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

Originally Posted by $onedaysoon$

just incase anyone missed it ;)

He said that the Mkutar of the first tasks of the Central Bank Monetary «policies and their implementation, especially in light of the low standard of living of the citizen in general because of the circumstances that Iraq, which cast shadows on the standard of living of the people, and led to a decline in cash income». He emphasized that «the easiest way to increase cash income of the citizen is to increase the rate of the Iraqi dinar against the dollar, since the increase in the exchange rate automatically lead to a feeling of citizen increasing cash income and the impact positively on the real income, which is supposed to operate by economic institutions other government, such as the provision of housing, education, health, transport, and reduce the wages of some government institutions of public utility such as water and electricity».

Translated version of http://www.sotaliraq.com/

I SEEN IT BUT WAS AFRAID TO SAY "FARM JIG"
ALSO HERE IS SOMETHING ELSE THAT JUST FELL IN MY LAP - HERE IS SHORT STORY - THE GENTELMAN EMAILED ME BACK:
By Sabri Zire Al-Saadi
This article was written for MEES by economic advisor Sabri Zire Al-Saadi, a UN former employee who held senior economic posts in Iraq.

these are his lastest documents
October 16, 2006
also was posted on Iraq Update

Part 2 October 23

Ok I need HELP EXPERTS - Because he say I can reply with any questions after reading these two documents. This is what I emailed him first:

Date: Thu, 14 Dec 2006 13:51:29 -0800 (PST)
Dear Mr. Al-Saad,

If I may take of your time, I would like to ask you a few question about the following that you wrote:

Iraq's National Vision, Economic Strategy, and Policies
Strategic Insights, Volume V, Issue 3 (March 2006)
Conclusions
Iraq has the required human and natural resources to become a successful, democratic, and free
market economic model in the Middle East. The failure of its current fiscal and monetary policies,
economic reforms, and reconstruction of infrastructure necessitates a new initiative.
In addition to political stability and will, the government should have an inspiring future vision and
well-defined strategy and policies, rather than old-fashioned practices or business-like
management. The pace of the required economic liberalization, and increasing the contribution of
the private sector to the GDP and public finance, will depend on the application of an initiative
consisting of long-term economic strategy, medium-term structural economic reforms, and shortterm
fiscal and monetary stabilization policies—as well as the implementation of an integrated
program for reconstruction of physical, social, and environmental infrastructure.

Per you comments in your Conclusion:
You state the failure of of it's current fiscal and monetary policies - has the governement started in any way to change these? The Iraqi people are still paying high prices for things in markets. The CBI is trying to bring down inflation by taking dinar off the market. Just in the month of October CBI took almost 2 trillion dinar out of the market and continue to now every auction to bring down the inflation by removing dinars. Is this a proper way to control inflation? Or would it better to revaluation the currency to the world market?

Also Iraq government has passed the FIL and HCL - when will these be enacted to open up the economy of Iraq to help?

Do you have other documents that you have wrote on Iraq since June? If so were my I find them on the internet.

I, thank you for your time.
I look forward to any response you may have.

Regards
Mrs. CK Beasley

OK SOMEBODY PM WITH QUESTIONS THAT I CAN ASK - BRAIN FREEZE AND A BIT TONGUE TIDE WITH SHOCK HE EVEN EMAILED ME A REPLY

HELP!!!!!!!!!!!!

Originally Posted by postcon

Can someone pls clear this up for me? According to Wikipedia, "no currency in history has ever appreciated 1000% against the United States dollar, and a currency swing that severe would have negative consequences for Iraq's economy." Would it be possible for the dinar to make such an astronomical appreciation that it equates to a dollar or more?

Secondly, in relation to the Iraqi coins, I cannot think of any country's coins to worth a lot. Currently, Iraq has a 25 dinar coin and a 100 dinar coin. Apparently, there are lower denomination coins as well. If the dinar rises in value to be equal to the dollar, how could they possibly have a coin worth 100 dollars assuming one dinar will be equal to one dollar?

Please excuse me if the above appear stupid but I hope someone can throw some light on these just so I can clear my mind. Thanks in advance.

Well, your first question I think I can help you with....It's Wikipedia!!! Enough said.

Originally Posted by DayDream

I just pulled this from one of my past posts...

Iraqi dinars per US dollar - 0.3109 was the fixed official rate since 1982 and the 2nd set of books still reflect this rate.

In 1989 the money changers were selling at 1.86 USD or .537 IQD so the people were paying MORE instead of the .31 NID.

Cheers!
DayDream

Keep in mind that rates from decades ago have very little relevance to today's economy. While historically they are mildly interesting you should not bank on those rates reviving today. The World economy today is far more complex and intricate than even 10 years ago much less 20 or 30. More likely Iraq has calculated all the factors of their neighbors financials, population, assets, etc and have come up with an optimum target rate for todays current situation. Most likely they are headed to the levels of their fellow neighbors and OPEC members Saudi Arabia, Qatar, and UAE. Great news for us all.

Originally Posted by Adster

Well kristin I feel for US members if they do. With the dollar sinking and Iran planning on ditching the dollar too I'd hate to think what the outcome will be. A deep depression for the country.

Not Hardly. You just need to be more Educated to understand how the Decline of the Dollar will totally Benifit most Americans. Now for Corporate America.....Yea it is not good for them unless, they move back home and where they should be and hire the American Workforce back. From what I am learning about Economics of this very situation, the next two Decades could be very good here at Home.

I will point out that if you want to earn more dollars on your Investments Globally, as the dollar does decline, OSW has been saying allong, Point your Dollars in Internation Accounts to earn More Foriegn Currency, then exchange for more Dollars back when needed. Sorry, I had to say this. I am Learning it to be Great for us at Home.

Originally Posted by postcon

Can someone pls clear this up for me? According to Wikipedia, "no currency in history has ever appreciated 1000% against the United States dollar, and a currency swing that severe would have negative consequences for Iraq's economy." Would it be possible for the dinar to make such an astronomical appreciation that it equates to a dollar or more?

Secondly, in relation to the Iraqi coins, I cannot think of any country's coins to worth a lot. Currently, Iraq has a 25 dinar coin and a 100 dinar coin. Apparently, there are lower denomination coins as well. If the dinar rises in value to be equal to the dollar, how could they possibly have a coin worth 100 dollars assuming one dinar will be equal to one dollar?

Please excuse me if the above appear stupid but I hope someone can throw some light on these just so I can clear my mind. Thanks in advance.

Great questions, Post. First off Wiki is no financial expert. It's an online "encyclopedia" that almost anyone can put material into. The IQD can appreciate 1,000% (most likely will in a gradual manner) because it has been artificially held low for 3 required years. They did this for stabilization purposes required by IMF Stand by Agreements. Now that they've built $15 Billion in reserves and begun the infrastructure rebuild they are free to begin the IQD value increase process that they actually need to help spur the economy. As far as the coins, we won't need to deal with them until the value reaches around .02 USD. Most likely when they get to those levels they will add new notes in the 25 and 100 Dinar denominations plus other lower ones as needed.

Originally Posted by postcon

Can someone pls clear this up for me? According to Wikipedia, "no currency in history has ever appreciated 1000% against the United States dollar, and a currency swing that severe would have negative consequences for Iraq's economy." Would it be possible for the dinar to make such an astronomical appreciation that it equates to a dollar or more?

Secondly, in relation to the Iraqi coins, I cannot think of any country's coins to worth a lot. Currently, Iraq has a 25 dinar coin and a 100 dinar coin. Apparently, there are lower denomination coins as well. If the dinar rises in value to be equal to the dollar, how could they possibly have a coin worth 100 dollars assuming one dinar will be equal to one dollar?

Please excuse me if the above appear stupid but I hope someone can throw some light on these just so I can clear my mind. Thanks in advance.

There has also never been a currency that was devalued to such an artificially low price.

Originally Posted by postcon

Can someone pls clear this up for me? According to Wikipedia, "no currency in history has ever appreciated 1000% against the United States dollar, and a currency swing that severe would have negative consequences for Iraq's economy." Would it be possible for the dinar to make such an astronomical appreciation that it equates to a dollar or more?

Secondly, in relation to the Iraqi coins, I cannot think of any country's coins to worth a lot. Currently, Iraq has a 25 dinar coin and a 100 dinar coin. Apparently, there are lower denomination coins as well. If the dinar rises in value to be equal to the dollar, how could they possibly have a coin worth 100 dollars assuming one dinar will be equal to one dollar?

Please excuse me if the above appear stupid but I hope someone can throw some light on these just so I can clear my mind. Thanks in advance.

True - there may have been no other country to accomplish this extraordinary feat up to now - but there's always a first time for everything - RIGHT?! (Actually, if you look more closely, you'll see that Afghanistan's currency went into the tank immediately following the war to oust the tali ban - it rose astronomically to a value of .02 US at midnight on Jan 1st, a couple of years ago - and for a country with no other assets than dirt, rocks and poppies - that's pretty good!)

You must also admit that if a currency can become virtually worthless overnight - it could certainly regain it's value overnight! Can you see my point?

First of all - the dinar would not be appreciating against the US dollar at all - it would be appreciating TOWARD THE US DOLLAR - BIG DIFFERENCE!!

Second - a revaluation of that kind would have enormous benefits for Iraq and the rest of the world.
Wealth doesn't cripple a nation - it builds a nation!

Third - it would be all to easy for the dinar to be worth $1.00, after all - if an American Dollar can be worth $1.00 then an Iraq dinar can just as easily be worth $1.00 or for that matter considerably more (it was Iraq that invented paper money and dinar actually means "dollar"!)

Any country in the world can make their currency worth $1.00 - but you had better have the gold or the oil to back it up! Certificates verify the dollar value of oil in the ground at over 200 oil fields in Iraq (astronomical!)!

Hey - your questions are great... but be sure to give due consideration to the answers.

(I notice that you never take the time to thank anyone for attempting to shed light on you questions. It takes considerable effort to respond to your continuous stream of inquiries - a "thank you" would certainly be appreciated - by the way... your questions look very nice!)

I think this has been posted before but wasn't someone looking for this article last night?

Raising the dinar to reduce prices in market


Increasing the value of the Iraqi dinar against the dollar may hurt imports but it will help domestic trade.

The news about the appreciating value of the dinar against the dollar has hit the market in Suleimaniya hard. Many will lose their jobs. People believe that neither the government nor the Central Bank can carry out such a critical decision.
Mr. Ali Abdullah of the Bank of Harem (The Regional Bank) says that attempts to raise the value of the dinar are not something new, but many preparations have been made in order for the plan to go ahead. He says that the decision was made to overcome the economic crises in Iraq.

"To increase the value of the dinar, the government has to increase exports and produce more goods," Mr. Abdullah believes.

Despite the fact that no official spokesperson from the Central Bank has ever issued such a firm decision decreasing the dollar value to 1250 ID from its previous value of 1450 ID has created an unnatural shake in the local markets.

Professor Dr. Narmeen Marouf, an economist, tells the Kurdish Globe that this move from the Central Bank aimed at solving the inflation crated due to the high value of the dollar. "If the value of the dinar goes up, the price of goods will decline sharply; they have been paid off in dollars and are sold in dinars," she says, adding that the Central Bank has also tried before to reduce prices and balance off the supply and demand in the local markets. "As the value of the dinar increases, consumers and the local merchants are the first to benefit."

Since rumours started that the dinar was going to increase in value, many have faced sever financial damages, said Kamaran Ali.

At the moment, Iraq is not exporting any goods other than oil. Almost all goods in Iraqi markets are imports; hence the inflation, particularly when the value of the dinar declines for having no support, although it is quite possible for a decision as such to be made in order to reduce domestic issues. The decision will have two beneficiary forces - it will help Iraq vie for foreign markets and reduce prices in local ones.

"Since rumours started that the dinar was going to increase in value, many have faced sever financial damages," Kamaran Ali, of Money Mart, says. However, he does not believe in such a decision. "Increasing the value of the dinar" he says, "will not benefit anyone."

After 2003, the Iraqi Central Bank decided to peg the value of the dinar. Primarily, a dollar was equal to 1,450 ID, until the value of the dinar was reduced and a dollar became 1,470 ID, then 1,500, at which the price the value of the dinar seemed to stay still.

Source: The Globe

Or was it this one?


The Iraqi Central Bank denied rumors on its quest to determine the rate of the American dollar against the Iraqi dinar value of one thousand dinars. Dr. Madhhar Mohammad Saleh, Head of Research and Statistics in the Central Bank, said in a meeting with reporters and Iraqi economists last Sunday: that the issue of determining the exchange rate of the dollar against the Iraqi dinar is not possible, now, for two reasons: first, the reserve capacity of the bank is not absolute, and second is the factor of the price increase.

He added: observing the general trends point to higher prices in return for a lack of improvement, which makes the dollar reduction to this value impossible at the present time, in addition to the limited financial capabilities of the Bank.
He explained: that the significant decline in the dollar, directly after the fall of the previous regime, was caused by the flow of billions of dollars to Iraq and distributing them among employees as well as opening exchange and restrictions. He pointed out: that at the present time and because of the deterioration of security and the high rate of inflation, the devaluation of the dollar is not expected at all.

Source: Iraq Directory

Qatar shatters Iraqi hopes as Asian Games end DOHA, Dec 15 (AFP) Qatar shattered Iraqi hopes by beating them 1-0 in the football final as 14 days of Asian Games competition ended. China was the overwhelming winner with 165 gold medals, South Korea second with 58 gold and Japan winning 50. Kazakhstan, Thailand, Iran, Uzbekistan, India, Taiwan and Qatar rounded out the top 10. (Posted @ 23:58 PST)