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

Originally Posted by greatstuff

Although we hear the Euro is surging, the IQD is also gaining ground on it. The lastest rate from AME is 1747.0.

As for why we see different rates all around, it is the difference between the market rate and the CBI rate. The dinar is not on the actual ForEx but it is traded internationally. Banks and other companies trade currencies and set the market rate by the buy/sell prices they agree to between themselves.

While the rate at the CBI was steady and they were dragging their heels on the FIL/HCL et al, neither rate was fluctuating much and they were pretty close. As the CBI began lowering rates and the laws looked like coming together and contracts were being signed for foreign investment, the market began to move.

As the CBI kept going and there was more activity, the market picked up momentum. Also, as you know, they've been reducing the circulation so demand is going up and availablility is down. The supply/demand pressure heats up the price even more and, even though they're holding the price for a few days, the supply is still being reduced and that puts pressure on the price.

As Wm. Knowles said, reaching the 10% mark has begun a feeding frenzy and the market is taking on a life of it's own and pulling away from the CBI rate. Now the CBI is keeping pace with the market rather than the other way around. Even if the CBI just put their heels up and follow the market after this, the rate will continue to rise and gain momentum for some time. How long depends on the economic news: FIL/HCL, contracts signed, more oil exported, agriculture getting back on track, etc,, etc.

I hope they do a major reval but, even if they don't, they'd have to take drastic measures to stop the momentum now.

This explains it all nicely, and ties directly in to Neno's connection and the tutorial he's been giving about the market setting the price..

Thank you greatstuff..

VERY interesting

Seat belts fastened?

You MAY get wet on this ride..:)

Randy

Fox news say he is still in US custody. CNN says Iraq has custody. Get it straight please somebody next we will find out he's in Disney!!!!

Originally Posted by bluezzguy

It's 9:18 PM right now in Iraq

i have been away for a few days ,i keep seeing jan 7th ,what is the signifigance of this day .

thanks

i just saw on bloomburg tv on the bottom that the washington journal says the pres bush works on ecom plan for iraq has anybody else seen this???

Originally Posted by chadm

i have been away for a few days ,i keep seeing jan 7th ,what is the signifigance of this day .

thanks

They're holding the price until the 7th (CBI are). We won't know their next move until the 8th (January). Meanwhile, the market is moving on and the rate is down to 1269.72 according to Oanda. Now we have several days to speculate as to what will happen on the 8th!

Read - http://www.iraqdirectory.com/DisplayNews.aspx?id=2844

Originally Posted by greatstuff

Although we hear the Euro is surging, the IQD is also gaining ground on it. The lastest rate from AME is 1747.0.

As for why we see different rates all around, it is the difference between the market rate and the CBI rate. The dinar is not on the actual ForEx but it is traded internationally. Banks and other companies trade currencies and set the market rate by the buy/sell prices they agree to between themselves.

While the rate at the CBI was steady and they were dragging their heels on the FIL/HCL et al, neither rate was fluctuating much and they were pretty close. As the CBI began lowering rates and the laws looked like coming together and contracts were being signed for foreign investment, the market began to move.

As the CBI kept going and there was more activity, the market picked up momentum. Also, as you know, they've been reducing the circulation so demand is going up and availablility is down. The supply/demand pressure heats up the price even more and, even though they're holding the price for a few days, the supply is still being reduced and that puts pressure on the price.

As Wm. Knowles said, reaching the 10% mark has begun a feeding frenzy and the market is taking on a life of it's own and pulling away from the CBI rate. Now the CBI is keeping pace with the market rather than the other way around. Even if the CBI just put their heels up and follow the market after this, the rate will continue to rise and gain momentum for some time. How long depends on the economic news: FIL/HCL, contracts signed, more oil exported, agriculture getting back on track, etc,, etc.

I hope they do a major reval but, even if they don't, they'd have to take drastic measures to stop the momentum now.

Greatstuff's post here is in my opinion well thought out, accurately analyzed,
beautifully written, first class and on the money.

Thank you, Greatstuff.

As I remember it, when China did a reval several years ago, they officially denied it was going to happen to the point where they had their denial printed in newspapers the night before it happened. I don't have a link as this was conversations from last year and on another forum. I would be shocked if we had any advanced concrete knowledge of a reval. In fact my thoughts are that we will be swamped with anti-reval info from seemingly official sources. My view on the leveling off in the value is that the CBI is taking advantage of the holidays to help wring out the weak hearted. There are those that will get antsy here and get what they feel they can get now.
What I expect to happen on the 7th or 8th will be one of these two. First they could play catchup to the market price of the dinar in order to make themselves a player in taking dinar out of the market. As aggressive as they have been in the auctions it would make no sense to allow the street to pass them by. Or they could reval. Staying the same or retracing thier footsteps would be counter productive. JMHO

Originally Posted by greatstuff

They're holding the price until the 7th (CBI are). We won't know their next move until the 8th (January). Meanwhile, the market is moving on and the rate is down to 1269.72 according to Oanda. Now we have several days to speculate as to what will happen on the 8th!

thanks,dont have time to read right now but very interested ,alot of good news since i left

MyFox Cleveland | Judge: Saddam to Be Executed by Saturday

It is rumored there will be a video of the hanging or at least the walk to the gallow which will be posted on the net probably within an hour following.