Iraqi Dinar Guru opinions 12-22-15
Iraqi Dinar Guru opinions 12-22-15
12-22-2015 Newshound Guru Millionday Article quote: “The Central Bank of Iraq, on Monday, reduced the value of the dinar against the US dollar. According to a statement of the bank, that “lifting of US dollar selling to banks and exchange companies rate by 16 dinars any by 1.37 percent to 1182 dinars.” SO THE RATE HAS BEEN ADJUSTED AND THE INTERNATIONAL RATES ARE BEING CALCULATED FROM THIS VALUE ADJUSTMENT — THE CONVERSION IS THE GOAL AND THEY ARE CURRENTLY WORKING ON THEIR GOAL AND OURS… WHOOOPPOW.
12-22-2015 Newshound Guru Kaperoni from CBI site – “Board Resolution No. (329) for the year 2015 (the exchange rate)” So some are wondering why we saw that 1182 rate and Iraq didn’t pick up on it until today…well these CBI docs show us..that the board approved the rate change on 11/30..effective 12/1 (which it changed on the CBI site). but the actual announcement didn’t come out until 12/18 (media). They also tell us the CBI bank rate now at 1190 which means the 2% spread is 1214. So the dinar Market Rate has to be 1214 or less than that. And today it is 1220 which is out of compliance. It is frustrating, but the rule is more for the CBI than the IMF. They want the CBI to know how to manage the spread before the playing field becomes international.
12-22-2015 Newshound Guru Enorrste Article quote: “lifting the US dollar selling to banks and exchange companies rate by 16 dinars any by 1.37 percent to 1182 dinars.” It seems to me that the CBI is moving in this direction primarily to stall the drop in their reserves, irrespective of any “international standards” that they reference. In that sense, this is a good move for the short term. The article also stated that it would give them “6 months” of time. I don’t think that that means that they will run out of reserves in 6 months. Instead, it is more likely that they are buying some time to implement the IMF agreement to move to a float. I therefore conclude that we will see a movement to a new exchange rate regime within 6 months and that this “tweeking” of the rate is an assurance that their financial position will be secure through that time period.
12-22-2015 Newshound Guru Enorrste Once the float begins the rate will rise. Furthermore, it is clear that this is not a “panic” move on the part of the CBI. In fact, Saleh stated that it is NOT a devaluation but is instead only an ADJUSTMENT. I have no reason to doubt that statement. It is consistent with the small size of the change and with the statement implied that they are buying time (6 months) to get in line with “international standards.” Remember, it was the IMF that stated that Iraq would move into the “world market” at the beginning of the new year, or shortly thereafter. In my view, the phrase “world market” and “International standards” are synonomous. I hope I am correct.
12-21-2015 RUMOR Guru Mnt Goat We still await for the “official” word from the CBI to allow the distribution of the new lower denominations. We know this must first be accompanied with a significant increase in value and we are told it will be a 1:1 par value with the US dollar. This is NOT the RV but an inflation adjustment and only an incentive to “dedollarize” the economy and reverse the trend in demand from the US dollar to the Iraqi dinar thus increase the demand for the new lower denominations. This would thus allow Iraq to withdraw or “de-dollarize” their economy as they would suck up US dollars are replace them with the lower denominations. This would happen because the citizens would migrate towards the new dinar since it would be worth more than the dollar.
12-21-2015 RUMOR Guru Mnt Goat Do they need a very significant increase in order to do this? NO! All they need in-country is a value to the new dinar to be just over a dollar to create this incentive. Is this the RV we have been waiting for? NO! – this move to a 1:1 par with the US dollar is just an inflationary measure they will undertake. The full RV ($4.00+) we are waiting for will come later in about 7-14 days and will depend on how stable the economy is and how this whole process works out. It may take longer or it may be shorter. I personally believe we may see the 1:1 value pop out as the lower denominations are circulated sometime before now and the end of the year. But I do not expect to be at the bank before sometime until mid to late January 2016.
12-21-2015 Intel Guru SteveI The news keeps getting better and better each day. Very soon you will get the best news yet!
12-21-2015 Newshound Guru firefly CBI Announcement: “The Ministry of Finance approved on 2015/12/16 conduct a public auction auction (Y16) for the sale of the treasury for their remittances (364) on 12.20.2015.” “To / all licensed banks and licensed money transfer all companies and financial investment companies and broker the buying and selling of foreign currencies approved all companies (foreign exchange rate) 12/20/2015 Board Resolution No. (329) for the year 2015 (the exchange rate)12/18/2015.” [It is coming!] oh yeah…make no mistake about it! …funny, those announcements weren’t there yesterday when I checked. Not surprised, many items going on behind the scenes that only appear after the fact. [does that mean they are approving or have approved the exchange rate?] According to the CBI, certainly makes one think so.