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

Good Morniing all ...... I stayed up way to late to wake to web sites that were down coming back up and looking the same :(

the ride is getting long and bumpy because i am making it that why, Thanks to all those who have the nerves to keep bring the news !

The Central Bank of Iraq announced its adoption of buying and selling rates of the dollar until the end of office hours on Sunday, Jan. 14 2007. Bank pledges to meet demand for foreign currency without limit regardless of the quanities required by its customers.Sotaliraq.com


I think this is a great sign of what's happening. They will meet the demand for "Foreign Currency". Plus they are holding until the 15th which is a date that has come up alot in the last month. I think this will be another interesting weekend! This points to something big next week IMHO!!

What have we heard form PM? Did the speech happen? I thought that would be the first thing reported on here.

THOUGHT YA'LL COULD USE A ....WOOT

LOOKS LIKE THE TRAIN HAS BEEN DELAYED A BIT

Originally Posted by texaslonghorns

The Central Bank of Iraq announced its adoption of buying and selling rates of the dollar until the end of office hours on Sunday, Jan. 14 2007. Bank pledges to meet demand for foreign currency without limit regardless of the quanities required by its customers.Sotaliraq.com


I think this is a great sign of what's happening. They will meet the demand for "Foreign Currency". Plus they are holding until the 15th which is a date that has come up alot in the last month. I think this will be another interesting weekend! This points to something big next week IMHO!!

So now we are back in another holding pattern. But we wouldn't have had another auction until Sunday anyways. Is this saying nothing until the 15th? I am so confused!

Originally Posted by bluezzguy

THis has been bothering me all this week as well. We have seen very little movement in the exchange rate, yet the banks are giving up big chunks of Dinar for USD.

I am surprised that no one has commented on Scrooge's post. Why would the banks give up the dinar to the CBI when the could either hold on, or get a better rate elsewhere?

Anyone home out there with any thoughts on this?

Randy

You are forgetting that these banks are Iraqi government owned banks. They are simply cleaning out the vaults of the state owned banks. A reval won't matter one way or another to them. I see this 100 million USD worth of dinar that has been bought back as a great thing. It's the same as a company buying back it's stock. It makes the company much stronger. It has the same effect on the strength of the dinar. It's getting good now!

Originally Posted by michael16

Does this concern anyone that this could mean they are going to reissue the currency?
It just seems odd the pictures are gone on the CBI site and not the denominations. In the big picture it doesn't make sense but then again this is Iraq. Any insights would be appreciated.

they are reissuing currency alright but its the smaller denominations. the articles have told us time and time again thats what they will do. they have stated 'denominations' in their articles so thats not reprint but printing NEW denominations.

Originally Posted by warrior44

has there been any word of the PM press conference about the reval we heard that was going to take place?

it was a press conference by the interior ministry not the pm press conference about a reval. there was never any mention of a pm press conference by anyone other than people who didnt read the original article correctly on here and started getting over zealous.

Originally Posted by rvalreadydang

An Iraqi Oil Ministry official said a special oil council will determine the fate of oil resources -- within the constraints of an oil law.

Although an oil law has not been approved yet, news reports over the weekend suggested a deal between factions had been reached.

The council will oversee oil resources nationwide, said Asem Jihad, spokesman for the ministry, the Kuwait News Agency reports. Drafts of the debated federal hydrocarbons law mentioned such a council.

The council's task is to develop oil fields and supervise and approve oil projects and deals to be hammered out with foreign companies, Jihad said. The council is to be the top oil watchdog in Iraq as it will work out and run the country's oil policy.Despite having the world's third largest proven reserve pool, production barely reached 2 million barrels a day last year, more than a half million below pre-war levels.

Security is a major saboteur of the oil infrastructure, further blocking improvements.

But without a law governing who is responsible for signing contracts for current and future oil fields, there has been little investment in the sector aside from the relatively stable Kurdistan region in the north.

Oil revenue supports nearly the entire federal budget, reinforcing the need for development in a sector that has been rundown by misuse and little upkeep, as well as sanctions and war.

The Kurds and some Shiite groups supporting more of a regional control over future oil sources had been in deadlocked negotiations with Sunnis and Shiites that wanted a strong central control.

News reports say a compromise deal will be unveiled soon.

As for the council, Jihad didn't say who would be named chair, but pointed to either Prime Minister Nouri al-Maliki or Borham Saleh, Maliki's deputy for economic affairs, as likely contenders.

The council will be made of representatives from the regions, as well as oil, finance and planning ministries, and the Central Bank of Iraq.

Iraq oil to be decided by oil council | Iraq Updates

OLD. already read that they are done and it went to parliament.

Originally Posted by texaslonghorns

You are forgetting that these banks are Iraqi government owned banks. They are simply cleaning out the vaults of the state owned banks. A reval won't matter one way or another to them. I see this 100 million USD worth of dinar that has been bought back as a great thing. It's the same as a company buying back it's stock. It makes the company much stronger. It has the same effect on the strength of the dinar. It's getting good now!

Youre exactly right. They are buying their "stock" back which makes the remaining currency more valuable. It works for me and tells me they do have a plan for this currency to value higher. Also read a report that now inflation is seen between 25 and 30 percent. Down from over 70 percent. We will need additional reports, but my guess is that the inflation numbers for the last quarter of '06 will be good.