Iraqi US $$ & Gold Reserves verses
QUOTE “Central Bank has $76 billion of oil (this is a typo and should be cash) reserves and 7 billion dollars in gold reserves, distributed in the Bank for international settlements as a cover for the Iraqi currency.”
Link: CBI to bolster gold reserve due to decrease gold price
FULL ARTICLE & LINK AT END OF POST
Iraq had $10 billion in reserves in 2003 at an exchange rate of 1477 dinars to each $1 US dollar.
Read More Link On Right
Iraq has $83 billion in reserves now...... at an exchange rate of 1166 dinars to each $1 US dollars.
Revaluation of the dinar over 10 years: 311 dinars or a 126.6723842% appreciation or 1.26% revaluation annually, each 10 years.
Growth of Iraq reserves over 10 years: $73 billion for a total reserve of $83 billion to cover the Iraqi currency or a total of 830% appreciation or 8.3% annual growth over each of the past 10 years.
Increase in Iraqi M2 (money supply) of 8.3% annually, if you believe that number to be correct?
As you can see the dinar has revalued at a yearly pace of 1.26% but the reserves have increased at 8.3% each year and so the CBI SHOWS an average increase in the money supply just to balance out the annual reserves at the same pace, 8.3%.
Are they growing the reserves at a record pace to keep up with money supply or are they trying to show the increase in money supply to artificially keep the dinar value down? I believe it to be the latter, here I will explain!
So if you look at this math you must ask yourself; why has the dinar revalued at all if the reserves and the M2 keep balancing each other out?
The answer is simple, if you look at the August 31, 2012 Inspector General's Report to the US Congress it stated on page 79 that due to the stability of the “market rate” of the dinar as of January 17th, 2012 the CBI revalued by a TOKEN of 4 dinars.
A TOKEN to me means that there is much more to come but yet they should not have increased it at all because of the increase in money supply, ACCORDING to the CBI it is increasing at the same rate as the reserves, unless they are hiding the real value from everyone. But they wouldn’t do that right? Wrong!
Let me explain further: We have also heard that the market rate has increased to as much as 1320:1 US$ but yet the CBI did not devalue the dinar at all.
That is a decrease in value by 154 dinars to each dollar for an extended period of time I must say and according to many articles, so again you must ask yourself this question; why?
Why if the CBI increased by 4 dinars did they not decrease the value when times are tough? It is because it is a smoke screen. The only way to hide something is to artificially balance it in the first place.
We continue to read about the physical dinar banknotes in the market place falling apart and the CBI saying that they will replace it with new ones but the shop owners and taxi cab drives say that the CBI has not replaced them.
Does the CBI have it to replace, I’m sure they do but not for much longer in my opinion because most of it is out of their country now, we investors have it. We have also read here lately that countries have shown much interest in the dinars, so what’s to say they haven’t been speculating on them too?
Here is my theory in a nut shell, they have increased their M2 to keep up with the ever growing auction sales and not with the market itself, they have US dollars to help that out.
This is why we have read about the weathered and worn out dinars in the market place for 2 years now come September.
Add Iraq’s other wealth into the equation or find out that the real money supply inside Iraq’s borders are really only 25 or 35 billion dinars now and the dinar outside their borders will in fact be another world reserve currency, like we have read about.
Either way this proves that the Iraqi dinar is undervalued and there really is a way to make a lot of money on the internet for the little guys and gals like us.
Have a great day, Stryker
FULL ARTICLE AND LINK HERE:
CBI to bolster gold reserve due to decrease gold price
Member of the Economic Committee & the MP from Al Iraqiya Noura Salem Al Begari, confirmed that low gold on the world market doesn’t effect on the reserve at the Central Bank.
She stated, “Central Bank has $ 76 billion of oil reserves and 7 billion dollars in gold reserves, distributed in the Bank for international settlements as a cover for the Iraqi currency.”
She added that it is in fact a great opportunity for the Central bank to enhance its gold reserve for the future as this is the perfect time to invest on Gold as the market situation is presently down.
It has to be noted that due to the economic crisis in United States, gold price has experienced rapid fall recently.
However, investors are considering this as the best opportunity to invest in the gold. On the other hand, Iraq has taken a major step to strengthen its reserves of gold to join other central banks from emerging market economies such as Brazil and Russia to diversify foreign reserves. LINK