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

Morning folks, we all ok???

Not got too much time today, saw the rate has dropped to 1422, so looks like more of the same. I saw this also, anything I should know??? The below seems big, looks like we're clsoe for our beloved oil law! Apologies if it's already been posted here which I'm sure it has!!!

As always the Kurds hold the cards due to them having most of the oil! What they want they will get, and so they should.

All falling into place nicely. Who's ready for a wealthty 2007?!


Scotsman, United Kingdom - 1 hour ago

Iraqis near to a deal on sharing oil wealth

IN BAGHDAD

IRAQI officials are near agreement on a national oil law that would give the central government the power to distribute current and future oil revenues to the provinces or regions, based on their population.

If enacted, the measure could help resolve a highly divisive issue that has consistently blocked efforts to reconcile feuding ethnic and sectarian factions. Sunni Arabs, who lead the insurgency, have opposed the idea of regional autonomy for fear that they would be deprived of a fair share of the country's oil wealth, which is concentrated in the Shi'ite south and Kurdish north.

The Iraq Study Group report stressed that an oil law guaranteeing an equitable distribution of revenues was crucial to the process of national reconciliation, and thus to ending the war. Without such a law, it would also be impossible for Iraq to attract the foreign investment it desperately needs to bolster its war-ravaged oil industry.

A deal could be reached within days, according to officials. The major remaining stumbling block concerns the issuing of contracts for developing future oilfields. The Kurds are insisting that the regions reserve final approval over the contracts, fearing that if that power were given to a Shi'ite-dominated central government, it could ignore proposed contracts in the Kurdish north while permitting them in the Shi'ite south.

The national oil law lies at the heart of debates about the future of Iraq, particularly the issue of a strong central government versus robust regional governments.

On the drafting committee, Sunni Arabs have allied with the Shi'ites against the Kurds, who have sought to maintain as much regional control as possible over the oil industry in their autonomous northern enclave. Iraqi Kurdistan has enjoyed de facto independence since 1991, when the American military established a no-flight zone above the region to prevent raids by Saddam Hussein.

General George W Casey, the senior US commander in Baghdad, and Zalmay Khalilzad, the US ambassador, have urged Iraqi politicians to put the oil law at the top of their agenda, saying it must be passed before the end of the year.
The drafting committee is made up of politicians from the main Shi'ite, Sunni and Kurdish blocs in government. They began talks months ago, but the pace picked up recently.
At the start, the Kurds fought to ensure that regional governments had the power to collect and distribute revenues from future fields. They also proposed that revenues be shared among the regions based on both population and crimes committed against the people under Saddam's rule. That would have given the Kurds and Shi'ites a share of the oil wealth larger than the proportions of their populations.

But those demands have now been dropped, said Barham Salih, the Kurdish chairman of the drafting committee. "Revenue sharing is an accepted principle by all the constituent elements of the Iraqi government, including the Kurds, and that is the unifying element that we're all hoping for in the oil law."
The Kurds are willing to make concessions because a national oil law could attract more foreign oil companies to exploration and development in Kurdistan.

Some Kurdish leaders also believe that the concessions are a worthwhile price to pay for having a stake in the much larger revenue pool of the country's oil industry. The southern fields accounted for 85% of Iraqi crude production last year, partly because northern production was hampered by insurgent sabotage. The south has an estimated 65% of the country's 115 billion barrels of proven reserves.

The working draft of the oil law re-establishes the state-run Iraq National Oil Company - founded in 1964 to oversee oil production but shut down by Saddam in 1987 - and sets production thresholds for creating new regional companies.


Scotsman.com News - International - Iraqis near to a deal on sharing oil wealth

Originally Posted by Jola

Susie,

Did I miss that?

HCL was ratified already? Or you were talking about FIL....Cause I was just thinking , right before reading your post stating that , that if Taliban ( okay, Talabani) ratifies the HCL there would be another 15 days of waiting ...

let's clear this up, please...

sorry i thought the fil was what was asked about. disregard my ramblings on that note.

Originally Posted by day dreamer

Announcement No.(822)

D.G. of Foreign Exchange Control

The 822 daily currency auction was held in the Central Bank of Iraq day Sunday 2006 / 12/ 10 so the results were as follows :

Details Notes
Number of banks 10 -----
Auction price selling dinar / US $ 1422 -----
Auction price buying dinar / US $ 1420 -----
Amount sold at auction price (US $) 14.830.000 -----
Amount purchased at Auction price (US $) 1.000.000
Total offers for buying (US $) 14.830.000 -----
Total offers for selling (US $) 1.000.000 -----





D.G. of Investments

Daily price Bulletin buying and selling Sunday 2006/12/10

Currency
Currency Code
Selling Price In IQD
Buying Price In IQD

US Dollar
USD
1424.000
1423.288

European Euro
EUR
1881.816
1880.875

Sterling Pound
GBP
2785.914
2784.521

Canadian Dollar
CAD
1238.369
1237.749

Swiss Frank
CHF
1182.822
1182.231

Sweetish Krone
SEK
207.807
207.703

Norwegian Krone
NOK
231.733
231.617

Denmark Krone
DKK
252.406
252.280

Japanese Yen
JPY
12.252
12.245


The above price represent reference rate and does not from any commitment on the Central Bank of Iraq.

Note: The prices of the bulletin issued on Sunday will adopted for Monday also due to the

i have been on the cbi website several times now and it is still showing thurs auction anyone else having this prob, cheers alan

Iraq central bank buys up currency to fight inflation
By THOMAS WAGNER

BAGHDAD (AP) - Iraq's dinar currency has risen to a nearly two-year high against the U.S. dollar, as the nation's central bank tries to fend off skyrocketing inflation by buying up the currency with dollars at its daily auctions.

Most of the money the Iraqi government earns is in U.S. dollars because oil exports are the main source of its income, and the bank has about US$14 billion in foreign assets, said Mudher Qassim, the Central Bank of Iraq's director of statistics.

On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million U.S. dollars sold by about a dozen banks, the central bank said. Even larger amounts of dollars were sold during 10 of the auctions in November.

"Our goal is to reduce inflation, which is now running at about 50 per cent, by improving the dinar and thereby making imported goods cheaper," Qassim said in a telephone interview, adding that more than 80 per cent of all Iraq's tradable goods are imported, he said.

In a report in August, the International Monetary Fund also said inflation was escalating in Iraq. The 12-month rate of inflation ended 2005 at 31.7 per cent, but inflation then accelerated, with 12-month inflation reaching 58 per cent in May 2006, the report said.

Iraq's Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 per cent from 12 per cent. Wednesday's report from the bipartisan U.S. Iraq Study Group said that by the end of 2006, the bank will raise rates to 20 per cent and appreciate the dinar by 10 per cent.

The Central Bank's fight against inflation could prove to be an uphill battle, however, since many observers believe the leading contributor to inflation is the high cost of security involved in distributing goods throughout the country.

On Thursday, the dinar was trading at the central bank's auction price of 1,424 against the U.S. dollar, according to the bank's website, its strongest price since March 23, 2004, when it was at 1,420.

Between Nov. 29 and Thursday, the Iraqi currency traded widely at a market price between 1,410 to 1,442 to the dollar, the best market price the dinar had seen Jan. 26, 2005, when it traded at 1,405.

"The dinar has steadily increased against the dollar because of the central bank's efforts to stabilize the currency and control inflation," said Hussein al-Uzri, president of the state-owned Trade Bank of Iraq.

"Iraqi consumers get oil and food that is government subsidized, so the rise in the dinar won't have an immediate effect on them and the economy. It will take some time. But as Iraqis realize the value of the dinar is rising, they will stop immediately exchanging their currency into dollars," he told The Associated Press.

Originally Posted by shotgunsusie

CANOE -- CNEWS - World: Iraq central bank buys up currency to fight inflation

Excellent find the key paragraph is this one:

Iraq's Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 per cent from 12 per cent. Wednesday's report from the bipartisan U.S. Iraq Study Group said that by the end of 2006, the bank will raise rates to 20 per cent and appreciate the dinar by 10 per cent.

Basically this is verifying what the CBI has already stated they will do. A 10% increase brings them to around 1345 IQD to 1 USD which is their projection by end of year 2006. This backs up the gradualist theory, in essence. Thanks for the info!!!

Originally Posted by Socata 850

Number of banks 10 -----
Auction price selling dinar / US $ 1422 -----
Auction price buying dinar / US $ 1420 -----
Amount sold at auction price (US $) 14.830.000 -----
Amount purchased at Auction price (US $) 1.000.000
Total offers for buying (US $) 14.830.000 -----
Total offers for selling (US $) 1.000.000

Goooooooooooooood Morning RolClub !!


Lets keep this snowball a rollin'

The dinar to the dollar is down 2 more points today from 1424 to 1422 and another $13,830,000 (net) worth of dinars, (19,266,260,000) out of circulation with 10 banks participating. Fewer banks participated today, that puts our grand total of dinars withdrawn from circulation as of the 23nd auction since the beginning of CBI's reval plan to: 1,160,999,607,000.
We are now 40 days into the CBI's reval plan.

When this things hits,

"I'm going someplace where the beer flows like wine, and the women instinctively flock, like the salmon to Capistrano. I'm talkin' about a little place called, ASPEN"

Hello everyone. I think we can safely say the RV is in progess. We are still seeing more of the same, i.e. the CBI is continuing to remove dinar from the economy and increasing the exchange rate as we go. With all of the other economic news we've seen, and expect this week, things could get real exciting real fast. The only thing that remains is weather the CBI intends to raise the exchange rate in a gradual way over time, or will there be a "bold adjustment" in the rate. In either case, the only difference is the amount of TIME it takes for this investment to become extremely profitable. So, if we disagee, its only about that simple variable, time. Considering the other issues involved, decreasing the amount of dinar in the economy, increasing oil income, rise in GNP, and potential for huge investment in the short run to develop the oil economy, this exchange rate will accelerate even faster if you are one that leans toward a gradual rise in the value of the dinar. So, even without a bold adjustment (which I thinnk is probable) the rate will increase in increasing amounts over the near term. Its all very good for all of us and everyone have a good weekend. the rest of the auction week will be interesting to watch. Thank You.

Originally Posted by MunnyBaggs

Excellent find the key paragraph is this one:

Iraq's Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 per cent from 12 per cent. Wednesday's report from the bipartisan U.S. Iraq Study Group said that by the end of 2006, the bank will raise rates to 20 per cent and appreciate the dinar by 10 per cent.

Basically this is verifying what the CBI has already stated they will do. A 10% increase brings them to around 1345 IQD to 1 USD which is their projection by end of year 2006. This backs up the gradualist theory, in essence. Thanks for the info!!!

I actually tend to believe that that article is misinforming people a little ( exactly the part that you are referring to). The U.S. Iraq Study Group RECOMMENDED that, but the line " the bank will raise rates to 20% and appreciate dinar by 10 per cent" has not been verified by CBI. The " the bank will" assumes that the CBI WILL DO what the Study Group says, which we know it is not the case....

We know about the increase of rates from 12% to 16% ( CBI never said anything about 20%) , and we know that they will raise the exchange rate of the dinar, but no one knows by how much or what is the goal. Oh, sorry, yeah, we know what's the goal! To make the dinar the currency of choice!

Just MY take on that part of the article.

Originally Posted by Wm.Knowles

Hello everyone. I think we can safely say the RV is in progess. We are still seeing more of the same, i.e. the CBI is continuing to remove dinar from the economy and increasing the exchange rate as we go. With all of the other economic news we've seen, and expect this week, things could get real exciting real fast. The only thing that remains is weather the CBI intends to raise the exchange rate in a gradual way over time, or will there be a "bold adjustment" in the rate. In either case, the only difference is the amount of TIME it takes for this investment to become extremely profitable. So, if we disagee, its only about that simple variable, time. Considering the other issues involved, decreasing the amount of dinar in the economy, increasing oil income, rise in GNP, and potential for huge investment in the short run to develop the oil economy, this exchange rate will accelerate even faster if you are one that leans toward a gradual rise in the value of the dinar. So, even without a bold adjustment (which I thinnk is probable) the rate will increase in increasing amounts over the near term. Its all very good for all of us and everyone have a good weekend. the rest of the auction week will be interesting to watch. Thank You.

WM, I think this points to a big jump sometime in January at the latest.


raq seeks to support its currency to become stronger dinar.



MENAFNMENAFN - 07/12/2006- 07 / 12 / 2006

(MENAFN) أعلن وزير المالية العراقي ان العراق بصدد دعم الدينار العراقي وتقويته، حيث سينعكس ذلك ايجابيا علي الدولة وعلى الشعب، ويساعد على زيادة الخدمات.(MENAFN) Finance Minister announced that Iraq is about Iraqi support and strengthening of the Iraqi dinar, which will be reflected positively on the state and the people, and help increase the services.

وأكد الوزير في تصريح ان العام القادم سيشهد زيادة في الموازنة بنسبة تصل الى 73% عن هذا العام، اذ شهد تباطئ في صرف المبالغ، حيث صرفت وزارة الموارد المائية حوالي 75% من موازنتها و20% في الاسكان و17% في النفط.The minister said in a statement that next year will witness an increase in the budget by up to 73% this year, which saw a slowdown in disbursements, which spent the Ministry of Water Resources, about 75% of its budget, and 20% in housing and 17% in oil.

ويذكر ان السبب هو ان الاموال لم تطلق الا في منصف شهر نيسان، ليؤدي الى ضياع نصف العام، فهناك 2.5 مليار دولار لاعمار المحافظات، بالإضافة الى عدم وجود مكاتب استشارية هندسية وقلة الخبرة.It is noteworthy that the reason is that the funds have not been launched only in the month of April fair, leading to the loss of half a year, there are 2.5 billion dollars to reconstruct the governorates, in addition to the lack of engineering consulting firms and the lack of experience.

ومن المتوقع ان يشهد الشهر الاول من العام القادم التحرك لصرف وقيام المحافظات بتهيئة المكاتب الاستشارية والهندسية التي ستتعامل مع صرف الموازنة بنسبة 100%.It is expected that the first month of next year to move the exchange rate and the creation of provincial offices consulting, engineering, which will deal with the disbursement of the budget by 100%.

وتجدر الاشارة الى ان العام المقبل سيشهد ثورة اعمارية كبيرة، وسوف تسهم في تقليص حجم البطالة وتعزيز الامن والاستقرار في العراق.It should be noted that the coming year will witness a revolution Aemarih large, and will contribute to reduce unemployment and enhance security and stability in Iraq.
Translated version of MENAFN - Middle East North Africa . Financial Network

Originally Posted by CharmedPiper
Anybody got a woot for the trend I see here!!!!!WOOOOOOOOOOOOT!

Wall Street Journal (subscription), NY - 18 hours ago
AP. BAGHDAD, Iraq -- Iraq's dinar has risen to a nearly two-year high against the US dollar, as the nation's central bank tries to ..

ChronicleHerald.ca, Canada - 4 hours ago
BAGHDAD, Iraq (AP) — Iraq’s dinar currency has risen to a nearly two-year high against the US dollar, as the nation’s central bank tries to fend off ...

Canadian Business, Canada - 18 hours ago
Iraq Central Bank Buys Up Currency to Fight Inflation; Dinar at 2-Year High Vs. Dollar. BAGHDAD, Iraq (AP) - Iraq's dinar currency ...

FXstreet.com The Futures Market, Spain - 13 hours ago
On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million US dollars sold by ...

International Herald Tribune, France - Dec 7, 2006
AP. BAGHDAD, Iraq: Iraq's dinar currency has risen to a nearly two-year high against the US dollar, thanks to trading by the central ...

Houston Chronicle, United States - 19 hours ago
By THOMAS WAGNER AP Writer. © 2006 AP. BAGHDAD, Iraq — Iraq's dinar currency has risen to a nearly two-year high against the US ...

Originally Posted by Inscrutable

Sure looks like they are baiting speculators. Advertising at it's finest, drop the little fishy off the line for a bigger one.

Your news articles are awesome Charmed, you really take the effort to break them down and highlight whats important, saving us time in reading what's not. Thanks for your hard work, I'm sure you'll see your payoff soon.

Yep, you got it right. You guys are finally catching on!!! Iraqi banks bought up a ton during auctions at their best rate. Now they want to sell IQD at increasing profits to the suppliers, dealers, speculators, and new investors. This brings USD into their bank reserves!!!! MORE RESERVES = HIGHER CURRENCY EXCHANGE RATE POTENTIAL!!!! New investors come in paying off old investors (us) and creating wealth for Iraqi banks. It's a thing of beauty and we are witnessing history in action!!!!!

1 hour, 12 minutes ago

BAGHDAD, Iraq - Iraqi President Jalal Talabani on Sunday harshly criticized the bipartisan report recommending changes to U.S. war policies, saying it contained some "very dangerous" recommendations that would undermine the sovereignty of Iraq.
Talabani, a Kurd, said the report "is not fair, is not just and it contains some very dangerous articles which undermine the sovereignty of Iraq and the constitution."
He singled out the report's call for the approval of a de-Baathification law that could allow thousands of officials from
Saddam Hussein's ousted party to return to their jobs.
"There is an article to bring back the Baathists to the political scene, which is very dangerous," he said in an interview with reporters at his office in Baghdad.

Iraqi leader: U.S. report is 'dangerous' - Yahoo! News

Cheers!
DayDream

Not invited to the body, which refused to attend. Khalaf Al-Alyan : on the government to extend an invitation to attend the Baath Reconciliation Conference

Baghdad / long-AFP

An official of the Association of Muslim Scholars in Iraq on yesterday, Saturday, the body refused to participate in the political forces which will be held within the framework of the initiative of national reconciliation.
He said Muhammad Bashar al-Faydi member of the Agence France Presse that the Authority did not participate in the reconciliation with the government.

The al-Faydi said that "not invited us to participate in the conference and I do not think that there will be positives from the conference.
It is noteworthy that the political forces which postponed twice so far will be held in 16 of the current month.
The Prime Minister Nuri al-Maliki had announced last Tuesday that the conference of political forces the middle of this month will be attended by political parties and organizations to participate in the political process and others to promote national unity.
For his part, Sheikh Khalaf Al-Alyan Secretary-General of the National Dialogue Council, told France Presse : for the government to be invited to the Baath Party and other parties, he must extend an invitation to the leaders and not to the second row.
In turn, deputy of the Sadri trend : WE sit with any Ba'athist Our position is very clear, we refer them to law, how to negotiate with them?
Hassan Saleh said : Ekeli trying to return now in a variety of ways but they will not return and must not sympathy.

Translated version of http://www.uruklink.net/

Cheers!
DayDream