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tlm724] this art is from Feb 3, 2013 in forum and i will have a follow up
Official: declining reserves of the Central Bank of gold does not affect the rate of the dinar 02/02/2013 11:45:00 BAGHDAD / Nina / The head of the Department of Banking and Finance Ministry Hilal Taan diminishing quantities of central bank reserves of gold does not affect the price of the local currency.
He said in a statement to the National Iraqi News / Nina / today: "The basket cash reserve covering currencies do not include the gold only, but depend on the dollar and the pound sterling and the euro, in addition to gold bullion.
" He said: "The Iraqi dinar has been a week before the beginning of the deal by one of the sites of the U.S. because of the high currency reserves to more than $ 67 billion is evidence that the Iraqi currency backed by a strong balance can not be influenced by declining gold bullion."
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He pointed out that "the dinar traded in global financial directory sites on the recovery of the currency and that there is a future for the Iraqi dinar and would soon return to what it was before 1980 because of the global demand in the global financial markets.
" The Iraqi Central Bank denied reports by the media about the low reserves of gold, stressing that it saw stable over the past several months. He said in a statement yesterday he was "no truth to the news reported by some media on the low bank reserves of gold," stressing that the reserves now total 29.790 tons.
The International Monetary Fund (IMF) revealed in a report last week, said Iraq cut its gold reserves by a quarter to reach 29.9 tonnes in November 2012, pointing out that the reserves in September and October of last year reached 39.4 tons. /
[tlm724] "The Iraqi dinar has been a week before the beginning of the deal by one of the sites of the U.S. because of the high currency reserves to more than $ 67 billion is evidence that the Iraqi currency backed by a strong balance can not be influenced by declining gold bullion."
The Iraqi dinar has been a week before the beginning of the deal by one of the sites of the U.S.
[tlm724] "the dinar traded in global financial directory sites on the recovery of the currency and that there is a future for the Iraqi dinar and would soon return to what it was before 1980 because of the global demand in the global financial markets."
[tlm724] would soon return to what it was before 1980
[DogzNova] is that from today or is that feb 3rd?
[tlm724] DogzNova 3rd
[tlm724] from above : "would soon return to what it was before 1980"
[tlm724] History of Iraqi Dinar
1932 Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86.
1932–1949 1949–1971 Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971.
1959–1967 Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967.
1971 One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began.
1973 Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US$3.39.
1980 It remained at this level until the outbreak of the Iran-Iraq War in 1980.
[DogzNova] then they added the three zeros in the 80's
[tlm724] yes the complete history up until 2003 in now with this art in forum
[DogzNova] once saddam started printing his own currency WITH the three zeros.. What was the rate against the USD then ?
[tlm724] 1982 In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt.
1988 In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US$3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate.
[DogzNova] look at 87
[tlm724] 1986–2003 1986–2003 between .33 cents to 1.32 to a dollar.
[DogzNova] correct ] 1.32 is what i'm shooting for give or take a few cents
[tlm724] so if this article is accurate and it will return to a value represented before 1980 it could be the following could or can be i should say $1.32 or $ 2.80 or $ 3.39 or $4.86
[DogzNova] if it goes back to the early 1980's thats too high to start out unless there is a currency rebasing IMO and we don't want that
[tlm724] DogzNova it says pre 1980 in the art
[DogzNova] I know.. sometimes they try to throw us off the trail... just saying I looking for around 1.30 something to start out.. I can only guess..
[tlm724] could very well be dogz and I am not saying this is how it will go down, i am just pointing out the history and the possiblilty according to The head of the Department of Banking and Finance Ministry Hilal Taan
[DogzNova] I got ya that pre 1980 stuff.. has been in the news as long as i've been in this investment
[tlm724] so that statement has a history
[tlm724] do you recall if it ever came from someone in the banking and finance ministry ?
[DogzNova] directly from the CBI.. no but the CBI does have the dinar history posted on it
[DogzNova] but know offical statement saying they will return it back to pre 1980.. mostly been goi or finance ministers and such
[DogzNova] unless it's a currency rebasing.. 3.80 to 4.00 is just too high to start out IMO.. dont mean to be a debbie downer.. just being realistic..absolutely imo it would make sense to come out around a buck
[DogzNova] heres the great news They have to officially put out an official document stating if they will do a currency rebasing... And no such Document is yet to be put out and it has to be out at least 6 months prior
tlm724] no rebasing is a very good thing !! for those that don't know rebasing is dividing a currency unit by some denominator ,just removing the zeros with no added value
[DogzNova] so I just blow off what they say anyway.. i only look at what they do or have done and to do that ONE has to go back and look at what they have DONE in the past
[tlm724] yes that is why i showed the history
[tlm724] the potential for growth of the value is tremendous
[DogzNova] so with that said.. I'm on the double D train.. DO and DONE
[tlm724] if it comes out at a buck how long would it take to return to its former glory iyo?
[DogzNova] Aprox 5 yrs it's funny.. everyone thinks it will rise like in one month, currency doesn't go up like that
[tlm724] depending on growth and we have seen the predictions for oil exports so it depends on the countries economic growth as well as infrastructure, exports, tariffs etc...
[dianna] Can the market drive it up ?
[DogzNova] the market would drive it up.. but too fast thats why it will be just like kuwait.. tied to a basket IMO ..
[tlm724] dianna sure the more money coming in the the higher the potential
[DogzNova] trust me .. they know better.. anyways.. see ya all
[dianna] ok ty
[tlm724] it would certainly be a steady growth and as iraq grows so would the currency value
[tlm724] DogzNova ty
[tlm724] as Bondlady has always said IHO it "could" go to 1000 and drop off the zeros giving us the buck and grow from there
[tlm724] thanks everyone
SHREDD: Rebasing would most likely come with a period of time, like 6 months for zambia, for anyone holding the large notes to surrender them. During this time, the exchange rate would stay managed so no gain would be had for those holding the currency as a mechanism of investment. A rebasing would be bad in this scenario.
Now, if a rebasing took place and no period of time was given to surrender the notes, or the 10 year coexisting articles still hold true, then we would start gaining on our investment as the exchange rate grew above the 1-1....which it would over the coming months and years as we all know the fact of huge growth coming to Iraq.
Great point Dog on the pre-notification. A rebasing would be a strong redirection in monetary policy of which we've seen no indication. The mystery continues!! Cool
Tlm724: For a better understanding of rebasing please follow the below link about Zambia rebasing their currency : http://www.boz.zm/Publishing/35/35_TechnicalGuidelines%204-9-2012.pdf
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