12-7-12 SWFloridaGuy: The persistent Forex rumors are back. I've said this before and I'll reiterate it for the newbies. The Netdania and Yahoo Finance type sites are not Forex brokers/marketmakers.
They are just free web based charting tools and the numbers they use are a poor proxy for volume.
The frequent anomalies often coincide with trading session openings (US, London, Asia), and the spikes are directly related to the volatility of the USD.
Netdania is a hybrid feed of data and the spikes also could represent an arbitrary spread depending on where their source data comes from. The IQD is not currently being traded and always reverts back to the actual value. Forex trading is done through a broker or market maker.
Traders choose a currency pair that they expect to change in value and place a trade.
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When you close your trade the broker closes the position on the Interbank Market and credits your account with the loss or gain.
If someone wants to determine the IQD rate in correlation to another form of currency, they can go about this procedure in a variety of ways.
Upon completing the entry procedure the results of the IQD exchange rate (with regard to the respective currency) will show the fluctuations, but the Iraqi Dinar is not currently traded on the Forex Market.
The IQD is a controlled currency. The CBI determines the exchange rate and must support that rate by maintaining adequate foreign currency reserves to handle capital flows across its borders and the IMF permits them to implement currency controls in order to stabilize their economy during its redevelopment phase.
Presently, international banks will not accept the Dinar, and it is not traded on any Forex exchange.
Actual purchases are made through currency dealers that have been authorized to buy and sell banknotes that are already in circulation. When a country decides to implement a large currency appreciation, in accordance with IMF approval and instruction, their Central Bank will send the adjusted rate to the BIS and from there it will be released to all Central Banks around the world simultaneously.
This will not show up on Forex first because the IQD is not traded on Forex markets. Nothing against those who take the time to research and look for clues. More power to them and I appreciate their efforts. Just trying to provide some clarity.