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

Originally Posted by H2O_Lover

Iraq-Currency
Dollar demand down amid central bank’s measures to decrease inflation
By Dergham Mohammed Ali
Baghdad, Nov 14, (VOI) – Demand for dollars was lower at the Iraqi Central Bank daily auction on Tuesday to $62.540 million from $110 million in Monday’s auction.
The central bank said in its daily statement it covered all bids which were $32.910 million in cash and $29.630 million in foreign transfers.
The dollar exchange rate was 1,460 dinars , five ticks lower than Monday.
None of the 16 banks that participated in the auction offered to sell dollars.
Mr. Ali al-Yasseri, exchange company owner, told the independent news agency Voices of Iraq (VOI) “the central bank offered to sell dollar today with an exchange rate of 1,460 dinars, five ticks lower than Monday’s, in a bid to decrease the local liquidity amid a series of tough measures by the bank to bring down inflation.”
The Iraqi central bank, Mr. Yasseri said, “made every effort to ensure that banks participating in the central bank daily auction would not offer dollars for sell.”
“Banks’ offers to sell dollars mean letting more local currency to the market,” he added.

Anyone care to comment on this ...sorry i dont have the link it was sent to me in PM...

That's exactly correct, the CBI doesn't want to buy dollars, they want to buy dinar, so they asked the banks not to offer dollars but dinar. If the banks offer dollars at the sale then they expect dinar in return and that's exactly against what the CBI is trying to accomplish. I hope you can understand what I'm saying because it's hard to explain.

Originally Posted by webinvestor

I know i can't give you the amount answer but i can give some other numbers to compare.

Earlier i posted the exchange rates of the GCC neighboring countries.
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
Iraq iqd/usd .0006815

here's some more.
Currency and gold reserves:
Bahrain $2.432 billion (2005 est.)
Kuwait $8.972 billion (2005 est.)
Oman $4.358 billion (2005 est.)
Qatar $4.552 billion (2005 est.)
S. Arabia $26.76 billion (2005 est.)
UAE $23.53 billion (2005 est.)
Iraq $9.161 billion (2005 est.)

And their proven oil reserves:
Bahrain 124 million bbl (2005 est.)
Kuwait 96.5 billion bbl (2005 est.)
Oman 6.1 billion bbl (2005 est.)
Qatar 16 billion bbl (2005 est.)
S. Arabia 262.7 billion bbl (2005 est.)
UAE 97.8 billion bbl (2005 est.)
Iraq 112.5 billion bbl (2005 est.)

FYI, these estimates are from the CIA fact book.

I'm still trying to find M0, M1, M2 (money supply) data but maybe someone knows better where to find this??..??

The only problem is currency in circulation, IF you find the numbers I bet Iraq has 10 times the currency in circulation. The M1 and M2 numbers can be found on CBIRAQ.ORG

It will get you down though if you look at these numbers.

Originally Posted by H2O_Lover

Iraq-Currency
Dollar demand down amid central bank’s measures to decrease inflation
By Dergham Mohammed Ali
Baghdad, Nov 14, (VOI) – Demand for dollars was lower at the Iraqi Central Bank daily auction on Tuesday to $62.540 million from $110 million in Monday’s auction.
The central bank said in its daily statement it covered all bids which were $32.910 million in cash and $29.630 million in foreign transfers.
The dollar exchange rate was 1,460 dinars , five ticks lower than Monday.
None of the 16 banks that participated in the auction offered to sell dollars.
Mr. Ali al-Yasseri, exchange company owner, told the independent news agency Voices of Iraq (VOI) “the central bank offered to sell dollar today with an exchange rate of 1,460 dinars, five ticks lower than Monday’s, in a bid to decrease the local liquidity amid a series of tough measures by the bank to bring down inflation.”
The Iraqi central bank, Mr. Yasseri said, “made every effort to ensure that banks participating in the central bank daily auction would not offer dollars for sell.”
“Banks’ offers to sell dollars mean letting more local currency to the market,” he added.

Anyone care to comment on this ...sorry i dont have the link it was sent to me in PM...

Based on this article, it is the opposite of WmKnowles. Mr. Knowles, would you like to comment? This is letting more Dinars into circulation not taking them out.

Thanks.

Originally Posted by Cyberkhan

ÌÑíÏÉ ÇáÕÈÇÍ - Central Bank to adopt new policy to end inflations' rates

Is it me or is a piece of the translation missing on this article. I love to see the Header though...



Please baby, keep those changes coming!!!!!!!!!!!!!!!!

It looks to me like a section of it IS missing - the context of what is being said is missing between the top and bottom half sentences. Is this info being embargoed because it is another clue to an RV date or rate? Can someone dig up the original article or perhaps its too late and has been censored everywhere it appeared? Hmmm.....

Originally Posted by dinartank

Um no sir i believe your wrong ....the year has been moved up to the year 2008.... Iraq is under imense presure to get their shitte together before then...i wish i had a link to back it up but im sure other members can confirm that the year has been moved to 2008

This was posted by DayDream on 11/10. You can find it in the history thread.

GCC to launch common market by 2008 -- official

CAIRO, Nov 10 (KUNA) -- The Gulf Cooperation Council (GCC) member states will launch their common market in early 2008, according to a GCC official.

"We achieved 80 percent of the tasks related to the common market so far," Minister Plenipotentiary of the GCC Secretariat and Director of department of Studies and Economic Integration Abdul-Aziz Hamad Al-Owaisheq was quoted by Saturday's issue of the local weekly Al-Ahram Al-Arabi as saying "The remaining percentage will be completed during the coming 14 months or within 2007," he expects.

"Integration among the GCC follows five tracks, foremost among which are the free trade area - achieved by the end of 2002, and the customs union - starting from 2003," he said.

The percentage of bilateral trade volume among the GCC members rose from 6 percent before the initiation of customs union to 21 after that.

The bilateral trade volume rose from USD 18 billion in 2002 to over 31 billion in 2005, the official added. He expressed hope that the GCC single currency would be launched by 2010.

The favorable conditions should be created for works related to the legislations and mechanisms of the single currency, he pointed out.

According to press reports, more than 70 percent of the steps towards the GCC single currency were taken and most technical problems facing the endeavor were removed. (end) bna.

http://www.kuwaittimes.net/Navariedn...tid=1809654976

Originally Posted by homy

Based on this article, it is the opposite of WmKnowles. Mr. Knowles, would you like to comment? This is letting more Dinars into circulation not taking them out.

Thanks.

Read the article, it's exactly what Knowles is saying. The CBI is trying to pull dinar off the streets, so their asking the banks to sell them dinar for dollar. If the banks offer the dollar then they expect dinar in return which causes the inflation that the CBI is trying to tame by buying the dinar out of circulation. Hope this helps.

Originally Posted by homy

Based on this article, it is the opposite of WmKnowles. Mr. Knowles, would you like to comment? This is letting more Dinars into circulation not taking them out.

Thanks.

The Iraqi central bank, Mr. Yasseri said, “made every effort to ensure that banks participating in the central bank daily auction would not offer dollars for sell.”“Banks’ offers to sell dollars mean letting more local currency to the market,” he added.

How so?

Originally Posted by webinvestor

Wouldn't you love to see a report next year that says, "Some 100,000 people joined the ranks of the world's millionaires in 2006 thanks to the Iraqi Dinar..."

Yes totally, that number IS gonna grow, and we ARE gonna be part of it!! ...just a matter of time now.

Originally Posted by cigarman

Read the article, it's exactly what Knowles is saying. The CBI is trying to pull dinar off the streets, so their asking the banks to sell them dinar for dollar. If the banks offer the dollar then they expect dinar in return which causes the inflation that the CBI is trying to tame by buying the dinar out of circulation. Hope this helps.

.


ok could you explain this statement at the end of the article

“Banks’ offers to sell dollars mean letting more local currency to the market,” he added"

Originally Posted by Inscrutable

Well first you need to understand the definition.
dollarization: Definition and Much More from Answers.com

Then you need to take into account the press statement of the danger of dollarizing the economy.

I'm not trying to scare anyone so don't take this the wrong way.

The way I look at it is this:

Iraq had US Dollars in their vault worth $1 USD compared to 1460 Dinars.

If they were to revalue the dinar tomorrow at $1 to 1 dinar then those 1460 dinars are now reversed or $1460.00 USD in reserves. Get it?

Dollarization can occur

unofficially, without formal legal approval
semiofficially (or officially bimonetary systems), where foreign currency is legal tender, but plays a secondary role to domestic currency
officially, when a country ceases to issue the domestic currency and uses only foreign currency.

They must be talking either unofficially or semiofficially...I have no clue...

What if they RV'd it to 1.46 then... would it depend on the amount of IQD vs. Dollars they had stashed away in the vault?