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

Originally Posted by cigarman

The banks are offering the CBI dollars in return for dinar which puts more dinar in circulation ( which causes inflation and low exchange rate ) which is exactly opposite of what the CBI is trying to do ( take dinar out of circulation ). Somebody please help me explain it where they can understand!

Maybe the confusion lies in the fact that CBI ALSO is a bank...?
I think that if we think of CBI as "federal reserve" or something like that it becomes clearer...that the "normal" banks sell dinars for dollars to/ from the "reserve".
May be? At least that's how I understand it...and I was confused about the talks of "banks" since CBI is Central BANK of Iraq...
/K

Finance & Banking

Bank officials to attend key forum

--------------------------------------------------------------------------------

13 November 2006 (Gulf Daily News)
Sixteen high-ranking officials from Central Bank of Iraq (CBI) are to attend five-day training programme on banking supervision in Bahrain, starting tomorrow. The five-day programme is being conducted by the Bahrain Institute of Banking & Finance (BIBF) in co-operation with the International Monetary Fund (IMF) and Federal Reserve Bank of New York (Fed NY) .

The workshop, at the BIBF premises in Juffair, will be conducted by a team of international experts from the IMF and Fed NY.

BIBF was selected to host this important workshop because of Bahrain's excellent reputation as a leading world financial hub and the Institute's ability to provide world-class training and business advisory services, said BIBF deputy director and head of Banking Learning Centre, Hussain Ismail.

For the last two-and-a-half years, the IMF and the Fed NY have co-ordinated their efforts to provide technical assistance to the CBI to help in the reconstruction and development of the Iraqi economy.

A comprehensive initial training curriculum was defined and has been implemented between 2004 and early this year for staff of the CBI's Banking Supervision Department (BSD) and a series of joint workshops were delivered, covering all key banking supervisory issues.

The workshop in Bahrain is the first in a new series of training programmes. It will be focusing on the practical implementation in the field of banking supervision as well as reviewing the actual work and outputs produced by the Iraqi supervisors, in order to give them feedback and guidance on how to improve their scope and their quality, both for off-site and on-site supervision.

"This programme is part of a series of successful workshops, which will further contribute to the training and education process of the Iraqi people," said Mr Ismail.

Another workshop on banking supervision was conducted successfully at the BIBF in June 2004.

Originally Posted by hightide3016

Finance & Banking

Bank officials to attend key forum

--------------------------------------------------------------------------------

13 November 2006 (Gulf Daily News)
Sixteen high-ranking officials from Central Bank of Iraq (CBI) are to attend five-day training programme on banking supervision in Bahrain, starting tomorrow. The five-day programme is being conducted by the Bahrain Institute of Banking & Finance (BIBF) in co-operation with the International Monetary Fund (IMF) and Federal Reserve Bank of New York (Fed NY) .

The workshop, at the BIBF premises in Juffair, will be conducted by a team of international experts from the IMF and Fed NY.

BIBF was selected to host this important workshop because of Bahrain's excellent reputation as a leading world financial hub and the Institute's ability to provide world-class training and business advisory services, said BIBF deputy director and head of Banking Learning Centre, Hussain Ismail.

For the last two-and-a-half years, the IMF and the Fed NY have co-ordinated their efforts to provide technical assistance to the CBI to help in the reconstruction and development of the Iraqi economy.

A comprehensive initial training curriculum was defined and has been implemented between 2004 and early this year for staff of the CBI's Banking Supervision Department (BSD) and a series of joint workshops were delivered, covering all key banking supervisory issues.

The workshop in Bahrain is the first in a new series of training programmes. It will be focusing on the practical implementation in the field of banking supervision as well as reviewing the actual work and outputs produced by the Iraqi supervisors, in order to give them feedback and guidance on how to improve their scope and their quality, both for off-site and on-site supervision.

"This programme is part of a series of successful workshops, which will further contribute to the training and education process of the Iraqi people," said Mr Ismail.

Another workshop on banking supervision was conducted successfully at the BIBF in June 2004.

Link .. if you have it ...thanks

Originally Posted by Lunar

Webinvestor wasn't there an article posted recently stating it had been moved up to 2008? I may be wrong...

Ya, you're right. I forgot that article. It was from last week i think.

Originally Posted by H2O_Lover

Link .. if you have it ...thanks

Bank officials to attend key forum | Iraq Updates

Okay...I want to correct myself BIG TIME about the Yazzman Rate. You will notice I changed my signature from 1.86 Yazzmen Rate to .54 Yazzmen Rate. As I was reading through the posts I saw this one...

Quote:
"I am reading this as $1 = 0.31 ID so 1 NID = $ 3.22 correct me if am wrong or tell me what I won when I am right."

That got me rethinking about the "black market" rate and I realized I looked at the whole thing wrong, I never was very good at math. When I said that the last known "black market" rate PRIOR to the CBI auctions that I could find was in late 1989, the official exchange rate was 0.31 dinar for US$1. The black market rate was reported as being five to six times (1.86 dinars for US$1) higher than the official rate. So I put the r/v at 1.86 USD when in actuality it is .537 USD. The "black marketers were undercutting the .31 dinar and were selling it alot cheaper, not placing a higher value to it but lowering it.

Now we have the old article resurfacing....

I would to inform all the stockholders of Baghdad Bank that the report of the managing council 2004 was prepared according to the demands of Central Bank of Iraq to balance US dollar price to 0.310 ID instead of its real value (1460) ID per 1 US dollar, so, the report and general budget do not necessarily reflect the actual situation of Baghdad Bank and the volume of economical incoming indexes, so, this report was issued in order to meet the demands of the rules and instructions.

Hmmmm...now theres that .31 again. It seems that it may be true about returning it to its 1989 rate of .31 BUT we have to take into account what the CBI itself posted:

Bank of Baghdad, the Iraqi Marazi 18 / October / 2006 World Marazi 4196th statement on the Iraqi current positive trends in the overall level of prices Press Communiqué 'Issued from the CBI Concerning the current Positive Seabird of the General Price Level following World Marazi Iraqi interestdeep price trends and the current positive indicators displayed by the index of consumer prices in Iraq (Am'cher for inflation), which scored a broad decline in the growth rates, particularly in the month of September of this year, 2006,The (negative 13%) compared with August of the same year.And to the extent that the bank believes the Iraqi Marazi in this decline as a sign of the health of the Iraqi economy, to show its ability to contain the phenomenon of inflationary trends and respond to unwanted levels of living or productivity in the distribution of resources among the various uses,However, he is still aware that the source of Ant price fluctuations resulting from vibrations generated by the supply sector in the level of real rates of production or productivity promised by changing the basis for the development of activities of price and delinquency rates on the price of natural tracks and levels of moderation.Taking the positive developments in the energy sector, fuel and transport and communication sector has Abera, in the low rates of inflation in the month last September as the rates of decline contributed by paragraph fuel and lighting components in the index of consumer prices in Iraq about (negative 42%), while transport contributed paragraph. ( Wa%some of the surface (negative 33 and the World Marazi Iraqi need support the economic policy of positive trends in the level of inflation and the decline through various hubs and trends, particularly in the field of energy, fuel, and the areas of fiscal policy aimed at restructuring public expenditures and a containment pressureMali, as well as the role of the investment policy, including the various investment opportunities and boosted economic growth in the country. At a time when monetary policy to sense that there was high optimism in the stability of the general level of prices and the decline in inflation rates but it is aware of the importance of staying on the trends of strong backing to the hard-line LasTakrar economic,reflected in the current level of rates as well as the bank continues Marazi,interest Rate Policy-Marazi Iraqi Iraqi bank to achieve its objectives current operational addressed to influence the rates of the monetary liquidity and control menaced which embodies the current activity of the auction money orders, bonds and foreign currency auction. The bank will maintain Marazi Iraqi on the other tracks in Ceasix cash efforts to achieve intermediate goals for reducing inflation and contain inflationary expectations, relying on "stabilizing nominal" cash Aatar Yazzmen rate of the Iraqi dinar against the dollar and boosted the purchasing power of the Iraqi dinar to move across the tracks and cash assistance in inflation targeting. As imply afor Ihalanange cash adopted by the World Marazi Iraqi Without doubt on the link between climate and means of monetary policy,whether in the area of interest rates or exchange rates on one hand,The stability of the general level of prices on the other hand promised the Association of tasks President underlying the Marazi Bank in the implementation of its goals to maximize the purchasing power of cash income and the strengthening of the capacities of the country coffers in a way that achieves the objectives of economic growth in the long term.

If they return it to the Yazzmen rate which was 1.86 dinars for US$1 then the New R/V rate will be .537 rounded to .54USD. This seems to concide with the rumor that was posted about the Egyptian "black marketers" buying dinars for .50

Don't be to harsh with the , my head is already sore from bashing my head into the wall over and over. But please consider what I have posted, I believe we will find that the r/v will be in the .54 range.

Cheers!
DayDream

Originally Posted by Wm.Knowles

Ref: Two Questions

I wold like to respond to two questions that have been asked.

The first question is how long do I think the CBI can continue the trend of removing dinar from circulation. Very dificult to make that judgement. If it is true that they have 4.5 Trillion in circulation, and they are approaching removing a Trillion dinar within the last week or so, I would expect this process to be about done. They have been successful in removing the dinar at a lower rate. Can you imagine trying to remove that amount of dinar and what it would cost should they have had an R/V at .31 USD to the dinar? The cost would have been tragic. How much longer can this go on? Expect them to continue to remove dinar until they reach their target, which we can only sit on the sidelines and watch. But the "trend is our friend". So we'll see what happens this week. As I have said before this week is going to be very interesting.

The second question was, "What if they remove too much"? This is when things really get interesting should they (CBI) misjudge and remove too much dinar. This would be similiar to a very profitable stock company who has few outstanding shares of stock. The price of the outstanding stock becomes very expensive. So you could expect basic supply and demand to take over and elevate the price of the dinar to atmospheric levels. (I can hear the screams of joy from here and the encouragement for the CBI to do to good of a job). Everyone have a good day.

http://www.cbiraq.org/Monetary%20Aggregates.xls

Looks like 9.3 trillion as of May 2006 and nearly a trillion less since then based on what we have observed through the recent auctions. There is an article about a month ago perhaps a bit longer that stated that the CBI had said they were not going to expand the circulation any further. so perhaps one could use the auction history along with the monetary aggregate and estimate.

Yet there are two bench marks where political "Will" exercised itself on an exchange rate and that was Germany 1948 and Japan 1985 both for different reasons but both were overnight and Dramatic in scope, I mean announced night before Rv next morning. So we have to consider this since it is historical fact and Iraq mimics Germany's case, like it has been said before the International Compact= A tailored Marshall Plan.

Either way I'll be happy with appreciation, but 1.48USD is the range Iraq indicated in recent documents....

Nice ride though, its a very exciting time.

Originally Posted by Jola

Just to say my opinion: I would never believe a reval at $3 for one dinar will happen. While I would certainly love to cash in at that rate, I just feel it is too much...

I take it more as 1 dinar = 31 cents, so it would be the other way around: 3 dinars for one dollar - to begin with...and maybe the rate will raise from there up...

Do you guys believe that the dinar will jump from 1460 for one dollar to 3 dollars for one dinar?

I guess that is hard to swallow by their neighbors...and others, including US...especially with the US dollar situation right now on the market...JMO...but as I said...what do I know?

no, the equation .31ID to the dollar does indeed indicate $3.22. it means that approx. 1/3 of the dinar is worth a dollar in essence. with the output of oil they are getting and expecting it is INDEED possible for iraq to revalue at this rate.

Originally Posted by karinc

Maybe the confusion lies in the fact that CBI ALSO is a bank...?
I think that if we think of CBI as "federal reserve" or something like that it becomes clearer...that the "normal" banks sell dinars for dollars to/ from the "reserve".
May be? At least that's how I understand it...and I was confused about the talks of "banks" since CBI is Central BANK of Iraq...
/K

Hey Y’all, I’um just a kountry boy at aint got much learnin’, but I do have sum smarts about me cuz I did gradjeate when I was 21 from the 6 grade, so I aint completely dumb, but I’um getting cornfused an I’um havin’ a hard time followin’ sum of ya……..sum ah y’all say they’s sellin’ dollars and sum ah ya say they’s sellin’ dinar……..now when I go to da CBI site its sez in black n white, “auction price sellin’ dinar / US $....1460”, balow ther its sez agin in black n white, “auction price buyin’ dinar / US $....------“, aint no dang numbers in nare…….so whu’s a buyin’ an whu’s a sellin’……pleeze anser this so’s I kin understand…….pretend like ya wuz tellin’ my dog so’s he kin tell me later……I’ll be able to understand at way……thanx fur yur help…..

Lazy

Truth is all these Banks write Letters of Credit (LC's) for business operations. Because the IQD are not an Internationally acceptable currency yet, the LC's from the Banks are written in USD. To get the USD's to back the LC's they write, the Banks go to the CBI and buy USD. They pay for the USD with IQD. Most of these transactions are just Book keeping entries in the CBI Books and the Bank Books. Soon, the IQD will be more acceptable to buy Goods and services in and out of Iraq, and the Banks can write LC's in IQD. That will be the time when IQD's get their recognition and will go up in value.