8-20-2012 LoriC: This past week we've seen more progress than ever before. The GOI has reached an agreement and is just waiting on Talabani to return from Germany. The Finance Committee is supporting the CBI's plan to redenominate after the reforms are passed.
The redenomination addresses the introduction of the new currency and does not mean a "lop." The word lop is not even real financial terminology. This is a common misconception in Dinar Land.
Iraq redenominating is a given and the grand debate is simply over how much/if they will raise the value of the currency. Of course we believe the RD will include a revaluation of the exchange rate and the target date is September to January. 2012 is our year!!
Read More Link On Right
8-20-2012 Tenmillion: Are appearances everything? For more than a decade, countries have been trying to appear to be running a more flexible exchange rate regime than they actually are—a trend that is increasingly coming to light in the IMF’s exchange rate regime classification system, which reports both de facto and de jure regimes for all member countries.
Take the following examples. • In the “hollowing out” years of the late 1990s, a number of countries reported themselves as floating, but they were classified in de facto terms as pegged. subsequently, a number of them were compelled to exit to de facto floating regimes under market pressure.
These days, 25 countries report that they are running a flexible arrangement, although they have a de facto conventional peg. Another 14 countries report themselves as operating an independent float, although they have a de facto managed float.
What’s behind the discrepancy between what is said and what is done? It probably reflects the desire of countries to be perceived as market friendly, as well as a reluctance to be seen as committed to a particular level of the exchange rate.
Nelson 0528: The reason the IQD is pegged to the USD; is due to the fact that most of their revenue (90%-ish) is generated from the sale of oil, which is sold conveniently enough for petro-dollars, which is USD primarily (although quite a few countries are slowly shifting to buying and selling oil with other currencies now).
So, when they convert their "paychecks" from oil; the CBI (who governs the exchange rate) sets the exchange rate and holds the auctions to convert the funds... not the "absolute" mechanism; but a relatively simplified idea of how it occurs.