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

Originally Posted by DayDream

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

More on this Minister:

Association of Muslim Scholars -- a Sunni group calls for Shiite Finance Minister Bayan Jabor's trial in an international court for condoning the torture and murder of Iraqi Sunnis
Media Release
Jun. 17, 2006


Shiite Finance Minister Bayan Jabor should be tried in an international court for condoning the torture and murder of Iraqi Sunnis during his term as interior minister in the Iraqi transitional government, the Association of Muslim Scholars -- a Sunni group -- said June 16.

IndiaDaily - Association of Muslim Scholars -- a Sunni group calls for Shiite Finance Minister Bayan Jabor's trial in an international court for condoning the torture and murder of Iraqi Sunnis

and here: Bayan Baqir Jabr, Schema-Root news

Originally Posted by rvalreadydang

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

Well,......not sure if I can afford th....OH WAIT FOUND A PENNY-----LET'S ALL HAVE TWO DESSERTS!!!!!!

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.

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 is what I call misleading and BS. First 10%, now 13%, come on what's it gonna be!

We read that they will increase the oil production to 8 million barrels the next 4 years, we also read that the first quarter of 2007 companies will start to boost the production.

Yeh right, and then appreciating the dinar to 1260, what a joke!

Oh by the way, I don't think the donor countries are forgiving debt for a rate of 1260!

They are still talking about increasing the "program rate" and I believe it also mentioned that by time they will set it back to the "real exchange rate" and this one will be calculated on their oil production.

Originally Posted by rvalreadydang

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

At this exchange rate you can by a dessert and a desert.....

Originally Posted by D-Day

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!!!

Sure, Sean will say it's terrible over there with a real civil war going on and that justifies the reason we should be there. Trust me, nothing cushy from Hannity, and nothing of value either, after all he went as the back half of Rummy when over there right?

[QUOTE=michael16;147872].1260 is about breakeven.If you bought the dinars around 1470.

breakeven at 1250 is if you paid ~$800 per mil.

Originally Posted by lndmn_01

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.

Hardly...Iraq is going to share 30% of the oil revenues with the people...Mexico does absolutely NOTHING for its people except to teach them how to illegaly come to he USA so they can send money home.

Originally Posted by Inscrutable

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?

I was thinking BIG PICTURE--I am hoping that someday in the future, Iraq might be part of the global economy, might be someplace Bob and Betty Bayliner might want to visit--Garden of Eden, etc...when I fly overseas, the one thing I do is exchange some dollars for the local currency so I actually have a chance of not being ripped off by the taxi driver...to me, and most likely a lot of other people, having the convenience of airport money exchange is one sign of how "civilized" a country is...

I think it's easy to get shortsighted and focus on the REVAL...but remember as long as Iraq continues down the path of city designs, pension laws, and marsh restoration, THE INCREASE IN THE VALUE OF THE CURRENCY WILL BE UNAVOIDABLE As long as Iraq continues to progress and develope it's natural resources, our success, and more importantly, Iraq's success is assured.

Originally Posted by CharmedPiper

What restrictions are in place???? Maybe I missed something but I bet I could find lots of things to buy with a currency rate that is in the toilet.

Do you seriously think just because a currency is worthless, people can go into that country and buy it out? Unfortunately, it isn't that simple or else a lot of countries around the world would be in the hands of the stinking rich.

[QUOTE=dumfatnhappy;147879]

Originally Posted by michael16

.1260 is about breakeven.If you bought the dinars around 1470.

breakeven at 1250 is if you paid ~$800 per mil.

Yes that is correct.