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Sunday, February 8, 2015

KTFA CHAT UPDATE, 8 FEB

KTFA:

PartyTime1 :I suspect it will be a very short life If they come out with this low rate it is on purpose for a purpose. I believe that purpose is to put out a sucker rate before releasing the new lower denoms so they can try to suck in as much dinar being held by those who invested in it. Then release the new currency with the new real rate.

IMO....They cannot release the new currency without a bare minimum rate of 1 new dinar to .86 cents USD which is required just to maintain the same value of 1166 based on this current currency we hold. Once the new currency is released any rate below .86 cents USD will result in a devalue of their currency that is at 1166 now based on the current currency.

IMO....They certainly have no intention to devalue their currency and I doubt they will keep it at the same value and will want to increase its value, which will require a rate above .86 cents USD against their new lower denom currency.

The only question now is if they do this sucker rate, how long will they do it for? A week, two weeks, a month, longer?

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Frank26:  Bravo.

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CSHessman: I agree PartyTime. So, along the lines of PartyTime's thoughts, first I"m thinking, from what Abadi said in his speech, are we truly seeing the removal of the "THREE" zeros. IMO...NO! .088 is only a move of two zeros.

Albeit this is a giant leap of 2000% increase in their currency, I don't see it as a full on removal of the THREE zeros. Right. Ok, so it's a gigantic move from where they have been. IMO it's only a first preliminary move even if this is what we come to see very soon.

Now, in another spark, I saw them say recently that this process that would take place in STAGES over a period of time determined by the CBI. There was mention of the process being 4 yrs.

Now, IMO, two of those years, have perhaps passed. But worst case scenario, we may still have 4 to go. I don't want to scare folks, but for me personally I always prepare my mind for worst case scenario but I hope and pray for the Best case scenario.

Now, to further, speculate, and again referring back to PartyTime's thoughts, we have to at least see .86 cents or a 1:1 in order for "COINS" to make .... well ... ($)cents! lol But then I recall they would bring out the coins slowly a few at a time perhaps. Not sure exactly how that works or will be done, but what I also recall was they would have up to 6 coins or was it 5 ?

Think I need some help here. Either way, I just recall that in order to support those number of coins they currency would need be A LOT higher than 1:1 to support and make sense of having that many coins.

As Frank has noted, data is still cooking and information is coming out, but it's all looking very positive for us all. So, keep yourselves on an even keel and perhaps start reaffirming your thoughts and ideas about your plans, and approach to one day soon exchanging some dinar for USD.

Just some quick wisdom. One of the best and biggest pay raises you can give yourself and or your families, is to remove yourself out from under your debt. Do, this first and foremost, as all other future income becomes a GAIN.

So, let's keep our eyes peels and our ears perked and our minds steeled and on even keel for what looks soon to be coming! Amen     C$

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Sluggo:
at that rate, I glady let them exchange 100,000 dinars right this minute...

Frank26:  Friend ...... Sadly ...... This is what they are calculating.

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backdoc
 » February 8th, 2015, 7:17 pm  IMO

JUST A THOUGHT ON THE RATE ISSUE FRANK, THE RATE COULD BE 1.14 TODAY BEHIND THE CURTAIN BUT WHEN OZ PULLS THE CURTAIN BACK IT MIGHT BE WHAT F26 AND BACKDOC THINK!

WITH THE AMOUNT IN THE PUBLIC FLOAT I CAN'T BELIEVE THEY WOULD HAVE A RATE TOO LOW SINCE IT WOULD DAMAGE ALL THE YEARS WORK BY THE GOOD DOCTOR! DOC     IMO


walkongstick:Central: Iraqi dinar hard currency

9/2/2015 0:00

Despite the slight rise in the dollar exchange rate
BAGHDAD Mostafa Hashemi

caused Article 50 of the Budget Law for 2015, confusion evident in the dollar's exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution.

He said the central bank governor Acting Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process.

He said in a statement the "morning" that there are efforts to create monetary stability would return check for investment and increased purchasing power, stressing the central measures will keep the Iraqi currency is difficult in every sense currency.

He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds in dollars and for a definite period, as it will contribute to the achievement of stability.

He pointed relationship to the Central take new procedures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability.

For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars.

The in Article 50 of the Budget Law for 2015, "the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process."

He added, Taan told the "morning" that this material can be necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the Bank 56 Act of 2004, where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the instruments of monetary policy.

He said that after that ensures the budget law materials; fifty-bind the central bank sold $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price.

On the possibility of appeal in this article explained Taan it after it became effective the law has no right except for the presidency challenged Almaldh 50 of the Budget Law because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing the dollar exchange rate, describing it as a procedure is not true.

He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the the domestic market, leading to exchange rate fluctuations.

He explained that the sales problem is not foreign remittances, but at home, where thelocal currency bloc too big of 35 trillion dinars in circulation, a haunt of $ 75 million, and for us to imagine the rise in the dollar's exchange rate.

saw Taan that The only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior.

The central bank's shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after the dollar corresponds to about 4000 dinars before 2003.

http://www.alsabaah.iq/ArticleShow.aspx?ID=86388

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Aggiedad77: 
 Here are some thoughts and opinions that got provoked with the reading of this article

The governor of the CBI did not like what came out in Article 50 of the budget....it more than ties their hands if it is implemented

He convinces the Economic Committee to raise issue with Article 50 and it eventually is thrown to the Federal Court this past week

Meanwhile President Masum temporarily loses his esteemed pen reserved for the signing of such monumental documents....seems he wants this remedied before he puts his pen to this historic document recognizing the full ramifications it will have for all of Iraq and he world

If Masum has signed this then the other details have been worked out....worked out to the satisfaction of the CBI.....don't go messing where the 12 do not want your interference to start with....thus the independence set up for all central banks

Can't blame the Finance Committee for trying though, they didn't know any better

So much for thoughts and opinions   Aloha    Randy

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