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

Originally Posted by frathousemicrowave

The 833 daily currency auction was held in the Central Bank of Iraq day Monday 2006 / 12/ 25 so the results were as follows :
Details Notes
Number of banks 6 -----
Auction price selling dinar / US $ 1345 -----
Auction price buying dinar / US $ 1343 -----
Amount sold at auction price (US $) 16.450.000 -----
Amount purchased at Auction price (US $) 2.900.000
Total offers for buying (US $) 16.450.000 -----
Total offers for selling (US $) 2.900.000 -----

They removed another 13,550,000 USD or 18,197,650,000 Dinar from ciculation. Also, that 1345; isn't that something to do with the IMF?

The official info from Socata soon.

Merry Christmas everyboby.

Originally Posted by goldraker

Currency revaluation now on the IMF agenda
The International Monetary Fund is to host a multilateral meeting of the US, EU, Japan, China and Saudi Arabia to discuss global financial imbalances early next year. Officials told a press conference at the Dubai International Financial Centre that both currency revaluation and measures to stimulate economic growth in the GCC will be on the agenda.
Saudi Arabia: Tuesday, December 19 - 2006 at 09:29

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'There are two ways to tackle global imbalances,' said IMF Deputy Managing Director, Takatoshi Kato: 'Increasing the rate of growth in the surplus countries, or a revaluation of exchange rates. This sort of multilateral consultation is new for the IMF.'

Currency revaluation speculation is normally focused on the Chinese Yuan but the Saudi Riyal is also increasingly under scrutiny these days. Indeed, the $200 billion US trade deficit with China is smaller than its $250 billion trade deficit with the Middle East oil producers.

However, IMF officials note that 80 per cent of export revenues in the Gulf States are US dollar denominated and 70 per cent of imports. This suggests that any possible upward revaluation in the GCC currencies would likely be a modest movement, five or at most 10 per cent.

Revaluation implications
But for countries whose exchange rate has been pegged firmly to the US dollar for more than two decades even the mention of the word 'revaluation' is unsettling to a cozy status quo. It could have serious implications for liquidity flows.

On the one hand, a stronger Riyal or UAE Dirham would make Euro-priced products cheaper, dampening consumer price inflation. There would also be a one-off currency gain for the owners of local real estate. But on the other hand, the region would become more expensive for some tourists and the inflow of foreign money might falter as assets would be more expensive.

Even putting revaluation on the agenda will be enough to make many potential investors sit up and think. For if you know a currency stands a good chance of being revalued then investing before that valuation change is a sure-fire hit, and worth leveraging.

It has to be pointed out that the alternative strategy mentioned by the IMF Deputy Managing Director of raising rates of GDP growth in the Gulf countries is much easier said than done. Indeed, it is hard to imagine how the super inflationary current growth rates could be stimulated much further without placing an unbearable strain on the local financial systems whose stock markets have already crashed from wanton speculation this year.

Monetary union
However, the wheels of financial management turn slowly. Oman has recently questioned the viability of 2010 as the year for a scheduled monetary union in the GCC. As all these currencies are pegged to the US dollar this is not such a big deal in any case, but the creation of a GCC central bank with policy authority is a difficult political issue.

The UAE Central Bank has suggested that a more limited currency union might be achieved without a central bank with the fixing of currency rates and issuing of currency rather than an institutional union. This is practical so long as the dollar peg is maintained.

And in that case a one-off revaluation of the GCC currencies at the same time as this more limited currency union might make good sense. It is certainly a more sensible way to address structural oil imbalances than trying to over stimulate the booming economies of the GCC.

Currency revaluation now on the IMF agenda | News Feature


It means I hope they RV the IQD first!
So we can go into the head choppers country (SA).
Then buy up ALL of their currency!
Then WE will, all be the new rulers of the WORLD! hahaahahahahaha!!!!!!!!!! Exit stage right even......

Goldraker...I'm with you on that...I'm just stacking up on those Qatari Riyals.

I for one can cope with 7. Wasn't 1345 recommended by the IMF for the end of the year and 1260 the target set by the CBI or have I got it wrong?

Merry Christmas everyone.

Number of banks 6 -----
Auction price selling dinar / US $ 1345 -----
Auction price buying dinar / US $ 1343 -----
Amount sold at auction price (US $) 16.450.000 -----
Amount purchased at Auction price (US $) 2.900.000
Total offers for buying (US $) 16.450.000 -----
Total offers for selling (US $) 2.900.000 -----


MERRY CHRISTMAS TO ALL, THANK YOU ROLCLUB FOR ALL YOU DO


Well, here we are at the famous 1345. Now what are they going to do? It is so interesting to me that they landed exactly on 1345. We have modest gains in the extraction of dinars from circulation. They seem to be running an average of about 10M per day. But when you think about it, every dinar they pull in, is one less dollar they have to match if they reval this to a 1:1 ratio or better. A few billion here and a few billion there, pretty soon you talking about some serious money. 1345, they've met the IMF requiement, NOW WHAT? Since they are lower than 1345 on the buy side of the equation, 1343, I think they will continue their downward trend to 1260, 1000 or better. Well, we'll see tomorow won't we. Until Then !!



1. The dinar to the dollar is down 7 more points today from 1352 to 1345

2. A $13,555,000 (net) worth of dinars, (IQD - 18,224,750,000) out of circulation
3. 6 banks participating.

4. 51st auction since the beginning of CBI's reval plan

5. 86 days into the CBI's reval plan.

6. 2,859,907,347,000 dinars pulled from circulation !!

7. 3,894,700,000 Dinars back into circulation today !!

8. 132 dinar change since Nov 1st (baseline was 1477) 8.937% increase in value of the dinar since beginning of reval plan.

9. 15 point reduction in the rate so far this week. Was at 1360 at the end of last week, 1345 this week.

10. 90 point drop so far in the month of Dec. Ended at 1435 in Nov, now stands at 1345

Originally Posted by Socata 850

Number of banks 6 -----
Auction price selling dinar / US $ 1345 -----
Auction price buying dinar / US $ 1343 -----
Amount sold at auction price (US $) 16.450.000 -----
Amount purchased at Auction price (US $) 2.900.000
Total offers for buying (US $) 16.450.000 -----
Total offers for selling (US $) 2.900.000 -----


MERRY CHRISTMAS TO ALL, THANK YOU ROLCLUB FOR ALL YOU DO


Well, here we are at the famous 1345. Now what are they going to do? It is so interesting to me that they landed exactly on 1345. We have modest gains in the extraction of dinars from circulation. They seem to be running an average of about 10M per day. But when you think about it, every dinar they pull in, is one less dollar they have to match if they reval this to a 1:1 ratio or better. A few billion here and a few billion there, pretty soon you talking about some serious money. 1345, they've met the IMF requiement, NOW WHAT? Since they are lower than 1345 on the buy side of the equation, 1343, I think they will continue their downward trend to 1260, 1000 or better. Well, we'll see tomorow won't we. Until Then !!



1. The dinar to the dollar is down 7 more points today from 1352 to 1345

2. A $13,555,000 (net) worth of dinars, (IQD - 18,224,750,000) out of circulation
3. 6 banks participating.

4. 51st auction since the beginning of CBI's reval plan

5. 86 days into the CBI's reval plan.

6. 2,859,907,347,000 dinars pulled from circulation !!

7. 3,894,700,000 Dinars back into circulation today !!

8. 132 dinar change since Nov 1st (baseline was 1477) 8.937% increase in value of the dinar since beginning of reval plan.

9. 15 point reduction in the rate so far this week. Was at 1360 at the end of last week, 1345 this week.

10. 90 point drop so far in the month of Dec. Ended at 1435 in Nov, now stands at 1345

First, Merry Chistmas to you all and enjoy!

Think you are right Socata. I believe they will go to the direction of the 1260 as announced by end of the year 31/12/2006.

After that it is a big surprise what will happen. Personally I believe in a bold adjustement in the beginning of January to tackle a hell of a lot problems.

Only time will tell!

BAGHDAD, Iraq (CNN) -- British and Iraqi soldiers raided an Iraqi police station in Basra Monday morning where they suspected a rogue police unit was planning the killing of 76 prisoners held there.

"The serious crimes unit themselves were guilty of serious crimes," said British Major Charlie Burbridge.

Major Burbridge said the rogue unit "would take people in the middle of the night and they would never appear again."

Monday's raid, involving 1,000 troops, was ordered based on information they were "likely to start executing the prisoners, so we had to move fast," he said.

He said Iraqi Prime Minister Nuri al-Maliki authorized the raise through the Basra City Security Coordinator General Hamadi.

Although the police resisted the soldiers with small arms fire, there were no casualties, Burbridge said.

The action was made easier by the arrest two nights earlier of key leaders of the police unit, he said.

After the 76 prisoners were removed, the soldiers destroyed the Jamiyat police station, Burbridge said.

Meanwhile in Baghdad, a suicide bomber detonated explosives strapped to his body inside a bus in the city's northern outskirts, killing at least two people and wounding seven others Monday morning, an Iraqi interior ministry official said.

A day earlier, bombings and explosions in the Baghdad area and Diyala province killed six U.S. soldiers in Iraq, the U.S. military said on Sunday.

An improvised explosive device detonated in eastern Baghdad, killing three 89th Military Police Brigade soldiers and wounding another.

A roadside bomb southwest of Baghdad targeted a Multi-National Division-Baghdad patrol carrying supplies to combat units. One soldier was killed.

A second U.S. Multi-National Division soldier was killed and four were wounded in combat operations southeast of the capital.

Also Saturday, a U.S. soldier assigned to 3rd Brigade Combat Team, 1st Cavalry Division, died and another was wounded in an explosion during combat operations in Diyala province, the military said.

The soldiers names will be released after next-of-kin are notified.

These bring the total number of U.S military deaths this month to 80 and the total during the Iraq war to 2,968.

Other developments

A suicide bomber walked into a police station in Muqdadiya, Iraq, on Sunday morning and blew himself up, killing at least seven police officers and wounding 30 more, according to a security official in the Diyala province.


Gunmen kidnapped a doctor working for the Iraqi Health Ministry. Mohammed Qassim Mahmoud was driving on Palestine Street in eastern Baghdad about 5 p.m. (9 a.m. ET), when an unknown number of gunmen kidnapped him. An hour later, gunmen kidnapped a second doctor in central Baghdad, Qassim Saleh, who has a private practice in the capital.


On Saturday, residents in Baquba blamed U.S. troops for a rocket attack that killed six people and wounded six others, including women and children, on Friday, a Baquba joint coordination center official said. The U.S. military declined to comment Saturday but said it was investigating the incident.


An Iraqi Red Crescent Society official said Saturday that 13 hostages -- nearly a third of the 41 people abducted at or near an Iraqi Red Crescent Society office in Baghdad a week ago -- remain in captivity. The remaining hostages have been identified as 12 Red Crescent employees and a Dutch Embassy guard. The Iraqi Red Crescent suspended its operations in Baghdad following the incident.


President Bush heard Saturday from Defense Secretary Robert Gates, who had just returned from Iraq, about Iraqi leaders' plans to address sectarian violence. Gates met with Iraqi leaders, U.S. commanders and soldiers in the field. ( Full story)



Grand Ayatollah Ali al-Sistani reportedly withheld support Saturday for a U.S.-backed plan to build a coalition across sectarian lines. The move jeopardized hopes that such a show of political unity could help stem the country's deadly violence. (Full story)

Where is Mr Knowles? I have not seen any postings from him lately.....

Ahhhh, the 1345 benchmark. As some have pointed out already - Now what? So if the next move is to get to the 1260 mark, that is a raise of 85 points, it looks like the CBI will have to move points aggressively as there are very few auctions left until the new year.

Merry Christmas to all RolClub members and guests alike!

Another 7 point drop in the exchange rate and Iraq have met IMF's guideline rate of 1345. What next? With 3 auctions left for until the end of the year, the temptation might be to take it down to 1260 in line with the proposed budget calculations, which has been set based on a rate of 1260.

If the CBI had a bold adjustment in mind, what's the need to make such insignificant changes to the exchange rate, which are practically meaningless given the current economic situation in Iraq? Apart from fuelling speculators' interest, what other purpose does this slow movement serve? It's probable that CBI will continue to adopt a steady and slow movement rather than a bold adjustment. I commented in Oct that the revalue could happen in the first quarter of 2007 and was derided for have an unshined crystal ball!

I, for one, am extremely keen to see this ride come to an end but have to remind myself that this could be a gradual upward movement rather than a sudden overnight rv. Let me state that I would love to be proven wrong for personal reasons!

Enjoy your holidays!

Originally Posted by Socata 850

Number of banks 6 -----
Auction price selling dinar / US $ 1345 -----
Auction price buying dinar / US $ 1343 -----
Amount sold at auction price (US $) 16.450.000 -----
Amount purchased at Auction price (US $) 2.900.000
Total offers for buying (US $) 16.450.000 -----
Total offers for selling (US $) 2.900.000 -----


MERRY CHRISTMAS TO ALL, THANK YOU ROLCLUB FOR ALL YOU DO


Well, here we are at the famous 1345. Now what are they going to do? It is so interesting to me that they landed exactly on 1345. We have modest gains in the extraction of dinars from circulation. They seem to be running an average of about 10M per day. But when you think about it, every dinar they pull in, is one less dollar they have to match if they reval this to a 1:1 ratio or better. A few billion here and a few billion there, pretty soon you talking about some serious money. 1345, they've met the IMF requiement, NOW WHAT? Since they are lower than 1345 on the buy side of the equation, 1343, I think they will continue their downward trend to 1260, 1000 or better. Well, we'll see tomorow won't we. Until Then !!



1. The dinar to the dollar is down 7 more points today from 1352 to 1345

2. A $13,555,000 (net) worth of dinars, (IQD - 18,224,750,000) out of circulation
3. 6 banks participating.

4. 51st auction since the beginning of CBI's reval plan

5. 86 days into the CBI's reval plan.

6. 2,859,907,347,000 dinars pulled from circulation !!

7. 3,894,700,000 Dinars back into circulation today !!

8. 132 dinar change since Nov 1st (baseline was 1477) 8.937% increase in value of the dinar since beginning of reval plan.

9. 15 point reduction in the rate so far this week. Was at 1360 at the end of last week, 1345 this week.

10. 90 point drop so far in the month of Dec. Ended at 1435 in Nov, now stands at 1345

Hello everyone. Like many others, I am away with family in the Ozarks for Xmas. It is a good time for all. The auctions resemble what we viewed last week. Still removing modest amounts of currency from the economy and increasing the value of the dinar. Thank You Socata 850 for your posts, you are a great contribution to our members. As he (she?) said we are at the the famous 1345 level. What happens now? I think more of the same in the next few days. On or after the first, then who knows? But,the point has been made that continuing to pull the excess dinar out of the economy ultimately is a win-win situation for us. So, it appears all is going our way. I'm glad they are having auctions this week, I think it sets us up for a much faster ride after the first of the year, or the much desired "bold adjust". I am still waiting to get to that critical level of a solid 10% rise in value of the iraqi currency. From my backgraound in the commodities markets, that level sends a BIG signal to the investment world. We are still lack knowing exactly the status of the FIL&HCL, but we know they are on their way. Everyone have a great holiday, and my expectations are that sometime in mid-2007 (or before), this investment is going to pay off rather well. Thank You