Iraqi Dinar Guru opinions 4-14-18
Iraqi Dinar Guru opinions 4-14-18
4-14-2018 Newshound Guru G-Lin Article: “The central bank goes beyond the red lines ” Quote: “…the target set by the Central Bank is to reach the exchange rate of 1200 dinars per dollar has already been achieved, which will be reflected on the decline in demand for the dollar in the window selling the currency and the parallel market in addition to the rise in oil prices…” I’ve been wondering when they would bring up that targeted price of 1200 dinars again. I thought at the time, why have they targeted that price? It could be time for a change. Maybe float, move the decimal point over. We don’t know and we are not suppose to know. But they seem to be compliant and very stable even with all the b.s. going on inside Iraq and outside as well. Nothing seems to be negatively affecting the C.B.I.’s plans for the currency. Very encouraging art.
4-14-2018 Newshound Guru Kaperoni A lot of people still tussel with the fact that the CBI could re- denominate. That makes little sense especially when they’re working so hard to manage monetary policy, reduce the spread etc. There is no intention to introduce a new currency, the currency of Iraq is the IQD…Yes the CBI does plan to introduce lower denominations but this will occur over time as the currency appreciates gradually.
4-14-2018 Newshound/Intel Guru Mnt Goat …So for the CBI to RV, there are issues that need to be resolved …these issues are long standing and the GOI has been trying to resolve them all along. Yes, I do believe the part of the “project to delete the zeros” is completed because they told us it was. But this does not automatically tell us the RV is imminent. They even told us there are still issues they need to work on and that these issues are unrelated to the project to delete the zeros…So they came out recently and gave us an update last week. …they go on to say in the article just where they are today in the “project to delete the zeros” Quote: “THE GOVERNOR OF THE CENTRAL BANK, ALI AL-ALAQ…”THE SUBJECT OF DELETING ZEROS FROM THE CURRENCY IS READY, BUT IT NEEDS AN ENVIRONMENT SUITABLE TO APPLY,” NOTING THAT ” TO PREVENT MANIPULATION AND FRAUD…” …this article just came out on April 4th so give them time to resolve what issues they need to resolve to prevent this manipulation and fraud they make reference to.
4-13-2018 Intel Guru RayRen98 We’ve had a rash of bank stories coming in…Most of them have the banking community saying this will happen by the end of the month. These stories are from people who went to the bank and spoke directly to the branch managers, first or second hand. Here is the latest one: “My husband is on the phone with a friend that went to [the bank] here in New York to buy dong. The manager there stated that they do not handle the currency at that specific branch but that it could be purchased at several of their other branches. Then the manager told her that something really big was going to happen on the 29th of April regarding currency. The bank manager told her he could not tell her any more than that but it was really big!”
4-13-2018 Intel/Newshound Guru sandyf [Since the CBI is saying that the current notes will co-exist does that then indicate against a redenomination?] …It is a perfectly valid question and you are quite right that under normal circumstances they would only co-exist within the country concerned. Dual pricing would come into effect and all goods would be priced in both currencies. It would be normal practice to refer to the new currency as “new” and then a couple of years down the road, drop the term “new”. If a redenomination were to go ahead as normal then it would be a write off as far as I am concerned. I would not consider going to Iraq and the cost of sending it in any “dealer deal” would probably be more than I would get for it. There is one factor however that may produce a lifeline…
4-13-2018 Intel/Newshound Guru sandyf There has never been a redenomination where such a large percentage of the currency in circulation has been outside the country, estimates are around two thirds, so whether that would constitute special circumstances and lead to special arrangements is anyones guess. It is a tricky one for the banks, the old currency, IQD, will no longer have a quoted value, 1000 of the old currency would be exchangeable for 1 of the new currency, and it is the new currency that has the quoted value.
4-13-2018 Intel/Newshound Guru sandyf A currency redenomination was approved by the Iraqi cabinet back in 2007 but the CBI has continually postponed the move. One thing that should be borne in mind, there can never be an overnight RD and nor can it be in secret. It is a complex process that requires a lot of planning and the involvement of external entities. If it is going to happen there will be plenty of warning.
4-13-2018 Newshound Guru Kaperoni We’re monitoring the IMF on a daily basis for any indication that the CBI plans on writing the letter to transition to Article VIII but we don’t expect anything until at least mid June.
4-13-2018 Intel Guru Bruce What I am getting is really amazing because where we are right now is interesting. We got people that are under gag orders. …we were looking for this to occur this week… it just didn’t happen yet. …We do know the ATM machines are loaded with and ready to go with the lower denominations, but it does no good to have them unless you have the new rate to be effective and be useful. We are waiting for those ATMs to be turned on. …We are looking at the possibility of getting started anytime I heard…Saturday till Monday possibly into Tuesday. I am not hearing anything beyond that personally… I feel we are at a great place in terms of everything having been done, everything ready for us.