Frank26
[Hypothetical conversation with the CBI]
The next phase is to put our currency [dinar] in a basket.
We have control of it do we not? It's all the way down to 1310/1320 so close to 1200 or 1000.
We have control of the auctions have we not? Yes.
We have control over our reserves have we not? Yes. You have it all...
These other currencies don't mind going in a basket with you? No. They know by going into that basket supply and demand will be called upon for everyone in the basket...Iraq is the prettiest girl in town.
Question: "Do you think Iraq will depose current currency once revalued?" Once they revalue of course they're going to get rid of the currency...the 3-zero notes. They will introduce the lower denominations and the fils to the citizens. But it needs a different exchange rate that would match it to give it value. The exchange rate right now is so low there is no value...
IMO those of you that deal in commodities...you saw 1.68...on the 15th. Today you saw 3.04 on the commodity trades with the Iraqi dinar and you saw it being done in Iraqi dinars, no other foreign currency ...based on what we are seeing, they are agreeing to the future rate of the Iraqi dinar in commodities in dinars. These are contracts...to buy or sell a specific quantity of a physical commodity at a specific price on a particular date. Basically what you saw...IMO are Futures.
No comments:
Post a Comment