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

Central Bank’s US Dollar (USD) Currency Auction:
• The following table shows volume sold and exchange rates for USD in the Iraqi currency auction since January 3. Since September, the Central Bank has begun slowly appreciating the dinar, as suggested by the IMF, to tackle rampant inflation over the past year. This important and welcome appreciation accounts for the downturn in the dinar exchange rate, as show in the figure below.
http://www.state.gov/documents/organization/76276.pdf

Posted by WM Knowles: Hello all. I think I may have been misunderstood on a very important point of our discussion. The idea I presented, was to begin considering a reevaluation as a process over a period of time and not as a discrete and singular event. The .05 level presented was simply a model and a place to begin a debate on the idea that economic behavior is different at different price levels. I appreciate and understand the fact that the CBI could RV at a very high level if that is what they have planned. But, with that being said, the .05 level was just a point of discussion, NOT a prediction. I picked this level simply to begin a discussion on how much dinar do YOU think they could remove at this price level. (small bunch, big bunch?) Also, that they would continue to have the power to continue to raise the price level over a short period of time as they see fit. So, if I was misunderstood, I am sorry. Lets continue the good work in our posts and help others in understanding this very complicated process. Thank you.

Let see if I can put this out with not confusing any one. When Iraq revalues their currency, doesn't matter at what price. When it goes international is when the real speculators will start playing with it. The banks etc. This I believe will determine what Iraq will want to reval at due to this fact. Knowles, Adster or some other indivdual please help me with this. If you see this post, sounds like you would could explain it better than me. I'm just trying to put out my thoughts.

Joe

Implementation of the Investment Law Official Press Statement:

The Iraqi-American Chamber of Commerce and Industry hold a conference on Investment in Kurdistan.

Conference will focus on the economic reality in Kurdistan and the size of the projects that have been implemented by the public and private sectors before and after the issuance of the Investment Law in the Iraqi Kurdistan region in addition to presenting the future plans of the ministers of the regional government.

"A working paper will be presented, during the conference, by the Investment Body in Kurdistan to clarify the implementation of the investment law articles in the region; its submission of legal guarantees for investors and titling lands used for investment in various sectors in addition to tax and customs exemptions."

The Iraqi-American Chamber of Commerce and Industry hold a conference on investment in Kurdistan | Iraq Updates

Originally Posted by Adster

Iraq’s exchange rate peg to the dollar has to date been kept relatively stable, but the authorities need to adjust monetary policy to maintain the monetary framework that the peg provides.

Am I reading this wrong. Or is this article saying that the peg has already happened and is stable but changes need to be made because of what the peg PROVIDES? "Provides" means it has already happened or is already here......

Originally Posted by elgordo

My Chinese Fortune Cookie Said Something Good Will Happen Soon. I Think This Weekend.

That's funny! My fortune cookie said "Good news will come to you from far away." Can't get much further than Iraq! lol!

Originally Posted by Pippyman

Am I reading this wrong. Or is this article saying that the peg has already happened and is stable but changes need to be made because of what the peg PROVIDES? "Provides" means it has already happened or is already here......

The dinar has been pegged to the dollar since the US went in, it's part of the IAMB policy. This will end 12 December IMO and then the CBI will have full control on their money and do as they please.

That is why the current wanky rate is 'artificial' and not a 'real' rate that we're looking for it to go back to via a reval.

Originally Posted by Pippyman

Am I reading this wrong. Or is this article saying that the peg has already happened and is stable but changes need to be made because of what the peg PROVIDES? "Provides" means it has already happened or is already here......

It's always been pegged to the dollar, bud. It's just the rate that wants changing.

Originally Posted by tiffany

That's funny! My fortune cookie said "Good news will come to you from far away." Can't get much further than Iraq! lol!

http://www.rolclub.com/vertex/attach/jpg.gif

That's what I'M talkin' about!!!

Originally Posted by tiffany

That's funny! My fortune cookie said "Good news will come to you from far away." Can't get much further than Iraq! lol!

Mine said "You will be expected to do the dishes".