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

Originally Posted by ordinaryseawoman

for anyone who wonders what Iraq might look like after they get a grip on security and allow foreign investors in, google Dubai.

I think that Dubai is the standard by which prosperity is measured in the ME and when the men in expensive robes dream about designing cities, they dream of "History Rising"...it must be frustrating as heck for the politicians, the businessmen, and the regular folk to look around the region and see what everyone else has accomplished, while they chase the kerosene truck with vouchers.

I've been to Dubai, I've seen the conspicuous consumption--it's very intimidating...women with couture bags and shoes--cant see the clothes cuz their wearing the burka--the hotels like museums and the islands created out of dust....You can bet you dinar that our Iraqi freinds have seen it too...that's one of the main reasons my sweet husband and I don't sweat the long term with this--we know where they're going...we just wish they'd trade the camel for a benz and HURRY THE HECK UP!!!!!

I concur Dubai is just gushing with wealth. Here is hoping IRAQ is soon to follow.

Originally Posted by MrsCK

OH I'M AM STILL WITH YOU ON THIS CP!!!!!!!!!!!! THIS WEEK!!
WHAT A BS ARTICULE - IT WAS LIKE TO DUDE TOOK STUFF FROM 2004, 2005 AND OPENED HIS MONTH TO THROW IT IN 2007. NOTHING ADDED UP TO EVEN WHAT THE WORLD BANK, IAMB, IMF, ETC HAVE BEEN SAYING.

AS ONE HAS ALWAYS BEEN SAYING "LOOK AT THE CBI SITE".

CP - SHOULD WE BOOK THOSE PLANE TICKETS NOW TO GO BUY UP IRAQ - I'M WITH YA!!!!!!!!!!!!

Hey, A SHOPPING TRIP!?!?!!? Can I come, I just found twenty bucks in dh's pants.....think I'll grab a few of Sadaam's palaces with it!!!....and have enough left over for lunch.

Originally Posted by postcon

The FIL will have restrictions on the percentage of investment by foreigners and it will not be possible for individuals or countries to fly into Iraq and buy the country out. For far too long, this theory of "buying the country for pennies" has been flouted. Laws and a country's sovereignty prevent such buy outs.

It's true that foreign investment will be regulated and limited. However, we have to remember that with the current population of Iraq being approx. 26 mill. and an M2 of 20 trillion there is enough money for everyone in Iraq to have $523 USD. Even if you cut the population in half that would be $1046 per person. My point is, it has been reported that the average income in Iraq is about 7-10 Dollars a week and it would be difficult to substantially increase salaries as they do not have enough cash at the current rate to do so. Therefore Iraq can be bought up, figuratively, by way of extremely cheap labor. Iraq will end up the Mexico of the middle east with sweat shops everywhere, and people fleeing to neighboring countries in search of a better life.

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!!!!

Originally Posted by MrsCK

OH I'M AM STILL WITH YOU ON THIS CP!!!!!!!!!!!! THIS WEEK!!
WHAT A BS ARTICULE - IT WAS LIKE TO DUDE TOOK STUFF FROM 2004, 2005 AND OPENED HIS MONTH TO THROW IT IN 2007. NOTHING ADDED UP TO EVEN WHAT THE WORLD BANK, IAMB, IMF, ETC HAVE BEEN SAYING.

AS ONE HAS ALWAYS BEEN SAYING "LOOK AT THE CBI SITE".

CP - SHOULD WE BOOK THOSE PLANE TICKETS NOW TO GO BUY UP IRAQ - I'M WITH YA!!!!!!!!!!!!

I'm going to have to agree here. Something does not pass the smell test. When was the last time the Dinar was at 1500? It does appear to be cobbled-together info. It is a REUTERS article in the first place.MSM-reader beware.

I also really struggle understanding that rate if the FIL and HCL are enacted as expected before the end of the year. My 2 bits.

Originally Posted by ordinaryseawoman

This is for Bill Knowles and all you other econowizards out there...

I am thinking that in order for Iraq to enjoy the benefits of being an integrated part of the the world economy it's currency would have to be fully convertable...ie when I go to the airport, before I get on my plane I can exchange some dollars for dinars. What do we expect to happen when the currency becomes fully convertable? Will it be subject to supply and demand, with the market ultimately setting the value? Will the CBI have to conduct currency auctions (continually adjusting the supply against the demand) to control the rate? or will there be flat peg--CBI sets the rate at 1250 (a possibility according to the latest article)?

my thinking is that they may reval at a very low rate, but I cannot believe that it would stay there for any length of time. Once big business and big oil steps in, the only way to keep the currency down is by artificial means.

Honestly, can you think of a better way to shake out weary indirect investors? Tell 'em it's going to be another little while, and that the rate is going to be less than a penny....I'm sure there will be some who on hearing this will seriously consider cashing in and getting on with their lives...

That would be for convenience, right now you can go to Iraq and trade your dollars for Dinar so why do it at the airport?

Old article revisited....

Iraq: No deposit, no returns - August 7, 2006

No deposit, no returns

It took two pickup trucks to cart away $950,000 when armed robbers looted the state-owned Rafidain Bank in Baghdad in July.
By Abrahm Lustgarten
August 1 2006: 3:49 PM EDT


Baghdad, Iraq (FORTUNE Magazine) -- It took two pickup trucks to cart away $950,000 when armed robbers looted the state-owned Rafidain Bank in Baghdad in July.

With the Iraqi currency trading at 1,477 dinars to the dollar and inflation running at 53%, more and more cash is needed to make ends meet as the three-year-old war grinds on. Some banks, such as the Iraq Middle East Investment Bank, have also experienced a cash-flow problem as depositors either leave the country or lose confidence in the safety of their money.

Still, the dinar, once valued at about $3, has remained relatively stable since it was reissued without Saddam Hussein's portrait in 2003.

"The macroeconomic framework has held together well, despite serious strains on the broader environment," says Ahmed Saeed, the U.S. Treasury's deputy assistant secretary for the Middle East. "Not to say that things are perfect."

The Iraqi stock exchange now lists 96 companies. Registered businesses have more than quadrupled since 2003. And oil production, the pillar of Iraq's economy, jumped 8% in June, to 2.2 million barrels a day, the highest level in almost two years.

Now Iraq's Finance Minister, Bayan Jabor, has come up with a plan to make it easier to shop (not to mention rob a bank): He wants to revalue the currency, chopping three zeroes off the dinar, and peg it to the dollar. That's one way of lightening the average Iraqi's wallet. From the August 7, 2006 issue

Just thought I would point out this article again...kinda interesting don't cha think?

Cheers!
DayDream

Watch Sean Hannity tonight on Hannity/Skeletor. He just got back from the Sandbox with lots of great info, some of which will blast the Dems, Liberals & MSM pukes. I advise that we don't miss it. Have a wonderful day everybody. And God Bless America & Our Troops!!!

Originally Posted by MOM2TWO

Hey, A SHOPPING TRIP!?!?!!? Can I come, I just found twenty bucks in dh's pants.....think I'll grab a few of Sadaam's palaces with it!!!....and have enough left over for lunch.

Oh oh count me in! Can i have dessert after lunch too?

Originally Posted by One Oar

I'm going to have to agree here. Something does not pass the smell test. When was the last time the Dinar was at 1500? It does appear to be cobbled-together info. It is a REUTERS article in the first place.MSM-reader beware.

I also really struggle understanding that rate if the FIL and HCL are enacted as expected before the end of the year. My 2 bits.

I JUST WENT OUT AND TOOK A GOOD LOOK AT MY NORTH PASTURE - YUP I GOT AS MUCH BULL S*** LAYING ON THE GROUND OUT THERE AS THAT ARTICULE!!!

PLUS ADSTER OLD BOY POSTED THAT - BEEN TO THE PUB ADSTER?

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 is about breakeven.If you bought the dinars around $800.
Even if this is true I just don't see this as bad news. OK, it's going to take a little longer. This reval to 1260 is going to really boost the overall buying power of the Iraqi economy as a whole. Once that takes root another ratchet up in the dinar value will come especially when the dinar goes on to the world market