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

Iraq town has little faith in U.S. trial of Marines By Majid Hameed
12 minutes ago



HADITHA, Iraq (Reuters) - Iraqis in Haditha, where 24 unarmed civilians were killed last year, said on Friday four U.S. Marines charged with their murder should be executed, a penalty they will not face in the United States.

"They should hand them over to us so that we can kill them. They do not deserve a trial," said one young man who refused to give his name.

Khaled Salman, whose sister Asmaa was among 24 people killed in Haditha, gathered with friends in the early hours of Friday to watch television coverage of the charges being announced.

"Those soldiers killed 24 people. They killed women and children, isn't that enough for them be executed? Just so that the family can have peace," said Salman, 41.

"It's a political trial and it will not bring our rights back," said Salman, visibly angry.

U.S media said none of the murder charges carries a possible death sentence because the Marines are not accused of premeditated murder.

It was midnight in Iraq when the U.S. military announced it had charged four Marines with murder and four others with dereliction of duty in the November 2005 killing in Haditha, in the restive province of Anbar northwest of Baghdad.

Iraqi witnesses say enraged Marines shot the civilians in their homes to retaliate for the death of a popular comrade who was ripped in half by a bomb that hit a convoy in the town.

However, the four Marines -- Staff Sgt. Frank Wuterich, Sgt. Sanick Dela Cruz, Lance Cpl. Justin Sharratt and Lance Cpl. Stephen Tatum -- face only prison sentences because the charge is of unpremeditated, not premeditated, murder.

Defense lawyers dispute the Iraqi witnesses' version of events and say the Marines were engaged in a furious battle in Haditha after the bomb exploded and the civilians may have been killed during the chaos.

Many in Haditha, a town of over 100,000 people on the Euphrates river, stayed up to watch coverage on Arabic satellite channel Al Jazeera. On Friday morning, the trial was the talk of the town and many were glued to the screen watching special coverage. They had little confidence in U.S. justice.

Talal Saed, a judge who watched the news at Salman's home, said: "If I were the judge on that trial I would have sentenced them to death for the terrible crime they have committed. They should be tried in Iraq and under the Iraqi law."

"This is a show trial just to show that the Americans are doing something to be fair with Iraqis but it's nothing more than that," he said.

TOWN UNDER SIEGE

Iraqi Prime Minister Nuri al-Maliki has called the killings a "terrible crime." Along with widely publicized abuses of Iraqi prisoners at Abu Ghraib prison, they have contributed to tarnishing U.S. prestige and drawn international condemnation.

Anger at U.S. forces has grown since tight security measures were imposed three weeks ago following a helicopter crash.

The U.S. military said two weeks ago the measures were aimed at "restricting the freedom of movement of the insurgents who have waged an intense murder and intimidation campaign on the people of this community."

Shopkeeper Mohammed Ali said there had been food shortages for three weeks until two days ago, when U.S. troops allowed some goods to enter the town.

"The Americans drive around in their cars and tell us on loudspeakers that we should hand over the gunmen or the siege will continue, but where are we going to get the gunmen from? We don't know them," Ali said.

Saber Mohammed, head teacher at a school, said the situation was difficult. "There is no school, the Americans have cut Haditha off from the rest of its neighborhood so most of the time the students can't come to school," he said.

"How long is this situation going to continue? If gunmen attack U.S. troops why is it the innocent who pay the price?"

(Additional reporting by Dan Whitcomb at Camp Pendleton)

Iraq provides Jordan with oil at a price below 18 dollars
(Voice of Iraq) - 12-22-2006

Iraq provides Jordan with oil at a price below 18 dollars on the price of the World A Amman. P. B : said Minister of Energy and Mineral Wealth Jordanian Khaled Al, that Iraq will be submitted to Jordan oil at a preferential price less 18 per barrel on the world price.

The newspaper «» of Al-Ghad as saying that «Iraq will be oil to the Kingdom under the import signed by the two sides recently, at a preferential price below 18 dollars a barrel on the price of the World». ,

The two countries have signed a memorandum of understanding in the field of crude oil supply Iraq provides Jordan with between ten and thirty% of its daily needs of crude oil, which is estimated at about one hundred thousand barrels.

Sotaliraq.com

Al-Sadr set to rejoin government
22 December 2006 (Aljazeera)

Muqtada al-Sadr boycotted the Iraqi government after Nouri al-Maliki (picture), the Iraqi premier, met George Bush
Muqtada al-Sadr, the Iraqi Shia cleric, has agreed to allow his supporters to rejoin the Iraqi government after a three-week boycott.

The cleric pulled out of the government three weeks ago to protest against the Iraqi prime minister's meeting with George Bush, the US President, officials close to the militia leader said late on Thursday.

"The main [United Iraqi] Alliance forces and the al-Sadr movement have agreed to solve the problems and overcome the obstacles," said Abdul Karim al-Anizi, a Shia MP from the Dawa faction.

"Within two days, the al-Sadr movement will return to the government and parliament," he said.

Al-Sadr loyalists walked out of their positions in parliament and the cabinet after Nouri al-Maliki, the Iraqi prime minister, met Bush in Jordan three weeks ago.

Two figures in al-Sadr's movement, an aide to the cleric and a member of Iraq's parliament, also said the cleric had agreed to allow his followers to rejoin the government.

"We will rejoin the government and the parliament very soon," the parliament member said, speaking on condition of anonymity because of the sensitivity of ongoing meetings.

"We have some guarantees during our meeting today," he said.

On Thursday, al-Sadr's loyalists met with members of the Shia bloc, and laid out their demands for returning to the government, the official said.

Al-Sadr set to rejoin government | Iraq Updates

41 billion dollars, the volume of the budget for 2007
22 December 2006 (Iraq Directory)

Iraqi Minister of Finance, Baqer Jabr Al-Zubaydi, announced that "No change in the 2007 budget, which is fixed at 41 billion dollars", but he indicated "transfers and distributions will be made so that the new budget will cover all sectors of the Iraqi people to avoid the mistakes that happened in last year's budget, and the confusion that happened in the implementation of investment projects".

After the economic committee meeting under the chairmanship of Vice-President Adel Abdel Mahdi, the Iraqi minister revealed that "new conditions are put to punish the parties who fall behind in the implementation, then withdraw the funds that have not been spent and convert them to the implementation of large projects in the country".

Regarding the amendments to the salaries of governmental employees at the beginning of next year, Azzubaidi announced: "400 million dollars have been allocated to make the necessary adjustments to the salaries of the employees. The increases would range between 50 and 70%, and each employee will get the increase he deserves, starting from the beginning of next January".

Azzubaidi pointed out that 2007budget "will be set at the rate of 1260 dinar to the dollar and 50 dollars per barrel of oil with the production of 1.7 million barrels a day". He explained that the Iraqi Central Bank "started raising interest rates from 12 to 16% now", pointing out that there are no immediate plans to continue raising interest rates.

He explained that the aim of raising interest rates is "to strengthen the Iraqi dinar, and curb the inflation of 56% now, as well as strengthening the confidence of Iraqis in the local currency".

41 billion dollars, the volume of the budget for 2007 | Iraq Updates


Look at that raise of salaries, which will increase inflation on the mid-term I thought as they have done it before they know it.

Curbing the inflation of 56% (we also read 70% or more).

And that all with a wonderfull dinar rate of 1260!!

Personally I think this is all BS!

We know now that CBI will increase the dinar to 1260 in the last few auctions!

I am very curious to see the rate with their new business year/fiscal year, if it is
still 1260 or perhaps with a nice RV!

Originally Posted by day dreamer

Announcement No.(831)

D.G. of Foreign Exchange Control

The 831 daily currency auction was held in the Central Bank of Iraq dayThursday 2006 / 12/ 21 so the results were as follows :

Details Notes
Number of banks 6 -----
Auction price selling dinar / US $ 1360 -----
Auction price buying dinar / US $ 1358 -----
Amount sold at auction price (US $) 1.250.000 -----
Amount purchased at Auction price (US $) 1.500.000
Total offers for buying (US $) 1.250.000 -----
Total offers for selling (US $) 1.500.000 -----





D.G. of Investments

Daily price Bulletin buying and selling Wednesday 2006/12/20

Currency
Currency Code
Selling Price In IQD
Buying Price In IQD

US Dollar
USD
1380.000
1378.000

European Euro
EUR
1820.772
1819.862

Sterling Pound
GBP
2713.908
2712.551

Canadian Dollar
CAD
1194.082
1193.484

Swiss Frank
CHF
1136.644
1136.076

Sweetish Krone
SEK
202.059
201.958
Norwegian Krone
NOK
223.518
223.406

Denmark Krone
DKK
244.321
244.199

Japanese Yen
JPY
11.702
11.696


The above price represent reference rate and does not from any commitment on the Central Bank of Iraq.

I don't understand this... I have been watching the Swedish krona for a while at these auctions. It used to be around 207, then 206, and now it is 202. Shouldn't it go UP instead of down?
I mean, since the dinar is going"down", i.e. less dinars for a dollar, then the dinar is getting more expensive, getting a higher value, right? That's what we are all excited about, right? But if the dinar is getting more expensive, how come that you now need LESS SEK to buy dinars? If the sell rate from CBI(or is it buy? (don't know who's selling and who is buying))only had gone down it would have been logical (I would get less SEK if I exchanged my dinars), but BOTH buy and sell are dropping...
Could somebody please explain this to me?
/Karin

[QUOTE=lndmn_01;152575]Sorry to quote my own post. I have to ask, does anyone know about Alaska's permanent fund and what are the age requirements to receive a portion of the money? Do parents receive extra for their children? If so is it a smaller amount? I have to ask because the revenue sharing in Kuwait is setup so that The head of every household receives, for example $30k and an additional smaller amount for their wife and each child. The reason I ask is I can't imagine the GoI paying the same amount to each person in Iraq or even paying any to children.

Thanks[/QUOTE

Every Person weather they are a year old or 100 years old gets a dividend from the state of alaska. Children get the same amount as their parent. range since i have been here ( alaska ) is about 800-1600 One time a year

Originally Posted by kiko

41 billion dollars, the volume of the budget for 2007
22 December 2006 (Iraq Directory)

Iraqi Minister of Finance, Baqer Jabr Al-Zubaydi, announced that "No change in the 2007 budget, which is fixed at 41 billion dollars", but he indicated "transfers and distributions will be made so that the new budget will cover all sectors of the Iraqi people to avoid the mistakes that happened in last year's budget, and the confusion that happened in the implementation of investment projects".

After the economic committee meeting under the chairmanship of Vice-President Adel Abdel Mahdi, the Iraqi minister revealed that "new conditions are put to punish the parties who fall behind in the implementation, then withdraw the funds that have not been spent and convert them to the implementation of large projects in the country".

Regarding the amendments to the salaries of governmental employees at the beginning of next year, Azzubaidi announced: "400 million dollars have been allocated to make the necessary adjustments to the salaries of the employees. The increases would range between 50 and 70%, and each employee will get the increase he deserves, starting from the beginning of next January".

Azzubaidi pointed out that 2007budget "will be set at the rate of 1260 dinar to the dollar and 50 dollars per barrel of oil with the production of 1.7 million barrels a day". He explained that the Iraqi Central Bank "started raising interest rates from 12 to 16% now", pointing out that there are no immediate plans to continue raising interest rates.

He explained that the aim of raising interest rates is "to strengthen the Iraqi dinar, and curb the inflation of 56% now, as well as strengthening the confidence of Iraqis in the local currency".

41 billion dollars, the volume of the budget for 2007 | Iraq Updates


Look at that raise of salaries, which will increase inflation on the mid-term I thought as they have done it before they know it.

Curbing the inflation of 56% (we also read 70% or more).

And that all with a wonderfull dinar rate of 1260!!

Personally I think this is all BS!

We know now that CBI will increase the dinar to 1260 in the last few auctions!

I am very curious to see the rate with their new business year/fiscal year, if it is
still 1260 or perhaps with a nice RV!

Here are two great post one by Wm.Knowles and the other one by Wolf. I agreed that it is nothing but BS!


Originally Posted by Wm.Knowles
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.

Thank you for your analysis. I do have some questions/comments as to how all of this relates one to another. Trying to keep emotions out of the mix, with all of the laws ie fil, hcl, having an internationally traded currency etc. coming into play, can they really open up their economy with a dinar rate where it is right now (or close to it)?

I mean really, if they open up their ISX to the outside world with a dinar rate in the 1300 - 1400 = 1usd range, doesn't that open themselves up for potential disaster? The big players from all of the world will join forces for a feeding frenzy on the country of Iraq. Wouldn't you if you had the money? Image one of if not the richest nations in all of the ME going for 1/10 of a cent on the dollar. Could you, would you, resist the temptation to go in and buy everything in sight realizing that they only way for it to go is up?

I guess what I am saying is, in your opinion, would you agree they really don't have much of a choice other than to r/v and r/v substantially or else risk all of the nations/large investors of the world coming in and randsacking their economy. Speak about economic shock, when their economy goes from where it is today to perhaps doubling, tripling, dare I say quadroupling practically overnight, do you really think the cbi could effectively manage this sudden influx of cash practically over night?

Granted the counter argument has been that since a loaf of bread costs 1500 dinar and a pair of shoes costs 15,000 dinars then you really can't buy up the country on the cheap. Oh, really? How much money is 15,000 dinar in usd? Pretty cheap by world standards. If Iraqis work for between 1 and 2 dollars a day, What international corp wouldn't want to come and build factories realizing they can hire some of the most educated workforce in the ME for pennies on the dollar as compared to the surrounding countries.

People are concerned about security as they should be. And as documented by the news their enemies have a lot of bullets. But in addition to fighting bullets with bullets, they will have to try and overcome a virtual tsunami of dollars pouring in from hundreds if not thousands of internationsl corps as well as other countries coming with billions and billions of dollars in hand invading their country in the quest of profit. When the flood gates are opened legally by the implentation of the pending (passed?) international laws, they really don't have much of a choice other than to r/v and r/v substantially do they?

When the international investors see that their money won't be confiscated, (when their currency is traded in the international market, listed on the forex) then in the currency markets the dinar will become "paper gold" and the cbi will be hard pressed to control the undoubtedly to come wild fluctuations due to buying and selling by the big players and multinational corps entering into Iraq if they don't r/v substantially wouldn't you think?

If they are going with their stated goals of overcoming the dollarization phenom, raising the dinar where it was before, making the dinar the currency of choice among their people, combating inflation, then they are going to have to raise it and raise it big if they were serious about achieving their stated goals, aren't they?

Can they really afford to "dribble it out" once their international laws are in place? It is doubtful to me that so far they have had the desired effect of bringing inflation under control yet. They may have reduced it somewhat but the floodgates of international trade haven't opened yet. How do they expect to make their dinar the currency of choice vs the dollar when billions and billions of dollars flood the market place? No one will want to carry wheelbarrels of dinars to do business when they can use much fewer dollars instead.

In summing up, I hope my instincts are correct in some of the above, Hopefully the cbi realizes the potential mentioned above and decides to get off the pot and r/v their currency at a decent rate (.30+ is a decent place to start IMO) and then control the rise from there to the Saddam rate and above or at least to where it was before. Isn't it time for the artificial "program rate" to come off and allow the dinar to appreciate to where it rightfully belongs? If Iraq does indeed desire to become a real country, then it needs it's own real currency that actually has some value to it based on their net worth not some pathetically low artifical rate imposed on them by the world banking system. IMO

Thank you for taking the time to read the above rant,

worf

Originally Posted by MunnyBaggs

The latest information we have is a target rate of 1260 by around March 31 of 07. My own personal feeling is they will get to that level faster than March. Here's a paragraph from that article:

Minister Bayan Jabor told Reuters on Monday that the government has targeted an exchange rate to reach 1,260 dinars to the dollar in the first three months of 2007 from the current level of 1,500 to the dollar.

This is a whole lot different than the talk of an actual RV event, and pretty depressing actually. Is the prevailing opinion going away from a good sized RV and to this very gradual rise? I know we're all in it for the long haul and have no choice but to be patient, but yikes. If it's only going to be at 1,260 by March, that's starting to look like a looooooooooooooong ol' haul. Adster? William?

Azzubaidi pointed out that 2007budget "will be set at the rate of 1260 dinar to the dollar and 50 dollars per barrel of oil with the production of 1.7 million barrels a day". He explained that the Iraqi Central Bank "started raising interest rates from 12 to 16% now", pointing out that there are no immediate plans to continue raising interest rates.

Well THIS figure will do the people a lot of good when it comes to the 10,000 dinar gift won't it.

I think it's a crock of whooy They must have been studying how our congress works and the bs they **** forth WAY to much.

Originally Posted by laurenr

Can Iraq settle for an exchange rate of just 1260:1 ?

Thier 2007 budget appears to be calculated with this rate as it's basis.

Is there any evidence to prove this CANNOT be maintained ?

And yes I have been reading all of the past info here on RolClub,
excellent though it is, most of our understanding is our own
interpretation of what we & others WANT to happen rather than
any real facts that state a significant R/V of 1:1 or better is coming.

I really want this to R/V significantly, in fact I really NEED this to happen,
but there have been many references to 1260 in a number of documents
quoted here on RolClub.

Can we just ignore them because we WANT 1:1 or higher ?

I know these questions have probably been asked before,
but I have never seen a convincing argument to answer them.

I have had the same question myself. Although rampant speculation and heady rumors are nice, none, that is 0% have turned out to be correct yet. No offense to those who provide us with their information, they are just sharing what they hear. That's cool and I appreciate it. It just turns out to be false information in the long run. As much as some hate to admit it, Munnybags is the closest to date. At least he/she hasn't over shot the moon on their theories or projections. And for the record I hope they a wrong... because they are too conservative. I hope for all of our sakes that this happens much faster than Munnybags projects. (No offense intended Munnybags. I just hope my patience holds out)

As I have stated in the past, some day, some way, somebody is going to hit onto the winning formula. We just don't know who or when yet. Like you, I need a big r/v in the biggest way, but just because I need it doesn't mean it is going to happen (darn it). I personally don't think 1260 will cut it because of all of their stated spending increases and plans plus the avalanch of foreign investment that is about to invade their country.

If they leave it that low (1260), they will be swallowed up as a country by the foreign companies/countries. Just imagine the foreign contractors coming into to Iraq getting paid 300 - 500 dollars a day or more by their companies mixing with the average Iraqi making between 1 and 2 dollars a day. That is so unequal it's not funny. Now with the investment law in place, what is the foreign worker going to do with his/her extra money? Probably invest in the Iraqi stock market and buy entire major shares of local companies plus they may even start up their own companies to compete with the local Iraqi companies. You think Wal-Mart in the US caused problems with the mom and pop operations here in the US, you ain't seen nothing yet.

With the dinar so undervalued and with the flood of foreign companies and their workers and the worker's money, Iraq would be quite foolish to leave their dinar undervalued. The foreigner could out spend the local Iraqi 1260 to 1 in obtaining supplies, inventory etc., needed to run a business. It wouldn't just be unfair, it would be a slaughter. IMO I hope my observations are somewhat correct and the powers that be in Baghdad see this also and fix the impending problem. Just r/v your currency at least to where it was before as stated by your own press releases and do it now!!!

worf