[Shredd] ok, so i have a topic for discussion what denominations are the reserves in, dollars or dinar
[lightingcslt] Shredd dollars
[Shredd] ok, bring in your supporting proof
[tlm724] Shredd that exceed (70) billion U.S. dollars.
[Shredd] tlm724 tyvm
[lightingcslt] Economist: crisis regions of the dollar and the euro will not affect the value of the Iraqi dinar Follow-up - and babysit - ruled out economic expert Abdul Sattar al-Hashemi, influenced by the exchange rate of the Iraqi dinar fluctuations in global markets in America and Europe.
Hashemi said: The Iraqi dinar is immune from the global economic crisis will not be affected because it covered with large cash liquidity of hard currency that exceed (70) billion U.S. dollars.
Read More Link On Right
He added: that the exchange rate of the dinar began improving and recovering from what it was in the past, especially after the necessary procedures and necessary taken by the central bank on how to balance market in dollar amounts raised through the auction sale of hard currency. He continued: as well as making a new policy to keep gold and this is what would be a safe haven to keep the money and to support the Iraqi dinar : LINK
[Shredd] ok, so tlm724 if the reserves are in dollars,when the exchange exceeds the dollar the cbi stands to gain from the premium in the exchange, right?
[tlm724] a tremendous amount Shredd
[Shredd] tlm724 yes, so might this fact be a motivation when it comes time to pay the imf ?
[lightingcslt] the 23rd i beleive
[tlm724] Feb 23rd is when the first payment is due $123 million dollars
[Shredd] tlm724 a drop in the bucket really
[tlm724] its pocket change shredd
[Shredd] right, in today's value so, sure the expense would be much smaller, but the motivation for the exchange to swing above the dinar wouldn't really matter too much to be before this payment is due, right tlm724 ?
[Shredd] right, so all the hubub about a revalue before the 23rd has little credibility right? tlm724
[tlm724] well i am still thinking about that, maybe we can expound on that
[Shredd] i'm just working through it in my head, that's all
[tlm724] ok Shredd lets talk through it but i can see your point
[Shredd] the fact remains that a higher exchange than par would economically benefit the cbi, i think we both agree to that
[Shredd] but the "bill" to the imf is sort of small
[tlm724] it is small comparatively speaking
[Shredd] right, but will the due date and the amount be a motivator, i guess that's the question
[Shredd] now, the arguement might be easier to be made for the UNAMI protection date
[tlm724] Shredd i don't believe the amount is the issue
[campdav] Shredd IF I might say that the SBA had a stipulation in addition: it was so they could adjust their exchange rate in addition to.......................
[Shredd] tlm724 right, can't be
[tlm724] Shredd and never was
[Shredd] right, so a non-issue
[tlm724] Shredd one motivation that people overlook is Iraq becoming a donor country also
[Shredd] right, an eventual donor
[Shredd] so on to May, not sure how much of a potential loss/expense iraqi may have once the protection is removed but that date may be a good motivator to enhance the strength of the reserves
[lightingcslt] Shredd yes so they do it before then and the sooner the better to make more
[Shredd] [campdav] Shredd IF I might say that the SBA had a stipulation in addition: it was so they could adjust their exchange rate in addition to....................... can you bring that in?
[Shunshine] How can they be movitated if they have no protection?
[Shredd] Shunshine well, if they have a potential expense for lawsuits, leins, etc.....they may want their reserves in dinar to exceed what they have in dollars
[lightingcslt] Shredd i thought they were exonorated from most of them
[Shredd] debts, yes
[Shunshine] So does this mean there is still money left for them to use,if need be.
[Shredd] Shunshine at the time of the extension, yes
[Shunshine] ok ty
[Shredd] tlm724 the cbi confirming their gold reserves was interesting
[rsp1] why's that?
[tlm724] Shredd yes
[Shredd] rsp1 part of reserve wealth and not subject to fiat exchange
[tlm724] Shredd let me show the official announcement from CBI
[rsp1] Shredd What is a fiat rate?
[Shredd] fiat is paper money not based on amount of gold to back it
[tlm724] The Declaration on official news agency SANA quoted the media about the decline in gold reserves Iraqi Central Bank A declaration issued by the Iraqi central bank media reported on the low (gold reserves Iraqi Central Bank thus confirms the Iraqi central bank that Its reserves of gold witnessed stable past months are now to 29, 790 tons, so necessary to note ) Iraqi Central Bank http://www.cbi.iq/documents/Announcemen31-1-2013.pdf LINK
[Shredd] Currency that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves, ie gold.
[tlm724] brb going to get that IMF article
[Shredd] ok, ty
[lightingcslt] Shredd is that what they have?
JD/Baghdad/...The IMF announced on his agreement with Iraq which repaid its extended seven months until 23 February 2013 so that the Iraqi Government has implemented a series of measures in the country's exchange rate system.
The IMF statement that "changes the agreement expired on 23 July last was at the request of the Iraqi Government." "The total funding available for Iraq around 1.96 billion dollars.
The IMF Executive Board had approved on 24 February 2010 SBA contract for two years worth 38 billion SDR "about 58, 3 billion dollars and approved the extended for five months until July 2012 with the modification of Exchange based on a shift in funding needs.
The total resources currently available to Iraq in light of the agreement to the equivalent of 24, 1307 SDR "about 96 billion dollars. /Finished/22/ http://www.microsofttran/ ··· D%3D1450
[tlm724] so that the Iraqi Government has implemented a series of measures in the country's exchange rate system.
[Shredd] with the modification of Exchange based on a shift in funding needs
[lightingcslt] Shredd your take?
[Shredd] clear as mud lol, lets see what the google one is... and maybe compare maybe it means the exchange of the original date to the new date or since it's capitalized perhaps it is referring to the monetary policy and exchange of currency since it refers to shift in funding needs but shift in funding needs i think is the direct object back to the shift in dates
[tlm724] google translation
[tlm724] The International Monetary Fund announced on arrival at an agreement with Iraq which extended its loan seven months until 23 February 2013 to the Iraqi government can implement a range of measures in the exchange rate regime in the country.
A statement to the IMF that "changes to the agreement which expired on July 23 last was at the request of the Iraqi government." The statement added that "the total available funding for Iraq amounts to about $ 1.96 billion."
It is noteworthy that the Executive Board of the International Monetary Fund had approved 24 February 2010 on the agreement Stand for two years worth 38.2 billion SDR "about 58.3 billion dollars," also agreed to extend it for five months until July 2012 with modified exchange based on the shift in funding needs ..
The total resources currently available to Iraq under the agreement to the equivalent of 24, 1307 million SDR "about 96, 1 billion dollars." / End / / 22
[lightingcslt] he Iraqi government can implement a range of measures in the exchange rate regime in the country
[anthonlcs1] tlm724 So is this an old article?
[tlm724] August 4, 2012 but it applies now
[Shredd] so to me, the IMF extended the agreement and modified the dates based on the shift in their funding needs. because it has to do with the stand by arrangement due on 2/23
[lightingcslt] Shredd well yes
[Shredd] we're just getting hung up on the usage of the word exchange, wish we could isolate that arabic word in the original text and see synonyms
[tlm724] Shredd let me try
[Shredd] its good to disect this and come to a unified position!
[lightingcslt] Shredd i agree exchange means different things
[anthonlcs1] lightingcslt so why is this article significant..if it is....still confused..
[lightingcslt] anthonlcs1 we are disecting it
[anthonlcs1] lightingcslt ok ty
[Shredd] With adjustable exchange on the basis of the shift in funding needs.... now this is interesting notice the new word adjustable that comes from the original text hmmmmm i like this more
[tlm724] translation = withdraw, put out, turn away, vent, pay, pay away, receive, resolve, count, double, shrift, groan, earn, creak, scrape, dismiss
[Shredd] tyvm Miss T
[tlm724] all from one arabic word
[Shredd] so, see how NONE of the words mean an actual exchange
[lightingcslt] or pay away
[Shredd] or anything like a change hmmm, surprising
[lightingcslt] Shredd yes
[Shredd] but the word adjustable in front of it from the original phrase i pasted above then it brings a bigger meaning
[Shredd] an adjustable pay, an adjustable receive so on
[Shredd] well, it's cryptic at best, but could mean more than just a date extension
[RickeyT] Shredd If you bring in U.S. dollars, they adjust the currency to dinar, if you take out U.S. dollars, they adjust the currency given back based on the value of the dinar?
[Shredd] RickeyT well, not knowing who "they" are, the reserves are in dollars
[Shredd] and the conversation was about when the dinar exceeds the value of the dollar ,the exchange in the reserves would gain yes this is why we have such a great group we dont take assumptions, we dig and learn! love it
[tlm724] Shredd tyvm for showing several different sides on these topics