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

problem is Iraqis are going to use the US dollar for purchases due to increase purchase power with Iraq Dinar. Cbi will need to do any large jump that is planned and need to do it soon (fight dollorization) or they will just be adding to the problem.
Any thoughts?

Originally Posted by laurenr

How does Bill Know ?

Because BillKnows lol



yes bill please expand

Originally Posted by billknows

We'll see a major adjust in dinar value Midnight Jan 1st, 2007

Link please.

Originally Posted by billknows

We'll see a major adjust in dinar value Midnight Jan 1st, 2007

This kind of baseless prediction frustrates me!

First of all, the CBI is doing exactly what they said they would, slowly bring the exchange rate to 1345 to curb inflation. Secondly, as we all observe daily, the CBI has been buying back lots of Dinar with US Dollars. How would they pay to exchange perhaps a Trillion+ Dinar at a one to one ratio when they only produce $94 Billion worth of goods each year??? Where would all the US dollars (real money to the rest of the world) come from??? This is a fundamental issue that reamins for a large scale reval.

The kinds of things that will support a more aggressive exchange rate are the following:

1. Further reduction in foreign debt
2. Significant (trillions) reduction of currency in circulation
3. Increase in GDP gross domestic product
4. Stabilization of of the political situation
5. Major foreign investment ($100's of Billions)

As these things come together, so too will the value of the Dinar

Originally Posted by Precocious

This kind of baseless prediction frustrates me!

First of all, the CBI is doing exactly what they said they would, slowly bring the exchange rate to 1345 to curb inflation. Secondly, as we all observe daily, the CBI has been buying back lots of Dinar with US Dollars. How would they pay to exchange perhaps a Trillion+ Dinar at a one to one ratio when they only produce $94 Billion worth of goods each year??? Where would all the US dollars (real money to the rest of the world) come from??? This is a fundamental issue that reamins for a large scale reval.

one idea is that I could exchange say 1,000,000 NID for 1,000,000 USD
and the United States could use my Dinar to buy oil from Iraq at a discount price (just a thought) this way the United States makes money from taxes and makes up the rest from oil and Iraq just eats the discount

good morning all and thanks for the updates and wonderful information...
hope to see a larger leap in the near future..would love on for the holidays.lol

I really don't think that all the dinar that will get "cashed" in will go directly back to the CBI. It will be absorbed into the world monetary system. Some will be held by banks speculating on higher rates to come, some will be bought by large and small investment companies for similar reasons. Then you have all the business's that will get it to use for dealing with the exploding Iraqi economy. Some dinar might not make it back to the ME and it will only inderectly effect the CBI's reserves. The whole M1, M2 .... it's all just Smoke and Mirrors... JMHO.

Ok, nobody knows what will happen, but I for one am confident of a larger increase in the exchange rate by the new fiscal year and with enacting the HCL and FIL in january!

To remind us, here are some positive statements!

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"...If the state meets these important demands among others, we should not be concerned about the rise of the exchange rate of the dinar to be the equivalent of the dollar"

Dar Al Hayat
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"Finance Minister Baqer Solagh said the same year should see the value of the Iraqi dinar surging as a sign of a robust economy". (about 2007)

Azzaman in English
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"Zubaidi on this subject : the two split the price and that the financial and talk about the monetary side. Monetary value of the Iraqi dinar must revert to the previous level, or at least to acceptable levels as it is in the Iraqi neighboring states."

Translated version of http://www.alsharqiya.com/display.asp?fname=aboutus%5C2006%5C008.txt&storyti tle=
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"...together and suggested the International Monetary Fund must strengthen the Iraqi dinar. We will be discussing this topic either side financial and increase prices it is natural to revert all the things and take photo it can not be to sell the oil or gasoline in Iraq THREE cents, and sold in the neighboring countries Fifty enacted it is very natural that there be the smuggling of of money for the Iraq and its people and must find a solution and can not be important and found it solutions police raids Customs and security can not, therefore You have to develop fiscal policy to hit the price of gasoline such as the neighboring countries if not more of them."

Translated version of http://www.alsharqiya.com/display.asp?fname=aboutus%5C2006%5C008.txt&storyti tle=
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"The Iraqi Central Bank will adopt a tight monetary policy in this regard is aimed at reducing the inflation base through improved exchange rate of the Iraqi dinar and raise the purchasing power of the Iraqi dinar and make cash more attractive means to reflect the circumstances and encouraging indicators in the economy which would help in addressing the danger of dollarization, which is one of the factors."

Iraq dinars Dinar Trade
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"Undersecretary to Minister of Finance:
The rise in the value of the Iraqi currency against the dollar would reduce the value of imports, and raising the value of exports. As exports are negligible, the economy will benefit from the policy of raising the rate of the Iraqi dinar."

Iraq dinars Dinar Trade
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"...Among these variables are the stabilizing interest rates "the long-termed" and the stabilizing or real exchange rate."

Raising the value of the dinar against the dollar by the Central Bank, welcomed by economists | Iraq Updates
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"On 25 February, Al-Baghdadiyah cited a source a the Central Bank of Iraq as saying that the exchange rate of the Iraqi Dinar will rise significantly against the US dollar during 2006, adding that all policies will be adopted to improve the exchange rate of the country's national currency."

IRAQ | Log In
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Statement from the Warka Bank that the current rate is
not satisfying!

"This amount of 10000 dinars has not been given out yet and I doubt the Iraqi people would accept such an amount which represents a few dollars as one would accept a much greater amount as we hold the second largest oil reserve in the world and we are one of the richest countries in the region. We hope everyday the peace, stability and prosperity will flourish this country and that the Iraqi people get rewarded accordingly for all the hardship endured. "
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Originally Posted by $onedaysoon$

one idea is that I could exchange say 1,000,000 NID for 1,000,000 USD
and the United States could use my Dinar to buy oil from Iraq at a discount price (just a thought) this way the United States makes money from taxes and makes up the rest from oil and Iraq just eats the discount

YES, but Iraq only produces $65 Billion dollars worth of oil per year, at $60 US dollars per barrel. That is the world market price. So your $1 Million dinar is not the problem. It is the additional Trillions of Dinar that are in circulation compared to what the country produces; that is the problem! The don't have the Trillions of US DOLLARS worth of goods to back up an equal valued currency while they still have so much Dinar in circulation (14 Trillion).