Frank26 1 to 1 is not even worth talking about anymore. It may come at $1.30 to 1 or $1.50 to 1. I believe the cap of the REER may be around $4.25. Let’s see what happens to my opinion.
Kaperoni It is highly unlikely that any bank will have anything to do with the dinar for quite some time. Banks are conservative by nature and the dinar could be quite volatile once they begin to float. In the past we have talked about market makers and ECNs. These could end up being the method to facilitate your currency investment or through an established financial institution such as JP Morgan. Time will answer these questions.
MarkZ [via PDK] Float = Raise. There has been debate over the translation and about whether it will be a soft peg, a managed float or whether it will actually be a float at all. I think they have been clear they are going to peg it. But, it is confusing.
Pimpy My personal feeling is they are going to take the zeros off. Do I want Iraq to take the zeros off? No. I would hope they would leave it on and then revalue it with a higher exchange rate. That’s what I’m hoping for.
Militia Man Rebuilding the country is not going to happen anytime soon with 1310…Obviously they’ve got something else in mind because they’ve already said they’ve launched the projects, therefore there’s contracts involved. What the rates are with the contracts that’s private information...They know how to keep things quiet until the right time…
Frank26 [Iraq boots-on-the-ground report] FIREFLY: Saleh is on television and he says it’s time to float the dinar and get rid of the parallel market. FRANK: Well thank you Saleh! …Sudani says get out there and clean this [we’re not going to float] mess up…Of course we’re going to float. FIREFLY: He says we have 10x the amount to support a new rate. FRANK: This is the man Sudani sent to you…He’s telling these economists …don’t understand the agreement the CBI made with the US Treasury concerning the new exchange rate or they are being paid by you know who to put out false information.
Kaperoni I remind everyone just two weeks ago the Central Bank of Iraq announced that they plan to end the currency auctions by the end of the year. If that is the plan, they must have a replacement which is the float.
MarkZ [via PDK] I think there is an excellent shot we will be done by the 9th… Comment: I hear tomorrow will be. a BIG day. MarkZ: I know a lot of people are expecting it on Sun or Mon… I don’t know if it will be tomorrow or not, but there is a tremendous amount of chatter…I am not hearing anything negative…everything is positive…All my contacts in Iraq are saying the trigger is now with the CBI and they are going to pull it soon. They are informing people …they are educating people and telling Iraqi citizens to be prepared for a change in value…
Clare Article: “Specialist: Floating the dinar is economic suicide” Quote: “Economist Muhammad Hashem Helou confirmed that the central bank cannot float the dinar exchange rate…adding that floating the exchange rate in the presence of a parallel market and large speculators, and the presence of people who own billions of dinars and others who own billions of dollars, will lead to a sharp decline in the value of the currency, high levels of inflation, and rising prices”
Paulette Article: “Specialist: Floating the dinar is economic suicide” As Saleh was stating but only stronger wording.
Frank26 [Iraq boots-on-the-ground report] FIREFLY: The economists here are saying with so much on the line from the budget funding all types of investment in our economy they’re saying the exchange rate will be fixed. It’s not going to float because there’s too many bad things that can happen with a float…Now we have another guy coming on the news saying floating the dinar is suicidal. FRANK: Hey, you don’t want us to do that because that’s what Sudani wants…because that’s what the CBI agreed with the US Treasury.
MarkZ [via PDK] …they have started paying their retirees and disabled, welfare etc…they finally have money moving where it is supposed to on all those fronts. And all the progress they have made getting CBI salaries to people. They are completing everything they need for world trade and ascension, and all the settlements they have made to get out of chapter 8 after the invasion of Kuwait. Phenomenal progress has been made… Progress over the last 16 months has been stunning.
