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

Everyone has to agree that the behavior of the CBI in the last four auctions has been anything but typical. If we believe that they have purchased around 340M USD of dinar out of the economy and divide that number by 680000 USD, (per Billion) then many billions of dinar has transferred to the CBI and is out of circulation. This in itself is HUGE! This is were their currency reserves and oil money comes into play. This also fits with quanitiy money theory and its effect of decreasing inflation.
Then one has to asked why was this done in a short period of time? Of course all of us would say to plus up the banks with USDs in anticipation of the demand for dollars in the event of a reeval. (Which is what I believe). So this action reduces inflation, provides USDs in and anticipation of demand, and maybe begins to remove the higher denominations from circulation. Not a bad idea. This in itself will work for us over time. To answer the question by BOOMCREEK s to why there have been few leaks, this may be one of those closely guarded secrets where only a few know the real answer. Maybe only one person knows the exact date and amount, the president of the CBI. He is an Oxford educated PHD with a specialty in currency. We might say all else is speculation and guesswork. But many pieces of information have come recently, and to say the least, these are interesting times and a RV is necessary for a lot of reasons. An RV just solves so many problems for so many people. It makes since. Why would they allow a currency to trade at over 14 dinar to the US penny. No debt, more oil than they have ever produced, violence mostly confined to Bagdad and growing GNP, lowering unemployment, solid currency reserves and a reported great deal of gold. (with maybe a lot more). One person recently said that the Repubs. would have faired a lot better if they would have had a reval in Oct. that would have given the Iraqi people a lot more belief in the GOI and used that information to tell the American people how many things have gone right over there. I came home from Iraq on R7R in Sept. 04 and returned for good in Jan. 05. Both times I was shocked at the news media. The country I saw running heavy trucks convoys all over Iraq and Kuwait was in no way the Country being reported by the news (such as NPR). So they may have missed an opportunity to show the growth of the country. Thank You, Your comments are appreciated.

The Iraqi source that Iraq planned to increase the volume of investments in oil under the new law, oil and gas, which reconsider all contracts signed under the former regime.

وذكرت تقارير إخبارية أن العراق يسعى إلى إعادة تطوير حقل الأحدب النفطي جنوب العراق الذي سيعزز الإنتاج النفطي في العراق بواقع 90 ألف برميل يومي الأمر الذي يرفع الناتج بشكل ملحوظ.

The news reports that Iraq sought to re-develop the Al-Ahdab oil field in southern Iraq, which will enhance oil production in Iraq with 90 thousand barrels daily, which raise output significantly.

وبخصوص حقل الأحدب النفطي، فان ممثلين عن وزارة النفط العراقية وشركة الواحة المملوكة جزئيا لشركة النفط الوطنية الصينية سيبدؤون العمل قريبا لتفعيل هذا العقد وقد اجتمع الوزير الذي وصل قادما من اليابان مع كبار المسؤولين بشركات النفط الحكومية الأربع في الصين.

On the Al-Ahdab oil field, the representatives of the Iraqi Oil Ministry and the oasis company partly owned oil company China National will begin work soon to activate the contract has met the minister, who had arrived from Japan with senior officials of the four government oil companies in China.

وقال الوزير النفطي العراقي أن بلاده تسعى لزيادة إنتاجها النفطي بنسبة 20% ليصل إلى 3 ملايين برميل يوميا بحلول نهاية 2006، منوها أن العراق يأمل بحلول عام 2010 أن يصل إجمالي الناتج النفطي إلى ما بين 4-4.5 مليون برميل يوميا.

The Iraqi oil minister said that his country seeks to increase its oil production by 20% to reach three million barrels a day by the end of 2006, noting that Iraq hopes that by 2010, the total oil output to between 4-4.5 million barrels per day.

about the knowledge of a bank teller and insider trading. a teller is the
last to know about new polices etc: its a job; cash checks,take deposits etc,.
bank tellers are the among the lowest paid employees.
insider trading laws cover information this is not available to the public, such as takeovers, poor sales etc. The dinar is openly available to the public
as a high risk investment; anybody that pays attention to the news / politics
has probably been exposed to the info. what they do with it is their business.

Ali Allawi: the private sector's involvement in banking sector is negligible
Pointing out that investment opportunities are available but need to maintain security
10/11/2006
Source: Translated by IRAQdirectory.com

Iraqi ex-Minister of Finance, Ali Allawi, said that the Iraqi market in the private sector has little financial work which is mostly concentrated in the government sector, especially that it is linked to the budgets of the State.

Allawi explained that the current financial status of the country is good, oil revenues are reasonable and the budget is satisfying; however, there is some kind of a problem in Iraq which is not in the loss of financial resources, but in the way of using them to increase productivity and raise the standard of living.

He said that private banking sector and financial markets began to recover, but they need a period of stability before they take their natural course.

Allawi stressed that investment opportunities in Iraq are a lot, pointing out that the underdevelopment of the financial banking sector in the past requires large investments and development in order to do its part in the Iraqi economy.
He added that opportunities are available but they need political and security stability to achieve quantum leaps in the Iraqi economy. The State has inherited a series of procedural errors from: Saddam regime, the occupation authorities and the successive Iraqi governments which did not reform the administrative system and did not put strict regulations to run the State, and this granted access to the far and near to benefit from the finance of the State.

He said that corruption plays a great role in frustrating the economic growth that can only be amended by dealing strictly and without mercy with the parties who have contributed to the destruction of Iraqi economy.

About the stability in Iraq, exercising free economic and opening banks, Allawi said: "stability is linked to the security situation and the security situation is linked to the political situation which, in turn, linked to the adjustments that could occur among Iraqi parties". He added: "Iraqi people in all their components can reach a political solution that distributes roles, interests and responsibilities among the parties of society".
Prepared & Translated By:
IRAQdirectory.com Team
Iraq Daily Business Updates
He said that the losses of Iraq because of the absence of stability are estimated by 4.5 billion a year, including the State and enterprises due to sabotage, embezzlement and destruction.

PS-Happy birthday SGS.....

Mike Brown,

I hate to differ from you, Because the Chase banks in Kingman, AZ. would not sell Dinar to me. I guess it just depends on the size of the banks and where they are. Who Knows

Iraqi deputy PM sees new oil law this year Iraqi deputy PM sees new oil law this year


BAGHDAD (Reuters) -- A policy committee hammering out a draft oil law for Iraq now has only one key issue left to resolve and the legislation should be enacted by the end of the year, Deputy Prime Minister Barham Salih said on Thursday.

He also told Reuters projections of a doubling by 2010 of Iraqi oil exports, now at 1.6 million barrels per day, and of output to 6 million bpd from 2.3 million bpd were "conservative figures" in his view.

Oil revenues are critical to the economy of Iraq, which sits on the world's third largest crude reserves, and Salih said the way they were distributed in the country would spell the difference between a united country or its violent break-up.

"It is a blueprint for a nation at peace with itself and at peace with its neighbors," Salih said in an interview at his residence in Baghdad's fortified Green Zone. "It will determine whether we want to live together as Iraqis or not."

Salih said the committee, which he expected to meet again in a couple of weeks, still had to agree on crucial provisions governing whether development contracts with oil companies could be signed at regional or national level.

"I am hopeful we will be able to bring the group together on this matter," he said.

The contracts issue is the most critical of all because a major regional say will devolve more power over resources to Iraq's majority Shias and ethnic Kurds, who populate the oilfield regions, than the national government.

Description of Selected News

Originally Posted by DayDream

GCC to launch common market by 2008 -- official

CAIRO, Nov 10 (KUNA) -- The Gulf Cooperation Council (GCC) member states will launch their common market in early 2008, according to a GCC official.

"We achieved 80 percent of the tasks related to the common market so far," Minister Plenipotentiary of the GCC Secretariat and Director of department of Studies and Economic Integration Abdul-Aziz Hamad Al-Owaisheq was quoted by Saturday's issue of the local weekly Al-Ahram Al-Arabi as saying "The remaining percentage will be completed during the coming 14 months or within 2007," he expects.

"Integration among the GCC follows five tracks, foremost among which are the free trade area - achieved by the end of 2002, and the customs union - starting from 2003," he said.

The percentage of bilateral trade volume among the GCC members rose from 6 percent before the initiation of customs union to 21 after that.

The bilateral trade volume rose from USD 18 billion in 2002 to over 31 billion in 2005, the official added. He expressed hope that the GCC single currency would be launched by 2010.

The favorable conditions should be created for works related to the legislations and mechanisms of the single currency, he pointed out.

According to press reports, more than 70 percent of the steps towards the GCC single currency were taken and most technical problems facing the endeavor were removed. (end) bna.


Cheers!
DayDream

Soooooo... I got a question. Since it appears the GCC may be ahead of schedule, does this mean perhaps Iraq may be joining the GCC prior to 2010? If so, how will that affect the current NID? My understanding was that once joining the GCC, the "physical" NID currency was going to change and of course revalue to bring it to par with the other GCC members. Am I to understand now that the NID will undergo an rv hopefully in Nov '06 and potentially another rv (and physical currency change) in '07 or '08? Any thoughts on this?

Bout time we read this again before the weekend!!! Sus, give us a WOOOOOOTTTTTTTTTTT?!


On February 25, 2006, a source from the Central Bank of Iraq stated that "The exchange rate of the Iraqi Dinar will rise significantly against the US dollar during 2006, adding that all policies will be adopted to improve the exchange rate of the country's national currency."

I just got back from Chase Bank. I went in and the teller that usually helps me was already to key in the amount that I requested and someone came by and said they were notified this week that they can no longer sell the Iraqi Dinar. I asked why and after she asked a few others that didn't know, the manager walked by and when she asked him why they can't sell anymore he casually said..."that's because it's probably going on the market". She was sorry she couldn't help me and I said NO PROBLEM...that's best news you could have given me!