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

Originally Posted by tiffany

I'm wondering if there would be a difference seeing as though the dinar exchange is different than depositing or cashing a check. Which TECHNICALLY we would be exchanging money-for-money...I don't know...but you are right choochie, it is better to know your banker. :-)

Tiff,
It is not really how you think it is. When you exchange your dinar, you are either going to have them deposit the dollars into the account you hold with them, or if you don't have an account with them, they are going to give you a bank check to take to your own branch. I don't think that they are just going to give you a pile of cash. So either way, you would be making some kind of transaction. That was the way that I understood it. I would have to go to a different bank to exchange, and then they would give me a check to deposit into whatever account I choose. Since I don't think that my particular bank will be doing exchanges anytime in the near future. I hope this explains things a little more, and sorry if sounds a little scattered.

Beck

Hey Beck!

Thank's for that! ;-)

I worked at a bank and we did currency exchanges all the time...but it was Canadian for U.S. (I live near the border and there are a few casinos around :-)

I never had to fill out any papers for tax purposes for anyone...and there were some pretty big jackpots that came through my window! :-)

Still curious about exchanging a larger amount...like 1-200,000 worth. What would my response be if I was asked "where" I got them from? "oh, about 10 different dealers" or "my friend is in the army"...what is the 'best' answer for this question?

Tiff :-)

Originally Posted by tiffany

Hey Beck!

Thank's for that! ;-)

I worked at a bank and we did currency exchanges all the time...but it was Canadian for U.S. (I live near the border and there are a few casinos around :-)

I never had to fill out any papers for tax purposes for anyone...and there were some pretty big jackpots that came through my window! :-)

Still curious about exchanging a larger amount...like 1-200,000 worth. What would my response be if I was asked "where" I got them from? "oh, about 10 different dealers" or "my friend is in the army"...what is the 'best' answer for this question?

Tiff :-)

Funny,

I know what my response would be if asked. None of your damn business. LOL Seriously, as long as there is no forms to complete on a larger exchange, and you are not taking out over $10K in cash, the bank has no right to ask, they will simply run it through their processing center and deposit the funds in your account, end of story. (g)

Good luck to all, Mike

Hi Tiffany and Choochie - Boy would I like to join you both but am also planning way to surprise my husband. How about we all take photos and swap them to see their reactions. I will have to be careful though as my husband has a bad heart but the upside is he has an implanted difibrilator so the shock hopefully won't be too much for him. When you have some spare cash (hopefully soon) maybe you could plan a trip down under. Would be great to meet fellow conspirators with a common goal of showing our husbands how much it means to us to surprise them like this.

World Bank decides to boost presence in Iraq

World Bank decides to boost presence in Iraq17/05/2006 Source: Reuters

The World Bank will increase its presence inside Iraq and add up to three international staff or consultants to its current operations, the bank's Iraq country director told the board on Tuesday.

In documents obtained by Reuters, Joseph Saba, the bank's country director for Iraq, said the increased presence would enable the bank to deepen its policy dialogue with Iraq's new government and allow it to play a more central role in coordinating donor efforts.

"With the advent of a permanent Iraqi government, the bank sees opportunities for increased stability, more fruitful cooperation and enhanced program effectiveness that warrant a further incremental strengthening of the bank's presence in Iraq," Saba told the board in an informal briefing.

Australia Cancels 80% of Its Debt

Australia Cancels 80% of Its Iraqi Debt 13/05/2006 Source: Business Wire

The Government of Iraq today announced that it has signed a bilateral agreement with Australia canceling the equivalent of U.S.$856 million of Iraqi debt, amounting to 80% of Australia's claims against Iraq. The bilateral agreement implements the Agreed Minute concluded in November 2004 between Iraq and eighteen Paris Club creditor countries.

Earlier this year, Iraq signed similar accords with the Netherlands, Finland, the Republic of Korea and Sweden, and during 2005 Iraq signed similar bilateral agreements with Canada, Italy, Belgium, Japan, Austria, France, Denmark, Switzerland, Spain and Germany. The United States cancelled 100% of its claims against Iraq in December 2004.

Prior to this agreement, the claims of the Australian government against Iraq totaled approximately U.S.$1,070 million. When fully phased in, the agreement signed today will reduce this debt stock to approximately U.S.$214 million. The debt reduction will take effect in three installments. Approximately U.S.$321 million was cancelled as of January 1, 2005 and a second installment of approximately U.S.$321 million of debt was cancelled as of December 23, 2005, the date of approval by the International Monetary Fund of a formal Stand-By Arrangement with Iraq. A final installment, equal to approximately U.S.$214 million, will automatically take effect upon the completion by the International Monetary Fund of the final review of a three-year implementation of IMF programs. The residual debt stock will be repayable over a 23-year period with 6 years of grace on principal payments. No principal or interest will be payable during the first three years.

"Iraq appreciates the constructive approach taken by Australia throughout the negotiations of this agreement," said Iraq's Minister of Finance Ali A. Allawi. "Iraq welcomes the conclusion of another bilateral agreement implementing the Paris Club Agreed Minute."

The other countries comprising the Paris Club creditors of Iraq are Russia and the United Kingdom. Bilateral agreements between Iraq and each of these countries are expected to be announced in the coming weeks.

More good news! Thanks Mike!

First Kuwait.....The Saudi's are considering revaluing, and now looks like the UAE may do it.....who else is around that area? Hmmmm, of course, Iraq......


Call to allow dirham to rise against dollar
By Arif Sharif, Staff Reporter
http://archive.gulfnews.com/article...6/10040311.html


Dubai: The UAE should allow the dirham to appreciate against the US dollar, as Kuwait did with the dinar last week, to reduce inflationary pressures in the UAE economy, analysts said yesterday.

They said a revaluation of the dirham versus the dollar, to which it is currently pegged, would not represent a change in policy but just a step towards the goal of achieving a common currency union by 2010.

Last Thursday, Kuwait raised the value of the dinar by 1 per cent, sparking speculation that several other countries in the GCC would follow suit. The currencies of all these countries are pegged to the dollar.

"Something between a two to five per cent revaluation would be appropriate especially now when there are strong inflows on both the current and capital accounts," said Hany Genena, a Cairo-based economist with brokerage EFG-Hermes.

The UAE currently imports most products that its population consumes cars, clothes, phones, furniture, machinery and a fall in the dollar versus the euro and other Asian currencies results in these items becoming costlier.

The dirham is currently pegged to the dollar but floats against all other currencies. A weakening of the dollar does not affect the price of goods bought from the US but makes imports from all other countries like Mercedes Benz cars or Italian jackets more expensive.

Some 32 per cent of UAE imports in 2004 currently come from the European Union, 10 per cent from China, nine per cent from India, nearly seven per cent from Japan and only about six per cent from the US.

And since the dollar has slid by 8.5 per cent against the euro the beginning of the year and by 9.98 per cent versus yhe pound, this would have increased import costs from the European Union by nearly three per cent.

UAE businessman importing cars, or furniture now have the unpleasant choice of passing on the higher costs to the consumers in an intensely competitive market or to watch their profits erode.

Official estimates pegged inflation in the UAE at about six per cent in 2005 but many analysts believe the figure could have been as high as 15 per cent.

The central bank said it expects this to moderate to a little over four per cent later this year.

Investment bank Goldman Sachs said in a recent research report that a currency revaluation in the Gulf countries might make good sense.

"The idea might find some support among regional policy makers, preoccupied with inflation. There is a decent chance that regional central banks would gradually move towards exchange rate flexibility going forward," the bank said in a report issued on May 11.

Kuwait's decision to revalue its currency has increased the probability that other regional central banks would follow suit, although this would be very controlled to allow governments to take advantage of high oil prices for as long as possible, it added.

Eckart Woertz, program-me manager for economics at independent think tank Gulf Research Centre said some realignment of the exchange rate might be good to curb inflationary pressure.

"But longer term, we think the UAE should move to a trade-weighted currency basket," he said.

Some analysts believe that the currency peg has served the UAE well for more than 20 years and there was no reason to change it now since the impact of the weakening dollar was not severe.

Genena said a revaluation of that magnitude would not be a deviation from current policy of maintaining a dollar peg but just another step towards a currency union that the GCC countries are aiming for by 2010.

Abdullah Sharafi, executive director oil equipment trading firm Gerab Enterprises, said his company hedges against currency fluctuations and also asks suppliers to quote prices in dollars wherever possible. But this adds to costs through a higher premium paid.

"I don't think our currency is undervalued considering our economy and I don't think a revaluation is the best way of addressing a trade surplus," he said.

At a glance: Imports likely to become cheaper

The UAE dirham has been pegged to the dollar for years.
Kuwait's decision last week to allow the dinar to appreciate by one per cent against the dollar sparked speculation that other GCC central banks would follow suit.
The dollar, and hence the dirham, have slid nearly nine per cent versus the euro since the beginning of the year as well as against other Asian currencies.
The UAE imports most products that its population consumes cars, clothes, phones, furniture, machinery. Some 32 per cent of the imports in 2004 came from the European Union, 10 per cent from China, nine per cent from India, 6.8 per cent from Japan and six per cent from the US.
The dirham's slide against the euro alone would have added nearly 3 per cent to the UAE's import costs. The extent to which the increase in import costs are passed on to consumers depends on competitive conditions within an industry.
Companies can hedge against currency fluctuations, ask suppliers to quote prices in dollars but this adds to costs.
Move will make imports cheaper again and exports, mainly oil, more expensive.

Interesting, the rate has increased......just need to get it up to pre 2003's rate.

http://www.imf.org/external/np/tre/t...ition_flag=YES

Originally Posted by Adster

Interesting, the rate has increased......just need to get it up to pre 2003's rate.

http://www.imf.org/external/np/tre/t...ition_flag=YES

In light of all that is happening, it shouldn't be long now.