Zig’s Place Chatroom News Friday Evening 3-8-24
butterfly Seck would know what the rate was, I believe it was 2.85 when they had the downfall of Saddam. Ask yourself, why would they not go back to that same rate, not 3+. It just does not make sense. IF they do go back to the rate, I truly believe it will be even lower then the 2.85.
Seck By the way the Iraqi dinar real rate was around a $1.80 before saddum then the rate was around 2.80 then after the first gulf war saddum hiked it up to $3:22
Seck butterfly lol
Sah Seck I knew it was not that high.
butterfly Seck there ya go giving the information I forgot years ago.
butterfly I remember it was a David you talked with.
Seck But the whole time of these rates was while a dictator was in power.
Seck butterfly yes David Braggs
Sah There had to be an original rate further back that the IMF claimed. Can’t just state a rate for your country without going thru the steps makes an illegal rate. Has to be approved by the IMF, BIS, World Bank and UN first before approved. Otherwise it is an illegal rate. Can not be used Internationally.
Seck The Iraqi dinar was put into circulation in 1932 and replaced the Indian rupee, which was the national currency since the British occupation in World War I. The Iraqi dinar remained tied to the British pound until 1959, after which it was pegged to the United States dollar at a rate of 1 IQD = 2.80 USD, without a change in value.
Iraqi dinar did not follow the devaluation of the US currency in 1971 and 1973 and increased to 3.38 USD before the value of the IQD reduced to 3.22 USD due to a 5% devaluation. The rate continued until the Gulf War, though the black-market rate was about six times higher in late 1989.
Sah I heard during that time that the Dinar had really devalued.
Seck Sah that is not totally correct. Any Central Bank of a country can dictate what their currency rate of exchange can be.
Sah Seck But they can not use that rate outside of country unless approved by the IMF. The will never be international.
butterfly Seck I am over looking for that post you made talking to David Braggs. I remember he told you that all CBI makes the value of their currency.
Sah In country only. Not international they have to go thru the hoops.
butterfly I found this one Seck seck Tue May 02, 2023 4:38 pm
The governor of the Central Bank, Ali al-Alaq, said that floating the dinar is difficult to apply in Iraq because the government monopolizes the dollar, indicating that the reserves of Iraq is $48bn. Al-Alak said in an interview with Al-Arabi African newspaper that “the oil countries usually rely on a fixed exchange rate, or fixed with flexibility, and do not resort to the float method, unless their reserves are controlled to a level that is insufficient, which did not happen either in Iraq or countries.
Seck ok heard on occasions
butterfly seck Tue May 02, 2023 4:49 pm
The Iraqi dinar refers to Iraq’s national currency and is represented by ISO code IQD. Iraq’s Central Bank issues the Iraqi dinar, which earlier consisted of 1000 fils. However, fils are no longer used because inflation has rendered them obsolete, and now dinars have become the smallest currency unit in use.
Seck butterfly Thanks for finding that.
butterfly I have a long one to bring over, so if folks would hold off, it will be good information to read.
Butterfly Revaluation of Iraqi Dinar is the Center of Latest Iraq News
By Idrees Khan –February 29, 2016
Revaluation of Iraqi Dinar is the Center of Latest Iraq News Index
The infrastructure of Iraq is badly affected by the invasion of US armed forces in 2003. Everything was destroyed because of surgical attacks made by US Army and its alliance. Since then the country is the center of sad news. We hear bad news of killing and bomb blast on almost every day. Moreover the ISISI has become one of the worst terrorist organizations operating in Iraq against the government. Iraq is facing heavy losses because of these attacks on the government machinery and they are therefore the center of latest Iraq news.
Current Economic Conditions
Along with all those critical situations in the country the economic condition of Iraq is improving with the every passing day. Some massive investments have been seen for the last 6 years in the country.
The Iraq is now free from international sanctions imposed by United Nation. After free from chapter 7 sanctions 7, Iraq has authority to do any kind of business with the any other country.
Oil is the backbone of Iraq economy. Now the country is free to sign any contract with the any other country to search or export their crude oil anywhere in the world. Large number of oil exploring companies is operating in the country in the different areas to find the new oil fields.
Special Authorities to Governor to Sign any Contract
There was a time when making investment in Iraq was more than a tough job. You had to fulfill too many requirements and legal formalities to open a new business in the country. But now the situation is completely different. The government of Iraq has given special authorities to the governor of the province to sign any oil and other business contracts without prior permission of the government.
All of these soft conditions are to ensure the foreign investment in the country. These special authorities have attracted many of the international investors to the country to make heavy investments in different sectors of the country.
The cottage industry of Iraq is also improving with the heavy investments in the domestic industry of Iraq. This is one of the biggest point and addition in the latest Iraq news that cottage industry of the country is also improving very fast.
Revaluation of Iraqi Dinar
Butterfly People have made heavy investments in the Iraqi dinar with the expectations that it will be revalued in the near future and they will be billionaire. The investors in Iraqi dinar include not only common people but the retired army officers of Iraq war. They believe that Iraqi dinar will be revalued in the next few years and they will earn more than anyone else in the world.
The best example of Iraqi dinar revaluation is the Kuwaiti Dinar revaluation that occurred in 1990 and people who invested in the Kuwaiti dinar became billionaire over night. Many of the international banks are also interested in Iraqi dinar purchase and they are the big investors of Iraqi dinar as well. The Noor Al Maliki administration was major hurdle in the revaluation of Iraqi dinar because of dispute with Kurdistan.
Kurdistan has major role in the revaluation of Iraqi dinar and its resolution to pass. The supreme leader of Iraq has taken action against Noor Al Maliki and the government was dissolved. Now new administration is now in the power and they are taking initial steps to complete revaluation process.
This can be very big and latest Iraq news. People are waiting for the completion of this procedure for revaluation of Iraqi dinar in next few months. The dinar gurus believe that revaluation of Iraqi dinar will surely occur at the end of 2016. We must have to wait if we have some dinar to be billionaire in the next few months.
butterfly Notice the date of that post
Seck 2016
butterfly seck Mon Feb 29, 2016 12:57 pm
butterfly Sat Dec 12, 2015 9:34 pm
In light of the suffocating financial crisis plaguing the Iraqi economy following the sharp decline in oil prices, experts and concerned parties are discussing the most appropriate option to fix the exchange rate.
Summary In light of the decreasing oil prices that led to an economic crisis in Iraq, the Iraqi government has been discussing options to reduce the dinar-dollar exchange rate.
Author Zakaa Mokhles al-Khalidi Posted December 11, 2015
TranslatorCynthia Milan Original Article اقرا المقال الأصلي باللغة العربية
The Iraqi Parliament had discussed the possibility of reducing the dinar-dollar exchange rate by 10% to reach 1,300 dinars per dollar to supply the general budget with 5 trillion dinars ($4.2 billion), or by 20% to reach 1,400 dinars per dollar to supply it with 9 trillion dinars (about $8 billion).
There is no doubt that a reduction of the dinar exchange rate would provide additional resources for the general budget. It will increase the quantity of Iraqi dinars obtained by the Ministry of Finance in return for converting into the dinar its oil revenues or foreign loans it received through the Central Bank of Iraq in dollars.
However, this method increases government resources at the expense of citizens. The losing parties are ordinary citizens, especially those with limited incomes. The purchasing power of their income will drop, especially with the rise in prices of imported goods. The creditors in local currency will also be affected, including those holding Iraqi treasury bonds.
butterfly Moreover, Iraq’s almost total reliance on oil revenues, its poor resources such as goods and services other than oil, the existence of financial investments abroad and large foreign reserves and the high cost of external borrowing all indicate a lack of available options to address the current shortage of government foreign-exchange resources.
This means that the only solutions are cutting spending, trying to increase some types of direct taxes and fees and issuing treasury bonds in the local market.
The Iraqi dinar’s exchange rate was equal to $3.3 before the outbreak of the Iran-Iraq War. Then $1 became equivalent to 3,000 dinars during the economic blockade from 1990 to 2003. Anyone who has followed the dinar will realize that the problem lies in the difference between the dollar’s supply and demand and the dinar’s supply and demand.
It is a simple equation that controls not only the currency prices, but also the prices of all kinds of goods and services. So, for the state to control one side of the equation, it has to control the other side to ensure that the exchange rate will be stable.
When Iraq’s oil resources were limited before OPEC first raised prices in 1973, the country relied on the currency law, a remnant of the gold standard. This law necessitated that 70% of exported currency be backed with gold and foreign currencies to control the dinar supply through government spending.
After the Iran-Iraq War, the currency law was abolished, disturbing the balance between the supply and demand of foreign currency with increased military and civilian government spending.
Seck butterfly yes 5 years from when I invested
butterfly The government allowed the private sector to directly import goods from producers and sell them at prices that were not subject to its control. Thus, there were two exchange rates: an official rate that maintained the $3.3 price and was used for official expenses, and a parallel rate determined by the supply and demand of foreign currency.
The difference between the two rates widened in the wake of the economic embargo on Iraq in 1990. As a result, the parallel exchange rate rose to 3,000 dinars at points.
After the occupation and after the export of Iraqi oil was allowed again and deposits were unfrozen, Iraq was expected to undergo monetary reform, whereby surplus banknotes would be withdrawn from circulation.
However, it used the daily currency auction, in which specific amounts of dollars are sold to the banks and the private sector to meet the domestic demand for foreign currency, especially for the purposes of importation. The steady increase in oil revenues led to a gradual improvement in the exchange rate until it reached 1,220 dinars to the dollar.
Many politicians and analysts believe that the daily currency auction is a way to smuggle the dollar through private banks under the pretext of importation, and their criticism has increased in light of the current financial crisis.
butterfly The question asked by those concerned in Iraq is: Does the daily currency auction have to continue despite the claims made about it? Or should we abandon it and turn to other means so that the process of buying and selling the dollar is free, without restrictions, as some suggest?
Choosing the appropriate exchange rate for any state is a critical scientific process that depends on the state’s economic and financial situation as well as its economic ideology.
The states that choose a free floating exchange rate for its currency and make its buying and selling a free process without restrictions are usually powerful, developed economies that have important and multiple foreign currency sources and currencies of importance in international trade and investment flows, as well as large reserves of international currencies.
To preserve the exchange rate, a country that pegged its currencies to a foreign currency such as the dollar or to a currency basket has two options. The first is to have large foreign currency and gold reserves to support the pegged exchange rate when necessary, as the GCC countries do.
The second is to maintain the exchange rate through the management of the monetary authority, which influences the factors determining the demand for foreign currency. This is what Iraq was doing prior to the first oil boom.
Presently in Iraq, the government does not have an official Iraqi dinar to dollar exchange rate, or a currency basket. The $3.3 exchange rate is no longer used for any currency, although it has not been officially canceled.
butterfly Accordingly, in light of the limited foreign currency resources and difficulty to go beyond oil resources, it is imperative that the state manages the current exchange rate through the development of a foreign exchange budget by the Central Bank, which will determine the allocation of imported goods, services and transfers without charges.
This way, it is possible to maintain the current exchange rate’s stability and to limit expenditures in foreign currency to the available resources until the circumstances are favorable for monetary reform and the adoption of an appropriate official exchange rate.
Butterfly Now tell me things have changed.
butterfly Tue Dec 15, 2015 9:45 pm
The term “free,” however, is a misnomer when referring to the Iraqi Central Bank. This is because the new Central Bank of Iraq, now known as the Trade Bank of Iraq, was completely restructured and privatized as early as 2003. Slightly more obvious than the privatization of the Afghanistan banks, it was openly announced that none other than J.P. Morgan was chosen by the Coalition Provisional Authority to “set up” the new bank.
butterfly Here is more from that short blurp: In the energy area [crude] – J.P. Morgan was ‘granted’ the rights to, effectively, set up the Central Bank of Iraq in Dec. 2003:
J.P. Morgan Chase was chosen by the Coalition Provisional Authority [CPA] to ‘set up’ the NEW Central Bank of Iraq [specifically, the Trade Bank of Iraq ]. Take note how this TRADE BANK only became operational in December of 2003:
• Trade Finance. The Trade Bank of Iraq (TBI) was established in July 2003 to facilitate trade of goods and services to and from Iraq by providing irrevocable letters of credit. The TBI officially became fully operational in December 2003 and has a services contract with a multi-international banking consortium led by JP Morgan Chase.
Since opening in December , the Trade Bank of Iraq has issued or has pending 183 letters of credit, totaling $708.9 million in imports from thirty-one countries. Letters of credit have been issued on behalf of Iraqi Ministries as well as several state-owned enterprises.
In that capacity, Morgan was charged with developing the framework of collateralizing movable and immovable property for the nation of Iraq.
The fact is that one of the largest derivatives facilitators in the world is one the principal architects of the Trade Bank of Iraq, plus it is also well-known that J.P. Morgan has a direct connection[3] to the Rothschild banking dynasty;[4] a trend that is to be seen in virtually every central and major bank in existence across the planet.
Sparky … what are the odds IQD will roll to 5 cents in the next five years ? … anybody …
Seck Sparky we need to ask Kap on that one
Sparky … Kap mentined two to three … imu …
Seck Seck if that was to happen I woul be a billionaire
Sah Sparky When the dinar goes down to 1146 then ask that question where it is going and when they are going to be international.
Seck Sah I bought when it was 1170
Seck i think Butter was the same
butterfly Interest rates are going to come down, so perhaps @Sah will sell that snow covered house.
Sparky … I bought at 1170 … then Shabs’ rrevald to 1166, thought I was sitting pretty …
Sparky … 2011 …
Sparky … and, I hope that I still have a Warka digital bank account ..
Seck butterfly maybe to a Eskimo
Sah I bought in 2008. I would have to go look at receipts to see what I bought at.
Seck Sah do you dust the off once in awhile?
Sah It opens your eyes to the world more after you invest if you do the research.
Sah Seck It is sealed air tight, no dust. LOL
Sparky Sah … true, it opened my eyes to the world …
Sparky … greed and corruption … and where to go where it is less so …
Sah Sparky It was a really good history and economics lesson.
Seck Sah I would say I was blind going it and still blind on if and when it could happen.
Sah Sparky I am planning on smaller town next to a bigger one not too far away with an ocean close by and antique shops everywhere and a low crime rate.
Seck Sah Key West
Sah Seck Paso Robles, CA. Google it, wine country.
Sparky … Philippines … WW2 version …… my Dad’s dog tags tell me so , go …
Seck Sah one million dollars in Key West can last 20 years
