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

Originally Posted by mrvgs

So will we will have 1 year to exchange for euros?

mrvgs, These were just proposals that were made by individuals for postwar monetary options. Will Iraq heed them? I don't think so.

About the authors for those who feel it is just someones opinion.

Steve H. Hanke ([email protected]) is professor of applied economics at the Johns Hopkins University and a senior fellow at the Cato Institute. He is the author of a number of currency reform proposals and has participated in currency reforms in Montenegro, Bosnia and Herzegovina, Bulgaria, Lithuania, Estonia, and Argentina. Matt Sekerke is a research associate at the Johns Hopkins Institute for Applied Economics and the
Study of Business Enterprise.

Originally Posted by cigarman

look under the news section.

Am I the only one not seeing it there?

Statement Issued from the CBI

Concerning the Acceleration

Inflationary Phenomenon

(Arabic Version)

17/اب/2006



This is off the CBI website under news, maybe it's old but I thought it was yesterdays statement.

Originally Posted by Wm.Knowles

If you are correct in saying that the CBI has removed one trillion dinar from
circulation in just about one week, leaving approximately 3.5 trillion outstanding, what's to prevent their taking another 3 trillion out of circulation
in the next month, thereby leaving just 500 billion in circulation?

This is a very interesting question. I would think that before the CBI could reduce the quanity of the money supply to this level market forces would come to play and make the currency too expensive. There continues to be a disageement on how much money was printed and how much is in circulation. I remember a report I think was from Chalibi that said 9 trillion was printed. How much is in circulation has been reported around 4.5 trillion. I have also read some extremely larger numbers. In any case, the position that we are watching a very aggressive effort to remove dinar from the economy is still a valid position. Regardless of how much is truly in circulation is not an issue we can control. We can continue to observe the trend and should feel good that the CBI is acting in a responsible way concerning monetary policy. Although I still feel the interventions over the last few auctions have been very dramatic if not a "panic" action. If removal of the dinar was to be monetary policy of the CBI, once they exceded the suggested currency reserves in the original SBA with the IMF they could then have begin removing excess dinar from the economy. As I have said before, I don't think they are stupid, but I do think they are inexperienced. And as I always say, the next couple of days this week are going to continue to be very interesting.

Could the other 4.5 trillion be the smaller denoms? Stashed away at Fort Knox or something? Just a wild thought...

The exchange rate remains stable and reserves continue to grow in Iraq, according to an International Monetary Fund (IMF) August 2006 report.

The exchange of the Iraqi dinar to the U.S. dollar has remained close to 1,475 at the daily auctions, which have been conducted free of any restrictions.

The net international reserves of the Central Bank of Iraq (CBI), which reached $11.5 billion at the end of 2005, increased to $12.7 billion by end-April, above projected levels under the Stand-By Arrangement (SBA) and comfortably above the program floor (performance criterion) of $7.5 billion.

Currency in circulation grew by 27.9 percent in 2005, and by a further 6.1 percent in the first quarter of 2006.

The Iraqi economy remains predominantly cash-based, with cash comprising nearly two-thirds of total broad money, which is growing more slowly.


Iraqi dinar circulation growing

Right, but thats been there for months right? I remember back when they put that up people were wondering if CBI would make them clickable, but there never did. We are talking about the CBI press release of yesterday being posted on CBI, right?

Originally Posted by cigarman

Statement Issued from the CBI

Concerning the Acceleration

Inflationary Phenomenon

(Arabic Version)

17/اب/2006



This is off the CBI website under news

pizzagal 11-14-2006 would like to have upate on dinar

If those figures are correct then there is roughly about 6.1 trillion dinar in circulation today.

Originally Posted by pizzagal

pizzagal 11-14-2006 would like to have upate on dinar

Well Pizzagal you have about 75 pages to catch up on in the last 2 days.

Originally Posted by pizzagal

pizzagal 11-14-2006 would like to have upate on dinar

Latest dinar upate = cbi rate of 1460, press release yesterday of cbi's intent to improve dinar exchange rate, didnt say when, or how much. Hows that for an upate?