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Facts... DD...
it is worth mentioning that during the Iraqi occupation of the State of Kuwait, among other items the Iraqi occupiers stole large sums of Third Issue of Kuwaiti Notes, that were never placed onto circulation until that time , from the vaults of the Central Bank of Kuwait. In line with Law No. ( 2A/90 ), the Ministerial Decisions Nos. ( 1A/90 ) and ( 2A/90 ) were issued to determine the serial numbers of these currency bank-notes. Thus, the Central Bank of Kuwait will no way exchange these stolen currency notes
http://www.embassyofkuwait.ca/Kwt/history/currency.htm
Where do you get your information?????????
it's all made up.
My info is from the Central Bank of Iraq and the Central Bank of Kuwait.
Iraqs rate was nowhere near Kuwait when they invaded. Iraq had an official rate near that of Kuwait... but it was nomore than a fantasy rate. The real rate was much much lower. Look at what the CBI says their rate was.
Kuwait happened exactly like I said it did.
You seem to saying Kuwait excepted Iraqi Dinar when they exchnaged... that's laughable... they didn't even except the Kuwaiti dinars that were stolen.
Kuwait... the facts. Since it's still being mirepresented.
Kuwiat had less than 400 million dinars in circulation when Saddam invaded. Saddam broke into the central bank and stole Billions of un-issued dinars. That destroyed the value of the currency. When the war was over... only one month after the war, Kuwait issued a new currency right back to their official rate. Total of 7 0r 8 months from start of war to new currency. When people exchanged for the new currency, every bill serial number was checked. The ones Saddam stole were not honored. So they started with less then 400 million dinars and ended with 400 million dinars. You could say they lopped. They lopped all the dinars Saddam stole right out of the system.
That is a night a day contrast to what's happened in Iraq. Iraq had their good rate back in the early eighties, almost thirty years ago. They had an M2 around 20 billion. Saddam dinars didn't even exist at the time. Saddam turned on the printing presses and ballooned their money supply. All those dinars were swapped 1:1 for NID. So they are still in the system and just like Kuwait, they would have to be lopped out to return to the old value.
Posted this a year ago.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=20020826
http://investorshub.advfn.com/boards/read_msg.asp?message_id=19413136
LOL... good grief. How hard is this to understand. This economic adviser is saying the CBIs tight monetary policy and their insistence to keep increasing the value of the dinar is BAD!!! He claims it's damaging the economy!! He also states that the increased value led to a dependence on imports. People are spending money abroad instead of buying Iraqi. This is not a good article, in fact it is very negative article with respect to the dinar. IIF is going crazy over this... can anyone over there read??? Or are they just deleting the posts of anyone who doesn't toe the line?
Last week this stuff was posted as a positive.
"dinar board financial illiterates"
"They can't just raise the rate"
"Not pissing away funds defending the rate"
"the rate is reasonable with respect to economic fundamentals"
"a serious lack of understanding of that exchange rate"
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28835852
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28835999
LOL... sorry... but I can't wait to see what next is brought up as a positive.
LOL... the only thing she hurt was my bank account.
You are an anonymous poster on a internet message board. You can't hurt my feelings. You guys have to stop taking everything so personal. It's an investment. One of the top rules of investing... never fall in love with an investment. You guys act as if I said something about you wife or kids.
Now then... where was I... 25% sounds great until you take into account that most probably paid 20-25% premium to buy. It will also cost to sell it.
Here's what most involved in this investment are not seeing. The price of oil and how much they sell has practically nothing to do with the value of the dinar. Oil was selling for about $35 a barrel in mid 04, it's almost 4 times higher now. Why has the dinar only gone up 25%... why have the currencies of the other oil producing currencies not gone up at all??? Simple... it's the economy.
Investing in the dinar is investing in the Iraqi economy. Oil is transacted in dollars, so it's the non oil economy in Iraq that will generate demand for the dinar. Problem is... there practically is no non-oil economy. It could and probably will take many many years, 10 20 30 40 or more for a real economy to emerge from Iraq... if ever.
Sounds like you guys are in for the long haul. Nothing is going to happen soon.
According to these latest two articles posted by Rick and Rasica.
The one article says no lop for now, but it may happen in the future.
He then also says that no big revaluation will happen because in his words, "it's not consistent with economic reality"
Leaving open a possibility of a lop in the future also kinda dispels any notion of huge revalue. If they were to go with this "out of touch with reality" revalue of 1:1 they would have to issue 1,5,10... low denominations. They couldn't lop those in the future.
The other article states they are sticking with the current monetary policy to fight inflation. That sounds like they are very concerned about inflation and that's probably the reason they are not lopping at this time. The dinar is by all accounts very stable at this point. So, no real action required... and according to economic EXPERTS, countries lop AFTER inflation has been bought under control. I think they are still too concerned about inflation to lop. A lot of their inflation is from the dollar decline, just like the rest of the oil producing countries have reported. It may be interesting to see what happens when the dollar settles and even starts to regain value. That might be when the lop happens.
Of course... that's just the latest. What's out in the last week. Who knows what heck will be said this week.
Baghdad life - 05/08/08
An official source at the Iraqi Ministry of Finance, the money supply more than 8 trillion dinars (about 6.67 billion U.S. dollars), and rolling them over 6 trillion dinars, and it features real purchasing power and stable.
The source ruled out the idea of lifting three zeroes from the dinar, as did Turkey and Italy, saying that, even if it happened in future, will not affect the value of payments, or make it more easily in circulation.
And the possibility of lifting the value of the dinar against other currencies, particularly the dollar, he pointed out that this process is beyond the balance of the market economy and capacity currently, because raise the value of the dinar is not consistent with economic reality and its applications, especially at a time when industrial production did not exceed the 25 Iraqi percent of the real energy, while the unemployment levels to about 38 percent.
He attributed the source who reviewed the report of the Baghdad Chamber of Commerce, rapid improvement in the value of the dinar a year ago to speculating in foreign currencies, which will improve emergency leave only if the recession.
The source confirmed the Central Bank of Iraq dinar rate stability before foreign currencies.
Adviser of the Iraqi Central Bank, Dr Mazhar Salih, confirmed the continuation of the monetary policy aiming at reducing the size of inflation in the national economy, leading to a stable environment for growth. Salih said in a press statement that the economic recession which is expected to occur in the U.S. economy in the next term will not be of much effect on the national economy, according to some economic reports. Salih added that Iraq and its trading partners are working within the dollar zone, which links them to the economic impacts in the United States, but he clarified that the relationship between the decline in the dollar and the high oil prices will contribute to modify the impact on Iraqi economy. He expected the emergence of a third economic power in the world within the next 20 years, to establish a state of economic balance in addition to the two American and European powers, which will be represented by the emergence of a special currency to Asian countries which are growing economically, or as Salih called it by the " Chinese World currency."
Prepared & Translated:
Iraq Daily Business Updates
Stop it. These are the real numbers. You have claimed many times the numbers are going down. That is pure misinformation and you have never provided a link showing it.
Here is the link from the CBI.
http://www.cbiraq.org/key%20financial.xls
Line 64 is currency outside of banks. It has steadly grown from the bigining. Currenntly 14.7 Trillion
Line 71 is deposites. Steadly grown, now at 12.6 trillion
Line 70 is M2. it is the sum of the two, it is now 27 trillion
Do not take my word for what makes up those numbers.
Read what the Central Bank of Iraq says makes up those numbers. That is if the mod will stop deleting it.
http://www.cbiraq.org/Key%20Financial%20Indicators%20Documentation.pdf
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.
b - Bank reserves:
ID current account (item 10.1)
Overnight ID deposits (item 10.3)
ID vault cash (item 8.1)
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”.
Please... I am done with you. I have never once claimed 27 trillion physical dinars and I defy you to find the post where I did say it. I have explained it a number of times and you can't grasp it.
You have deleted my reply twice that was just a simple link to CBI where they explain exactly what makes up their m2 numbers. Nice of you to sensor the board.
Frankly.... you don't have the capacity to read and understand your own post, so I would appreciate it if you stop putting words in my mouth.
Do you have any more articles you want to post where the author refers to the people on internet dinar sites as "financially illiterate", and then goes on to say that Iraq can't just increase the value and make people rich. He also added that anyone who thinks Iraq will revalue similar to the way Kuwait did... has a serious lack of understanding of that exchange rate.
Classic!!!
http://investorshub.advfn.com/boards/read_msg.asp?message_id=28835191
Yep... think about that if the guy is right. It's technically illegal to remove dinar from Iraq. But our CIA and Government along with Iraq pump all this dinar out there to garner support. Then they lop and use the law to limit dinars returning to the country. Big windfall for Iraq.
Wouldn't surprise me a bit. I can see it now... Tonight on 60 minutes... what did George Bush know, and when did he know it... DinarGate explored.
I really love this guy... great article Rasica.
From the article...
The first question has already been answered in the positive, in the short term, as the history of the exhcange rate since CBI set it in 2004 has been pretty stable and CBI has not been massively pissing away reserves to defend it.
Understand... they have to defend the rate. A large revalue and they could not do that.
more good stuff
Regardless of the precise facts, CBI succeeded in setting, per all available evidence, an exchange rate that was reasonable with respect to economic fundamentals (see the IMF report),
more... he's great
Let me say, however, that I could not give a $% about "theory" - it's a meaningless statement and actually factually incorrect: early pressure in 2004 was towards currency appreciation not collapse (depreciation) as many (esp. Arabs) were speculating c. 2003-2004 on a Kuwaiti style revaluation back up to Sadaam levels (based I may add on a serious lack of understanding of that exchange rate).
Did you even read what you posted. This not a positive article.
The guy is talking about how stable the dinar is where it is. Do you think it would be stable if they increase the value %120,000?
Did you read this part?
What trips up most people (and in terms of Iraq there is a beautiful representation of that if one goes to the Dinar ‘Investing’ sites, such as my financially illiterate ‘friends’ here) is the misplaced belief that a form or money or another has some intrinsic value, and if the government prints more money (in the broad sense of increasing money) supply that will increase the wealth of the citizens (if one searches the cited site, and reads through discussions particularly in the August 2005 period, one finds many instances of ‘Iraqis are poor, so the government should revalue the Dinar up to make them rich’ argument, a variation on this error). It doesn't by the way, as the long history of currency manipulation amply demonstrates - prices adjust to the new base and one ends up with the same overall wealth (although parenthentically I may add too little money and too much both impose penalties). See this quick definition of Money Illusion from Wikipedia, which is useful enough.
I like this guy.
Well... they had to start with about 5 Trillion just to replace the old dinar. As an economy grows the money supply should grow along with it. That has to account for some of the increase.
I really think the massive speculation was a welcomed surprise, and actually embraced by Iraq. There was an article a couple years ago that stated that selling dinars was the second biggest generator of revenue, behind oil of course, for Iraq. That's backed up by the articles a couple years ago that talked about the 5 billion dollars that Iraq deposited in the N.Y. Fed Bank. It was stated that most of the money had come from selling dinars.
There was a very interesting article written a while back about the dinar. The author basically claims that the dinar was pumped out there on purpose into the middle east to give people a vested interest in Iraqs success. The dinar was basically a huge psych ops plan.
True?? We'll probably never know. But is sure sounds plausible to me.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=23473504
Yes... it may even be a year or two before they do it. I think they would probably like to get closer to 1000:1 before they do it. There were way to many articles about getting to 1000:1 and then removing 3 zeros to ignore. It's pretty obvious that the Minister of Finance wants to do it.
So they could just continue on with this slow grow, but any talk from Iraq about returning to the previous rate would worry me because the only way they could do that is to also return the money supply to those same previous levels. That can not be accomplished by buying it back through the auctions. It needs to be reduced by 1000 times. No way auctions could do that.
Yes... that is the main reason to do a lop, to reduce the money supply. If they lop 3 zeros the people of Iraq will not lose money. The amount of dinars they have will be reduced by 1000, but the value of the new dinars will be 1000 times more, so there's no gain or loss.
For people buying and holding dinars in countries like the US the risk of a lop is that they will have no way to exchange their dinars. The dealers will go into reverse motion, buying it back. You have to pay a premium to get it and they will certainly charge you a premium to take it off your hands.
No... not at all.
But it's not practical to think it will slow grow all the way to 1:1.
Read this post before investing in the dinar.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27106003
A lop is like a reverse split. They will issue a new currency and give 1 new for 1000 old. (3 zero lop)
If Iraq wants to go back to the old 1:1 or 3:1 exchnage rate.
This is their ONLY option.
Qoutes from the article...
Since 1960, governments of developing and transition economies have redenominated their currencies on approximately seventy occasions.
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. In some cases, the timing is correct, in that redenomination caps off high levels of inflation. In other cases, governments are not able to reign in inflation immediately after redenomination, and they may make multiple efforts at currency reform. Argentina and Brazil during the 1980s and early 1990s exemplify this pattern.
Yet not every country with high levels of inflation, or with a low local currency/dollar exchange rate (so that thousands of local currency units are required for everyday transactions), chooses to redenominate its currency. Some governments are content for citizens to spend two thousand lira or manta for a cup of coffee, even if this leads citizens to question the legitimacy of the local currency. In other cases, 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
It's becoming no different than the other internet dinar sites. Silence anyone who speaks ill of the dinar. It's not a true investment board. A real investment board would welcome all information about that investment.
I know for a fact that IIF pays certain posters to post. I saw the IM exchange between Sportslux (the mod) and a well respected poster over there that I will not name.
Who deleted all my posts? Why?
LOL... you could mount my head on the wall.
Why do people always assume that just because I'm posting the facts as I see it that I must be miserable? Not that I owe any explanation but... I'm just chillin', whachin' some bball, eatin' dinner about to grab a shower and head out for a night on the town with friends. It's early hear on the West coast. I'm not an unhappy person. I have a great home blocks from the beach in Southern California. I have a great job that pays more than I thought I would ever make in my life. I am debt free (except for mortgage) and have a decent amount of money put away. I have a wonderful girlfriend and a great son. So can we stop assuming that I'm some type of sad sack.
Sorry, but what you call a ruse is fact.
I'm not sure where you are getting your M0, M1, M2 info from.
I'm sure youy are aware that all countries treat it differently. What one country considers M2 might be what another country considers M3. I can tell you this. I know what Iraq considers M2, I have known it and pretty well understood it for years now. For you... from the Central Bank of Iraq. Please read it so we might have an inintelligent conversation on the subject. Until you do so, you will continue to post false information that makes no sense
Documentation of the Key financial Indicators
1. Exchange Rate The weekly and monthly average for the Iraqi Dinar exchange rates
against the U.S. Dollar in the daily CBI auctions. Rate is reported from Foreign Exchange
Department.
2. Inflation Rate Consumer Price Index (CPI) (1993=100). Issued by the Central Office of
Statistics and Information Technology (COSIT). Since August 2004 the index has measured rent
monthly (it was previously measured only every six months). In September 2004, 2003 and first
three quarters of 2005 were revised to extrapolate rent for earlier months.
3. Interest Rates
a. MOF Reported by Ministry of Finance.
T-Bill Rates: Monthly averages of primary auction interest rates of 91 day
government bills since July 2004.
T-Bill amounts sold, redeemed and outstanding: Sales, purchases and redemptions
are to or from entities outside the CBI by the MOF or the CBI. Stock outstanding is the
value held outside the CBI at the end of the period. Amounts shown are aggregates of 28,
63, 91 day term bill.
b. CBI Reported by Agreements & Loans Department. Interest rates set by the CBI for
use of its Standing Facilities established August 2004 (see http://www.cbiraq.org/cbs3a.htm).
b.i Discount rate for bills sole by the CBI bearing a maturity of one year.
c. Commercial Banks Reported by commercial bank to the Credit Research Division of
Statistics and Research Department. Rates are for end of period at annual rates.
4. Monetary Base Reported by the Accounts Department in the Analytical balance sheet.
Items referenced are item numbers in the Analytical balance sheet.
Sources
a – Net Foreign Assets of the CBI (NFA): Gross Foreign Assets less Foreign
Liabilities
Gross Foreign Assets of the CBI: Gold and SDRs (items 1.1 and 1.23);
Investments (item 1.22); and Cash in CBI vaults (item 1.21)
Foreign Liabilities of the CBI: Foreign sector foreign currency current account
(item 7.1)
b - Net Domestic Assets for the CBI (NDA): Derived from the Analytical
Balance sheet reported by the Accounts Department. NDA is defined here as the
Monetary Base less Net Foreign Assets of the CBI.
Net claims on central government (items 2.1 to 2.5): these claims are carried over
from before February 2003; From April 2006, these claims are consolidated into a single
claim with accrued interest added. The rescheduled claim will be paid off in quarterly
installments beginning the end of March 2007. Domestic currency deposits of the MOF
(item 9.1); and Foreign exchange deposits of MOF (item 9.4).
Net claims on commercial banks: Credit (item3.2) Less Deposits (excluding
overnight ID) (items 10.4 and 10.5)
2
2
Uses
Monetary Base is the sum of domestic currency outside of bank and bank reserves
(a + b)
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.
b - Bank reserves:
ID current account (item 10.1)
Overnight ID deposits (item 10.3)
ID vault cash (item 8.1)
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”.
6. Foreign currency deposits – Reported by Agreement & Loans Dept. The monthly
average of foreign currency deposits reported by banks in the “Monthly Reserve Calculation
Period Report of Deposits and Vault Cash”. As of May 2005, this value includes foreign
currency deposits of central government held by banks.
7. Reserve Requirement : Reported by Agreement & Loans Dept on the basis of the
“Monthly Reserve Calculation Period Report of Deposits and Vault Cash”.
a. Required Reserves are 25% of all deposits (Dinar and foreign currency) of the public
plus of the government (as of May 2005) less cash items in the process of collection. These
deposits are the average of the end Thursday balances in the preceding month (the four or five
Thursdays ending on the second Thursday before the end of the preceding month). From [July],
2006 the reserve assets that may be held to satisfy the requirement are: a) the Dinar vault cash of
banks up to 20% of the total requirement, b) foreign currency current accounts with the CBI up
to the 25% of the banks foreign currency deposits, and c) Dinar current account balances with
the CBI. Prior to [July, 2006], all dinar vault cash was included in reserve assets.
3
3
b. Excess Reserves including overnight Dinar deposits are defined as: a) total Dinar
current account balances less that amount of the total reserve requirement not satisfied with vault
cash and foreign currency current account deposits with the CBI, plus b) overnight Dinar
deposits with the CBI. ( show as the average of Thursday balances per the maintenance period ).
8. Memorandum Items:
Growth rates from previous month are the compounded annual growth rates represented by the
change from the previous month (Power (current month / earlier month)*100) – 100.
Growth rates from previous six months (twelve months) are the compounded annual growth rates
represented by the changes from six (twelve) earlier; the formula is:
(Power (current month / six months earlier, 2)-1)*100
(Power (current month / twelve months earlier, 1)-1)*100
There is nothing in that article that proves any of the points you have made.
The Iraqi Wiki page is a joke. It's no different than this page. Anyone can post an article and interpret it any way they want. There is nothing in any of the articles posted there that dispel the possibility of a lop.
A lop is a very real possibility for the dianr. The finance minister has talked about it many times.
Amazing that the Finance Minister of Iraq would keep suggesting something that has been deemed impossible by the Internet dinar experts.
One link... just one simple link my friend.
I just quote the numbers from the Central Bank of Iraq. The same numbers that are supplied to and published by the International Monetary Fund.
I have posted link after link, Those are pretty good sources.
I just need one link that supports any of the M2 statements you make.
One link that shows this 21 to 17 to 15 number you talk about.
One link that says countries only lop while suffering high inflation or have multiple currencies.
One link can't be too hard to provide.
The fish farms are back!!!! 1:1 for sure now!
LOL... I really blew it by getting rid of my dinar... oh my oh my.
Quit making crap up and post one... please... just one single link that supports you opinion.
You are spouting off figures that are simply nonsense.
You can keep posting these lies as many times as you want, it will never make it true.
As I have posted, backed with real links, not the dealer propaganda you quote...
Most countries that lop wait until inflation is under control... that is a FACT, you would know that if you read the link.
Multiple currencies has ABSOLUTLY nothing to do with a lop. Multiple currencies would be remedied simply with the issuance of a new currency. No lop would be necessary. That is a FACT!
What difference does it make that Kurdistan has not got the 50 yet????????
Yeap... if it revals to 1:1 I will be feeding myself to the shark
For those that think M2 is shrinking.
From Iraq's latest letter of intent.
http://www.imf.org/external/pubs/ft/scr/2008/cr0817.pdf
Page 31, about half way down the page. They show that currency outside of banks is projected to be almost 15 trillion by now. Which it is according to the CBI financial spreadsheet.
That backs the numbers I have reported on here.
15 outside of banks, 12 in banks... for a total of 27 trillion M2.
Now look to projected by 2009... over 18 trillion.
They plan on adding 3 more trillion in currency outside of banks over the rest of the year.
THEY ARE NOT REDUCING CURRENCY IN CIRCULATION AND THEY HAVE NO PLAN TO REDUCE CURRENCY IN CIRCULATION.
Iraq groaning under crushing debts
According to U.S. State Department estimations, some $56 billion of Iraq's debts were written off while the remaining sum lies somewhere between $56 billion and $80 billion, more than half of them are due for Gulf states.
http://66.111.34.180/look/english/article.tpl?IdLanguage=1&IdPublication=4&NrArticle=77348&NrIssue=2&NrSection=4
So Iraq is struggling with 50 to 80 billion dollars of debt.
REMEMBER... M2 is a LIABILITY.
Iraqs m2 is 27 TRILLION.
Revaluing the currency to 1:1 would be the same exact thing as a 27 trillion dollar debt.
They are having trouble with 50 - 80 billion.
Even if you believe the lies of Iraq only having an M2 of 4 or 5 trillion they still could not possibly revalue even that much to 1:1.
There is probably 4 or 5 trillion in the hands of speculator alone.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=20963859
Everyone with dinar should be forced to read this.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27106003
For one thing... It would keep many many many lies from being spread.
Like countries only lop when suffering from high inflation.
from the link:
In other cases, governments do choose to redenominate, but only after a sustained period during which inflation has been reigned in.
This info has been out for over year and people continue to spread the lie.
You will be remembered as just one more guy who doesn't understand currency values.
Results from your personality test?
What are you talking about? You obviously have no understanding of M2.
I have explained this to you a number of times you just don't get it.
One more time. There are to parts to M2
First is the currency in circulation. It is 15 trillion, it has never been reduced and has consistently grown since the CBI has been reporting the numbers.
Second is deposits in banks, it is 12 trillion. That part was reduced last year from 10 to 7 trillion because of faulty bank reporting, but since then has grown to the 12 trillion it is today.
So you add the two and that's where the M2 of 27 trillion comes from.
Why is that so hard for you to understand?
Link doesn't work for me. Good thing stockings cut and pasted the whole thing.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=27106003
What are you talkng about. Circulated dinars has never been more than 15 trillion. How can they have been reduced to 15 trillion. Please show one single link.
You are just making crap up and claiming it as fact when you really have no idea what you are talking about.
I showed you this back in September.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=22879443
http://convention2.allacademic.com/getfile.php?file=apsa05_proceeding/2005-09-05/40104/apsa05_proceeding_40104.pdf
In other cases, governments do choose to redenominate, but only after a sustained period during which inflation has been reigned in.
You have not shown anything that proves M2 is shrinking.
I have given you the link for the CBI financials numerous times which have shown the M2 growing.
That is not my opinion nor your opinion, it is a fact reported by the CBI.
I have the facts and the links.
You just have... well... nothing.
I have also explained many times that the Dinar is appreciating because the CBI is adding to their foreign currency reserves which allows them to better the exchange rate and maintain their promise to the IMF that they will back the dinar at 100%. It is as simple as that. Assets must be higher than liabilities.
We've all seen the news lately, the dems especially are starting to gripe loudly about Iraq building reserves while we are footing the bill. It wont last long.
The low inflation is great for Iraq. But the fact is that countries that are thinking about lopping wait ubtil inflation is under control before lopping.
The Central Bank buys back dinar.
Iraq sells oil for dollars. They use those dollars to buy back their currency. That currency is then reissued to pay for the budget.
The banks and their customers need the dollars for international business and trade.
This has been going on for years now and people have been misinterpreting it for years. They are not reducing M2. Yes they are temporarily buying the currency back, but they are reissuing what they buy back and more which is proven by looking at the CBI finacials which are posted on the web and reported to the IMF. They have shown a steady increase in the M2 since the beginning. They have to buy back the currency or the exchange rate would drop like a rock leaving the currency even more worthless.
If you don't believe me, read this interview with the CEO from Warka bank in Iraq.
http://www.americancontractor.com/2007/05/american_contractor_email_inte_1.html
"If it was not for the daily intervention of the central bank of Iraq in selling in the range of 500 million dollars per month, one would expect the exchange rate to reach as high level as 5000 dinars to the one dollar."
Read down a little further.
AC Question:
I know for over a year that Iraq Govt. CBI and Iraqi customs have been attempting to put a stop to the smuggling of Iraq Dinar out of the country. Do you think the smuggling has increased or decreased as the new Iraq government is almost completed? What is your feeling on the Iraq Dinar speculators that are holding the Iraq Dinar outside of Iraq?
CEO Al-Bunnia:
It has always been the case since many decades ago that Iraqi currency is not allowed to be exchanged or exported outside Iraq. The law is still on now.
And more from the Warka CEO
.My advise to those Iraqi dinar speculators is that they are taking the risk of by buying Iraqi dinar because I really do believe that the currency will be changed in the near future once the government is stabilized and settled
A lot of people say that it's only my opinion that Iraq can not go back to the old rate.
Well... I'm sorry... but the numbers in the post below prove absolutely 100% without a doubt that my opinion is correct.
The only way it is not correct is if Iraq really only has a M2 of about 30 billion instead of the almost 30 trillion that they report. And that is not the case.
I have explained this perfectly
posted this a long time ago.
Lowest Valued Currencies
Country, Rate, Money Supply(m2), $Value, GDP
Korea, 931, 1,800 Trillion, $1.93T, $1.18 Trillion
Mongolia, 1163, 1.2 Trillion, $1.0B, $5.78 Billion
Tanzania, 1247, 2.8 Trillion, $2.25B, $29.2 Billion
Iraq, 1238, 20 Trillion, $16.2B, $88 Billion
Lebanon, 1512, 80 Trillion, $52.9B, $21.4 Billion
Uganda, 1692, 3 Trillion, $1.8B $52, Billion
Colombia, 1935, 104 Trillion, $53.7B, $336 Billion
Belarus, 2144, 16.5 Trillion, $7.7B, $80.7 Billion
Venezuela, 2147, 66.5 Trillion, (05) $31B, $176 Billion
Sierra Leone, 2935, 687 Billion, $.23B, $5.3 Billion
Indonesia, 8839, 1,200 Trillion, $136B, $935 Billion
Iran, 9252, 950 Trillion, $102B, $610 Billion
Vietnam, 16075, 810 Trillion, $50.4B, $258 Billion
And this
Highest Valued Currencies
Country, Rate, Money Supply (m2), $Value, GDP
Kuwait, $3.46, 16 Billion, $55.4B, $52 Billion
Malta, $3.15, 3.2 Billion, $10.1B, $8.1 Billion
Bahrain, $2.66, 4.3 Billion, $11.4B, $17.7 Billion
Oman, $2.60, 4.4 Billion, $11.4B, $43.8 Billion
Cyprus, $2.33, 11.8 Billion, $27.5B, $17.8 Billion
U.K., $1.98, 1.4 Trillion, $729B, $2 Trillion
Latvia, $1.92, 5.6 Billion, $10.7B, $35.1 Billion
Jordan, $1.41, 13.9 Billion, $19.6B, $28.9 Billion
Cayman, Island, $1.23 5.1 billion, $6.3B, $1.9 Billion
United States, $1 $7.2 Trillion, $7.2T, $13 Trillion
Notice that EVERY one of the lowest currencies have trillions for M2
Notice that EVERY one of the highest currencies have LOW billions. With the exception of the US and the UK which are incomparable to the others because they have Trillion dollar economies and their currencies are traded on the Forex Market. Notice that Korea is on the low list even with a Trillion dollar economy. But look at their m2... it's 1.8 Quadrillion.
That is known as true DD... Too funny huh?