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

Originally Posted by nventr

I have read prior posts (a month, and more, ago) that the fils of the Saddam era were simply withdrawn and put into storage. They apparently did not bear Saddam's image so they could quite reasonably be re-introduced when the need for small value currency arises (real soon, we all hope and trust).

Highly unlikely. Those old notes are of poorer quality than today's technology. It's easy enough to plate up new notes as they are needed (in fact the new denominations might already be printed up and stored). Better quality and harder for counterfeiters to cheat. Here's a cool website you might want to punch around in: http://www.islamicbanknotes.com/

Originally Posted by MunnyBaggs

Nothing at all odd about this. IQD exchange rate is listed and tracked on several FOREX sites including Oanda. The teller has no clue about FOREX and wouldn't know you can't currently trade IQD on FOREX. FOREX lists and tracks many currencies that they don't actually trade. We are a long way from getting IQD onto the FOREX exchanges, but one day it will be there.

Wrong again!! Your Munkey Model is wrong again!!..It is trading on the FOREX Interbank Market! Maybe you should update your Munkey Model again, for the 201st time..

Originally Posted by DayDream

Found this article..few months old but very interesting...

Monetary Policy And Oil Production

Source: By Sabri Zire Al-Saadi

10/24/06

It is indisputable that maximization of crude oil production is required in the short and medium term as oil revenues are essential for financing public expenditures and imports10. This policy is also in line with the interests of both the oil consumer and OPEC countries, regardless of the pricing factors of oil exports in global markets. But while the macroeconomic policy and oil production should be consistent in order to rationalize the allocation of resources, especially oil revenues, for increasing economic growth as well as providing social services and public utilities, the present monetary policy and especially the FXR have misled economic efforts.



Cheers!
DayDream

This is the gentleman that I have been talking to by email - I post last night around 5pm this document and another he wrote on October 16th - I ask for folks to PM me with questions to email him back with - NO pm's this morning.

THANK YOU DayDream - I have read many of his documents and he maybe a good soucre. I will continue to visit with him by email.

Originally Posted by Pippyman

Good analysis "GK". Do you think the IQD at $.06 as you noted above has any relevance to the recent article about the Minister of Labor and his comments about loans to Iraqis for "10,000(approx. $6,600)dinars"? Thanks!

Pippy, that mystery has been solved. Not sure if this has been posted here or not but:

How the sentence in the article was written:

Each family will be given a loan of 10,000 dinars (approx. $6,600) to start the project, he said.

Should have been written:

Each family will be given a loan of 10,000,000 dinars (approx. $6,600) to start the project, he said.

Looks like the reporter, or transcriber, or editor left off three zeros. 10 million IQD at todays .00066 rate = around $6,600. Mystery solved. Why would some Joe Palooka reporter have any more inside information than anyone else? First instinct was right, this was a misprint.

Originally Posted by Bubba Dinar

Wrong again Munkey..It is trading on the FOREX Interbank Market! Maybe you should update your Munkey Model again, for the 201st time..

First I've heard of this. Can you prove it? Have you made any buys or trades on that market? Anxiously awaiting your answer because this is HUGE news.

Oh, and btw I'll edit to add the Model has been updated today as you can see below. Thanks for the advice tho, bro!!!

Originally Posted by "GK"
The HCL is very important. We're talking about Iraq's major export and source of revenues. Alot of oil companies and big oil consuming countries are already wating in line for this to get finalized. I'm only interested on 2 things regarding the HCL. One is the PSA, which is pretty much a done deal. The other is to see in print that the IQD may be used in oil transactions. But, I think the latter is a moot point even if I don't see it on the HCL in black and white. I think they're doing the latter now anyway. As far as rate, like I said, everything seem to revolve around that magic number 15. The differences will be a matter of decimal points.

Originally Posted by motomachi

So the revaluation will be a big flip in the banking industry; what they thought might not happen will just surprise the naysayers to no end, especially the ones that talked themselves out of investing in the IQD.

So we are looking at $.66+, okay, now all we need is the formula to get together: ICI + FIL + HCL = "A whopper RV!"

RV

In basic terms we're waiting to see if HCL allocates a % of the oil futures revenue towards CBI foreign reserve assets. That is critical to any high re-val and can dramatically change the formula. While the FIL is critical to the Iraqi economy it is basically protections of Iraqi businesses and assets. HCL is the biggie.

Originally Posted by MunnyBaggs

Pippy, that mystery has been solved. Not sure if this has been posted here or not but:

How the sentence in the article was written:

Each family will be given a loan of 10,000 dinars (approx. $6,600) to start the project, he said.

Should have been written:

Each family will be given a loan of 10,000,000 dinars (approx. $6,600) to start the project, he said.

Looks like the reporter, or transcriber, or editor left off three zeros. 10 million IQD at todays .00066 rate = around $6,600. Mystery solved. Why would some Joe Palooka reporter have any more inside information than anyone else? First instinct was right, this was a misprint.

The last CBI rate is .0007087@1411. To get the .00066 to work it needs to be @1515. So how do you fig the misprint is on the 10 mil.??? I liked it better when you were over on IIF. Hey here's an idea...Why dont you leave here and go Back to IIF!!!!!

Originally Posted by MunnyBaggs

First I've heard of this. Can you prove it? Have you made any buys or trades on that market? Anxiously awaiting your answer because this is HUGE news.

Interbank means between Banks! You personally cannot trade the Interbank Market. Bank-to-Bank. It has been trading FOREX Interbank for about a year.. I believe the CBI sells to banks, other than the Iraq CBI Member Banks thru the FOREX Interbank Market. Do you really think the Billions of Dinars that Chase, B of A sell have been smuggled on donkey carts over the Jordanian Border? I bet your Munkey Model needs to be updated again!!

The Oil Connection in Iraq Study Group Report



Arab News - 16/12/2006




(MENAFN - Arab News) A group of Iraqi politicians and ministers is close to finishing a draft of a national oil law that, if enacted, would be the most significant legislation passed by the government so far and help narrow some of the country's major political schisms, according to the International Herald Tribune.
The working draft calls for the central government in Baghdad to collect oil revenues and distribute them to provinces or regions based on population. The law could also encourage foreign investment in the oil industry.

General George W. Casey Jr., the senior American commander in Iraq, and Zalmay Khalilzad, the US ambassador, have urged Iraqi politicians to put the oil law at the top of their agendas, saying it must be passed before the year's end.

Interestingly, the Iraq Study Group report released on Dec. 6, emphasized that an equitable oil law was a necessary cornerstone to the process of national reconciliation and thus to ending the war. In a major far reaching recommendation to deal with the situation in Iraq, the report called for opening Iraq to privatize foreign oil and energy companies, providing direct technical assistance for the "drafting" of a new national oil law for Iraq, and assuring that all of Iraq's oil revenues accrue to the central government.

The ISG said: "Expanding oil production in Iraq over the long term will require creating corporate structures, establishing management systems, and installing competent managers to plan and oversee an ambitious list of major oil-field investment projects.... The United States should encourage investment in Iraq's oil sector by the international community and by international energy companies."

It may be recalled that President George W. Bush hired an employee from the US consultancy firm Bearing Point Inc. over a year ago to advise the Iraq Oil Ministry on the drafting and passage of a new national oil law. As previously drafted, the law opens Iraq's nationalized oil sector to private foreign corporate investment, but stops short of full privatization.

The ISG report, however, goes further, stating that "the United States should assist Iraqi leaders to reorganize the national oil industry as a commercial enterprise." In addition, the current constitution of Iraq is ambiguous as to whether control over Iraq's oil should be shared among its regional provinces or held under the central government.

The Iraqi constitution, drafted under US supervision, leaves the door open for regions to take the lead in developing new oil resources. Article 108 states that "oil and gas are the ownership of all the peoples of Iraq in all the regions and governorates," while Article 109 tasks the federal government with "the management of oil and gas extracted from current fields." This language has led to contention over what constitutes a "new" or an "existing" resource, a question that has profound ramifications for the ultimate control of future oil revenue.

If the ISG proposals are followed, Iraq's national oil industry will be privatized and opened to foreign firms and in control of all of Iraq's oil wealth, says Antonia Juhasz, author of "The Bush Agenda: Invading the World, One Economy at a Time.

However, the proposals should not come as a surprise given that two authors of the report, James A. Baker III and Lawrence Eagleburger, have each spent much of their political and corporate careers in pursuit of greater access to Iraq's oil and wealth.

Juhasz, in his recent article "Oil for Sale: Iraq Study Group Recommends Privatization," points out that "pragmatist" is the word most often used to describe Iraq Study Group co-chair James A. Baker III. It is equally appropriate for Lawrence Eagleburger. The term applies particularly well to each man's efforts to expand US economic engagement with Saddam Hussein throughout the 1980s and early 1990s. Not only did their efforts enrich Hussein and US corporations, particularly oil companies, it also served the interests of their own private firms.

This past July, US Energy Secretary Samuel Bodman announced in Baghdad that senior US oil company executives would not enter Iraq without passage of the new law. Petroleum Economist magazine later reported that US oil companies put passage of the oil law before security concerns as the deciding factor over their entry into Iraq.

Put simply, Antonia Juhasz argues, the oil companies are trying to get what they were denied before the war or at anytime in modern Iraqi history: Access to Iraq's oil under the ground.

Energy - Oil & Gas

Sixty oil fields waiting to be developed as Iraq offers contracts for first time since Saddam

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15 December 2006 (Financial Post - Canada)
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Iraq, holder of the world's third-largest oil reserves, will offer contracts to develop 60 oil fields, in several batches, starting next year, said Iraqi Oil Minister Hussain Sharistani. Only 20 of Iraq's 80 discovered oilfields are in production, Mr. Sharistani said. The government is waiting for parliament to approve a new hydrocarbons law early next year to start offering contracts to develop the remaining fields, Mr. Sharistani said. Contracts to develop oil fields were given about a decade ago by the regime of former president Saddam Hussein to companies such as Total SA, OAO Lukoil and China National Petroleum Corp. Wars and sanctions have curtailed Iraq's ability to develop its oil wealth.