Thread: Iraq/Dinar News until 5PM CST May 10,2007

Iraq intends to automate banking sector
07.05.07
Baghdad-file Press

The manager of Rafidain Bank Then Yasiri, the implementation of the restructuring of the banking sector year will begin soon, the adoption of a comprehensive electronic system, and mechanisms keep pace with new developments, pointing to the establishment of training centers particular sector, in addition to external courses, and preparation of studies to evaluate the annual performance, using research centers and spe******ts.

He said that human resource development is a human long-term investment, leading to upgrade the performance of the banking sector, in addition to the importance of the opening of branches and offices to provide better banking services for the citizen, available in all areas, pointing out that the bank, which was founded in 1941 in connection with the implementation process of developing a comprehensive, includes linking all branches techniques new enhance its competitiveness with foreign banks, expected to open branches in Iraq.

He explained that the role of the banking sector in economic development lies in its ability to mobilize savings and investment in economic sectors, the expansion of monetary credit, and long-term financing to projects serving the overall development, adding that the investment in this area, the most important factor in the development of the stock market.

He pointed to the success of the Central Bank to raise the price of the dinar against the dollar, pointing out that the prices of goods and services remains high, as reflected negatively on the cost of production, adding that the process control have become vested interest rates banks since 2004, after it had been confined Iraqi Central Bank, and raising the interest rate reduced lending rates.

Originally Posted by Cyberkhan

WTF is this??????

Is there no competence in reporting anywhere????????????

What is the "WTF"? World Trade Federation or something?

Originally Posted by danny51

What is the "WTF"? World Trade Federation or something?

i always thought it meant Wave The Finger....

Originally Posted by shotgunsusie

well, we know on one hand that the iraqis might do any durn thing imaginable to irritate some of these investors on this forum. then, on the other hand, youve got signatures on the ici from iraqs GOI that says in order for them to get some of the debt relief and possibly even more they gotta make economic alterations. weve read what these are. they gotta get those banks and that isx hooked up together to operate in a modern day manner financially. the days of the chalkboards are over.

the cbi was shut down for a time, probably to update their electronics and prepare to hook up to the rest of the country. now there is a report that al rafidian site is down and has been for days, no doubt updating their electronic system. the isx has been doing that for months and they were reported to be ready by beginning of june. all these systems hooked together to form an advanced financial operation for iraq which is obviously needed in order to handle large volumes of transactions.

so i believe when they get prepared in the financial community to open up business to the world they will do so with a revalued dinar. will it be before the isx opens to the world? yeah, weve all known how to invest in the isx but the average joe investor doesnt or feels it too volitile to consider at this juncture. our investment in the isx has kept it afloat until they could open it up to the rest of the world im convinced. call us the lucky ones who got in on it when it was low. doesnt mean it wont do a reverse split but thats the name of the game in stocks. but yeah i believe they will have a revalued dinar price before telling that average joe investor to buy some iraqi stock.

now, to answer if i have considered it not revaluing before the isx opens? i will instruct warka to take my holdings and purchase stock with it right away because when they open that country to the world that stock will start to trade and it will start to go up quickly. faster than the price of dinar will rise undoubtedly and i will take the profit from that and keep it in dinar so as to enjoy the continued rise of the currency value.

these boys arent the brightest bulbs in the governmental lamps but they realize they need to watch that oil investment closer since it is their livelihood for a long time. and since they realize that, i would venture to guess they are aware of selling their stock at 1260 dinar to the dollar would be in essence giving it away.

susie could u explain to me what exactly is a reverse split means

Originally Posted by nikki

i always thought it meant Wave The Finger....

W= what T= the F= you can guess this one

Voices of Iraq : Minister-Parliament
Books : adel on Monday, 07 May 2007-5:13 PM BT

Bayati : portfolios resolved before Parliament this week

Adel luxurious
Baghdad - (Voices race)

Mr. Abbas Bayati, a member of the House of Representatives from the United Iraqi Alliance bloc, today, Monday, that a number of ministerial portfolios has been resolved in the context of a cabinet reshuffle expected by the Committee charged by the Prime Minister, will be presented to the House during the current week to get confidence.
Bayati added in a statement to the News Agency (Voices of Iraq) Independent today, Monday, that "would change ten ministries, will include the Ministries of Defense and Interior."
At the same time, Bayati explained that the parliament will discuss and approve of a number of laws before the summer recess of the Board scheduled Among these laws Law oil and other important laws.
He pointed out that the Council will seek to reduce the length of vacation scheduled to complete more projects awaiting legislation from the Council.
The number of deputies objected to the demand of the American President George Bush to postpone the upcoming holiday Iraqi Parliament pending the completion of the legislation needed by the country, where some considered this requirement interference "unreasonable or unacceptable" ... With Vice Others felt that the matter does not come from being "Tip and desire", and a third team went to the theme "the Iraqi Parliament."
ح مH M

æÒÑÇÁ - ÈÑáãÇä :: Aswat al Iraq :: Aswat al Iraq

I hope you forgive me for this this naive question here but It's been bugging me a bit so what the heck!

As I understand the international currency markets (and the understanding does NOT come from a professional point of view) I always thought that if you sold a currency it became weaker does it not? So, by that reckoning, if it's correct, will a mass sudden selling of millions of dinar all at once cause the value of that currency to dip?

Judging by the number of people owning multi million amounts just here in the ROL club will surely have an effect on the rate after it RV's (said clasping hands and looking up ).

As I sort of understand it, large currency rate changes are currently caused by small interest rate changes or incidents in certain countries causing effects in world markets, I've seen what is happening to the dollar and heard of investors moving to other currencies because of it's weakness, in turn making the dollar even weaker. I may be wrong there but thats how it looks to me.

By that reasoning then, would limits you could exchange at any one time be implemented by the powers that be so as not to "rock the boat" too much and cause a destabalisation of the dinar exchange rate so that a smooth transition into the world currency markets could be done in a controlled manner?

Please don't beat me up over this, it's just something that has been at the back of my mind for a while so I thought I'd ask you guys who have more insight into how the exchange rate mechanism works.

Steve

Saudi warns off currency speculators
by Reuters on Monday, 07 May 2007
Six Gulf countries aiming for monetary union by 2010 are committed to their dollar pegs, and speculators betting on rising Gulf currencies could get their fingers burnt, Saudi Arabia's central bank vice governor Muhammad Al-Jasser said.

In an interview with Reuters on Sunday, Al-Jasser also said he saw no need to tighten Saudi monetary policy now and added that the country's dollar peg served the Gulf's largest economy well.

Saudi Arabia is one of the six countries in the Gulf Cooperation Council (GCC) which plans a single currency by 2010. However, this deadline is in doubt. Markets have been piling pressure on Gulf currencies, betting that some central banks will allow their currencies to appreciate against the falling dollar.

Asked what he would say to those speculators betting on higher Gulf currencies, Al-Jasser said: "Try to find other currencies. GCC currencies are solid, well managed and (it) would be dangerous for speculators to try to play them."

Al-Jasser, who is vice governor of the Saudi Arabian Monetary Agency, added that the six Gulf countries had not discussed the dollar peg at a meeting they held in April.

"The course was stayed because it wasn't raised as an issue. The course is to peg the currencies to the dollar until the launch of monetary union and the creation of the monetary institution," he said.

"Everybody is still committed to that agreement," said Al-Jasser, who was in Basel for a bi-monthly meeting of central bank officials at the Bank for International Settlements.

Speculation of a delay to monetary union gathered momentum after Oman said last year it had decided not to meet the target.

Al-Jasser said: "2010 is getting closer and closer which makes it much more demanding to complete all the technical work, but the committees are working hard and we see what we can achieve before the deadline."

Asked if the countries were committed to the deadline, he said: "Yes."

The dollar's recent slide to a record low against the euro has made some Gulf Arab imports more expensive, driving up inflation.

But Al-Jasser said: "No, we will not (change the peg) because it continues to serve us well. As long as the present circumstances prevail, we have no reason or interest in changing it."

"Of course whenever you are pegged to a currency and it depreciates or appreciates, it raises concerns," he said.

"However, in the case of Saudi Arabia, the dollar happens to be a natural hedge, meaning all of our exports are denominated in dollars, and more than 70% of imports are denominated in dollars ... Therefore, the impact is not as significant as one would gather from reading newspapers."

Saudi Arabia raised benchmark repo interest rates by 30 basis points in February to 5.5%.

"If there is a need for action it will be taken and reported but it's not something to be discussed a priori. I don't think there is a need now (to tighten policy)," he said.

Saudi warns off currency speculators
by Reuters on Monday, 07 May 2007
Six Gulf countries aiming for monetary union by 2010 are committed to their dollar pegs, and speculators betting on rising Gulf currencies could get their fingers burnt, Saudi Arabia's central bank vice governor Muhammad Al-Jasser said.

In an interview with Reuters on Sunday, Al-Jasser also said he saw no need to tighten Saudi monetary policy now and added that the country's dollar peg served the Gulf's largest economy well.

Saudi Arabia is one of the six countries in the Gulf Cooperation Council (GCC) which plans a single currency by 2010. However, this deadline is in doubt. Markets have been piling pressure on Gulf currencies, betting that some central banks will allow their currencies to appreciate against the falling dollar.

Asked what he would say to those speculators betting on higher Gulf currencies, Al-Jasser said: "Try to find other currencies. GCC currencies are solid, well managed and (it) would be dangerous for speculators to try to play them."

Al-Jasser, who is vice governor of the Saudi Arabian Monetary Agency, added that the six Gulf countries had not discussed the dollar peg at a meeting they held in April.

"The course was stayed because it wasn't raised as an issue. The course is to peg the currencies to the dollar until the launch of monetary union and the creation of the monetary institution," he said.

"Everybody is still committed to that agreement," said Al-Jasser, who was in Basel for a bi-monthly meeting of central bank officials at the Bank for International Settlements.

Speculation of a delay to monetary union gathered momentum after Oman said last year it had decided not to meet the target.

Al-Jasser said: "2010 is getting closer and closer which makes it much more demanding to complete all the technical work, but the committees are working hard and we see what we can achieve before the deadline."

Asked if the countries were committed to the deadline, he said: "Yes."

The dollar's recent slide to a record low against the euro has made some Gulf Arab imports more expensive, driving up inflation.

But Al-Jasser said: "No, we will not (change the peg) because it continues to serve us well. As long as the present circumstances prevail, we have no reason or interest in changing it."

"Of course whenever you are pegged to a currency and it depreciates or appreciates, it raises concerns," he said.

"However, in the case of Saudi Arabia, the dollar happens to be a natural hedge, meaning all of our exports are denominated in dollars, and more than 70% of imports are denominated in dollars ... Therefore, the impact is not as significant as one would gather from reading newspapers."

Saudi Arabia raised benchmark repo interest rates by 30 basis points in February to 5.5%.

"If there is a need for action it will be taken and reported but it's not something to be discussed a priori. I don't think there is a need now (to tighten policy)," he said.
Saudi warns off currency speculators
by Reuters on Monday, 07 May 2007
Six Gulf countries aiming for monetary union by 2010 are committed to their dollar pegs, and speculators betting on rising Gulf currencies could get their fingers burnt, Saudi Arabia's central bank vice governor Muhammad Al-Jasser said.

In an interview with Reuters on Sunday, Al-Jasser also said he saw no need to tighten Saudi monetary policy now and added that the country's dollar peg served the Gulf's largest economy well.

Saudi Arabia is one of the six countries in the Gulf Cooperation Council (GCC) which plans a single currency by 2010. However, this deadline is in doubt. Markets have been piling pressure on Gulf currencies, betting that some central banks will allow their currencies to appreciate against the falling dollar.

Story continues below ↓
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Asked what he would say to those speculators betting on higher Gulf currencies, Al-Jasser said: "Try to find other currencies. GCC currencies are solid, well managed and (it) would be dangerous for speculators to try to play them."

Al-Jasser, who is vice governor of the Saudi Arabian Monetary Agency, added that the six Gulf countries had not discussed the dollar peg at a meeting they held in April.

"The course was stayed because it wasn't raised as an issue. The course is to peg the currencies to the dollar until the launch of monetary union and the creation of the monetary institution," he said.

"Everybody is still committed to that agreement," said Al-Jasser, who was in Basel for a bi-monthly meeting of central bank officials at the Bank for International Settlements.

Speculation of a delay to monetary union gathered momentum after Oman said last year it had decided not to meet the target.

Al-Jasser said: "2010 is getting closer and closer which makes it much more demanding to complete all the technical work, but the committees are working hard and we see what we can achieve before the deadline."

Asked if the countries were committed to the deadline, he said: "Yes."

The dollar's recent slide to a record low against the euro has made some Gulf Arab imports more expensive, driving up inflation.

But Al-Jasser said: "No, we will not (change the peg) because it continues to serve us well. As long as the present circumstances prevail, we have no reason or interest in changing it."

"Of course whenever you are pegged to a currency and it depreciates or appreciates, it raises concerns," he said.

"However, in the case of Saudi Arabia, the dollar happens to be a natural hedge, meaning all of our exports are denominated in dollars, and more than 70% of imports are denominated in dollars ... Therefore, the impact is not as significant as one would gather from reading newspapers."

Saudi Arabia raised benchmark repo interest rates by 30 basis points in February to 5.5%.

"If there is a need for action it will be taken and reported but it's not something to be discussed a priori. I don't think there is a need now (to tighten policy)," he said. [/QUOTE]
Saudi warns off currency speculators - Banking & Finance - ArabianBusiness.com

Originally Posted by Stevethebrit

I hope you forgive me for this this naive question here but It's been bugging me a bit so what the heck!

As I understand the international currency markets (and the understanding does NOT come from a professional point of view) I always thought that if you sold a currency it became weaker does it not? So, by that reckoning, if it's correct, will a mass sudden selling of millions of dinar all at once cause the value of that currency to dip?

Judging by the number of people owning multi million amounts just here in the ROL club will surely have an effect on the rate after it RV's (said clasping hands and looking up ).

As I sort of understand it, large currency rate changes are currently caused by small interest rate changes or incidents in certain countries causing effects in world markets, I've seen what is happening to the dollar and heard of investors moving to other currencies because of it's weakness, in turn making the dollar even weaker. I may be wrong there but thats how it looks to me.

By that reasoning then, would limits you could exchange at any one time be implemented by the powers that be so as not to "rock the boat" too much and cause a destabalisation of the dinar exchange rate so that a smooth transition into the world currency markets could be done in a controlled manner?

Please don't beat me up over this, it's just something that has been at the back of my mind for a while so I thought I'd ask you guys who have more insight into how the exchange rate mechanism works.

Steve

if it is a fixed rate it will remain at that rate until it is adjusted. i dont know about everyone else but im not about to trade in more than i need RIGHT NOW and i will be hanging onto the rest. you gotta remember that several countries have bought millions of dinar to exchange back to iraq for oil no doubt. they wont be getting all their oil at once so it will be a long time before they get all their dinar turned back in.

Cheers SGS, thats reassuring. I was thinking about playing safe too not exchanging too much too early.

I wouldn't need to exchange much to get me out of the doodoo so being in control for a while before the big exchanges later would be just as good!!

Steve