5-19-13 Arthur: WE KNOW THAT THE PAST FEW WEEKS HAS SEEN A RAPID TOILETPAPERIZATION ... IT HAS WENT FROM 1166 TO A REAL STREET VALUE OF 1300 ...
THIS IS INFLATION IN ITS MOST OUTRAGEOUS FORM FOR A CURRENCY THAT IS ALREADY FIT FOR WHEEL BARRELS JUST TO BUY THE BASIC NECESSITIES.
WE ARE GETTING INTEL THEY ARE STARTING TO BLOCK ENTRANCES TO BUSINESSES AND BANKS AND IN THE WORDS OF ONE OF OUR SOURCES,
"STARTING TO BORDER ON SHEER ANARCHY."
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IN ORDER TO CURTAIL THIS PRECIPITOUS DROP IN THE DINAR TO USD EXCHANGE RATE THEY HAVE BEEN FLOODING THE MARKET WITH USD IN AN ATTEMPT TO GET ALL THE DINAR OFF STREETS BUT, THOUGH IT IS DOING THAT, IT IS NOT INSTILLING ANY CONFIDENCE IN THE MORIBUND DINAR WHICH IS ULTIMATELY WHAT THEY NEED.
NOW WE SUDDENLY SEE THIS IN THIS ARTICLE:
"The Iraqi Central Bank announced short period before new measures to restrict the availability of U.S. currency in markets. Hope the situation will get stabilized soon!"
SUDDENLY WE FINALLY SEE WHERE "IN A SHORT PERIOD" THEY ARE NOW GONNA TAKE NEW MEASURES TO RESTRICT THE AVAILABILITY OF THE USD..
.IN OTHER WORDS THEY ARE GONNA DEDOLLARIZE THE IRAQ AND THE ONLY WAY TO DO THAT IMO IS TO MAKE THE IRAQI DINAR EQUAL TO OR BETTER THAN THE USD.
5-19-13 Kaperoni (Reply to Arthur's Post): There is some truth this statement. It may be a bit overblown, but the fact is as long as dollars are smuggled out of Iraq and the GOI, police, etc do nothing to stop it, the auctions will remain high. And that is a problem for the CBI.
They have stated before that the amounts sold are way more than needed to run the country. But the CBI cannot stop it as they have no policing abilities. They have tried restrictions (such as ID's passports, bill of lading) but that also hurts the legit citizens trying to conform.
In reality, the only solution is to move the dinar in value, and issue new currency (lower denominations). Accepting Article 8 of the IMF will make the dinar internationally convertible and the dollar auctions can for all practical purposes end.