Thread: when the cbi rate hits 1200 what does that mean to us

I have always heard that if the cbi rate is 1200 that is supposed be some magical number, that will invoke a reval or the start of one. Is this true or more speculation. we are at 1201 now so... let me know what you all think and be polite thanks

Announcement No.(1161)
D.G. of Foreign Exchange Control

The 1161 daily currency auction was held in the Central Bank of Iraq day Thursday 2008/5/8 so the results were as follows :

Details Notes
Number of banks16-----
Auction price selling dinar / US $1200-----
Auction price buying dinar / US $1198-----
Amount sold at auction price (US $)164.635.000-----
Amount purchased at Auction price (US $) 2.550.000
Total offers for buying (US $)164.635.000-----
Total offers for selling (US $)2.550.000-----

Interesting,

The CBI officials often referred to the 1200 pointr as a benchmark or target, and it did happen slowly which they said would be their course of action to establish stability with dinar, so now that this benchmark has been met, now we all have to wait for the magic. lol

Good luck to all, Mike

Originally Posted by Offshore-Wealth.com

Interesting,

The CBI officials often referred to the 1200 pointr as a benchmark or target, and it did happen slowly which they said would be their course of action to establish stability with dinar, so now that this benchmark has been met, now we all have to wait for the magic. lol

Good luck to all, Mike

Hi Mike!
Would you please elaborate just a little to explain what you mean by waiting for the magic? If you are referring to a bold adjustment/revaluation are you still hearing/expecting the 30 cents/dinar you used to mention?
Blessings On YOU! AL

Originally Posted by orrkallen

Hi Mike!
Would you please elaborate just a little to explain what you mean by waiting for the magic? If you are referring to a bold adjustment/revaluation are you still hearing/expecting the 30 cents/dinar you used to mention?
Blessings On YOU! AL

Greetings Al,

It is amazing how quiet it has been, and very little information is coming out of Iraq, so makes you wonder, combined with hitting this benchmark, along with exchange of coins, and very little other informaiton, perhaps we will see restoration of value of dinar as was stated many times by officials, so that was all I was referring to, what was stated, nothing new to add unfortunately, so time will tell.

Good luck to all, Mike

Originally Posted by Offshore-Wealth.com

Interesting,

The CBI officials often referred to the 1200 pointr as a benchmark or target, and it did happen slowly which they said would be their course of action to establish stability with dinar, so now that this benchmark has been met, now we all have to wait for the magic. lol

Good luck to all, Mike

It was stated in this document some good stuff , but is extremely long and can give you a head ache. I thought this part was good. I actually found this info on another site but figure I would post cause it is within this discussion.

For purposes of monitoring under the program, a program exchange rate will be used.
This program exchange rate will be set at ID 1,200 per U.S. dollar. The program exchange
rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign assets
and liabilities denominated in U.S. dollars, as required. For CBI assets and liabilities
denominated in SDRs and in foreign currencies other than the U.S. dollar, they will be
converted in U.S. dollars at their respective SDR-exchange rates prevailing as of
December 17, 2007, as published on the IMF’s website.

If you wanna load the PDF and see go to page 57 section 4.
http://www.imf.org/external/pubs/ft/scr/2008/cr0817.pdf


Now I believe this is the magical number possibly because this is the rate they wanna be at before the program rate is lifted. Now there may be a few other requirements that need to be done so with that said. I don't think were gonna see another pip here and a pip there but go out on a limb and say a bold adjustment. Could be days weeks or months. Yet on the other hand I remember reading 1000 to 1 by some important official a while back is what they were hoping for in the near future ..but that was old info so who knows. But I think were really close guys as my thoughts since I got into this thing is that something will happen before GWB leaves office. Were ready now for the real rate please. What it is or could be is anyones guess but did we not here from shabbi a few weeks back telling folks to hold onto there dinars and that they wish to return to 70s and 80s rates. I can dig up a link if you wanna it don't have it right now and also the question of a loop is out of the question as it was publicly stated today thats not there intentions!!! Big news and the M2 numbers were said to be only 8 trillon! not these nubers of 24-27 being thrown around.http://translate.google.com/translat...N%26as_qdr%3Dd There was also an article that came out stated by the oil minister about a week ago that they now have 335 or was 350 billion barrels of proven reserves found so far HUGE! I can dig up links if you want just let me know but the info is out there. Its not as quiet as things seem mike, yea the article 7 and HCL news is quiet but theres some good news comming out as of recent. Whats your thoughts mike on what I have said. I feel we are so very very close folks! Hold on to your hat. Im getting excited about this investment again. -Tank

Agreed,

We have all read the snippets being thrown about by officials which stated a restoration to former rates, whatever that means, so it cannot be ignored since so many had stated effectively the same thing.

As we all know, things just move painfully slow in Iraq, and with all the corruption, the PM and cronies wanted enough time to stash away their billions first, so as you can see, there is no way to tell when this will happen, but think of the wealth these crooks in gov. will have tucked away when it happens. Sure is an extra incentive for them to move forward soon.

If you look back over history, Saddam tucked away millions, and all his cronies did the same thing, including his sons, so this is imbred into society, after all, we have all heard of the book, Thief of Baghdad. lol Now you know the history of Iraq. It will never change, but now with 350M barrels in reserve, the whole country can satisfy their thieving ways. I do believe we are close, and since it has been so quiet, I feel we are closer than ever.

Good luck to all, Mike

• I believe the program they are referring to is mentioned here in various ways. So yes, I do believe that there are other aspects to be completed but we are getting closer and closer every day.

Aiming for stability
Maintaining macroeconomic stability remains a key objective of the authorities' program for 2008. The Central Bank of Iraq will gear its monetary and exchange rate policies toward achieving this objective. Fiscal policy will help contain inflation by keeping current spending, notably the wage and pension bill, in check to limit pressure on Iraq's small non-oil economy. The envisaged increase in government investment, in view of its high import content, should have only a limited impact on inflation.
In light of Iraq's large reconstruction needs, the government has prepared an ambitious investment program for 2008. It is taking steps to speed up projects that could not be undertaken in previous years, in particular to rebuild infrastructure and improve the provision of electricity, water and sanitation, education, and health care. Provided that further security improvements allow execution of the public investment program and a return to a more normal functioning of the economy, economic activity outside the oil sector should pick up.
The authorities' program will also focus on the oil sector and the need for higher investment to raise output and for greater transparency. Raising oil production will be crucial to provide the resources needed for reconstruction over the medium term. Projects to increase production and export capacity in the south and better protect the northern export pipeline are either under way or planned. With continued exports through the north, oil production is projected to increase to 2.2 mbpd in 2008, helping to boost economic growth overall to about 7 percent.
Following the installation of a metering system in the Basra export terminal, metering systems in other ports and oil installations are also being put in place. During 2008, an all-Iraqi Committee of Financial Experts will prepare to take over the audit oversight role of the Development Fund for Iraq, through which all oil revenues are channeled, from the International Advisory and Monitoring Board, which has performed this role since December 2003.
Under the new program, restructuring Iraq's banking sector will be a major challenge. The sector is dominated by state-owned commercial banks, which account for 90 percent of the banking sector's total assets (70 percent for Rafidain and Rasheed banks alone). The banks lack expertise in commercial banking and market finance. There is very little extension of credit to the private sector, and the banks' asset composition is heavily tilted toward government securities.
Compared with other banks in the region, Iraqi banks' deposit base and loan portfolio are small. Most banks lack the expertise to assess risks and, thus, few offer loans with maturities of more than one year. As a result, financial intermediation is weak (see Chart 3). Banks' total loan portfolio at end-2006 was only $2.2 billion (4 percent of GDP), mostly in the form of overdrafts. Total deposits stood at $12.9 billion (26 percent of GDP).

Under the program, financial and operational audits of the two largest banks will be undertaken and a restructuring program adopted, with IMF and World Bank technical assistance. Other structural reforms include modernizing public financial management and strengthening the accounting and reporting framework of the Central Bank of Iraq.
Outlook hinges on security
Iraq's medium-term outlook is favorable, provided security continues to improve. The sustainability of its external debt situation would, however, still require the third and final tranche of Paris Club debt rescheduling (worth 20 percent in net present value terms) planned for end-2008 and further progress in reaching debt reduction agreements with Iraq's other creditors. Disbursement of the last Paris Club tranche is contingent on good performance under the new Stand-By Arrangement.
Although much remains to be done, Iraq has registered a number of successes. Significant progress was made in stabilizing the macroeconomic environment and in advancing the structural reform agenda. The 2008 program will focus on similar objectives to capitalize on the momentum achieved by the first program and, in particular, to help the economy begin growing again. Continued progress, however, will depend on the success of efforts to stabilize the security situation and strengthen the political consensus.
__________________

Originally Posted by benzboy

I have always heard that if the cbi rate is 1200 that is supposed be some magical number, that will invoke a reval or the start of one. Is this true or more speculation. we are at 1201 now so... let me know what you all think and be polite thanks

hey Benzboy...maybe someone needs to tell the Iraqi Government that they reached the rate of 1200.....I'm not quite sure that they have stolen all that they can steal from under the table for the past 3 years while they have been in office while their own people continue to go hungry ....with oil prices what they are and have been for a while now you would think that these people would wake up and smell the roses...what they[the people] need to do is come October vote in all new people to the Parliament...I think that would send a message that the government needs to get off its A** and do something constructive for the people...not just talk and bicker about it...IMHO...Pat

Originally Posted by bigopie

hey Benzboy...maybe someone needs to tell the Iraqi Government that they reached the rate of 1200.....I'm not quite sure that they have stolen all that they can steal from under the table for the past 3 years while they have been in office while their own people continue to go hungry ....with oil prices what they are and have been for a while now you would think that these people would wake up and smell the roses...what they[the people] need to do is come October vote in all new people to the Parliament...I think that would send a message that the government needs to get off its A** and do something constructive for the people...not just talk and bicker about it...IMHO...Pat

Well...it is obvious the world is not going to drop its currency to a level sympathetic of the NID. So what is left to do?

And really Iraq cannot get out from under the dollar base connection, no matter how much they squirm. It is a done deal. And every delay is to bring pain to the country and the world economy. It will significantly happen soon, very soon. 2008 will be a year to remember. For more ways than one.

Maceman