* Just Da Truth (FROM KAPERONI, MY ARABIC TRANSLATOR FREIND BREAKS DOWN THE DINAR WILL NOT BE USED IN OIL SALES, WITH A GOOD COMMENT, !!!!!!!!): OOM 1/10/12
Arabic Translator friend the recent article titled… “Iraq Dinar will not be used in oil sales – 08-01-2012″
http://dinaralert.webs.com/apps/forums/topics/show/7072713-iraq-dinar-will-not-be-used-in-oil-sales-
Here is his comments… Hi Kap,
Did take a look at the article (sorry for the delay) and they are basically saying that they are not going to use the Dinar to sell Iraqi Oil because countries that are purchasing oil from Iraq could use the fact that it is being sold in Dinars to get the oil very cheaply and leverage an unfair advantage in the market. They are worried that these countries are going to stockpile Dinars and then use them to buy the oil. This makes complete sense to me, because if you have a worthless Dinar at an exchange rate of 1 to 1170, then why would I pay for oil in Dollars when I can go pay $1,000 for example and get about a million Dinars and then save money by using that Dinar that I got so cheaply to buy much more oil than I would be able to using Dollars?
It works out to Iraq’s advantage also because the Dollar is so much stronger and worth much more to them, so it sounds better saying that we had 2 billion dollars in oil sales than 2 billion dinars in sales and so converting 2 billion dollars into dinars gives you a ton more Dinars.
The rest of the article talks about the plan to remove the 3 zeros and how they are working on it and that it will be beneficial to them (all the same stuff we already know about the 3 zeros plan).
Then the last part of the article talks about how the IMF asked them to reduce their budget from 115 billion dollars to 100 billion because they already anticipate a 14 billion dollar deficit due to the lower price of oil expected, and so that would eliminate any deficit and leave them with at least an extra 1 billion dollars. Then, they even mention what I said earlier about why the Iraqi government doesn’t like to deal in Dinars because of their low value.
Overall, an informative article but nothing that we didn’t already know really. Will continue to hope that they get this done soon, truly for their sake!
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I want to comment on this…
Why would the CBI put this article out unless they are revaluing the currency? This to me is just more confirmation we are correct that a revaluation is, infact, the plan. Any other idea such as a redenomination, or LOP would not warrent such an article.
The * Just Da Truth (FROM KAPERONI, MY ARABIC TRANSLATOR FREIND BREAKS DOWN THE DINAR WILL NOT BE USED IN OIL SALES, WITH A GOOD COMMENT, !!!!!!!!): OOM 1/10/12 by Dinar Daddy's Tidbits, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
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