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

Just PMd ya mate... nice going there and the ID is increasing with its credibility as time is gradually surfacing with more substance on their ID value.

YB.

Originally Posted by Adster

I believe Tiff found this a couple of pages ago, nice find Tiff!

Now let me explain my thoughts, the 15-20 cents is not the dinar but the government bonds and debt obligations, you might have remembered a few months ago when the bonds were being traded? Well, just a bit of background on the bonds. When a country is in debt, they get creditors to agree to a payoff amount.

Not all of Iraq's debts, but some, are bound up into a "bond issue"...much like a city or state in the US finances the building of roads and schools. Those are municipal bonds. These are Iraqi Debt Bonds, and they were sold in the London Debt Bond market a month or two ago. They are appearing as very bullish items in many emerging bond funds,..i think T Rowe Price offers them now as well. Well this news illustrates that the initial bullish expectations on them have come home in spades,...as demand for them grows, the actual bonds are sold and resold, each time the price goes up. People pay more for them, because they are more and more confident that Iraq will be around long enough to pay them a healthy return for them. A very good sign!...That's a layman's description,...I'm sure there are some more knowledgeable about the specifics than i am...Anyhow, this is a very good sign for the currency and the dinar will be in more of a demand than the bonds.

In fact, I'll go as far as to say that if the bonds are worth .15 to .20 I would estimate the real deal to be worth as of now about 1.50 to 2.00! IMO In the open market. All good folks, all good.

Originally Posted by Raditz

Security challenges will inhibit the oil sector’s recovery, leading to a contraction of real GDP in 2005, but gradually expanding oil output should result in real growth of 6% and 7% in 2006 and 2007 respectively.

Financing outlook

Iraq’s financing gap will narrow in 2006 before widening substantially in 2007, in line with trends in the current account. Capital inflows should meet most of the shortfall. Recent IMF data suggest that Iraq’s debt stood at US$113.6bn prior to the first phase of the Paris Club debt write-off in November 2004. The Economist Intelligence Unit now expects this to decline to US$62.9bn by end-2007.

Outlook for 2006-07: Exchange rates
The New Iraqi dinar (NID) was broadly stable in 2004, at NID1,453:US$1, but has been under some pressure in 2005. This is largely because of political and security concerns, but also, as the IMF reports, possibly because of an increase in the dollarisation rate in certain sectors of the economy. However, given the CBI’s commitment to maintaining what has become a de facto peg, and the apparent resort to foreign-exchange “rationing” (under other guises) in some instances in the CBI’s daily currency auctions, the average official rate had depreciated to only around NID1,475:US$1 by end-September, and has stayed at around that level since. The CBI appears reluctant to use its large accumulated foreign-exchange reserves (of around US$9bn) to satisfy dollar demand, and has not been minded to raise local-currency interest rates sufficiently to attempt to stem the pressure on the dinar. In the present security situation we expect pressure on the currency to remain high. Nevertheless, CBI intervention should maintain a relatively stable rate of about NID1,470-1,475:US$1 in 2006-07.

hmm, what you think about that statement?

http://www.iraqdirectory.com/DisplayNews.aspx?id=1518

Wouldn't worry too much about this Raditz. The EIU is a British based think-tank, and has been fairly bearish on Iraq and the dinar.
They don't speculate, they are mainstream, and probably look down on all currency and forex speculators in general.

You guys are the greatest. I hang on every word. I can't wait to meet you at the party. We all have to wear name tags.

Originally Posted by flygirl1

You guys are the greatest. I hang on every word. I can't wait to meet you at the party. We all have to wear name tags.

Could do, but all the name tags will have the same written on them, 'rich and retired' with a :0) next to it! LOL.

Originally Posted by Adster

Could do, but all the name tags will have the same written on them, 'rich and retired' with a :0) next to it! LOL.

You mean like:


to Roll and Relax perpetually.....


YB.

Originally Posted by YogiBrood

You mean like:


to Roll and Relax perpetually.....


YB.

Or Rol and ex, gold ones at that! lol.

Newsflash,

I don't see it like that at all.

One, when the dinar pegs, those that have them in possession will profit. Those that do not will not.

Kozmar

Boy, I wasn't around much yesterday so I has sooooooooooo much reading to catch up on.

Neno, you sure are getting your groove. Nice posts.

Same to the usualls for all their informative posts. You really keep us thinking

and

dreaming of that wonderful party..............

Kozmar

Originally Posted by sowingseed

I think Dinar has great potential over time. It just has to go up a few cents against the dollar, and we could more than double out investment. And that alone would make Dinar a good investment, but when we look back at history it is possible that the Dinar value could be as high at $0.20 to a US Dollar. If that is the case, $100 in dinar could potentially return $20,000. If the value reached, over time, is the pre-Desert Storm value of around $3.00 that same $100 in dinar now could potentially be valued at $300,000.

I sure think $100 for a potential $300,000 is a great investment...even if it takes 5 years for dinar to get there.

I totally agree with you. I have 1.5 mil of the sweethearts, i will today get myself another 2 mil from dinarinfo.com . Some people think it will PEG really soon. I think it can be anywhere from 1 week to 1 year.. Nobody knows. But its wroth the wait and the investment to me.

Originally Posted by newsflash

Right, so let me see if I got this right. You guys seriously belive that in a couple of months (years whatever), every average iraqi family will be cruising around in their new sportcars. I mean the value of the dinar will rise everywhere if it ever goes up, but I guess after a reality check the Iraqi government realizes that making every iraqi houehold rich could improve the risks of inflation. And most probably they will take a few zeros off their currency.

Seeing as 90% of Iraqi families don't have a pot to piss in they will not be driving around in their sports cars. Well maybe a select few. ;0)