Shredd:From the research I've done, I wanted to share something regarding the thought of the Dinar being tradeable on the Forex. Simply put, while a currency is on a managed or "dirty" float, it will not be on the Forex because the biggest reason for the CBI to manage the rate is to protect from the economic response to it being on the Forex.
See, a managed or "dirty" float is a system of floating exchange rates in which the government or the country's central bank occasionally intervenes to change the direction of the value of the country's currency.
In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy.
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If the CBI manages the rate like this, it will not be on the Forex because, as most of you may know, once the Dinar is an exotic currency on the Forex, confidence will be strong in the Dinar!
Now, to clarify, many may say, "It's already on the Forex, I can see the exchange rate." This is not the same! Just because it is listed on the site and declares the rate doesn't mean it is a tradeable currency.
Others may say, "I don't care about the trading, I just want to see evidence of the exchange rate." If that's the case and the reference being used regarding Forex, that is great....but I will say the CBI site is the "horse's mouth" when it comes to the rate!
Once the Dinar comes off a managed float....and it will, it will be one of the strongest currencies in the world...perhaps the strongest. At that time, it will join the other tradeable currencies on the Forex.
That's all, just wanted to clarify.
TheRock Replies: well said and very accurate. Also it must be said that even though you do see the IQD on those forex sites, those sites are just informational sites and not brokerage firms or other sites you trade from. Those sites that list the IQD are strictly informational and subject to many errors.
They are not to be trusted for any accuracy at all. How do I know this?? I am a day trader and currency trader. My money is placed in a brokerage firm and I trade from charts that I purchase elsewhere.
My data feeds come from the brokerage firm who holds my cash for daily trading. Shredd is very accurate in his statement.