Currency Chatter

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News & Links With Member Discussion

Phillyman:    The low sales of the Central Bank today to $ 170 million

Baghdad/… Central Bank sales, fell Wednesday in Basra to sell foreign currency to sell 170 million dollars after today 188 million dollars.

The Bank’s statement said, “Iraq News” that “the size of the amount sold Tuesday stood at 179 million and $ 760,000, 1166 dinars exchange rate to the dollar, with the participation of 24 banks and 16” remittance company.

He noted that “the volume of remittances and payments appropriations amounted to 147 million dollars, while the quantity sold 23 million cash and $ 760,000.

The statement said the Central Bank continues to buy and sell the dollar the price 1166 DT “, adding that” retail price of remittances 1187 dinar/us $, including the Central Bank and the Commission of 21 dinars for each dollar in cash sale price $ 1190 dinar/us $, including the Central Bank and the Commission of 24 dinars to the dollar.

Central Bank Governor Ali al-allaq agency announced on November 20 that the Bank’s foreign currency reserves reached 60 billion dollars, “adding that” sufficient for six months “, adding that” the Central Bank is working on a parallel policy of maintaining general price stability and curbing inflation. “end quote 1

http://aynaliraqnews.com/index.php?aa=news&id22=49057

Schizz:    The auctions are logged ahead of time, hence still the old rate…more proof that they are lfalisifying these auctions.  You will see the new rate in a few days in the auction results.

I pretty much ignore any info on the auctions…they are faked folks. It is completely true that there has been fraudulant actions taken to do with these currency auctions. The cbi idiot can deny it all he wants.

They messed up big stylee a couple of years ago and posted the wrong results (stayed up for half a day)…results 3 or 4 days into the future.

PreacherMan: Good Morning everyone, Heres XE
http://www.xe.com/currencyconverter/convert/?Amount=1&From=USD&To=IQD

Brule:    The IMF is in control of this ship.  Whatever this change is, we know what the IMF wants, needs, and what their goal is.

Schizz:    Maybe they are going to go to 0.80 instead of what we have thought as an option 0.86…who knows, totally not worried though.

High Five:    The Dec 3rd auction is also posted – – 3 banks participating – 2,170,000 sold (very low) and all of it in cash.  There is only 1 other time, since 2009,  that an auction has happened where it was 100% cash and no credit.  The other time was in May of 2011 and the total auction sold only 3,515.00 in cash. Not sure exactly what this is about.

G-Lin:    GM all. I just called xchange of America to see if their rates decreased and they have not. Same pricing. What is interesting to me is the CBI and the IMF both have recently stated in many arts that they do not support a devalue in Iraq’s currency rate. We have read that so many times.

I’m trying to get my head around this move. This is still an artificially imposed rate. I’m sure there is a reason for the adjustment. I would think purchasing power decreased with this move. Is it directed at corruption, market value, black market pricing before tariffs are impemented?

I’m just thinking out loud because it goes against everything the CBI and IMF have told us. And also interesting that no announcement of any kind on CBI. We are going into a 3 day closure of CBI. Tomorrow is a holiday and Friday and Saturday are their days off. Next chance to see any changes will be Sunday. I guess bottom line is, I’m just puzzled.

Brule:    Double auction entry for today:

Currency Auctions   Announcement No. (3086)

The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq  on Wednesday, 2/12/2015 and the results were as follows:
DETAILS ————————- NOTES

Number of banks 24

Number of remittance companies 16
Auction price selling dinar / US$ 1166
Auction price buying dinar / US$ —–
Amount sold at auction price (US$) 170,760,000
Amount purchased at Auction price (US$) —–
Total offers for buying (US$) 170,760,000
Total offers for selling (US$) —–

Additionally:

1. Quantity sold to banks from the date of 01.04.2015 until 12.02.2015 (41,260,883,386) dollars.
2. Quantity sold to banks from the date of 01.04.2014 until 12.02.2014 (48,084,533,000) dollars.

3. Note that:
* Sarabie amounts transferred to accounts in banks abroad (1187) dinars
per dollar, including the commission of the Central Bank of $ 21 dinars per dollar.
* Cash sales price (1190) dollars Danarlkl including the commission of the
Central Bank of $(24) dinars per dollar.
*******************************************

Announcement No. (3087)

The opening offers the sale and purchase of foreign currency in the window of the Central Bank of Iraq for Thursday, 3/12/2015 – with the post day Wednesday, 2/12/2015 and the results were as follows:

DETAILS ———————— NOTES

Number of banks 3

Number of remittance companies 2
Auction price selling dinar / US$ 1166
Auction price buying dinar / US$ —–
Amount sold at auction price (US$) 2,170,000
Amount purchased at Auction price (US$) —–
Total offers for buying (US$) 2,170,000
Total offers for selling (US$) —–

Additionally:

1. Quantity sold to banks from the date of 01.04.2015 until 12.03.2015 (41,263,053,386) dollars.
2. Quantity sold to banks from the date of 01.04.2014 until 12.03.2014 (48,283,675,000) dollars.

3. Note that:
* Sarabie amounts transferred to accounts in banks abroad (1187) dinars
per dollar, including the commission of the Central Bank of $ 21 dinars per dollar.
* Cash sales price (1190) dollars Danarlkl including the commission of the
Central Bank of $(24) dinars per dollar

PreacherMan:    Thanks Hi-five and Brule,,,   Only 2 million for Dec 3.  Im going to wait a few more days before I go BAM.
PreacherMan:    From a friend of mine..  I did get his permission…..

Blue:    Hold onto your hats. Something is happening. This is the first rate change in years. It is the first time they moved this direction , ever in this entire ballgame. The IMF is in charge .. things are different than they have ever been before. Time will tell.

This could be a major head fake, getting citizens to get rid of their dinar in country. No one knows what they are doing… but they are doing many DIFFERENT things now. When you read what Arthur wrote, take heart, but remember he wrote it yesterday before we saw this development of a slight change in rate… in the wrong direction.   ~ Blue
______________________

CURRENCY CODE SELL BUY

US dollar USD 1182.000 1180.000

Euro EUR 1252.920 1252.294

British pound GBP 1782.220 1781.328

Canadian dollar CAD 883.937 883.495

Swiss franc CHF 1148.911 1148.337

Swedish krona SEK 135.959 135.891

Norwegian krone NOK 136.164 136.096

Danish krone DKK 167.948 167.864
Japanese yen JPY 9.598 9.593

Special Drawing Rights SDR 1623.973 1623.161
Indicative rates – 02.12.2015
www.cbi.iq
Central Bank of Iraq (CBI)
The primary objectives of the Central Bank of Iraq (CBI) is to ensure domestic price stability and foster a stable competitive market based financial system.
Read  more…
______

JerDen:    very good chance to be within 2% compliance now very interesting the rate even moved and even though it went up, it will help in the long run, this isn’t  bad by me this is a good thing if you have been watching the auctions and always prayed for the 2% compliance everytime like I have. maybe this is what is needed, they need the 2% compliance to implement the AML and Investment Law, which I am still waiting for  ~ JerDen
____

(Someone stated this Tom is Tlar)

Tom:   I am sorry but I promise you I had nothing to do with the decision to drop the dinar value 16 pips. I argued against it but keywords won’t listen to me anymore. Apparently he is now doing his  own thing. Lol

As to why they did this, who knows. There are any number of reasons that could be used. They talked in earlier articles about adjusting the rate to more match the street value. Very few in Iraq are using the dinar precisely because it has no value.

You can call for the people to use the currency all you want but until they give it value, it’s all for not. The currency in the streets is USD and many Iraqi’s don’t want dinars even as change both because of value and condition.

That is the biggest problem the CBI faces. People don’t want to use the dinar. A 250 is at 1180 is worth so little that it takes 5 of them to match a dollar. Iraq being a cash society, mainly carry their cash.

So to carry 50 dollars in dinar 250’s is a bundle. Until they give the dinar value, keywords can kiss goodbye any hope of Iraqi’s dealing in their own currency and from this point on, until they do change the value, I think they will be chasing the street value a pip at a time the wrong direction.

As to this change to 1180, I think it makes no difference either to this investment or me personally. I don’t plan to sell until they RV the currency. ~Tom
________
Arthur: “The Mother Of All RV Windows Has Emerged”
12/1/2015

Arthur: Its probably a good thing that we are so numb to this now so that this highly anticipated and exciting moment is going relatively under the radar.

In all the years prior most people were really hyped excited as we got close to the 1st of the year and a lot of those years it was just unwarranted excitement driven by rumors.

But I am here to tell you, even without referring to the outstanding positive intel I am getting from places that have never been this RV positive before, that EVERYTHING we are seeing at this particular moment in time points toward some positive change in the status quo as we have known it for all these years

There are many factors too numerous to count that makes this EOY totally different than others, but one thing we know for sure is we have never seen a working, full blown and implemented budget in Iraq  because conditions have never been conducive in this factionally divided nation for that to occur until now.

Think back to a few years ago when Shabibi himself said that he would RV the currency if there was the requisite level of economic and security stability. Now think where we are now.

No more do we here about provinces falling to ISIS and fear of green zone encroachment but just the opposite that they are defeating ISIS at every turn with the help of PTB air strikes.

We have seen the purchase of major tonnage of gold over the past several months to back the asset back IQD and a systematic diminution of the note count to make way for the LD’s that by all indication are now ready to be distributed

And most importantly, we now see the beginning of a special session to finally determine the mechanisms for fair distribution of give and take between the center and the region as well all the entirety of the Iraqi provinces via the HCL agreement that is by all indications embedded within the 2016 budget that has been targeted to be completed in this month of December 2015.

It is now quite evident that the IMF/UN and other controlling PTB entities including China who is now to have a prominent role in the SDR basket of world currencies which will forever change the international economic landscape as we know it putting new pro RV pressures on the Authors Of The Plan that tell us that the mother of all RV windows has emerged between NOW and Jan 15th of 2016. ~  Arthur
_______

Revbo:   Hey, at least they moved. Finally. ~ Revbo

Punisher:  I must agree with Revbo. And before everyone jumps on me saying I have dinar goggles on…at least it did move once we entered the month of December…so clearly something is going on. The IMF is there helping them and I don’t think they just all of a sudden pulled a fast one on the IMF and want to penalize their own citizens. We will have to watch and see what they are trying to accomplish with this move….I am just glad they are doing this all before 2016 hits. The first part of 2016 will be interesting indeed!  ~ Punisher
______

High-Five:  The Dec 3rd auction is also posted – – 3 banks participating – 2,170,000 sold (very low) and all of it in cash. There is only 1 other time, since 2009, that an auction has happened where it was 100% cash and no credit. The other time was in May of 2011  and the total auction sold only 3,515.00 in cash. ~ Hi-Five

This move will help in all these areas:

National Banking RelationsReintegration into Global Financial SystemInternationally Accepted CurrencyWTO – World Trade OrganizationIMF   – Move to Article VIII

I believe the IMF did this by this article IMHO

Central» Iraqi sold dollars in coordination with the IMF Basra, the Iraqi Central Branch

Sunday, November 29, 2015 (00:00 – GMT)

Said Governor of the Central Bank of Iraq on the Keywords, that the banking sector «derives its strength from the reality of the economy», pointing to the «indicators shown by the relevant studies, stating that Iraq is moving towards strengthening its resources and increase the gross domestic product for the coming years, and with opportunities achieve security and stability of the banking sector will be the beneficiary of the These indicators with the availability of a large market opportunities and wide in front of the banking sector. » 

It believed that «the private sector and civil society, deal with the proportion of the two banks, or Tsalhma banking services, is very limited compared to the number of the population». Keywords announced in an interview to «life», the central bank «is working to develop a mechanism to deal with the banking sector because it is the most important in the economic sector and the financial arm part».

It did not rule out that «carried the Iraqi banking sector played a pivotal role in the next phase», stressing that the phenomenon of weak governance, especially in private banks, and the lack of a clear separation between the executive departments and boards of directors, makes us in front of the phenomenon of weakening the role of the observer compliance units to combat money laundering in most Supplies ».

He stressed that the central bank «being reviewed in accordance with international standards.» And the role of banks in stimulating the development of the Iraqi economy and its sectors, Keywords that «the nature of the establishment of private banks in Iraq, conditions, led to the founding of banks lack the practices and standards governing the work of banks, which have evolved in remarkable form in the said countries in the world.» 

He explained that «What we are seeing in most Iraqi banks does not reflect the principle of governance in terms of the separation of administration from the owners and the associated management operations of those banks, transparency and disclosure».

He pointed out «the phenomenon of the dominance of the members of the boards of directors of banks decisions, but they are often on loans to their advantage or to their relatives», stressing that the central bank «later years to establish these banks prepare a comprehensive audit procedures». 

He disclosed that the global audit office «completed calendar for each process to end the banks to the decisions and directives of the task put in front of banks and responsibilities, and enables the central bank to take appropriate action based on its oversight role and responsibility in strengthening the financial and banking stability and ward off the dangers.» 

And the increased activity of Islamic banks, he said that Islamic banking «modern configuration», but «a good  performance relative to the composition environment and working conditions». 

He predicted «the growth of this type of banks», pointing to the «many requests for the establishment of, and the voice of the   Chamber of Deputies finally the law».

With regard to the initiative of the Iraqi Central Bank to lend to small and medium enterprises through banks, Keywords explained that this initiative «assume a central goal is to activate the productive sector in Iraq and diversification, and the reduction of unemployment through the support of the private sector». 

So it was «emphasis on the need to use such loans to achieve these objectives, and is still the subject of our attention, but this goal we put rules and regulations in coordination with the sectoral ministries and professional associations and stakeholders, while the= central bank takes control in order to verify the conduct financing operations, according to the objectives and procedures established». And the foreign currency auction, organized by the Central Bank, debate and controversy about its objectives, 

he stressed that «no auction for the currency at the central bank, and he gets it for the period after 2003 and then canceled, and shall« Central »is currently selling foreign currency on the basis of a fixed exchange rate with some price flexibility ».

 He said: «the very nature of financial resources and to cove government spending, the government sells dollars to the Central Bank for the Iraqi dinar to cover general budget expenditures, and the bank sells the dollar to the private sector for the dinar on the one hand, and to finance the import foreign transfers, and to achieve this balance in the money supply does not It leads to inflation through excessive cash, if they went to print currency option ». 

Although it was announced that «the central review this process constantly and directly coordinate with the International Monetary Fund, the fact that Iraq in the fund member is committed to the guiding principles as the rest of, the Member States».  LINK

G-Lin:    Well how do you publish the results of the  Dec. 3rd auction on Dec.2? It is on the rate site as well. schizz you are probably right about the auctions. Biggest corruption tool they have.

http://www.cbi.iq/documents/C.B.I.%20FOREIGN%20EXCHANGE.pdf

Oldwazhisname:    We should not be surprised by this move. It is my guess that this move was under the direction of the IMF and the IMF is “quickly” taking charge of the situation at the CBI. One of the critical issues within the CBI with all of the warning lights blinking, is the draining off of the CBI’s reserves.
Those reserves are only 2/3 what they were a year ago and others in Iraq have commented that this represents only maybe 6 months of reserves to continue to fund their deficit situation. I like how the IMF is possibly taking charge of the situation to correct its imbalance situation.

Whether this is a precursor to an RV event or just effecting monetary policy that is needed at this time remains to be seen.

In order to understand what this means in the context of how the CBI functions, you have to understand how excess reserves were originally created and how reserves are now being used up. For the better part of the last 6-7 years (until a year and half ago), Iraq enjoyed a surplus in its trade balance as it related to oil sales.

Because of the high price of oil and the increase in production, Iraq had monthly increases to its reserve funds as it took in more money than its budget allowed the government to spend. Its fund balance increased each month.

All of that changed when oil prices took a dive and as we all know Iraq has a deficit cash flow situation where not enough money is coming in. Just like you and I would, we have three basic choices: cut back on spending, go get a loan to bridge the deficit or try to increase revenues to get back to “breakeven”; otherwise we spend what savings we have to make ends meet. We see all of these at play.

Iraq has slashed its budget (but with the high cost of fighting the terrorist war and the civil unrest as a result cutting salaries there is a lot of resistance to this unpopular choice). Iraq has boosted oil sales but the other sources of greater revenues (read things like taxes and tariffs, all supported by increased economic activity in the private, international, agricultural, etc sectors) has come agonizing slow to come on line.

We see Iraq trying to borrow more but with limited success. Clearly, these remedies are going to take time to develop into a better situation. I think we would all agree much longer than the 6 month to one year horizon that the cushion would allow.

As to this latest move, consider what it does. It is most likely the latest attempt to stop this dangerous trend.As the current “official rate” of 1166 together with the approximate $200 million weekly dollar to IQD auction sales of trying to curb a parallel street rate of 1220 to 1300 IQD to USD rate, there is plenty of incentive to play that spread for profit. The demand for USD is an economic game that is played for great profit by those who can.

The USD is significantly more valuable than the IQD making every transaction a stress to the exchange rate. By moving toward devaluation of the IQD, the CBI moves closer to equilibrium between the street rate and the market rate.

The demand for USD is slightly abated. Further, all of the government costs that are denominated in IQD (especially salaries) just got a little cheaper. Inflation will be felt in the marketplace as a result.

My surprise is that the devalution wasn’t more frankly. This may be a test case to see how the market reacts.

I have read articles outside of the dinarland circles that other economist types think the equilibrium point is closer to 1500 IQD to the USD

Iraq struggles to get its economic house in order.  Bottom line I see this in the positives that IMF looks like it is increasingly making the tough choices that are needed. Albeit, not what we would like to see with all of us thinking an RV is imminent (this is pretty indicative that that is not the case), nonetheless we can have some comfort that a better expert will move things toward a more stable and successful outcome for the good of Iraq.

 Schizz:    Good post, thanks for sharing 🙂  I also have seen them talk about the equilibrium being around 1500, love that word…equilibrium  I think we are seeing the big boys make moves to making iraq a more suitable environment for change, sometimes you gotta go down to get ready to go back up again.

I think they are getting the market ready for the release of the 50k if that still goes ahead and as you said, this also helps the budget deficit a little.

From the articles I have read about the 50k, they had to release it to complete the current monetary structure. To release them they need to make the rate more suitable for its use…hence the small DV (i’m kinda expecting to see it go down more, but we will see)

I think the next thing after that to happen in Iraq will be a positive rate adjustment with the release of a new monetary structure….the smaller denoms. (when, aint that the question?) 😛

This is just guestimation from what I have read and we know how badly the arts translate, so, we will see.

Please don’t anyone be panicked by this move at the cbi, it doesn’t mean anything for us in terms of what we wait for, it may actually be a positive step in the right direction to currency reform and a new monetary structure

Mike:   Good stuff, OWHN. In every IMF consultation they talk about how the spread between official and market rates need to be within 2%, Iraqs had a difficult time making that happen. For me, this feels like an IMF shortcut to get the street and official rates within that band quickly.

Oldwazhisname:    Mike, I agree that this is likely a part of the reasoning.  The pace of needed moves certainly seem to have quickened and taking this step may very well have moved the spread issue into compliance “overnight”.  We’ll have to see it the street rate remains down or if it slips as the locals lose confidence in the IQD value.

Schizz:    here’s hopin Mike….the current cbi guy is clueless it seems, feel really confident now the imf is there, i’m sure they will have some short cuts that they can only do to get things rolling in iraq

Mally:    They can move the rate negative all they want.  If they stay in this closed auction system the street rate will always lag behind because there is money to be made buying and selling the more desirable dollar.

It only fixes the 2% spread issue in a snap shot in time type thinking, I cant see how that is needed for anything.  The 2% spread arguement never made sense to me, its to prevent varying exchange rates to protect imports and exports of countries, ie a dual currency rate system.

Iraq doesnt even really have a currency to have a dual rate with, they use the dollar still to buy all imports.  Once the dinar is convertable and they are buying imports with it then the 2% spread would be a must.

Maybe they will open up and say the dinar is international at 1180 or whatever figure and then make changes to the rate a little later.  Seems like putting the cart before the horse to me but this is Iraq.

G-Lin:    Mally I agree 100% on the 2% issue. That applies to the MCP.

Rockstar:    Absolutely G-Lin and Mally. Most don’t seems to really know what this 2% refers to and have come to wrong conclusions. Mally has said exactly what this means with regards to MCP. Thanks so much for posting again Mally! Countrygal and Pose have been spot on with their assessment and research of the 2%!!

Mally:    I have no idea Mike.  There is a lot in those IMF reports which seem more like general monetary policy lip service.  In Iraqs unique position of being an oil rich country selling a commodity in dollars and having a currency in a state of limbo which they dont use to buy anything externally I personally dont think there is much emphasis put on that even though it is always mentioned because its not really important.

If money traders thought they would make money buying the dinar today the swing would go the other way.  I think we often take things too literally jmo and I realize it always mentioned after those imf consultations so by all means I get where youre coming from

Mike:    I would agree, Mally, it pobably won’t stick, the folks that are selling the dollar will probably just make a small adjustment and the spread will likely move again.  Here’s what the IMF said for the 2015 Article 4 consultations:

The authorities have appropriately maintained the exchange rate peg. Liberalization steps taken by the Central Bank of Iraq led to a decline in the parallel market spread to less than 2 percent by end-2014. The imposition of new restrictions triggered significant market volatility and a sharply wider spread in the first months of this year, but their recent removal has helped narrow the spread back to 4 percent by July.

and this:

Foreign exchange market conditions improved in 2014, but worsened this year following the imposition of new restrictions, which have been since partly lifted. Steps toward liberalization taken by the CBI in the course of 2013–14 resulted in a decline in the parallel market spread to less than 2 percent in December 2014, despite the security crisis. 

In January 2015, however, the CBI reduced the volumes of cash currency sales and imposed a 15-day advance deposit requirement for foreign currency transactions. In addition, the government introduced a 5 percent customs duty advance payment and a 3 percent presumptive income tax to be paid at the time of request for foreign exchange to finance imports. 

In June, because of the negative impact on the parallel market (the spread rose to a record 16 percent) the authorities removed this measure and shortened the advance deposit requirement to five days. As a result, the spread quickly declined to about 6 percent by end-month.

 As of end-April, the CPI-based real effective exchange rate (measured using the official rate) appreciated by about 16 percent since end-2012, largely because of the strengthening of the U.S. dollar.

http://www.imf.org/external/pubs/ft/scr/2015/cr15235.pdf

Mike:    For now, Iraq is in Article XIV, it’s a prelude to Article VIII.  This is the stage where Iraq proves to the world and the IMF that they have a handle on their currency and it gives them a chance demonstrate it.

Before the world begins trading with them in dinar they’re going to want assurances that the dinar is stable and can hold it’s band within 2%.  I’m not going to make any snarky comments, but this is where the reader has to choose, they have to read and believe what the IMF has stated repeatedly, or they can go with country gal and pose.   My moneys on the IMF.

Mally:    If Iraq came out and said they will raise the value of the dinar vs other currencies in a rather matter of fact way what do you think would happen to the street rate of the dinar?

I agree that run away depreciation of the dinar is and was concerning to the imf but I just dont believe they care that much if its 2% or 4%.  The 2% band is a rule of thumb for countries using their currency.  Iraq is in an artifical bubble and yet they are being read the general playbook for developing countries.

I really dont think whats said behing closed doors and whats put out for public consumption is similar at all, were just kinda getting the general imf playbook read to us and we are hoping for a totally unique thing.

I havnt read cg or pose since they posted on pd so so those were just my thoughts.  Appreciate your thoughts Mike.

Gsjr:    China is doing well but the Euro is also having trouble.  Since January of this year, the euro has dropped 8% against the U.S. dollar. Since April of 2014, the currency has fallen 24% and since its peak at $1.58 in 2006, the euro has plunged 33% against the U.S. dollar.

Skylimit:    Blah, blah, blah, that 2% spread is total nonsense with an artificially low currency at a fixed rate set by a conquering country. This is an 80 to 90% political event vs. the balance of an economic event by a country with such overwhelming oil and natural resources that the currency can be priced at wherever the players agree to put it. Christine Lagarde is O’s buddy and together they will decide with Iraq what is best.

I’m tired of reading all of the analytical nonsense everyday when this is based on politics and perception. The world’s greatest debtor nation of all time is now considered to have the safest currency (i.e. US$) based on perception, will it change, sure at some point in the future. Randy K. is alot more right than many of you could possibly know.

High-Five:    Skylimit and Mally, I tend to agree with you.   I also have not understood how the 2% spread rule could apply to a currency under the following:

1)  A program rate
2)  A dual currency country

They are dealing in the US dollar in Iraq, and the auctions are used to draw in dinar and sell US dollars for street use and business.  So, it follows that there is a good spread between the dinar program rate and the market rate because in the market, the dinar rate is even more worthless than the program rate.

It will always be that way until they turn the currency on.   How can the dinar spread be fairly evaluated as long as the USD is in the mix?    Their economy is in a mess, and the demand for the dollar is high.

If the CBI would add value to the dinar, the 2% spread issue would come under control, and my guess is the auctions would stop since Iraq would be transitioning to a single currency country.

Mike:    I think we give Iraq way too much credit, they are a third world, ME country, occupied by an invader they can’t remove and their only source of revenue just lost 2/3s of its value. Iraqs not getting a pass to Article VIII, there are international guidelines they have to follow and adhere to. In the end, who really knows, it’s just difficult to ignore the recommendations of the IMF. IMO

Rockstar:   Amazing thoughts Mally as they are almost identical to what Pose and CG posted on their forum!! Brule posted the link but it won’t work unless you join. Anyway your thoughts and knowledge on the subject are right on in my opinion as well. Skylimit nicely stated thanks for your thoughts once again!

Flyboy:   Mike, these folks have been ignoring advice for years…just nuts…! Sitting on top of all that wealth and they don’t seem to be able to hit their face with either hand…go figure?

Skylimit:    mike, the world is now in a crisis period and the rule of law replaced by the political expediency of the day. The US Constitution is trashed by Executive Orders when Congress won’t go along and nor will Congress stand up to sitting presidents.

US companies build businesses in other countries and after the investments are made find that the host countries governments in some instances have expropriated their assets.

Hoplessly indebted Western countries and ruthless ME countries sponsoring terrorism and few human rights have currencies of substantial value. Propaganda is used to shape perceptions which creates a value based on that perception.

The real truth, objectivity, and standards are a casualty of today’s dumbed down political world. The ability to collaterize the assets of Iraq are more that enough to create a booming economy and create the perception that Iraq commands a strong currency and in today’s world of toilet paper currencies that perception maybe closer to the truth than we realize.

PreacherMan:    The price of foreign currencies in Iraqi dinars for Thursday December 3 2015     Wrote: December 3, 2015 LINK

US dollar of US $ 1 = 1,102.3100 Iraqi dinars
1 IQD = 0.0009 US dollars

euro 1 euro = 1,167.5256 dinars Iraqi
1 IQD = 0.0009 euros
Sterling £ 1 = 1,645.3125 Iraqi dinars
IQD 1 = 0.0006 pound
Canadian dollar CAD $ 1 = 827.0199 Iraqi dinar
IQD 1 = .0012 Canadian Dollar
Australian Dollar A $ 1 = 806.5250 dinars
IQD 1 = 0.0012 AUD
JPY 1 = 8.9349 Japanese yen Iraqi dinars
IQD 1 = 0.1119 Japanese yen

UoflGuy:       Preacher Man – I always appreciate your posts as they are upbeat but not ridiculous.  We all want the same thing and your angle is a positive but not phony angle on articles and information – for that THANK YOU!  Now, this latest tidbit of info that you posted about yesterday being 1182 and today is 1102…were those rates from the same site on these last two days?  If so…that is amazing news and something that we all need to watch…THANKS again for great posts!

PreacherMan:   You dont know how I appreciate that comment.  I almost just stopped posting, but, when I get emails from a few, looking for a little bit of light and confidence, it keeps me a going. I did notice CBI has not updated yet, for today, but, will be looking to see if the numbers are the same, some of the news articles are all over the place, I try to decide in my mind, should I, or shouldnt I, post it. Again a big Thanks !! to you, it made my day..

G-Lin:    DIFFERENT SOURCE SAME RATE. BTW CBI IS CLOSED UNTIL SUNDAY]
The price of foreign currencies in Iraqi dinars for Thursday December 32 015
Economy and Tenders Since 03.12.2015 at 09:37 (GMT Baghdad)

BAGHDAD – scales News   LINK

US $ 1 = 1,102.3100 Iraqi dinars

1 Iraqi dinars = US $ 0.0009

1 euro = Iraqi dinars 1,167.7879

IQD 1 = 0.0009 euros

£ 1 = 1,645.6465 Iraqi dinars

1 Iraqi Dinar = 0.0006 pounds

1 CAD = 826.5548 dinars

1 Iraqi Dinar = 0.0012 Canadian dollars

Australian $ 1 = 806.1298 dinars

1 Iraqi Dinar = 0.0012 Australian dollars

1 JPY = 8.9391 Iraqi Dinar

1 Iraqi Dinar = 0.1119 Japanese yen

Dinarblowyourhorn:     It seems clear something is happening….haha   I do hope it goes well for us.  For my money, almost any movement is good movement.  We have been pretty static for a long long time.  Thanks for the posts PM, GLin, et.al.

Mally:    Ya Im excited something is happening.  Did they make the move to article 8?  So excited I might fill that fbi form in and tell them about this dinarblowyourhorn fella

Aloha Alex:     Appreciate all who post – you too PM!
Pardon my ignorance, but could the fluctuations have something to do with the daily changes in the dollar? Evryday there is some movement, up or down, a little or a little more. I don’t buy into the ‘dollar gonna collapse hype better get gold now’ jargon. Been hearing that since the 70’s. US still is the biggest economy in the world, probably always will be.

But I sure like – love – the fact the IMF are in the inside now directing traffic. Heck, a lot better than waking up and reading “no quoram so meeting cancelled!”

Greg:    Something Fantastic is underway!!! I spoke with my Kurdish friend last night and I will speak to him again in greater detail tonight and then write a post about it. I will keep this shortt for now, but if you follow Millionday, she seems to be dead on accurate with what my friend told me last night. I will let you know more in about 12 hours but it sounds like we will all be happy within a month or so..

Skylimit:    At the risk of breaking my brain for the 1000th time on Iraq, what did Millionday say?

McDuff82:    She said the adjustment  to 1180   was something the cbi said they were going to do  before going international,but I could not find in her posts where the cbi said that.  she was very excited. ,but that is not new

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