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

of all times to have to go to work!! maybe it'll help me get done faster. thanks guys
lisa

Originally Posted by Adster

Guys, the IMF have agreed and given the go ahead of a rate of $0.06, said as much in the above IMF Report.

Where?!? I have read the report three times looking for that and I just can't find/ see it... I guess it's closing its eyes at me...
/Karin

Ps. Do we/ you all still think it will happen next week? I DO hope so!

Karin,

It was from an expert economist, that was his recommendation 3 years ago. Now you could say with all the good stuff that has happened it SHOULD be at least 0.06. Why my own thoughts are .10-.20 open, a float and a huge increase which some experts in New York I spoke to predict could go up to $1.59 by the end of the first day of trading. The demand will push it skyhigh immediately. By doing it this way the CBI and government would be 'hedging' their bets almost, like dangling some bait and seeing how many fish go for it.

Karin,

This is the article.


http://www.georgescorm.com/en/artic...article04.shtml

III. Monetary and Banking Issues

The present state of affairs described in our introduction is very detrimental to the Iraqi society. Iraq is in bad need of monetary and financial stability. However, without an internationally recognized government it will be difficult to create a new monetary and banking system.

We can outline here some of the issues that Iraq will face to establish a sound and dynamic monetary and banking system.

1. We would advise that the new system should not be based on a dual currency system like in Lebanon or Argentina, with the dollar and the Iraqi dinar being both used as legal tender. This is distorting the economy and encouraging speculation against the domestic currency. Given the flow of oil resources, the Iraqi dinar should be reinstated as a strong currency and we would advise to create a new “heavy” dinar which rate should be around 15 dinars to one dollar.

2. No fixed rate of the dollar to the dinar should be adopted, but the value of the dinar should be floating so that the Iraqi economy would adjust freely to developments in the value of its domestic currency. It would not be wise to have the Central bank to use its scarce foreign exchange reserves to defend a fixed rate of the currency.

3. As mentioned in our previous presentation we strongly favor a free exchange market with no controls on the movements of funds.

4. If the independence of the Central bank is a highly desirable aim, such independence should not be conducive to deflationary policies that might prevent economic growth and dynamism as has happened in various countries.

5. For some years to come Iraq will face a difficult period of adjustment and its foreign exchange needs will be quite substantial. To face this challenge, the monetary and banking system should not be a burden on the Iraqi economy as has been the case in Lebanon and Argentina.

• Such system should encourage productive activities and a diversification of exports outside the traditional oil and petrochemical sector. Iraqi water resources should be well exploited to develop agriculture and agribusiness.

• The banking sector should be oriented towards financing productive activities and not only trade and real estate transactions. Inspiration could be found in South East Asian experiences on how to stimulate the local productive capacity and export oriented industries.

• Micro-credits should be made available to the poor strata of the population and capital venture funds to professionals that would like to create new productive capacity in the country based on their own knowledge and capacity.

6. A new banking law should be adopted as soon as legal conditions will allow it and training of Central bank officials for banking supervision should begin as soon as possible. Foreign banks should be allowed to create branches or affiliates in Iraq.

That's what I was saying last night on the other forum. I think it could open as high as .68 because if the experts think it will hit 1.59 in the first day, they could actually peg it anywhere up to that amount. I like the fact about the CBI stating money laundering. I just wish we would hear for sure about the FIL.

Thanks Adam!
/Karin

Hi everyone, I wasn't expecting the forum to be here this morning. I have my coffee and have been reading all of the posts this morning. What a difference a day makes. I do have a question that was not answered. I thought that the r/v was going to be high to begin with because if it was too low the country could be bought up for nothing by Donald Trump. At .10 to .20 couldn't that happen? Any thoughts or did I miss something.

Well Flygirl, I'm wondering the same thing. Now if they opened at .68 and the experts predict 1.58 within the first day, then that wouldn't happen. I think the experts opinion sing loud and clear what's going to happen. If this expert deals in forex then I think the experts in Iraq are thinking the same thing. This weekend and next week ought to be very interesting.

you know, I used to have kind of nice looking red and curly hair. It grows whiter by the day. arrrrrgh!

Hey Mike can we have a interesting. LOL