Iraqi Dinar Guru opinions 6-23-18
Iraqi Dinar Guru opinions 6-23-18
6-23-2018 Newshound/Intel Guru Mnt Goat FLOAT vs PEG…[Guru] Kaperoni insists that the dinar will not be revalued and that it is not even going to go through a reinstatement. He believes the market will drive up the value of the dinar. …Sure I too believe there is not a planned “revaluation” from the sense of the IMF terminology. Rather the term “revaluation” most of us are now using is being used to mean ANY substantial increase in the value of the dinar worth going to the bank to exchange. In other words, some kind of return on my investment. But here is the important part… How will the IMF re-peg the dinar to the SDR basket of 5 currencies without adjusting the rate?…I tend to like Kaperoni because he is a good researcher and tries very hard to keep things factual and accrate. However…
6-23-2018 Newshound/Intel Guru Mnt Goat I do not agree with his analysis…on this issue of a Float vs Peg. [reference Guru Kaperoni post 6-19-2018, part 2] …the “peg” that the Iraqi dinar is currently on is a “de facto” peg, pegged to the US dollar only. A currency, any currency, must be pegged to something to stabilize it’s value thus something to relate it to. Putting the dinar on a float and pegging the dinar are entirely two different things…It is not one or the other…but BOTH. A currency can still be pegged and the also placed on a managed float at the same time. These are two different tools. The float allows for ease of fluctuations in the rate as demand suggests in the market. A peg is used to attach a currency to another country’s currency (or countries currencies) to stabilize it’s value and spread the risk (so that if one fails the others still maintain some value and they all don’t crash).
6-23-2018 Newshound/Intel Guru Mnt Goat Thus, the dinar is still to be pegged (and must be pegged to something) and yet can still be put on a float. The IMF has told us many times they fully intent to peg the dinar on an SDR basket of 5 currencies initially and then allow it to go on a managed free float. …This is all spelled out already by the CBI years ago what they intend to do. But the important part here I want to emphasize is that when the CBI changes over from the de-facto peg of just the US dollar to the SDR basket, a new rate must be re-established according to the new peg, the SDR basket…This new peg adjustment to the rate is the rate everyone is talking about when they refer to an RV.
6-22-2018 Newshound Guru Adam Montana [Regarding the Article 8 requirement that a country must maintain no more than a 2% differntial between the official rate and the market rate for 90 days before it can transition to Article 8…. Since Iraq finally was able to maintain that compliance for 90 days as Friday, June 15, and since Iraq does not appear to have been motivated to do that until now, do you agree this is a good indication that Iraq wants to move to Article 8 shortly, especially since they’ve been had trouble maintaining less than 2% previously?] Compliance/entry into Article 8 does not magically influence the world to resume trading IQD in the same manner as we do other currencies you can find at any old exchange desk… all the way down to the mexican peso! Thinking about it this way can be a bit of a distraction, so I try not to put a ton of emphasis or importance on “Article 8″. The IQD will become “internationally recognized” once Iraq itself puts their faith into it – and that will be symbolized/shown with an RV. When the CBI changes the rate, nobody will care about Article 8.
6-22-2018 Newshound/Intel Guru tman23 The truth of the matter is Iraq has plans to implement monetary reform and get off the additional 3 zero money system. …THE FIRST THING YOU WILL SEE HAPPEN… The Introduction of the new currency… This is NOT A TURN ON THE ATM EVENT AND RELEASE THE NEW CURRENCY NOTES… THIS WILL BE AN EDUCATIONAL PROCESS. They will introduce and describe the new currency notes and security features to EVERYONE…EVERYONE WILL SEE THE START OF THE EDUCATIONAL PROCESS AT THE SAME TIME ON THE NEW CURRENCY AND NOT JUST INSIDE OF IRAQ… PEOPLE TRAVEL TO IRAQ AND EXCHANGE TO USE THEIR CURRENCY SO THE WORLD WILL KNOW OF THIS CURRENCY NOT JUST IRAQI’S… This is an exact statement made in Iraq “The new currency must come first as a prelude to lifting the 3 zeros from the currency notes”…Make SENSE? AND 3 zero notes will never ever FLOAT…
6-22-2018 Newshound Guru Don961 “Iraq discloses designs for redenominated banknotes slated for July 2013″ Were they poised to do this in 2013??? … did DRS [Dr. Shabibi] and the CBI have everything ready to launch??…oh yes!!!… …this article came out in July 2012… “The independence of the CBI suffered a setback in January 2011 when former Prime Minister al-Maliki won a court ruling that placed independent institutions, including the CBI, under the control of the cabinet. In January 2012, the CBI raised the exchange rate of the Iraqi dinar to $1.19, causing a huge crisis that led the Supreme Judicial Council to issue an arrest warrant for CBI governor Sinan al-Shabibi in October 2012 on charges of corruption.” It was that close!!!…imo.
6-22-2018 Newshound Guru BobTheTaxMan …The sanctions that were imposed on the CBI had been taken off and what people may not realize is that the Central Bank of Iran (not Iraq) have been siphoning U.S. Dollars from the CBI into Iran…Well the Central Bank of Iraq was approached by the U.S. government saying, “hey this doesn’t help us…this isn’t going to work and you’re still under sanctions.” So the CBI says we see what you’re saying so they shut them off [Iran]…if you would have watched the news you would have seen where the Central Bank of Iran had sanctions imposed upon it and the flow of money going to them got cut off because the Central Bank of Iraq said nope we’re done. One week later the sanctions that were imposed [On the CBI} since clear back in the 90’s (since the invasion of Kuwait) are now gone. The CBI is fully functional. It has the ability to do everything it needs to do…
6-22-2018 Newshound Guru Kaperoni [Many…say that the CBI has said “NO FLOAT”…] A float solves that issue…here is the problem with that “no float” comment…the CBI has stated on at least 10 times they will float…my view is that the CBI was simply saying they could not float at the time…which makes sense…they were out of compliance and not ready… if the CBI expects (and they do) large investors investment coming to Iraq it will create pressure on the financial system…A peg must go…there is only one alternative…a float…and the IMF made it clear…move to a more liberal exchange rate regime… it will rise fast then… put the words liberal exchange rate regime in google…those are the IMF words not mine…answer…floating or flexible exchange rate.