SWFloridaGuy: I got two emails tonight saying the IQD was showing live on Forex. I know I’ve said this before but will reiterate it for the last time for the newbies so they don’t go out and spend their life savings tomorrow. I know they are Nesara and WGS followers, which means most likely we will here this same rumor from the rest of the usual suspects shortly.
I will lay out the actual process that a revaluation must go through before it can go live to try to help clear up some confusion. Looking for the IQD on a paid Forex account (or an imposter account such as Netdania, Yahoo Finance etc.,is a futile exercise. The IQD is not traded on Forex and will not show up there first.
Sites which are not forex brokers/marketmakers and a poor proxy for volume, riddled with anomalies that lead to frequent chat room agitation that usually coincide with trading session openings.
The spikes are directly related to the volatility of the USD or simply malfunctions.
Expect to change in value and place a trade but what matters to us is that the IQD is not freely traded and is not being used in any significant international transaction or on any legitimate foreign exchange, although there are plenty of dealers around the world, which are largely unregulated.
This will not show up suddenly and start trading on Forex, that much I can promise you from speaking about this at great length with professionals who know far more about this then myself.
When a country/Reserve bank changes the value of a currency there are certain procedures that will take place long before it starts trading on Forex.
Here are the actual steps we should be looking for: when the time comes the CBI will get the signal from the Executive and legislative branches to initiate the implementation. Once they get the go ahead they will set a goal rate then send it to the BIS for approval.
At this point the BIS subcommittees (Central Bank members) will approve the target rate and regulate capital. Once approved the new rate will be sent to all central banks around the world simultaneously and this is when you will get the first opportunity to see the rate.
The CBI will be able to intervene through regulatory powers and control the money supply and work to keep the IQD near the official (most likely unofficial actually) target rate. Only at this point can we can expect to see a substancial arising onto the foreign exchange market.
I hope this serves to clear up the confusion and isn’t taken as being “negative” because I do believe that one day (hopefully very soon), the IQD will be going international along with accomplishing other important matters such as WTO accession and Chapter VII release but only after time and only after they initiate their currency reform project.
But until that day, our focus is probably better spent elsewhere. Many make the claim that “the IQD is already listed on the Thai Interbank.
This market is an important segment of the foreign exchange marke and it’s already being traded. and that it doesn’t matter that it’s not traded on the Forex.
I’ll expound a bit more but I’d rather accentuate Iraq’s sumptuous economic growth (ranked 1 or 2 in the world; sources vary), and aspects relating to their emergence on the international scene that are encouraging and probably more deserving of our attention.
So, we all agree now that the IQD is not traded on Forex and now the theory is it would be a seamless transition where it could show up on Forex first because it is already being traded on an important foreign exchange market.
Well, I would like to see the trades/volume they are referring to and then have it explained to me how that relates to the fact that the IQD is not internationally recognized, convertible, available to trade on any Forex market and why international banks will not accept the Iraqi Dinar.
If we’re going to focus on the Thai Interbank the first thing we have to understand is that for an Interbank market to exist, a competitive banking system and an efficient payment and settlement system linking banks together is required. Iraq has neither.
The Interbank market in Iraq does not resemble other economies. Foreign exchange markets are another institution that is primitive in Iraq. Foreign exchange trades against the dinar are not managed electronically through an investment bank market maker.
Now all that can change very quickly. In part, because Iraq is receiving a lot of international pressure that supports nation building. The international community seeks to fully exploit Iraq’s wealth and this will require (among other things) a sound currency.
Iraq’s currency board once produced a sound and stable dinar anchored to the British pound and I believe there may be another board preparing to make the IQD a fully convertible currency that they can maintain. If this board is similar to others past, the directors will be appointed by the BIS (represented by 7+ countries) and the GOI.
The IQD not being a convertible currency is a severe hindrance to conducting business internationally. I have risked much of my own capital in hopes of a large profit and, after all we’ve been through, I am still confident that as a community we will accomplish far more than just adding liquidity to the market.
There were several reports from the CBI last year that pointed to early 2013 as target date for currency reform. Well, here we are one month away from a supposed increase. How much of an increase and exactly what they are referring to is anyone’s guess but I think we can all agree that economically Iraq is headed in the right direction. As usual these are just my opinions, which may or may not be correct.