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

Iraq Declares War on Petroleum Smuggling
28/11/2006
Source: Todays THV

Smugglers were loading gasoline on a ship at an illegal port in southern Iraq when police surprised them with a raid that ended with five smugglers and two policemen dead.

The October clash at Abu Flus was one of many attempts by security forces trying to stop smuggling of Iraqi petroleum products to neighboring countries, a practice that is costing the country billions of dollars every year.

Smugglers are selling millions of gallons of Iraqi gasoline, kerosene and diesel fuel outside the country every year. They then reap huge profits by selling the petroleum products back to the government for import.

"The most serious challenges facing the oil industry are smuggling and terrorism. They are both hitting the national economy, robbing Iraq and blocking development," said Oil Ministry spokesman Assem Jihad.

Despite the fact that Iraq has the world's third largest proven oil reserves, the government is forced to import refined oil products to cover domestic demand. As recently as September, the country's three main refineries were working at half their pre-invasion capacity, processing only about 350,000 barrels day compared with about 700,000 barrels a day before March 2003.

Aging refineries, corruption and attacks by insurgents on infrastructure, such as pipelines, have been blamed for the production shortage.

In September, the oil ministry estimated that it would spend $800 million on imported oil products in the last four months of the year.

Many people try to subsidized their meager incomes through purchasing government-priced oil products and selling them to smugglers who take the products by boat or tanker trucks to Jordan, Syria, Kuwait, Iran and the United Arab Emirates.

Jihad said Iraq buys oil for about 54 cents a quart and sells it within the country for between 7 and 13 cents, subsidizing the remainder.

"This is encouraging smuggling to neighboring countries," Jihad said.

Jihad said it was impossible to calculate how much petroleum is smuggled. Sabah al-Saidi, who heads the Iraqi parliament's anti-corruption committee, said the Oil Ministry inspector general has listed 13 Iraqi companies smuggling oil and says they are backed by Iraqi political groups.

"We are losing an average of $700 million a month. Most of the products are smuggled by sea."

In a report two weeks ago on smuggling, Iraqi government said security forces had captured two tanker trucks in the southern province of Basra while trying to smuggle kerosene.

"The main mission at the oil ministry is to eradicate this phenomenon," said Oil Minister Hussain al-Shahristani in a recent television interview.

Amer al-Baldawi, who serves on the Iraqi parliament's economic committee, said one solution would be to raise prices in Iraq to those in neighboring countries.

Gasoline at some Baghdad gas stations costs about a dollar a gallon, but it takes hours of waiting in the line to fill up. On the black market, gasoline costs about $1.40 a gallon.

In the United Arab Emirates, by contrast, it costs about $1.76 a gallon and in Syria and Jordan it's about $2.40 a gallon.

More than 90 percent of the Iraqi government's income comes from oil exports.

Iraq's oil industry losses since Saddam Hussein's ouster in 2003 stand at about $15 billion, Jihad said.

Before the war, the Beiji refinery, the country's largest, produced more than 2.5 million gallons a day, nearly half what the country needed. But, Jihad said, the refinery currently produces only about 400,000 gallons a day.

Oil smuggling first began in the 1990s when Iraq was under U.N. sanctions. The government was in dire need of hard currency, and smuggling oil to Iran and selling it to international markets as Iranian oil was the easiest way to get cash.

The chaotic security situation and continuous attacks on pipelines, tanker trucks and refineries have had an enormous impact on Iraq, which has the world's third largest oil reserves after Saudi Arabia and Iran.

In a bid to curb the smuggling, the government has stopped supplying some gasoline stations near the border and is forcing fishing boat owners to prove they truly are fishing before they can buy gasoline. All boats using the Shatt al-Arab waterway that leads to the Persian Gulf now must be registered.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2658

Originally Posted by crave681

Mr Knowles , dont you agree that the Soros' of the world will buy the entire money supply of iraq if it revs at .04 ??? Wouldnt the cbi be better served if they just "bit the bullet" and paid us indirect investors off at 1:1 or > ?
Thanks

Better yet, answer why they (the big investors) have not already bought in, after all these are bargain basement prices at 1436 to 1, why wait for 25 to 1?

I too would like Knowles' opinion on why this is not happening by big investors.

Originally Posted by Vipor

I would think it would be best for the CBI to start at $0.04 or something low (not that I want this of course). From their standpoint, they are not putting dinar in circulation any longer. They are in fact trying to take as much as possible OUT of circulation to minimize their liability. Thus, whatever dinar is out in circulation upon reval (regardless of rv amount) has to be covered regardless of whose hands they are in (ours or the big dawgs). If it lets loose at $0.04, many small fish who are tired of this coaster will be cashing in. True that the big dawgs may buy in as much as possible but at the same time the CBI has a chance to grab some at $0.04 and take it out of circulation. at a higher rv amount, the big dawgs may be reluctant to buy in, plus the CBI is now liable for ALL the dinar in circulation.

I may be way off here. I'm just thinking out loud. Sorry.

I would agree with that, but if I may throw you a curve, If you and I go cash in at .04 (of course we wouldn't) that Dinar would never see Iraq as banks are for profit businesses, they would hold/speculate a larger revalue themselves.

Originally Posted by Inscrutable

Better yet, answer why they (the big investors) have not already bought in, after all these are bargain basement prices at 1436 to 1, why wait for 25 to 1?

I too would like Knowles' opinion on why this is not happening by big investors.

I agree! The big boys have the opportunity of a lifetime to buy as much as possible now! I have noticed that prices are up in ebay with the desperate few who are willing to offload around $675-$700.

I am confident that there will be a major appreciation sooner than we think. Everyday the grime news we hear causes fear and panic but in light of all of this the dinars continue to appreciate each and every day!!!

The course has been set and we just need to stay patient and wait, unless someone knows something they can share without causing a panic. In the case of the Nancy Reagan psychic, told to us by SGS, I believe that it will be in December and no later than January.

Just my thoughts.

Originally Posted by ordinaryseawoman

Dollar demand hits new low in 2006
28/11/2006
Source: Aswat Al Iraq

Buying demand for U.S. dollars hit a new low for 2006 on Tuesday and the dollar rate was down two dinars amid expectations of lower demand for the U.S. currency as the Iraqi central bank moves towards raising the dinar rate.
The Cenbank said in its daily statement the dollar demand reached $0.850 million compared to $20.580 million on Monday.
The central bank covered all bids received from local banks which were $0.850 million in cash.
The exchange rate was at 1,437 dinars per dollar, two dinars down from the previous session.
Only six banks participated in Tuesday’s session, the lowest number in 2006, and none of them offered to sell dollars.
The Iraqi central bank runs a daily auction on Sunday through Thursday.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2657

it's going to be intresting to see what the next two actions bring this week $ & how many banks take part in the actions!

Originally Posted by MOM2TWO

Out of curiosity, are the women promised anything equally as enchanting?? Like a household staff of Geoge Clooney look a likes, or a mall open 24 hours with unlimited amount of funds??? Anything???(seriously, I am curious?)

Please don't respond by saying they get a lot of Vietnamese currency.....please...LOL LOL

I have actually never heard if women get something. I still have lots of friends in Iraq. I will ask and see what kind of answer I get.

BTW, I posted an answer on silverstreaks thread.

Gloribee

Originally Posted by Dinar Duchess

Civil Strife.......sounds better than Civil War, anyway IMHO, its not Civil War its street gangs trying to put the fear of god into the community and threaten the stablility of the country....

Today on the Anti-Bush Radio Wave, there were Interviews after Interviews of this topic. The Reporters must of been the only ones say those words, "Civil War". What gave their Liberal ways away was after all these reports of Bush and others, Including Saudi and Other countrys telling in every report some thing totally different, The Radio wave just kept using those words, "C.i.v.i.l. W.a.r.". I believe these stations want them to be in "Cival War". Dang I have said it three times now too.

This verify's what I was thinking allday listening to the crap of the reporting News Station's Today. Appreciate you Bro'.

Originally Posted by Offshore-Wealth.com

Exactly,

The violence is as Wm. states, very focused in and around Baghdad. Always has been a hot spot, and always will, even long after Saddam is hung, this will always be a trouble area of violence.

What we have is no civil war, far from it, but the press sure wants it to look this way, especially since this sells into the democrats win of house and senate and their opposite strategy than Bush. They present it as if the whole country is killing each other, and this is far from the facts.

What we see is the typical turf wars that have existed for centuries, and it is the same shia and sunni savages which have always tortured and killed. This is not normal, these are savages, inhuman group, not the mass majority as we are led to believe over and over again in press.

Suicide bombers, as we know, are a special breed, the poorest, the most illiterate, the most misled and the most lost of all Iraqi's, and they are both shia and sunni's, not Kurd or Turks or Christian sects, these are the radical followers of the radical leaders such as Sadr militia.

As I see it, the moment Maliki was too weak to deal with Sadr militia, this gave them the signal to be even more savage, so their true colors are now exposed, along with similar savage killings on sunni side. This will never end until poverty ends, for these factions are driven to kill for if you cannot read or write, you have only one choice, to follow blindly. Put money in the hand of these followers and even the most illiterate will figure it out, and want to live over death by suicide.

We have all gotten very involved in learning and understanding the mind set in Iraq, and what I have learned is the only way to solve issues is to hang the almight dinar over their heads. You want to follow Sadr, you get ZERO from oil wealth. Eliminate the poor and you eliminate the blind followers, simple. Each day they hold back on distribution under impending oil distribution law, the more killings we will see. I feel it has ramped up as Sadr and other radicals know this will be the end of their power, so they are making a violent last stand, and the press loves it.

Maliki has a decision to make, and he must make it now. If he is fearful of going against Sadr by disarming, then cut them off from oil wealth, a very effective and strategic tool to end it now without having to disarm them. After all, they are the poorest slum in all of Baghdad, so imagine that the rest of Iraq's people became wealthy, and they remain slum poor? The would not even be able to afford bullets, and this would be the end, and even the most illiterate will be able to figure this out and stop. We need the oil distribution law completed with provisions to deny payment to any group who supports violence, end of story, revalue and economic growth will explode.

Good luck to all, Mike

I know, it's dangerous. lol. Listen, when we first went into Iraq their exchange rate was $3.20 back in 1989 and after 13 years of sanctions thier exchange rate was .33. Please explain to me how the Iraqi people are going to settle down and embrace democracy for 1000:1? Heck, even 100:1? The more I think about it the more I think it needs to at least reval to .33 or higher. I think it would kick start the economy alot better at $1.48 though. For the naysayers I say to check the SDR for iraq even now before you spout off. Yes, we are the indirect investors but with the fiscal surplus in 06 and what's projected for 07, we should realize that they aren't concerned about having to pay us. Remember that the big dinar holders are other governments that will only exchange for oil later on, so the Iraqi government realistically doesn't even have to back that currency since oil will do it. I honestly believe it will reval high and I truely hope SGS's physic is for real. lol.

Originally Posted by D-Day

It just keeps getting better!

Lookie here from Oanda...

Wednesday, November 29, 2006

1 Iraqi Dinar = 0.0007259 US Dollar

1 US Dollar (USD) = 1,377.60 Iraqi Dinar (IQD)

Interbank rate +/- 0%

This means:
You buy 1 Iraqi Dinar : 0.0007259 US Dollar
You sell 1 Iraqi Dinar : 0.0006669 US Dollar
You buy 1 US Dollar : 1,377.60 Iraqi Dinar
You sell 1 US Dollar : 1,499.40 Iraqi Dinar

Learn about the new Iraqi Dinar
Median price = 0.0006669 / 0.0007259 (bid/ask)
Minimum price = 0.0006669 / 0.0007259
Maximum price = 0.0006669 / 0.0007259

OR... XE.com - The Universal Currency Converter ® (much improved as well...)

That would mean that you could make a profit just buying and selling your dinar! Buy $500 with your dinar (688,800 IQD), then sell it again for (749,700IQD) = 60,900 IQD profit. If they actually stocked dinar in the bank, you could just buy and sell all day increasing your holdings!

Have I lost it?