* TensDinarDen: BIW and Enoch Chat 1/20/12
[B.I.W.]hey mr rich
[B.I.W.]you were talking about pips
[B.I.W.]http://www.ny.frb.org/cfcbsweb/Rosenberg.pdf
[B.I.W.]this doc is a good 1
[B.I.W.]now every body talks about the forex
[B.I.W.]but the forex is where the little boy play
[Enoch8]Hello
[B.I.W.]yoyo
[B.I.W.]i found this old doc enoch
[B.I.W.] What moves exchange rates? I •Exchangerates are determined by supply and demandfor currencies. •Supplyand demand for currencies depends on: –Macroeconomicconditions –Domesticand foreign interest rates –Otherfactors •Importanceof each factor can change over time.
[B.I.W.]What moves exchange rates? II •Macroeconomicconditions Andersen,Bollerslev, Diebold, and Vega (2003) Faust,Rogers, Wang and Wright (2003) –Positivemacroeconomic news strengthens dollar •GDP •Non-farmpayroll •Retailsales •Consumer confidence
[Enoch8]Any number of conditions , based on the Exchange Rate Regime Policiesof that Central Bank.
[Enoch8]They are all different.
[Enoch8]The IMF Lists the types of Regimes.
[Enoch8]Iraq has been on typically a Fixed Peg Regime.
[B.I.W.]some time i wonder if all know that the forex is the small guy in thetrading of currencys in the world
[Enoch8]The US…. Japan and Switzerland are on Free Floats. [B.I.W.]http://www.londonfx.co.uk/autobrok.html
[Enoch8]Forex is an interesting topic concerning rate changes andadjustments.
[B.I.W.]http://www.icap.com/markets/electronic-markets/ebs.aspx [B.I.W.]the ebs lookslike they are the real traders
[Enoch8]It is possible that Forex can be a Supply vs Demand Factor, but doesNOT…. I repeat DOES NOT Drive the market, as Okie suggests.
[*Tenmillion]Enoch8 which of these factors would apply to the IQD? [Enoch8]Great question
[Enoch8]Iraq does a number of typical internal adjustments….
[Enoch8]1. They can increase the Foreign Reserves or Decrease them to makeadjustments against market forces…
. [Enoch8]A decrease for example is called Sterilization.
[Enoch8]2. They can manuver interest rates, but IRaq is not strong in thatsuit, as of yet….
[3-BALL]so the high auctions are ?
[Enoch8]3. They increase or decrease circulation according to Supply vsDemand and Market influences
. [Enoch8]Increase is called Capitalization or Monitization of Liquidity….
[Enoch8]A decrease is call contraction.
[Enoch8]All these factors are what determines the actual strength of anynation’s currency, based on the strength of it’s bank and bondsmarkets
[Enoch8]In a Fixed Peg Regime, the Exchange Rate is held stable by thesefactors by adjusting them up or down.
[B.I.W.]and confidence in the currency
[Enoch8]In a Crawling Peg or a Banded Peg….. the rate is managed to adesired level as the market determines, but only as allowed by theCentral Bank, who determines that as part of the actual Regime.
[Enoch8]Banded is like crawling, but is restricted and limited to a set % ofincrease or decrease over a set peroid of time.
[B.I.W.]hey enoch here is a us state department email dec 13 2007
[Enoch8]Managed floats are like LOndon, China and Russia….
[B.I.W.]Classified By: Economic Section Deputy James Freund, reasons 1.4 b,d1. (C) SUMMARY: Demand for the dinar has risen this past week in response to the holiday period, a reported drop in imported good prices in Baghdad due to an appreciating dinar against the dollar and improved security, and speculation among money traders of a sudden appreciation of the dinar that occurred around this time last year. How the Central Bank of Iraq (CBI) handles growing demand for the dinar will be critical, especially in terms of expectations management and injecting dinar liquidity into the market This is an encouraging development for Iraq and reflects a vote of confidence by Iraqis in their domestic economy and the government’s monetary policies. END SUMMARY. [B.I.W.]so even in 2007
[Enoch8]thos are like free floats but are more restricted by internal control of the above mentioned factors, among others.
[B.I.W.]they were aware of us
[Enoch8]Did that answer for you Ten?
[*Tenmillion]yes, thank you Enoch8
[3-BALL]so 4 points in 3 years is like “snurtle crawling”
[B.I.W.]COMMENT: How the CBI handles growing demand for the dinar will be critical, in particular on expectations management and injecting dinar liquidity into the market. The TF-BSO consultant notes the CBIis taking this situation very seriously, and when she was at the CBI this morning all the key managers were going to a meeting on theissue. She also said she had never seen such a long line of armored trucks snaking around the block waiting to get dinars in her entire three years consulting with the CBI. The CBI also issued an immediatepress release today to dispel the rumors of sudden appreciation to1,000 dinar per dollar or lobbing off any zeros to the exchange rate. The CBI’s foreign currency auction’s daily volume has fluctuated, but not substantially diminished.
[Enoch8]OK….. BIW…… that article is about demand on the streets and with respective dealers.
[B.I.W.]this is the only time the cbi has issues a story about the (ooo)
[B.I.W.] LOL
[B.I.W.]2007 [Enoch8]It has nothing to do with world market forces, because it is direct demand
The * TensDinarDen: BIW and Enoch Chat 1/20/12 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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