From IMF, "Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding." Feb 8, 2010
Section III Number 26.
"To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market. Our aim is to establish a forward market in Iraqi dinars in the near future."
Google " interbank foreign exchange market" and read about the Forex.
so in a nutshell .... is this saying the dinar will float on the forex and find it's value? I'm talking post-lop here by the way
what, no blini?
It definitely sounds like a step in the right direction!
Iraq expects to step up T-bill activity in 2010-UPDATE 1
Friday March 12, 2010 12:30:17 AM GMT
IRAQ-ECONOMY/IMF (UPDATE 1)
* Secondary T-bill market to boost banks' liquidity
* Also plans to create new forex markets
* Sees return to budget surplus in 2012
By Michael Christie
BAGHDAD, March 10 (Reuters) - Iraq expects to step up its treasury bill activity in 2010 to help plug continuing budget deficits and foster a secondary treasury market, the Central Bank and Finance Ministry said in a submission to the IMF.
Iraq also wants to promote the development of foreign exchange markets outside the framework of regular dollar auctions currently conducted by the Central Bank, including an interbank market and dinar forward market, the submission said.
The country's letter of intent to the International Monetary Fund can be accessed at http://www.imf.org/External/NP/LOI/2010/irq/020810.pdf.
In the submission for a $3.6 billion standby arrangement, dated Feb. 8, Iraq said the country only now emerging from years of sectarian slaughter that followed the 2003 U.S.-led invasion would not return to a budget surplus until 2012.
"As our financing needs in 2010 will still be substantial, we will step up our efforts to mobilize domestic financing through the Treasury bill market," Iraq's Central Bank head and finance minister wrote.
"To that end, we will conduct regular auctions, and refrain from cancellations, while allowing interest rates to be determined by the market. This will have additional benefits by determining a benchmark interest rate, while the development of a secondary market for treasury bills will allow banks to improve their liquidity management." They said the country planned to introduce a sales tax, as a precursor to a Value Added Tax, "in the coming years".
Iraq's gross domestic product expanded by 4 percent in 2009 compared with almost 10 percent the year before, the submission reported. GDP growth would rise to almost 7 percent this year and 7.5-8.0 percent in 2011 and 2012, it said.
That improvement would be rooted in an increase in Iraqi oil output to 3.1 million barrels per day by 2012, from around 2.5 million bpd now, and exports of 2.5 million bpd, compared to just over 2 million bpd now.
Amongst other things, the submission said Iraq's central bank planned to create a foreign exchange market outside the framework of regular dollar auctions now conducted by the bank. The bank uses the auctions to set the exchange rate, which has been held at 1,170 dinars per dollar for many months.
"To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market," it said.
"Our aim is to establish a forward market in Iraqi dinars in the near future." (Reporting by Michael Christie; Editing by Missy Ryan)
Let the market decide what the dinar is worth.
I wouldn't hold my breath though for a massive uptick.
It would take years.
I bought my dinars, I am not buying anymore. I'm not selling my dinars either.
I have a real job and pay my bills.
This is my entertainment.
If they RV then that's fine too. Of course I would be very happy about it, but I'm not going to live on the edge of my seat for years and years missing out on life today.
Will lightning strike the forex?
Thanks once again Scott. One of IIF's most credible researchers.
Last edited by latefordinar; 03-10-2010 at 04:36 PM. Reason: typos
Life is like a mountain railway with an engineer that's brave You must make the run successful from the cradle to the grave!Amazing R Aces
Floating exchange is the only reason you keep some dinars in an account. (for your great-grandkids to enjoy). Until then stick with the JPY:USD sell margined at about 100k. That has been a money making mo-fo lately.
they wont forex until there out of chapter 7
If you're playing a poker game and you look around the table and and can't tell who the sucker is, it's you. - Paul Newman
Below there is what could be looked at is a move to follow the world outlook on the price of oil as a standard against a exchange rate or IQD?
I didn't highlight the program exchange rate or the international or world oil price it was like that in the PDF.
3. For purposes of monitoring under the program, aprogram exchange rate will be
used. This program exchange rate will be set at ID 1,170 per U.S. dollar. The program
exchange rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign
assets and liabilities denominated in U.S. dollars, as required. For CBI assets and liabilities
denominated in SDRs and in foreign currencies other than the U.S. dollar, they will be
converted in U.S. dollars at their respective SDR-exchange rates prevailing as of
December 31, 2009, as published on the IMF’s website.
4. For the purpose of this program, the international or world oil price is understood
to be the Average Petroleum Sport Price (APSP) used in the IMF’s World Economic Outlook
(WEO), which is the simple average of UK Brent, Dubai Fateh, and West Texas Intermediate
IF IRAQ PROSPERS ... I WILL LIVE PROPER!
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The Dinar will float
I prefer a float then a denomination, so be it. For all the dinar that I am holding, as soon as they get over 1.00 I'm going to cast sate them.
"Let Me Issue and Control A Nation's Currency -- And I Care Not Who Makes Its Laws" -- N. Rothschild
- http://www.analysis-news.com/allfold...standing-V.htm - Read both links
I wonder what their time frame is for implementation.
[quote=EBJNYC;984402]China will NOT BUDGE -- yuan will remain "artificially low" -- China is still on "cheap" export -- no need to switch to "import" mode yet.
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