M2 is concerned...you are simply making things up as we go here. Any one can see by going to the CBI site as I have posted earlier and see that the value has been going up due to the CBI buying back the Iraqi Dinar to the tune of $1B-$1.5Billion USD.
Yes the value is going up. VERY SLOWLY. I have never denied that they are buying back massive amounts of dinar. They have to buy it back to fund the budget. What they buy back, they turn around and put it right back into the market.
Now the very fact that Iraq is using their $70Billion Oil Revenues for 2008 to buy back Iraqi Dinars on the Open Market Place is an impossible componenet to fit into your suggestion that the Federal Reserve has not received 7.5Trillion in Dinars for the exchange of $5B to be deposited and to aquire $100M in interest each year.
That makes zero sense
Remember also, this exchange for 7.5T Iraqi Dinars for its equivalent of $5B...is an immense confidence builder in the Iraqi DInar.
never happened
Not onlydoes Iraq make enough Oil revenue now to buy back all the MO or circulated physical Dinars in one year by 10Xs over...the Iraq Dinar Inventory is also backed by its equivalent of USD deposited and exchanged into U.S. Treasury Bills.
This has all been talked about before and authority has already been provided contrary to anything you posted.
Also how did you like the article in the New York Times I provided this board which shows the CBI is buying Back the Iraqi Dinar which is contrary to your interpretation of the Iraqi M2? :O)
again... I never claimed they weren't buying it back, but as the CBI financials posted on their site proves, they are putting it and more right back into the system.
Look at it this way. If as you say... they were removing 1.5T dinars a month.... and they were only able to move the rate a couple pips a month... man... that would be a terrible sign for the dinar. That would be a pathetic move for such large removals of currency.
Again with the words "no way".
Ask Chase Bank if Iraq announces a new currency and gives 2 weeks to exchange it, will they buy it back? I bet I know their response to that one.
Ask them how many weeks before the exchange period ends would they continue to buy it back?
LOL... here's a good use of the term "no way". "No way" will Chase Bank get caught with worthless currency.
You are correct to say that it probably wont happen. But don't say "no way". It has happened in the past. Read the link from the The University of North Carolina. It will explain lops perfectly.
Here's a quote from the article.
"Another means of manipulation is currency reform, in which the government introduces a new currency, but makes it difficult for citizens to convert their holdings of old currency. Ignacio Mas (1995) suggests that, while the use of currency redenomination as a mechanism of confiscation is more the exception than the rule, it has been used as such throughout history. For instance, when governments require citizens to exchange old currency for new during a very short period (e.g. one day in Laos in 1976, or three days in Nicaragua in 1988 and in the Soviet Union in 1991), it is very likely that not all old currency will be exchanged. The old currency that is rendered worthless is essentially revenue; indirect seignorage -- for the government"
We've all heard and read that it is illegal to remove dinar from Iraq according to Iraqi law.
I can see it now, Iraq issues a new currency... then tells it's citizens that the currency exchange must take place in an abbreviated time. Give them two weeks... tell them that it has to happen fast because they have to trap all the illegal dinar that has left the country and is in the hands of terrorist and infidel speculators... trap that currency outside of the country. They do not like speculators... Remember Saddam... currency speculation was punishable by death while he was in charge.