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

Originally Posted by lndmn_01

I hope your kidding... The banks are selling Dinar to the CBI in exchange for dollars in order to fight inflation...

Inflation is caused by the pathetic exchange rate not the currency in circulation. The 14T in circulation only amounts to $9 billion. Only $9 billion dollars to support the medium of exchange of almost 27 million Iraqis. Japan has over 300 trillion yen in circulation (1999 figures). Since the 1 yen is the smallest denomination. It can only be at par with the US cents. At the exchange rate of 105 Yen / 100 US cents, Japan's exchange rate is almost in parity with the $1. Japan's currency in circulation is almost $3 trillion dollars worth. They don't even possess any oil. All their Toyotas, Hondas, Mitsubishis, Nissans, Lexus, Acura, Infiniti, etc... won't be selling without oil!

Anybody else notice that the announcement tab on the CBI website is empty. I think they use to have 2 announcements or something like that....

Announcements

Kurd wins Iraq's first medal in 20 years at Asian Games

05 December 2006 (Associated Press)
Kurd wins Iraq's first medal in 20 years at Asian Games | Iraq Updates
Harem Ali earned war-ravaged Iraq a bronze medal on Monday, ending the country's two-decade medal drought at the Asian Games.

Ali, a 21-year-old Kurd from the northern city of Sulaimaniyah, dedicated his medal in the 77-kilogram weightlifting class to Iraq: "This medal is to all Iraqis from the north to the south."

"I would like to send a message to all people in Iraq that I am part of Iraq, even though I am from Kurdistan. I want to make the Iraqi people happy — I hope I will with this result," added Ali, speaking in Kurdish.

His coach Khudayer Abbas Basha translated the comments into Arabic for a swarm of more than two dozen journalists.

"With this medal we hope to dry the tears of the Iraqi people and make them smile after a lot of suffering," said Basha. "We thank God for this medal and we hope that it can place a smile on the faces of Iraqis."

Now all we need is for Shabibi to "play ball" with the MoF and get this show on the road!

RV

Originally Posted by Elfwizard

So your saying that they have not been pulling dinar from Circulation, Via Auctions? But adding more into circulation? Better watch it you'll have a lynch mob after you.

If the CBI has been auctioning/selling just the USD ever since, there would be no single IQD left in circulation. The Iraqi's will all be holding the greenback. Since Jan 04, if the CBI has been selling USD eversince, the Iraqi's would've bought over $22B USD. That's over 32 Trillion IQD. If you believe the illusion that the CBI has been buying dinars/selling USD in all these auctions since Jany 2004, then you should be able to answer this question: How the heck did the IQD in circulation (M2) grow from the initial 4 to 6 trillion to 14 trillion?

Presentations sale of the dollar exceeds the purchase orders for the first time in the Central Bank Auction
Presentations sale of the dollar exceeds the purchase orders for the first time in the Central Bank Auction | Iraq Updates
05 December 2006 (Iraq Directory) (If previously posted, just ignore this!)
For the first in the Central Bank Auction, last Wednesday, offers to sell the dollar exceeded the purchase orders significantly.

A statement by the Bank said that the purchase orders by the four banks participating in the auction stood at 330 thousand dollars in cash for 20 million and 850 thousand dollars in cash yesterday.

Ali Al-Yasiri, a dealer with the Central Bank, attributed the significant drop in demand for the dollar to the decline of trading in the Iraqi market, because of the depressed commercial market due to the deteriorating security situation and the danger of dealing with large amounts of funds.

The statement pointed out that the Central Bank had covered all procurement requests at 1435 dinars to the dollar, 2 dinars lower than the price of yesterday.
The dollar, today, dropped 2 dinars, for the fifth day consecutively, against the ID.

The participating banks in the auction, today, presented offeres to sell the dollar reaching $ 2 million, bought by the bank in full at the exchange rate 1433 dinars to the dollar.

Can we get the IQD moving just a little faster?

GK...you have made your point, however many here will not agree with you...maybe you and Elfwizard can take this to PM

Originally Posted by Wm.Knowles

So, the aggregate amount of dinar that the CBI has bought is over 12 Trillion over the last year. But, we are not sure how much dinar has been sold. Is this right? Well, we know they have expanded the money base. Others have posted that the currency in cirulation has increased each year over the last three or so. So, I think that they were selling more dinar than they were taking in. However, it was clear that about the first of Nov. They began to remove dinar from the economy in a dramatic way. I appreciate the dialogue with you and your researching the numbers. We'll see how things pan out. They may continue to remove more dinar (based on net) over the next few days. We have two auctions left and this will help us understand what trend there is. So have a good evening. Thank You.

Hello William,

In 2004, they auctioned $7.1trillion dinars
In 2005, they auctioned $12.7trillion dinars
In 2006, they auctioned $15.5trillion dinars (YTD)

In total $35.4trillion dinars. How they get these back are from the selling those $100billion T-bills. Currently, they have about $600billions outstanding.

I hope this will help.

Dinars here we come!

Originally Posted by jedi17

GK...you have made your point, however many here will not agree with you...maybe you and Elfwizard can take this to PM

It's a free country. I'm not forcing anyone to believe or agree with me. I'm just sharing what the CBI numbers are showing. Anyone can go check Iraq's M2 numbers on the statistics page, "Key Financial Indicators". Currency in circulation is not a factor. What's important is a country's ability to cover its balance of payments via its foreign reserves in months of imports. Inability to cover Balance of Payments is the major cause why a country's exchange rate goes south. Folks tend to forget that the main reason Iraq has trillions of dinars in circulation is because of the pathetic exchange rate and that Iraq is a cash based society. That's it.

Al-Sabah new economic : Translated version of http://www.newsabah.com/paper.php?name=News&file=categories&op=newindex&ca tid=20

New decline in the dollar exchange rate in the daily auction of the Central Bank of Iraq

Baghdad : Al-Sabah Al-Jadeed
Record demand for the American dollar in the auction, the daily number "817" given by the Central Bank of Iraq Ankhvadhajdida in the rate of exchange amounted to "1431" dinars to the dollar.
The source said the bank has 2 dinars to the dollar value of the two expected at the same time continuing decline in demand for the American currency with the direction of the Iraqi Central, which raise the value of the Iraqi dinar at the expense of the dollar.

"Oil" : the closure of the port of Basra for four days for the maintenance and installed meters

Baghdad : Al-Sabah Al-Jadeed
An official source at the Ministry of points that the ministry has decided to shut down the oil port of Basra in the coming days and for four days to carry out the maintenance and installed meters exporting oil to record export volume accurately.
The source added that the meters will be installed through the tables Directorate of the South Oil Company (Barsion) American, that the expected completion of the monument and calibration will be at the beginning of next April.

Saab to develop water from the Tigris and Euphrates after completion of the projects and the Turkish Republic

Baghdad and agencies :
The Minister of Water Resources Iraqi Gamal Abdel Latif Rashid told "Life" that the development of Iraq as a geographical mouth flick in an awkward position because it is negatively affected by the action of those located on the course of the Euphrates and Tigris rivers, and Turkey, Syria, since those actions affect significantly to the amount of water contained to Iraq and quality.
He added that those actions meant the construction of big dams, The irrigation projects, The re-acceleration by the water drainage and sewage to the river, what affect activities in the health, agricultural and environmental.

"Financial" There will be an expanded meeting to discuss ways to develop audit work and achievements

Baghdad : Al-Sabah Al-Jadeed
The Ministry of Finance held a lengthy meeting attended by Mr. Jabr Al-Zubaydi statement to the Minister of Finance, Mr. Kamal visual undersecretary of the ministry and gentlemen Directors-General and advisers and a number of officials and workers in the ministry, during the meeting discussed ways to enhance the work of the Ministry of Finance, particularly with regard to the new financial year 2007.
He called Zubaidi During the meeting, all to make further efforts and raise the level of the work of the ministry and adoption of modern methods of administration and management away from the red tape and to facilitate the provision of services to citizens of all the forums and agencies of the Ministry.

The Central Bank adopted a new monetary policy to curb the phenomenon of inflation

Baghdad : Al-Sabah Al-Jadeed
Dr. Sinan Shabibi governor of the Central Bank of Iraq that one of the causes of inflation in Iraq Eaudali increase cash in circulation, which has driven the bank to a new monetary policy aimed at improving the dollar's exchange rate towards reducing its price several points in the auction, organized by the Central Bank for daily Cji p on the demand for buying the dollar in order to withdraw money from circulation.

Declaring war on traffickers oil derivatives

Baghdad and agencies :
The Iraqi government declared war on smugglers of oil products. In this context, recent reports in the past two weeks to control the Iraqi police in Basra for the two trucks were carrying kerosene smuggler.
Earlier, since the Iraqi police to a number of smugglers while the transfer of large quantities of fuel to the ship at the port in southern Iraq. The operation resulted in the deaths of five smugglers and two policemen.

Saudi Arabia : OPEC could cut production next month

Riyadh-agencies :
He said Saudi Oil Minister Ali al-Naimi : OPEC could cut production again when it met in December if the failure to reduce supply in recent times to achieve market balance.
The Minister of Petroleum in the largest oil-exporting country in the world oil prices is not the decisive factor in this regard.
In October the Organization of Petroleum Exporting Countries in Doha, OPEC cut production by 1.2 million barrels per day from November 1st to face the fall in oil prices by 25%.

Acts of sabotage in phone contact impeding a large number of switches

Baghdad : Al-Sabah Al-Jadeed
In a time when the Ministry of Communications to provide better services to citizens through a contract with the best global companies to improve the level of communication in Iraq suffered some lines and telephone cables to sabotage acts included a number of switches, which caused the obstruction of the process of technological communication with the public space.

Iraq stopped pumping oil from Kirkuk to Turkey

London and agencies :
Airline source said that Iraq stopped pumping oil through the pipeline that extends from the northern fields of Kirkuk to Turkey after his appeal for a short period.
The source said that oil pumping stopped yesterday afternoon, but I did not mention a reason for that.

An American Indian value of half a billion dollars

Washington and agencies :
The Company has signed a "Pratt and Whitney" American contract value of half a billion dollars to supply lines, "Fisher King" Indian engines to the new fleet of "Airbus" as well as the service of these aircraft.
According to the agreement BUYS "Fisher King" ten engines from the American company and a reserve engine, with the option to purchase ten additional engines for the Airbus 330 aircraft.
The American company also granted an exclusive responsibility for the management of the fleet renewal and repair aircraft engines to Shakrh Indian.

Closer, closer, thats it, closer, do not be afraid,
we just want to see what you look like at One 4 One +

RV

Going back to the debate about the Billions of Dinar in the Fed. I remember back in August when we were going thru the reval weekend cycles reading the US had asked for 12 billion and got 5 billion IQD. I also remember the big bank meetings in the UAE where Iraq struck a deal with all the major countries, US, Japan, etc that had major dinar holdings that they would not flood the market upon a reval guaranteeing a stable exchange and not destroying the IQD . .all that in exchange for long term discount oil prices where all the IQD would be slowly absorbed back into the CBI thus not dropping its value. Dont ask for a link . . .I just remember the whole story.