Post From Dinar Updates
Chat Room Excerpts & Highlights
Dinar Updates Friday AM Chat 7-15-16
clay says to magnetlady():wonder if Sadr is really going to protest today
clay says to magnetlady():hopefully a wake up call
magnetlady says():Don't know.
Baxter says():Morning all..... another dinar day... :)
clay says to Baxter():one day
Baxter says():thats all it takes ..is one day
clay says to Baxter():yep
clay says to Baxter():thats all we need
david334 says to clay():Morning I am not sure why a devaluation article comes out the blue. I thought that part of the monetary reform commitment was getting away from dual currency structure. Based on the auctions it doesn't seem like that is even moving at a snails pace. Any thoughts
clay says to david334():Im with you there
clay says to david334():they are supposed to be using only the dinar
clay says to david334():cant understand the holdup
Hutch says():ITS AN OLD OPINION PIECE, BASED ON OLD NEWS. NOWHERE IN THERE DOES IT TAKE INTO CONSIDERATION OF THE REVENUES THAT WE TALKED ABOUT IN NEWS THE OTHER NIGHT.
clay says to Hutch():thanks bud
wmawhite says():Folks,.........again..this is the price that the GOI sells to the CBI the USD it gets from the sale of oil.
clay says to wmawhite():IYO where do we stand these days
wmawhite says():It has nothing to do with the international rate of exchange, because there is no internationally accepted rate of exchange at this moment.
clay says to wmawhite():right
wmawhite says to clay():We stand at the same place we stood yesterday.
clay says to wmawhite():lol ok
david334 says to wmawhite():Good morning wmawhite . There is a school of thought that a higher dinar exchange rate is totally supported by the value of physical assets and the reduced note count.
Chicken and the egg is that corporate investment is to a large degree dependeent on the dinar being a viable global FX currency that has a degree of of transaction liquidity.
david334 says to wmawhite():Sometimes I have to retstate the logic behind the thesis
david334 says to wmawhite():to myself that is.
david334 says to wmawhite():Jordan and Kuwait are good comparables. Kuwait's populaion is much smaller and the balance sheet in better shape but the GDP leverage in Iraq is much much greater. Why should the valuation disparity last any longer.
clay says to david334():Good question
wmawhite says to david334():bottom line is; look around the region and ask ...."when Iraq is compared to the other countries and their GDP is the true value of Iraq reflected in their currency at $0.00086?"
Simply; No. And this is why Iraq does not use it and that there are obstacles preventing it from being used as Citibank stated. IMO, when those obastacles are removed and the movement of the IQD is freed, IMO the CBI will move the value of the IQD to reflect its true value.
david334 says to clay():Thanks Clay . I think I am at the point of foaming at the mouth any day now. Not pretty.
clay says to david334():lol
wmawhite says to david334():Got to go
david334 says to wmawhite():Thanks just making sure I haven't lapsed into a state of dementia.
david334 says to clay():How is Citibank going to remove these unknown obsticles? It's bigger that a bank that never trades above book value.
clay says to david334():no clue
david334 says to clay():The big Iraqi banks recapitalized but there still the same size as the bumkus bank and trust in mobile Alabama. What at a fraction of a penny how does that stimulate business lending???
david334 says to clay():I am DONE
clay says():me too
david334 says to clay():Does wear on the soul though
david334 says to clay():See ya later
Hey Elane, that article in my opinion just reconfirms all that we have read here at DU regarding the LOI executed last December and further confirms that devaluing is not an option......
In fact, it is the IMF stating that the CBI will increase the sale of USD through the auctions at this time to maintain the exchange rate to insure that the spread with the market rate stays in check....
Society says to Elane():The auctions cannot be stopped until we have a fully compliant Article 8 currency with complete freedom of movement of capital to maintain the exchange rate peg
Society says to Elane():Just knowing that the goal is to stop the MCP reaffirms that we are winding down toward our goal
Society says to Elane():The news is all good!!!! Unless you are expecting the end result to be "tomorrow"
clay says():or the next day
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