Are we reading the book!

[Sporter]

IIF,

The news was out months ago that Iraq's goal was to reach 1350 by year end. Everyone is now surprised and speculating that this must be the "move" that goes to 1 to 1. Whats your thought?.

[hojoatt]

IIF,

The news was out months ago that Iraq's goal was to reach 1350 by year end. Everyone is now surprised and speculating that this must be the "move" that goes to 1 to 1. Whats your thought?.

If 1350 was the goal, in past 6 weeks from around 1475 for the past many months, what on earther would increase that more than a thousand fold to 1:1???
I.e. Starting from 1475 down to 1350 isn't anything like 1350 down to 1

[Sporter]

That my point, I cannot get a handle on a 1 to 1 exchange rate and for that matter going to .30 to 1. Sometime it pays to believe what you read (my intentions are not to start a naysayers club) however, its appears the CBI has spelled out the exchange rate for sometime now, 1350 to 1 in 2006"

[iamrealdreamer]

Still not clear on all the confusion in this forum. Some Members definately have a hard time understanding things, even when SPELLED OUT! Talk of 800 to 1 a yr from now is rediculous IMO. It will,and has to RV and pretty darn quick, hopefully the next couple weeks will have Iraqi's dancin in the streets, and me dancin on the beach! :lmao:

[Here in Kuwait]

I really don't believe how some members cannot believe that the Dinar can jump in value overnight by one cent. 100 to one would be less than a 1 cent move. Moving thousands of a cent at a time is not going to do much for the economy or the people of Iraq. Just look at how curriencies move in relation to each other on the FOREX, many by over a penny.

[oldskiier]

These are my thoughts on this,

The IMF has put this Artificial rate on Iraq for the purpose of teaching them how to run a stable economy, we all are aware of the great wealth Iraq had at one time, and we know they have reserves to back a RV of some amount , we also know they need to be able to rebuild their country and have to use their own resources before calling on the ICI members for help....so knowing these things I could easily see them Revalue their currency over night :)

[deerslayer69]

Okay, my question is this, when you go to your bank to cash in your dinars, those dinars eventually end up at the federal reserve, right ? Okay, if so wouldnt our government use those dinars in the reserve to buy oil from Iraq ? This question might have already been asked before.

[sabrina]

It seems to me that the Iraqi dinar must and will rv. Look at the countries that are in the gulf region, look at the exchange rates. Some are as high as 3.2 to 1 usd. How can an emerging country that is on the brink of independence hope to regain control of it's political and economic bodies when the currency that is used is for the most part worthless at this moment. Iraq does not, to my knowledge have any form of manufacturing. They import most if not all of their foodstuffs and consumer products from other countries. One must consider the absolute need for a rv at a rate that is comperable to the region, if not for political means, then for the average Joe that is trying to survive on fils a day. A rv would in my opion, would encourge the Iraqi citizens to become less violent. It would be uplifting for them, it would enable them comforts, and it would assist in a decline of the horrors that occur everyday.

[Blacize]

Though I, personally, want to see a fast reval of 1:1, the gradual increase does make its own point: that the dinar can be stabile and stabilized despite all of the negativity it's surrounded by. In that sense, I think it's good that we're seeing the gradual movement even if it's just to combat inflation. We've had some of the best news on this site in the last couple of months. Some are still going to wish for that 1:1 overnight reval and I can't lie, I'm one of them. Still, it's good to see movement in any case. We'll all watch and wait no matter what so it will be what it is.

[Secret Key]

Okay, my question is this, when you go to your bank to cash in your dinars, those dinars eventually end up at the federal reserve, right ? Okay, if so wouldnt our government use those dinars in the reserve to buy oil from Iraq ? This question might have already been asked before.

Bingo!~ Give that man a Cup Cake!~ :cool:

[sgmunson]

There are bound to be some number of dinar that don't make it as far as the Fed, although if we were to see a rather high re-valuation, where there would be an obvious "run" to the banks to exchange, then it's more likely, but otherwise a good chunk probably just travels the interbank route back to Iraq, or possibly for delivery on a Forex contract, should the currency become tradeable there. My gut says that the smaller revals may see relatively little going to the Fed, and for large revals, a larger percentage. Other thoughts, folks?

Steve
(aka sgmunson)
:wave: :wave:

Okay, my question is this, when you go to your bank to cash in your dinars, those dinars eventually end up at the federal reserve, right ? Okay, if so wouldnt our government use those dinars in the reserve to buy oil from Iraq ? This question might have already been asked before.

[darock0116]

There are bound to be some number of dinar that don't make it as far as the Fed, although if we were to see a rather high re-valuation, where there would be an obvious "run" to the banks to exchange, then it's more likely, but otherwise a good chunk probably just travels the interbank route back to Iraq, or possibly for delivery on a Forex contract, should the currency become tradeable there. My gut says that the smaller revals may see relatively little going to the Fed, and for large revals, a larger percentage. Other thoughts, folks?

Steve
(aka sgmunson)
:wave: :wave:

I agree totally, if there is a small RV the banks will hold on to what ever is exchanged. The federal reserve wont see it untill there is a big RV.

Like your title Steve!!!!

Are you a car salesmen. I am a general manager of a car dealership, some training that the salesmen go through (some will, some wont, so what)

[oldskiier]

Okay, my question is this, when you go to your bank to cash in your dinars, those dinars eventually end up at the federal reserve, right ? Okay, if so wouldnt our government use those dinars in the reserve to buy oil from Iraq ? This question might have already been asked before.

The answer to this is not known ....however Oil is bought in USD all over the world..that being said, A deal to buy Oil in dinars just might be in the works who knows ?.....or the gov holding dinar may have agreed to hang on to them for a given time .?..it's all being done behind closed doors :)