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

Originally Posted by Adster

I get cheesed off reading the same crap that it will take another 2 to 3 years at a point or 2 a day, this is absolute BS and totally goes against what their government have said.

With inflation at 76% and growing can they wait for 2 years and see it grow to 150-160%?

Do you really see Bush hanging on for another 2 years for their economy to improve? No way, he'll oust Maliki if need be, and soon, he has to kickstart the US dollar and pay for the war/show it's been a success.

We know for a fact that the rate was 33 cents 3 years ago before the IMF set the prgramme rate.

We also know that in the 80s the rate was $3.22 which is still on the books of the Bank of Baghdad and the CBI site. Now why would they have kept these rates on their books???

Do some really think the 10k handouts that should have happened 6 weeks ago will go out at $6.80 per person, this has to be linked to a reval as per the Marshall Plan as the IC has been compared to the MC, right???

With all the debt forgiveness and Iraq crying out for foreign investment will they really allow their country to be bought up for fils as that will be the case at 1430 to the dollar.........

With the fil and soon to be oil law and IC they need to do something now, a big reval, not 1 or 2 points per day. I wish people would see this. The CBI and MoF have stated raising the dinar to be in parity with neighbouring countries/on a par with the dollar.

How can they import goods at 1430? Joe Hussain wants a computer from Uncle Sam, at $1k he'll pay 1,430,000 dinars, this likely??? Once the dinar is openly on the market there will not be enough dinars in circulation to allow people to import goods at this pathetic artificial rate.

Well said little Buddy. I get the feeling some people are new to the waiting sometimes. While a lot of us have been at this for going on three years, I still see people talking about we can't expect this to happen over night. This ride has been anything but a get rich quick scheme for me. While 3 years may seem like a short period, it sometimes seems as if it will never end.

Thanks Adster that was a great post and I agree completely.

Originally Posted by readytogo

If I am not mistaken, I believe the rate was not 1IQD=.33, but .33IQD=$1 which means that 1IQD=$3.33. If we are on different pages, overlook me, but if not WOOT!

No, at the time Saddam was found in the hole, one dinar was worth 33 cents. They had an official rate of approximately $3 but the dinar had not been traded at that level for years.

Iraqi government agrees on Kurds' budget, oil demands - official

06 December 2006 (BBC Monitoring)

A high-ranking official of the Kurdistan Regional Government [KRG] said that the Iraqi government had agreed on most Kurdish demands, which had been raised during talks between the Kurdistan Region's delegation headed by Prime Minister Nechirvan Barzani and senior Iraqi officials.

The regional Minister of Reconstruction and Housing Imad [Tafur] Ahmad and member of the Kurdish delegation to Baghdad told reporters that the Iraqi government had agreed to return to the KRG the amount of 482m dollars, which was earned from differences of oil selling prices in international markets. The amount would be added to the 2007 budget.

Regarding the extreme power shortage in Kurdistan Region, Imad Ahmed said the delegation had held several important meetings attended by Iraqi deputy premier Barham Salih. He added that the two sides agreed to increase the region's stake in the country's electricity network and to provide skilled engineers to supervise power stations.

Regarding the oil question, which was the key issue of the talks, Ahmed said the delegation would hold a series of talks with the Iraqi Oil Ministry and the Central Bank to place a new law on petroleum that would fulfil the Kurdish demands in relation to the crucial oil investment project.

The oil issue has triggered disputes between Iraq's central and Kurdish regional governments where the former insists on controlling natural and mineral resources while the latter demands that resources in its territories remain under its control according to the Iraqi constitution in order to guarantee foreign investment in the area.
Source: Al-Ittihad, Baghdad,

Iraqi government agrees on Kurds' budget, oil demands - official | Iraq Updates

Hhmmmm, this is a first, drying up maybe????


adster--- what do you make of this?-- on saturday after reading your thread i ordered some iraqi dinar on the internet with my bank halifax. today i went in to pick it up but when i got to the counter the manager told me i was unable to purchase any dinar. she said that they get there foreign currency from travel-ex [i think?] and that they were unable to get hold of any and there is none left in the country ?? i then tried marks and spencers-- no good , and then i went to nat west. here they seemed to think there was not a problem, so i have got a purchase note for £500 worth of dinar. the girl at the counter was only young ,so probably does not know the score . i can pick them up in acouple of days but i have i feeling i may get the same response as i had in halifax when i return. anyone else had this problem ?? cheers

Originally Posted by postcon

I know it's good to see the dinar rate move albeit in chunks of 1's and 2's but such minuscule decrements seem pointless given the enormity of the situation in Iraq and what is required of them in order to get the economic progress train moving in the right direction. We all seem to know what needs to be done. Despite numerous statements on economic recovery and that the dinar needs to return to former rates or in line with neighbouring countries, it appears that there must be something else in the background that is allowing the powers that be to drag their heels on this and stick to insignificant decrements. What could be stopping them from making a huge change to the exchange rate rather than pitiful 1's and 2's every time they have an auction? Is there more to this than meets the eye? Can the Rolclub wise people try to decipher the delays and the reasoning behind such minute changes in the exchange rate?

Thanks.

I certainly am not claiming to be one of the wise people here on ROL Club. Wondering if there is quite a tightrope they are walking, trying to wring out or shake out all the dinar possible at these lower rates before they flip the switch on a large move in the exchange rate, Vs. the need to kickstart the economy and buying power of the Dinar.

Trying to remove as much of the indirect investment as possible? Just a thought.

It would seem that this is not very effective in influencing us, our type who come here to the forum. But, it looks like it is still working with the banks, although at a much reduced volume compared to a couple of weeks ago.

Randy

Iraqi PM holds news conference on local policies, regional conference

06 December 2006 (BBC Monitoring)

[Al-Maliki] In the name of God, the Merciful, the Compassionate. May God's peace, mercy, and blessings be upon you.

The national unity government in Iraq has taken a host of procedures and initiatives to enhance the government's potential to encounter the challenges.

The first one is to promote Iraq's regional role and cement its relations with its Arab and Islamic context. The national unity government will, based on a diplomatic initiative, send envoys to the regional neighbouring countries so as to exchange views on issues of mutual interest, as well as to encourage the governments of these brotherly and friendly states to contribute to promoting security and stability in Iraq and supporting the efforts by the Iraqi Government to face terrorism and outlaw groups.

Once a favourable political climate is created, we will call for a regional conference, which will be attended by these countries that are keen on Iraq's security and stability and that are willing to commit themselves to assisting the Iraqi people to build up their federal and democratic political system, as well their unified and independent state.

Secondly, in support of the declared National Reconciliation Initiative, the meeting of the political forces will convene mid-December. All Iraqi political figures, parties, and organizations - whether members of the political process or otherwise - will take part in the conference in order to sustain national unity and agree on a national code banning sectarian fighting; opening up cooperation prospects among all Iraqi groups; and contributing to helping our homeland out of the current harsh phase where the forces of terrorism and outlaw armed groups are ferociously mounting their plots to spread chaos in the country, ruin the political process, and hinder the reconstruction process in our beloved Iraq.

We have also launched dialogues to expand the political foundation which the Iraqi state and its various institutions are based on. Iraq is for all the Iraqis. We are all partners in this country. Iraq's riches are for all. Every one has the full right to actively participate in building and running Iraq within the framework of the constitution that serves as the common platform combining all citizens under the umbrella of citizenship, regardless of their ethnic, sectarian, religious, and political affiliations.

After agreeing with the leaders of all parliamentary blocs that make up the government, we are willing to enhance the national unity government's authority and effectiveness through a cabinet reshuffle of certain ministries, which will be announced soon.

In order to protect the citizens and entrench security and stability throughout the country, the national unity government will carry on with its plans to rehabilitate and build the Armed Forces as soon as possible so that they could assume full responsibility for the security file in all governorates.

Signalling the start of reconstruction projects, the investment law, which we drafted, has been passed by the parliament. The law is expected to attract national and foreign capital to finance the country's major projects. Besides, it will provide the investors with wide opportunities and will protect investment promotion laws in Iraq.

The government has also drafted an oil and gas law, which will be presented to the parliament for ratification. The law is envisaged to play a pivotal role in strengthening the country's unity. Furthermore, it will ensure the fair distribution of all national riches to all Iraqi areas as national riches, particularly oil and gas, are - as stipulated in the constitution - the property of all the Iraqis.

In order to solve the problem of housing in Iraq, it has been decided to launch a national plan for housing, which seeks to build tens of thousands of housing units as soon as possible throughout the governorates. This plan will be supported by grants and loans. To achieve this goal, sufficient funds have been allocated in the general budget of 2007, which is an expansive budget. Also, the investment law will play a great role in achieving this ambitious project.

The national unity government is also working to improve the living conditions of all citizens and to develop the service sectors, support educational institutions, upgrade industrial and agricultural activities, and support cultural and sports activities.

Finally, we call upon all sons of the esteemed Iraqi people to maintain their national unity and social fabric and not to give an opportunity to anyone who may try to stop the process of construction and development. We further urge them to cooperate with the agencies of the state to enable them to carry out their projects to serve the country and citizens. Security is the solid foundation on which all these initiatives and projects are based. The government has embarked on these projects; they are now in the stage of implementation. You know that all these projects are based on a strong security foundation, which we are working hard to achieve. We have new and important ideas, and we believe, God willing, that they will be solid, strong, and capable of achieving great progress in the security field. It is known that success in this field has never been the responsibility of governments; it is a joint responsibility, in which the efforts of the citizens unite with the efforts of the government. The talk about the national popular effort is not confined to the field of security, but it extends to the political, economic, educational, and social spheres. This concerns national action, the national social fabric, the national unity government, and the constitution, which regulates all these relations.

Thank you very much.

[Correspondent] Ahmad Abd-al-Qadir, from the Biladi Satellite Channel. Mr Prime Minister, you said that delegations will travel to neighbouring countries to hold discussions. Will they hold discussions with the governments or with some groups that are in these countries?

[Al-Maliki] As for holding talks with these groups, our delegates have already talked to them, including those who are members of the political process, those who are not, and those who adopt negative stances. The delegates held consultations with those people throughout the Arab capitals in which there are Iraqis. They returned and submitted a report about what they accomplished. In light of this report, a general conference will be held for the political forces. We pin great hopes on this conference. As for the delegations that I spoke about, they will hold talks with the governments because we want a regional or international conference on Iraq to be held, but, as we have repeatedly said, this should not be based on the idea that the conference will think of finding solutions in its own way. Rather, this should be in light of what the national unity government wants. This is why the delegations will go to explore the situation and lay a foundation on which these regional countries or those outside the region may meet to support the effort of the government, which we expressed in this paper. If we find that there is sound common ground between the various countries that want to protect the constitution, the democratic process, the political process, and pluralism; and if we find a desire and willingness to cooperate to serve the interests of all parties, then we will call for a regional or international conference on the basis of the principle which we believe will support the government in its plans and initiatives.

[Correspondent] Ali al-Yasiri from Al-Hurra Channel. Mr Prime Minister, you said that there are political efforts that include calling for holding a regional conference on Iraq. Which countries are you going to invite and where will this conference be held? As for the security aspect, and as part of the security efforts you have referred to, what is the plan on the ground that you will pursue to stop the deterioration in the security situation and where will it start from?

[Al-Maliki] We are planning to invite our brothers and friends to a conference provided, as I have mentioned, that there is a common will to support the government. We are thinking of holding this meeting in Iraq as this in itself represents support for the Iraqi people and their political process. However, we have not yet done that completely. We have formed delegations and these delegations will travel and meet with the concerned countries that are interested in the Iraqi situation and that want to provide a service to Iraq to emerge from the predicament it is experiencing. After that, we will decide how the conference will be and whether it will be for regional countries only or will it extend farther than neighbouring countries and will it be an international conference or a regional conference. This is the first point.
As for the other point about the security situation, I do not want to speak prematurely about field action, but I will say that we have security experience in confronting terrorism. We have been confronting this plague for more than three years. Each time, we develop tactics, ideas, and plans to face this challenge. We had security plans in the past stage and we developed these plans. This time, we have come up with ideas, but these ideas are based on new principles; namely, to transfer security responsibility and to transfer command and control of the Iraqi security units and agencies, based on the transfer of the security responsibility for the governorates to the Iraqi Government. Therefore, the new ideas are commensurate with the authorities and capacities of the government in the next stage based on the development that took place of the resolution issued by the Security Council. There have been already some actions, and there will be more actions of a technical nature, which will be influential and effective to pursue the elements and figures that support terrorism or that lead the terrorist operations.

[Correspondent] Shakir Ahmad from the BBC Radio. Mr Prime Minister, the Baker-Hamilton committee is expected to issue its report tomorrow on the Iraqi situation. Will there be a dialogue between the US Administration and the Iraqi Government on how to activate these decisions or adopt what can be adopted of these decisions if the report is delivered tomorrow? Also, some leaks said that this committee might call for holding a regional or international conference on Iraq. This means there is something in common between what you have just said and what has been leaked. So does this mean that there will certainly be a regional conference?

[Al-Maliki] The [recommendations of the] Baker-Hamilton committee are not binding on the US Administration or the Iraqi Government. These are ideas, and the US Administration might seek some guidance from these ideas. Despite this, we are not afraid if there are new ideas because these ideas might talk about improving performance and developing the capacity to overcome the crisis. In the end, it seems that there are some fixed lines and that a strategy and understanding were developed in the summit meeting that was held in Amman. It seems that this meeting, with the understanding it contained on issues pertaining to the security file, the economic and political aspects, and even the regional factor, will not be greatly affected. Despite this, it is premature to speak about it now. We will wait until tomorrow to see what the report of the Baker committee will contain. I think that it will not include many changes. If there is anything, as it seems to me, and this opinion is not based on information, there will probably be suggestions about some tactics.

As for the regional conference, which could be one of the proposals, the scope, level, and framework of this conference are not clear. We have said that we will not agree to the convening of any international or regional conference on Iraq if that conference bypasses what the Iraqi people have achieved in terms of democracy, elections, and constitution. Any party that wants to have a regional or international conference must think of supporting the Iraqi people within the context of what has been accomplished and what they have accomplished in the past years, which were the result of great suffering and efforts that no one can confiscate. We welcome any regional or international conference when it is based on respect for the will of the Iraqi people and respect for the political and democratic process and what has been accomplished.

[Correspondent] Qasim al-Sa'idi from the Associated Press. How do you view Al-Sadr bloc's decision to suspend its parliament and government membership? And how would this affect the government's work?

[Al-Maliki] I have repeatedly said that these issues are up to the currents, parties, and movements. They are free to consider things the way they like in today's Iraq that allows for freedom of opinion and pluralism. Moreover, I have repeatedly said, and this is my opinion, that this state and this government is a government of partnership. Political partnership entails political commitments and so there could be no partner that does not shoulder its responsibilities. Based on this, I have repeatedly said that I hope that all decisions made, whether by Al-Sadr trend or others, fall within the framework of shouldering responsibility because this state is not owned by any party, be it the prime minister or the president of the republic. It is not owned by any party, current, or sect.

All sides are partners and the party that makes a decision should consider how it will serve the interests of other partners or harm them, and how it will serve the homeland's interests or harm them. However, I show respect for any decision that may be taken and at the same time I am committed to a state, government, and ministries that should continue work in a manner that serves national interests.

[Correspondent] Ahmad al-Salih from Al-Arabiayh Television. You spoke about several points most of which are related to security which is contingent upon powers. It was said that the issue of government powers to mobilize forces to maintain security in various parts of Iraq was discussed in Amman. Are there any fresh developments in this regard?

[Al-Maliki] Certainly. We announced this at the joint press conference that was held in Amman. The most important development with regard to the security file is that the Iraqi authority, the Iraqi Government, based on agreements reached and priorities set, is now capable of assuming security duties. It also has the authority to mobilize these forces and to build the Iraqi forces in a quick and qualitative manner that would reflect Iraq's ability to assume the security file.

[Correspondent] Ahmad Abd-al-Husayn from Al-Iraqiyah Television. Yesterday, there was a meeting between His Eminence Al-Sayyid Abd-al-Aziz al-Hakim with US President George Bush. Iraqi Vice President Dr Tariq al-Hashimi will hold a similar meeting over the coming days. How do you view these meetings, especially with regard to the security and political aspects in Iraq?

[Al-Maliki] Undoubtedly, he who holds talks with any country, particularly a country like the United States which has influence in Iraq, acts in line with Iraq's national interest and national political partnership with others and with this government. Certainly, these meetings will yield support for the national unity government and the political march.

This has been confirmed to me through media reports which said that His Eminence Al-Sayyid al-Hakim's meetings were very positive and that he underlined the principles, concepts, and constants to which we are committed so as to serve our national march.

I hope that all the upcoming meetings will be similar to the ones held between me and President Bush and between His Eminence Al-Sayyid Abd-al-Aziz al-Hakim and the US President in a bid to support our joint march.

[Unidentified correspondent] There are rumours that there will be a curfew on Wednesday.

[Al-Maliki] There is no reason to impose a curfew on the country. These rumours are baseless and hopefully nothing will happen to prompt us to declare a curfew, God willing. As you know, a curfew is not a government desire to obstruct people's daily lives, but rather a response to security threats so as to protect peoples' lives and national interests. As long as there are no such security threats, then there will be no desire to obstruct the movement of citizens or close government offices. We hope that no such measures will be adopted, God willing. Thank you very much.

Source: Al-Iraqiyah TV, Baghdad

Iraqi PM holds news conference on local policies, regional conference | Iraq Updates

Originally Posted by Socata 850

No, at the time Saddam was found in the hole, one dinar was worth 33 cents. They had an official rate of approximately $3 but the dinar had not been traded at that level for years.

thanks for that clarification, the question i've been haunted with, when the term "return to previous rates" is used i wonder which one?

Originally Posted by Adster

Hhmmmm, this is a first, drying up maybe????


adster--- what do you make of this?-- on saturday after reading your thread i ordered some iraqi dinar on the internet with my bank halifax. today i went in to pick it up but when i got to the counter the manager told me i was unable to purchase any dinar. she said that they get there foreign currency from travel-ex [i think?] and that they were unable to get hold of any and there is none left in the country ?? i then tried marks and spencers-- no good , and then i went to nat west. here they seemed to think there was not a problem, so i have got a purchase note for £500 worth of dinar. the girl at the counter was only young ,so probably does not know the score . i can pick them up in acouple of days but i have i feeling i may get the same response as i had in halifax when i return. anyone else had this problem ?? cheers

Hubby and friends are going to order from safed today, i wonder if when the time comes for delivery if there will be delays?

Originally Posted by rvalreadydang

Hubby and friends are going to order from safed today, i wonder if when the time comes for delivery if there will be delays?

Safedinar in the US? Let us know. Am sure they won't dry up across the board yet but I've not known Halifax say this before as they're a huge bank and have to order them in..............

Originally Posted by Treater

so roughly if this kept up at this rate for a while heres how it might look like over time, if the don't RV it before.

12/06 1430
01/07 1400
02/07 1370
03/07 1340
04/07 1310
05/07 1280
06/07 1250
07/07 1230
08/07 1200
09/07 1170
10/07 1140
11/07 1110
12/07 0980
01/08 0950

Thank you for posting these numbers. However, I think we can expect a dramatic acceleration of the exchange rates. If the world remained constant, then these number would reflect a very good return on dollars invested and would excede what could be obtained in any other investment. But some real factors have to be taken into account. These will effect an increasing acceleration of the exchange rate. Factors such as:

The increasing removal of the dinar will have an increasing acceleration of the rate of exchange. Increased demand for the dinar will be generated from speculators, banks, corporations etc. The higher the rate goes, the more others will want to invest. Already we have seen the dinar go from pretty paper in a box to an exchangable currency at several international banks.

An increasing rise in GNP. This increases demand as a result of internal investment and foreign investment. Which, when increasing oil production is included, the demand for the dinar and increased GNP could be huge. Recent laws such as the FIL and HCL when passed and enacted reflects a plan for this to happen. When you incude the advances in the agri sector, the GNP is expected to grow. (a big bunch).

Increases in currency reserves from oil and accountability of GOLD reserves provides a financial base that allows for removal of more currency and further investment, and a rise in the iraqis disposable income, creating jobs, income and a decrease in unemployment. (Hopefully a decrease in violence).

So, to expect the currency to continue to rise in a 2 to 3 dinar rate over time is unrealistic. Expect the currency to RV at a faster rate if not with a "bold adjust". It still remains grossly undervalued when compared to the assets of Iraq and and their potiential for incrediable growth in a short period of time. Also, I still maintain they need to increase the purchasing power of the dinar to stilulate the economy and increase confidence in the GOI with the iraqi people. Thank You.