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The IMF says this about currency reserves.
9. To ensure that reserves are available at the times when they are needed most, liquidity-which is the ability to convert quickly reserve assets into foreign exchange-usually receives the highest priority, albeit with a cost that usually involves accepting lower yielding investment instruments. Closely following is the need for the management and control of risks to ensure that asset values are protected. Market and credit risks, for instance, can lead to sudden losses and impair liquidity. Finally, earnings are an important outcome of the management of reserve assets. For some countries, they play a role in offsetting the costs associated with other central bank policies and domestic monetary operations, which among other things fund the acquisition of reserves. In other cases, such as where reserves are borrowed in foreign markets, earnings play an important role in minimizing the carrying costs of reserve assets. Accordingly, achieving an acceptable level of earnings should be a priority within clearly defined liquidity and risk constraints.
http://www.imf.org/external/np/mae/ferm/eng/index.htm
That is why countries hold dollars and euros as reserves. It's also why gold and other precious metals are good reserves. It has be able to be converted to dollars or euros very quickly.
Oil... in the ground does not meet that requirement.
Floating currencies do not have to be backed by anything.
Pegged currencies... which is what Iraq's currency is... have to backed with foreign currency reserves.
There have been a few articles that stated that Iraq's currency is floating. That's only because they keep changing the rate and using the word floating to describe that is very misleading. Iraqs Central Bank sets the exchnage rate for the dinar. That is a pegged currency.
That ratio of cash to electronic money for the US is about 1:6
There are about 1 trillion in paper currency, and the US has a M2 of about 7 trillion, so that leaves 6 trillion as the number for electronic money.
People have been claiming for two years now that Iraq is reducing M2. It's simply not supported by anything. They tightened their monetary policy and reduced the amount of growth, but that's it.
As reported by the Central Bank Of Iraq.
http://www.cbiraq.org/key%20financial.xls
Please look at line 70, M2, It has constantly gone up.
Line 64, Currency Outside of Banks, has constantly gone up.
The only reduction was about a year ago, Line 71, Deposits Component of M2. The CBI announced that there had been an error in the reporting of this number from the banks and they reduced it by about 3 trillion.
Where is this 22 trillion in the hands of the US coming from?
Can someone please provide a link that can be interpreted... or even misinterpreted... that would lead one to believe that the US has 22 trillion?
This sounds like a typical Shotgunsusie rumor that got the Gerbils treatment by her minions. In other words... repeat a lie over and over and eventually it becomes the truth.
25, 50 and 100 is all they have....
and the 50's never really made it onto the market. A huge amount of them were stolen when they were being distributed so they decided not to go through with the 50 dinar coins at that time. So they really only have 25 and 100 coins.
http://www.cbiraq.org/cbs5_b.htm
The 25 coin was the size and color of a penny and it was worth 2 cents.
The 50 was the size and color of a nickel and was worth 4 cents.
The 100 was the size and color of a dime and was worth 8 cents.
Just a coincidence I'm sure.
I 100% agree with you there Strong.
Keep an eye out for how they actually do this exchnage.
A new 25 dinar note would be a pretty strong sign of no lop to come.
It's just my opinion... but I think they are removing the 25 dinar coins so that when they lop and issue new currency there will be no confusion between the new 25 dinar note and the old 25 dinar coin. I also think the fact that they are doing this so fast... 1 month all the coins gone... is a sign that something is about to happen. Why else would they rush this coin exchange.
Dacrock seems to a have the reading comprehension of about a second grader… and I may be insulting the average second grader with that comment.
Dinreetraci… oh yes, of course that means Fils… lol
Tell me… Dinreetraci sounds like and looks more like which of the following two words.
DINAR
Or
FIL
LOL
How many articles have we seen lately stating 1000 dinars to the dollar… about 10 to 20 I would say.
How many articles stating 1000 Fils to the dollar… ZERO
Remember what I said about paid posters.
You are “sure” they will cancel and destroy trillions of dinars.
Lopping is the standard method countries use to do that. You claim they will not lop.
How do you propose they cancel and destroy trillions and how are you so sure?
“The cost to reprint new currency is very expensive and also take into consideration to re-circulate and to manage the return of the old currency.”
Do you not see that if they revalue they would have the same exact problem. They would need to have new currency and exchange and re-circulate if there was a substantial revalue of any kind.
Not sure what your point was for pointing me to this link… but thanks for the info.
Here’s what I see
Right at the top. The Money supply levels.
It says… “These 26 economic areas include 38 countries and make up 90.9% of the world's GDP and 64.8% of the world's population . “
Adding the M2 of all those countries together I came up with 36.5 Trillion dollars as total.
That covers 90% of the worlds GDP, so adding the other 10% would lend on to belive that there is about 40.5 trillion dollars worth of currency in the whole world.
The world has a combined GDP of about $66 trillion
Iraq’s GDP of 88 billion makes up just a bit more than one tenth of one percent, yes… that’s not 1%, but that’s one tenth of 1% of the world’s GDP.
Iraq has an m2 of 22 trillion, do you really think Iraq will revalue to 1:1 and make their currency worth half of what the rest of the world’s currency is worth when they have one tenth of one percent of the worlds GDP.
2:1 would equal the whole world.
3:1 as some talk of is 50% higher than the whole world combined.
Thank you for the facts. By far some of your best DD yet.
Chavez didn't get the memo.
Apparently he didn’t get word that Oil rich nations don’t have to issue new currency and lop zeros. With oil prices rising (and Kuwait sinking.. lol) they could have just revalued 100,000 percent.
I can’t believe that he wasn’t also informed of that so well know fact that only countries with hyperinflation lop. Their inflation was only 20% last year.
http://news.yahoo.com/s/ap/20080101/ap_on_re_la_am_ca/venezuela_new_currency_1
Holy cow… so that’s why. Thanks for that in depth, fact laden explanation. It certainly makes it all so clear.
So it simply doesn’t matter that there are dealers with more dinar than all of Kuwait.
That LottoPlayer all buy himself has one tenth of the total amount of Kuwaiti dinars.
20 thousand times more Iraqi dinars than Kuwaiti dinars is irrelavant... because they don't need as many. How could I have been so silly?
You have shown me the light. Someone hook me up with a dealer!… I need dinar today!!… it’s gonna reval at any second and I’m not in… PANIC PANIC PANIC!!!
Ali, GIB, DEALor BUY DINAR… HELP ME!!!
No... because unlike most, I am not emotionally tied to this or any other investment.
One of the first rules of investing... do not fall in love with an investment. It will blind you to the facts.
Like the fact that Iraq has almost 20 thousand times more currency issued than Kuwait.
If you had done true DD you would already know that.
Relying on Secret Key, Darock and other dinar pumpers who refuse to even discuss the money supply issue is a bit foolish.
Econ 101.. it's really truly that simple. Supply and Demand is a HUGE part of currency value, and for the most part the 1:1 crowd totally ignore that whole equation. Iraq has a massive supply and practically no demand for the dinar.
You are exactly right... it's just paper.
People love to use Kuwait as a comparison.
Click here and then click on Table 2, Money Supply.
http://www.cbk.gov.kw/WWW/index.html
The Total amount of Kuwaiti dinars that have been issued is a whopping 772 MILLION. That's not billion and certainly not trillion, it's only 772 Million dinars.
LOL... from your post... here is one dealer that will sell you 100 million Iraqi dinars at a time.
8 people make that purchases and it would top all of Kuwait.
Last I checked Iraq has about 13 Trillion dinars outside of banks, and about 9 Trillion in banks. We'll just say ¼ of that nine is issued dinars so that's a little over 2 T. So I think it's safe to say that Iraq has 15 Trillion issued dinars.... or 19,430 times more issued currency that Kuwait.
STAGGERING!!
The 25 billion in assets held in the US....
Can't be 100% sure cuz I haven't seen it in writing, but I'm pretty sure they are referring to Iraq's foreign currency reserves... dollars, euros, and gold and stuff.
Dinars would not really be an asset.
I would assume we are holding their reserves for security reasons.
I don't think many people realize that prior to 1986, there were no Saddam Dinars. When Iraq had the legit $3 to 1 dinar rate they only had Swiss dinar in the country. 1986 is when the first Saddam dinars hit the streets, the 25 dinar note. Then from 1990 on they were all Saddam notes.
Bob... I wish it were true that Iraq had an exchange rate of 33 cents per dinar before the war, but it's just not true. I think the 33 cent thing comes from the official exchange rate that Iraq reported to he IMF every year, but in reality was just a Saddam dictate. And it was actually over $3 that was reported.
Check this out. Great read.
http://www.usip.org/library/oh/sops/iraq/sec/tant.pdf
A few highlights.
Brigadier General Hugh Tant, retired, is a career army officer who has
extensive experience in financial management. Most recently, he spent five-an-ahalf
years in charge of two-thirds ($44 billion) of the Army's budget. He
volunteered to lead the currency exchange program in Iraq. He was stationed in
Iraq from September 2003 to January 2004. The currency exchange program ran
from October 15 2003 to January 15 2003.
Currency exchange was necessary for five reasons; (1) two currencies
were in circulation, the old Swiss dinar in the north and the Saddam dinar in the
rest of the country; (2) inadequate numbers of denominations existed, the Swiss
dinar came in 3 denominations and the Saddam came in only two denominations;
(3) the currency was poorly made and easily counterfeited; (4) the Saddam dinar
had been devalued and the public had little trust in it; (5) the presence of Saddam
on the currency was inappropriate.
TANT: You had the Central Bank which answered, of course, to Saddam. And
whenever he directed, they had to print more money, which was a negative inflationary
monetary policy. That was one of the reasons why the currency had to be replaced.
But, in the great majority of the country, they had the Saddam dinar with Saddam's face
on it. There were basically only two denominations of that: there was a 10,000-dinar
note, which was worth about $5, and there was a 250-dinar note, which was worth about
12.5 cents, 12 cents. The reason its value had dropped so low was because of Saddam’s
inflationary monetary policy. In comparison, back in the '80s, before the Saddam dinar
came about, the rate of exchange was about $3 to one dinar. But because of Saddam
there was now a total upside-down situation where one dollar was worth about 2,300
And the Central Bank of Iraq reports this. I wish the chart went back to the early eighties, but only 91, but it looks pretty obvious that back in the eighties, early eightie when Iraq had that legitamate $3 exchnage rate they had a money supply somewhere less than 24 billion.
http://www.cbiraq.org/Binder4.pdf
Year.........M2............Exchange Rate ID/US$
91.............24.6B.......10
92.............43.9B.......21
93.............86.4B.......74
94.............238.9B......458
95........….705.1B......1674
96........….960.5B......1170
97........….1.03T........1471
98.........…1.35T........1620
99.............1.48T........1972
00.............1.72T........1930
01.............2.15T........1929
02.............3.01T........1957
03.............3.78T........1459
Money supply to GDP ratio.
When I was invested in this I compared numerous countries in many different ways. One of them was money supply to GDP ratio.
These numbers are about a year old, o they may have changed a bit, but they haven't changed enough to really make a difference in the point they make.
(high value currencies)
Kuwait has a money supply that is 106% of it's GDP
Malta is 125%
Bahrain 64%
Oman 154%
UK 36%
Latvia 30%
Jordan 68%
USA 55%
(low valued currencies)
Korea 163%
Mongolia 17%
Tanzania 8%
Columbia 16%
Belarus 10%
Venezuela 41%
Indonesia 15%
Iran 17%
Vietnam 20%
Saudi Arabia is 41%
Iraq is currently about 20%... which is pretty much right in line with all these other countries.
If they were to revalue to 1:1 their money supply to GDP ratio would be 21600%. That would put them slightly out of line with the rest of the world.
Even 30 cents per dinar would leave them with a ratio of about 8700%... still a bit out of whack.
If they went to 200%, which is still higher than any other country on the list. The rate would still be less than a penny... about .7 cents per dinar or .007
A 100% ratio would be about .3 cents per dinar or .003
Interesting... this positive minded person has practically the same exact opinion that I do.
Fact, a instant RV of 1-1 with the US dollar is impossible with the current Iraq GDP Unless they can instantly decrease the amount of dinar in circulation by ~ 90%. The present Iraq GDP would not support a 1-1 RV and neither would it be sanctioned by other countries and the IMF. Currency has to have support and that amount of currency could not be supported by Iraq.
Strong... I hear what you are saying. Adster has been saying that for over a year now. My question is...
How does the exchange rate... no matter what it is, 1:1 or 1000:1... just how does exchange rate effect inflation?
There are a lot of things that can cause inflation. But mainly it's too much money chasing too few goods. So it's either too much money being added to the system or not enough goods to meet demands. I'm positive exchange rate has nothing to do with inflation. The exchange rate might change due to the effects of inflation but the exchange rate itself will not have any effect on inflation.
Duh… lol… you truly have no clue how things really work.
Sanctions in and of themselves would have absolutely no effect on the exchange rate.
The sanctions may and probably will cause high inflation due to a number of reasons and if a countries answer to inflation is to print tons and tons of money in higher and higher denominations as Iraq did, then those are know as inflation generated zeros on the currency. Inflation generated zeros are removed only in one way… reissuing a new currency and lopping. 70 times it’s happened that way. ZERO times have countries simply revalued back to the old rate.
Everyone likes to use Kuwait as the example.
Kuwait was invaded Aug 2nd 1990, they were liberated on Feb 27th 1991,
That’s 7 months. One month later on March 24th, they rolled out a new currency at the new/old rate. So 8 months total.
Kuwait dropped their rate only for those few months and it was only on cash currency. The reason was Saddam broke into the central bank and stole about a trillion Kuwaiti Dinars. So one moth after being liberated, Kuwait rolled out a new currency and swapped for the old and checked every single serial number to make sure that the stolen dinars were not honored. So effectively they lopped the stolen dinars.
Yes... and it would make Iraq's finacials very comparable to the other countries. Currently they are 1000 times out of whack, that's the reason their rate is 1000 times worse. Remove the 3 zeros, same as reducing 1000 times and then they can improve the rate 1000 times to 1:1
Being a terrorist state or not has nothing to do with it.
The other countries you speak of all have currency numbers in the low billion numbers.
Kuwait 16 Billion
Malta 3.2 Billion
Bahrain 4.3 Billion
Oman 4.4 Billion
Cyprus 11.8 Billion
Jordan 13.9 Billion
Iraq 21 Trillion
Look at Venezuela, exchange rate 2147, it’s not because of the leader of the country, it because they have a money supply of 66.5 Trillion.
Iran’s exchange rate is 9252, their money supply is 950 Trillion.
Four years into this and you are still hanging onto the false impression that Iraq had a great exchange rate prior to the war. It’s reported over and over that Iraqis were only using two bills before the war, a 10,000 dinar note and a 200 dinar note. Do you really think they had a .30 exchange rate. That would mean Iraqis in a dirt poor country were only using a $70 and $3000 dollar bill.
The truth as reported by the Central Bank Of Iraq. Iraq’s exchange rate hasn’t been under 1000:1 since 1994… 14 years ago.
http://www.cbiraq.org/Binder4.pdf
Year.........M2............Exchange Rate ID/US$
91.............24.6B.......10
92.............43.9B.......21
93.............86.4B.......74
94.............238.9B......458
95........….705.1B......1674
96........….960.5B......1170
97........….1.03T........1471
98.........…1.35T........1620
99.............1.48T........1972
00.............1.72T........1930
01.............2.15T........1929
02.............3.01T........1957
03.............3.78T........1459
Please answer the question. We have seen literally hundreds of articles over the last 3 or 4 years talking about how imperative it is for Iraq to have their debt forgiven. That debt was a total of $300 billion.
Why on earth would Iraq give out TRILLIONS of dinars and revalue at 1:1?
That would be an instant debt of how ever many trillions people and countries hold.
Why would they have not just revalued to 1:1 right from the beginning and paid off the $300 billion and have the 20 or so trillion left for themselves.
Answer is it simply can’t be done.
Heavy… you can spit out I’m wrong to every post I make, but until you provide some type of a counter or explanation why I’m wrong you look like the child you are.
Strong… there are quite a few people on here talking 1:1.
TMCC posted this yesterday… “Say, when it REVALS to .81 or 1.23 or 3.22.”
And it received the typical “great post" replies.
You say “$30 trillion in oil equals 1:1”??
At the current rate it will take 410 years for them to get that out of the ground. Even at 10 mbpd it would take 82 years.
The United States GDP will produce that same $30 trillion in just a little over 2 years.
Plus they have 3 times more currency than the US… (not including the silly 20 trillion US rumor)
So they have 3 times more currency to support and it will take them 80 to 400 years to produce what we produce in a little over 2 years…
That is nowhere near a 1:1 comparison.
The Minister of Finance is talking about 1:1 and removing 3 zeros. It is brutally obvious that he’s referring to a lop. Reducing their currency from trillions to billions makes that comparison work pretty well and is the only way they will get to 1:1.
At the current production of 2 million barrels a day and $100 it will take them 300, yes three hundred years, to get $22 trillion worth out of the ground.
Even if they bump it up to 10 million a day, it will take 60 years.
Please... just think for a second. The totality of Iraq's debt before this all got started was 300 BILLION.
I repeat, 300 BILLION dollars. That's a lot for a country like Iraq. But 300 Billion is a mole hill on a mountain when compared to 22 Trillion. It's 75 times less than 22 T.
The $300 billion debt was considered overwhelming for Iraq to handle. Now people are here claiming the US is holding 22 Trillion dinar waiting for a 1:1 revalue which would immediately put Iraq $22 TRILLION dollars in debt just to the US, not even including what these people think other countries are holding and what's in Iraq and in the hands of speculators. Currency is a LIABILITY. The same people that are saying debt forgiveness (of less than $100 billion now) is key, are the same people who claim that all these countries are holding trillions of dinars. The whole thought is preposterous.
They only need 29,569 loans of the same value to cover the 22 trillion dinar the US has when the 1:1 happens… any day now.
Great plan…
So we have 22 trillion that we will cash in for oil after a 1:1 revalue. It will have to be for oil because they surely don’t have foreign currency reserves to back their currency at that rate like every other pegged currency in the world.
So Iraq might have 300 billion barrels of Oil right.
If… If they can get to 10 million barrels a day and the price stays up to $100 a barrel it will take them 85 years to get it all out of the ground and be worth 30 trillion. We only want 22 of that, so we get the next 60 years or so of their oil. So for 60 years Iraq has to figure out how to run the country on practically zero revenues.
Then of course Britain and the other countries will step in and want the rest.
And of course there are the 3 or 4 trillion currently held by speculators, they will get their share somewhere out of that also.
I like it, sign me up.
OMG… SGS and Neno had a falling out?
What is the dinar world coming to?
Is Neno’s place still following Larry Nichols?
Or did the Exiled Alaskan take that whole crowd with her to wherever she went?
Is Larry still talking dinars or did he get tired of all the dinar questions and cut them off?
I’m really falling behind in all the dinar forum soap operas.
I never really got banned from Rolclub, tried to sign up once and it didn’t work so I gave up.
Neno’s place… I figured I would have only lasted a couple post before getting the boot, so I never tried.
LOL... how long do you think I'd last there Strong?
My check from the CBI is late this month….
It would be a rumor if I posted names, therefore I did not.
I know it as a fact, it may be a rumor to you, that posters are being approached and asked to post for pay. No way would I divulge the source, he still posts there.
When the dealers set up affiliate programs it opened the floodgates to pumping in the forums.
As for who the paid posters are, I think it’s pretty obvious. I won’t name names because I don’t know for a fact anyone specifically.
I’ve seen proof that one of the more popular posters (less popular than the big 3 or 4) over there was approached by the admin and asked to become a paid poster. If he’s being asked to pump for pay, then I’m positive that many others have been also. Do you think they all turned him down. Some of those guys are literally on that board 24 hours a day.
There’s no real point… facts are still facts… rumors (22 trillion held by the US… LOLOLOL) are still rumors… just something to keep in mind.
Food for thought.
I always suspected it, but as of last night I received confirmation that proves to me 100% that a certain dinar forum, the big one, the one that many rely on for their so called DD… They pay certain posters to post. No doubt about it, there are paid pumpers on that dinar forum.
LOL... A dealers dream come true
Bears repeating.
http://convention2.allacademic.com/getfile.php?file=apsa05_proceeding/2005-09-05/40104/apsa05_proceeding_40104.pdf
In countries where hyperinflation has occurred (Iraq in the 80s and 90’s) , governments face an uphill struggle when it comes to regaining the confidence of international markets and domestic constituents. The most direct means is through a stabilization program, which generally involves using either exchange rate-based or monetary-oriented targeting; increasing the operational independence of the central bank; and removing distortionary economic policies. In many cases, such stabilization occurs the aegis of an IMF standby agreement. (That all sounds VERY familiar) Redenomination (lop) can play into this process, in two ways: first, it can be used at the end of a stabilization, to signify to citizens and private markets that the days of high inflation are over. Used in this way, redenomination is largely symbolic: inflation has been tamed via other means, and the removal of zeros simply serves to remind citizens and investors of the success in fighting inflation . or to remove a very visible reminder of an inflationary past. A new currency is largely the result of, not the cause of, stabilization (Bernholz 1995). When this mechanism holds, we should expect that redenomination will occur after a period of high inflation, but also after that inflation has been removed from the system; a dramatic downward change in inflation should increase the chances for redenomination. (read that again, a new currency is the RESULT of reduced inflation, it is not the cause of it) Pressures from international capital markets, from the IMF, and from politically independent central banks can help motivate anti-inflationary measures (e.g. Simmons 1994, Stone 2002), as well as subsequent redenomination.
Russia lopped after they got inflation under control.
http://www.sjsu.edu/faculty/watkins/russianinfl.htm
Well... it' certainly not official.
But it is one more article that interprets the 3 zero thing as a lop. There are quite a few now that interpret it that way... and there has yet to be one single article in the two years since the MOF laid out the plan that interprets it as a 120,000% increase.
So... Seventy lops in the last 40 or so years. Zero revals like is expected here. Many many articles that discuss this as a lop... Zero that talk about a huge reval.
More Lop talk... guess someone needs to tell this guy that it's only off the exchange rate and that everyone will be millionaires.
Hossam Acommok
What happens if any of us woke up to find that every thousand dinars from the wallet had been deleted from three zeroes?. Regardless of the theory maintain the real value of the amounts owned by the Foundation should not impose cash on such action to pave his campaign would tame citizen to deal with this emerging Giralmalov especially as the Finance Minister promises to the project two years ago did not stop for a moment and the Central Bank on the first and last silent if not deny often adopt such a policy?.(Talking about the MOF plan from June of 06 to lop 3 zeros from the currency.) http://www.iraqdevelopmentprogram.org/idp/news/new1297.htm
(No doubt that is a lop.)
Far from passing the Specter say that on the horizon are indications of this project but the issue is concentrated in the timing of such a measure, which does not appear to be accelerated, but in any case must be Marking orientations and adopting sufficient safeguards verification of the assumed interest built, and not what the feasibility of foot the draft may confuse domestic monetary transactions and possibly regional There were not the benefits achieved from that procedure?.
The stated objective of the project and the borrower zeroes deleted from any currency quest to improve economic performance indicators across reducing inflation and raise the purchasing power of the monetary unit is dinar us, and that is usually coupled with the reform measures commensurate with the nature of the economic environment and patterns Aladaoualve adoption, and only if such action Metrk without the cover supportive of the directions quickly exposed to a setback
like that against a strengthening of the dinar exchange rate against the dollar did not succeed in achieving CBE dream reduction indicator of inflation by reducing the dollar by twenty percent of the prices prevailing at the time, which led to the alarming reality of failed in reducing the prices of goods and services which were supposed to be down low level of the dollar, but aggravate the situation because of random market transactions to increase those prices rising rates and inflation indicators flying higher than it was in spite of some of the data so arrogantly propaganda claiming that inflation, which stood for the current year 4 / 20 percent means that the decline has occurred in the indicators than it is in that of the last year of more than 50 percent, without the courage to acknowledge that index this year plus record of the year before that as a roundabout did not adopt benchmark year was mainly supposed to be for example, in 2004 to record changing any negative or positive indicator of what is achieved in the rates of inflation. (The 20% increase has not worked as hoped)
It is enough to remember what Turkey adopted two years ago here when it canceled six zeroes from its currency to one after the hyperinflation in the country to the extent that when bread six million pounds and the price of a cup of coffee with four million pounds,
but the procedure did not achieve the expected success of it because it came as solo has started reinforced economic measures supported. (Says that the Turkey 6 zero lop did not work) could strike as an example the experience of Mottagabla Italian lira by it that the Italian economy Problems Alasfarohmom tricks seminars parasitic breakdown while Italians to overcome the economic crisis in the wake of their country's defeat in World War II, Fastaedua the economy remained Italian lira example for contracts the last three approached the same level of the last thousand Dularahit equivalent of the Italian lira, in spite of the Italian economy is still one of the strongest economies in the world, then that is not necessary or tied (notes how when the Italian Lira suffered in WW2 they did not lop and their economy grew to be one of the strongest in the world)(Italy's exchnage rate was about 1500:1) resembles similar criticism of the currencies of the world Igdhumicenaw Tekda_i_haddena various examples such as the Japanese yen or the Russian ruble, but the laying of zeroes can be a catalyst morally play its Kmaasilvna procedures economic supported all combine in the face of Alazmhalkaemh Taziezkimh dinar and improve economic performance overall.
http://64.233.179.104/translate_c?hl...6sid %3D34519
Well Bob. As I said, this is where we disagree.
Money Supply is a liability on a countries financial statement.
As with all pegged currencies Iraqs currency is backed by foreign currency reserves. Which are the countries assets.
When that “massive money returning” to the CBI happens as you describe… the CBI has to defend the exchange rate by PURCHASING the dinars returned. Just a one zero lop would bankrupt the country. It would only take 3 of the 21 trillion dinars currently out there to be turned in to eat up the entire $30 billion they have in reserves.
LOL... Let's not get carried away here.
It appears to me that they want to revalue to 1000:1
We’re all good on that part.
Then they want to delete three zeros and go to 1:1. Afraid that’s where we differ . I believe that’s a lop, others believe it’s a straight revalue.
My point is this is all coming from the Finance Minister, who should be a pretty good source. He has claimed this, and has stated that there is backing for the plan at the CBI now and that they will take it up in the next 3 months, maybe sooner.
The CBI has yet to weigh in… until today when they had to say something because speculation was driving the rate down.
I suspect they will tell the MOF to put a lid on it until an official decision has been made.
So… no big turn around for me.
I said a long long time ago that I thought the dinar could rise to 1000:1.
It may get there a little faster than I thought, but that's been helped along by the sagging dollar.
There is a huge difference in a penny rumor started by an anonymous person on a web-site or a well known scam artist crook CEO… compared to the current rumors on the dinar which were reported on reputable web-sites and were the words of the Finance Minister of Iraq.
I would say in this type of thing the rumor comes true about 90-95% of the time.
Because of what was happening in the market the CBI was forced to step in to quell the speculation.
Explained... Bull run on Iraqi dinar too good to be true
http://sg.news.yahoo.com/rtrs/20071213/tbs-iraq-forex-955c2a1.html
So you guys are really convinced the Iraq has announced months in advance that they will increase the dinar value 120,000%?