Highlights/Thoughts
Click on the title of this posting to get to the details of this post on DD
1. Author of email suggests that the IQD is live and tradable on Forex
2. To him it means 2 things: 1) The Forex people know something we don't; 2) The IQD could be placed on Forex and allow the market to drive up the rate thereby removing the zeros
3. Option 2 is not likely scenario because without a declared value, the value of the IQD could go up or down in significant values on a daily basis. The latter would not be good for Iraq
4. It's better for Iraq to set a rate and allow the exchange rate mechanism to float the dinar in the market at the normal ceiling/floor thresholds (up or down 4% in a 24 hour period)
5. Rate will likely go up exponentially either way based on speculation
6. For any of this go happen precludes the CBI has stopped auctioning the Dinar (Note: There was an auction today)
7. Author feels the Forex houses are anticipating the Dinar will be traded internationally and are currency swapping on the small pips (pip is a term used in the Forex world and means a percentage in point, which refers to the smallest movement that a price could make in the Forex market)
8. The supposed trades in Forex could also mean that the CBI is using this method to further remove the large denominations in a staged manner. CBI cannot do this for days, weeks, or months.
9. Budget is a moot point
10. Parliament stripped Maliki of certain powers relating to naming people to the security ministry
11. Parliament is calling emergency sessions relating to the issues of the security ministries
12. Author believes RV will happen by 1/31
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