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

i got the messgage below from another forum, have no idea if it si good or bad, but could the specialists react on this if possible:

Deef


It is always a pleasure to receive your fine emails and to assist you.

As you are well aware financial enterprises and in particularly the banking industry do not provide information based on rumors and does not keep records of such a matter.

We act upon the precise instructions of the Central Bank of Iraq which is the highest financial authority in Iraq and we implement and follow their instructions accordingly.

Any currency rate in any country depends on the stability of that country in terms of political and security. We hope everyday that both the political and the security situation in Iraq will be more stable than what it is at the present time. The current exchange rate is, in my personal opinion, not a true rate because the dollar exchange rate in Iraq depends on the supply and demand of the said currency. If it was not for the daily intervention of the Central Bank of Iraq in selling in the range of 500 million dollars per month, one would expect the exchange rate to reach as high level as 5000 dinars to the one dollar. I believe that an increase in value of the Iraqi dinar will not be seen in the short term as the Iraqi government depends on the sale of the dollar to pay the expenses of the government from salaries to the internal contracts. Also, due to the high salaries which are being paid now to the public sector, most government employees will not accept a decrease in their salaries as they were very deprived in the days of the old regime. If this magic wand be struck on Iraq, then I am sure that we will over come all the neighboring countries in their standard of living.

As you are aware that foreign investment law is actually into operation in Iraq according to the new constitution. There is also an approval from the Prime Minister’s office to start this law. Unfortunately, no one is working on this law as there is no system being incorporated for this purpose at ISX. In order to overcome this hurdle, and moving along with the law, we managed to establish a company called SHOWNEEZE which belongs to the bank where we buy the shares in this name according to the laws and regulations of which these shares are bought for our foreign customers where each customer has his own share profile in quantity and price bought or sold according to each trading session. Once the law is implemented, in the ISX, then we will transfer these shares for our customer in his name with a minimum fee. I believe that this is the time for our customers to buy the shares that they want were we are giving them the opportunity to make good profits since once the country is back to normal and foreign people can buy shares believe me no one will be able to grab a handful of shares as this could be seen in the neighboring countries. The price of shares are now at its lowest that it will ever get. An example of this would you believe that price of one Pepsi cola bottle equates to 100 shares of Pepsi Cola Baghdad. No one believes this but this the opportunity that I am talking about or the share capital of a company which is 3 million dollars with assets of 60 million dollars price of share is six dinars.

Retail banking is very hard business in Iraq. In the past rich people are used to put their monies in their homes and not declaring it into the banking sector because they are afraid that it will be confiscated by the old regime. Middle class people could hardly have any savings due to the very low salaries that they used to get. We are attracting those middle class clients to our bank by insuring that their salaries are paid to their accounts in the bank were we give them a loan to buy things that they could not buy with their salaries like household goods. We attract major companies due to the services that we provide them wit like salary payment system, documentary credit, purchase of the dollars from the central bank at a very marginal rate and foreign bank transfer.

I see the bank in three years time to still be the number one bank among the people of Iraq were we aim the bank to be called the people bank. This I hope will eliminate the competition of foreign banks coming into Iraq as they will only attract the cooperate banking sector.

People think that Warka Bank follows a gray area in Iraqi banking laws. I do not blame them for their thinking as how come Warka Bank managed to increase its share capital from 1.5 billion dinar to 30 billion dinar with reserves of 20 billion dinars. How could warka bank in a period of 2.5 years manage to be the number one bank in everything. The answer is very simple;

We have a reputable name that all the people in Iraq trust and know
We do not steel and take commissions from bank business transactions.
We dedicate all our time and efforts in providing the best services and care to our clients and above all. We have the full support of a faithful management and staff of the bank.


Many thanks and best regards,

i just realized that above message which was taken from another forum, is just 1 person's opinion.
reading it myself properly, we are all doomed and will not see a r/v in a short time.
forget reacting, sorry for posting this too fast.

deef

Originally Posted by benzboy

have not seen him post in a few days or more is he okay? Looking forward to next weekcom on reval!!!!!
benzboy

Now that so many members have stepped up to the plate to bring breaking news to the forum, I imagine that Adster is taking some time off to enjoy his life. I hope he is having a great time!!

I found this on the ISX-Data.com site this morning.

Re-Value the Iraqi Dinar? Yes!

Published: 08/31/2006

Iraq's current government has been staggering badly under the pressure of growing violence and widespread infrastructure failures. As a result, government consolidation is taking place, including dismissals, arrests, and the emergence of strong personalities. Yet still, most government participants appear to lack the will to stick their neck out and make bold moves that would ultimately help the Iraqi people.

The Iraqi Dinar

Economically, according to my estimates, the Iraqi dinar is hopelessly undervalued, and should have been revalued long ago. The dinar is held down artificially by the Central Bank of Iraq (CBI), resulting in very little buying power for the Iraqi working class. Currently, most of the day-to-day products needed by Iraqi's are produced outside of the country, but when buying it with an undervalued currency, nobody except the intrepid merchant benefits. In order to justify the costs of manufacture and import into the country, most things that we in the West take for granted are priced far beyond the average Iraqi's ability to pay for it, due in large part to the vast exchange rate differences.

Due to these currency differences, few Iraqi's can afford the items they want or need. As fewer people can afford them, the market for these items is artificially small, resulting in less competition and higher prices. This, coupled with the day-to-day disruption of goods and services due to the violence plaguing large tracts of the country, have led to high levels of inflation.


By revaluing the Iraq Dinar to it's true value towards the market, the Iraqi people will regain a measure of their buying power back. Imported goods will now be within reach of nearly everybody, helped to infuse the Iraqi economy with a new vitality.

True Dinar Value

In analyzing the true value of the dinar, many have predicted a value as high as parity with the US dollar ($1 = 1 dinar), while more conservative estimates have been in the range of a $0.01 = 1 dinar. This range, of course, can only be estimated, because the dinars true strength can only be determined, as with all currencies, once it is freely traded on the world market.

The continued lack of purchasing power of the Iraq dinar will be yet another factor in a long line of social problems, and some have the idea that those problems have to be addressed first before the economy can be fixed. The Iraqi man on the street is having a hard time feeding his family, and in such dire circumstances he may even be tempted to work against his fellow Iraqi's through insurgency, crime and even terrorism. This writer urges the current Iraqi Administration; fix the dinar.

The "Big Guys" are standing at the gate waiting to get in, but have to wait until they get assurances that the investment will not be socialized as in Saudi Arabia, Iran and Venezuela, or lost completely due to a full-blown civil war. The new Iraq Investment Laws are tentative right now, but hopefully the Iraqi Government will make it a top priority when they return to session this fall. However, as with everything in Iraq these days, this supposition is a moving target at best.

Sat 2 Sep 2006 10:30 AM ET

(Adds details)

NAJAF, Iraq, Sept 2 (Reuters) - Four Iraqi ministries will be affected by a planned cabinet reshuffle, but the oil minister, whose future has been the subject of behind-the-scenes speculation, will stay on, the prime minister said on Saturday.

"There will be minor changes to four ministries that will be announced soon," said Prime Minister Nuri al-Maliki. Asked whether the Oil Ministry would be among them, he said: "No".

Maliki, whose national unity coalition was formed only in May, made the remarks after visiting the country's top Shi'ite cleric Grand Ayatollah Ali al-Sistani, seen as a close ally of Oil Minister Hussain al-Shahristani.

Shahristani, due to attend an OPEC meeting in Vienna on Sept. 11, has been criticised, notably by others in the dominant Shi'ite Alliance bloc, over his response to a fuel shortage.

The cabinet reshuffle, which will include the Transport Ministry, will need parliamentary approval.

Parliament reconvenes from summer recess on Tuesday.

Senior government officials say the bulk of the reshuffle will involve supporters of radical Shi'ite cleric Moqtada al-Sadr -- like the transport minister, who ministry officials say has already stepped down.

Maliki is frustrated by the performance of some ministers, Deputy Prime Minister Barham Salih told Reuters last week, and also at the fact that some appeared to have split loyalties.

Sadr's movement is part of the Alliance but his Mehdi Army militia is accused of taking part in sectarian death squad violence and has fought government troops this past week. Sadr denies any involvement in violence and urges restraint.

Another figure whose position has been the object of speculation is the Sunni Arab speaker of parliament, Mahmoud al-Mashhadani. But senior Alliance politicians said this week that they were no longer pressing for his removal, despite Shi'ite discontent at what they see as sectarian bias.

Mashhadani was also recently the object of some international controversy after derogatory comments about Jews.

http://today.reuters.com/News/Crises...ryId=MAC251657

Originally Posted by EbbysMom

I found this on the ISX-Data.com site this morning.

Re-Value the Iraqi Dinar? Yes!

Published: 08/31/2006

Iraq's current government has been staggering badly under the pressure of growing violence and widespread infrastructure failures. As a result, government consolidation is taking place, including dismissals, arrests, and the emergence of strong personalities. Yet still, most government participants appear to lack the will to stick their neck out and make bold moves that would ultimately help the Iraqi people.

The Iraqi Dinar

Economically, according to my estimates, the Iraqi dinar is hopelessly undervalued, and should have been revalued long ago. The dinar is held down artificially by the Central Bank of Iraq (CBI), resulting in very little buying power for the Iraqi working class. Currently, most of the day-to-day products needed by Iraqi's are produced outside of the country, but when buying it with an undervalued currency, nobody except the intrepid merchant benefits. In order to justify the costs of manufacture and import into the country, most things that we in the West take for granted are priced far beyond the average Iraqi's ability to pay for it, due in large part to the vast exchange rate differences.

Due to these currency differences, few Iraqi's can afford the items they want or need. As fewer people can afford them, the market for these items is artificially small, resulting in less competition and higher prices. This, coupled with the day-to-day disruption of goods and services due to the violence plaguing large tracts of the country, have led to high levels of inflation.


By revaluing the Iraq Dinar to it's true value towards the market, the Iraqi people will regain a measure of their buying power back. Imported goods will now be within reach of nearly everybody, helped to infuse the Iraqi economy with a new vitality.

True Dinar Value

In analyzing the true value of the dinar, many have predicted a value as high as parity with the US dollar ($1 = 1 dinar), while more conservative estimates have been in the range of a $0.01 = 1 dinar. This range, of course, can only be estimated, because the dinars true strength can only be determined, as with all currencies, once it is freely traded on the world market.

The continued lack of purchasing power of the Iraq dinar will be yet another factor in a long line of social problems, and some have the idea that those problems have to be addressed first before the economy can be fixed. The Iraqi man on the street is having a hard time feeding his family, and in such dire circumstances he may even be tempted to work against his fellow Iraqi's through insurgency, crime and even terrorism. This writer urges the current Iraqi Administration; fix the dinar.

The "Big Guys" are standing at the gate waiting to get in, but have to wait until they get assurances that the investment will not be socialized as in Saudi Arabia, Iran and Venezuela, or lost completely due to a full-blown civil war. The new Iraq Investment Laws are tentative right now, but hopefully the Iraqi Government will make it a top priority when they return to session this fall. However, as with everything in Iraq these days, this supposition is a moving target at best.

good find . this looks like the closes thing
to a official notice we will get.

Originally Posted by pipshurricane

Here my statement Tommy on 24 of august that mean all,the 2 of september have been push a little bit more on front!!! :))

Got it. I always knew what the 2nd meant. Just the begginnings of the groups for their meeting as a whole.

Originally Posted by njd2004

Quote[Yes ...... Sorry. 0.000763 But the CBI Site: Exchange Rates still shows the 0.00068 1477 to $1]

Don't get too excited... this will simply be the difference between their buying and selling rates, and not an indication that things are on the move.

Let's hope something happens soon though.

Neil

Yes njd2004, This was the thought of the first proof I had of a associate personally experiencing the exchange. Now that that is figured,the excitement of it just being done is exciting still.

Originally Posted by ourhouse37

I had to laugh. I once had a Vega hatchback that was the cutest thing you ever saw, and absolutely the worst piece of c*** to ever hit the highway. Taught me the true meaning of fluent cursing.

Actually with a chevy 350 small block loaded into that small chassy it was one of the fasts cars on are strip as teenagers that we had compitetion with in the Quarter Mile, in the early 80's.

Originally Posted by kingpau

I think that might be a mis-quote there. 13 million dinars for a mosque and 1 million dinars for a car? I will happily sell them my 1978 Vega station wagon for 1 million dollars.

There is someone that still has a Vega! I thought they were extinct!