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

Hi,

Does anybody have any views on that issueing of bonds, it does seem strange to issue them if a revalueation is imminent, also one for Cigarman where does your Iraqi friend get his information from i.e. what standing does his friends relative have back in Iraq.

Originally Posted by abbey56

Hi,

Does anybody have any views on that issueing of bonds, it does seem strange to issue them if a revalueation is imminent, also one for Cigarman where does your Iraqi friend get his information from i.e. what standing does his friends relative have back in Iraq.

Just find this opinion from another person:

To put it in economic terms, Iraq is in serious do-do.

There is too much currency floating about in circulation chasing too few goods (inflation). This causes prices to rise. In an attempt to deal with the problem the CBI has start semi-monthly auctions that are 6 month T bills, which have the net effect of pulling currency out of circulation.

It is a desperate attempt along with its recent interest rate increases to get a handle on the situation.

If you remember it was recently reported that Shabibi spoke to the Deputy PM on the matter of fiscal spending, which exacerbates the inflation position.

Of course there is an other option available to Shabibi and Iraqi gov and that is to RV the dinar. As the dinar hasn't been allowed to appreciate as the rise in oil prices have occurred, this lack of action has contributed to the inflationary situation.

Also if you remember the CBI leaked information a few weeks back that Iraqi citizens should convert their FX currencies to dinar. This statement is not prudent in the light of the high inflation that Iraq is currently experiencing. It would have been more prudent to advise its citizens to keep their FX currencies, as it turned out to be more stable in the past few weeks. It may cause one to think that CBI was taken by surprise by the rate hike in inflation or that a RV was imminent. Whatever the reason, one thing is sure, Iraq is under severe economic pressure right now.

Foreign investment is even more crucial to get productivity back in the black and reverse the inflation process.

Real Quick. I just got home and need to catch-up. But let me just say this.4 Different times today on the Radio, exspecially NPR News, They said in a report that the Iraq Government Officals have stated that the sectiarn and Insurgent Violence has almost Halted. They sould have control of Baghdad shortly. And Security is almost there.

I was excited to hear this. Ok. Got to hit the poll and clean-up and will be back to catch-up on the forum. just wanted to share that the News is finally reporting "Good Things" for a change.

It was in the rumor section and besides that so far everyones supposedly in the know sources have been wrong. I only brought it here to show that I'm not the only one that hasn't given up on August yet.

Hi,

So in plain english, what is stopping them from revaluation immediately- is it just getting the violence under control and passing the Foreign Investment Law.

Originally Posted by danny51

that's only moderately funny there Ourhouse37.

ha ha. got me. npr npr npr, neener neener neener! forgive me, I'm hot, tired, overworked and broke. hopefully this will pass soon.

Originally Posted by tiffany

That's so funny Kristin! I was told "she" has red hair, BROWN eyes, and is RIGHT handed! lol!!!

must be because us redheads are so spirited, intelligent and independent. Not to mention flamboyant and enthusiastic. God knows, and she ain't tellin!

Originally Posted by abbey56

Hi,

So in plain english, what is stopping them from revaluation immediately- is it just getting the violence under control and passing the Foreign Investment Law.

Ok abbey56,

Reasons why they haven't rv'd:

SA and Kuwait have still not forgiven debt and may not.
Violence in Baghdad still needs to be curbed.
FIL still not in place.

In theory yes they can r/v NOW but the above could be what they're waiting on.

On a plus side though, inflation is rising daily which the IMF want to be under control.....

People are struggling more and more by the day to make ends meet and survive.......

Kurdistan is ready to accept foreign investment, the rest of Iraq needs to play catch up asap or be left behind.....

Reserves are being built up in the way of daily auctions........

Insurgencies are falling since the troops entered Baghdad......

And so on............

September will be a month to remember IMO.

Just adding onto the above plus points as the edit's not working.....

Bush needs to pay for the war, a r/v will do that......

The IMF and World Bank have backed a r/v.........

There are so many good things happening.

Originally Posted by Adster

Just adding onto the above plus points as the edit's not working.....

Bush needs to pay for the war, a r/v will do that......

The IMF and World Bank have backed a r/v.........

There are so many good things happening.

So the IMF and the WOB is a done fact, that they will "Back" the r/v. Wow!! I didn't know this was done completely. This is Money in the bank then. Just a Matter of when. Thanks Adster.

What I dont undersatand is why we can still buy dinar? Seems it should be harder and harder to get our hands on with this kind of information being known.