Calculated Value of IQD.

[awan]

Interested Research from a Friend. Just wanted to Share.


The second type is the currency board. A currency board is not a central bank. It does not lend money to banks. The sole responsibility of a currency board is to maintain the exchange rate between the local currency and the pegged currency.

" It must maintain a reserve of 100% of the value of the local currency in the pegged currency. So say a country has 1 trillion dinars circulating and wants to maintain a 1:1 exchange rate with the US dollar, the currency board must hold $1 trillion in US currency. "

Now according to the above qouted Statement, we will calculate Iraqi dinar's Possible Rate,

Total Amount of Iraqi dinar which have been printed or Circulating = 4360 Billion Iraqi dinar
Iraq Total Reserves : 8.4 Billion Dollar


now according to the statement if Iraq pegs its Currency to the US Dollar at the Rate of 1 IQD = 1 USD then central bank of iraq will need to have 4360 billion US Dollar in reserve . Let me do calculation in Mathmetical Form ,

IF 1 IQD = 1 USD then Reserve must be 4360 Billion Dollar.
IF 1 IQD = .50 USD then .......... 2285 billion dollar.
IF 1 IQD = .25 USD then .......... 1142.5 billion dollar .
IF 1 IQD = .125 USD then ......... 571.25 billion dollar .
IF 1 IQD = .0625 USD then ........ 285.625 billion dollar .
IF 1 IQD = .03125 USD then ....... 142.812 Billion Dollar.
IF 1 IQD = .015625 USD then ...... 71.4062 Billion Dollar.
IF 1 IQD = .0078125 USD then ..... 35.7031 Billion Dollar.
IF 1 IQD = .00390625 USD then .... 17.8515 Billion Dollar.

" IF 1 IQD = .001953125 USD then ... 8.92578 Billion Dollar."

Now u can see the relation between Currency Rate and its Reserves, i calculated total reserve needed to peg the Currency at Suitable exchange rate . in the last qouted statement, u can see we reach at the current level of reserves and on the other hand we got the suitable Exchange rate .001953 USD it is the Current hiddin value of iraqi dinar .

Fixed Value of iraqi dinar = 1 USD = 1460 IQD
Total Reserves when above Price Fixed = 5 Billion USD

Hidden Value of iraqi dinar = 1 USD = 512.03 IQD
Current level of Reserves = 8.5 Billion USD

it means Central Bank of iraq can minimum Possible peg their Currency at 1 USD = 512.03 IQD.

but still i m confused that what is the possible solution because i read another statement that Total of 300 Billion IQD are circulating Outside IRAQ. it means CBI need to hold total reserve according to the amount circulating outside the iraq , not against total iraqi dinars which are in circulation outside and inside the IRAQ . so we will calculate price in Terms of Dinar Circulating outside the iraq ,



Total Amount of Iraqi dinar which is circulating outside the Iraq = 300 Billion iraqi dinar
Total Reserves = 8.4 Billion USD

IF 1 IQD = I USD then reserves must be 300 Billion USD.
IF 1 IQD = .50 USD ........... 150 Billion USD.
IF 1 IQD = .25 USD ........... 75 Billion USD.
IF 1 IQD = .125 USD .......... 37.5 Billion USD.
IF 1 IQD = .0625 USD ......... 18.75 Billion USD.
IF 1 IQD = .03125 USD ........ 9.375 Billion USD.

" IF 1 IQD = .02734 USD ........ 8.2031 Billion USD. "

it means the possible and maximum PEG will be around .02734 and it is also the current value of iraqi dinar . i did this calculation because when dinar's rate will go UP, dinar which are circulating outside iraq will then come back to iraq to convert thus CBI must have required Reserves of Dollars to keep stable Iraqi dinar .

i hope U All will easily Understand these calculations and statements . i m looking for Comments hope u all will give Comments. thanks

[H2OLover]

Interested Research from a Friend. Just wanted to Share.


The second type is the currency board. A currency board is not a central bank. It does not lend money to banks. The sole responsibility of a currency board is to maintain the exchange rate between the local currency and the pegged currency.

" It must maintain a reserve of 100% of the value of the local currency in the pegged currency. So say a country has 1 trillion dinars circulating and wants to maintain a 1:1 exchange rate with the US dollar, the currency board must hold $1 trillion in US currency. "

Now according to the above qouted Statement, we will calculate Iraqi dinar's Possible Rate,

Total Amount of Iraqi dinar which have been printed or Circulating = 4360 Billion Iraqi dinar
Iraq Total Reserves : 8.4 Billion Dollar


now according to the statement if Iraq pegs its Currency to the US Dollar at the Rate of 1 IQD = 1 USD then central bank of iraq will need to have 4360 billion US Dollar in reserve . Let me do calculation in Mathmetical Form ,

IF 1 IQD = 1 USD then Reserve must be 4360 Billion Dollar.
IF 1 IQD = .50 USD then .......... 2285 billion dollar.
IF 1 IQD = .25 USD then .......... 1142.5 billion dollar .
IF 1 IQD = .125 USD then ......... 571.25 billion dollar .
IF 1 IQD = .0625 USD then ........ 285.625 billion dollar .
IF 1 IQD = .03125 USD then ....... 142.812 Billion Dollar.
IF 1 IQD = .015625 USD then ...... 71.4062 Billion Dollar.
IF 1 IQD = .0078125 USD then ..... 35.7031 Billion Dollar.
IF 1 IQD = .00390625 USD then .... 17.8515 Billion Dollar.

" IF 1 IQD = .001953125 USD then ... 8.92578 Billion Dollar."

Now u can see the relation between Currency Rate and its Reserves, i calculated total reserve needed to peg the Currency at Suitable exchange rate . in the last qouted statement, u can see we reach at the current level of reserves and on the other hand we got the suitable Exchange rate .001953 USD it is the Current hiddin value of iraqi dinar .

Fixed Value of iraqi dinar = 1 USD = 1460 IQD
Total Reserves when above Price Fixed = 5 Billion USD

Hidden Value of iraqi dinar = 1 USD = 512.03 IQD
Current level of Reserves = 8.5 Billion USD

it means Central Bank of iraq can minimum Possible peg their Currency at 1 USD = 512.03 IQD.

but still i m confused that what is the possible solution because i read another statement that Total of 300 Billion IQD are circulating Outside IRAQ. it means CBI need to hold total reserve according to the amount circulating outside the iraq , not against total iraqi dinars which are in circulation outside and inside the IRAQ . so we will calculate price in Terms of Dinar Circulating outside the iraq ,



Total Amount of Iraqi dinar which is circulating outside the Iraq = 300 Billion iraqi dinar
Total Reserves = 8.4 Billion USD

IF 1 IQD = I USD then reserves must be 300 Billion USD.
IF 1 IQD = .50 USD ........... 150 Billion USD.
IF 1 IQD = .25 USD ........... 75 Billion USD.
IF 1 IQD = .125 USD .......... 37.5 Billion USD.
IF 1 IQD = .0625 USD ......... 18.75 Billion USD.
IF 1 IQD = .03125 USD ........ 9.375 Billion USD.

" IF 1 IQD = .02734 USD ........ 8.2031 Billion USD. "

it means the possible and maximum PEG will be around .02734 and it is also the current value of iraqi dinar . i did this calculation because when dinar's rate will go UP, dinar which are circulating outside iraq will then come back to iraq to convert thus CBI must have required Reserves of Dollars to keep stable Iraqi dinar .

i hope U All will easily Understand these calculations and statements . i m looking for Comments hope u all will give Comments. thanks
umm using this ..... as long as they have = amounts of dinar in CBI to cover whats out of county and the RV is higer or = to the amount being cashed in they should be fine ... correct ??

once the RV happens the dinar sitting in the CBI has a new value also i think :)

[donotdenydinar]

doesn't matter what's on top of the sand.

what matters is whats beneath it - oil.

and the world not only wants it; they will have it. one way or another.

HELLO?

[Adster]

umm using this ..... as long as they have = amounts of dinar in CBI to cover whats out of county and the RV is higer or = to the amount being cashed in they should be fine ... correct ??

once the RV happens the dinar sitting in the CBI has a new value also i think :)


This is such a one off unique investments economics goes out the window. They can revalue it to what they want, they can back it with oil if they so want. You could spend all day working out figures but as far as I'm concerned the new rate has been signed sealed and just waiting to be delivered very soon.

My 1 dinars worth. :happy64:

[peakoil]

I agree in your basic calculation, BASED ON YOUR NUMBERS.
The internal rate change could very well be .02.
However, the INTERNAL rate change would awaken the "BIG MONEY".
When this happens USD would flood the CBI dramatically changing it when it is set to enter the REAL peg's to the world market place.
The magic word here is "OIL" and lots it, HIGH grade.
Once this government is formed I have no doubt that security will dramatically change, this is what foriegn investors are waiting for. In addition, a government capable of governing "DEALS".
I am convinced that there is "NO WAY" to calculate what is about to unfold. This is a huge giant who has been asleep long before Saddam killed his way to the top.
Democracy + Vast Oil = wealth to the FREE world.
Go Iraq:happy64: :happy64:

[bahmaboy]

thanks 4 the cal. i am goin to use a reval of min .19 to decide how much dinars i am going to buy.

[usakidd]

I agree in your basic calculation, BASED ON YOUR NUMBERS.

The internal rate change could very well be .02.
However, the INTERNAL rate change would awaken the "BIG MONEY".
When this happens USD would flood the CBI dramatically changing it when it is set to enter the REAL peg's to the world market place.
The magic word here is "OIL" and lots it, HIGH grade.
Once this government is formed I have no doubt that security will dramatically change, this is what foriegn investors are waiting for. In addition, a government capable of governing "DEALS".
I am convinced that there is "NO WAY" to calculate what is about to unfold. This is a huge giant who has been asleep long before Saddam killed his way to the top.
Democracy + Vast Oil = wealth to the FREE world.
Go Iraq:happy64: :happy64:

Well, the Iraqi government did form today, May 20th, 2006. This is what all us investors have been waiting for.

Yeah baby, :wave: :happy64:

Let the celebrations begin......

[Count Dinar]

I agree in your basic calculation, BASED ON YOUR NUMBERS.
The internal rate change could very well be .02.
However, the INTERNAL rate change would awaken the "BIG MONEY".
When this happens USD would flood the CBI dramatically changing it when it is set to enter the REAL peg's to the world market place.
The magic word here is "OIL" and lots it, HIGH grade.
Once this government is formed I have no doubt that security will dramatically change, this is what foriegn investors are waiting for. In addition, a government capable of governing "DEALS".
I am convinced that there is "NO WAY" to calculate what is about to unfold. This is a huge giant who has been asleep long before Saddam killed his way to the top.
Democracy + Vast Oil = wealth to the FREE world.
Go Iraq:happy64: :happy64:

Exactly, if the dinar revalued to a rate of only .02 the big money would flood in. Now my question is based on that very scenario. What happens if Iraq does decide to reval to a .02 peg or managed float, and the big money does come in and flood the country with dollars.....would that not drive the rate of the dinar up because of the amount of dollars then in reserve? Or am I thinking all cock-eyed?

CD

[Joel57]

Interested Research from a Friend. Just wanted to Share.


The second type is the currency board. A currency board is not a central bank. It does not lend money to banks. The sole responsibility of a currency board is to maintain the exchange rate between the local currency and the pegged currency.

" It must maintain a reserve of 100% of the value of the local currency in the pegged currency. So say a country has 1 trillion dinars circulating and wants to maintain a 1:1 exchange rate with the US dollar, the currency board must hold $1 trillion in US currency. "

Now according to the above qouted Statement, we will calculate Iraqi dinar's Possible Rate,

Total Amount of Iraqi dinar which have been printed or Circulating = 4360 Billion Iraqi dinar
Iraq Total Reserves : 8.4 Billion Dollar


now according to the statement if Iraq pegs its Currency to the US Dollar at the Rate of 1 IQD = 1 USD then central bank of iraq will need to have 4360 billion US Dollar in reserve . Let me do calculation in Mathmetical Form ,

IF 1 IQD = 1 USD then Reserve must be 4360 Billion Dollar.
IF 1 IQD = .50 USD then .......... 2285 billion dollar.
IF 1 IQD = .25 USD then .......... 1142.5 billion dollar .
IF 1 IQD = .125 USD then ......... 571.25 billion dollar .
IF 1 IQD = .0625 USD then ........ 285.625 billion dollar .
IF 1 IQD = .03125 USD then ....... 142.812 Billion Dollar.
IF 1 IQD = .015625 USD then ...... 71.4062 Billion Dollar.
IF 1 IQD = .0078125 USD then ..... 35.7031 Billion Dollar.
IF 1 IQD = .00390625 USD then .... 17.8515 Billion Dollar.

" IF 1 IQD = .001953125 USD then ... 8.92578 Billion Dollar."

Now u can see the relation between Currency Rate and its Reserves, i calculated total reserve needed to peg the Currency at Suitable exchange rate . in the last qouted statement, u can see we reach at the current level of reserves and on the other hand we got the suitable Exchange rate .001953 USD it is the Current hiddin value of iraqi dinar .

Fixed Value of iraqi dinar = 1 USD = 1460 IQD
Total Reserves when above Price Fixed = 5 Billion USD

Hidden Value of iraqi dinar = 1 USD = 512.03 IQD
Current level of Reserves = 8.5 Billion USD

it means Central Bank of iraq can minimum Possible peg their Currency at 1 USD = 512.03 IQD.

but still i m confused that what is the possible solution because i read another statement that Total of 300 Billion IQD are circulating Outside IRAQ. it means CBI need to hold total reserve according to the amount circulating outside the iraq , not against total iraqi dinars which are in circulation outside and inside the IRAQ . so we will calculate price in Terms of Dinar Circulating outside the iraq ,



Total Amount of Iraqi dinar which is circulating outside the Iraq = 300 Billion iraqi dinar
Total Reserves = 8.4 Billion USD

IF 1 IQD = I USD then reserves must be 300 Billion USD.
IF 1 IQD = .50 USD ........... 150 Billion USD.
IF 1 IQD = .25 USD ........... 75 Billion USD.
IF 1 IQD = .125 USD .......... 37.5 Billion USD.
IF 1 IQD = .0625 USD ......... 18.75 Billion USD.
IF 1 IQD = .03125 USD ........ 9.375 Billion USD.

" IF 1 IQD = .02734 USD ........ 8.2031 Billion USD. "

it means the possible and maximum PEG will be around .02734 and it is also the current value of iraqi dinar . i did this calculation because when dinar's rate will go UP, dinar which are circulating outside iraq will then come back to iraq to convert thus CBI must have required Reserves of Dollars to keep stable Iraqi dinar .

i hope U All will easily Understand these calculations and statements . i m looking for Comments hope u all will give Comments. thanks

He's looking at a currency board......HELLO, we HAVE a CENTRAL BANK....this discussion is for naught.

[Forthefuture]

thanks 4 the cal. i am goin to use a reval of min .19 to decide how much dinars i am going to buy.

You didn't buy NID yet? :drunk: Guess you were waiting fot his thread to start. I don't care how much NID RVs as long as it goes up some, just like any other investment. IMHO I'd rather see security go up first so that the Marines, Soldiers, Corpsmen, and civilians working here are safe.
BTW that was a neat way to calculate RV, but I don't think it will stick.

Just my :D :D Dinars worth...

[eosirl2]

Interested Research from a Friend. Just wanted to Share.


The second type is the currency board. A currency board is not a central bank. It does not lend money to banks. The sole responsibility of a currency board is to maintain the exchange rate between the local currency and the pegged currency.

" It must maintain a reserve of 100% of the value of the local currency in the pegged currency. So say a country has 1 trillion dinars circulating and wants to maintain a 1:1 exchange rate with the US dollar, the currency board must hold $1 trillion in US currency. "

Now according to the above qouted Statement, we will calculate Iraqi dinar's Possible Rate,

Total Amount of Iraqi dinar which have been printed or Circulating = 4360 Billion Iraqi dinar
Iraq Total Reserves : 8.4 Billion Dollar


now according to the statement if Iraq pegs its Currency to the US Dollar at the Rate of 1 IQD = 1 USD then central bank of iraq will need to have 4360 billion US Dollar in reserve . Let me do calculation in Mathmetical Form ,

IF 1 IQD = 1 USD then Reserve must be 4360 Billion Dollar.
IF 1 IQD = .50 USD then .......... 2285 billion dollar.
IF 1 IQD = .25 USD then .......... 1142.5 billion dollar .
IF 1 IQD = .125 USD then ......... 571.25 billion dollar .
IF 1 IQD = .0625 USD then ........ 285.625 billion dollar .
IF 1 IQD = .03125 USD then ....... 142.812 Billion Dollar.
IF 1 IQD = .015625 USD then ...... 71.4062 Billion Dollar.
IF 1 IQD = .0078125 USD then ..... 35.7031 Billion Dollar.
IF 1 IQD = .00390625 USD then .... 17.8515 Billion Dollar.

" IF 1 IQD = .001953125 USD then ... 8.92578 Billion Dollar."

Now u can see the relation between Currency Rate and its Reserves, i calculated total reserve needed to peg the Currency at Suitable exchange rate . in the last qouted statement, u can see we reach at the current level of reserves and on the other hand we got the suitable Exchange rate .001953 USD it is the Current hiddin value of iraqi dinar .

Fixed Value of iraqi dinar = 1 USD = 1460 IQD
Total Reserves when above Price Fixed = 5 Billion USD

Hidden Value of iraqi dinar = 1 USD = 512.03 IQD
Current level of Reserves = 8.5 Billion USD

it means Central Bank of iraq can minimum Possible peg their Currency at 1 USD = 512.03 IQD.

but still i m confused that what is the possible solution because i read another statement that Total of 300 Billion IQD are circulating Outside IRAQ. it means CBI need to hold total reserve according to the amount circulating outside the iraq , not against total iraqi dinars which are in circulation outside and inside the IRAQ . so we will calculate price in Terms of Dinar Circulating outside the iraq ,



Total Amount of Iraqi dinar which is circulating outside the Iraq = 300 Billion iraqi dinar
Total Reserves = 8.4 Billion USD

IF 1 IQD = I USD then reserves must be 300 Billion USD.
IF 1 IQD = .50 USD ........... 150 Billion USD.
IF 1 IQD = .25 USD ........... 75 Billion USD.
IF 1 IQD = .125 USD .......... 37.5 Billion USD.
IF 1 IQD = .0625 USD ......... 18.75 Billion USD.
IF 1 IQD = .03125 USD ........ 9.375 Billion USD.

" IF 1 IQD = .02734 USD ........ 8.2031 Billion USD. "

it means the possible and maximum PEG will be around .02734 and it is also the current value of iraqi dinar . i did this calculation because when dinar's rate will go UP, dinar which are circulating outside iraq will then come back to iraq to convert thus CBI must have required Reserves of Dollars to keep stable Iraqi dinar .

i hope U All will easily Understand these calculations and statements . i m looking for Comments hope u all will give Comments. thanks

You analysis is financially well founded, but the mitigating factor is the oil. So is you would care to elaborate your analysis further, and include the monetarization of a portion of Iraq's reserves at today's oil prices, perhaps we may get an more accurate exhange rate should Iraq decide to go that route.

If nothing else, it would provide us with a dinar exchange rate range if nothing else.

Thanks for your efforts here.

[wherbie]

why not figure the RV where the old sadaam dinars left off?......31

no more no less....IMHO thia would appease everyone,

including me

[onenomad]

why not figure the RV where the old sadaam dinars left off?......31

no more no less....IMHO thia would appease everyone,

including me

I agree with this anything less and the question could be what was the point so I see this as the minimum (tho I think it will be higher to prove a point)

[WilliamMunny]

Interested Research from a Friend. Just wanted to Share.

i hope U All will easily Understand these calculations and statements . i m looking for Comments hope u all will give Comments. thanks

First,..Iraq doesn't have, nor will it elect to employ, a currency board.

Secondly, the reserve rate for the CBI is about 20% if memory serves...

Third,...1% of Iraq's oil is about $75 Billion, again if memory serves...

There are some threads about all of these, explaining more in detail...

[bahmaboy]

You didn't buy NID yet? :drunk: Guess you were waiting fot his thread to start. I don't care how much NID RVs as long as it goes up some, just like any other investment. IMHO I'd rather see security go up first so that the Marines, Soldiers, Corpsmen, and civilians working here are safe.
BTW that was a neat way to calculate RV, but I don't think it will stick.

Just my :D :D Dinars worth...

the way i worded it does make it sound as though i have not "invested" yet. to make it clear i already hold dinars. i meant the post will help me to decide how much i am going to buy in the future. i know for sure 2007 is probably the last year to get the amount you need or want, after that there may be a little time to get more but not much. right now i am trying to decide between aquiring 6 mil or 12 mil. not sure, i am trying to rule out the best option for me.

good luck everyone

[awan]

thank you all for your comments. yes without a doubt OIL is the biggest factor to consider when it comes to PEG/Float of IQD. We all want a higher IQD rate but DONT be Surprize if you do see a smaller rate. I hardly doubt the Voilence will calm down any time soon. When we talk about OIL, we have to consider the negative factors as well such as security of the oil fields, proper production and of course the never ending blood-shed. So pretty much it sums it up. Good Investment but Alot of things have to be done.