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

ref CBI auction today

The 805 daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 11/ 14 so the results were as follows :

Details Notes
Number of banks 15 -----
Auction price selling dinar / US $ 1460 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 62.540.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 62.540.000 -----
Total offers for selling (US $) ------ -----

Could be the slow steady rise in the dinar I have been predicting. Down 5 over night. I think they might be trying to raise the rate internally until everything is enacted HCL etc. I think we are on our way just not like some thought. This way no new demos will be needed until down the road. Then they could bring them in one at a time as needed. $10, $5 etc. That might be the reason we have not seen them yet. And this will give them time to get some of the 9 trillion of dinar out of circulation. It all fits but I bet I am dead wrong. Just like everybody else in this Dinar thing?

I'm sorry if this has been posted before.



Speech by
H. E. Nechirvan Barzani
Prime Minister, Kurdistan Regional Government
11 November 2006

Participants, distinguished guests. Good morning and welcome all to this event, the second international trade show, in the City of Suleimaniah on the reconstruction of Iraq.

My thanks to the sponsors and organizers for providing this opportunity and for making elaborate arrangements for so many participants to attend who have made the effort to join us here today. I wish you all success.

Many of you have heard me say it: “Kurdistan is open for business”. This trade show is further evidence of this fact. The entire Kurdistan Region is ready for business and the Kurdistan Regional Government (KRG) will do its best to be supportive.

Today, all over the Kurdistan Region we see evidence of economic growth and development. Every enterprise offers new products and services, and new work opportunities. All of these endeavors help improve the living conditions of our people.

We know very well that we have only just begun and that we have a long way to go. We have much work ahead of us, and we expect to face many obstacles as we simultaneously learn and act to serve the needs and aspirations of our people.

Our regional government continues to actively improve basic services that have been neglected for decades. The support and patience of our people are the keys to success at this early stage in taking appropriate steps to solve our problems.

No political entity, no matter how strong, can face the challenges of today’s world without having a strong economy. The existence of a stable political system, a secure and peaceful environment, and a legal framework to develop policies, programmes, and projects are all critically important for economic growth.

We are pleased that the political situation in the Kurdistan Region improves day by day, and the security situation is becoming more stable. The participation in this trade fair of more than 300 companies, domestic and foreign, from more than 30 countries is further evidence of this.

The KRG is committed to the Constitution that the majority of people in Iraq voted for. Our endeavors have been, and will remain, within the framework of our constitutional rights.

The Kurdistan Region is a safe, secure, and stable part of Iraq. It is your gateway to the greater Iraqi market. This trade fair is one of many illustrations of this fact. Suleimaniah, Duhok, Erbil and all the cities and townships of the Kurdistan Region are ready to welcome you to establish and develop your enterprises.

Here I would like to thank the Suleimaniah Chamber of Commerce, the Governor of Suleimaniah, the Iraqi-American Chamber of Commerce, and all those who have been helpful in making this trade show a success. I also take this opportunity to emphasize that the KRG welcomes the private sector – its investors and entrepreneurs - and offers all its capabilities so that they can participate successfully in the reconstruction of our country.

With the unification of two administrations, the KRG has come together with the spirit of one team to enact the Kurdistan Investment Law, which is progressive and attractive to investors. This law has authorized the establishment of the Kurdistan Investment Board to support those who wish to participate in the reconstruction of our country.

Here I would like to direct my speech towards the businessmen, investors, and business community here in our country. We want to strengthen our economy. We want to establish a proper industrial base in our country. We need your participation to help reconstruct the Kurdistan Region. We have to try together to solve our problems. We especially want to provide more work opportunities for our youth and unemployed people.

This trade fair is yet another opportunity to convey the message of the Kurdistan Region. We are serious about our policy and our position. We want serious partners to work with. We believe in equal opportunities for everybody. The KRG itself is a reflection of the social composition of the Kurdistan Region.

Having this trade fair in the beloved City of Suleimaniah offers new opportunities for those who are serious about working with us. We are optimistic about the future of our people. While it is true that we are at a delicate stage, we shall pursue our future in accordance with the law and in full consideration of our constitutional rights.

This trade fair in Suleimaniah is an opportunity to introduce foreign, national and local companies to each other. There are many areas for teams of experts to study fully and to make recommendations. We very much look forward to new and proven technologies, successful experience and professional expertise to rapidly advance our economic growth and development.

We support and encourage joint projects in the form of joint venture activities. We know this fact very well: not only the Kurdistan market is connected within itself, but the whole Iraqi market is tied together.

Kurdistan's society feels proud of its culture and its attitudes regarding tolerance, coexistence and acceptance of each other, and this is a feature of our success. We in Kurdistan, whether Turkoman, Chaldean, Assyrian, Kurd, or Arab, regardless of our ethnic or religious background, we are all working together to rebuild our country.

In the past, with all its resources, Iraq in general, and the Kurdistan Region in particular, has not seen the progress that was possible because of the distorted policies of the Ba'ath regime. We all have to try to compensate for the oppression, injustices and deprivations that our people have suffered in the past.

Rebuilding and reconstruction and modernizing are difficult tasks. They need time, capabilities, financial resources, dedication and patience. Therefore, here I will stress to investors that this trade fair today is the proper opportunity to enter the market of the Kurdistan Region and to work shoulder to shoulder with us in the tasks ahead. Your participation shows your commitment, especially when the exhibition is about the reconstruction of Iraq.

The KRG has at this stage identified the main priorities. We want to place great attention on the importance of the industrial sector and the establishment of an industrial base in the Region.

We want to become producers again as we once were, but with modern production methods to meet our needs and to provide opportunities to increase our people's income. We want to upgrade the level of services. We want to improve the living conditions of our people. We have expansive underutilized lands and we need to pay more attention to the agricultural sector in meeting our food requirements, expanding job opportunities through agro-business, and increasing incomes.

This can be achieved with policies that will direct us to a state of self-sufficiency, food security and the renovation of the economic infrastructure of the country. The peace, stability and security that prevail in the Kurdistan Region will make our task less difficult, so that we all start to work together. But we have a lot of challenges and obstacles ahead of us. While it is true that we have made decisions to pursue a secure, stable, and progressive future that our people deserve, the time available to us is not unlimited.

Iraq is a rich country. It has abundant natural and human resources. Today, Suleimaniah welcomes you, offering you business and investment opportunities. It is my pleasure to see this outstanding participation from foreign countries. I wish to thank the embassies, consulates, and chambers of commerce for their hard work in organizing this exhibition.

Now you are here, your partners from the Kurdistan Region and Iraq are participating with you in this trade fair. You have the chance to see for yourself, through your own eyes, the opportunities available.

We want all of Iraq to be reconstructed within the framework of a democratic and federal system, within the framework of the new Constitution of Iraq, to establish a modern economic system. We believe that business language is the best language in today's world to bring people closer to each other. We are confident that this kind of attitude would lead to stability, peace, and security throughout Iraq and all over the world.

I am pleased to see that the private sector of Kurdistan and Iraq is about to step forward and participate wholeheartedly in the rebuilding of our country. I have said in the past that without the enthusiastic and successful involvement of the private sector we cannot succeed. We have great hopes in you, in the private sector, in investors, domestic and foreign, offering your capital and devoting your efforts so that we reconstruct our country.

Finally, I am pleased and privileged to meet with you here in beloved Suleimaniah, the city of innovation and sacrifice. Once again, thank you. I wish you all success.

Ref CBI auction today:
So far we have been discussing a reduction in the money supply based on the behavior of the CBI in the last few days. However, reduction is too simplistic of a term to adequately describe what is happening. Most think of increases and decreases, this should be thought of in terms of expansion and contraction. What you are seeing is a contraction of the money supply. This takes into account the movement of money within an economy. Money has to thought of in terms of its multiple effects. Not simply in terms on addition and subtraction. Money in the US is thought to move in a multiple way as low as 5 times and as high as 9. So you are paid, you buy food, the store pays employees, they buy gas, so on and so on. Therefore, contraction and expansion are much more useful in understanding what you are seeing today. If the CBI is approaching removing 1000 Billion (Is this one Trillion?) from the base money supply, then the multiple effects are much more d*****ic than to simply say they "removed" this amount. What is interesting is they seem to be doing this in a short period of time in a dramatic (if not panic) attempt to accomplish this contraction in a short period of time. (Bet you wish you didn't skip all of those economic classes now). This is a positive series of events for us. It will be viewed as responsible monetary policy and suggests they are using their currency reserves and oil money to stablize their monetary base. The question was asked, "Do you think this will result in a higher eventual RV? The answer is a big YES! Although I hesitate to predict when and how much. My point is that what you are viewing is highly effective and responsible money management of the part of the CBI and that we are all in good hands. Please use or post any thing I have written in any way you might think would be helful to someone else. Thank you.

Korean cars for Iraq less 30% of price

http://www.iraqdirectory.com/DisplayNews.aspx?id=2565

DNO sees bigger Iraq oil discovery

http://www.iraqdirectory.com/DisplayNews.aspx?id=2564

Central Bank to adopt new policy to end inflations' rates

http://www.iraqdirectory.com/DisplayNews.aspx?id=2566

U.S. Commercial Service opens Iraq for business

http://www.iraqdirectory.com/DisplayNews.aspx?id=2560

Mr. Knowles,

All of our speculation with the current news is in no way comparison to your knowledge of how the economics of this revalue is taking place. Although the news is certainly important because it gives us insight to all the changes taking place in Iraq, it is also important to understand HOW this will be done. With your expertise, you have shown us that the CBI knows just what they're doing and that there are steps they must take to accomplish their difficult task at hand.

Thank you so much for being a part of this forum to share your wisdom and expertise.

Originally Posted by Adster

No, this is new, here's another one!

http://64.233.179.104/translate_c?h...26DSNO%3D921832

البنك المركزي العراقي يعلن انه سيعتمد سياسة نقدية مشددة لمعالجة ارتفاع التضخمThe Iraqi Central Bank announced that it will be tight monetary policy to deal with high inflation

اقتصاد/عراق/مركزي/تضخمEconomy / Iraq / central / inflation
البنك المركزي العراقي يعلن انه سيعتمد سياسة نقدية مشددة لمعالجة ارتفاعThe Iraqi Central Bank announced that it will be tight monetary policy to deal with high

التضخم بغداد - 13 - 11 (كونا) -- اعلن البنك المركزي العراقي اليوم انه سيعتمد سياسة نقدية مشددة لمعالجة ارتفاع معدلات التضخم منها تحسين سعر صرف الدينار العراقي.Inflation Baghdad-11 - 13 (KUNA) -- 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.
وذكر بيان حكومي "ان مشكلة التضخم في العراق سببها اختناقات العرض في قطاع تجهيز الوقود وانعكاساته السلبية على تكاليف النقل و المواصلات و التكاليف الانتاجية الأخرى فضلا عن التأثير الكبير للطلب الكلي على السلع و الخدمات في الاقتصاد".The government statement said that "inflation problem in Iraq caused supply bottlenecks in the fuel processing sector and the negative impact on costs of transport and communications and other production costs, as well as the significant impact of aggregate demand for goods and services in the economy."

واضاف " لقد بلغت المعدلات السنوية للتضخم مستويات مرتفعة تجاوزت 50 بالمائة بالرغم من التطورات الايجابيه التي أظهرها الرقم القياسي لأسعار المستهلك ( كمؤشر للتضخم) خلال شهر سبتمبر الماضي والتي تمثلت بانخفاض نسبته 13 بالمائة الا ان معدل التضخم الأساس والذي يمثل تأثيرات من جانب الطلب الكلي ع لى السلع والخدمات في الاقتصاد العراقي ما زال مرتفعا و بمستوى لا يقل عن 33 بالمائة".He added : "We have reached the annual rates of inflation high levels exceeded 50% in spite of positive developments shown by the index of consumer prices (an indicator of inflation) during the month of September, which represented a decline of 13% but the inflation rate basis, which represents the effects of aggregate demand p I goods and services in the Iraqi economy is still high, a level not less than 33%. "

واشار الى ان البنك المركزى وجد وبعد تحليل معمق ان أسباب (التضخم الاساس) تعود الى " عدم تناسب سعر صرف الدينار العراقي الاسمي مع مستواه الحقيقي الذى يعبر عن القدرات المتحققة للاقتصاد العراقي وتدفقات العملة الاجنبية والمتمثلة بايرادات النفط ونفقات القوات المتعددة الجنسيات والتي يجري تغطي ة مصروفاتها الداخلية بالعملة الاجنبية فضلا عن تدفق مساعدات خارجية مختلفة مازالت تصرف في السوق المحلية وبالعملة الأجنبية".He pointed out that the Central Bank found after thorough analysis that the reasons (inflation basis) due to "non-suit the Iraqi dinar exchange rate with the nominal level, which reflects the real capacity of the Iraqi economy achieved and foreign currency inflows of oil revenues and expenses of the multinational forces, which are covered e internal expenses in foreign currency as well as the flow of foreign aid is different still available in the local market and foreign currency. "

وتابع أن هذه العوامل ساعدت على اتساع ظاهرة التعامل بالدولار ( الدولرة ) والتي هي خارج تأثير السياسة النقدية كما ان اتجاهاتها تؤثر سلبا في استقرار الطلب النقدي ومسار عمل السياسة النقدية ودورها في استقرار السوق المالية والدينار العراقي.He went on to say that these factors have helped to widening phenomenon of dealing in dollars (Dollar), which are outside the influence of monetary policy and the trends adversely affect the stability of the monetary demand and monetary policy course of action and its role in the stability of the financial market and the Iraqi dinar.

واوضح ان البنك المركزي العراقي سيقوم باعتماد سياسة نقدية متشددة بهذا الشأن ترمي الى خفض التضخم الأساس من خلال تحسين سعر صرف الدينار العراقي ورفع قوته الشرائية وجعل الدينار العراقي الوسيلة النقدية الأكثر جاذبية بما يعكس الظروف والمؤشرات المشجعة في الاقتصاد الأمر الذى يساعد في التصدى لظا هرة "الدولرة" والتي تعد واحدة من العوامل غير المرغوبة في عمل السياسة النقدية ومستوى فاعليتها لبلوغ أهدافها في خفض التضخم .He explained that the Central Bank of Iraq will adopt a tight monetary policy in this regard is aimed at reducing the inflation base through improved exchange rate of the Iraqi dinar and raise the purchasing power of the Iraqi dinar and make cash more attractive means to reflect the circumstances and encouraging indicators in the economy which would help in addressing Liza cat "dollarization", which is one of the factors that are desired in the work of monetary policy and the level of effectiveness to achieve their goals in reducing inflation. فضلا عن ذلك فان البنك المركزي سيتبنى معدلات فائدة تساعد على تنويع السوق المالية بأدوات دين متدرجة بآجالها تمكن في الوقت نفسه من زيادة مستويات الادخار والسيطرة على مناسيب السيولة النقدية.Furthermore, the Central Bank will adopt interest rates help to diversify financial market tools religion gradually terms at the same time enabling increased levels of savings and control the levels of cash.

(النهاية)(End)

You know there is only one way to beat dollarization and that is to have a currency equal to or greater in value period. The dinar must be the currency of choice in Iraq and it can only happen when value is returned to it. this is IMO exactly what the CBI intends to do.