Let the supply and demand set the value

1-23-13 Darin: It may not clearly state it in this topic, but I know I have read some articles lately mentioning that the monetary policy set forth by the CBI is currently deteriorating the value of the dinar and that a proper solution is to let the supply and demand set the value without much manipulation from the CBI. In the one article I am thinking of, they do say float the value.

Keep in mind, the way that I read that was not that the currency would be internationally traded on a forex type system, just that the value would be set by the market and not the CBI. With that said, I highly doubt the value set forth by the market will mean “Huge” R/V. In fact, I would actually expect the value to actually drop, but possibly go up as the market builds confidence.

The ‘market value’ on the CBI site would be the likely initial free floated value. With that said, would it spark more people to buy into dinar because it is a free floated currency? I doubt foreign speculation would drive the price up (unless it was traded on forex). If it was not traded on forex, yet a value set by the supply & demand, I think we would only see a slow rise in the value. The thing that would still be great about this is that if confidence & trust is put back into the dinar, the demand for dinars itself could raise the value to profitable numbers for us.

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