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

Announcement No.(822)

D.G. of Foreign Exchange Control

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

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 -----

Originally Posted by Cyberkhan

Absolutely correct. I worked in the fixed income arena for some time and what you could always count on was that any adjustments made to the interest rate would be felt approx. 6 months later in the market. This is a very positive note but if the CBI is interested in making progress in the very short term as stated in several articles then more factors than what is currently happening would have to be implemented.

It would seem to me as well as to many others on here that Shabibi is a student of Greenspan. The less is more theory on information to the public. What intrigues me is that there has been soo much mention in recent days in regards to the raising of the rate of the overnight borrowing rate and the rise in value of the dinar. If Shabibi is a true student of Greenspan (which I feel he is) then this is a stark contridiction to what he has been doing. How and why anyone would ever simply tell the world that you can expect to see a certain percentage increase in their value and when to expect it to happen is beyond me. With the massive speculation that this could cause many detrimental effects are possible.

At this point they simply have no other options than to bring their currency to the forex to allow that type of speculation.

As I mentioned earlier this week when the HCL is enacted they MUST have a currency that has real value. Otherwise with the dividends payed to the Iraqi people we are looking at a massive flood of currency into the market place and thereby significantly reducing the level of a revaluation (if there could even be one at that point).

This should be one of the most interesting weeks we have ever had the pleasure of being subjected to.

Cheers to all and keep those articles coming!!!!!!!!!

Originally Posted by Wm.Knowles

Thank you for your comments. I also have a background in the fixed income arena. And I understand you comments on the necessity of raising the value of the dinar prior to implementation of the HCL. I also agree that the CBI President is a student of Greenspan. Since much of Greenspan's professional life has been devoted to reducing the effects of the US Gov. printing money thru deficit spending, he is well versed in quanity money theory and the ways and means of intervening to reduce inflation. He may eventually recieve a Nobel Prize for Economics if he pulls this economic miracle off. And, he is apparently on his way to doing just this. Thank you.

Not to Mention Tallented and Intelligent as well. Thanks Guys for all your Knowledge at helping the rest of the "Dinar Gang".....&.....the dinarholics too.

Originally Posted by SeaRayaWaitin'

Imagine how much this dude would have at $1.49 or $3.22

Looks like he understood this Investment Too.

Originally Posted by neno

Looks like he understood this Investment Too.

This is the owner I believe of Dinarinfo. I bought my first dinar from him (with cashier's check pble to dinarinfo) and picked it up from his house.

He may eventually recieve a Nobel Prize for Economics if he pulls this economic miracle off. And, he is apparently on his way to doing just this. Thank you.

I'll throw my vote to him.

I just learned of some good News. The US congress is passing a Fair Trade agreement with Vietnam. So we all can have life after the RV. We can go from Dinaraholics to Dongaholics. Exciting isn't it?

Originally Posted by Wm.Knowles

Thank you for your comments. I also have a background in the fixed income arena. And I understand you comments on the necessity of raising the value of the dinar prior to implementation of the HCL. I also agree that the CBI President is a student of Greenspan. Since much of Greenspan's professional life has been devoted to reducing the effects of the US Gov. printing money thru deficit spending, he is well versed in quanity money theory and the ways and means of intervening to reduce inflation. He may eventually recieve a Nobel Prize for Economics if he pulls this economic miracle off. And, he is apparently on his way to doing just this. Thank you.

He has also spent many years working with and learning from Paul Wolfowitz and is considered to be a fianancial genius by many.

Originally Posted by Cyberkhan

Absolutely correct. I worked in the fixed income arena for some time and what you could always count on was that any adjustments made to the interest rate would be felt approx. 6 months later in the market. This is a very positive note but if the CBI is interested in making progress in the very short term as stated in several articles then more factors than what is currently happening would have to be implemented.

It would seem to me as well as to many others on here that Shabibi is a student of Greenspan. The less is more theory on information to the public. What intrigues me is that there has been soo much mention in recent days in regards to the raising of the rate of the overnight borrowing rate and the rise in value of the dinar. If Shabibi is a true student of Greenspan (which I feel he is) then this is a stark contridiction to what he has been doing. How and why anyone would ever simply tell the world that you can expect to see a certain percentage increase in their value and when to expect it to happen is beyond me. With the massive speculation that this could cause many detrimental effects are possible.

At this point they simply have no other options than to bring their currency to the forex to allow that type of speculation.

As I mentioned earlier this week when the HCL is enacted they MUST have a currency that has real value. Otherwise with the dividends payed to the Iraqi people we are looking at a massive flood of currency into the market place and thereby significantly reducing the level of a revaluation (if there could even be one at that point).

This should be one of the most interesting weeks we have ever had the pleasure of being subjected to.

Cheers to all and keep those articles coming!!!!!!!!!

This is our ballgame in a nutshell.JMO.

Originally Posted by DayDream

I don't believe they are the same owners...CBI's owner is registered in Baghdad and iraqgovernment's owner is in London. Cross reference? Thats the only reason I can see for it happening. As I said, I DID NOT type in the CBI site at all. I was TOTALLY surprised when that popped up! If they are connected in some way its interesting that the iraqgovernment.org site is NOW a FORBIDDEN site don't you think?

Cheers!
DayDream

DayDream
My ID program lists iraqigovernment.org owned by:
EKUR, Iraq, Sana's, Baghdad.
Is this the same name they're using in London?

This is the message I'm receiving:
The website declined to show this webpage

Most likely causes:
This website requires you to log in.

What you can try:
Go back to the previous page.

More information

This error (HTTP 403 Forbidden) means that Internet Explorer was able to connect to the website, but it does not have permission to view the webpage.

For more information about HTTP errors, see Help.

Very Interesting Read. By The Way This Is The Best Dinar Forum. Thanks To All That Post Such Great Articles. ALL OF YOU ARE THE BEST!!!


Saturday, December 09, 2006

More money to the people.
According to a recent paper published last November by Dow Jones (don't have a link, read a summary on paper) after the world economic forum in the dead sea, Iraq's income from oil exports for this year was at 35 billion dollars with a 14.3% increase from last year's total.

And that if oil export levels retain the current level and under stable prices, the coming year will witness a record income that was never reached in the history of modern Iraq and revenues will jump up to 40 billion dollars; a huge figure given the humble plans of the government and a figure that will put the government in a position where it must come up with new and ambitious plans to match the new revenue figures.

In fact and from what can be read in papers and heard from official statements it seems most government departments failed to spend the funds allocated by the government for those departments to execute their projects.
That's not because of security challenges only since there are several regions in the country that are relatively stable and where work can be done but more because of bureaucracy and corruption that make it extremely difficult to implement plans and make sure the money is spent in the right direction.

I think this was what pushed the government to announce a number of new measures to cope with the condition, perhaps the easiest measure to come up with was to announce plans for massive raises for civil servants; according to al-Sabah the raise will be as high as 60% of current payments in some cases, especially to those with lower incomes.

Another announcement followed soon, yesterday al-Sabah brought the news that the parliament is discussing a suggestion to set aside 30% of oil sales income to distribute among the citizens of Iraq. The draft law sets 3 classes of payments according to age and subsequent needs and responsibilities; from one month to 6 years, from 6 to 18 years and the third one 19 years and older.
People who migrated from Iraq, those with salaries higher that 1 million dinars/month and convicted criminals will be excluded from the payment program, the report added.

The people here met the news with some delight, hope and some skepticism too although the announcement came through the government's paper.

If this plan comes to materialize I think it can reflect positively on the security situation to some extent. The economy is part of the problem and also part of the solution and the government should move forward with reforms that involve economy and infrastructure as well as, of course and above all, security.
I personally like the idea of distributing the money directly among the population because I believe the people are more capable of making good use of that money than the government and instead of having billions lost to corruption and mismanagement that money will be used to revive the market and reduce the government's control over the economy. Plus, it will give people the sense that they do have an actual and visible share of their country's riches.


The private sector in Iraq had witnessed giant leaps immediately after the fall of Saddam; that could be seen in the form of the thousands of private businesses that were established in the course of the past three years and that had a direct positive effect on the standards of living after long years of deprivation.
It's worth mentioning that between 1946 and the beginning of 2003 a total of 8374 businesses were registered while between April 2003 and the end of 2005 more than 20,000 have been registered. During last month alone 286 new businesses were added.
Such statistics seem quite extraordinary under the current security situation which sadly continues to overshadow and limits further improvement of this aspect of life in Iraq.

On the other hand, the exchange rate of the Iraqi dinar improved significantly in the past few weeks and is now at 1410/$1 instead of 1480/1$ in early November. I am no economy expert but this looks like a good sign; it improves the purchase ability of people who get paid in dinar, which is the vast majority of course and at the same time it serves to reassure the people of the value of the national currency.

Let's imagine if the government intensifies its efforts in this direction and takes some candid and well-studied steps to offer a convenient environment for business and investment particularly in Baghdad, the heart of the country's economy. A lot of progress can be made, especially that the foreign investment law has been instated and approved which by the way looks like a good paper. This economic activity can move Iraq forward in a matter of few years and the country can catch up with what it missed.
The potential is huge; a stable climate is the key to unleash that potential.

Saturday, December 09, 2006

More money to the people.
According to a recent paper published last November by Dow Jones (don't have a link, read a summary on paper) after the world economic forum in the dead sea, Iraq's income from oil exports for this year was at 35 billion dollars with a 14.3% increase from last year's total.

And that if oil export levels retain the current level and under stable prices, the coming year will witness a record income that was never reached in the history of modern Iraq and revenues will jump up to 40 billion dollars; a huge figure given the humble plans of the government and a figure that will put the government in a position where it must come up with new and ambitious plans to match the new revenue figures.

In fact and from what can be read in papers and heard from official statements it seems most government departments failed to spend the funds allocated by the government for those departments to execute their projects.
That's not because of security challenges only since there are several regions in the country that are relatively stable and where work can be done but more because of bureaucracy and corruption that make it extremely difficult to implement plans and make sure the money is spent in the right direction.

I think this was what pushed the government to announce a number of new measures to cope with the condition, perhaps the easiest measure to come up with was to announce plans for massive raises for civil servants; according to al-Sabah the raise will be as high as 60% of current payments in some cases, especially to those with lower incomes.

Another announcement followed soon, yesterday al-Sabah brought the news that the parliament is discussing a suggestion to set aside 30% of oil sales income to distribute among the citizens of Iraq. The draft law sets 3 classes of payments according to age and subsequent needs and responsibilities; from one month to 6 years, from 6 to 18 years and the third one 19 years and older.
People who migrated from Iraq, those with salaries higher that 1 million dinars/month and convicted criminals will be excluded from the payment program, the report added.

The people here met the news with some delight, hope and some skepticism too although the announcement came through the government's paper.

If this plan comes to materialize I think it can reflect positively on the security situation to some extent. The economy is part of the problem and also part of the solution and the government should move forward with reforms that involve economy and infrastructure as well as, of course and above all, security.
I personally like the idea of distributing the money directly among the population because I believe the people are more capable of making good use of that money than the government and instead of having billions lost to corruption and mismanagement that money will be used to revive the market and reduce the government's control over the economy. Plus, it will give people the sense that they do have an actual and visible share of their country's riches.


The private sector in Iraq had witnessed giant leaps immediately after the fall of Saddam; that could be seen in the form of the thousands of private businesses that were established in the course of the past three years and that had a direct positive effect on the standards of living after long years of deprivation.
It's worth mentioning that between 1946 and the beginning of 2003 a total of 8374 businesses were registered while between April 2003 and the end of 2005 more than 20,000 have been registered. During last month alone 286 new businesses were added.
Such statistics seem quite extraordinary under the current security situation which sadly continues to overshadow and limits further improvement of this aspect of life in Iraq.

On the other hand, the exchange rate of the Iraqi dinar improved significantly in the past few weeks and is now at 1410/$1 instead of 1480/1$ in early November. I am no economy expert but this looks like a good sign; it improves the purchase ability of people who get paid in dinar, which is the vast majority of course and at the same time it serves to reassure the people of the value of the national currency.

Let's imagine if the government intensifies its efforts in this direction and takes some candid and well-studied steps to offer a convenient environment for business and investment particularly in Baghdad, the heart of the country's economy. A lot of progress can be made, especially that the foreign investment law has been instated and approved which by the way looks like a good paper. This economic activity can move Iraq forward in a matter of few years and the country can catch up with what it missed.
The potential is huge; a stable climate is the key to unleash that potential.

IRAQ THE MODEL