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

Originally Posted by Socata 850

Number of banks 10 -----
Auction price selling dinar / US $ 1414 -----
Auction price buying dinar / US $ ------ -----
Amount sold at auction price (US $) 17.125.000 -----
Amount purchased at Auction price (US $) ------
Total offers for buying (US $) 17.125.000 -----
Total offers for selling (US $) ------

Goooooooooooooood Morning RolClub !!

Sorry I'm late today, not feeling well these days.


1. The dinar to the dollar is down 2 more points today from 1416 to 1414

2. Another $17,125,000 (net) worth of dinars, (IQD 24,214,750,000) out of circulation

3. 10 banks participating.

4. 26th auction since the beginning of CBI's reval plan

5. 43 days into the CBI's reval plan.

6. 1,237,194,547,000 dinars pulled from circulation !!

7. NO Dinars back into circulation for the 3rd day in a row

8. 63 dinar change since Nov 1st (baseline was 1477) 4.265% increase in value of the dinar since beginning of reval plan

Hello everyone. First, I would like to thank Socata 850s for posting each morning, this gives us an update on each days auction. It is very helpful.
We can see that the re-eval is still at the beginning of a process. By now most everyone knows what this means and how it effects the economy, inflation, and the resulting price of the dinar. There still seems to be two options as to what this initial process means. They (CBI) intend to take the price of the dinar up in a gradual manner and there will be no "bold adjust". Or, they will in the short term, RV the currency consistent with other countries and their financial means to support the currecny at a higher level. Of course the second option is what we all want. And, many think that this "bold adjust" "should happen". But we will have to accept which ever way the CBI intends to take us, we have no control over this issue. I for one have always found myself "wrong" when I get upset about somethig in the world that is not how I think it "should" be. Wasted emotions. Like part of the alcoholic prayer, "accept the things you cannot change". But in any case, the RV is taking shape and whichever direction they (CBI) take, what they have been doing is excactly what you would expect wheather they take it up gradually, or there is an adjustment to real market and value levels. So, what we are seeing does not PRECLUDE a real adjustment in the exchange level to previous levels. i.e. "bold adjust". What they are doing diminishes their liability and reduces the base money supply.And makes it easier for the CBI to support an RV at the higher levels. This slower process also gives the world and Iraqi people time to adjust to the idea that their currency is not at a "fixed" rate. EXACTLY what we would want them to do prior to a larger rise in the exchange rate. Regardless of the speed at which they raise they level of dinar, its becoming just a matter of time. This (time) is the only variable we might disagree on and the only options available to the CBI. The currency is/will rise and we all have made an astute investment. They need to increase the peoples purchasing power so as to allow them to purchase imported goods. Presently, they can not. If they have no purchasing power, then imported goods will not enter the country. So something has to give, the rise in the exchange rate allows more spending on foreign goods and will stimulate more goods moving into the economy to buy. Things will get cheaper for them. An intangible variable is the rise in confidence and well being within the country. One more auction this week and we'll probably see something similiar to what has happenned over the last two weeks. Thank You.

A rise of just 2 for the Dinar today, eh... Well no worries, its all good. The value is going up, right....

Originally Posted by opps50

6 million

HUUHH

You are pretty loaded

If the dinar doesn't reval,you have a lot of toilet paper instead

I can't really lose because, if I wanted to, the Scotia Bank would buy back all my dinar for only slightly less then I paid.

Hi,

Thankyou William Knowles for your info- I agree they cannot really import goods with the exchange rate as it is plus it will cost them dearly to repay their debts at this rate as well but they take the route of continually reducing it by 2 to 4 dinar a day it will be ages before they reach a worthwhile position and i go back to the FIL and HCL in that if they enact in the immediate future then there is no point at this rate, what was the point of passing these laws if they wait another six months to kick it off, surely they must realise that this needs action immediately for the Iraqi economy to improve.

I believe that, between now and Jan 2nd 2007, we will see a big revaluation of Iraqi currency - nothing less than "REAL MONEY" will be good enough for Iraq!

Originally Posted by billknows

I believe that, between now and Jan 2nd 2007, we will see a big revaluation of Iraqi currency - nothing less than "REAL MONEY" will be good enough for Iraq!

I think this is wishful thinking..... I personally do not see a High reval until the far future... maybe a few years from what this latest news has shown. But I sure wish and hope that something like what you say would come true......

Originally Posted by neno

Do you have a subscription to this site. Here are some some good Article Titles I would like to see.

EDITORIAL


Egyptian Government Considers Selling Iraqi Debt to Banks
(Noozz Editorial) Dec 13 2006

US Opens Civil Affairs Bureau in Kurdistan
(Noozz Editorial) Dec 13 2006

Central Bank Denies Attempts to Fix Dollar Exchange Rate
(Noozz Editorial) Dec 12 2006

Ministry Working to Raise Wheat Output
(Noozz Editorial) Dec 12 2006

NoozzVIEW; Oil producers exit from $
(Noozz Editorial) Dec 12 200

When you check out the Noozz web site and see the headlines, they will ask you for subscription ( only $1,500/year) in order to read the full articles...

What I usually do - I copy the headline that I am interested in and I paste it in Google news search box. SOme articles come up that way - from other sources. Some don't...Just a work around.

But the ones that you posted I think they are their own editorials, so I don't think they will be found on other sites.

Hey, neno, after I posted I have noticed that it was your post that I was answering to. Now I am thinking that I don't have to teach YOU how to search the net.LOL

But I will just leave it here for others that may use it...

Originally Posted by PaulieThaGreat

Positive Info:
The RolClub fam has stuck together through this 6 months and some....!

There are members here since the Beginning. Also Need the forum to get back on topic. Must leave for the DayJob right now. Dont want to come back and the forum is all wacked out. I see alot of BS already. Alot of Ban members have been reinstated, so lets prove you all want to be apart of Rolclub. Thanks and enjoy your day.

Originally Posted by adm

The NID Exchange rate in Doha today is $721/1387...it's reval time folks.

What were you paying previously?

Originally Posted by PaulieThaGreat

I think this is wishful thinking..... I personally do not see a High reval until the far future... maybe a few years from what this latest news has shown. But I sure wish and hope that something like what you say would come true......

I totally agree with you on your post. The way economies work is a little complex for an ordinary man or woman to comprehend.

The CBI has started a gradual process of devaluation of the IQD. It does not want shocks due to currency behaviour. In the simplest terms, the Iraqi political economy is sick, it needs blood transfusion and clinical management. Do you think that any qualified nurse would open the valve too wide for the blood to flow into the patient? If the valve is open wide, the patient simply dies.

The way they are doing it is in the best interest of Iraq economy and any monetary change shall have profound effect on the ME.

On another note, the CBI can change its currency completely altogether. Change of currency is one of the policies central banks do resort to when there is inflationary shock.

I do wish the rv comes sooner than expected but it shall take longer than you think.