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

Frank Rizzo wrote:Thanks for all the useful info... you really explained it so I have a better grasp of this whole thing.
I just have a quick question... At this current pace, would you care to take a wild guess as to when this could go big? And also, wouldn't this recent CBI article that's in all the news recently throw a monkeywrench into their whole idea of gradually RV'ing the dinar? i.e-All the new speculation that is bound to happen?

Frank, when was gradually RVing the dinar ever a plan and by whom ? The CBI?
I always thought that idea came from the "grow slow crowd" on another forum. At any rate that idea is certainly out the window now!

Another Positive Sign The Preparatory Meeting of the International in New York

" Held yesterday at the United Nation's 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."

" Transfer press statement issued by the Information and Public Relation's 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 views through the completion of the national vision on the government to protect them and provide them with basic needs."

" 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."

(entire article from Al Sabaah News)

NO selling of dinar in this or any threads in the iraqi forum please. If this has to be done, kindly do post it ONLY in our money exchange forum.
admin

Originally Posted by owejac

The lowest rate was 1350 at January 15-2004.

Sorry SGS but I found it on the CBI site. Here are the link.(History Exhange Rates)

http://www.cbiraq.org/C.B.I.%20FOREI...20AUCTIONS.pdf

Yes, that's when I made my first purchase.

Originally Posted by Admin

NO selling of dinar in this or any threads in the iraqi forum please. If this has to be done, kindly do post it ONLY in our money exchange forum.
admin

I must have missed the post where someone was trying to sell Dinar.

They must be mad..........

Originally Posted by owejac

If it r/v at $3 or it r/v 31 cent. we would anyhow make a ****load of money, won't we?

Yeah, is the glass half empty, or half full. You decide!

Originally Posted by Dinar Duchess

Did i read somewhere about the rate being brought up with those exchange rates of the surrounding states........

It's been stated that an exchange rate close to neighboring countries is a good thing for a number of reasons. Whether it will happen or not, i don't want to guess... ok, i'd guess yes but you know why that is!

Anyhow, here are the exchange rate for the 6 members of the GCC.
BTW, this info is courtesy of a post in another forum.

Gulf Cooperation Council, Iraqs neigbors

Bahrain Bhd/usd 2.656
Kuwait kwd/usd 3.475
Oman omr/usd 2.605
Qatar qar/usd .27
S. Arabia sar/usd .27
UAE aed/usd .27


These countries are moving towards a unified currency by 2010, Iraq will be out producing them all at 6 m/p/d by 2010, jmo

To continue with some GCC news from 2 weeks ago... and it states that their exchange rates are under-valued.

ITPBusiness.net {News: Pressure mounts on exchange rates}

Pressure mounts on exchange rates
Soaring oil revenues are putting pressure on the dollar-pegged exchange rates in the Gulf, since the green buck is expected to continue to decline, and most GCC trades are denominated in other currencies.

Around half of imports in the region are priced in euros, but gulf oil exports are traditionally traded in the US dollar.

According to the Dubai Chamber of Commerce, the Saudi riyal is undervalued by as much as 33% relative to the dollar. The UAE suffers the least from all GCC currencies, with the dirham being undervalued by 12%.

Stephane Garelli, Professor at the Institute for Management Development (IMD) at the University of Lausanne, said at the business leaders in Abu Dhabi summit last week, “The dollar will continue to depreciate, and this will cause problems for countries like the UAE.”

“The dollar, which had a 0.9 exchange rate against the euro in 2002, and now 1.27 in 2006, will continue to fall, and this poses a serious problem for countries or corporations that manufacture or import in euros and sell in dollars,” Garelli said.

All GCC countries are pegged to the dollar, and when they form a monetary union in 2010 they are planning to keep the peg.

“Pegging the exchange rate to the dollar has one effect, but the consequent interest rate peg has a different impact,” said Andre Sayegh, CEO, First Gulf Bank.

Sayegh said targeting inflation could also be carried out through other means such as fiscal as well as monetary measures.

Since a week dollar tends to increase inflation due to the trading in goods of different currencies analysts say a revaluation would be necessary - besides international authorities calling for greater exchange rate flexibility in order to reduce global imbalances.

Revaluation however can only happen when all GCC member states coordinate among each other. Also, many goods within the gulf are traded in dollar and would then be pricier.

“Most Saudi assets are in dollars and if they revaluate they will take a loss on that. It’s not something they will do lightly," said Richard Fox, credit analyst at Fitch Ratings in London.

Last week the riyal was foreseen to be revalued over the Eid holiday, but analysts say that politics as well as economics made such as move unlikely.

The Saudi riyal was traded at a record peak up to 3.7420 per dollar- its highest since last May when investors first believed that Saudi Arabia would revalue its currency along with the Kuwaiti dinar, a more flexible currency than the Saudi riyal, that was then allowed to appreciate against the dollar.

All Gulf markets were closed for the Eid Al Fitr holidays for most of last week – with all dealings in currencies being offshore and traders said thin liquidity was exaggerating moves.

The move was just 0.16% but is significant for the riyal, which is closely pegged to the dollar at 3.75. Economists now say that, if it firms beyond 3.75 without a response form the central bank, speculation about a revaluation may heat up.

“The riyal moves are being caused by the rumours of revaluation. There was a liquidity squeeze in the market that made the riyal spot move well under 3.75,” said Koceila Maames, Middle East and North Africa economist at Calyon Paris. “From an economic point it does not really make sense, but you can’t rule it out as political gesture – as a gift to the population for Eid.”

“Some dealers are heard touting a move up to 15%," he added.

According to the annual report of the International Monetary Fund (IMF), in its first assessment of the Saudi economy following its World Trade Organisation (WTO) membership last year, the Saudi riyal appreciated by 3.4% in real effective terms during the 12-month period through March 2006, reflecting the movement of the US dollar against other major currencies.

Sorry, i know this isn't Dinar news and feel free to move if needed Neno.

This CBI article is now listed under press releases on the Iraq Government site

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So how long can they leave it, they've told the world about increasing the value.....

Doesn't get any more official than that!

Isn't it funny how the 10k handout was SUPPOSED to go out Sunday and yet we've heard nothing. And now, the CBI is frantically buying dinar (for what I might ask). It sounds like the scenerio that was described by our very own insider WM Knowles. It's beginning to look alot like Christmas ( hopefully early).

WASHINGTON, 14 November 2006 (Associated Press)

Bitterly divided on Iraq, lawmakers in both parties are eagerly awaiting recommendations from an advisory group led by Republican and Bush family friend James A. Baker III and former Democratic Rep. Lee Hamilton.

But even if the bipartisan Iraq Study Group is able to forge a consensus on how to deal with Iraq — a prospect that remains unclear — the panel is unlikely to offer a solution so groundbreaking it will stave off a brewing partisan feud.

Sen. Carl Levin ,D-Mich., who is in line to be the chairman next year of the Senate Armed Services Committee, said Monday the Bush administration didn't see that "we're getting deeper and deeper into a hole" in Iraq.

Two options under discussion at one point by the study group — greater cooperation with Iran and Syria, and a phased withdrawal of U.S. troops — would require a major policy shift by the Bush administration.

Republicans oppose setting any type of timetable for withdrawal from Iraq, and the United States has no diplomatic ties with Iran.

The Iraq study panel, established by Congress in March, is not expected to unveil its findings until some time after Thanksgiving, if at all. According to a Democratic aide, Baker told a senator he won't issue any plan unless the group finds consensus.

That would be a tall order for a panel comprising five Democrats and five Republicans, each prominent members in their political camps and holding their own ideas on how Iraq should be settled.

Yet Baker's group has become the beacon of hope for lawmakers who want to resolve the Iraq war before the 2008 presidential elections. Polls of voters in last week's midterm elections, which returned Democrats to power in the next Congress, found a majority — about six in 10 — disapproved of the war in Iraq. Two-thirds of independent voters said they disapproved of the war.

The panel's 10 members planned to speak with British Prime Minister Tony Blair on Tuesday by teleconference from the White House.

Later Tuesday, the study group was to meet at the Woodrow Wilson International Center for Scholars in Washington with foreign policy advisers from the Clinton administration, including Sandy Berger, Clinton's national security adviser; Richard Holbrooke, former ambassador to the U.N.; and Warren Christopher, former secretary of state.

On Monday, Blair said Iran and Syria's aid should be solicited to help stem the violence in Iraq. Resolving the Israeli-Palestinian conflict and stabilizing Lebanon also would help to unite the region behind peace, he said.

Bush's chief of staff, Josh Bolten, said the White House would consider opening talks with Syria and Iran if Baker and Hamilton recommended it.

Baker's group also has been briefed by Democrats on their plan to begin pulling out some troops right away. Levin and other Democrats agree this is a necessary first step to put political pressure on the Iraqis.

Aside from that initial step, Democrats remain divided on what should happen next, how many troops should leave and how many should stay.

Several Republicans staunchly oppose setting any timetable because they say Iraq could collapse into chaos. Sen. Lindsey Graham ,R-S.C., said shortly before the Nov. 7 elections that the Bush administration had led Iraq to the verge of chaos. On Monday, Graham reiterated his position that more troops, not fewer troops, are needed to settle the violence there.

"That should be our goal in the coming months, to provide a better security situation on the ground," Graham said, echoing a comment by Bush.

"I believe it is very important ... for people making suggestions to recognize that the best military options depend upon the conditions on the ground," the president said.

Sens. John Warner, R-Va., who is chairman of the Armed Services Committee, and Sen. Susan Collins,R-Maine, also warned against any timetable.

The White House and Pentagon in recent days have focused on whether a fresh approach in Iraq could stem the violence there. Bush announced last week he would replace Defense Secretary Donald H. Rumsfeld with Robert Gates, who led the CIA in the first Bush administration, and the Pentagon's top uniformed leadership are leading an internal assessment on options in Iraq.

Secretary of State Condoleezza Rice this week delayed her departure for Asia to attend meetings on Iraq on Monday and Tuesday at the White House and at the State Department.

But despite the full-court press being waged by the administration and Baker's group, any recommendations that surface are unlikely to solve Iraq's volatile security situation immediately or forge an easy bipartisan consensus in Congress.

According to the foreign policy and military experts advising Baker's panel, the final plan will probably back one or several options already being debated. And, they say, the proposal will come with substantial cost because nothing is easy about solving the sectarian violence in Iraq.

Bush Meeting with Iraq Panel Offers Hope | Iraq Updates