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Thread: The Dinar will float

  1. #1
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    Default The Dinar will float

    From IMF, "Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding." Feb 8, 2010

    Link http://www.imf.org/External/NP/LOI/2010/irq/020810.pdf

    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.

  2. #2
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    Quote Originally Posted by Scott Gonzales View Post
    From IMF, "Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding." Feb 8, 2010

    Link http://www.imf.org/External/NP/LOI/2010/irq/020810.pdf

    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.
    We'll, could this be really GOOD NEWS?

  3. #3
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    Default

    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?

  4. #4
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    Default

    It definitely sounds like a step in the right direction!

  5. #5
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    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

    (Adds details)

    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)

    http://www.forexyard.com/en/news/Ira...3048Z-UPDATE-1

  6. #6
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    Default

    Makes sense.

    Let the market decide what the dinar is worth.

    I wouldn't hold my breath though for a massive uptick.

    It would take years.

  7. #7
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    Default

    Quote Originally Posted by diamondback View Post
    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

    (Adds details)

    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)

    http://www.forexyard.com/en/news/Ira...3048Z-UPDATE-1

    The article is dated Friday March 12, 2010

    Are these people time travelers?

    What is going on?

  8. #8
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    Default

    Quote Originally Posted by decormier View Post
    Great if it does really happen someday.
    I really don't care if it does or it doesn't.
    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.

  9. #9
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    Default Will?

    Will lightning strike the forex?
    Thanks once again Scott. One of IIF's most credible researchers.
    Attached Thumbnails Attached Thumbnails Click image for larger version. 

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    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

  10. #10
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    Default

    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.

  11. #11
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    Default

    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

  12. #12
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    Default

    Quote Originally Posted by tonytz123 View Post
    they wont forex until there out of chapter 7
    What's the process of getting out of Chapter 7, and how long could that take?

  13. #13
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    Default Exchange Rate/ international or world oil price

    Page 17

    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.

    Anyone?

    http://www.imf.org/External/NP/LOI/2010/irq/020810.pdf

    II. D
    EFINITIONS

    3. For purposes of monitoring under the program, a
    program 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!


    JOIN THE PARTY

  14. #14
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    Default

    Quote Originally Posted by EatAtJoes View Post
    The article is dated Friday March 12, 2010

    Are these people time travelers?

    What is going on?

    I agree whats with the pre date
    Make some Money Online Now.
    http://www.cashcrate.com/1952576.

  15. #15
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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.

  16. #16
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    Quote Originally Posted by decormier View Post
    yes i agree also.on the waiting for iraq to rv some day.it will be for grand kids for sure.so what do you all think about the china yuan seriousley,what is you input on china good or bad most say it will rv also.before iraq will and it is supposed to be the worlds,next reserve currency any inputs here on the yuan,
    China will NOT BUDGE -- yuan will remain "artificially low" -- China is still on "cheap" export -- no need to switch to "import" mode yet.
    "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
    - http://www.analysis-news.com/allfold...tanding-VI.htm

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  18. #18
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    Default

    Quote Originally Posted by TerryTate View Post
    Interesting indeed.

    I wonder what their time frame is for implementation.
    Thats a good question. Oh by the way Terry, do you still do those hilarious news articles. I told some friends about them, how you did such a good job, it really fooled us back then or at least fooled me, and I went into the archives to dig them up to show them how funny they were, but couldn't find them. I'll have to search again because that was at least two years ago. You are really talented buddy!

  19. #19
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    [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.
    [B]2010 Mercedes SL600

    nice car

  20. #20
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    Quote Originally Posted by ejtouch View Post
    Thats a good question. Oh by the way Terry, do you still do those hilarious news articles. I told some friends about them, how you did such a good job, it really fooled us back then or at least fooled me, and I went into the archives to dig them up to show them how funny they were, but couldn't find them. I'll have to search again because that was at least two years ago. You are really talented buddy!
    Sorry Ejtouch.

    Nothing's funny anymore.


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