KTFA Members “Forex Thoughts and Opinions” Wednesday 3-6-2024
KTFA:
Dano2668: IQD/USD? We are holding IQD, not converting to IQD. Should the chart not show this? around “.36” when you first open the chart to change the currencies it shows “Euro/USD”, wouldn’t we keep them in the same order and simply change the “EURO” for “IQD”?
…trying to understand what I’m looking at. .36 is still better than .0008 but ? Thank you for the clarification when you have a moment.
DeepWoodz: From Investopedia…
”A widely traded currency pair is the euro against the U.S. dollar or shown as EUR/USD. In fact, it is the most liquid currency pair in the world because it is the most heavily traded.1 The quotation EUR/USD = 1.2500 means that one euro is exchanged for 1.2500 U.S. dollars. In this case, EUR is the base currency and USD is the quote currency (counter currency). This means that 1 euro can be exchanged for 1.25 U.S. dollars.”
From forex.com…
“Currency pairs are also known as forex pairs. If you buy a currency pair, you’re buying the base currency and selling the quote currency. The bid (buy price) represents how much of the quote currency you need to buy one unit of the base currency. If you sell the currency pair, you’re selling the base currency and buying the quote currency.”
So currently,(according to forexlive) yes you can buy one dollar for 2.78 dinar. So currently, yes the exchange rate we are looking at is round about $0.35.
Frank made a comment that makes sense. Perhaps they are waiting for supply and demand to bring the rate up equal to or greater than a dollar before releasing it to the citizens. Or perhaps they can change the rate at will. I don’t know. Perhaps they are watching some metrics to ensure the dinars ability to maintain its value on its own.
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Harlequinc3: Deepwoodz, you are correct.
Think of / as meaning ‘into.’ So IQD ‘into’ USD is what we want to do here. So IQD/USD.
Then you have to remember reading left to right means ‘multiply’ and reading right to left means ‘divide.’ Think of the / like a fraction.
So to go from IQD ‘into’ USD — IQD/USD — that number is .36. Since you’re reading left to right (IQD into USD) you multiply the .36 by the base (say, $100) which is $36. If you had $100 of dinar it would be worth $36. 1 dinar is worth $.36.
If you wanted to convert USD into IQD, you’re now reading right to left (divide) — $100/.36 = 277.78 IQD. Meaning, if you had $100 and travelled to Iraq, they would give you 277.78 dinar.
Another way to think of that is to say it takes 2.77 dinar to equal $1.
Let’s see something. The CBOE is a futures options board — it’s not an exchange rate, it’s an options contract based on a future date. It’s taking bid/ask prices on the dinar “sometime in the future” (which is anywhere from 1 day to 6 months.) If we knew the date of that contract closing, we’d be able to say, okay, the rate will be XYZ on THAT date. Now, this lends itself to Frank’s “second set of books” and a managed float of the dinar. The CBI would know the rate at any specific point in time and use the “sterilized” auctions accordingly.
Notice Toronto SX showing .345 and CBOE is 2.92. As 2.92 goes up, .345 goes down. Therefore, doesn’t that imply 2.92 is NOT an exchange rate, but an actual dollar amount and the .345 is the currency pairing’s exchange rate? So, IF that .345 were to drop to .31 — that would make 3.22 the other way. Again, that’s NOT the actual rate, I think it’s showing the value of the dinar on futures options.
Gotta say, I think this is proof of what Frank’s been talking about. Can’t be a coincidence this skyrocketing started at 1.31 back in December. What a coincidence.
I’m open to anyone’s thoughts on this.
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Dano2668: Here’s what I found
“What is a Currency Pair?
A currency pair is a unit of measurement in foreign exchange trading. It represents the exchange rate between two currencies. It is always quoted in two parts, with the first currency being the base currency and the second currency being the quote currency.
in the EUR/USD currency pair, EUR is the base currency and USD is the quote currency. This means that you are buying one euro for a certain amount of US dollars. The exchange rate for a currency pair is fluctuating, based on supply and demand in the market.
Now, the tricky thing about Forex can be understanding the order that the pairs are listed in. For instance, there are a host of pairs that the USD is the second currency listed (for example, EUR/USD, GBP/USD, AUD/USD), but there are also many pairs that the USD is the first currency listed (for example, USD/CAD, USD/CHF, USD/JPY).
if you buy a pair, you are buying the Base (first currency listed) and selling the quote (second currency listed), so Buying the EUR/USD means that you are buying Euros and Selling U.S. Dollars–this is the same thing as going to the Exchange and “selling” U.S. Dollars for Euros because you are buying Euros against U.S. Dollars.
So….. “USD” would be listed first! Watch market
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USMCCret22: Loving the clarity. Thanks to all who provide info. The Great thing is that we can see a chart to see how things are moving.
Rubberman: I would like to make an observation regarding the Forex Live thread. I got a little pumped when I read about it so I had to see it for myself. When I opened the chart I changed the default setting to USDIQD (no forward slash). This brings up the equities trading chart. It shows $1 =1309 IQD. It also shows NO volume for trading for as far back as I went.
It shows when the rate went from 1460 to 1310 on 3/21/23. It even shows when it went from 1190 to 1460 back on 12/21/21. The header of the chart is [US DOLLAR / IRAQI DINAR . 1D . ICE]. ICE is the Equities trading.
Now when I changed the header to USD/IQD, I see what all of the fuss is about. However, Lets note the header details: [US DOLLAR / IRAQI DINAR . 1D . CBOE ONE]. CBOE is the Chicago Board Options Exchange. So we are now all looking at the options trading for the IQD.
This chart is interesting as it tells us a lot about what the big boys know.
1. Options trading started on 7/22/2016 at $0.20
2. There are several jumps and dips since inception and I believe if we could date these to the news (good and not so good) we could follow the charts to our intel.
3. The last jump started on 11/1/23 at $1.11 and until today where it’s at $2.88.
What I get from this latest jump is the frenzy (caused by the CBOE members (they’re excited)) that may carry over to the equity trading when Iraq goes international. As well as these members know or believe this will come out over $2.88. This also shows us how volatile the Forex may be in the beginning. Looks as if the Wales and sharks got to dinner early. They’ve been making profit on this since 2016.
Regarding the math, .36 dinar to the dollar is the inverse of 2.78 dollars per dinar. So it takes .36 dinar to buy 1 dollar. If you are to buy dollars. R’man
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Clare: The Central Bank sets the ceiling for cash withdrawals for bank cards outside Iraq
3/6/2024 Follow-ups|..
The Central Bank of Iraq has set the ceiling for monthly and daily cash withdrawals for bank cards outside Iraq.
The Central Bank said in a document, a copy of which was obtained by Jarida, that the ceiling for cash withdrawals outside Iraq is $3,000 or its equivalent in other currencies, and the ceiling for daily cash withdrawals outside Iraq is $500 or its equivalent in other currencies. LINK
Calandddlq: IMO, 3K in IQD at $1310, that’s less than $3.00, but at 1:1 that would be more in line with the ceiling placed on card holders of other international currencies.
