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

daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 12/ 12 so the results were as follows :

Details Notes
Number of banks 11 -----
Auction price selling dinar / US $ 1416 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 18.180.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 18.180.000 -----
Total

Hi,

Just read the piece where on Nov 18th the finance minister stated that they would put before parliament to increase the dinar by 13%. If this is true we have had it. Still does not make sense, I did not think that sort of thing had to go before parliament to be voted and that it was done by the CBI. What is everyones thoughts on this.

ÌÑíÏÉ ÇáÕÈÇÍ - ÇáÓÜíÓÊÇ&# 228;í æÇáÝíÇÖ íÏÚæÇä Åáì ÊÜÃãíä ÇáÍíÜÜÇ&#201 ; ÇáÍÜÑÉ ÇáßÜÑíã&#201 ; ááÔÜÚÈ ÇáÚÑÇÞí


ÌÑíÏÉ ÇáÕÈÇÍ - ÇáãÇáßí íØÇáÈ ÈÅÌÑÇÁÇ&#202 ; ãÓÊÚÌáÉ áÊäÝíÐ ÈÑäÇãÌ ÇáÍßæãÉ ÇáÎÇÕ ÈÇáÚåÏ ÇáÏæáí


ÌÑíÏÉ ÇáÕÈÇÍ - ÇáÓÜíÓÊÇ&# 228;í æÇáÝíÇÖ íÏÚæÇä Åáì ÊÜÃãíä ÇáÍíÜÜÇ&#201 ; ÇáÍÜÑÉ ÇáßÜÑíã&#201 ; ááÔÜÚÈ ÇáÚÑÇÞí


ÌÑíÏÉ ÇáÕÈÇÍ - ÑÌÇá ÇáÃÚãÇá ãä ÇáÚÑÇÞ æÅíÑÇä íÚÊÒãæä ÊæÓíÚ ÇáÊÚÇæä ÇáÇÞÊÕÇÏ&# 237; æÇáÊÌÇÑ&#237 ;


ÌÑíÏÉ ÇáÕÈÇÍ - åá ÊÚÏ ÑæÇÊÈ ÇáãæÙÝí&#228 ; ßÇÝíÉ áÊæÝíÑ ÇáÇÍÊíÇÌ&# 199;Ê ÇáÖÑæÑí&#201 ; ¿


IZDIHAR ROUND-UP: Iraqi Business News


.:: Peyamner Daily NEWS::.


Welcome to ALrafidayn: The Iraqi information service


Sotaliraq.com


Sotaliraq.com


Sotaliraq.com


Sotaliraq.com

Number of banks 11 -----
Auction price selling dinar / US $ 1416 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 18.180.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 18.180.000 -----
Total offers for selling (US $) ------

Goooooooooooooood Morning Future Millionaires !!




1. The dinar to the dollar is down 3 more points today from 1419 to 1416

2. Another $18,180,000 (net) worth of dinars, (IQD 25,742,880,000) out of circulation

3. 11 banks participating.

4. 25th auction since the beginning of CBI's reval plan

5. 42 days into the CBI's reval plan.

6. 1,212,979,797,000 dinars pulled from circulation !!

7. NO Dinars back into circulation for the 2nd day in a row

Originally Posted by mrpoopular

daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 12/ 12 so the results were as follows :

Details Notes
Number of banks 11 -----
Auction price selling dinar / US $ 1416 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 18.180.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 18.180.000 -----
Total

Alright lets keep going, 2 consecutive days with 3 unit drops in the dinar rate. That is the first time that has happened. Chugga chugga, woo woo woot... Lets pick up some steam... Do I hear 3, 3, I got a 3, do I hear 4, 4, come on 5. I would be thrilled to see this dropping by 5 units a day. Anyhow, night all.

Originally Posted by abbey56

Hi,

Just read the piece where on Nov 18th the finance minister stated that they would put before parliament to increase the dinar by 13%. If this is true we have had it. Still does not make sense, I did not think that sort of thing had to go before parliament to be voted and that it was done by the CBI. What is everyones thoughts on this.

Hello everyone. This question has come up before, " How independent is the CBI from the GOI"? When you read the rules and policies of the CBI, you find they are a mirror of the Fed Reserve System in the US. We think we have only three branches of Gov. In the US, actually we have four. The Fed (and CBI) are apart and independent of the GOV. This is a little difficult for most Americans to grasp because we are led to think that our Gov. controls what happens in our country and the idea that there is an organization that can have so much influence and not be under the control of the GOV. and politicians is foreign. Yet this is what we have in Iraq (and the US). They set it up that way. Teams from the New York Fed have been in Iraq helping the CBI from the beginning. So political statements by politicians may have little influence and no control over the central banks policies. They (CBI) have a plan and they are implementing it before our eyes. What they have done is almost like a "test the water type of movement". Raise the exchange rate by small amounts to get the people use to movement of the excjange rate and taking more money out of the economy. But, this can't last forever. Already the press in many different parts of the world are picking up on the news that the exchange rate is moving. None of this PRECLUDES a bold adjust in the exchange rate. A good poistion is that they are "pre-positioning" themselves for a more dramatic movement. I think this might be the case. They are going to buy as much dinar they can at these low levels to reduce their liability. But, they are not selling dinar, they are raising the exchange rate, and they are "sweeping" the system of excess. All of this under the guise of combating inflation. Decembers inflation numbers should begin to reflect this monetary intervention and we should see lower inflation numbers. This in itself will put pressure on the exchange rate and be viewed as an excellent sign as to the health of the Iraqi economy. Combine this with their currency reserves, their gold, and their oil income, and when all of this is taken together, expect an increase investment in Iraq, increased demand for the currency and when we consideer a "shut off" of supply, this results in a formula for a rich country to bring its currency up to respectable levels, i.e. an RV at higher levels. Everyone needs to relax and enjoy the ride. Have a good Day.

Originally Posted by Wm.Knowles

They (CBI) have a plan and they are implementing it before our eyes. What they have done is almost like a "test the water type of movement". Raise the exchange rate by small amounts to get the people use to movement of the excjange rate and taking more money out of the economy. But, this can't last forever. Already the press in many different parts of the world are picking up on the news that the exchange rate is moving. None of this PRECLUDES a bold adjust in the exchange rate. A good poistion is that they are "pre-positioning" themselves for a more dramatic movement. I think this might be the case. They are going to buy as much dinar they can at these low levels to reduce their liability. But, they are not selling dinar, they are raising the exchange rate, and they are "sweeping" the system of excess. All of this under the guise of combating inflation. Decembers inflation numbers should begin to reflect this monetary intervention and we should see lower inflation numbers. This in itself will put pressure on the exchange rate and be viewed as an excellent sign as to the health of the Iraqi economy. Combine this with their currency reserves, their gold, and their oil income, and when all of this is taken together, expect an increase investment in Iraq, increased demand for the currency and when we consideer a "shut off" of supply, this results in a formula for a rich country to bring its currency up to respectable levels, i.e. an RV at higher levels. Everyone needs to relax and enjoy the ride. Have a good Day.

Excellent post. I have been thinking that the slow start in the Dinar exchange rate rise by the CBI combined with the positive exchange rate rise stories put out by the GOI in the local Iraqi press stories for the Iraqi people is akin to alerting the Iraqi's that a flood is coming, only this flood is their economy. Hurry before its too late to find high ground. Also, a few weeks after it has begun we see some stories come out in the world press, some good but mostly negative (I believe to deter the outsiders) and it seems apparent that events are about to begin rolling along of their own accord. Very well said Mr. Knowles....

Wish I could make a graph showing the intersection point of the exchange rate rise versus the supply/demand for the Dinar... ah I can wish can't I Wm.



<--My youngest son loves this guy, so heres a few more-->

Originally Posted by michael16

Remember this article it was only a couple of days ago. So this reval is capable of almost anything.



According to a recent paper published last November by Dow Jones after the world economic forum in the dead sea, Iraq's income from oil exports for this year was at 35 billion dollars with a 14.3% increase from last year's total.

And that if oil export levels retain the current level and under stable prices, the coming year will witness a record income that was never reached in the history of modern Iraq and revenues will jump up to 40 billion dollars; a huge figure given the humble plans of the government and a figure that will put the government in a position where it must come up with new and ambitious plans to match the new revenue figures.
In fact and from what can be read in papers and heard from official statements it seems most government departments failed to spend the funds allocated by the government for those departments to execute their projects.

That's not because of security challenges only since there are several regions in the country that are relatively stable and where work can be done but more because of bureaucracy and corruption that make it extremely difficult to implement plans and make sure the money is spent in the right direction.

I think this was what pushed the government to announce a number of new measures to cope with the condition, perhaps the easiest measure to come up with was to announce plans for massive raises for civil servants; according to al-Sabah the raise will be as high as 60% of current payments in some cases, especially to those with lower incomes.

Another announcement followed soon, yesterday al-Sabah brought the news that the parliament is discussing a suggestion to set aside 30% of oil sales income to distribute among the citizens of Iraq. The draft law sets 3 classes of payments according to age and subsequent needs and responsibilities; from one month to 6 years, from 6 to 18 years and the third one 19 years and older.

People who migrated from Iraq, those with salaries higher that 1 million dinars/month and convicted criminals will be excluded from the payment program, the report added.

The people here met the news with some delight, hope and some skepticism too although the announcement came through the government's paper.

If this plan comes to materialize I think it can reflect positively on the security situation to some extent. The economy is part of the problem and also part of the solution and the government should move forward with reforms that involve economy and infrastructure as well as, of course and above all, security.

I personally like the idea of distributing the money directly among the population because I believe the people are more capable of making good use of that money than the government and instead of having billions lost to corruption and mismanagement that money will be used to revive the market and reduce the government's control over the economy. Plus, it will give people the sense that they do have an actual and visible share of their country's riches.

The private sector in Iraq had witnessed giant leaps immediately after the fall of Saddam; that could be seen in the form of the thousands of private businesses that were established in the course of the past three years and that had a direct positive effect on the standards of living after long years of deprivation.

It's worth mentioning that between 1946 and the beginning of 2003 a total of 8374 businesses were registered while between April 2003 and the end of 2005 more than 20,000 have been registered. During last month alone 286 new businesses were added.

Such statistics seem quite extraordinary under the current security situation which sadly continues to overshadow and limits further improvement of this aspect of life in Iraq.

On the other hand, the exchange rate of the Iraqi dinar improved significantly in the past few weeks and is now at 1410/$1 instead of 1480/1$ in early November. I am no economy expert but this looks like a good sign; it improves the purchase ability of people who get paid in dinar, which is the vast majority of course and at the same time it serves to reassure the people of the value of the national currency.

Let's imagine if the government intensifies its efforts in this direction and takes some candid and well-studied steps to offer a convenient environment for business and investment particularly in Baghdad, the heart of the country's economy. A lot of progress can be made, especially that the foreign investment law has been instated and approved which by the way looks like a good paper. This economic activity can move Iraq forward in a matter of few years and the country can catch up with what it missed.

The potential is huge; a stable climate is the key to unleash that potential.

Holding IQDs is a speculation. A rv as projected by some people in the forum is not going to happen over night. There are several reasons to this. But the political economy is the key. A stable government accepted by the majority of Iraqis plus a productive economy not relying on oil revenues alone are key interplay forces that shall determine the valuation of IQD against other hard currencies notable the USD and the Euros.
The CBI shall do a rv in a gradual process {no hurry} which shall take more than three to six years or even more. Just have a look at the paragraphs above. Those with more than 1m IQD monthly salaries etc shall be excluded. How many are they in Iraq. Compare it with speculators holding more than 1m IQD. If the rv happens on a 1:1 basis, can you imagine the inflationary tendency this would create in Iraq and the ME region, let alone other economies. Mark you money supply is regulated by the Central Banks. The fear of hyper inflation (too much money in the economy not backed by a full productivitiy in ALL sectors), which could lead to political instability is what the CBI is guarding against.

RV shall occur, as it is happening already, in short term to long term stages as it is pronounced by financial policy officials in Iraq.

Continue the wait. A RV is not gona happen overnight! Just have a look at this: The potential is huge; a stable climate is the key to unleash that potential.[/QUOTE]
...this quote speaks volume!

Is the staff salaries sufficient to provide the necessary requirements?
One proposal to increase the salaries of the staff which will be introduced in January 1, 2007 to five degrees from the 10th to reach between 40% to 60%, whether it will be after these increases to reconsider a new salary scales for staff on the basis of the certificate seminars and years of service and the assessment of the employee's performance or accrued on the basis of points
2 ـ أ.Two re-introduction of annual increments and promotions, and the years of financial value. 3 re-calculate and entitlement bonuses previous annual before the application of Administrative Order (30) Supplement in the January 1, 2004, bonuses subsequent annual and especially grades First Second Third Fourth, the Fifth, six, - seventh, eighth, ninth, the tenth / ranks tenth, as we were given these ranks tenth because it considers (promotion) and PROMOTE) from one degree higher degree, but arrived so, under Administrative Order to the Ministry of Finance No. 38546 in the 27 / 12 / 2005 containing the "the staff member who obtains book thanked the granted forward to a period of one month on each book acknowledged, excluding grades all, ranks tenth because it considers (promotion) To اوجود instructions from the Ministry of Finance according to notifications References administrative and financial in government ministries since the change in the April 9th, 2003 and so far, to lack of the grades the vacant and the lack of financial appropriation!!
4 ـ .4 we hope when legislation peace new salary As stated official source at the Ministry of Finance the cancellation of the principle of "the housing issue", which mean the arrival of many of the campaign certificates the prep and college graduates who the functional to first class / b just as was in place in the orders and instructions financial Yugoslavia, and there was too much of employees in the government were in the first class / b were landed According to the case law of the Chambers to two degrees or more, according to peace new salary and it should be within the third class in tenth place, but what we say to those who created system "the housing issue" were reserved third class of the graduates of and campaign certificates from Bachelor's Degree and above, the second, and the first and left the fourth degree for college graduates who artistic and the prep.
5 ـ ..5 Why not been adopted handed staff salaries proposed by the Office of integrity, which is the basis adopted by the Ministry of Finance, which increases the salaries of the staff within the peace staff salaries by 50 70% of all grades from first to 10th, as the real justice in the distribution of increases of Finance for all and Aitrk a psychological impact and the sensitivity between the degrees granted by the Ministry of Finance and degrees again not granted, high prices and inflation and the difficulty of living and provide the basic needs include all personnel of all grades, without distinction.
6 Are these increases in staff salaries would also retired or not, especially if we know that there is a law to make the salaries of retirees, 80% of the salaries of their peers in the post, as well as staff to be sent to retirement who are waiting for the activation of this law, and giving the staff member who referred to the retirement salary bonus years of service as a valid previously
7 ـ .Seven raise the tax on the salaries of staff in the salary scales referring to ten degrees.
8 ـ the value of the salary class / ranked original salary (nominal) in addition to fixed allocations by the Ministry of Finance Kalzojih, children, and suggests that every ministry and, depending on the nature of work allocations professional staff deserve to be exercised employee of this work already, Kkhatorh, infection, remote areas and the geographical distance from the centers of cities, and the provision of financial provision by the Ministry of Finance to the ministries.
9 unifying peace salaries of staff in all the organs of government, the House of Representatives and the Presidency and the Council of Ministers and Ministers are Pedrjthm, on the basis of the government program, "political" to the government of Mr. Nuri Al-Maliki point "25" (the development of effective mechanisms to control spending and address the financial and administrative corruption and activate the constitutional articles of this pledge and commitment by) 10 in the case of distribution of land for housing staff and the granting of mortgage loans, and the distribution of financial advances, how the remainder of the salaries of staff of ten degrees, Would amount (salary) little to sustain life in inflation, the rise in prices, for the purpose of providing food, clothing, housing and participate in the "diesel" station eligibility for the provision of electricity, oil and gas, transport, and social obligations other miscellaneous.
.We appeal to the Minister of Finance esteemed for consideration of these proposals and fairness to the staff through the issuance of the orders and instructions that serve the ministerial segment administrative staff, and enable them to secure a decent living, and published in this newspaper.
ÔÈßÉ ÇáÒæÑÇÁ ÇáÃÚáÇãíÉ - åá ÊÚÏ ÑæÇÊÈ ÇáãæÙÝíä ßÇÝíÉ áÊæÝíÑ ÇáÇÍÊíÇÌÇÊ ÇáÖÑæÑíÉ ¿

Maysan Governorate Council called on the owners of companies and capital, local and international investment in the province of Maysan. Taha said the guest Chairman of the investment in the preservation of the Iraqi national correspondent : "The legislative and executive bodies
.In the province, and will provide all guarantees for the investment projects in all different economic fields. He added : "The Council is holding a workshop for businessmen in the province to publicize the advantages of the Iraqi investment law, which was approved by the House of Representatives recently. " من ."For his part, the head of the Construction and Development Council Mohan What Shabib :" The Security Council is ready to maintain extend all facilities to investors in the special administrative and technical aspects and taking the necessary steps to encourage the process of investment in this province.
".He said : "What is enjoyed by the preservation of resources will contribute to a qualitative leap in its reality in the tourism and economic aspects."
.The Council of the Iraqi parliament has ratified the Iraqi investment law on the 10th of the month of October last was submitted to the presidency for approval to be valid.

http://64.233.179.104/translate_c?hl...%26Itemid%3D73