Central Bank of Iraq continued
This a very interesting article coming from the United States State Department talking about Iraq. If you notice we are in 2006 and they sure mention CPA laws all over this article. I thought the CPA Laws were no longer in effect??!!
I sure like that sentence “are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes.”
The Iraqi Dinar currency is worthless outside of the country of Iraq. Your right it is convertible but only inside Iraq and that’s all. And what is the currency of choice for all those Iraqi private and state banks, do I need to say it again.
From the DOS Web site:The exchange rate is generally determined on the basis of supply and demand conditions in the foreign exchange market. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes.
You still think we are close to an rv?
Comments
The currency of Iraq is the Dinar (ID - sometimes referred to as the New Iraqi Dinar). Iraq's current exchange system is characterized as a free foreign exchange system, with no restrictions on purchases or sales of foreign currencies. The Iraqi currency is fully convertible and can be exchanged freely with any other currency. In addition, there is free movement of capital without restrictions on capital inflows and outflows. Iraq's foreign exchange regime is also a multi-currency system in which foreign currencies circulate in the market and are accessible to everyone
http://www.state.gov/e/eb/ifd/2006/67643.htm
yes i still beleive an rv is on the horizon
Posted by: guest | June 13, 2006 9:01 AM
Guest,
Thank you for stopping by and posting your comments. It is true the Iraqi Dinar is allowed to be exchanged for other foriegn currency. However, this is only allowed inside Iraq.
For an example an Iraqi businessman would like to make a business trip to the country of Jordan. He exchanges his Iraqi Dinar for Jordan's currency and upon his return back to Iraq he exchanges his Jordan currency back to Iraqi Dinar at the prevailing exchange rate.
Posted by: American Contractor | June 13, 2006 9:33 AM
You posted:
"The exchange rate is generally determined on the basis of supply and demand conditions in the foreign exchange market. Banks may engage in spot transactions in any currency, but are not allowed to engage in forward transactions in Iraqi Dinar for speculative purposes."
Well I guess this is another one you didn't understand. Sigh.
Posted by: Jimmy DInar | June 13, 2006 8:36 PM
It means that you better be in Iraq to exchange your Iraqi Dinar. Today and in the future. You wil always have to go to Iraq to make an exchange.
What don't you understand ..??!!
Posted by: American Contractor | June 13, 2006 10:05 PM
Oh brother, sigh. Tsk tsk tsk. Oh well, some folks just understands not to understand. Good luck to you.
Posted by: Jimmy Dinar | June 13, 2006 10:38 PM