"The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis since October 4, 2003. The central bank followed a policy of exchange rate stability which has translated in a de facto peg of the exchange rate since early 2004. However, from November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate. As a result, the exchange rate arrangement of Iraq was reclassified to the category of crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of Iraq was reclassified effective January 1 2009 as a stabilized arrangement."
http://www.imf.org/external/pubs/ft/scr/2010/cr1072.pdf
(Look under ANNEX I. IRAQ: RELATIONS WITH THE FUND AS OF DECEMBER 31, 2009 and scroll down to IX. Exchange rate arrangement)
Then there are the videos of Shabibi when he was in Washington, D.C. in 2011 talking about CBI policy. Watch these videos and see if you can count the times he used the words "stable", "stability", and "stabilization".
http://www.youtube.com/watch?v=Q56aohs98iI
http://www.youtube.com/watch?v=EY9oXjJRXzk
There's your policy right there, folks. Stability. Wondering what the holdup is for the RV? Well now you know. It's not Maliki. It's not "Chapter 7". It's not the HCL. It's not Erbil. It's not the Kurds. It's not Kuwait. It's not Obama. It's not Talibani, Barzani, al-Sadr, Allawi, Lagarde, Madame Wu, the "Powers That Be" or anybody else. It's the CBI's policy. They don't want to raise the value unless they have to. It's that simple. Since early 2009 the official value of the dinar has indeed remained quite stable, experiencing only one small increase in value in January of 2012. So I submit to you that based on their stated policy and their actions since 2009 we can confidently predict what they will do in the future. They'll most likely do the same thing they've been doing - maintaining a stable dinar. Anybody who tells you that their policy is anything else should be able to provide a document or two to support their claim like I just did. If they can't then they're probably just a lying, scamming douchebag.
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Don't you just love the "powers that be" explanations? Many of the clowns have started abbreviating as simply PTB now. They pull out the ole PTB excuse when their idiotic predictions fail to occur. It's a versatile excuse that works for all occassions. In fact, this blog is probably a product of the PTB to discourage people from buying dinar. More dinar for them. LOL!
ReplyDeleteI hear the PTB are really loaded. I wish I was on their payroll!
DeleteTotally true Sam.....problem is just about 100% of Dinarians are clueless about economic policy and have been pumped to believe that a RV is not only possible but probable in Iraqs case. Unfortunately they don't even know what a RV is. They think that Iraq can just any time they want go ahead and make the exchange rate 1 dollar plus instead of 1166. Like that's no big deal and Iraq has a lot of oil and Okie says so and its an actual economic event. Of course this is all laughable and sad at the same time. None of these people have any idea that RVs like have been pumped to them never have and never will nor never could exist.
ReplyDeleteI was one of those people until I watched the video of Shabibi in Washington talking about the possibiity of raising the value to address inflation. When I looked over the chart I noticed that the value increased during the time frame that inflation was brought down. Then I read that inflation was the reason that they brought the rate down to 1170. I realized at that point that Shabibi's definition of revalue and the dinar community's definition are two completely different things. Then when I interviewed John Jagerson I asked him what the largest revaluation in history was and found out that it was about 30%. That confirmed my conclusions. It's a big part of why I do this - to educate (or re-educate the indocrinated) people.
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