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

Originally Posted by Caddieman

No bashing here. I agree with many of your points. This thing will not be a lightning RV but a slow steady one. The Rv has already started. The slow reduction in the currency rate has been on for two weeks now. Currency is being taken out of circulation When the currency gets down to a point you will see the first new lower demo. If you have noticed, the FIL has not been enacted yet. When will it be who knows! I think the rate will continue to go down until they feel they can enact the FIL with out the loss of their country to foreign investors. Where is that point I don't know. Could the currency rate still jump absolutely! The exchange rate could jump 10, 100, 500 etc depending on what happens on any number of points. But the slow rise in the Dinar has begun now what happens from here is anybodies guess. It might keep on its slow pace or could increase at a faster rate or jump to .01 to 1 or higher. But one thing I do know is it has started!

Whilst I agree on this the CBI at some point have to give the dinar a major push in raising the value, now whether that is to .33, 1 to 1 or 1.48, they will have to do it. I still believe the rate is being discussed behind closed doors.

Originally Posted by Adster

Whilst I agree on this the CBI at some point have to give the dinar a major push in raising the value, now whether that is to .33, 1 to 1 or 1.48, they will have to do it. I still believe the rate is being discussed behind closed doors.

Could be my man. Could be. I hope you are right.

sorry if this has been posted, i've been out of town.

حالياEconomic : source in the Central Bank : No change in the Iraqi currency now

Baghdad : Al-Sabah Al-Jadeed
An official source at the Central Bank of Iraq that the issuance of new categories of the Iraqi currency into circulation depends on the requirements of the Iraqi economy to meet the expenses of the state in the coming stage Mekdaali that there is no intention at present to the bank to change the Iraqi currency.
With regard to the supervision of the local banking activity in Iraq by the Central Bank of Egypt and means of reform, The source pointed out that the Central Bank will supervise banking activity level by the activities of banks towards the enhancement of their role in the implementation of monetary policy in particular through channeling the savings to the various aspects of investment, so as to achieve economic growth.

He added that the Central Bank had granted banking licenses of many Arab and foreign banks, whether licensing NTSB open a branch in Iraq or the establishment of a banking entity, It was also the opening of representation offices. He pointed out that this step is the beginning of cooperation and openness to the world towards the revitalization of the economy in Iraq, stressing that the Central Bank of Iraq still continue to sell the American dollar against the Iraqi dinar through a daily auction to be held by noting that this auction is a tool to achieve stability in the value of the Iraqi dinar by defending the exchange rate stable for a long time. This, in turn, will affect the general level of prices.

Translated version of http://www.newsabah.com/paper.php?name=News&file=categories&op=newindex&ca tid=20

Morning all....I'm going to the Scotia bank today to see if I can still get some Dinar. This is one of the two banks we could get dinar from, however the cibc charges a 45.00 fee....I'll get back to you later.

Hmmm.....there's some news posted at the "other" forum by IcarusII about 60% pay raises for government employees. IcarusII is not happy with this news. Sorry if it's been posted here and I missed it.

http://www.iraqdirectory.com

Any comments? No one is saying anything over there.


Caroline

Gotta love their government, NOT. As a government employee in England our wages are lower than most others! Different in Iraq! Maybe you guys could vote me in and we could oust Maliki?!

Seriously though, this is not a big deal and it won't help their inflation problems. They don't seem to realise that by increasing wages will not curb inflation, on the contrary. It's a last ditch desperate measure. Next step reval, their only way out of this mess.

Originally Posted by webinvestor

I'm not trying to argue. I'm not being negative. I'm ready for a bashing.

To me "raising the rate" is well, raising the rate. It could be raising a few points or it could be raising it 1450 points... and raising it 1450 points would be a reval, not just a "raise" up. JMHO.

Again, i'm not being negative here. I'm just giving my opinion on what they might have meant when they said that.

Also, in the article posted above they mention an "improved exchange rate". Pretty vague.

Having said all this i think it's some of the other statements made that are more important in the overall picture. The CBI wants to reduce inflation, prevent "dollarization" and "improve the purchasing power". Now, a small improvment in the exchange rate will not do those 3 things. A RV will.

Ok, let me explain a little better. The CBI wants to reduce inflation, prevent dollarization, etc., etc. through an improved exchange rate. If they are too conservative they will not meet their objective. They have been conservative and one of the goals in the past couple years was to have a stable currency. I would say its been stable - under-valued but stable.

Words are one thing - actions are another. Hopefully the CBI starts to take more aggressive action to match their stated goals.

No bashing here but the MOF made the point of the regional price parity issue as it related to shortages and contributed to inflation and a black market.

There is only one effective way to deal with that IE raise prices along with the currency rate to match the region. I think the political climate does not afford the CBI the luxury of taking their time in this matter. This might be why we are seeing what appears to be a panic buy back recently.

I'm of the opinion that once the rate is adjusted to overtake inflation then prices and rate together can be adjusted to reflect the region which is effectively the RV. At that point shortages begin to stop and the smuggling market is shut down. Market prices will lower for goods and the economic engine revs up white hot........ I hope the IMF is Monitoring us intently today,
"We all know what's coming boys, the quicker you do it the better for all concerned."

Nice one Wardy. We have to remember that Iraq is following the Marshall Plan, FACT. And we know what happened with Germany, they revalued their currency after bringing in a new currency. Well Iraq brought in a new currency 3 years ago, and it's staying at least until they join the GCC. Could be we're waiting on the signing of the Compact in mid December for our reval, we should have fil and maybe oil law done and dusted by then.

We have to sit tight, frustrating I know, hey, noone wants this more badly than I do, promised Mrs A a 2.5 million pad in the exclusive part of the village, and no going back on that!!!!

Just hope it's this side of xmas for all involved.

I am really with you on the this side of Christmas holiday.

What happen? I thought I read you were going to the hospital? Are you done already?

Kozmar

Originally Posted by Adster

Gotta love their government, NOT. As a government employee in England our wages are lower than most others! Different in Iraq! Maybe you guys could vote me in and we could oust Maliki?!

Seriously though, this is not a big deal and it won't help their inflation problems. They don't seem to realise that by increasing wages will not curb inflation, on the contrary. It's a last ditch desperate measure. Next step reval, their only way out of this mess.

Thanks for commenting on this, Adster. I thought you would, lol.

There's just so much information right now...it's hard to keep it all straight, much less fully understand it.

Caroline