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

Originally Posted by Wm.Knowles

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.

I plead guilty, but to be honest I never understood what they were talking about. I guess that is why I am a social worker. BNut I love the way you talk. Anyway keep up the good work. Would you like to go to Cayman's too??? lol

Originally Posted by kiko

Iraq Aiming for three million barrels of oil per day by end 2006
14 November 2006 (Monday Morning)

Iraqi Oil Minister Hussein al-Shahristani, who has painted an optimistic picture of rapid expansion and modernization of the oil sector thanks to investment from foreign partners

Iraq hopes to be producing three million barrels of oil per day (BPD) by the end of the year and a massive 4.5 million by 2010, Oil Minister Hussein al-Shahristani has said.

The minister told reporters that Iraq had produced an average of 2.3 million BPD in October and had exported between 1.6 and 1.7 million daily despite insurgent attacks on pipelines “at least two to three times a week”.

More than three years after the fall of Saddam Hussein and the end of United Nations sanctions, Iraq is still struggling to develop its key oil sector amid sectarian war and a rebellion against the US-backed government.

Iraq Aiming for three million barrels of oil per day by end 2006 | Iraq Updates

But Iraq has 112 billion barrels of proven reserves -- the second highest level in the world -- and Shahristani painted an optimistic picture of rapid expansion and modernization thanks to investment from foreign partners.

The minister said he had recently returned from a tour of Asian countries and had returned with an agreement from the China National Petroleum Corporation (CNPC) to take over the Al-Ahdab field in Southern Iraq.

“A joint Iraqi-Chinese committee is to hold series of meetings, the first of which shall be on November 11 in Baghdad to start talks over how to develop the oil field”, Shahristani said.

CNPC first agreed to develop the field in 1997, but Iraq’s contracts have had to be reviewed since the American invasion swept away the former regime. Now, the firm hopes to produce 90,000 BPD there.
Shahristani also said that during his visit to Japan, the government promised to give a soft loan of 3.5 billion dollars to help Iraq build a refinery and a floating loading platform in the southern city of Basra.

Ok guys, let's analyse this.

The rates of producing the Iraqi crude oil have been increased to 2.8MBD, we were told this about a month ago. Now they're hoping to increase output to 3 million barrels per day by the end of the year.

We also read recently that in 2002 the Kuwait dollar was $3.39 to the KD and they were only pushing out 1.89 MBD.

Basically, dinar holders are sitting on a gold mine. More oil exported, the higher the reval and eventual value, more dinars pulled out now by the CBI, again, the higher our initial reval.

What can we get out of this? Well, once the CBI has total control over the dinar we will see a reval. Have they already got that? We don't know for sure, we know they are being 'shadowed/supervised', kinda like an insolvency officer watches over a bankrupt company/person. So, can they revalue now? Yes, without a doubt, although they may wait until the IAMB is signed on 12th December, we'll see.

Judging by the auctions and yesterdays CBI article, I'm not convinced they will wait another 4 weeks to reval........

U.S. Commercial Service opens Iraq for business
14/11/2006

It’s dangerous and deadly.

But American firms wanting to sell their wares in war-torn Iraq need to talk to Andrew Wylegala, the commercial counselor of the U.S. Commercial Service operating at the U.S. Embassy in Baghdad.

“Security in Iraq is a significant cost item that must be budgeted into business plans,” Wylegala said.

It’s his job to connect U.S. business interests that have goods and services in desperate need during the rebuilding of Iraq.

Increasingly, that connection is being made during events like the Kurdistan DBX International Trade Show that is under way in the Iraqi city of Suleimaniya.

While some large U.S. companies such as Ford Motor Co., General Motors and Federal Express have dealers and agents already in the country who will attend, smaller firms pay Commercial Services to “pound the pavement for them,” Wylegala said in an e-mail interview from his office in Baghdad.

“We use our booth to display the catalogs and staff meetings with local companies looking to purchase or represent” the U.S. business, he said. “There are a lot of ways to cash in on a trade show in Iraq.”

The benefits of the trade shows, he said, “are potentially vast,” while the danger is “very real.”

“A participant in one of these shows learns a tremendous amount about the market, gets exposure and encounters future partners of customers,” Wylegala said. “Iraq is a big country that had a substantial industrial base and that is blessed with enormous resources extending well beyond hydrocarbons.”

So what type of goods and services are needed?

“Tractors, irrigation and water treatment equipment, telecom switches, Kinko’s, high-speed ferries, airport passenger bridges, Game Boy and TiVo, cold-storage facilities, patented medicines, date packaging machines, brick, glass and aluminum factories, rental car franchises, pumps, oil and gas field services and equipment, IKEA, Wal-Mart and Household Finance,” he said.

While it is not currently possible for a U.S. company to open an office in Baghdad — “at least not an overtly American or western business,” Wylegala said — but a well-planned facility is possible in some parts of Iraq and in neighboring Jordan, Turkey, Kuwait or the United Arab Emirates.

“The prudent company committed to maintaining a presence in Iraq must begin with concerns over threats to its personnel and local partners and, importantly, even to suppliers and customers,” he said.

“Crime may rival terrorism as a challenge in some locales and times. Threats to cargo and physical plants are another peril. Official corruption may open the door to legal liabilities, such as under our Foreign Corrupt Practices Act. But against many of these perils, companies weigh the commercial peril of missed opportunity.”

Rebuilding Iraq

The U.S. Department of Commerce’s Iraq Investment and Reconstruction Task Force works closely with the U.S. Embassy in Baghdad, other U.S. government agencies and international organizations to provide U.S. businesses with the most up-to-date information on the commercial environment and potential business opportunities in Iraq

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

Trade Bank of Iraq. TBI Updated: 11/14/2006 5:42:16 AM

Still showing rates from yesterday: Buy 1464.268 and sell 1465.000
Trade Bank of Iraq - Your Trade and Investment Partner in Iraq

Could this mean that the new rate are only for CBI buying?

FROM THE OFFICE OF PUBLIC AFFAIRS
November 13, 2006
HP-162

Treasury Deputy Secretary Kimmitt to Attend G20 in Australia

Washington, D.C. – Deputy Secretary Robert M. Kimmitt will lead the U.S. Treasury delegation at the meeting of the G20 Finance Ministers and Central Bank Governors this week in Australia, Nov. 17-19.

Among other topics, the Deputy Secretary will discuss the importance of continuing efforts to reform the IMF with his colleagues. “Following the important step agreed to in Singapore to better reflect the rapid growth of certain emerging markets at the Fund, we must continue with the crucial work ahead of us to ensure that the IMF represents the face of today's global economy,” said Deputy Secretary Kimmitt.

Background on the G20

The G20 Finance Ministers and Central Bank Governors forum was established in 1999 to bring together major industrialized and developing economies to discuss key issues in the global economy.
The members of the G20 are the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the U.K. and the U.S., as well as the European Union, represented by the rotating council presidency and the European Central Bank.

NOW I WOULD REALLY LIKE TO BE A FLY ON THE WALL AT THIS MEETING!!!!

DNO sees bigger Iraq oil discovery
14/11/2006

Norway's DNO, the first foreign oil firm to drill in Iraq after the invasion, said its oil discovery in north Iraq is bigger than expected and confirmed production would begin in early 2007.

Shares in DNO jumped by as much as 5.6 per cent in early trade as investors cheered plans to launch production in the first quarter of 2007 despite Iraq's sectarian violence and uncertainties over rights to tap its oil riches.

DNO said the Tawke 2 well in Kurdish-controlled northern Iraq has tested 3,840 barrels of oil per day, confirming a western extension of its Tawke oil discovery.

'Preliminary results from the well indicate increased reserves,' DNO said in a statement.

DNO chief executive Helge Eide said the company would start production at two of its three wells in the Tawke discovery.

'We are now (planning to) start two of the three wells, so it (daily production) would not be far from 10,000 barrels, but we will not say anything exact now,' Eide said.

DNO also said it was in a process of finalising an agreement with the Kurdistan Regional Government to increase its working interest in the production sharing agreement by 15 percentage points to 55 per cent.

In return for the bigger stake, DNO would provide all of the funding of the project costs, the company said.

DNO, whose main production operations are in Yemen, has a market capitalisation of around $1.8 billion.

'The results from Tawke 2 are very encouraging and confirm the robustness of the Tawke development,' Eide said in a statement.

'We are on schedule to achieve our important near term target to produce the first oil from Tawke during the first quarter of next year,' he said.

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

Originally Posted by owejac

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?

Brilliant Point.

CBI has just let the cat out of the bag. I don't think the CBI realized the effect of this info.could have on demand and speculation. Who would't buy now?

Thanks

FistFull of Dollars and Stocks

Central Bank to adopt new policy to end inflations rates
14/11/2006

An official source at the Central Bank of Iraq said: the inflation in Iraqi economy which negatively effected with the security circumstances is resulting due to the show congestion in the real sector which concentrating in supplying fuel and its negative reflections on transport and communications' charges, while the other reason is belonging to the large effect for the total demand on commodities and services in economy.

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

BAGHDAD - Omar Abdel-Latif
انعقد امس في مقر الامم المتحدة بنيويورك اجتماع المجموعة التحضيرية لعهد العراق الدولي بمشاركة وفد رفيع المستوى من الحكومة العراقية والممثلية العامة للامم المتحدة وبمساندة من البنك الدولي.Held yesterday at the United Nations headquarters in New York meeting of the preparations for the Iraq involvement of the international high-level delegation from the Iraqi government and the mission of the United Nations and with the backing of the World Bank.




ونقل بيان صحفي صادر عن مكتب العلاقات والاعلام في وزارة التخطيط والتعاون الانمائي حصلت”الصباح “ على نسخة منه عن الوزير علي غالب بابان قوله قبيل مغادرته البلاد للمشاركة ضمن جلسات الاجتماع ان الهدف من هذا التجمع اعادة العراق الى مكانته الطبيعية في المجتمع الدولي وخلق ديناميكية راسخة في توحي د الآراء من خلال اكمال الرؤية الوطنية حول البرنامج السياسي للحكومة واعادة الثقة للشعب بقدرة حكومته على حمايتهم وتوفير الاحتياجات الاساسية لهم.Transfer press statement issued by the Information and Public Relations Office in the Ministry of Planning and Development Cooperation obtained "morning", a copy of the minister on Ghalib Baban saying before leaving the country to participate in the meeting that the aim of this gathering returning Iraq to its natural position in the international community and create a dynamic firm in suggesting d views through the completion of the national vision on the government's political program and restore the confidence of the people of the ability of government to protect them and provide them with basic needs.
وأضاف بأن العقد سيؤسس ركيزة عمل للالتزام المتبادل سياسيا وضرورة الاستمرار في مجال تطوير الاقتصاد من خلال الدعم المادي والسياسي والفني ليكونوا بمستوى التحديات.He added that the contract will build the foundation work of mutual commitment and the political need to continue in the development of the economy through the material and political support and technical level to be challenges.
http://www.google.com/translate?u=h...n&hl=en&ie=UTF8

[Edited, Adster, this is not the forum for this mate. Please kindly repost this post in our money exchange forum.admin}