Just to refresh everyones memory
Baker Jaber AL Zubaidi: Iraqi Dinar Value should be Raised
29 June 2006 (Baghdad: Al Sabah newspaper)
The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars. This was pre 1980 before Iraq became involved in three destructive wars that at one time led to the currency's value dropping to a level of 3,000 Iraqi dinars to one US dollar. The proposal has the support and approval of the World Bank.
A statement was made to AL Sabah by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar. He explained that the financial authorities were set on holding a meeting next month to discuss the matter. The meeting is to be attended by experts and spe******ts from the Ministry of Finance, the Iraqi Central Bank and the Commercial Bank .
The new Minister confirmed that 2007 would see the preparation of a qualitative budget, the first of its kind in Iraq history, and that the new program would pinpoint economic indicators.
Baker Jaber AL Zubaidi: Iraqi Dinar Value should be Raised | Iraq Updates
I thought this would be useful to those who missed where the three zero theory came from, just to dispell any rumors!
From The Letter of Intent...(NO SDR!!!!)
5. We have tightened our exchange rate and monetary policies to fight inflation. The
exchange rate of the Iraqi dinar was pegged to the U.S. dollar through most of the year at a
rate close to ID 1,477 per U.S. dollar. From mid-November this policy has been adjusted to
permit a gradual appreciation of the dinar; the daily auction-rate declined to ID 1,325 per
U.S. dollar at end-December and reached ID 1,290 per U.S. dollar by end-January. Net international reserves continued to grow and reached a level of $15.3 billion at end-
November 2006. The CBI also raised its policy interest rate to 16 percent on November 12,
2006, and further to 20 percent as of January 7, 2007.
http://www.imf.org/external/np/loi/2007/irq/022307.pdf
Also, it doesn't matter if it is 100 or 1000 fils now. It still equals the same to the Dollar..
What we want is for the New Letter of Intent, to have the same writting in it as this above. Being pegged to the Dollar. But if it is going to be Pegged to the SDR, I will try and show you as soon as I can, what that amount will be based, on the 3 zeros being removed from the April 30th 2007 IMF Log. :ro_emote:
Helped from a Friend on the Equation SDR Set-Up...
Quote:
Originally Posted by
neno
We know that $1 USD = .660185 SDR and $1 NID = 0.000516326 SDR due to the rates posted on IMF. From here you use the following equation:
$1 USD .660185 SDR
--------- = ------------------
$x USD 0.000516326 SDR
Now you determine "x" by cross multiplying the numbers and divinding by "x". So, you get:
($1 USD * 0.000516326 SDR) = (.660185 SDR * $x USD).
The equation now looks like this:
0.000516326 = .660185x.
Now divide 0.000516326/.660185x and you will get the answer $ 0.00078209 USD. Now we need to see what that is worth a little easier. Since we have large NID, it is easier to look at it from the standpoint of, "My NID is worth x".
To do this use the same type of equation and process:
$1 NID $ 0.00078209 USD
-------- = -----------------------
$x NID $ 1 USD
The answer is $0.00127. Now if they drop 3 zeros from the rate, $1 NID = $.78 USD, or for every $1 dollar, NID equals $1.27. Hope this helps!
Yes and Expensive Too........
Quote:
Originally Posted by
apwerner
Ohhhh, you have a child graduating. That's very exciting. Is she graduating high school or college?
This was my 4th one to Graduate from High School. She is going to college as her Oldest Sister Graduated from collage 2 years ago. The other older two Brothers are in the OIL FIELD. :bow:
Two More Next year and then the Baby at Home, with a very Rich Dad before all that agiain. :wink:
You know by now that you have it backwards..lol
Quote:
Originally Posted by
cooldolphins
o.k. I am no EXPERT, but I HAVE piddled around with the dyslexic tendencied with the exchange rate. ON SAFE dinars, the rate WAS automatically figured at .19 usd = 1 dinar, which gave us the $5.26 or cost of over $5 million to purchase one million dinar.
Play around on the exchange rate site at ya hoo. Here: Therefore, IF the rate were 1 IQD = .19 usd, we're in mega money.
IF the rate were .19 IQD = 1 usd, that is like dividing a million by 5 and that would make our million around 200K. THIS is not the scenario of what safedinar was reporting that crazy day.
That was a Crazy Day. Remember, that the Chase Banks gave me a .26 Sell and .28 Buy that day. It is inline and was for a Reason.
Thanks for the Question....
Quote:
Originally Posted by
s_cotton33
So where do you think the .26 comes into play with everything?... The equation you came up with makes a lot of sence, but I don't get the .26 quite yet.
These Equations were just taught to me and explained as I promised I would make some calls. That would of been Chases sell rate to me of .05 Profit margin for them.
Iraq has no Peg to the SDR as of Yet...
Quote:
Originally Posted by
dinartank
This may be a stupid question...im not very good a math it was my worst subject...but anyway has anyone tried this formula with any other currency? Can anyone plug in the sdr numbers for say the country of say saudi arabi to this formula and see if in deed we are onto something...do i make any sense?
But the Countries that do, are already figured for you here: SDRs per Currency unit for May 2007 Saudi Arabian Riyal, is there as well.
Notes:
The value of the U.S. dollar in terms of the SDR is the reciprocal of the sum of the dollar values, based on market exchange rates, of specified quantities of the first four currencies shown. See SDR Valuation.
The value in terms of the SDR of each of the other currencies is derived from that currency's representative exchange rate against the U.S. dollar as reported by the issuing central bank and the SDR value of the U.S. dollar, except for the Iranian rial and the Libyan dinar, the values of which are officially expressed directly in terms of domestic currency units per SDR. All figures are rounded to six significant digits. See Representative Exchange Rates for Selected Currencies.
The value in terms of each national currency of the SDR (shown above) is the reciprocal of the value in terms of the SDR of each national currency, rounded to six significant digits.
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