Thread: Iraq/Dinar News. 09/05 to 01/14/07

I think the dinar will reval on a steady as you go. Once the speculators see a trend they will start to jump in and we should see an acceleration in the value until it is temporarily over sold then once that is absorbed it should start to move again.

This is an older article but does discuss that a revalue is a monetary policy.

This is Kuwait though.

Kuwait revalued its dinar for the first time in 17 months on May 11, sparking a currency rally across the oil exporting Gulf region.

Integration
Nasser Al-Kaud, director of finance and monetary integration at the GCC Secretariat said earlier this month Gulf Arab states should not revalue their dollar-pegged currencies before a planned monetary union is formed.Al-Mannae said Kuwait has not violated any rule and he central bank is committed to ease inflationary pressures, although it would be impossible to eliminate them.

“I don’t think we have violated any commitment. Inflation is a very important parameter for us. We are very committed. We will use any available monetary policy instruments to tackle inflation.” he said.
“With Kuwait being a small and open economy, relying heavily on imported goods and sectors, we are definitely influenced by what’s going on the inflation front in the trading partners. You can reduce (inflationary pressure) somehow but you cannot eliminate it.”

Forex Trading Signal » 2006 » June

They need more dinars to cover the debit card handout.

Originally Posted by Inscrutable

I think tomorrow is just being used as a cliche, here today and gone tomorrow, tomorrow is another day, the pessimist will be surprised tomorrow.

Yeah, I'm pretty sure it's just that.

Thanks, DARN IT!! Just when we had some really good, exciteing news <I thought.>

Originally Posted by sassy

Thanks, DARN IT!! Just when we had some really good, exciteing news <I thought.>

LOL Sassy,

Then let's add this cliche to the mix, Who's to say what's right or wrong?

Originally Posted by Wm.Knowles

Hello worf
I like many of your comments and questions. I think we wonder will the currency will be "re-pegged", or will they allow the iraqi dinar to trade on the forex. Or possibly on the Chicago Board of trade or some other exchange, New York, Tokyo currency exchange etc. Much of this will determine what can happen and will be a directional sign for us at the time. Should they place this currency on a world wide tradable exchange then anything can happen. My opinion is if they do that, then it is straight UP! But should they just re-peg to the dollar (or Euro) then they will maintain some control over the level, and they could re-peg at a later date at any level. I don't mean to be nasty or inhuman, but If I was President of the CBI, I think I would advocate a re-peg just to see how many billions from the faint of heart that I could buy at a cheaper level. I would not want to spend .31 cents (310 million) per billion when I could buy it cheaper, e.g. .05. If I am a banker, don't assume I have a heart. Now, with a re-peg, I also have the option of an additional re-peg at any time. So, if I am not cleaning out the system fast enough, I will simple try to remove more dinar from the suckers at a slightly higher price. (Sorry, but these people are not angels). One of the best indicators that we have seen are the banks that are now dealing in dinar. They are not doing this for your self-esteem. These are just a few thoughts. Most of you have worked hard for your money and need this boast in your life. I hate the idea of a Bankers greed taking people for their hard earned cash before they are ready to exchange.

I understand your point but whatever they are doing it always is gonna cost more than they want.

In my opion they want to decrease inflation, pull out dinars and improve purchasing power. This always result in a exchange rate that improves, we have seen that last week.

They better want to buy at 1470 then 1455. They better want to buy 0.05 then 0.31, they better want it at 0.60 then 1.50.

We are only now talking about the money in circulation etc. That's one point of view.

If we talk about these low amounts of 0.05 I cannot imagine that the donor countries will write the debt off. We are talking about billions and billions of debt. These countries are holding a lot of dinars and with a rate of 0.05 they will not be happy.

In my point of view this whole investment can be worthless if donor countries won't help Iraq. Then Iraq is left with a debt of billions of dollars.

Iraq has the debt, the violence, the poor and go on. Iraq is the country that MUST PROVE themselfs to the world and that they deserve the aid and not the other way around. We read earlier that for this aid economic reforms must be made.

Again, this is a point of view only made from the financial and banking side and I believe that there is many more in this game that sets the real exchange rate of the Iraqi Dinar.

I also think that they will set the exchange rate lower than the real exchange rate at that time to shake out a lot of speculators.

Again, just an opinion! Time will tell!

The theory is... in fact the common practice of bankers is to buy currency dirt cheap! That means that our days of considering high amounts for a reval are over! We've come of age - we've suddenly grown up! Banks are not nice! The knowledge we now possess which we didn't have before, has certainly taken the wind out of some of us. Mr. Knowles certainly knows his stuff. His comments are irrefutable!

Personally, I still remain highly optimistic!

Originally Posted by Wm.Knowles

As usual, you a great group of students. I like the discussion and the disagreements. My only purpose is as any college professor would want is get the debate on the table. Explore the possibilites and be prepared. Thank all of you.

I was under the impression that the IMF rules stipulates that all the
denomintion to be honored the same. If I'm mistaken please let me know.


Arkie.

Originally Posted by billknows

The theory is... in fact the common practice of bankers is to buy currency dirt cheap! That means that our days of considering high amounts for a reval are over! We've come of age - we've suddenly grown up! Banks are not nice! The knowledge we now possess which we didn't have before, has certainly taken the wind out of some of us. Mr. Knowles certainly knows his stuff. His comments are irrefutable!

Personally, I still remain highly optimistic!

the way to deal with this situation will be to hold your dinar. At some point, either by allowing the market set the value of the dinar or if the CBI controls it by pegging, the dinar will have to increase in value. As oil production increases and the economy grows and demand for the dinar also grows the CBI will have to repeg. One thing that has to happen is that the realistic worth of the dinar has to be realized and that will be demanded by the international market. Look at the heat China has taken for keeping their currency artificially low. This will take time, no doubt about it. But by holding you will out wait the CBI. You will only lose if you cash in early. JMHO

I don´t know if this has already been posted but I just
received this about 5 mins ago, any comments ?

To all our FreeDinar Customers,

There once again will not be a conference call this evening. We apologize for any inconvenience.

However, we will be sending out an email in a few hours with some of the latest news. Just a preview, the Central Bank of Iraq has issued a statement regarding increasing the value of the Dinar.

Depending on the circumstances we should have a conference call next week.

Thank you,

FreeDinar/Ompus Corporate Team