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

Ref CBI Auction.

So we have another auction where the CBI removed slightly less than 100 Billion dinar from the economy. Over 60 Million USD. This auction continues a trend were the CBI is removing dinar from the economy at a slightly higher exchange rate. They, like us are attemping to reduce the quanitiy of money at a cheaper rate. (wouldn't you do the same?) their actions remind me of an anology. Like a train leaving the station. This train has started and is moving, but it hasn't left the station. Its still in sight. But like a train, an economy (if managed right and this one is) gathers steam. Until, its moving at full speed. This week will continue to be very interesting short term period as we develop a trend as to what the CBI is doing. Removing currency from the economy is not an unending process. There are finite limitations and those can be obtained in a relatively short period. It is apparent that they have decided, to accomplish this reduction of the quanity of the base money supply in a short period. But there are other factors at play. In an inflationary situation, the rise in Gross National Product (GNP) will absorb excess money in the economy. This is a tactic that the US has used. The economy grows and aborbs excess money and eventually inflation decreases. So with an expanding economy and an apparent reduction in the money supply by the CBI, you have a combination of effective forces that will reduce inflation, demonstrate monetary responsibility, and result in a currency that increases in value. The economic fundamentals are excellent. It will not be long before the strength of the economy, the rise in the value of the dinar will attract the attention of other world banks, international currency trades, and corporations. This week will continue to be very interesting and should be positive for our project.

Iraq's Cabinet Reshuffle To Include Oil Minster

14 November 2006 (Dow Jones)

Iraq's Oil Minister Hussein al-Shahristani is among the 10 cabinet ministers that Iraqi Prime Minister Nouri al-Maliki is intending to reshuffle during the next few days, a close aide to Maliki and an Iraqi lawmaker said Tuesday.

"The Prime Minister will change 10 cabinet ministers and one of them would be Hussein al-Shahristani," the aide told Dow Jones Newswires.

An Iraqi lawmaker Bahaa al-Araji, who is a member of the economic committee at the parliament, told local television that the oil minister is among the 10 ministers that Maliki was intending to change.

It isn't known, however, when Maliki would announce his cabinet reshuffle.

Originally Posted by Jola

here it is:

Originally Posted by Inscrutable View Post
This paragraph always excites me, ya know, the fake rate of 0.310 ID

I would to inform all the stockholders of Baghdad Bank that the report of the managing council 2004 was prepared according to the demands of Central Bank of Iraq to balance US dollar price to 0.310 ID instead of its real value (1460) ID per 1 US dollar, so, the report and general budget do not necessarily reflect the actual situation of Baghdad Bank and the volume of economical incoming indexes, so, this report was issued in order to meet the demands of the rules and instructions.

New Page 1

That's 1/3 dinar to a dollar or over a $3 USD rate.


Post # 481
Page 49

...amd from there on...

oops, neno is moving stuff...messed up the page count

i'm sorry, but is this 0.31 cents to the usd? or as you stated 1/3 dinar to a dollar or over a $3.00 usd rate? i'm not quit sure how to read this!!!! :

Originally Posted by Jola

here it is:

Originally Posted by Inscrutable View Post
This paragraph always excites me, ya know, the fake rate of 0.310 ID

I would to inform all the stockholders of Baghdad Bank that the report of the managing council 2004 was prepared according to the demands of Central Bank of Iraq to balance US dollar price to 0.310 ID instead of its real value (1460) ID per 1 US dollar, so, the report and general budget do not necessarily reflect the actual situation of Baghdad Bank and the volume of economical incoming indexes, so, this report was issued in order to meet the demands of the rules and instructions.

New Page 1

That's 1/3 dinar to a dollar or over a $3 USD rate.


Post # 481
Page 49

...amd from there on...

oops, neno is moving stuff...messed up the page count

Could someone explain what this would mean, I dont know whether i am worried or excited..........

Bank officials to attend key forum

13 November 2006 (Gulf Daily News)

Sixteen high-ranking officials from Central Bank of Iraq (CBI) are to attend five-day training programme on banking supervision in Bahrain, starting tomorrow. The five-day programme is being conducted by the Bahrain Institute of Banking & Finance (BIBF) in co-operation with the International Monetary Fund (IMF) and Federal Reserve Bank of New York (Fed NY) .

The workshop, at the BIBF premises in Juffair, will be conducted by a team of international experts from the IMF and Fed NY.

BIBF was selected to host this important workshop because of Bahrain's excellent reputation as a leading world financial hub and the Institute's ability to provide world-class training and business advisory services, said BIBF deputy director and head of Banking Learning Centre, Hussain Ismail.

For the last two-and-a-half years, the IMF and the Fed NY have co-ordinated their efforts to provide technical assistance to the CBI to help in the reconstruction and development of the Iraqi economy.

A comprehensive initial training curriculum was defined and has been implemented between 2004 and early this year for staff of the CBI's Banking Supervision Department (BSD) and a series of joint workshops were delivered, covering all key banking supervisory issues.

The workshop in Bahrain is the first in a new series of training programmes. It will be focusing on the practical implementation in the field of banking supervision as well as reviewing the actual work and outputs produced by the Iraqi supervisors, in order to give them feedback and guidance on how to improve their scope and their quality, both for off-site and on-site supervision.

"This programme is part of a series of successful workshops, which will further contribute to the training and education process of the Iraqi people," said Mr Ismail.

Another workshop on banking supervision was conducted successfully at the BIBF in June 2004.

Originally Posted by warrior44

i'm sorry, but is this 0.31 cents to the usd? or as you stated 1/3 dinar to a dollar or over a $3.00 usd rate? i'm not quit sure how to read this!!!! :

$ 1 = 0.31 NID then 1 NID = $ 3.22

Hundreds of companies take part in international fair in northern Iraq

Suleimaniah, Iraq, 14 November 2006 (Associated Press)

Hundreds of companies from around the world looking for opportunities in Iraq took part Saturday in an international fair in this city in the relatively peaceful Kurdish north.

The fair, organized by the Iraqi American chamber of commerce, was inaugurated by Nechirvan Barzani, the prime minister of Kurdistan's regional government.

Some 370 companies from around the world including 50 from Germany and 24 from Italy, were taking part in the four-day conference.

Most of the companies specialize in infrastructure and construction, badly need projects that have been held up by unsafe conditions in Iraq and the U.N. sanctions regime before that.

Unlike the rest of Iraq, the three Kurdish provinces in the north are safe and tightly controlled by tens of thousands of local peshmerga militiamen.

The region became essentially autonomous and not under the control of Saddam Hussein after the 1991 Gulf War, when the U.S. imposed a no-fly zone over the region and kept Iraqi forces out. After the fall of his regime in April 2003 the militias secured the area despite some bloody attacks that left hundreds of people killed.

"I am very happy that that this international fair is being held on the land of Kurdistan," Barzani told The Associated Press after officially opening the fair.

"Whoever wants to invest in this region is welcome," Barzani said.

The executive director of the Iraqi American chamber of commerce, Raad Ammar, said the fair was being held for the second consecutive year in Suleimaniah.

"This fair shows that reconstruction conference can be held on our land and not abroad so that all Iraqis come and take part," said Ammar, who is an Arab.

Before 1991 the Baghdad fair that had been held annually starting in 1964 and drew exhibitors from an average of some 50 countries. It was one of the major trade shows in the Arab world.

Since then participation dropped as Iraq suffered under the 13-year crippling economic sanctions imposed in 1990 to punish Saddam for his invasion of Kuwait.

The last major fair to be held in Baghdad took place in 2002 with the participation of large number of foreign companies, including some western firms that came privately rather than under government sponsorship.

After the fall of Saddam Baghdad became too dangerous for foreigners to come and take part in fairs.

Originally Posted by Adster

This is the best part. Dated 13th November....

Iraqi Central Bank announced today that it will be tight monetary policy to address the high rates of inflation, improving the exchange rate of the Iraqi dinar.

Originally Posted by Wm.Knowles

Ref CBI Auction.

So we have another auction where the CBI removed slightly less than 100 Billion dinar from the economy. Over 60 Million USD. This auction continues a trend were the CBI is removing dinar from the economy at a slightly higher exchange rate. They, like us are attemping to reduce the quanitiy of money at a cheaper rate. (wouldn't you do the same?) their actions remind me of an anology. Like a train leaving the station. This train has started and is moving, but it hasn't left the station. Its still in sight. But like a train, an economy (if managed right and this one is) gathers steam. Until, its moving at full speed. This week will continue to be very interesting short term period as we develop a trend as to what the CBI is doing. Removing currency from the economy is not an unending process. There are finite limitations and those can be obtained in a relatively short period. It is apparent that they have decided, to accomplish this reduction of the quanity of the base money supply in a short period. But there are other factors at play. In an inflationary situation, the rise in Gross National Product (GNP) will absorb excess money in the economy. This is a tactic that the US has used. The economy grows and aborbs excess money and eventually inflation decreases. So with an expanding economy and an apparent reduction in the money supply by the CBI, you have a combination of effective forces that will reduce inflation, demonstrate monetary responsibility, and result in a currency that increases in value. The economic fundamentals are excellent. It will not be long before the strength of the economy, the rise in the value of the dinar will attract the attention of other world banks, international currency trades, and corporations. This week will continue to be very interesting and should be positive for our project.

But please keep posting like this.

Originally Posted by njd2004

The CBI has not given an indication of time scale, and the statement clearly said "raise" not "revalue". Of course they could mean the same thing, but equally they may not. As we have seen recently, they have been "raising" the Dinar value as a consequence of the auction activities, and may just continue along this path for a while.

Also, could someone please explain the relationship between 1460 & .31IQD, and the excitement surrounding it?

Regards to all
Neil

CBI must R/V ASAP becouse of the massive speculation todays press release will call on.

As for the relationship between 1460 & .31IQD

1. At todays rate you have to pay 1460 IQD for 1US$
2. After R/V you will pay 0.31 IQD for 1 US$

This meaning if you have 1.000.000 dinars todays value vould be a measly US$ 684,93
Now if you take the same 1.000.000 dinars to the bank after the R/V you have a wooootie US$ 3.225.806,45

Now that's worth some exitement. Don't you think?

Please know that we do not know yet, if the R/V will be at US$ 3,22 to the Dinar!!!!

But wee sure are hoping. Ain't we?