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

Interesting article I came across about Iraq currency.

In 1958 the banknotes of the National Bank of Iraq were circulating in Iraq. This was despite the fact that the ‘Law of the Central Bank of Iraq No.72/1956’, creating the Central Bank of Iraq, was gazetted on 1 July 1956. This law effectively changed the powers and the name of Iraq’s central bank, from the ‘National Bank of Iraq’ to the ‘Central Bank of Iraq’.

http://www.pjsymes.com.au/articles/CBI-First.htm

Originally Posted by DayDream

I found this statement while researching Foreign Investment Laws of other countries. This was under the facts surrounding Russia's FIL and thought I would post it FYI.

The extent to which the currency of the foreign country is convertible
into the currency of other countries.

A country's integration into world markets is highly dependent upon the
convertibility of its currency. The greater the extent of currency
convertibility, for both trade and investment purposes, the greater are
the supply and demand forces linking domestic market prices in the country
to world market prices. The greater this linkage, the more market-based
domestic prices tend to be.

R/V prior to FIL? IMO...Yes

Cheers!
DayDream

Another statement found under Cuba's FIL:

Guarantees Of Currency Convertibility And
Profit Repatriation Rights

Free convertibility of currency and unrestricted abili-
ty to repatriate profits are aspects of a foreign invest-
ment regime that are particularly important to inves-
tors.

R/V prior to FIL? IMO...Yes

Cheers!
DayDream

Sorry for the repetition...but someone was questioning this in the past several days and I thought I would try to lay it to rest once and for all.

Originally Posted by ronbo

Hmmmmm, this might cause a problem for some of us if it rv's at $1+. Some of us only have the 25K notes. What to do, What to do? Guess we'll just have to see if we can have it deposited?

I agree. Rules can change. Why would banks give you 25000 notes if you can't exchange but $5000.00 at 1:1 r/v? Somehow I think policy may be changed for accomodation.

Originally Posted by Christmas1971

Okay Dinar Peeps(people)

I just got off the phone with a Chase Bank Mgr. I was asking about cashing in my dinars without having an acct. He told me that there is a $5 service charge(which I am not sweating) he also said there is a 2 day turn around time(still ok) He asked how much did I want to trade in(for which I gave no answer) then he proceeds to tell me that they can only cash up to $5000 a day. It look like I'll be setting up sleeping quarters in Chase Bank. Has anyone else heared of any Nonsense such as this?????

I'm guessing that this is for those that are cashing in. If you were to open an account with them, I'm sure they would let you deposit all you want.

Originally Posted by Wm.Knowles

I don't know the number of fields they have, but I am told they produce around 9MBD. But my energy friends say they are pumping a lot of salt water (very bad sign) and they have passed peak oil production. They are having to go in and re-log and perforate their producing wells. Signs indicate they are on the down swing in terms of increasing their production. They'll be a major player for years, but Iraq has the possibility of surpassing them at some point. Maybe by then we'll all be out of the market and in some island somewhere.

You can find all kinds of news on SA hitting peakoil. And as far as we know, so far, Iraq has only had 10% of their land surveyed and they are up to 3mbd. So I would definately agree that the tide will change.

Take a look at these old dinar pictures. The old 5 dinar is the new 5000 the old 1 dinar is the new 1000 etc. Just different colors and 3 extra zero's.

Banknotes of the Middle East

Originally Posted by texaslonghorns

I just picked up 600,000 from Chase today. All 25k's and all uncirculated.

My point is IF they have the smaller notes they are saving them to make change with AFTER the RV

it's old but a wonderful "timeline" of what iraq needed to do in December 2005 to December 2006.

PDF Link

it's 22 pages but a wonderful read.
Here are my favorites:
28. Improving transparency and governance and combating corruption is one of the
government’s priorities. In this regard, the GoI will establish by June 2006 an audit oversight
committee, to become effective on or before December 31, 2006, including the participation
of independent international audit experts, to continue the work of the International Advisory
and Monitoring Board upon its dissolution in overseeing and making public audits of the
Development Fund for Iraq and oil export sales (structural benchmark). With the technical
assistance of the World Bank, the GoI is also reviewing its procurement system and
procedures, and strengthening external audit through training programs.

31. In order to facilitate the task of assessing the appropriateness of the current policy
stance, the CBI has formulated a monetary program for 2005 and 2006. A key element of the
monetary program is the projection for the growth of money demand. This projection is
related to assumptions and forecasts on economic growth, inflation, and any potential
structural shifts in money demand relating to further remonetization of the economy. The
projected growth in currency in circulation is consistent with the projected accumulation in net
international reserves of about US$1.7 billion and a policy of no lending to the government by
the CBI. The program includes a floor on net international reserves (performance criterion).
The monetary program may need to be adjusted during the program in light of the evolution of
money demand and other developments.

36. The GoI plans to (i) implement (with US technical assistance) a metering system for
oil production by end-September 2006; (ii) restructure oil sector operations toward putting oil
sector enterprises on a full commercial basis and with the ministry of oil and industry
regulator; and (iii) prepare a draft petroleum law in line with the new constitution and
international best practice by end-December 2006 (this law would define the fiscal regime for
oil and establish the contractual framework for private investment in the sector).
- 11 -
37. A modern payments system will be critical to enhance financial sector operations,
improve government financial management, and facilitate fiscal reforms such as the
monetization of the in-kind social safety net. In this regard, the GoI will implement payment
systems regulations by end-August 2006 (as a structural benchmark); commence operations of
the Real Time Gross Settlement system linking accounting systems of headquarters of
commercial banks to the CBI by end-August 2006 (structural benchmark); and commence
operations of a payments clearing system between the headquarters of commercial banks and
the CBI through the Automatic Clearing House by November 30, 2006 (structural
benchmark). The government also intends to implement a regulatory framework for, and
subsequent implementation of, a securities clearing and settlement system.

45. The GoI also agrees that, in addition to the general focus of each of the five quarterly
program reviews, the first review will focus, inter alia, on progress in further adjusting
petroleum product prices. The second review will focus, inter alia, on progress made with
increasing domestic prices of petroleum products, on the implementation of the law permitting
private imports of gasoline, and on the completion of the audit of the CBI. The second review
will also define quantitative performance criteria for end-September and end-December 2006.
The third review will assess progress made with increasing domestic prices of petroleum
products and in drafting a petroleum law. The fourth review will focus, inter alia, on progress
made with increasing the domestic price of petroleum products.

Establishment of an audit oversight committee, to become effective
on or before December 31, 2006, including the participation of independent
international audit experts, to continue the work of the International Advisory and
Monitoring Board (upon its dissolution) in overseeing and making public audits
of the Development Fund for Iraq and oil export sales.

Commencement of payments clearing system between the headquarters of commercial
banks and the CBI through the Automatic Clearing House (ACH). November 30, 2006

and EVERYTHING else after page 16 WOOT WOOT.

We are so close to an RV!!

What everyone needs to remember is that you are only speaking with branches of these banks. The major players are the Central Banks and the full service locations. The conversations that I have had with different bankers really showed me that if you are looking to CASH out you need to be at a central location. Most banks do not have enought cash on hand to handle those types of transactions. If you are depositing, it doesnt matter where you go as long as they are able to handle the exchange. I just plan on going into NYC.

Originally posted by Hslvrl9g:

If the Dinar Re-val at above $3.22 or near the $3.00 rate than Banks in the USA will have to merg in order to compete with banks in GCC & Iraq who the CBI have said, "Must have reserve capital above $50m(D)." With OIL money(3m barrels a day x $60.00(usd)= $180m (usd) daily) as a base, that is 65Billion(usd) a year(2007) is the projected income of Iraq.

It is very possible to see bothChase & Bank of America looking for Mergers in the banking world!!! As each will need larger reserves of 50Billion- 1Trillion to compete in future OIL banking world.
Just my brain- thinking again

Funny that you should mention that. There was a post here a few days ago talking about a major bank being merged with Chase bank around the 15th of this month. Hmm.