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

Originally Posted by opps50

THIS IS FROM THE HORSES MOUTH.THIS SAYS IT ALL.

IT WON`T REVAL THE WAY WE WANT. I AM TRULY SORRY ABOUT THIS

Originally Posted by SeaRayaWaitin'

Cue the 'smokescreen' theories. Can't wait to see how this get's spun into how there's going to be a high reval anyway.

Yep, just like the statement a few months back about a 0 lop. Do either of you honestly think they would tell us if the were going to reval by 30,000+%?

Originally Posted by Adster

BAGHDAD, Dec 11 (Reuters) - Iraq's government expects the dinar to strengthen by 13 percent against the dollar by early 2007 after raising interest rates to limit the use of dollars in the economy and stem inflation, the country's finance minister said.

Minister Bayan Jabor told Reuters on Monday that the government has targeted an exchange rate to reach 1,260 dinars to the dollar in the first three months of 2007 from the current level of 1,500 to the dollar. WERE DID THEY GET 1500??

The 2007 $41 billion budget assumes an exchange rate of 1,260 dinars to the dollar, he said, adding the cabinet would discuss the draft budget on Saturday before hopefully sending it to parliament next week.

"There is an expected increase in the value of the dinar. The exchange rate is expected to drop from 1,500 dinars to the dollar to 1,260 in early 2007," he said in an interview.

"We will calculate the budget based on 1,260 dinars to the dollar and based on 50 dollars per barrel (of oil) and production of 1.7 million barrels per day.

"The central bank has started increasing the interest rate from 12 percent and it has now reached 16 percent."

Jabor said there were no immediate plans to raise interest rates further. The central bank increased its main interest rate to 16 percent from 12 percent on Nov. 8, according to the bank's Web site.

He said the aim of raising interest rates was to strengthen the dinar to fight dollarisation -- the use of dollars on a daily basis alongside the local dinar currency -- to stem high inflation and boost Iraqis' confidence in the domestic currency.

"It is to fight dollarisation. Every economy that depends on the dollar is considered weak," he said.

"Now I can say that Iraqis should use dinars instead of dollars. When we increase the value of the dinar it will help ease inflation, which is now at 56 percent. We expect inflation will decrease," he said.

Iraq's inflation rate hit 76.6 percent in August.

But sectarian violence is claiming the lives of more than 100 Iraqis a day and threatening to push the country into civil war. The daily violence has scared off foreign investments in the oil rich country.

A recent UN report said there was growing unemployment and poverty rates in Iraq. Corruption is endemic and state owned industries are inefficient. Oil is the main source of revenues but oil sector is suffering from years of mismanagement and violence.

"There is also a psychological factor -- Iraqis need to trust their currency when it is stable or strengthening."

The International Monetary Fund, which has backed Baghdad with a $685 million standby credit agreement, has also warned that rising inflation could undermine economic well-being and hinder the goal of improving the welfare of ordinary Iraqis.

Another problem facing the government is the high rate of unemployment, mainly among the young. Officials say the unemployment rate is between 30 and 40 percent.

Jabor said he was not worried by possible negative consequences of strengthening the dinar because the Central Bank had enough reserves to support the dinar.

"The dinar is strong -- the central bank is one of the best central banks in the region except for those in the Gulf. We have reserves of $15 billion in foreign currency other than gold, and it is only to support the dinar."

http://today.reuters.co.uk/news/Cris...-R5-Alertnet-5

THIS DOES NOT ADD UP TO WHAT WE HAVE BEEN GETTING OUT OF IRAQ ALL WEEK-END!! IF THIS IS "THE ECONOMIC PLAN' THEY HAVE COME UP WITH - IT IS NOT GOING TO HELP THE IRAQ PEOPLE ONE BIT!!!!

Maybe we can get our university Prof to debunk this? Now would be a great time for some additional info from this contact..

Originally Posted by MrsCK

THIS DOES NOT ADD UP TO WHAT WE HAVE BEEN GETTING OUT OF IRAQ ALL WEEK-END!! IF THIS IS "THE ECONOMIC PLAN' THEY HAVE COME UP WITH - IT IS NOT GOING TO HELP THE IRAQ PEOPLE ONE BIT!!!!

Agree with you but maybe the authorities have a long term plan on this rather than a bold adjustment to the exchange rate as most people on here expect and wish for. The insignificant decrements in the daily exchange rate via the auctions would point to a gradual increase in value rather than a stupendous rise that would take it anywhere near the value of the dollar. I sure hope that this isn't the case but must admit that this recent article has kind of deflated the balloon of hope for a big reval.

The only consolation though is people are actually talking about the value of the dinar in public and are speculating on a future rise in value, which can only be good for us.

I am really not to suprised by this...1260 would benefit them and increase their purchasing power...just not by as much as we all hoped. One of my orginal thoughts on this investment is that it was a BIG number game...the guys that are holding $100000 USD worth of IQD will make a nice profit if they bought in at 1470 IQD to the USD when it goes to 1260 IQD to the USD.
Once again the little guys ( us) will end up getting scr*wed out of any real profit from this and Iraq will remain a third world country for a while longer

Originally Posted by opps50

THIS IS FROM THE HORSES MOUTH.THIS SAYS IT ALL.

IT WON`T REVAL THE WAY WE WANT. I AM TRULY SORRY ABOUT THIS

Not so fast......remember most horses end up at the glue factory and it sounds like Minister Bayan Jabor could be headed to the Elmer's factory, ......Ministers over there are a dime-a-dozen....they can fire them at breakfast and have them replaced at lunch....come on Opps hang in there with us...

Originally Posted by doublescorpio

I am really not to suprised by this...1260 would benefit them and increase their purchasing power...just not by as much as we all hoped. One of my orginal thoughts on this investment is that it was a BIG number game...the guys that are holding $100000 USD worth of IQD will make a nice profit if they bought in at 1470 IQD to the USD when it goes to 1260 IQD to the USD.
Once again the little guys ( us) will end up getting scr*wed out of any real profit from this and Iraq will remain a third world country for a while longer

1260:1 will actually make no difference to the Iraqi people. There was an article a while back about money changers on the street setting the exchange rat at 1200:1, sometimes the black market value is even higher.

Originally Posted by postcon

Agree with you but maybe the authorities have a long term plan on this rather than a bold adjustment to the exchange rate as most people on here expect and wish for. The insignificant decrements in the daily exchange rate via the auctions would point to a gradual increase in value rather than a stupendous rise that would take it anywhere near the value of the dollar. I sure hope that this isn't the case but must admit that this recent article has kind of deflated the balloon of hope for a big reval.

The only consolation though is people are actually talking about the value of the dinar in public and are speculating on a future rise in value, which can only be good for us.

IF AND I MEAN A HUGE "IF" this articule is correct the 10K "gift" will be worth a HUGE GRAND TOTAL of $8 bucks is it is 1250 to $1. WOW the IRAQI'S SURE CAN GO ON A SPENDING SPREE. Remember 15,000 dinar for shoes minus the government trying to bring down inflations so maybe looking at 10K for a pair of shoes - WOW ONE PERSON IN THE FAMILY GETS NEW SHOES!!! kids can say "pick me dad, pick me"

Originally Posted by postcon

Agree with you but maybe the authorities have a long term plan on this rather than a bold adjustment to the exchange rate as most people on here expect and wish for. The insignificant decrements in the daily exchange rate via the auctions would point to a gradual increase in value rather than a stupendous rise that would take it anywhere near the value of the dollar. I sure hope that this isn't the case but must admit that this recent article has kind of deflated the balloon of hope for a big reval.

The only consolation though is people are actually talking about the value of the dinar in public and are speculating on a future rise in value, which can only be good for us.

Well, if they don't reval like we want then when they enact the FIL I am flying over there and buy me up some Iraq...I always did want to own a country.....!!!

I admit that article stings a bit. But at the same time it doesn't make sense. If I had 100k US and knew I could make 10-15k in the next month I would be all over it. Why would they do this?