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

Originally Posted by _Apollo_

Fellow Dinar Investors,

First of all let me say that I have read ALL of Mr. Knowles posts. I believe that he might be a little more on the conservative side than most, but his points are valid.

When I first got into this venture the idea of the Dinar going to a penny floored me. WOW, 10 times on my investment? Where else could you get that kind of return? And even though the rate was really closer to .32 cents when we invaded, I couldn’t even imagine the possibility that my $1,000 investment could turn into $320,000. That was just not possible!!!

Now here it is 2 years later and I toy with the idea that it could open at $1.47…. Have I gone mad????

However, if Sunday comes along and the CBI posts new rates at .32 cents then are we really going to get on this forum and write about how pissed we are?

I mean, really… If your buddy come up to you and say, “Hey, I heard the Dinar opened up at .32 cents, doesn’t that make you a millionaire?” Are you going scoff and say, “Yeah, but it should have been more…..” as you pout and walk off?

When I sit back and really think about what has occurred in Iraq, and that many of our men and woman have died over there, I get humbled real fast. Yes this is a great investment, and yes, if we didn’t get involved, someone else would. I just think that sometimes we (myself included) lose our perspective.

Just my opinion..

Apollo, you nailed it. Bravo. Knowles put out some very good points and offers a different way this thing could go based on real world factors. To bash him for letting folks know something to keep in mind is childish. I understand the desire for a high reval, heck I would like $3 to 1 IQD. But I would like to know how it could go so I can have a plan and not panic.

In thinking of a possible low reval and understanding why the dinar was revaled low, is some need to know info. Will it float or peg? If it pegs at an initial low rate, what happens down the road with possible repegs? I want to know it all before hand. Thanks Knowles.

Originally Posted by mrvgs

They need more dinars to cover the debit card handout.

THEY ARE HANDING OUT CHEQUES!!! NOT CASH!!!
are you gonna get total cash when you exchange your dinar? i bet they wont be given total cash when they get cash their cheques either.

Originally Posted by Par77

To all of our Ompus / FreeDinar Members,

As many of you know we haven’t bought any Dinar since we stopped our sales. That was on October 17th, so other than rumors of Dinar being harder for other dealers to get we really didn’t have any first hand knowledge......................................... .................................................. .......important link in regards to Monday’s big trade meeting between Iraq and the European Union LINK

If you have any questions in regards to anything you read here, or any comments, please feel free to email us at [email protected] or [email protected] and we would be happy to answer them.

Thank you,
Corporate Team
Ompus / FreeDinar


Hey, Dan could you post your updates to the forum? I love the way you just pull it all together.

Par77,

As recently posted on this forum, most of this information is already here. I will not lie to you tell you that ALL of the information we send out we find first. Several of our customers will cut and paste from this forum and email to us. My staff also lurks here from time to time.

The information gathered here in this one spot by all involved (SGS, Charmed, and everyone else...) is very impressive. Not to mention all the thoughtful discussions. This place can be very addicting!

Anyway, I will attempt to repost the email that we sent out. I am not sure how to get the links to appear, but will give it a try.

Thanks,

Dan

Originally Posted by _Apollo_

GK,

I wonder if you could provide where you got those numbers? I am not disputing them, but would like to see the source of information. It could shed some light on their current reserves and exactly how long they have been pulling Dinar back in. The CBI site has some spreadsheets, but alas, they are difficult to read at best.

And the .pdf only shows totals of the daily auctions. Unless you were saving the main auction page everyday (of which I have just started) there is no way that I know of to really see the hard numbers.

Thanks,

Dan

You can look it up on the "Key Financial Indicators" at the CBI website.

Originally Posted by _Apollo_

GK,

I wonder if you could provide where you got those numbers? I am not disputing them, but would like to see the source of information. It could shed some light on their current reserves and exactly how long they have been pulling Dinar back in. The CBI site has some spreadsheets, but alas, they are difficult to read at best.

And the .pdf only shows totals of the daily auctions. Unless you were saving the main auction page everyday (of which I have just started) there is no way that I know of to really see the hard numbers.

Thanks,

Dan

You can look it up on the "Key Financial Indicators" at the CBI website. From 19T in August, it went all the way down to 14T Oct 19. That's the M2.

Lets give this a try...

Here is the middle portion of the email that we sent out tonight.


.......However over the last few days we have found that the cost of Dinar has risen and has become harder to get.

The question you have to ask yourself is why? The answer is what we have been waiting for. The Dinar revaluation is upon us! But don’t take our word for it; take a look for yourself…

On November 13th, the Central Bank of Iraq issued a statement regarding increasing the value of the Dinar. An official source with the CBI said, “…the Iraqi Central Bank will adopt a tight monetary policy…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…” You can read the full article HERE.

We have also noticed a trend at the Central Bank of Iraq that goes hand-in-hand with a revaluation. Since November 1st of this year the Central Bank of Iraq has bought back Iraqi Dinar from their local banks at a tune of over $720 Million Dollars! That’s over 1 Trillion Iraqi Dinar (1,055,373,700 to be exact). This means that they have taken a large chunk of their currency out of circulation. They have also been improving the exchange rate from 1470 Dinars to the Dollar to 1454 as of yesterday. LINK

Why would they do this? Well if you were the Central Bank of Iraq, which is operated similar to the United States Treasury, and you knew that your currency was about to increase in value, for whatever reason, you would want to pull as much out of circulation as possible before it cost you more. This is one of the reasons we believe that we have seen this dramatic move from the CBI. We also know from the statement by the CBI, that they have tried all other means to combat inflation, and that they are going to improve the exchange rate.

However, does a move from 1470 to 1454 do enough? Let’s look at this from an Iraqi’s point of view. Lets say a child’s pair of shoes in Iraq cost around $6.99 USD. At the old rate of 1470 that’s 10,275 Dinars. With the new rate of 1454, those shoes are now 10,163 Dinars. If you convert it the other way, it brings the shoes down to $6.91 for a total savings of 8 cents. Is that enough of an increase in the rate to combat inflation? No way…

We believe that this slight change in the exchange rate is just to attract the local banks to sell back their Dinar. At over $720 million bought by the CBI, the combined profit for the banks could be as high as 8 million dollars.

If the Dinar was going to increase, then why would the banks sell theirs back? Wouldn’t they stand to make much more than 8 million? The answer is that the local banks need US dollars for project funding. Most if not all of the reconstruction projects are paid in US dollars, not to mention ALL of their imports. Of course this will change once the Dinar becomes internationally traded.

One other thing to note, a recent article in an Iraqi paper alludes to the release of the lower denominations. This same article also states that the CBI has no plans to change the currency. Here is a snippet: “According to an official source at the Central Bank of Iraq…there is no intention at this time to change the Iraqi currency is expected that the issuance of new categories of transactions…” This is a rough Google translation, but when we hear, “new categories of transactions”, we think this is in regards to the lower denominations. You can read the article HERE.

Here are a few other links to news of interest..

Bush Meeting with Iraq Panel Offers Hope

Norway Finds Huge Amounts of Oil in Iraq!

CBI Officials Attend Advanced Training this Week

Dollar Demand Down at the CBI

And let’s not forget this important link in regards to Monday’s big trade meeting between Iraq and the European Union LINK

I think those links will work....

Dan "Apollo"

Originally Posted by _Apollo_

Lets give this a try...

Here is the middle portion of the email that we sent out tonight.


.......However over the last few days we have found that the cost of Dinar has risen and has become harder to get.

The question you have to ask yourself is why? The answer is what we have been waiting for. The Dinar revaluation is upon us! But don’t take our word for it; take a look for yourself…

On November 13th, the Central Bank of Iraq issued a statement regarding increasing the value of the Dinar. An official source with the CBI said, “…the Iraqi Central Bank will adopt a tight monetary policy…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…” You can read the full article HERE.

We have also noticed a trend at the Central Bank of Iraq that goes hand-in-hand with a revaluation. Since November 1st of this year the Central Bank of Iraq has bought back Iraqi Dinar from their local banks at a tune of over $720 Million Dollars! That’s over 1 Trillion Iraqi Dinar (1,055,373,700 to be exact). This means that they have taken a large chunk of their currency out of circulation. They have also been improving the exchange rate from 1470 Dinars to the Dollar to 1454 as of yesterday. LINK

Why would they do this? Well if you were the Central Bank of Iraq, which is operated similar to the United States Treasury, and you knew that your currency was about to increase in value, for whatever reason, you would want to pull as much out of circulation as possible before it cost you more. This is one of the reasons we believe that we have seen this dramatic move from the CBI. We also know from the statement by the CBI, that they have tried all other means to combat inflation, and that they are going to improve the exchange rate.

However, does a move from 1470 to 1454 do enough? Let’s look at this from an Iraqi’s point of view. Lets say a child’s pair of shoes in Iraq cost around $6.99 USD. At the old rate of 1470 that’s 10,275 Dinars. With the new rate of 1454, those shoes are now 10,163 Dinars. If you convert it the other way, it brings the shoes down to $6.91 for a total savings of 8 cents. Is that enough of an increase in the rate to combat inflation? No way…

We believe that this slight change in the exchange rate is just to attract the local banks to sell back their Dinar. At over $720 million bought by the CBI, the combined profit for the banks could be as high as 8 million dollars.

If the Dinar was going to increase, then why would the banks sell theirs back? Wouldn’t they stand to make much more than 8 million? The answer is that the local banks need US dollars for project funding. Most if not all of the reconstruction projects are paid in US dollars, not to mention ALL of their imports. Of course this will change once the Dinar becomes internationally traded.

One other thing to note, a recent article in an Iraqi paper alludes to the release of the lower denominations. This same article also states that the CBI has no plans to change the currency. Here is a snippet: “According to an official source at the Central Bank of Iraq…there is no intention at this time to change the Iraqi currency is expected that the issuance of new categories of transactions…” This is a rough Google translation, but when we hear, “new categories of transactions”, we think this is in regards to the lower denominations. You can read the article HERE.

Here are a few other links to news of interest..

Bush Meeting with Iraq Panel Offers Hope

Norway Finds Huge Amounts of Oil in Iraq!

CBI Officials Attend Advanced Training this Week

Dollar Demand Down at the CBI

And let’s not forget this important link in regards to Monday’s big trade meeting between Iraq and the European Union LINK

I think those links will work....

Dan "Apollo"

Apollo, the gradual revaluation of the IQD has begun since September. What we're waiting on is when the big leap will be. Lots of events have taken place that points to a major adjustment of the IQD's exchange rate. Events that seem so disconnected with Iraq, but look closely and you'll see that the these events are directly linked. It's all good.

Originally Posted by 2bmoore

This is just a thought but a country's exchange rate is proportional to its SDR exchange rate within the IMF. Using this, I calculated the value of the IQD using Iraq’s lowest SDR exchange rate (April 30, 1995) and the current US SDR exchange rate. Here’s what I got:

USD (0.674029 SDR) / IQD (2.04504 SDR)
This equates to a rate of 0.32959 or $3.03

Just a thought.

2B

and a brilliant idea as well!! thanks for that grey matter sharing...

Originally Posted by shotgunsusie

THEY ARE HANDING OUT CHEQUES!!! NOT CASH!!!
are you gonna get total cash when you exchange your dinar? i bet they wont be given total cash when they get cash their cheques either.

SGS,

Do you have a link for this?

What cheques are they handing out? (10k or salaries?)

Perhaps they are trying to entice them to open bank accounts and then have them get used to using the ATMs.

Your thoughts are appreciated!!!

Many thanks and kind regards.

[QUOTE="GK";136644]I'm quite sure the amount of IQD outside Iraq will not matter one bit. It's all set. Iraq will get the exchange rate it wants. The currency in circulation is due to the fact that Iraq's a cash based society and considering the pathetic exchange rate, 19T is only $12B at the 1470 exchange rate. $12B covering a population of 26.8 million. No ATMs, no checkbooks, no debit cards. That's ultra conservative. The CBI doesn't need to worry about the currency in circulation inside Iraq just to significantly increase the exchange rate of the IQD. The IQD is the national currency of Iraq, used in day to day business and purchase of goods and services in IRaq. The IQD is still king and will always be king in Iraq, especially once the exchange rate skyrockets. It will surely do the Iraqi economy alot of good since imports will be cheaper. They don't have to worry about the increased price of their export, since we all know their major export is oil. Oil that the entire world needs. As far as the IQD outside Iraq, this is already taken cared of and set in stone. It's all good. The time has come. Sit back and enjoy the ride.[/QUOTE]
[B][COLOR="Purple"]thats right, time to relax before the money storm starts hittin.[/COLOR][/B]