Kaperoni -- Does Iraq want to see the dinar go up in value?

by **Ponee** on Thu Jun 25, 2020 9:19 pm

Kaperoni

Does Iraq want to see the dinar go up in value? Of course they do but these conferences are all about inviting foreign investment to rebuild and create a private sector. Only then can the dinar begin to go up in value.

06.25.2020

by **Sam I Am** on Fri Jun 26, 2020 11:33 am

No, they don't. They want it to remain stable. Shabibi said so. And since Jan. 1, 2009 that's what we've seen - stability! It was 1170:1, then it was 1166:1, then it was 1184:1. That's pretty stable. Check back in a year or two and chances are it will be between 1170:1 and 1200:1.

by Zig on Fri Jun 26, 2020 6:20 pm

Hi Sam...Been a while...Kap saw your post and commented to me about it in an email...Ya know that we are buddies... affraid

I asked him if I could post it here and am waiting for his reply....

by Zig on Fri Jun 26, 2020 7:56 pm

Reply from Kaperoni via email......

"I see that Sam made another uninformed post today pertaining to a statement that I made about the Dinar going up in value... Basically saying that no they don't want it to go up in value which is just nonsense... He's confusing the IMF directive to maintain stability of the market rate (not the official rate because its currently pegged and already stable) and the spread between the market rate and official rate within 2%... This is a condition for acceptance into Article VIII...It has nothing to do with Iraq's desire to raise the official rate against other currencies...Leaving the peg and floating the currency will raise the value if they follow the directives to create a suitable investment climate.

Kap"

06.26.2020

by **Sam I Am** on Sat Jun 27, 2020 2:45 pm

I wrote this nearly eight years ago when the rate was 1166:1. Today it's 1190:1. That's a bit of a devaluation but it's still pretty stable. Their policy is exchange rate stability, and that's why they aren't raising the value. THEY DON'T WANT TO! They want it to remain stable so as to encourage foreign investment in their country.

**********************************

“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.”

Read more at:

https://iraqcurrencywatch.com/shabibi-and-stability-9412/

by Zig on Sat Jun 27, 2020 6:09 pm

Remember: Don't shoot the messenger...LOL... crybaby

FROM KAPERONI:

"I'm not going to get into a back-and-forth with Sam I am but he just is confused. He likes to take the official market rate and intertwine it into directives of stability pertaining to the IMF and the market rate. The CBI is trying to maintain stability that is a given but it pertains to the market rate and there are several reasons why stability is important as I've already said. As for the official CBI rate that rate could go up if the conditions are appropriate. Over the last several years they haven't passed the laws or created any suitable investment environment etc. so it hasn't. But believe me once all of that stuff is in place and millions or billions of dollars are pouring in for investment in a private sector/market econony the official rate will change via a float. Sam just doesn't understand and he's quick to judgment because he doesn't know the difference.
One more thing if status quo was what Iraq wanted to do then why would Saleh have said a month or so ago that the currency auctions were meant to end years ago? Remember, you cannot end currency auctions until you have a mechanism to replace it. Another mechanism would have included a different type of exchange rate regime so the CBI could then function like other central banks around the world buy/selling currency through foreign exchange. These are absolute facts that Sam discounts because it does not fit his agenda....Kap"

by **RamblerNash** on Sat Jun 27, 2020 8:19 pm

Kaperoni wrote:The CBI will never revalue the dinar...they will allow the dinar to appreciate to counter inflationary pressure created by investment in the private sector. [I...read that no Country has ever Floated their Currency after they were devalue like Iraq was - But would Revalue to what it was before -Then Float?] ...that is nonsense, the CBI already floated the dinar of sorts, from 2003-2005 to reduce the inflation from 45% to less than 6% under Shabibi. ...the rate is 1184, they will float it directly from there. There is no RV...I believe the dinar can rise rapidly...and be at 1 to $1 within 6 months or a year. The bottom line is Iraq needs to create the right environment for investors. Then and only then will the CBI act...which will allow the dinar to rise. [See the RV meters on the left columns of this page to see the % of gurus who feel the dinar will slowly raise vs RV]

...we have to hope they are preparing to open the banking system to the world. That is important for investors and investment... If you cannot get your profits out of Iraq, nobody is coming to invest... The rate will be as a result of investment and investors, it is not a RV. Exchange rates are not fictitious or magical... They are based on sound policies... So we all should hope that Iraq conditions to create the conditions, and prepare for opening the banking system. When that happens, I do not know..but if they do it right, we should all make money.

https://www.dinardaily.net/t65005-kaperoni-says-7-3-17

Kaperoni wrote:But believe me once all of that stuff is in place and millions or billions of dollars are pouring in for investment in a private sector/market econony...

There are trillions of Dinars in circulation for cash transactions.

by **Sam I Am** on Sat Jun 27, 2020 11:19 pm

I'll put my track record up against Kap's any day. I've been saying that they don't want to raise the value for eight years, and during those eight years Kap has been saying that they're going to remove the peg and float. They're still on a peg, and there's still no free float. I'm confident that a year from now ... two years ... five years ... we're going to be looking at essentially the same scenario.

by **Jayzze** on Sun Jun 28, 2020 10:48 am

i usually do not agree with sam but in this case i do. for one iran does not want to see this. number two the gov officials as well as many others are making too much money to line their pockets and would you give up a good thing? there are many other reasos. this week the new tarriff rates happen and i believe it will but this d. insoes not mean they will raise the value of the dinar. the biggest problem in dinar land is you are spoon fed lies and you fall hook line and sinker for it. in closing remember the old saying of smith barney they make money the old fashion way they earn it and not dream it