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Screaming Eagle
03-22-2013, 12:54 PM
Anybody notice that the market rate is steadily increasing again since Malik seized control of the CBI. He has always favored a depreciating currency rather than a redenomination.
http://www.cbi.iq/documents/exchange_rates_chart..jpg

HumbleGenius
03-22-2013, 03:19 PM
Anybody notice that the market rate is steadily increasing again since Malik seized control of the CBI. He has always favored a depreciating currency rather than a redenomination.
http://www.cbi.iq/documents/exchange_rates_chart..jpg

Hey SE, Hope all is well. This is not good from what I understand. Why, in Iraqs current situation with their reliance of Oil as their primary economic return would one want a depreciating currency? How would this be beneficial?

Screaming Eagle
03-22-2013, 04:13 PM
Hey SE, Hope all is well. This is not good from what I understand. Why, in Iraqs current situation with their reliance of Oil as their primary economic return would one want a depreciating currency? How would this be beneficial?A slowly depreciating currency with low inflation is usually viewed as good for a country that has a lot of exports. However Iraq only has one export of any significance and that is oil. The main reason is that at first it makes people think they have more dinar if it is inflated. Something that dictators do all the time. Another reason is that dealers in Iraq are complicate in selling dollars to Iranians looking for a safe haven for their money. This increases the market demand for dollars against the dinar as they have to trade dinar for dollars. Another reason is that the country nor the banking systems is not seen as stable. In fact state banks are constantly attacking private banks for govt control..

Kickabuck
03-23-2013, 12:39 AM
Gold could be a player here, oil is paid for in USD. It's now become a shell game, keep your eye on the the prize. I see gold down double digits vs the USD, I also see gold up double digits vs the Yen. Printing money has become contagious!

Just how does one play the devalued dinar? I see the ISX doubling within 4 years. Maliki can't manipulate the private banks at this point, they are growing too large and are backed by world banks. Maliki and the CBI appear to have their hands full with the warka legal battle, they would never try to stronghand someone like HSBC who owns approx 70% of dar es salam.

livingintheloop69
05-14-2013, 05:15 PM
you cant really call it a market rate because its not part of the markets. the cbi essentially decides or makes up what the dinar is going to be worth unlike other "pegged" or "traded" or "market" currencies that fluctuate in accordance to the dollar and other currencies.

you are correct though the dinar has been increasing slowly but surely. its kinda funny dinar dealer prices have gone down even though the actual value of the dinar has gone up

cbielich
06-18-2013, 04:25 AM
At this point the exchange rate of the Dinar has been steadly dropping in the last month. Thought this article (http://www.dinaradvice.com/2013/06/18/iraqi-dinar-continues-its-plummet-compared-to-the-us-dollar/) was of some hope for those of us invested in the Dinar