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

Originally Posted by Wm.Knowles

Hello everyone. I received this question.

"As the Ministry of Finance purchases dinar from the CBI in exchange for dollars (dollars it receives from oil exports, as oil is traded in dollars), as its domestic expenditures are largely in dinars, aren't the dinars that the CBI receives in these auctions being put right back into the economy via the MoF"?

As we have seen, the CBI has removed a small amount of dinar in todays auction from a small number of banks. The exchange rate has dropped slightly. This continues to support our position that the dinar is drying up and we are at the end of a process where large amounts of dinar are available to be removed. We are looking for what we don't see, not from what we do. We do not see a large number of banks in the auction. We are not seeing a large aount of dinar being transacted. Just like we stated yesterday. This IS what you would expect prior to an adjustment in the dinar, i.e. an RV. Since the GOIs budget is around 40 Billion a year, excess money obtained by the MOF (GOI) is deposited with the CBI. The MOF can exchange a portion of that money for dinar to pay expenses. If oil monies are in excess of expenses, (which they are) then excess monies can be used for other things, increase currency reserves, retire outstanding debt, buy excess dinar from the economy and reduce the base money suppy. Or give the Iraqi people a 10000 grant/gift. (Which hasn't happened). All in all, a formula for economic health that few countries can achieve in the developing world. How long will this go on? We do not know. But, they (CBI) are not selling dinar so I would expect that the "pipeline" to the dealers will eventually dry up, since the CBI is the ultimate source of dinar. The dealers might have pools of dinar for a while, but that can't last forever. Additionally, this process of removing dinar while maintaining large amounts of currency reserves will eventually come to the attention of the large currency traders and demand should begin to increase (so will price). Have a good day. We will see if this week continues to support this trend. Your comments are always appreciated. thank You.

Thank you for your very informative and interesting posts. I always feel enlightened and reassured after reading your post as I am sure many others are.....You are a great asset to this forum..

Jordanian / Iraqi Oil Barter starts as quarrel over bilateral debt remains unresolved 2006-11-27)
By: Lindsey Shanson , CTO Data Services Co.

Iraq has informed Jordan of its readiness to transport Iraqi oil to the Hashemite Kingdom immediately, implementing a Memorandum of Understanding. Implementation is expected to proceed under a barter arrangement...



http://www.epicos.com/epicos/portal...&showfull=false

Source : no truth to the government's intention to re-impose curfew in Baghdad
Baghdad - (Voices of Iraq)

Denied media source in the cabinet health news about today, Sunday, on a large scale in the Iraqi capital on the government's intention to re-impose curfews in Baghdad.

The source said in a statement to the News Agency (Voices of Iraq) Independent that "the Office of the Prime Minister, Mr. Nouri Al-Maliki denies rumors about the government re curfew in Baghdad as of this afternoon."

The Iraqi citizens in the capital, have exchanged widely via telephone contacts rumor that the government had decided to re-impose curfews in Baghdad. , which was lifted in full as of this morning. After the imposition of the aftermath of the bombings that took place in Sadr City last Thursday and claimed the lives of hundreds of dead and wounded.

Affected those rumors on the street-Baghdadi, where the initiative to cut staff attendance and quickly return to their homes, As shops closed their doors, despite the rush of citizens to buy their needs them.

The mass media source in the cabinet that the government "will issue a formal statement, later in the day, it did not confirm its intention to impose curfews. "

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What could this mean? Makes me curious!

CBE : high rates of inflation in the last month
Source : Zawra
25 / 11 / 06
The Iraqi Central Bank by the high inflation in the last month to a ratio of 2, 7% from the previous month. Pointing to the adoption of a strict policy on interest rates and lifted to 16% for the payment of commercial banks to make fundamental adjustments in various bank interest rates to deal with this inflation. A statement issued by the Central Bank that the index of consumer prices in Iraq in the month of October 2006, express increase in the inflation rate and nearly 2, 7% compared with September of the same year. The statement added that the increase showed diverse rises in the prices of all goods and services, reflected in one form or another at the level of annual inflation which witnessed a remarkable increase of about 9, 52% according to the indicators of the month of October compared to September of last six, 51%.

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Originally Posted by kiko

Source : no truth to the government's intention to re-impose curfew in Baghdad
Baghdad - (Voices of Iraq)

Denied media source in the cabinet health news about today, Sunday, on a large scale in the Iraqi capital on the government's intention to re-impose curfews in Baghdad.

The source said in a statement to the News Agency (Voices of Iraq) Independent that "the Office of the Prime Minister, Mr. Nouri Al-Maliki denies rumors about the government re curfew in Baghdad as of this afternoon."

The Iraqi citizens in the capital, have exchanged widely via telephone contacts rumor that the government had decided to re-impose curfews in Baghdad. , which was lifted in full as of this morning. After the imposition of the aftermath of the bombings that took place in Sadr City last Thursday and claimed the lives of hundreds of dead and wounded.

Affected those rumors on the street-Baghdadi, where the initiative to cut staff attendance and quickly return to their homes, As shops closed their doors, despite the rush of citizens to buy their needs them.

The mass media source in the cabinet that the government "will issue a formal statement, later in the day, it did not confirm its intention to impose curfews. "

ÈÛÏÇÏ- ÍÙÑ ÊÌæÇá- äÝí :: Aswat al Iraq :: Aswat al Iraq

What could this mean? Makes me curious!

i think it means that yesterday they made a formal announcement letting the people know they did not intend to reinstate a curfew so the rumors would be dismissed.

Fox News just reported that President Bush has departed to the Middle East for planned talks in Jordan.

Adster, SGS or anybody.....I posted earlier about the Kuwaiti site that SGS referred to showing IQD as 1350.4445 and Adster posted back it has been like that for 2 months or so....it is updated again now showing 1348.1048 updated at 27/11/2006 at 13:23. Again, is this anything and why such a difference in what the CBI reports.

Rates

Originally Posted by CharmedPiper

Fox News just reported that President Bush has departed to the Middle East for planned talks in Jordan.

Sure he's got to the point where ultimatums will be issued.....

Wasn't around last week, did Rice make her visit or is that still to come???

Originally Posted by CharmedPiper

Adster, SGS or anybody.....I posted earlier about the Kuwaiti site that SGS referred to showing IQD as 1350.4445 and Adster posted back it has been like that for 2 months or so....it is updated again now showing 1348.1048 updated at 27/11/2006 at 13:23. Again, is this anything and why such a difference in what the CBI reports.

Rates

The CBI is the only official rate to go on. The Kuwaiti rate has been lower for a while since I've checked. I don't read anything into this.

FOX now reporting Bush and Maliki will meet for one of the most critical meetings in U.S. /Iraq history. They reported that the meeting is to find a solution to the difficulties. I have a solution start with revaluing your currency they would be amazed at the results this will produce....geez...!!!