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

10 November 2006 (Euro2day)

The dollar held near its recent lows against the major currencies on Wednesday as investors wrestled with the impact of Tuesday's mid-term elections in the US.

The Democrats took control of the House of Representatives, while the battle for control of the Senate was still in the balance.

Adrian Schmidt, senior forex strategist at Royal Bank of Scotland, said while a Democrat-controlled Congress would traditionally want to spend more, tax more and protect more, a Republican White House meant the prospect of any real change to policy was fairly remote.

"Although the markets will probably try to make something of the mid-terms, given the lack of other news, we struggle to ascribe much significance to them," said Mr Schmidt.

But not all observers were so sanguine.

"What we are about to have is a moribund US government caught in an Iraq quagmire, with a patchy slowing economy, and massive current account deficits," said Clifford Bennett, chief strategist at FxMax. "This is not a powerful currency buy scenario."

Mr Bennett said a Democrat-controlled House of Representatives would stall the White House "in a big way" and that he expected a lot of questioning of America's continuing role in Iraq. "This is a major negative for the US dollar that is not at all priced in," he said. "It may be widely expected but people have not traded on it."

By mid-afternoon in New York, the dollar was 0.1 per cent higher against the yen at Y117.8, but was flat against the euro at $1.2770.

Sterling was also unmoved against the dollar at $1.9050 but eased 0.1 per cent to £0.6704 against the euro ahead of Thursday's interest rate decision from the Bank of England.

Howard Archer, economist at Global Insight, said figures on Wednesday from the British Retail Consortium, which showed October shop prices rising at their fastest pace since May 2004, would reinforce the Bank of England's concerns over inflation.

"The data gives the Bank of England's Monetary Policy Committee a final nudge to raise interest rates by 25 basis points to 5 per cent, although it already looked a stone cold certainty that they would," said Mr Archer.

Elsewhere, the Australian dollar fell 0.6 per cent to $0.7680 against its US counterpart after the Reserve Bank of Australia raised rates by 25 basis points to 6.25 per cent. Analysts said while the rate rise had been fully expected by the market, it was the accompanying statement that saw investors cut back long positions in the currency.

The RBA said that while core inflation remained around the top of its target range, the impact from previous rate rises on the demand for credit by households was becoming evident.

Tom Vosa, head of market economics at National Australia Bank, said the statement saw the market revise down the chances of another rate rise in early 2007 to 33 per cent from 50 per cent. "Rate expectations could yet rise on strong inflation and labour market figures," he said. "But ultimately the slowing in Australian growth will allow the RBA to keep rates on hold."

China reported an unexpectedly large jump in its October trade surplus to $23.8bn from $15.3bn in September. Marc Chandler, currency strategist at Brown Brothers Harriman in New York said the increase was caused by soft import growth - the slowest since July 2005 - which could have been caused by China's recent curbs on capital investment spending. "This will only add to the political pressure to allow faster appreciation of the renminbi," he said.

The renminbi closed up 0.1 per cent at Rmb7.8719 against the dollar, a fresh record high since it was de-pegged from the US currency and revalued by 2.1 per cent in July 2005.

The Turkish lira dropped 0.9 per cent to TL1.4550 against the dollar after Turkey revised its current account deficit sharply higher.

Charles Robertson at ING said the revisions now pointed to a deficit of $32.7bn, or 8.4 per cent of GDP, for 2006 against predictions of a $30bn, or 7.5 per cent of GDP, shortfall prior to the announcement. "Foreign direct investment flows should offset the deficit until February 2007, though after that point, it becomes less certain," he said. "But the gap is not a healthy backdrop to a difficult political year."


Dollar flat as investors struggle for direction | Iraq Updates

Originally Posted by TEXASGIRL

A fellow investor told my husband this morning that he read, very early this morning, that the 10,000 gifts were being given out today. I can't find a blessed thing relating to this. Can someone enlighten me, please???

These are links talking about the 10000 dinar gift. Look through them and tell us what you find. Hope this helps.


Translated version of http://www.ahali-iraq.net/payv/index.php?option=com_content&task=view&id=3806&Ite mid=26

Translated version of http://www.aswataliraq.info/modules.php?op=modload&name=News&file=article&sid= 28641&mode=thread&order=0&thold=0

Translated version of http://www.aswataliraq.info/print.php?sid=28465

Translated version of http://happymorning.friendsofdemocracy.net/default.asp?item=202395

Originally Posted by Adster

Boomcreek was going to BoA this afternoon to find out about ordering dinars etc. Could be another confirmation in our favour folks.

I think with all positive news lately I'm going to head out to the beer store and get Adster that case of beer I promised for when this thing R/V....what would you like Adster? Moosehead or Steam Whistle....two of my favorites

Does anyone have the link that spoke about Russians getting impatient with the lack of movement in Iraq. I remember reading it recently.. I tried doing a search and still can't find it... thank u.. :) ez

Just to recap folks, do we have a new date to focus on for the reval, are we looking at Sunday any suggestions,

Originally Posted by AlwaysDreaming

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!

AlwaysDreaming,

I just PM'd you regarding the branch location.

Even though i will get chewed out : hopefull VERY, excited no too many false
alarms. concerning the statement On feb 25 2006 a source said ETC ETC ETC. what is their definition of significant : logic and common sense are not usually seen in the muslim world and who was the source ? a vp or the janitor

Originally Posted by jedi17

I think with all positive news lately I'm going to head out to the beer store and get Adster that case of beer I promised for when this thing R/V....what would you like Adster? Moosehead or Steam Whistle....two of my favorites

.



Sound good matey, thanks, we'll have to crack a case or 6 at the r/v party!

Originally Posted by Vipor

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?

I thought I had read that the GCC was going to have a monetary Union in 2010...so I think that it will be somewhat like the European Union in that they physically changed their monies all at once, giving people time to trade them in....I don't think that they will change the Physical NID soon...JMO

Originally Posted by AlwaysDreaming

This was posted at IIF:

Iraq » Money
Currency
The new Iraqi Dinar was introduced in October 2003. Iraqi Dinar (ID) = 20 dirhams = 1000 fils. Notes are in denominations of ID25,000, 10,000, 5000 and 500. There are plans to introduce ID 100, 50 and 25 denomination notes. Because the cost of scrap metal rose higher than the actual value of the coins, the central bank of Iraq withdrew all coins tendering a bid to sell the coins for scrap metal. This information is subject to frequent change in the current conditions.


Iraq Money | AME Info Country Guide

When I click on the link, I cannot find where the bold print is stated. I asked and the response was "Obviousely the site was edited since November 2005"

Has anyone else seen this with the bolded print?

I don't know where AME got that info because there originally was a 50.

Anyhow, i never saw that old web page... but AME had incorrect info if they had it posted before.