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

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.

So what about this statement.....Iraq's Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 percent from 12 percent. 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 percent and appreciate the dinar by 10 percent.
Now I'm really confused!

"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

Cheers!
DayDream

Trade announced strict measures to determine the quality

(Voice of Iraq) - 12-11-2006
This issue was sent to a friend

The Republic of Iraq
Council of Ministers-the governmental communications
Media Relations
A press statement / Press Release
Monday 12-11-2006


The Trade Ministry announced strict measures to determine the quality
Rice received before the Iraqi


The Minister of Trade, Dr. Abdel farmer Hassan Sudanese ministry began its plan for the receipt of all Somat country, stores, adding that the announcement during an extensive meeting included the size of the Ministry's technical and supervisor of the marketing campaign rice that the ministry stressed the procedures in the receipt of rice Iraqi, which is grown in areas of the country in Central and South, noting that committees of the quality control and oversight of Commerce and distributed to all governorates in order to ensure receipt of brands Iraqi known quality.

The Sudanese to a wide-ranging plan supervised by the grain company will be distributing commissions received and forwarded to the grinders in order to start the process of cleaning of these materials for distribution among the components of the ration card, that work is continuing at all hours today to receive the quantities from farmers.

He explained that the ministry stopped the receipt in some governorates several hours for the purpose of checking the quality for the purpose of checking the quality of rice recipient and the arrival of scrutiny and oversight committees charged by the quality received.

The cabinet approved the proposal of the Ministry of Trade on raising the price per ton of rice, the amount of one hundred thousand dinars per ton to reach 750 thousand dinars.

Originally Posted by CharmedPiper

But which one's with worthless currency are floating on oil.....

I think the point of this whole debate has been ignored by this statement of yours. My point is that despite a country's worthless currency, no one can fly into it and buy it out. Buying a country for pennies is a fallacy. Such an option doesn't exist in the world. No one disputes the abundance of riches in Iraq and the bright economic future it has. Its currency will reflect its true value in due course but it might be a steady and gradual rise rather than a huge jump. Of course, it's just my opinion and may not be what most people on here wish to read and that's just fine by me!

Originally Posted by postcon

I think the point of this whole debate has been ignored by this statement of yours. My point is that despite a country's worthless currency, no one can fly into it and buy it out. Buying a country for pennies is a fallacy. Such an option doesn't exist in the world. No one disputes the abundance of riches in Iraq and the bright economic future it has. Its currency will reflect its true value in due course but it might be a steady and gradual rise rather than a huge jump. Of course, it's just my opinion and may not be what most people on here wish to read and that's just fine by me!

YIIIKES...getting between women and their shopping plans....don't you know how dangerous that is!?!?!?!?!

So what you are saying is that I can't REALLY buy several palaces with 20 USD's?? I am pretty sure that we all knew that, we were simply having fun and pointing out the still very obvious ..........THE DINAR IS A FABULOUS INVESTMENT AND WILL SOON BE WORTH A LOT MORE THAN IT IS NOW!!!

that's all.....

Originally Posted by Escalade

I'm sure you watch it to see Skeletor!!!!

I don't watch it unless surfing. Personally met both gentlemen at a function and really didn't care for Hannity because he comes off as very cocky "even in person".

Originally Posted by postcon

I think the point of this whole debate has been ignored by this statement of yours. My point is that despite a country's worthless currency, no one can fly into it and buy it out. Buying a country for pennies is a fallacy. Such an option doesn't exist in the world. No one disputes the abundance of riches in Iraq and the bright economic future it has. Its currency will reflect its true value in due course but it might be a steady and gradual rise rather than a huge jump. Of course, it's just my opinion and may not be what most people on here wish to read and that's just fine by me!

Is it? Heres a post from our own Mr Knowles...

Originally Posted by Wm.Knowles
Hello everyone. The FIl allows the international community to buy stocks on the ISX begginning Monday. Is this right? I haven't tracked the stock market over there, but from what I have read, their stock is sold just a cheaply as their currency. Is this right? If so, with the connection of the ISX with the other stock exchanges in Kuwait, Bahrain, Quatar etc. Then anyone in the ME can purchase stocks. How am I doing, still right? If so, then the wealth in the ME is incrediable. I saw this while in Kuwait. There are many individuals just in the ME that can buy ALL of the stocks offered on the ISX especially if they are offered at such a cheap price. They will have done their homework and they will already know which stocks to buy. Its hard for the rest of us to appreciate how much money these individuals have. But it is enough to own Iraq should the dinar stay at such a low level. Why have they not bought ISX stocks until now? They didn't have to. They are already rich and why should they take a chance prior to the law? It wasn't necessary. So keeping the dinar at a low level is not reasonable. I fully understand why the forum is excited over this one. There are several real events and issues that have happened that would predict a rise in the level of dinar. So have a GOOD weekend. Thank You.

Think in terms of the stock market postcon and see if you can still come to this conclusion.

Cheers!
DayDream

Originally Posted by MOM2TWO

YIIIKES...getting between women and their shopping plans....don't you know how dangerous that is!?!?!?!?!

So what you are saying is that I can't REALLY buy several palaces with 20 USD's?? I am pretty sure that we all knew that, we were simply having fun and pointing out the still very obvious ..........THE DINAR IS A FABULOUS INVESTMENT AND WILL SOON BE WORTH A LOT MORE THAN IT IS NOW!!!

that's all.....

Not .

I wouldn't read too much into the latest tripe to come out. There already is speculation going on. Every single day many of us buy more Dinar and I'm sure there are many more doing the same. We know the CBI is trying to remove Dinars from the market on a daily basis therefore they keep lowering the rate. Being that so many have been saying the RV is imminent, I feel confident that there is some "extra" speculation going on at present. The way to slow that down is to make people believe that there is plenty of time left to buy at what is arguably still a low rate. Many will put off buying more until after the holidays so they can get their kids the GI Joe with Kung Fu grip and other goodies for the holidays. Those rushing to buy more might just slow down giving the CBI a chance to remove some more of the supply before it is bought up by all us speculators.

Like anything, this is just an opinion so don't shoot the messenger...

EW

Originally Posted by jessemac

Not .

NOT...what?? not a good investment??? Not...that's all???? WHAT???

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.
(snip)

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.

(snip)

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

My question is , how does going to 1260 fight dollarization? Isnt that still a pathetic rate compared to the established dollar? yes the dollar has declined, but nowhere near to those levels...
unless its a mis-info... or as searay prefers... a smokescreen... is that a boater's terminology?