7-18-2012 Mchales Navy: Iraq will need a justification of the value of their currency regardless in my opinion. Meaning gold, foreign currency reserves and oil to back up the value. Oil will still need to flow. It is the lifeblood of their economy. The IQD has been stagnant at a program rate for over 3 years now ( 1170 –1166 ), and circumstances have improved economically and politically since then.
It would be safe to assume their reserves have increased as well. Which has actually been stated by the CBI. I would even say the CBI has quite possibly stocked up on more gold to boost up their reserves. Taking all that into account, I’m hoping an announcement is coming forth with a new program rate.
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Furthermore, with some monetary policy changes, some tweaking here and there, a bigger increase in the dinar rate is quite possible. Taking it up an ever further notch, if Iraq decides to only accept dinars as payment for oil, and gets most of the big power player buyers to jump on board.
Then we’ve got an even stronger dinar, but the USD goes down the toilet. Choose your poison I suppose. All my opinion of course.
7-18-2012 Butifldrm: I am not sure that it (Forex report) was a glitch. I'll call it a calculated glitch. For sure, Forex markets should not have glitches. In November 2009 actually the 12th, on at least 8 forex sites the IQD/USD was 1.49. I saw it with my own eyes. It stayed that way for about 8 hours .
At that time I was a short time MILLIONAIRE. I joined this site the next day. I will say Iraq has progressed financially light years since that happened. I also do find it Ironic, that Zebari was in France at the same time cutting the ribbon for the Iraqi embassy. Do I believe the IQD will come out above 1.00, heck NO!
I'd be jumping up and down for .50! But , I do believe, we may see some movement soon. Because:
1. problems with Iran and Syria.
2. The price of oil is dropping to the point it's interferring with their budget.
3. IMO, Shabibi has been ready to pull the trigger since 2010, and least but not last, It looks like the Maliki has had enough pressure applied to seat the government. The rest is just Smoke and Mirrors.
7-18-2012 Boon: This is not up to Iraq alone, this is so much more complex. Money has two values. One is in country where it is used daily as a medium of exchange, and the other is Internationally. The significance is when their currency is reinstated and internationally traded it will buy things.
Now it is so worthless that it is useless internationally. Most calculators cannot handle the numbers and so they buy and sell in US dollars. The currency we provided them compliments of Saddam and his deposits in US banks. The fact is very few of us myself included are knowledgeable enough to discuss this intelligently.
I have began reading and studying two years ago and the more I learn, the more I realize I do not know. Once their currency revalues significantly there purchasing power will go up and the cost of living will go down, then the standard of living will improve and eventually the average Iraqi will benefit .
Keep in mind those people who have no dinar and those who have no dollars this will not make any significant difference in there standard of living in the short term. Only when welfare trickels down and the infrastructure improves.
The idea that they will all be running around with pockets full of money is just fantasy , broke is broke and it is only the wealthy that will be able to hold cheap dinars and then either benefit from increased purchasing power or exchange them for some other currency to purchase things internationally.