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

Originally Posted by Adster

This means for those that don't understand. Iraq might have been required to have reserves of $1.00 to peg the dinar at $3.00. Making the requirement 30% cash reserves. In some countries the requirement is substantially higher, say 60% cash reserves. Now that they have amended reserve requirement regulations the same $3.00 peg would only require .30 cash reserves. This is using a 10% cash reserve requirement. The article doesn't say what the new reserve requirement was amended to.

A .31 revalue of dinar would require .031 in cash reserves for example.

So would this mean that for 13 trillion dinars printed, pegged at a rate of 3$/dinar, the CBI would require 10% of that amount in USD reserves? That would amount to 3.9 trillions usd, right?

Originally Posted by Adster

Welcome guys,

Quite a few of us have a vested interest on what happens out there as we've invested there.


Funny, I currently have 7 programmes going on including P**s but the one that I see as the banker is the 'dinar'. Why? Cos of the research I've done and the development of the country on a weekly basis.

My worry was always that they'd not have the reserves to support a high r/v as people exchanged them in but the fact now they don't need to back it so high and with a fractional support in place it's all coming together nicely for 2006.

Agreed,

I learned long ago to diversify investments and business opportunities, and when Free-Dinar popped up, I said, wow, now that is unique, and having gotten luck with Kuwait dinar, I knew it had extreme potential, but like with the Kuwait dinar, it was not a quick ROI, it was over a year, and I got involved with Free-Dinar for the very same reason, a good long term play. (g)

Well, as we are all seeing, you never know. I have been investing in Dinar for just over a year, and more seriously in the last six months since Free-Dinar hit the market. Its funny, but who would have imagined that everyone who joined an MLM, such as Free-Dinar would become wealthy from the product, not the act of recruiting or selling. LOL

Just goes to show you that if you don't take some risk, you will have no hope at all of ever receiving the rewards risk offers. We have all heard the phrase, no risk, no reward, and it has never been more clear of an example than with Iraqi-Investments. This is just the beginning of our journey, for as soon as peg is made, I would advise everyone to further invest in Iraq, and don't sell all your dinar too quickly, no matter what peg is set at, it will indeed rise, just as it did in Kuwait.

Happy Holidays to All, Mike

There are currently 4.62 trillion dinar in circulation out of 13 trillion printed. There's probably a load more in storage too.

You are correct but the article as of yesterday showed that the reserves don't have to be backed by hard currency alone. Liquid, ie OIL can be used towards that now. Good news.

Nice one Mike, I enjoy our posts on dinar together.

There are two trains of thought, a very low r/v allowed to 'float' over a period of time or the fixed revalue at a certain rate. Too low and it will cost the Iraqis billions to pay out to all the speculators jumping on board the bandwagon. And it won't give anything back to the people or kickstart their economy.

Too high? Well before yesterdays article my thoughts were a revalue of around .33 to the dollar. Now that oil can be used to back the reserves as well as hard currency the CBI can set whatever rate they feel is best for Iraq, it really could be anything now.

IMO a pre war rate of .33 is what they will revalue it at. Give back to the people what they had before the war, less Saddam, LOL. This rate will also kickstart the economy which it needs as well as stopping a lot of new speculators jumping on the boat. The boat will have sailed away. ;0)

Originally Posted by Adster

There are currently 4.62 dinar in circulation out of 13 trillion printed. There's probably a load more in storage too.

You are correct but the article as of yesterday showed that the reserves don't have to be backed by hard currency alone. Liquid, ie OIL can be used towards that now. Good news.

ok so lets say for 4.6T dinars in circulation, CBI would keep 1.3T$ usd in reserves, they got near 10B$ usd currently so they have to find 1290 billions in highly liquid assets. Would oil be enough to fill the gap?

for a 0.3$/dinar peg, with 4.6T dinars circulating, CBI would keep 130B$ usd in reserves, so they would be 120B$ usd short. Would seem much less stretchy.

Still at 0.3$/dinar...I'm sure most would be happy.

More excellent news, billions are being forgiven daily now. There's only one way for Iraq, their people, and their currency, the dinar, and is that is UP. This investment is so unique. Unlike mlm's and hyip's etc with the dinar and a revalue the sky really is the limit.

http://home.businesswire.com/portal/...89&newsLang=en


http://home.businesswire.com/portal/...94&newsLang=en

http://asia.news.yahoo.com/051222/kyodo/d8el89eg1.html

Happy holidays all.

Adster.

Great news Adster! Glad I jumped on board for this ride!

Good on you Orangeblood, you've done the right thing IMO.

Have a look at this, more incredible news. Not too late to look at getting into this investment, pm me for more details.


December 23, 2005
JS-3064

Statement by Treasury Secretary John Snow on Iraq's Successful Conclusion of its Debt Exchange Offer

"It is a historic, unprecedented accomplishment that Iraq was able to attain 100% participation in this exchange. We have been working with Iraq to accomplish this and I couldn't be more pleased that it will be completed. The leadership of Minister Allawi and Governor Shabibi, along with the work of private sector participants, has helped Iraq to achieve another major milestone. This deal, when fully implemented, will reduce the burden on the Iraqi people of Saddam-era debt by more than $11 billion. We also look forward today to IMF Board consideration of a stand-by arrangement with Iraq. Resolution of Iraq's commercial debt gives further evidence of Iraqi determination to meet its commitments to secure an IMF program. This action is another important milestone in Iraq's reintegration into the international community, and paves the way for the next phase of Iraq's much needed debt reduction. If achieved, a successful IMF program would underpin economic stability and help lay the foundation for an open and prosperous economy."

http://www.ustreas.gov/press/releases/js3064.htm

More good news i just read:

WASHINGTON - The International Monetary Fund on Friday approved a new $685 million loan for Iraq, giving the country a critical endorsement of its economic performance.

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The loan, approved by the lending institution's 24-member executive board, represents the IMF's seal of approval that the Iraq government is taking the proper approach to reviving its wartorn economy.

"The Iraqi authorities were successful in promoting macroeconomic stability in 2005, despite the extremely difficult security environment," IMF Deputy Managing Director Takatoshi Kato said in a statement announcing the agreement.

The $685 million loan will cover a 15-month period and was awarded under regular IMF procedures to provide assistance to nation's facing economic difficulties. It followed a $436.3 million emergency post-conflict loan that the IMF awarded Iraq in September 2004.

The Bush administration, which is counting on the IMF and World Bank to supply a significant portion of the funds needed for Iraq reconstruction, applauded the IMF loan deal.

"This arrangement will underpin economic stability and help lay the foundation for an open and prosperous economy in Iraq," Treasury Secretary John Snow said in an announcement.

The loan deal was achieved after months of bargaining between the IMF and the Iraqi government.

It clears the way for wealthy creditor countries to begin implementing a debt relief program for Iraq that would reduce by 80 percent that nation's $38.9 billion in foreign debt held by members of the Paris Club.

In September 2004, the Paris Club, the umbrella group of wealthy countries including the United States, which bargains with debtor nations, had announced the debt relief agreement. But it could not go into effect until Iraq and the IMF reached agreement on a loan program.

The Bush administration last year announced it would forgive 100 percent of he $4.1 billion in debt that Iraq owed the United States.

The IMF statement said the Iraqi government planned to allocate resources in 2006 to expand oil production as part of an economic program aimed at getting the economy into better shape by boosting growth and restraining inflation.

President Bush has been giving a series of speeches on Iraq to bolster sagging support for the U.S.-led effort which has had to confront widespread insurgent attacks.

Private economists have said that the new government will have little prospect of achieving its economic goals until the security situation is brought under control.

pu602,

You beat me to it!!! Yup tis true, what was predicted for so long, this has made my xmas. :0))))))))))))))))))))))))).


IMF Executive Board Approves First Ever Stand-By Arrangement for Iraq
The Executive Board of the International Monetary Fund (IMF) today approved the institution's first-ever Stand-By Arrangement for Iraq, which is designed to support the nation's economic program over the next 15 months [ backstop the dinar?]. The IMF arrangement, for an amount equivalent to SDR 475.4 million (about US$685 million), is being treated as precautionary by the Iraqi authorities.


http://www.imf.org/external/np/sec/pr/2005/pr05307.htm