Thread: Munny Model Timelines

Hi Munny....I have a quick question for you. I see your point and appreciate it, however how will a slow r/v keep speculators out? As we know, we can still get Dinar at any time. Does your theory take into speclators and the possible negative outcome of having to much currency out of country? Again, not bashing...just looking for some clarification.

Originally Posted by jedi17

Hi Munny....I have a quick question for you. I see your point and appreciate it, however how will a slow r/v keep speculators out? As we know, we can still get Dinar at any time. Does your theory take into speclators and the possible negative outcome of having to much currency out of country? Again, not bashing...just looking for some clarification.

Excellent question. Keep in mind the Iraqis have underpriced (in a manner of speaking) the IQD for over 3 years now. Part of that was a requirement by the IMF for the CBI to prove stability. Remember under the Saddam regime the Dinar was very unstable and values fluctuated wildly. Thus for 3 years the CBI put a cap on IQD value in the 1470 range with a few trial runs at value increase or decrease. They did a great job in true sense.

As far as speculators the Iraqis are fine with it at this stage. They are pulling some of the Dinar back into the banks, thus limiting outside supply to what is already out there. The CBI has a very healthy money exchange industry going on. Street money sellers are the ones not happy with IQD value increases. But thus far they have seen that their business is still very brisk. These sellers must buy IQD from Iraqi banks at a new "premium" price of 1295 to $1. This brings hard cash reserves into the banks which will help build required reserve amounts. They also benefit from any exchange fees charged. As they increase the IQD price, they make much higher profits because they "bought back" a ton of IQD at the lowest prices and continue to do so even at the current price.

The Iraqis are under NO obligation to keep moving the IQD value higher and higher in order to "pay off" speculators. They can fix or peg it at any time and any level they see most beneficial to their people and economy. While there are some similarities to a stock, currencies are not exactly like stocks. And nobody loses big in this "pyramid" scheme type investment. True the people who get in the earliest (us ) will walk out with the highest profit. Just for the sake of arguement let's say their final target rate is .10. Those of us in it now make astronomical returns. Those that "speculate" at say .09 STILL MAKE A PROFIT!!! Not as big, but some profit is made. Maybe those that speculate at .095 might break even or even lose slightly. Hey, tough cookies. Too bad they did not jump in at .0007 (us ) or .004, or .002, or .01. Too bad, so sad. The Iraqi Government is under NO obligation to pay off every speculator on their currency.