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

Largely a rehash of previous articles, but there are some interesting numbers....

Iraq central bank buys up currency to fight inflation
09/12/2006
Source: Canoe.ca

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.

http://www.iraqdirectory.com/DisplayNews.aspx?id=2721

Originally Posted by AlwaysDreaming

I just called 4 different Chase Branches here in the Phoenix area and I have been told by all that they will not sell dinar anymore. Apparently there is no real reason.

I was just at the Chase Bank in Tyler, Texas. I picked up orders from last week, and just made an additional order. So, at least some Chase Banks ARE selling them.

Originally Posted by Elfwizard

So this is what I have been trying to find, I found an older article about this but this one is MUCH better. We have no Idea How many dollars the MOF sells to the CBI, which means we have no Idea how many dinars are going back out.

Right?

This may be true if your assumption that dinars and dollars are being traded between the CBI and MOF. I still think that the CBI is paying the MOF in foreign currency since oil revenues are the only source of public finance and foreign currency earnings are required for imports. The MOF needs the foreign currency and the CBI needs dollars. One hand washes the other so to speak. We know from watching the auctions that other currencies are being used to buy the dollar, so maybe just maybe the CBI is using that currency and the foreign reserve currency in their vaults to buy the dollar? Just a thought.

Cheers!
DayDream

Originally Posted by Wm.Knowles

I like what you did. So you're suggesting that maybe 10 trillion dinar has been pulled out of circulation during those months you studied. Well, it sounds a little high, but what you have proven is that the CBI may have been engaged in a pull-out of dinar long before we noticed it. This is good. Even if yourestimates are off a few trillion or so, the fact that you have established the trend is helpful to us in understanding what we are seeing. And, I agree with you that they probaby were. Please continue watching this for us. As time goes on, this info will be helpful. Thank you.

a trillion here, a trillion there, the next thing you know we're talking real money.

Well, I didn't get the reval for my birthday....and I was really hoping I wouldn't have to go back to work for the weasel, but the ship comes out of the yards tomorrow and I go back to putting on my uniform every day.

I will really enjoy telling the captain that I no longer need to work, that he has 3 days to find my replacement....and that final walk down the gangway....that will be priceless!!!

Dang it...RV THIS WEEK!!!

Originally Posted by Alphamystic

And this makes perfect sense. In the back of my mind I continue to hold the thought about the CBI keeping two sets of books; one with the "previous rate". If we only knew which rate they are referring to ($0.31 or $3.22).

Either way we would be in great shape.

I'm pretty sure .31 is referring to a little less than 1/3 dinar to a dollar so it would sum up to around $3.22 in both cases.

Conference and exhibition of reconstructing Iraq VI in Washington وكالاتAgencies
(( (( new-fields الاميركية.The exhibition and the work of reconstructing Iraq Metmraeadh VI in Washington, DC, the capital of the United States of America, which join the company by New Fields ((((new-fields American.
اقParticipated in the exhibition, the 100th Iraqi company, American and Arab. It is noteworthy attend the delegation of Iraqi businessmen headed by Hirsch pilot Mohamed Chairman of the Federation of Iraqi businessmen / Center for the Iraqi Kurdistan region. Opened supply Iraq's Ambassador to the United States of America Char word that Iraq needed the experience of American companies for the purpose of reconstruction, and said that such conferences are necessary for the purpose of encouraging foreign companies and the American entry into Iraq. Also referred to the existence of many areas in Iraq, Secretary of the start of work in it, some provinces in southern Iraq and Cordstan territory. Also, some American companies and the local Arab and Iraqi profile of its activities and its work in Iraq
جريدة المواطن العراقية

Rumsfeld home after surprise Iraq trip
Rumsfeld home after surprise Iraq trip - Yahoo! News
WASHINGTON - Defense Secretary Donald H. Rumsfeld returned to Washington Sunday after his surprise trip to Iraq.

Rumsfeld's press secretary, Eric Ruff, said the defense secretary did not meet with any Iraqi government officials — as has been his usual practice — before leaving the country around noon Sunday.

"It was not a public trip whatsoever," Ruff said. The main purpose, he said, was to express thanks to the U.S. troops and their commanders.

Rumsfeld met over dinner Saturday with several top commanders, including Gen. George Casey and Lt. Gen. Peter Chiarelli, the two most senior commanders in Iraq. He also met with Lt. Gen. Martin Dempsey, who is in charge of the training of Iraqi security forces, and Lt. Gen. Raymond Odierno, who recently arrived to replace Chiarelli.

Ruff said Rumsfeld began Sunday in the Baghdad area, having breakfast with troops and attending a church service at Camp Victory, the main U.S. military command headquarters on the outskirts of the capital. He later held a town hall-style meeting with several hundred U.S. troops in the northern city of Mosul.

The only member of the media allowed to accompany Rumsfeld was Sean Hannity, a conservative Fox News Channel host. On all of his 14 previous trips to Iraq, as well as all other overseas trips, Rumsfeld has taken reporters who cover him regularly at the Pentagon. Ruff offered no reason why reporters were not invited this time, except to say that Rumsfeld viewed it as a "private" visit.

Rumsfeld remains defense secretary until Dec. 18.

Ruff said Bradley Graham, a Washington Post correspondent who previously covered the Pentagon for that newspaper and who is now writing a book about Rumsfeld, was invited on the trip but declined to go.

(FOX News will be having a special tonight, December 11, 2006; H & C, they were taking about some of the "hometown" meeting atmosphere as Shawn was mentioning this afternoon. One soldier asked if they enter Iraq too soon maybe not giving them enough time to do something, allow the weapons inspectors, etc... Rummy stated, all the UN deals, months of broken promises and not other recourse with the exception of continuing to allow Saddam to continue; standing ovation, etc...Sounds good, maybe it will open some new news? )

Bush seeks advice on new course in Iraq

Bush seeks advice on new course in Iraq - Yahoo! News
By BEN FELLER, Associated Press Writer
47 minutes ago

WASHINGTON - President Bush on Monday opened three days of intensive consultations on Iraq, saying the United States and countries across the Middle East have a vital stake in helping the fragile government in Baghdad succeed.

Bush went to the State Department to review diplomatic and political options — the latest in a series of consultations that dominate his agenda as he seeks a new course in Iraq.

"Like most Americans, this administration wants to suceed in Iraq," the president said after 90 minutes of discussions and a briefing from Baghdad. "We understand success in Iraq will help protect the United States in the long run.

"We also talked about the neighborhood, the countries that surround Iraq and the responsibilies that they have to help this young Iraqi democracy survive," Bush said. "We believe that most of the countries understand that a mainstream society, a society that is a functioning democracy is in their interest. And its up to us to help focus their attentions and focus their efforts on helping the Iraqis succeed."

The president was joined in the State Department's Treaty Room by Secretary of State Condoleezza Rice and Vice President Dick Cheney.

Bush is under intense pressure to come up with a new approach in Iraq, particularly after the Republicans' loss of Congress was blamed on the president's handling of the war.

Bush's remarks echoed his previous statements and gave no indication of any change of strategy.

He defined succeess in Iraq as "a country that governs, defends itself, that is a free society, that serves as an ally in this war on terror."

"And the reason why that's vital," he said, "is because Iraq is a central component of defeating the extremists who want to establish safe haven in the Middle East, extremists who would use their safe haven from which to attack the United States ..."

Originally Posted by jvogan

I was just at the Chase Bank in Tyler, Texas. I picked up orders from last week, and just made an additional order. So, at least some Chase Banks ARE selling them.

Thanks for your response. I just went into my Chase branch and spoke to the manager and they will let me purchase. They were told not to encourage sales in dinars and that was why they have been telling people that they will not exchange them. So all is good. Thanks everyone!

Now on with the REVAL!!!