Thread: Iraq/Dinar News to April 19, 2007 10PM CST

Originally Posted by Jola

It looks like an opinion article, however...What I have highlighted shows that Iraq could EASILY , VERY EASY , EASY, EASY support at least 1:1 RV.

I am no economist, so I am asking is: " Doesn't this article prove that a .05 RV is out of discussion? Even as a shakeout rate?

And related to the amount of an RV: The LoI - I understand - has the specific purpose of "announcing" the IMF about a currency change/jump. Wouldn't a RV at .05 shake the neighboring countries currencies? In the sense that they would have to devalue?

Can someone help me with these questions?

I agree about .05 being nonsense. These M.E. nations are acustomed to Iraq's rate historically over 3.00 USD so I would imagine this would be viewed as normal. I think a buck could be a shakeout rate if they choose such. Really how much can you shakeout? Eveyone knows where the rate belongs so other investors with large amounts of cash would be jonny on the spot to invest even at a buck. I guess it just makes sense to me that whatever the agreed rate is to be that they should just do it in one shot and adjust prices accordingly.

Originally Posted by wciappetta

I agree about .05 being nonsense. These M.E. nations are acustomed to Iraq's rate historically over 3.00 USD so I would imagine this would be viewed as normal. I think a buck could be a shakeout rate if they choose such. Really how much can you shakeout? Eveyone knows where the rate belongs so other investors with large amounts of cash would be jonny on the spot to invest even at a buck. I guess it just makes sense to me that whatever the agreed rate is to be that they should just do it in one shot and adjust prices accordingly.

The article above is written by Henry Thompson, professor at Auburn University, he is an internationally recognized economist, with a bunch of books out about International Economics. I will take his opinion over a rumor any day.

Kurds consider a bill Iraqi oil and gas "Bathi
(Voice of Iraq) - 18 - 04-2007

Dubai, UAE (CNN) -- refused Asti Horani and Petroleum Minister of the Kurdistan Wednesday strongly draft of the amended draft law new oil and gas was in violation of the constitution, stressing that the Kurds would follow the work under the contracts they have entered into previously.

The Kurdish minister to throw new draft "in the waste basket", accusing them as "state and national" because of its emphasis on the centrality of oil resolution, contained in the resolution of the restructuring of the Iraqi National Oil Company.

In an interview with the CNN in Arabic, did not wish to confirm the determination Horani Kurdish member of the Iraqi Parliament to vote against the law, and the intimation that things are still at a preliminary stage and up to the draft after the Council of Ministers.

The Minister undervalued Kurdish Kirkuk file from the effects of this dispute between the new government of Kurdistan and the central government, as the oil wells in the city will follow the National Oil Company forthcoming.

Horani said that the crux of the matter is limited to the diagnosis of the real role of the prospective foreign investments, which will have the effect of the new law restricted, after its 82% of Iraq's oil product currently under the authority of the national company, which will have a margin of only 18% to foreign companies.

Horani positions came during a seminar to discuss the draft law of oil and gas new Iraqi organized by the Iraqi Parliament in Dubai, United Arab invitation of the Iraqi Business Council, has summoned a reply from Sheikh Khaled al-Attiyah, Vice-President of the Parliament, which urged the participants not to use inappropriate language.

Conversely said Hussein Shahrastani, Iraqi Oil Minister, said that his government "will be submitted to Parliament next week," most likely to be endorsing it and the package of similar projects, mainly on the organization and distribution of financial resources.

Shahrastani said that the draft law "was discussed throughout the six months to get materials on which everyone agrees," and stressed that the oil and gas "belongs to all the Iraqi people and must distribute dividends to all the districts by population."

And on the veracity of the rumors about the tendency of Iraqi parties to agree to amend the initial draft is due to the discovery of huge oil stocks in the Sunni areas of the site confirmed Shahrastani CNN Arabic discovery of a giant new fields in the western region near the Syrian border called "Ekaas."

However, he attributed the emerging consensus on the draft to the "joint commitment by all parties to the Iraqi parliament to approve the bill before the end of May," he said.

The Iraqi minister of special materials to ensure the survival of Iraq's oil under the control of the Iraqis, stressing that priority should be given to investments and companies on the basis of efficiency, in an implicit response to question the ability of the Iraqi government to refuse offers of American companies.

For his part, explained the Papan, the Minister of Planning and Development Cooperation said that the endorsement of the Iraqi Council of Ministers by the federal fund-raising Iraqi oil revenues is critical to the debate about the identity of oil wealth, and returned to the Iraqi people instead allocated to maintain productive population.

The Papan that 92% of the incomes from Iraq's current oil revenues, and called for the rapid rise in this sector is expected to suffer the world over the next five years from the "oil hunger" of Iraq would be a big role in saturated.

As for the criteria, which would distribute oil revenues, the Iraqi minister disclosed the existence of two main Qus size of the preserve first, and by the damage suffered during the previous regime and the events that followed.

However, these positions have not received the approval of the minister Asti Horani, and Petroleum Minister Kurdistan, who believed that the new draft law in violation of the Constitution and restore "focused" sector in the capital, describing the matter as a prejudice to the Kurdistan region, which "jumped great leaps forward and now has the special oil," as he put it.

Horani and criticized the formation of an independent Iraqi oil, arguing that there Ministry, demanding access to Kurdistan's share of oil revenues directly without passing through the Ministry of Finance.

It was during the review of the data for the Iraqi oil, where experts confirmed the existence of a fixed amount of reserves 115 billion barrels, with expected reserves are estimated at between 215 and 330 billion barrels, which puts Iraq on an equal footing with Saudi Arabia.

It is noteworthy that Iraq's oil production is now less than 2 million barrels, a figure much lower than the ability to export, but the structure of the infrastructure sector, which suffered severe damage during the years of embargo and war to prevent it.

The new draft law amending the previous draft and some negotiations approved most of the participants in the symposium on the grounds that it had "quotas."

The revive the national oil company of Iraq and the establishment of a joint fund for oil revenues highlighted the axes of this law, in addition to the new division of oil wells, which will be given production rights in 52 oil wells to a national company, will compete with foreign companies to invest 26 wells human unproductive after alongside Neil exploration licenses.

Five cent RV would be an economic assault on it's neighbors and might be treated as such...here is an example....with the Kiwati Dinar at $3.64 and talking of a 25% increase this month putting it north of $4...you and I want to do business in the region....why would we set up shop there when we can move across the river to Bashra (where it is peaceful -for the most part, large modern city with a expanding oil export center) and do the same business for a nickle...Where are you going...$4 verus a nickle...more bang for my buck and thus economic warfare against Kiwait...

I do not think the other countries would/will allow this...for sake of it look at the Jordanian Dinar posts for a $1.60 and they are such an economic powerhouse compared to Iraq???? What resources do they have besides a small port and bible tourists than would make their dinar worth $1.60 and Iraq's a nickle???

If everyone is so hung up on M2 numbers and 1/1 or 2.41/1 is a pipe dream then explain to me how Jordan can function at $1.60/1???

Fred

Number of banks 14 -----
Auction price selling dinar / US $ 1272 -----
Auction price buying dinar / US $ 1270 -----
Amount sold at auction price (US $) 86.385.000 -----
Amount purchased at Auction price (US $) 2.000.000
Total offers for buying (US $) 86.385.000 -----
Total offers for selling (US $) 2.000.000 -----

Gooooooooooooooood Morning Rolclub

"The More They Take, The More We Make"
"Stay the Course, its the difference between Winners and whiners"


8.6 Trillion taken out and still the Party has not started


1. "0" Dinar rate change today, it was 1272, it is now 1272

2. A (net) worth of dinars, IQD - 107,337,720,000 pulled out of circulation today 4/18/07.

3. 14 banks participating today

4. 125th auction since the beginning of CBI's reval plan

5. 200 days into the CBI's reval plan. (SIX MONTHS+)

6. 8,631,070,261,000 dinars pulled from circulation !!

6A. Conservative ESTIMATE of Dinars still in circulation or controlled by the CBI 8,368,929,739,000

7. "2,540,000,000" Dinars back into circulation today (Again, same as yesterday)

8. 205 dinar change since Oct 1st (baseline was 1477) 13.879% increase in value of the dinar since beginning of reval plan (Approximatly Oct 1st).

9. 0 point reduction in the rate so far this week. Was at 1272 at the end of last week, 1272 so far this week.

10. 1 point drop in the month of April. Ended at 1273 in March, now stands at 1272
In January we saw a 2.49% drop in the rate.
In February we saw a .928% drop in the rate.
In March we saw a .546% drop in the rate.

Originally Posted by Jola

It looks like an opinion article, however...What I have highlighted shows that Iraq could EASILY , VERY EASY , EASY, EASY support at least 1:1 RV.

I am no economist, so I am asking is: " Doesn't this article prove that a .05 RV is out of discussion? Even as a shakeout rate?

And related to the amount of an RV: The LoI - I understand - has the specific purpose of "announcing" the IMF about a currency change/jump. Wouldn't a RV at .05 shake the neighboring countries currencies? In the sense that they would have to devalue?

Can someone help me with these questions?

I agree. Anything less than a $1 would not make the dinar the "preferred" currancy. How could it?

Finance Minister will meet the Under-Secretary of Treasury
(Voice of Iraq) - 18 - 04-2007


Republic of Iraq
The Cabinet-National Information Center
Media Relations
A press / Press Release

He met Finance Minister Baqer Jabr Al-Zubaydi, Undersecretary of the Treasury Department during his visit to Washington

Zubaidi stressed during the meeting to intensify international efforts to ensure the presence of a majority of countries participating in the International Meeting and the meeting of the neighboring countries to assist Iraq to extinguish debts and revive its economy, which possesses all the elements of a sound economy, pointing out that the majority of Iraq's debts and benefits resulting from acts of the former regime, which squandered the wealth of the country and the people heavily burdened Thus, the Iraqi citizen looks forward to helping all sister and friendly states to extinguish those debts, which introduced him 0

He punched Mr. part of its cooperation in order to mobilize international efforts to attend a meeting of the International Covenant which it is hoped held in Sharm el-Sheikh 0

It was chaired by Mr. Zubaidi Baqir Jabr Iraqi delegation, which includes Mr. Sinan Shabibi governor of the Iraqi Central Bank and a number of spe******ts in the workshop which was formed to discuss topics of the International Decade, Iraqi debt and economic reforms and implementation of the budget, as he presided over Mr. gagged Under the Treasury Department, which included the American side representatives from the State Department and National Security Council and the Defense Ministry.

Originally Posted by fredgwest1999

Five cent RV would be an economic assault on it's neighbors and might be treated as such...here is an example....with the Kiwati Dinar at $3.64 and talking of a 25% increase this month putting it north of $4...you and I want to do business in the region....why would we set up shop there when we can move across the river to Bashra (where it is peaceful -for the most part, large, expanding oil export center) and do the same business for a nickle...Where are you going...$4 verus a nickle...more bang for my buck and thus economic warfare against Kiwait...

I do not think the other countries would/will allow this...for sake the Jordanian Dinar posts for a $1.60 and they are such an economic powerhouse compared to Iraq???? What resources do they have besides a small port and bible tourists than would make their dinar worth $1.60 and Iraq's a nickle???


If everyone is so hung up on M2 numbers and 1/1 or 2.41/1 is a pipe dream then explain to me how Jordan can function at $1.60/1???

Fred

I too am sick of the M2 discussion that seems to be an obsession for some. The oil will be monetized and used as petro dinars which will mean the dinars will be held by big companies/governments and held until they use them to exchange for oil. The M2 argument does not come into it as nearly all of the dinars held outside of Iraq will not find its way back to the CBI.

The US uses petro dollars and Russia too unfortunately some folks on another forum are obsessed with it and cannot see any way round it. Am sick of explaining it.

Ho hum, their loss. Agreed, 5 cents makes no sense, Iraq wants a strong currency and they will get it soon. Why do you think all the talk has been regards to a 'par value'. Par value with what? Any takers?

Finance Minister headed the Iraqi delegation at the meeting of the Committee (24) held In Washington,
(Voice of Iraq) - 18 - 04-2007

Republic of Iraq
The Cabinet-National Information Center
Media Relations
A press / Press Release

Chaired by Mr. Zubaidi Baqir Jabr and Minister of Finance Iraqi delegation at the meeting of the Committee (24), which was held in Washington 0

The minister said during the meeting that Iraq take firm steps in the economic sphere, through the implementation of important programs, especially those aimed at reducing inflation rates for the advancement of the Iraqi economy, pointing out that the Iraqi government has opened up to all nations and countries for cooperation in the economic field and investment 0

The meeting discussed, which was attended by Mr. Brown, the British Finance Minister, and a large number of Finance Ministers and Central Bank Governors and the Presidents of the International Monetary Fund and World Bank economic themes of employment, export and consumption, investment and economic reforms to achieve high growth rates through 2007 as well as the actions taken on trade promotion and protection of identification to achieve economic integration between the States and take advantage of the productive capacities and raise employment rates and job creation and investment promotion between countries.

Originally Posted by Adster

Ho hum, their loss. Agreed, 5 cents makes no sense, Iraq wants a strong currency and they will get it soon. Why do you think all the talk has been regards to a 'par value'. Par value with what? Any takers?

Par value = Safe & Secured Iraq (free from current insurgent activities...).

The current atmosphere still does NOT warrant the desires most are biting their butts and gusto out on this lack of guarantee that is as yet, to be delivered in a complete fashion.

My version and so have many agreed, the political will is there but fall far below in reaching the ears & eyes of the International community... esp. when these same Admin heads are not coming out forthright in dealing domestic turbulence as one expects them to... COMPLETE riddence of the insurgencies and the parties involved with it (you know which by now I'm sure...)

The current level of efforts are all nice and well but they send the message in the wrong direction...WHY??? when it should be grinding down through the headbands and mullahs manipulating all the bad and bombing scenes coupled to giving extra manouvres to AlQaeda mingled within.

Political will and FEAR as again, dealing with their own insecurity and trust they still do not have with the USA and everyone trying to help them recover.

The leaning back on the main Shiite party with the most majority is the real reason why the Maliki regime isn't doing what a brave Politician should be doing... WHY again???

The religion is behind it here all along... cast that aside and OUT goes Sadr's hold on any strings pulled from that sinister sheikh's band of thugs holding ransom on everything that moves for improvement... Iran again behind this all...???

Your guess is as good as many others watching and relaxing at the same time.... no real sweat in playing the waiting game here fellas!!!


YB.