Thread: Iraq/Dinar News. 09/05 to 01/14/07

GK,
“It is also possible that rising international crude oil prices and growing spending power in the economy are pushing up Iraq’s equilibrium real exchange rate. With the nominal exchange rate fixed, the real exchange rate adjustment is reflected in a rising domestic price level.”

Can you expound a little more on this for me?

Originally Posted by lndmn_01

I have a friend who ordered this way at chase and they just rounded off to the nearest 25k dinar.

Thats why I am doing it at Wachovia to see if they do the same. I understand all about Chase as I and jsfletcher learnt them together in the beginning. I want know anything from Wachovia on what they will do as for as what I will recieve, until Tuesday or Wednesday. But what I do find cool, is that they can do the exchanges also now. Not Just Chase. I find this very Interesting that more Banks are getting onboard.

Originally Posted by neno

Thats why I am doing it at Wachovia to see if they do the same. I understand all about Chase as I and jsfletcher learnt them together in the beginning. I want know anything from Wachovia on what they will do as for as what I will recieve, until Tuesday or Wednesday. But what I do find cool, is that they can do the exchanges also now. Not Just Chase. I find this very Interesting that more Banks are getting onboard.

yep, when the banks are ready, im ready too!!!

Do you know that the IQD is being tested at the $.06 range since its intro back in Oct 2003? Do you know that just the release of the fils (100 fils) the minimum value of the IQD is $.06. How so?

The IQD has been locked into the 1460 exchange rate under the EPCA and 1500 under the SBA.

The fils have not been released, although historically and officially the IQD is still made up of 1000 fils.

At the program exchange rate of 1500:1, the IQD without the fils cannot be and will never be in parity with the US dollar. Why? The USD is further broken down to 100 cents, the IQD currently is not. Without the fils, it can only be in parity with the US cent. In short 1 IQD is in parity with 1 US cent.

If you do the math based on this you'll end up with a ratio of 100 US cents per 1500 IQD, or 1 us cent per 15 IQD.

100/1500 = .06

1/15 = .06

FYI. The 15:1 "Heavy Dinar" was the rate recommended to the UN back in 2003.

Published: 10/15/2006 12:00 AM (UAE)

Saudi King meets influential Iraqi clerics (GO SAUDI)
AP



Riyadh: Saudi Arabia's King met yesterday with prominent Iraqi Sunni and Shiite clerics and urged them to practise patience and serenity in their country, an official statement said.

The meeting of the clerics with King Abdullah Bin Abdul Aziz in Makkah underlined the growing concern over sectarian violence in Iraq.

"May your country live in peace and pacification; my brothers, we need now patience, calmness and quietude to get to know each other," the King said, according to the statement.

A prominent hard-line Iraqi Sunni cleric, Harith Al Dhari, who leads the influential Association of Muslim Scholars, was among those who met with King Abdullah.

Al Dhari has expressed his readiness to meet with top Shiite religious leaders, part of an initiative to curb sectarian violence.

Civil war fears

Sunni-Shiite violence in Iraq has risen steadily since the February 22 bombing of a Shiite shrine in Samarra, triggering a wave of reprisal killings and raising fears of a civil war.

Saudi Arabia, along with many other countries in the region, worries about the prospect of civil war in Iraq.

It fears Iranian influence on Iraq's new Shiite ruling elite and that the growing Shiite-Sunni tensions inside Iraq might spill over into other countries.

The Saudis are especially sensitive to the possibility of unrest among the kingdom's Shiite minority because it is centred in the east of the country.

Last week in Jeddah, a preparatory meeting was held by the 57 member nations of the Organisation of the Islamic Conference to formulate a document on reconciliation between Iraqi Sunnis and Shiites.

The document is to be proclaimed at the next meeting of the OIC, which is scheduled for Thursday and Friday.

The OIC seeks "stopping the turmoil in Iraq out of consciousness of its responsibility before Allah, the Islamic nation and history," organisation secretary-general Ekmel Al Deen Ehsanoglu said in a statement.

I'm thinking we have a DD!!!

Originally Posted by "GK"

Do you know that the IQD is being tested at the $.06 range since its intro back in Oct 2003? Do you know that just the release of the fils (100 fils) the minimum value of the IQD is $.06. How so?

The IQD has been locked into the 1460 exchange rate under the EPCA and 1500 under the SBA.

The fils have not been released, although historically and officially the IQD is still made up of 1000 fils.

At the program exchange rate of 1500:1, the IQD without the fils cannot be and will never be in parity with the US dollar. Why? The USD is further broken down to 100 cents, the IQD currently is not. Without the fils, it can only be in parity with the US cent. In short 1 IQD is in parity with 1 US cent.

If you do the math based on this you'll end up with a ratio of 100 US cents per 1500 IQD, or 1 us cent per 15 IQD.

100/1500 = .06

1/15 = .06

FYI. The 15:1 "Heavy Dinar" was the rate recommended to the UN back in 2003.

Thats Cool and All, But that is not what it says here: Central Bank Of Iraq

Announcement No.(788)

D.G. of Foreign Exchange Control

The 788 daily currency auction was held in the Central Bank of Iraq day Thursday 2006 / 10/ 12 so the results were as follows :

Details Notes
Number of banks 14 -----
Auction price selling dinar / US $ 1470 -----
Auction price buying dinar / US $ ----- -----
Amount sold at auction price (US $) 58.810.000 -----
Amount purchased at Auction price (US $) -----
Total offers for buying (US $) 58.810.000 -----
Total offers for selling (US $) ----- -----

Cash amounts sold to the bank and its customers were USD(24.750.000) at a rate of(1470+1+10=1481)IQD\USD .
The amount sold to make transfers abroad was USD (34.060.000) at a rate of (1470-2)+ one dinar as a bank fee and exempt the transferred amount from conversion fee.

Or Here:Iraq Stock Exchange Data featuring Quotes, Iraqi Market News and ISX Analysis
Baghdad Time: 08:40am, 10/15/2006 ~ market is closed | $1 USD = 1470.63 IQD ^

Originally Posted by ilj

GK,
“It is also possible that rising international crude oil prices and growing spending power in the economy are pushing up Iraq’s equilibrium real exchange rate. With the nominal exchange rate fixed, the real exchange rate adjustment is reflected in a rising domestic price level.”

Can you expound a little more on this for me?

Since the IQD's nominal exchange rate is not allowed to appreciate under the IMF supported program (hence the term "program exchange rate"), it is not keeping up with the prices of commodities in Iraq.

Originally Posted by neno

Thats Cool and All, But that is not what it says here: Central Bank Of Iraq

Announcement No.(788)

D.G. of Foreign Exchange Control

The 788 daily currency auction was held in the Central Bank of Iraq day Thursday 2006 / 10/ 12 so the results were as follows :

Details Notes
Number of banks 14 -----
Auction price selling dinar / US $ 1470 -----
Auction price buying dinar / US $ ----- -----
Amount sold at auction price (US $) 58.810.000 -----
Amount purchased at Auction price (US $) -----
Total offers for buying (US $) 58.810.000 -----
Total offers for selling (US $) ----- -----

Cash amounts sold to the bank and its customers were USD(24.750.000) at a rate of(1470+1+10=1481)IQD\USD .
The amount sold to make transfers abroad was USD (34.060.000) at a rate of (1470-2)+ one dinar as a bank fee and exempt the transferred amount from conversion fee.

Or Here:Iraq Stock Exchange Data featuring Quotes, Iraqi Market News and ISX Analysis
Baghdad Time: 08:40am, 10/15/2006 ~ market is closed | $1 USD = 1470.63 IQD ^

100cents/1470.63 IQD = .067

Let us go back to the old coconut and fish society. Let's say we have an island, and on this island there is one fisherman and one coconut grower. On the island there is only one coin, and one coin buys a fish or a coconut. It works as long as the fisherman and the coconut grower need a fish and a coconut from each other in respective sequence. Wealth is being neither created or destroyed, just transferred to another form.

One day, the coconut grower decides he will put work extra hours and will harvest one hundred coconuts, and the fisherman decides to haul home one hundred fish. They can barter of course, but if they want to have value that is saved, they need more currency. They can now decide to mint 99 more coins, each having the value of one fish or one coconut, and thus having a total of 100 coins in the marketplace, as long as one coin still will have the value of one fish or one coconut.

So, the economy on this island has now grown 100 times in size, and there is 100 times more currency in circulation. The money still has the same relative value, the only difference is that there are more commodities on the island to buy and sell. They are now living a better life, BECAUSE they have PRODUCED more, and because they have PRODUCED more, they now have more money in circulation.

THIS IS WHAT THE BIG INVESTORS WILL CREATE!!!!!

Now, here comes this third person onto the island, schooled in "zero currency", socialist to the core, claiming that he has nothing and it is unfair that the coconut grower and the fisherman have all the money. He will stay poor and in a world of injustice, unfairness until he gets the idea that he needs to produce something that have exchange value.

WE HAVE SOMETHING WITH GREAT EXCHANGE VALUE!!!!!

The biggest injustice given to the undeveloped countries is the continuous false education of basic economical principles that there is only a set amount of money, and the rich and prosperous countries have already taken them all. There is no such thing as one shoebox of money, and no more.

Imagine the amount of dollars in circulation at the very beginning of the United States. Small villages along rivers and coastlines with a tiny amount of currency in circulation. Take all those dollars and compare them with the amount of dollars in circulation today. Yet today we are much more wealthy, as is the rest of the world.

Where did all of these additional dollars come from? We have PRODUCED, and thus we have increased our wealth.

ISX-Data.com / The Myth of Finite Wealth

I found this interesting

This is why Iraq is probably going to be the richest Country in the World. They have a lot to produce and exchange. It is an untaped market with the most sort after product which has not really been touched. It has so much growth and that is why you have a line around the Country waiting to get in. Anyone who does not see this happening in a big way needs to read the part in the article that I marked in red.

HUGE RV COMING!!!!!!!

Dinar-Excited