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

Hello everyone, I can tell from reading the posts that everyone is excited about the auction results. Your posts are far more understanding of these issues than a month ago. So today, a very small amount was transacted. Along with those yesterday, Its easy to say that a trend maybe developing as a "drying up" of the dinar. Also, the CBI raised interest rates. This is another method that a central bank reduces the base money supply as a response to reduce inflation. Not as dramatic as the daily auction but a common and important step that shouldn't be overlooked. As we know, there is a bottom to how much they can pull out. We also know that they are not returning to an exchange rate that would "undo" what they have been doing. So, in a short time this all has to come together expressed in a higher cost for the iraqi currency. i.e. an RV. Everyone have a good holiday. I have enjoyed this month all of your PMs, comments, disagreements and agreements. I fell we are all on the edge of another period of excitment.

Originally Posted by shotgunsusie

they were not only accumulating stray dinar into the cbi but they have been accumulating a large stockpile of foreign currency reserves which will be used to back the dinar as well. whoever said they traded yen for dollars they were correct. they apply the yen then to the reserves and the japanese apply the dollars to their reserves.

yes, what the auctions have recently been doing by selling dollars is preparing them to revalue the dinar. the out of country auction amounts in the auctions began in mar/apr of this year. thats when they started accumulating foreign currencies and re-absorbing the stray dinar.

whoever is calculating the auction amounts over the last few months needs to take into consideration that they werent always buying up dinar, but other foreign currencies must be calculated into that as well.

With this article, it makes me wonder if they are going to peg the Dinar toa basket of currencies....such as the US dollar, the Jordan Dinar, the Euro...etc, could be really good for us.

Originally Posted by DayDream

If you were given 2 currencies...one equal to $1USD...the other worth 1.01 USD, which currency would be your currency of choice? Well a penny is a penny, I'd choose the one worth 1.01USD, wouldn't you?

Well the CBI is banking on that choice being made also...

The first page : new fiscal policy leading to a rise in the exchange rate of the Iraqi dinar

Baghdad/ long

In an unprecedented led the Central Bank of Iraq ambitious campaign to promote the exchange rate of the Iraqi dinar according to a plan designed to absorb liquidity and the reduction of inflation rates expressed at heights and clear on the prices of goods and services.

The presentation of the Central Bank through the auction, organized by the daily buying and selling of foreign currency sums of dollars, where they were able to achieve a gradual reduction of the dollar exchange rate started from 1470 dinars to the dollar to reach the price at the meeting yesterday transactions related to 1444.

Al (short) from official sources in the Central Bank, said that this policy would continue to thrive and become the Iraqi dinar currency of choice in daily dealings. With those sources expressed its confidence in achieving this policy even finishing off phenomenon (dollarization). The financial sources noted that government agencies, companies and several parties overestimated the adoption of the dollar currency dealings content in the market, including played an influential role in the exacerbation of the situation inflationary and this policy comes in the wake of several warnings by the Central Bank pointed to the escalation of the situation to the inflationary rate of 76.6% during the month of August last year compared with August 2005. it depends on the impact of an interest rate increase granted by the pointing of 6 to 12%. With the bank issuing of the bonds amounted to Release hundred billion dinars rewarding benefits are paid through the 182 days, But the reluctance of banks to respond to civil actions that carry the Central Bank to adopt a policy to strengthen the exchange ambition and confirmed in a statement pursuit and determined action to reduce the inflationary situation at various levels.

On the other hand, currency exchange market witnessed weak demand for the dollar and other foreign currencies, including advances of the price of the Iraqi dinar prelude to potential Anaaksh on the prices of commodities and services in the local market.



Pretty much says to me that the purpose of these auctions are to bring the IQD to the point that it will be worth MORE than the USD and the people will CHOOSE to use their own money as opposed to the dollar.

Loop the Lop....HANG 'EM high!!

Any thoughts?

Cheers!
DayDream

Loop the Lop....HANG 'EM high!!

I'm not sure But I think you just coined a phrase

Everytime someone quotes it they tell the story that surrounds it...i like it

Originally Posted by DayDream

If you were given 2 currencies...one equal to $1USD...the other worth 1.01 USD, which currency would be your currency of choice? Well a penny is a penny, I'd choose the one worth 1.01USD, wouldn't you?

Well the CBI is banking on that choice being made also...

The first page : new fiscal policy leading to a rise in the exchange rate of the Iraqi dinar

Baghdad/ long

In an unprecedented led the Central Bank of Iraq ambitious campaign to promote the exchange rate of the Iraqi dinar according to a plan designed to absorb liquidity and the reduction of inflation rates expressed at heights and clear on the prices of goods and services.

The presentation of the Central Bank through the auction, organized by the daily buying and selling of foreign currency sums of dollars, where they were able to achieve a gradual reduction of the dollar exchange rate started from 1470 dinars to the dollar to reach the price at the meeting yesterday transactions related to 1444.

Al (short) from official sources in the Central Bank, said that this policy would continue to thrive and become the Iraqi dinar currency of choice in daily dealings. With those sources expressed its confidence in achieving this policy even finishing off phenomenon (dollarization). The financial sources noted that government agencies, companies and several parties overestimated the adoption of the dollar currency dealings content in the market, including played an influential role in the exacerbation of the situation inflationary and this policy comes in the wake of several warnings by the Central Bank pointed to the escalation of the situation to the inflationary rate of 76.6% during the month of August last year compared with August 2005. it depends on the impact of an interest rate increase granted by the pointing of 6 to 12%. With the bank issuing of the bonds amounted to Release hundred billion dinars rewarding benefits are paid through the 182 days, But the reluctance of banks to respond to civil actions that carry the Central Bank to adopt a policy to strengthen the exchange ambition and confirmed in a statement pursuit and determined action to reduce the inflationary situation at various levels.

On the other hand, currency exchange market witnessed weak demand for the dollar and other foreign currencies, including advances of the price of the Iraqi dinar prelude to potential Anaaksh on the prices of commodities and services in the local market.



Pretty much says to me that the purpose of these auctions are to bring the IQD to the point that it will be worth MORE than the USD and the people will CHOOSE to use their own money as opposed to the dollar.

Loop the Lop....HANG 'EM high!!

Any thoughts?

Cheers!
DayDream

GREAT FIND!!!! Sorry no FARM JIG for this one today BUTTTTT

""""""TURKEY JIG EVERYBODY""""""""


we can all smell the RV just like that pumpkin pie cooking!!
Awesome work everybody!!

Originally Posted by _Apollo_

I don't mean to be a wet blanket, and this might not mean anything, but this cancels out the "Final" meeting that we knew about for December 11-12.

We all thought that Iraq taking back control of their oil proceeds would be the key to the revaluation, but since Iraq is the one asking for the IAMB to sick around, it’s possible that control of the proceeds will have nothing to do with the revaluation after all.

After reading the article several times, it seems that even the IAMB was surprised to be asked to stick around. This would confirm all of our thoughts that Iraq was being given the green light from the IAMB to take control.

I would think that if this was directly linked to a revaluation, and if we are correct in our assumptions that this is where the CBI has been heading towards for the last two weeks, then our first assumption was wrong, and that the IAMB's control will have nothing to do with it.

In fact, this could be an attempt to calm worries and to bolster a revaluation. With the IAMB still in place, the world community as well as the Iraqi people can be assured that with all of the corruption going on in Iraq, this is one area that is untouched.

Just my opinion and a little positive spin,

Everyone have a great Thanksgiving, and I for one am going to try and unplug! (yeah, right...)

Dan

Ii is my understanding that the IAMB is an oversight commitee set up by the UN, and that they have nothing to do with actual control of the revenues of Iraqs oil, they only report on revenues, corruption, smuggling...etc. If the UN has given Iraq control of their oil, by cancelling the oil for food program then this Dec.12-13 meeting will have no effect on the r/v and this could happen at any time.

Originally Posted by kiko

Genel and Addax Report Results of Kurdistan Flow Test
23 November 2006 (Rigzone)

Genel Enerji A.S. (Genel), part of the Cukurova Group, and Addax Petroleum Corporation on Monday reported flow test results for the recently drilled TT-04 well, the first well on the Taq Taq field drilled by Taq Taq Operating Company (TTOPCO), the joint venture company formed by Genel and Addax Petroleum to carry out the petroleum operations in the Taq Taq license area in northern Iraq.

Three reservoir intervals were tested separately and flowed at an aggregate rate of 29,790 bbls/d of light, 47 degrees API oil with low gas oil ratio. The intervals tested were a 106-meter perforated interval in the Shiranish formation that flowed at a rate of 3,940 bbls/d, a 55-meter perforated interval in the Kometan formation that flowed at a rate of 12,930 bbls/d, and a 86-meter bare foot interval in the Qamchuga formation that flowed at a rate of 12,920 bbls/d. Oil flow rates from the three intervals are in a 64/64" choke size. In each instance, the flow rates were constrained by the limited capacity of the surface test facilities. Evaluation of these flow test results is ongoing.

Commenting on the results, Dr. Ashti Hawrami, the Minister of Natural Resources of the Kurdistan Regional Government of Iraq, said; "This is a great achievement and we look forward to establishing our initial export of oil from the Taq Taq field in 2007. Additionally, we will be utilizing some of the oil resources to satisfy the local requirement for the refined products and power needs. We will continue our exploration campaign to achieve our export oil target of one million barrels per day of new oil from the Kurdistan Region over the next few years. This will make a significant contribution to the oil revenues of Iraq to be shared by all peoples of Iraq."

Commenting, Mehmet Sepil, Chief Executive Officer of Genel Enerji said: "We are very pleased with the test results of the TT-04 well. For the first time, a privately owned Turkish Oil Company is developing a major oil field.

We believe that this project will make Genel Enerji a world-class exploration and production company in the international petroleum industry. This project will also generate wealth for the people of the Kurdistan Region and of Iraq while also helping to meet the urgent energy requirements of the region."

Commenting, Jean Claude Gandur, President and Chief Executive Officer of Addax Petroleum said: "This is a significant milestone for Addax Petroleum. The Taq Taq field has the potential to be a major source of reserves and production growth for the company. As demonstrated by these test results, the production potential of Taq Taq is truly significant and highlights the under-developed potential of the region. We believe that the Taq Taq field can deliver excellent value to the people of the Kurdistan Region and of Iraq and for our shareholders."

The TT-04 well is the first well drilled on the Taq Taq field, drilled using the TTOPCO-owned drilling rig and located some 500 meters from the TT-01 well, the Taq Taq field discovery well drilled in 1978. TT-04 was spudded in mid-May and reached a total depth of 2,286 meters in early September.

Interpretation of data acquired, including wireline static reservoir pressure data, indicate the presence of a significant and extensive fracture system and a single oil column in the Taq Taq field through the Shiranish, Kometan and Qamchuga formations in excess of 500 meters. The TT-04 well was the first of a three well drilling program by Genel and Addax Petroleum. The drilling of the second appraisal and development well, TT-05, is now in progress.

The Taq Taq field is located in the Kurdistan Region of Iraq some 60 kilometers northeast of Kirkuk, 85 kilometers northeast of Erbil and 120 northwest of Sulaimaniyah.

Genel Enerji A.S. is a Turkish registered company and owned by the Turkish Cukurova Group. The Cukurova Group is among Turkey's largest industrial and commercial conglomerates with numerous investments ranging from automotive, telecommunications, media, textiles, energy and information technology services.

Addax Petroleum is an international oil and gas exploration and production company with a strategic focus on Africa and the Middle East. Addax Petroleum is one of the largest independent oil producers in West Africa and has increased its crude oil production from an average of 8,800 barrels per day for 1998 to an average of approximately 91,500 barrels per day for the third quarter of 2006.

Genel and Addax Report Results of Kurdistan Flow Test | Iraq Updates

Again, this sounds like the HCL is implemented as thet are talking about profit sharing.

Originally Posted by Wm.Knowles

Hello everyone, I can tell from reading the posts that everyone is excited about the auction results. Your posts are far more understanding of these issues than a month ago. So today, a very small amount was transacted. Along with those yesterday, Its easy to say that a trend maybe developing as a "drying up" of the dinar. Also, the CBI raised interest rates. This is another method that a central bank reduces the base money supply as a response to reduce inflation. Not as dramatic as the daily auction but a common and important step that shouldn't be overlooked. As we know, there is a bottom to how much they can pull out. We also know that they are not returning to an exchange rate that would "undo" what they have been doing. So, in a short time this all has to come together expressed in a higher cost for the iraqi currency. i.e. an RV. Everyone have a good holiday. I have enjoyed this month all of your PMs, comments, disagreements and agreements. I fell we are all on the edge of another period of excitment.

Good point,

What we have seen is very positive, and has not been seen before, so what does this mean for revalue. I think it is becoming more obvious every day. This direction was intended, and if it were left to reverse and return to 1470 range, then what would have been accomplished? NOTHING! This in itself is significant, and like stated above, there is only so far CBI can go, and we are seeing it slowing in volume, so it is just a matter of time.

Happy Thanksgiving to all, Mike

Originally Posted by shotgunsusie

Economic : losses topples company carbonated drinks in Babylon

Babel morning The suspension of work in a company carbonated drinks in Babylon province to sit more than 90 staff working in the company, demanding payment of their salaries which did not happen three months ago and the work in the company, said Deputy Director of the company, Eng Abbas Rahim in a statement to economic (morning) : The working conditions deteriorated after the cessation of support , Developed by partners in the property who are currently living outside the country, which resulted in material losses and the decline in production, which arrived in 1000 the day after the company produces 22 thousand in the previous day fund for other reasons, including ages, machines and operating a rise in the prices of raw materials used in industry, such as seignorage t and others as well as the rise in fuel prices, which leveled off in recent times which reflected negatively on the salaries declined in the starting Yeh then stopped months ago. The workers appealed to protestors in a statement by the government and officials of the Babylon province to stop the deterioration and to provide the necessary support to it, because it is one of the large industries in the province. It should be noted that the company was one of the productivity of the state and operate three production lines and employs more than 400 staff and workers, is one of the milestones in the industry in the Furat.


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I wonder what softdrink company this is that they are referring to. I sure hope it is not Baghdad Softdrink.

Announcement No.(812)

D.G. of Foreign Exchange Control

The 812 daily currency auction was held in the Central Bank of Iraq day Thursday 2006 / 11/ 23 so the results were as follows :

Details Notes
Number of banks 6 -----
Auction price selling dinar / US $ 1441 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 5.290.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 5.330.000 -----
Total offers for selling (US $) ------ -----

1. Cash amounts sold to the bank and its customers were USD(1.290.000) at a rate of(1441+1+10=1452)IQD\USD .

2. The amount sold to make transfers abroad was USD (4.000.000) at a rate of (1441-2)+ one dinar as a bank fee and exempt the transferred amount from conversion fee.

ALSO from ISXdata Site:

Baghdad Time: 05:26pm, 11/23/2006 ~ market is closed | $1 USD = 1448.64 IQD ^

Not updated since 10/9/06

Originally Posted by jedi17

Ii is my understanding that the IAMB is an oversight commitee set up by the UN, and that they have nothing to do with actual control of the revenues of Iraqs oil, they only report on revenues, corruption, smuggling...etc. If the UN has given Iraq control of their oil, by cancelling the oil for food program then this Dec.12-13 meeting will have no effect on the r/v and this could happen at any time.

Exactly,

And with the new corruption discovered under their noses with oil profits going to militia factions, makes you wonder if this is not the reason to keep them involved. Until corruption is under some better control, I think it is best to leave a watchdog on guard.

Good luck to all, Mike