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

Originally Posted by Lakeway

Speaking at the Bahrain Institute of Banking and Finance (BIBF) at the launch of an innovative programme which will see 16 high-ranking officials of the Iraq Central Bank trained at the acclaimed Bahraini institution, Ahmed Agha, of Iraq’s embassy in the Kingdom said: [B]“Today the economy is the most powerful tool to fight any army or to break any radical idea in the world.”[/B]
In a frank address to an audience which included US Ambassador to Bahrain William Monroe, Agha did not shy away from the problems facing Iraq – but was optimistic that with help from its neighbours the country could recover to the extent that it would be “one of the richest countries in the world”.
He said: “In the last few decades it is true that Iraq did not have many friends. We were thrown into a war with Iran. We were forced to invade Kuwait and we were a threat to the region. However, those days have gone and the situation is different. “But we have another threat now and I can say that it is more dangerous than the one before. International terrorism in Iraq.”
He went on to explain the role that Bahrain could play in strengthening Iraq against its foes, adding: “We have exhausted and used so many political means to fight these enemies and still we are struggling. Why don’t we use the economy this time; why don’t we use knowledge?”
http://www.bahraintribune.com/ArticleDetail.asp

This is soooo true. I would much rather have a job, and live to see my kids grow than to take $100 to blow myself up so they can eat

Isn't this relative to what the smugglers are doing in Iraq? Taking items across the boarders and selling to them because they can sell for a much higher price because their cureency is worth so much more? JMO Lewscrew

Originally Posted by lewscrew

Isn't this relative to what the smugglers are doing in Iraq? Taking items across the boarders and selling to them because they can sell for a much higher price because their cureency is worth so much more? JMO Lewscrew

I think that is the black market stuff that has been talked about, and the only real way to prevent it is to have currency that is valued the same or higher

I didn't see this posted, but I might have missed it.


Next year's budget - (40 41) billion dollars

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Translated version of http://h...n/

Baghdad / commoners hailed
.Prime Minister Nuri al-Maliki Council of Ministers and the ministries of state funds and the release of all Budgets for the rebuilding of Baghdad. at the time when the Minister of Finance, the budget for Iraq in 2007 will be between 40 and 41 billion dollars. د.The Deputy Prime Minister Dr. الح .Barham Salih at the meeting included a number of government officials and officials from the multinational force that the Economic Committee of the Council of Ministers and the Ministry of Finance have decided to allocate Amkanaat "serious" for the reconstruction of Baghdad and auditing mechanisms and contract processing to enable the State to represent their stressing that the coming months Stko n filled with hard work.
�� .For his part, Egyptian Minister of Finance Baqer Jabr Al-Zubaydi that the budget of 2007 (40 to 41) billion budget, which is ambitious, as he put it, pointing to the existence of some sort of deficit of (5 to 7) billion dollars emphasizing the possibility overcome by the Iraqi Development Fund or through the International Covenant which will be signed at the end of this year. , Zubaidi said that in order to accelerate the reconstruction of the capital, financial allocations will be disbursed in the first month of next year after it had acted in the middle of the year, adding that the allocations by the Ministry to 2007 and the remainder of 2006 will contribute to the reconstruction of the capital Baghdad .
.Zubaidi pointed out that the ministry had allocated six billion dollars of electricity to coincide with the three-year plan announced by the Minister of Electricity and Energy, pointing to the recent statements made with the IMF on Iraq and contributed reduction (100) million of debt, He went on to say that the differences in views with the Fund in the field of monetary policy with respect to the exchange rate of the Iraqi dinar, and the interest rate but agreed to a set of controls which will be reflected positively on the exchange rate of the Iraqi dinar. .For his part, Secretary of Baghdad Saber Eissawi a plan to Aemarasmh Baghdad for a period of four years and cost 281 billion dollars, Issawi said during the meeting that the Economic Committee of the Council of Ministers and the Ministry of Finance agreed to allocate the amount, He reviewed the achievements of the secretariat of Baghdad during this year also presented plans for the reconstruction of the capital of intersections and Mjsrat and tourist hotels and housing complexes.

He's gonna' do what to them?
Don't believe I've ever heard that word before. lol

"a plan to Aemarasmh Baghdad for a period of four years and cost 281 billion dollars"

http://uae4up.com/uploads/059270de38.gif

Originally Posted by DayDream

I don't know Susie, I didn't see that post. I'm assuming it's maybe what is being discussed now.....

Quote from the 2004 Stock Holders Meeting:
Central Bank of Iraq to balance US dollar price to 0.310 ID instead of its real value (1460) ID per 1 US dollar

Meaning it will cost you 1 USD to buy .31 dinar instead of buying 1460 NID for 1 USD. Doing the math as outlined above, if you took 1 USD divide it by
.31 NID this will = 3.22 USD. In other words you have to spend 3.22 USD to buy 1 NID.

Now as far as the "black market" rate. These guys were gouging the people.
Before the war, the banks were a very orderly institution, people came and got their money and went away quietly. Now, people are angry. Some threaten to kill the bankers/tellers if they don't get what they want.

Iraqis are unable to get their own money and feel gouged by the money-changers, who have created what amounts to a false market in which the dinar can double in value or drop just as far in a matter of hours. In 1989 they were selling at 1.86 NID or .537 USD so the people were paying MORE instead of the .31 NID.

The money-changers line the center of the street, some with wooden desks and others with boards laid across milk crates, their piles of money stacked next to calculators and watched over by men with pistols.

How do the money traders know where the bidding should start? The market price, they say, is determined by wholesalers selling large amounts of goods, such as refrigerators or televisions, who come to Kifah Street with thousands of U.S. dollars to change into dinars. There is no order and no one is in charge, just money-changers bidding furiously against one another.

According to the 2006 CBI report they want to return to the Yazzmen rate. WHY? I don't know. It seems if they stuck with the .31 rate (actually... Iraqi dinars per US dollar - 0.3109 was the fixed official rate since 1982 and the 2nd set of books still reflect this rate) they could put the "black marketers" OUT OF BUSINESS.

But I think we MUST remember what the CBI said about the Yazzmen Rate, it was stated for a reason and even though it isn't what we would like to see, it is a very big possibilty that the rate could be .54 But that really isn't chump change.

Not sure I've answered your question or not, seeing I don't know what was said. Do you have the link or know who posted it? Let me know. But I hope this helps.

Cheers!
DayDream

no, youre missing my point. some time ago when the yazzaman rate was discussed you posted your figure but someone else came along and said that the older yazzamen rate was $3. something, having NOTHING to do with the previous figure of the dinar.

I would have to say YA!!!! to the yazzamen rate!!!

Originally Posted by shotgunsusie

no, youre missing my point. some time ago when the yazzaman rate was discussed you posted your figure but someone else came along and said that the older yazzamen rate was $3. something, having NOTHING to do with the previous figure of the dinar.

Originally Posted by ccgideon

You have just brought up the very subject that has been bothering me thoughout this whole process. IMHO, if a stock or investment of some type cost a set amount, say $1,000, that same stock/investment would be worth the same value regardless of the currency used to purchase it, right? It would just either take more or fewer units of the particular currency used to buy the stock/investment. When I worked in Mexico the peco was 30:1,when I bought something valued at $5.00, I could use the $5 USD or 150 pecos...either way the cost was the same. The only difference is that if something costs $5.00 I may be able to afford it where the average Mexican resident could not afford the equivalent 150 pecos. Does this make sense? Just my thoughts.

from the person who you quoted saying why doesnt people with money buy up all the cheap currencies in the world?? first of all maybe they dont have investment laws which allow it. secondly maybe their land isnt worth a hill of beans. iraq on the other hand is INVALUABLE when youre talkin about resources in this day and age of fuel consumption. until someone comes up with an alternative to all the petroleum products used for energy they will continue to be priceless. would i rather own a piece of land or anything else in iraq or in some other country where their things are cheap??

Confirmed that he possessed the means to ensure application of the new procedures
CBE : we will work to provide a climate conducive to the economic stability

The Central Bank of Iraq that he is following the current trends of inflationary phenomenon and its implications on the tracks economic growth because of their undesirable effects on economic stability and the ability to allocate resources among the various activities of the economy and social conditions, particularly the standard of living of the poor classes e and limited income, An official source in the bank that inflation in the Iraqi economy, which negatively affected the security conditions caused by supply bottlenecks in the real sector, which mainly concentrated in the fuel processing sector and the negative impact on the costs of transportation, communication and other production costs 33%.The major impact of aggregate demand for goods and services in the economy, the source added, says has reached annual rates of inflation high levels exceeded 50%, in spite of the positive developments shown by the index of consumer prices (an indicator of inflation) during the month of September 2006, which represented a decrease of 13% However, the inflation rate base (the index of consumer prices excluding fuel and lighting, transport and communication), which represents the effects of the aggregate demand for goods and services in the Iraqi economy is still high, a level not less than 33 متا%. He explained that the Central Bank in the follow-up of economic policy in general and the implementation of monetary policy in particular, noted that the inflationary effects arising from supply bottlenecks sector requires addressed through other means of economic policy, which is outside the scope of the impact of the Iraqi Central Bank and its monetary policy adopted, realizing that the inflationary effects of the index base resulting from the demand side can turn to the state rooted in the joints and components of the Iraqi economy if not addressed through the measures and procedures required and available to macroeconomic policies and in particular the financial and monetary policies and confirmed that the main causes of inflation ISA o is not suitable for the Iraqi dinar exchange rate prevailing with the nominal level, which reflects the real capacity of the Iraqi economy achieved and conditions of foreign currency flows and improvement of the oil revenue derived from higher oil prices in the world market during the last two years, , which was reflected in the expansion of government expenditure and current expenditure capacity of the multinational forces stationed in Iraq, which is to meet its internal foreign currency as well as the flow of foreign aid is different still available in the local market and foreign currency pointing out that these factors have helped to widening Zahir e dealing in dollars (Dollar), which are outside the influence of monetary policy

The trends negatively affect the stability of the monetary demand and monetary policy course of action and its role in the stability of the financial market and the Iraqi dinar from either hand overhead-source added-paragraph has increased salaries and wages has accelerated during the past two years to reach 60% of GDP-Allen Afte after the increase does not exceed 35% till the year 2004.

He said (the Central Bank of Iraq will adopt a tight monetary policy in this regard is aimed at reducing the inflation base through improved exchange rate of the Iraqi dinar and raise the purchasing power of the Iraqi dinar and make cash more attractive means to reflect the circumstances and encouraging indicators in the economy which would help in addressing the Dah danger of dollarization, which is one of the factors that are desired in the work of monetary policy and the level of effectiveness to achieve their goals in reducing inflation Furthermore, the Central Bank will adopt interest rates help to diversify financial market tools religion gradually terms at the same time enabling increased levels of savings and control Manasse cash b), concluded official source at the Central Bank of Iraq to (that these measures will provide a climate conducive to the economic stability which will pave the way for reconstruction and achieve the required growth in addition to higher levels of employment and reducing unemployment, which will be channeled all in the future of the Iraqi economy and prosperity) affirming that the bank (he has the means to guarantee the application of this package of policies in cooperation with concerned bodies to achieve those goals).

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