_CBI Deputy Governor: Dinar became more like a strong and hard currency
On: Saturday 02/11/2012 12:30 http://bit.ly/zcEjUV
“He pointed to: that the goal of central bank policy at the moment is the stability of the exchange rate of the dinar against the U.S. dollar, but our goal in the long run be equal to it being a process needs a strong economy and inflation is low and a cash reserve large .”
The goal in the long run is the dinar will be equal to the US dollar. This to me means that the dinar will come out at somewhere between .86 and 1.32. Iraq needs a strong economy for this to happen. Iraq is getting there if not already.
“and it was a member of the Finance Committee and the representative / National Alliance / Haitham Jubouri who said it may likely equal to the price of the Iraqi dinar against the dollar during the next biennium after the implementation of the project to delete three zeros from the Iraqi currency.”
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_The implementation of the project to remove the 3 zero notes as stated in the quote above has been underway since about Sept. 10th, 2010, which is phase two of the revaluation of the Iraq currency.
In this phase the CBI has been dollarizing Iraq with US dollar sales and pulling the large notes out of the market place of Iraq. In my opinion we are coming real close to phase 3, which will include the RV at a value equal to the USD.
In my opinion that amount will be higher so that the CBI can make money pulling the USD out of the markets of Iraq. The 3rd phase will take up to two years to complete as it took almost 2 years to dollarize Iraq.
“Jubouri said in an earlier statement (the news): The approach undertaken by the Bank Central retention rate of the dinar against the dollar during the current indication that monetary policy in the country able to make the dinar equivalent of the U.S. dollar.”
The CBI will never be able to pull the USD out of the market place of Iraq until the Iraq Dinar is above the US dollar value, first of all because the Iraq People know the USD is stronger than the Iraq Dinar, but once the Iraq People gains confidence in their own money and the Dinar RVs higher than the USD the Iraq People will flock back to the Iraq Dinar.
In my opinion and after the phase 3 two year period the Iraq Dinar may come to value and meet the value built within the GOI’s budget proposals, which is about $3.41. This will not happen until the oil output per day reaches 4 million barrels as it was before the 1990’s and other economic GDP builders come on line.
We are getting closer by the day and are witnessing history never made for this type of building of a new democracy, which I do not agree with, but it is what it is, as long as we take something evil and do something good with it.
God Bless All in this World