Hspot Hey I have a question, when they say there is x amount in circulation, how much of that is in foreign currency reserves in other countries, or do those not count?
blackgold You better believe the US is holding dinar,Iran, Kuwait and a few other countries
Hspot blackgold but are those reserves counted as the number in circulation
Hspot This high number of notes in circulation could be very deceiving to us could be a ploy
Sparky Hspot another good point…3 places in the notes could be fils
Hspot Sparky elaborate a little more on that
Dave Cbi minted fils yrs ago……never went into circulation
Sparky Hspot no, not all. They only have to cover the dinar in circulation, imo
Hspot Sparky but what is a circulation? are the dinar that are held in our reserves and other countries are considered in circulation
Sparky Hspot hard to decipher iraqI articles
Dave Sparky seemed to wind down the auctions lately
Sparky Dave maybe a good sign… sucked in enough to do something with their currency
Dave Sparky mcp? imf dont like it
Sparky Dave multiple currency practices
Hspot How long ago did Iraq state, no mCP s
Dave IMF says no to MCP….
Hspot That’s what I meant
Hspot Said Iraq because that’s what we’re dealing with
Sparky Dave border taxation…street vendors…not sure about mcp
Dave CBI makes on the spread
Hspot Why don’t they just state dual-currency practices, since they just deal with dinar and USD
blackgold Why don’t they just make the dinar 1 to 1 with USD since its their oil anyway
Dave blackgold TOO EASY
Sparky Hspot their all about oil now, petro dollars…but, they can be so much more
Hspot Because then they would have to deal with Sam? LOL
blackgold You mean they won’t be able to keep raping Iraq like they are doing
Sparky blackgold CBI would leave money on the table…wont happen
blackgold Western oil firms remain as US exits Iraq. The end of the US military occupation does not mean Iraqis have full control of their oil. Baghdad, Iraq – While the US military has formally ended its occupation of Iraq, some of the largest western oil companies, ExxonMobil, BP and Shell, remain.Jan 7, 2012
blackgold They don’t seem to worry about security stability Its a bunch of crap
Dave blackgold THAT does not touch the stuff they have FOUND
blackgold Dave True
Dave Since 2012 or have yet found its an ASSET
Sparky Everybody wants a piece of iraq
Hspot How many stock people do you think are climbing all over each other to get in line to invest in Iraq right now
Sparky Hspot my guess is me and a couple more… thousand
Kaperoni Hspot – MCP does not mean duel currencies like the dinar and dollar. Iraq will always have such since they sell oil and are paid in dollars for that oil. MCP is referring to a variation in the exchange rate in different parts of Iraq. Creating, in effect duel prices for goods. That is what MCP mean. Fortunately for us, Iraq is now within the requirement of 2% or less so that is not an issue anymore.
Hspot Kaperoni thanks for pointing that out. Many people I’m sure think the way I thought
Sparky Kaperoni thanks Kap
Hspot I am sure that when everybody sees multiple currency practices, or most to least, they think they’re using different currencies in the country
Kaperoni My buddy Sam is here causing trouble?
Kaperoni hi Sparky
Sam I Am Hello again, Kap
Sparky Kaperoni thanks for clearing that up… and for stopping by
Kaperoni Dont sound so excited. I can leave lol
Sparky Kaperoni is it possible to know how much dinar is still in circulation? I didn’t think they have to tell us about that
Sam I Am Kap, did you ever address the deflation issue?
sandyf @Sam I Am sandyf I read them years ago. Probably back around 2012.
Obviously forgotten the role General Tant had then, who do you think was leading the CPA and CBI in respect of the currency introduction.
I respect your views in general but not everything you state is as factually accurate as you seem to believe and I would say the same thing about Kap. It is in everyones interest to keep the information as accurate as possible, opinions are just that.
Hspot Was there someone that wished for these three guys to be in this room at one time?
sandyf @Chocolatiere Good morning .. Hope Kaperoni is right because I just came across this comment by FORBES quote ( facts and figures, noting that in 2003 the Iraqi government replaced its old currency (known as “Swiss” dinars) with a new currency and offered to convert 150 new dinars to one old dinar.
What you have quoted is incorrect with an obvious agenda.
In 2003 there were 2 types of dinar “Swiss” and “Saddam”, the “Swiss” were only used in Kurdistan and a lot less of them than the other. Only the “Swiss” were exchanged at 150 to one, the other at one to one. There was no overnight devaluation, the major currency was exchanged at par and the “Swiss” notes removed from circulation.
Based on the original redemption figure and population/economic growth it is more likely the currency outside Iraq is around 40-50% rather than the 80% quoted. There is no such thing as “generally not convertible”, currency is either non convertible, partially convertible or fully convertible.
blackgold Sandyf and Kap
Kaperoni Sam no idea, but this is not my theory or idea. I have proven with documents the plan for the dinar. Nothing more I need to do/ Believe what you want.
Hspot And Sam
blackgold go for it
Hspot blackgold I was saying that I saw somebody wanted those three to be in here having a conversation
Sparky Kaperoni love that Vegas
blackgold somebody start here is everyone’s chance
Sam I Am sandyf You have your Tant quote and I have a chart from economists. You might disagree with what the chart says, but it’s not me saying that the IQD was introduced at less than 1500:1 it’s economists. Argue with them.
Sam I Am Show me a chart that confirms what Tant said
Kaperoni Sparky there are numbers published but depends on if you believe them or not.
blackgold Of course the crooks will never give numbers not in their favor
Hspot Kaperoni are dinar s held in foreign currency reserves considered in circulation?
Sparky Kaperoni float to 10 cents…how long in your guesstimate?
blackgold I knew sandyf wouldn’t last long
Hspot blackgold most likely cannot take the feedback
Kaperoni Blackgold, keep in mind how the auctions work. To maintain stability with the dinar it requires a balance of dinars to dollars. So it is impossible to reduce one without effecting the price of the other. That is why they cannot reduce the money supply before they float.
Sparky Kaperoni they only published what was made…they have no requirement to say what is in circulation
Kaperoni hspot I do not think so. But at this time, I do not know if many or any central banks hold dinar.
Sam I Am You reduce the money supply by redenominating
Sam I Am that’s how it’s done in the real world
blackgold who says its impossible? Just do it
Hspot Kaperoni you don’t think that our u.s. foreign currency reserve holds dinar
Sparky Sam I Am there maybe a lot less m0
Kaperoni Sam, redenomination does not necessarily mean LOP. That is just a technical term for changing the face of currency. We all know that will happen.
blackgold Iraq never agreed to sell oil in dollars anyway, it should be sold in dinar, thats their currency
Sparky They certainly wont say
Hspot Kaperoni that is what I have always felt about when they say Rd
Sam I Am Kaperoni You’re right. They redenominated in 2003 without lopping, and Kuwait redenominated after the occupation without a lop, but when they redenominate and remove zeros … that’s a lop.
Kaperoni hspot they may. but I was talking about globally.
Young SC Ohhhh my goodness what did i walk into Lol Another great debate
Hspot Young SC a civilized conversation between 2 not so light people LOL sorry guys. Imagine if Andre was here LOL
blackgold No difference between Kuwait and Iraq, just alot of who shot John
Sam I Am Show me one country in history that has removed zeros from their currency via revaluation rather than redenomination
Sam I Am In other words, they added new lower denominations in the same series to adjust for the new rate
Kaperoni Sam show me one country that has had successful and stable monetary policy do a LOP? lol
Sparky I believe they can dollar use, or, de dollarize as they wish…like a balloon
blackgold Look admit it, UN US World Bank and IMF are keeping Iraq poor
Kaperoni No other country that I know of has intentionally sold its currency globally to the extend Iraq has prior to making it convertible worldwide. Seems like economic suicide to me if the LOP.
blackgold Kaperoni You saying the US didn’t know they were selling it to us
Kaperoni black, well sorta. Its up to them to make the required improvements, changes and requirement to join the world. If they dont, they stay where they are in Article XIV
blackgold Thats bull and you know it
blackgold Its been 14 years
Kaperoni black…no i am saying they do know
Sam I Am Kaperoni Kap, you’re talking about what they will do. I’m talking about what they say. I personally doubt that they will ever lop because they don’t want to be on the hook for billions of USD to pay for the trillions they exported.
Sparky Kaperoni any thoughts on how much IQD is still in circulation in Iraq?
blackgold The oil companies arn’t having any problems selling their oil
Young SC Don961: Monetary policy and raise the visa fees for Iranians
Friday, 15 March 2019 Talal Barakat The monetary policy aimed at emptying the treasury of the Iraqi state is part of the plan to dispel the wealth of Iraq to continue the scarcity of cash from hard currency in order not to increase the value of the Iraqi dinar against the dollar .. because it is obvious whenever the reserve of hard currency increases in the state treasury whenever the value of the local currency increases.
Young SC LINK
Kaperoni So Sam, you think it will just stay weak forever?
Kaperoni Cause if you do, I dont agree
Sam I Am Kaperoni I think it will stay at less than 1/10 of a penny until they replace it. Yeah
Kaperoni Well we dont agree
blackgold They can’t afford to replace it
Sam I Am Their problem isn’t a low value. Their problem is violence, poor infrastructure, lack of economic diversity, and Iran
Young SC Sam I Am He thinks it will devalue even further down
Sam I Am S. Korea has a currency about the same value and they’re going great.
blackgold Its safer it Iraq than Detroit or Chicago
Kaperoni I think you need to look at the bigger picture then Sam. Iraq needs investors/investment…billions of dollars to rebuild, create a market economy. That will create economic pressure and the solution to that is to raise the value.
Sam I Am It takes 11 dong to buy one dinar and Vietnam is doing good
blackgold that security crap don’t fly anymore
Sam I Am Kaperoni They also need to diversify their economy and build up their non-petroleum exports. To do that they need to keep the value low.
Young SC The Iraqi citizen would like to see his currency strong, so the process of raising zeros will contribute to the revaluation of the currency, and reduce the proportion of demand for hard currency, which is characterized by force, and will lead to a balance between the value of domestic and foreign currency and will give them market power at home and abroad,
It is possible that the value of the Iraqi currency against the US dollar, for example, that the employee who receives 1200 thousand dinars at the exchange rate 1200, the purchasing power of $ 1000 dollars and if the strengthening of the dinar equivalent to 500 dinars to the dollar will be purchasing power $ 2400 instead of $ 1000 BURATHANEWS.COM8
Sparky Sam I Am what about Reconstruction imports…in order to rebuild the country
Kaperoni Sam I do not agree. And most economists don’t agree with keeping the dinar week. In fact, most want Iraq to make the move like yesterday. lol They want price discovery and want the banking system open to the world.
Sparky Wouldn’t that be beneficial for a higher exchange rate?
Sam I Am Kaperoni Do you have any economists who support your float theory?
Sam I Am Because I can show you a few that consider the dinar investment a scam
blackgold The following is a list of International Oil Companies (IOCs) operating in Iraq under licences granted by the Ministry of Oil in Baghdad:
China National Offshore Oil Corporation (CNOOC)
China National Petroleum Corporation (CNPC)
Egyptian General Petroleum Corporation (EGPC)
Kaperoni Sam it is not my theory, it is in print. Stop ignoring what is in print. Do you know what the Balassa-Samuelson effect is?
blackgold I thought Iraq wasn’t international
Sam I Am Kaperoni Yes, Kap.
Sam I Am But I don’t think it means what you think it means
Sam I Am When you raise the exchange rate it lowers the value
Sparky Sam I Am making it more attractive to importers…nin
Sam I Am That’s exactly what’s happening in Vietnam
Sam I Am Very productive and the dong is losing value
Kaperoni Balassa-Samuelson effect is clear as day in print in the IMF Article IV…so what does that mean? Here is the explanation
Kaperoni When you search Wikipedia, you get an explanation for this as…”Balassa–Samuelson (BS) hypothesis implies that countries with rapidly expanding economies should tend to have more rapidly appreciating exchange rates.”
In other words, the IMF themselves are acknowledging (by saying Balassa–Samuelson effect in this Article IV document) the dinar will rise rapidly.
Kaperoni That is not my theory
blackgold Just alot of who shot John
Sam I Am A “rapidly appreciating exchange rate” would mean going from 1190 to 1200 to 1210 … etc. Sam I Am that would lower the value
Kaperoni Argue with the IMF if you do not agree
Sparky Kaperoni ” will rise rapidly”. , love it
blackgold bbl when you come up with something interesting and meaningful
Sam I Am that’s why the last two changes the exchange rate went up and the dinar lost value
Kaperoni “In 1964, academics Bela Balassa, a Hungarian economist, and Paul Samuelson, a Nobel-Laureate economist, independently observed that countries with higher levels of productivity growth experienced rapidly rising real wages and so appreciating real exchange rates.
Academic studies since have suggested the picture is not as simple as Mr Balassa and Mr Samuelson first thought and that many other factors can also influence the model.
However, many long term investors in emerging market currencies, for example, have been able to benefit from the appreciation of those currencies which is arguably due to the Balassa-Samuelson effect.”
Sam I Am it’s beginning to happen Your problem is that you’re interpreting an appreciating exchange rate as a more valuable currency but it’s the opposite
Kaperoni No its not
Sam I Am countries with growing economies tend to have a currency that loses value
Sam I Am that’s what the effect means
Kaperoni It would not make sense in the context if it got weaker. lol
Kaperoni No they dont
Young SC Sam I Am no vice versa came happen the other way aswell
Kaperoni growing economies have increased GDP and such so the currency appreciates.
Young SC Can increase also
Kaperoni Sam your picking and choosing words and not reading the context in which they are presented.
Sparky Kaperoni what about investment money putting pressure on inflation
Sparky thats how we get there
Kaperoni sparky, yes. substantial investment will cause pressure on the CBI. This is why the CBI needs a tool to counter such. That tool is the a liberal exchange rate regime (float) to allow the gradual appreciation of the currency to offset such pressure.
Kaperoni So all this comes down to Iraq and opening up to investors/investment.
Sparky Kaperoni trade
Kaperoni Ok I am tired and my fingers hurt. Off to dinner. Have a great night. bye.
Sparky Kaperoni thanks for stoppingi by Kap !
Sparky Trade is later, after the Reconstruction gold rush
Sparky They have to import, before they export…imo
Sparky Oops, Zig may sentence me for one day, for interrupting