Thread: Iraq/Dinar News. 09/05 to 01/14/07

A statement was made earlier that in order for the Dinar to peg at .40 USD Iraq would need to have at least 7 trillion dollars in reserve to accomodate the 14 trillion or so Dinars that would be exchanged? Did I get that right? My head hurts....

After reading here the last couple of days , I don't believe anybody wants to trade in Dollars anyway. Not even us Americans

Cheers , Kevin

Originally Posted by bluepacific

After reading here the last couple of days , I don't believe anybody wants to trade in Dollars anyway. Not even us Americans

Cheers , Kevin

Another hot currency point noted ...great tip there Kevin... wondered if you realised that???....LoL.

maybe im wrong but if you live in the U.S.and the dollar gos down and the dinar gos up the revalue will be even sweeter

Wasn't there supposed to be some big meeting today in Iraq that could possibly usher in the long awaited peg? Still crossing fingers and toes for tomorrow!!

Originally Posted by whatever

Adster, Mike: This is from Loops in a different thread. (I didn't want it to get lost, so I hope it's OK that I moved it here) Comments??





Today, 05:42 PM
Loops
Junior Member Join Date: Jun 2006
Posts: 5



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I agree adster we agree to disagree.

I dont believe there has been any country that has backed their currency with a commodity before.

That is a very dangerous move to pull.

For instance if yogi was right and the shales did manage to get through congress etc then the price of oil would drop significantly devestating the iraqi economy.


How can you claim to have a stable currency and then back it with an unstable commodity?

Im also preeeetty sure iraq does not have the 7 or so trillion dollars required to back 14 trillion dinars at 0.40.

Yes i knew about the "significant rise in 2006" but how significant is significant?

For a currency trader it could well be 1000-1.

Bearing in mind that the dollar vs euro changes in a very small range.

What will happen with rising prices and less subsidies is wages will increase to compensate for the increased costs.

That wont be good for inflation however.

If it goes lower i expect them to zero lop and reprint the currency.


Thats also a mighty big if there adster. Once it is at 0.40 i wouldnt be so sure the banks would buy it up as there would be an initial huge huge huge sell off of almost everyones dinars (you know both of us would) which would cause a drop in price(we will pretend they have the reserves to do this in the first place).

Because everyone is selling the exchange rate will go down. The banks surely know this and would not buy in untill it had dropped. If I can work this out them im sure the financially trained hedgefund managers can too.

Why would they buy into a falling market?

Based on this new analysis do you still have reason to believe that it could occur?


Respectfully yours,

Loops.

im not mike or adster, but just wanted to comment.

whenever i read comments like that, i always wonder how they expect they will ever get the $$$ reserves up if they don't change the value of the currency. if it stays at 7 hundreths of a US cent, then they are honestly getting screwed, but if a reval is done at say .30/$ then they will obviously be taking in exponentially more dollars than they would have been trading oil or anything else for that matter at the current rate. without a reval at whatever amount, they are just insuring that it will take decades to make it to world player status, not even mentioning the fact that at .007/$ that any company worth having will be owned by westerners once the market is open to foreigners.

i do agree with loops with respect to the volatility after a reval at that amount, or any substantial amount. there will be many cashing in, but that will include Iraq. at the current exchange rate if Iraq were to import ANYTHING at a price of US65 equivalent it costs them approx 9300NID, at a rate of .30/$ that same import would cost them close to 195NID. also at the current exchange rate, the USD or ANY currency reserves will never build up unless there is a reval because they would take years to build up reserves, if not decades at the current price they are having to pay per $$$ (for ex). if works out well right now for us speculators because we are expecting to benefit, but to have to pay 145NID to acquire 1USD is a very expensive proposition.

i still haven't ruled out the possibility of a reissue of the dinar in combination with a reval, but it just doesn't seem likely to me. I saw the value of the dinar as artificially weak at the current rates, that is why i bought in. i firmly believe that in the next 5 years or so that Iraq will be appraoching status as one of the richest nations in the world. as much as it may pain me to say this, if my feeling about Iraq is correct then GW will be very popular there because without him going to war there, it NEVER would have happened.

sorry for the ramble,
jon

Thanks Jon, I really appreciate the breakdown of Loops post because I don't know much about currency trading and all the ins and outs of the dynamics behind a peg/reval. Like my granddaddy used to say, "You can never learn less." I need Tiff to come in and give us a Dinar pep talk!

Hey All! I missed about 8 pages worth today...so busy with Father's Day...HAPPY FATHER'S DAY to those that are celebrating, by the way!

To me it's one of the simplest things to wrap my brain around these days....
The price of oil and gas has been raised...the value of the money (Iraqi Dinar) used to pay for these items in this country (Iraq) HAS-TO-HAS-TO-HAS-TO be 'raised' too! The Iraqi people would not be able to survive if all of a sudden the prices of needed items were jacked up and they still have the SAME AMOUNT of money to pay for them. Do you see what I mean?

There are some that live to argue/debate...I am not one of those people. I find it tiring and rediculous.

All of the 'steps' that needed to be completed have BEEN completed and in quite record time, I might add!

I, personally can't wait to see what happens in the next few days...should be VERY interesting!

"WHATEVER" it doesn't evend need to be considered a 'pep' talk, you know? All the signs are there...the 'gloomers' need to just stop and read them!

Tiff

My grandaddy had another saying (thinking about him today on Father's Day).. "Do you want to be the kind of person people like to see comin', or would you rather be the kind of person people like to see goin'??" Tiff, you're definately in the first category

Originally Posted by whatever

My grandaddy had another saying (thinking about him today on Father's Day).. "Do you want to be the kind of person people like to see comin', or would you rather be the kind of person people like to see goin'??" Tiff, you're definately in the first category

Thanks for the compliment! Thinking about mine also...fond memories.

We'll see what stirs up in here later, shall we?