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

Originally Posted by Big Beaut

So good! So Good! You got DINAR!!! nah-nah-nah-nah-nah-nah-nah!!! Wooh! Great discussion-provoking question there!

Must be in reference to the joys of prescription drugs......it's much too early for drinking.

Originally Posted by Jola

Okay, I have asked for opinions about that article stating that the exchange rate will be 1000dinar/$1.

After all these posts, IT IS CLEAR:
- The author of the article is not an expert
- If I have to choose between what this article says ( 1000:1) and what "an official from CBI" says - that " the dinar will/should be the currency of choice" - meaning that the dinar will be equal if not higher than the dollar, then I will have to go with the second one.

Why?
The second one comes from CBI - and this is the most important thing

I like it more - who does not?

Makes more sense as a solution to the problems in Iraq - while the first one does not

Obviously we should put that article to rest. I got scared for a moment there, but hey, thanks to you guys, I am good now! :)

Ok here's my husband's explanation of the 1000/1
1000 dinar = to $1 is what their saying right
1000 dinar is the same as .69 which equals to the $1
now divide .69 into the dollar , and your get 1.44 times so that would be $1.44 and the rate right now is 1441. Which is about 1/3 of an old rate

Originally posted byWm.Knowles: So, we have an opinion out there that says the dinar will go to 1000 to 1.

This level of exchange concerns me for a several reasons:

1. I don't think the CBI would have removed such large amounts of dinar just to RV at such a low level. They could have just "adjusted" the rate and be done with it. While it may seem commonplace for many, in the world of currency, for a country to be able to remove such large amounts in a short period of time is REMARKABLE! And, they still have currency reserves around 12 Billion. The amount of currency they have removed predicts a much higher level than 1000 to 1. This is an extremely rare situation. Most countries are unable to mount such an aggressive intervention. Most just keep printing money and inflation goes on and on....

2. The CBI needs to control inflation. Raising interest rates is a common practice that our Fed has done over the last couple of years. It does NOT harm the economy. It is a method to "cool" the economy and is considered another method to decrease the base money supply. Not as dramatic and not as immediate as a direct intervention of exchanging currency reserves for currency in circulation, and it takes more time to be effective, but an effective tool just the same. Again, it demonstrates that the CBI has a plan.

3. At the 1000 to 1 level, this is within the range of what I would think would just "undo" the currency removal that has taken place. If they did this, all they would have accomplished would be to alert every currency trader, international bank, corporation and speculator that the currency was still too cheap (10 dinar to the US penny) and the demand could/would be greater. So, the level will need to be higher so as not to pump more dinar into the economy and as we said, raise the purchasing power of the iraqi people to allow them to buy goods made outside of iraq. (an maybe increase their confidence in the GOI. I hope this OPINION is helpful. Thak You

Alright you all have laid out a good discussion why the dinar will r/v at 1.47 or higher and you have conviced me. Well I never stopped believing in it just thought it might take a little longer than expected.
See what happens when you get no sleep. Don't think very good.

Originally Posted by crave681

So... my brilliant mind has deduced, after countless permutations , truncated algorithms, and angles squared by pi, that there probably wont be a an auction result for today posted at cbi.... time for a Guiness then. Brilliant!

ROFLMAO.......that hurt my brain just reading it, hahaha.....

الموافقة على زيادة اجور المستخدمين ... الى رفع قيمة الدينار العراقي على حساب الدولار
Approval of the increase in the wages of employees ...To raise the value of the Iraqi dinar at the expense of the dollar

above can be found in a story somewhere on the web page(link included)
unable to translate full page
Translated version of http://tareekalshaab.blogspot.com/2006/11/270.html

Prior to the 1st of November, the CBI did not hold any auctions for about a week to ten days. (If my memory serves me correctly). This was an unusual move, most of us equated it to some issue with Ramadhan and the issuance of the 10K gift. Think of it this way. Since the Iraqi economy is a dual currency economy, it presents the fiscal managers with some unusual dynamics to deal with. On the one hand, external trade and contractor payment must be made in dollars, internally the locals deal in dinars. By shutting off the money auctions for awhile, the CBI created a demand for dollars as the banks were required to pay for external goods and services in dollars thus depleting their supply. Once the CBI started conducting auctions we saw two things happen. The auction amounts were very high as the banks needed to refill their coffers with dollars and the CBI withheld the sale of dinars back into the economy. There was a slight reward and incentive for the banks to continue to buy dollars as the CBI continued to lower the exchange rate for the dinar. Now we see in the past few auctions that the effect of that first "holding back" of the dollar seems to have run it's course. Our thinking tends to be linear, in that we suspect that the CBI has embarked on a course of monetary intervention with a singular cause and effect outcome. But what if they are going to create a series of "Demand" situations by witholding auctions and then releasing dollars just as we have seen over the last 14 auctions. This "pause"in the auctions will allow the CBI to replenish their dollar reserves through the sale of oil and also create another vacuum of dollars at the local bank level. If the auctions don't start back up for a few days, I would envision that we'll see a repeat of the last two weeks with dollars going out, dinars coming into the bank, and the exchange rate dropping. This cycle may repeat itself several times before the CBI gets to it's desired level. IMO

Do you guys/gals ever get the feeling that WE are the ones inside the fishbowl? That everything has been planned out to the smallest detail including the date and amount of the reval and every detail inbetween? That they have known all along and the PTB have been sitting back getting a good laugh at us, watching us go up and down hanging on every word they trickle out?

Sometimes when I read these articles, I feel like they are thumping on the glass just to mess with our emotions. I am about ready to jump outta the tank and bite the friggin finger off!!!

Originally Posted by panhead

Must be in reference to the joys of prescription drugs......it's much too early for drinking.

no, no, no - I stay away from drugs - I've cleaned my whole house on 2 Excedrin, so I'm not a good candidate - grew up in the 60's and I'm the only one of my crowd who remembers it! I'm just naturally disgustingly cheerful most of the time, especially mornings!

بموجب اتفاقية مع مؤسسة التمويل الدولية (IFC)Under an agreement with the International Finance Corporation (IFC)

كابيتال بنك ينضم رسميا لبرنامج تمويل التجارة الدوليةCapital Bank to formally join the international trade finance

قمحية: الاتفاقية ستعزز علاقات البنك التشاركية مع 500 بنك اخرQmahih : the Convention will strengthen relations partnership with the World Bank, another 500

Capital Bank show a willingness to facilitate credits for purchasing Iraqi oil


Arabs today - on Alroashdh
The International Finance Corporation (IFC), "the private sector arm of the World Bank Group," yesterday's joining the Capital Bank-Export Bank and finance-formerly the World Trade Financing Program, to be the first bank in Jordan to join this program.
The program supports the financing of WTO trade exchange between emerging markets at the global level and enhance the flow of goods and services between developing countries. The International Finance Corporation (IFC) under this program, total or partial guarantees to support trade and financial cover risks arising therefrom, between the banks participating in the program, The program also permits the banks to increase the volume and value of their business operations and enable them to obtain competitive conditions appropriate.
And through trade finance officer in the International Finance Corporation (IFC), Mark Rosanski HE institution for the accession of Capital Bank for the financing of the WTO and the aspiration of the institution to increase its activity in the area covering the risks of trade finance in Jordan. which will help Capital Bank to expand its activities in this area and enhance its ability to provide the best services to its clients companies and flick strongly on the list of 500 international bank all over the world and strengthen its partnerships with the countries of the world and global integration. "
The director of the regional institution in the Middle East and North Africa, Michael Essex : "The World Trade Financing Program aimed to boost the export capacity of companies and compatible with the objectives of this institution in Jordan, as it paves the way for greater participation of the Kingdom of Saudi Arabia in the WTO."
The representative of the International Finance Corporation Goldes programs institution in the field of international trade finance and promote covered by the developing countries and most countries of the world in light of the continuing quest to promote international trade, explaining that the International Finance Corporation played a pivotal role in trade and export to Lebanon during the war will Alatva Goldes received by the bank and its leadership in the region.
It is worth noting that the International Finance Corporation has established a representative office in the Kingdom in 2005 in order to expand its activities and increase investment in the Kingdom.
He said the Director-General of the Capital Bank Haitham Qmahih "happy in the Capital Bank to consolidate our relations with the International Finance Corporation through the financing world trade. Capital Bank will be the expansion of the network of relations with the other banks. It will create valuable business opportunities to its clients in Jordan and the region. "
A Qmahih the bank's readiness to finance foreign trade operations with the brotherly Iraqi people, especially with regard to the implementation of the provisions of the Memorandum of Understanding between the two oil and the import of oil from Iraq since the bank owns more than 60% of the capital of National Bank of Iraq.
Qmahih He added that the bank is currently opening credits to facilitate the import and export of Iraq and through the Central Bank of Iraq and will be the first transaction through the agreement signed with the International Finance Corporation in a few days as they will be exported to Iraq from the Jordanian source apportionment of Capital Bank.
Qmahih said that the bank, which was founded 10 years ago to finance trade and the export market Jordanian and Arab enhanced banking services through an integrated package of services accompanied by the modernization level of investment destinations him explaining that the advantage of the Convention will facilitate the work of bank deposits to facilitate the work of foreign trade.
He explained that the Convention Qmahih demonstrate to enhance the confidence of international institutions, the Jordanian banking sector and competitive edge, adding that the sum total ceiling of $ 15 million covering 70 countries in the world and transactions soft and low interest rates as measures passed Capital Bank Corporation successfully and the value of the goods financed public pain Lage in the foreign trade of more than 500 million dinars.
For his part, Director of Studies at the Ministry of Planning and International Cooperation Jamal honey that the ministry had left for the Foundation and the World Bank to negotiate, leading to the signing of the Convention and supported by the ministry of this Convention, which add to the credibility of the local banking system and increase the ceiling allowed by the trade.

2006-10-172006-10-17
Translated version of http://www.alarabalyawm.net/?type=snews&&isdate=2006-10-17&&newsid=3996&&sectid=

Originally Posted by ozizoz

Do you guys/gals ever get the feeling that WE are the ones inside the fishbowl? That everything has been planned out to the smallest detail including the date and amount of the reval and every detail inbetween? That they have known all along and the PTB have been sitting back getting a good laugh at us, watching us go up and down hanging on every word they trickle out?

Sometimes when I read these articles, I feel like they are thumping on the glass just to mess with our emotions. I am about ready to jump outta the tank and bite the friggin finger off!!!

Now who's gonna help a fat girl off the floor?!! Thanks, alot!