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

Originally Posted by $onedaysoon$

Oil Revenues And The Foreign Exchange Regime In Iraq

another old one but good

Thanks for this. I've never seen this article before.

One of the main things i got from this is that the CPA gave the CBI large powers to control monetary policy. If they depend largely on oil revenues for government spending then the CBI has too much power - power they don't really need. The CBI should have these powers in a free market economy, which at present it is not. This is the plan but Iraq is not there yet.

From the article:

The present Foreign Exchange Regime (FER) and the resulted Foreign Exchange Rates (FeR) are controlled by the CBI and are directly manipulated through the daily auction which maintains the rate stable at about NID1,460 for one US dollar even when the dollar has been devalued against major foreign currencies. The stability of FeR may give the impression that the Iraqi economy is enjoying genuine stability as a result of the CBI policy. However, it is rather misleading to relate the FeR to the effectiveness of the monetary policy designed by the former CPA and implemented by CBI. Also, it is not realistic to conclude that the independence of the monetary policy (CBI) from the fiscal and reconstruction policies of the government is necessary to ensure macroeconomic stability. More important, such an assumption may give a false indication that the rapid and radical economic liberalization strategy of the CPA is workable. Unfortunately, this is not the case and the current stabilization of FeR has the same bases of the former fixed rate regime, ie oil revenues, government expenditures, and availability of foreign currency for imports. There are some differences of less significance, however. The CBI – not the government – has the political power to utilize the oil power in determining the FeR in the context of the implemented free foreign trade and free flow of foreign capital policy.

Originally Posted by Webster

I would dearly love to know if the Europeans or Asians are able to buy and or sell dinar at a local Bank? So far I know that Americans, Canadians and English are all able to at least BUY dinar from certain banks. They don’t want to know anything about the dinar in Australia. They will soon change their tune when the dinar r/v. I am sure we have Europeans and Asians able to answer this question. Thank you in advance.

I'm in Taiwan now and nothing here at all. I even checked with a Chase Bank in Taiwan - no. Also, while travelling i checked with banks in Singapore and Hong Kong in the past couple weeks and they do not deal with Dinars right now. From my DD, the Dinar is not available here... IMO, probably not until it is opening traed on the forex.

Originally Posted by day dreamer

We'll numbers still dropping, but I'll sure be glad when we can see an r/v rate

Soon, Day dreamer, SOOOOOOOOOOOOON

The Republic of Iraq Council of Ministers-the governmental communications Media Relations Press Release Press release / Monday, 12-4-2006

Finance Minister discuss with the Japanese ambassador in the final stages of launching the Japanese loan for the implementation of large projects for reconstruction in Iraq He met with the Minister of Finance, Mr. Baqir Jabr strike with the Japanese ambassador in Iraq.

It was during the meeting, which was attended by Minister Altenanning discuss the final stages of the Japanese loan to Iraq and the actions taken to implement large projects earmarked for them.

The minister pointed out that the contract will be signed early next week after obtaining approval from the Council of Ministers to authorize the Minister of Finance to sign it to be forwarded to the House of Representatives for approval.

For his part, the Japanese ambassador expressed his country's keenness to develop cooperation between the two friendly countries and the contribution of Japanese companies in the rebuilding of Iraq and the development of infrastructure which, the Japanese government reaffirmed support to the government and people of Iraq a friend.

Sotaliraq.com

Wasn't the ISX supposed to be open right now??
I don't have stock was just curious as per what would happen since this would be the first one since pres. talabini ratified investment law

I just received an email from Warka confirming my stock picks and that they will be executed in todays trading session on isx!

Originally Posted by kaz

I just received an email from Warka confirming my stock picks and that they will be executed in todays trading session on isx!

Unless somethings wrong with my computor, I don't think they will be having a auction today.
Look at the time it is now in baghdad and when the market opens and closes.
I've been watching it all night and they have never shown open

What days is the ISX active?
Currently, the ISX trades twice weekly:

Mondays, 10AM - 12:30PM;
Wednesdays, 10AM - 12:30PM, both Baghdad local time (current Baghdad time: 12:07pm, 12/04/2006). ^ return to top
When is the Iraqi weekend?
The Iraqi weekend was recently changed from simply Friday, or informally Thursday & Friday, to Friday and Saturday. This was done to better align the Iraqi business community with the rest of the worls, including the neighboring Arab nations. This change was also the catalyst in moving the ISX trading days from Sunday & Wednesday to Monday & Wednesday

I have been reading all these posts back and something threw me off: how come that we still discuss what is going on with the CBI auctions , when THEY TOLD US?!

What they told us is:

- we fight inflation - so we will do it by raising the dinar value with every bank auction by 2 points - have you noticed that even when there in no one participating, they still raised it?
The auctions are worthless. With or without, the bank is raising the exchange rate by 2 points anyways. So they are not real auctions anyways in my opinion. And the numbers are pre-calculated - I would say - that much in, that much out...

- we fight inflation by raising interest rates ( 14, 16%, blah, blah)

That's cool, they are supposed to do this - as many of you have said these are the bank's tools to lower the inflation rate...and they are in the book...

Now, the question that showed up is " is this the only thing that they do by running these auctions and pulling dinar out of market"?

Some of you said: it looks like that! (see the new article that showed up today with Shabibi's remarks).

However, we forget the previous articles that say - I would say at least one article in five - that " the dinar should/will become the currency of choice of iraqis people (over the dollar)".

If all this was ONLY about inflation, these comments/statements regarding the value of the dinar compared to the dollar would have not been made, I believe.

When phrases as " we want to raise the value of iraqi currency" and " iraqi dinar shall be the currency of choice" show up together, THAT IS A STATEMENT THAT CAN NOT BE IGNORED. On top of that, while a low reval is still a possibility, in my math 0.14 or .04 is not equal or bigger than $1, is it? The currency " of choice" would be still the dollar.

...however, the " dinar will be the currency of choice" comes from Shabibi and it has been published in more than one newspaper, in more than one article.

Okay, I guess this is what I wanted to say.

I think Dinar Excited previously made a presentation of why he believes the reval will happen before the 15th - so I won't repeat what he said...I totally agree with him.

Mr.WM said that removing that much dinars ( over 1 trillion) out of market indicates almost a "panic" measure - even if it is out of books. A " monumental move". I believe the next " monumental move" is the reval.

And the most recent indication: Post # #29225 by Susie ( here is the link to the article:
http://64.233.179.104/translate_c?hl...px%3Fid%3D2678

... 'The slight rise or decline of the dollar does not obstruct the growth or value of the dinar is expected to become Iraqi currency is stronger than before with the introduction of the balance of 2007 and the strategic application of the new monetary policy announced by the government last year'."

Combined with the previous statements, it is pretty clear to me that the Dec 15 is the end of our ride.

I would like to add: sometimes we are getting stuck with the small details and forget to step back and see the whole picture. While I believe this is it - just as I wrote here - of course, there is always a chance that things will not go this way. But I think you got my point...

Cheers.

Disclaimer: JMO

Jola: WOW one of the all time greatest posts.....................

And about security: here is how the Government will go about it: the Kurds showed them what to do - once again.

A joint security coordination between the federal government and the Kurdistan province
Translated version of http://www.sotaliraq.com/
(صوت العراق) - 04-12-2006(Voice of Iraq) - 04-12-2006
ارسل هذا الموضوع لصديقThis issue was sent to a friend

وكالات: بحث مستشار الأمن القومي الدكتور موفق الربيعي بعد ظهر أمس مع رئيس وزراء حكومة اقليم كردستان العراق نيجيرفان بارزاني، التنسيق الأمني بين الحكومة الأتحادية وحكومة الأقليم.Agencies : consider National Security Advisor Dr. Muwaffaq Rubaie yesterday afternoon with the Prime Minister of the government of Iraq's Kurdistan region, Najirfan Barzani, security coordination between the federal government and the territorial government. وأفاد بيان صدر عن مكتب الربيعي الى أن بارزاني قدم ايجازاً حول تجربة الأقليم في مجال الأمن ومكافحة الإرهاب وما تم انجازه في مجال انتقال المسؤولية الأمنية في الأقليم.A statement issued by the Office of spring that Barzani concise on the experience of the province in the field of security and counter-terrorism and what has been done in the area of transition responsibility for security in the province.
من جهة ثانية، تباشر الحكومة العراقية خلال الأيام القليلة القادمة تنفيذ خطة أمنية لبسط النظام والإستقرار في مدينة الصدر تشمل القيام بحملة من أجل جعل السلاح في يد الدولة حصرا.On the other hand, proceed Iraqi government in the next few days the implementation of a security plan to impose order and stability in Sadr City, including a campaign to make the disarmament exclusively in the hands of the State.

الاتحاد البغداديهEuropean البغداديه