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

Originally Posted by PAn8tv

Got mine today from Chase in Glendale AZ...all 25's...only disappointment was that I couldn't hand them right back and ask for the reval rate...anyhow peace out!

I did PAn8tv, and it was 0.00062390 slightly under the CBI rate. Glad you got yours.

New law allows private entrepreneurs to import fuel

07 September 2006 (Azzaman)

Under new regulations, turned into law on Monday, Iraqi entrepreneurs will have the right to import fuel and compete with government-owned fuel distribution network.
Even foreign entrepreneurs, under the new legislation, are allowed to export and distribute fuel products directly. Iraq is currently facing a severe petrol, kerosene and cooking gas shortage.
The law gives Iraqi and foreign entrepreneurs the right to build fuel storages across the country, set up their filling stations and sell fuel directly to customers.
Those to be involved in what many see as a lucrative business opportunity will have taxes on their activities waived for two years.
The law comes as the government has decided to up spending on importing fuel this year to some $800 million a month.
New law allows private entrepreneurs to import fuel | Iraq Updates

oops! here's the link

New law allows private entrepreneurs to import fuel | Iraq Updates

International oil companies including Shell, ExxonMobil, Total, BP and Chevron are positioning themselves to exploit Iraq's rich oilfield potential once the country agrees to legislation protecting their investments.
The attraction lies in more than 500 geological structures believed to contain huge volumes of oil and. Most structures have yet to be drilled and at present almost all Iraq's oil is produced from just 20 fields.



Kurdistan discovery may tempt oil majors | Iraq Updates

This was interesting: I saw a tv commercial the other day which surprised me. It was titled: Kurdistan, The Other Iraq. It went on to advertise business and investment in Iraq. It highlighted a more stable part of the country and tried to show that Iraq was progressive. I was just surprised to see this in a tv commercial.

I copied this with the permission of the author and figured I would put it out there for discussion. Sounds good to me....

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Out of the 30 some trillion dinars in existence, we (the investors probably hold way less then 1% worldwide and that is at the top end of my guess. Most is held by the GoI / CBI. With a total of only 23 some Trillion out on the streets / issued (according to the SBA), and the rest in the vaults.
Will our cashing in effect the GoI? Probably not as their reserves are sufficient or above what is called for by the World Bank. Our small percentage is negligible, and I am sure has been figured into any RV/Float equation. The Big Banks are a different story, but the question comes to mind is; Are they all going to run to the FX or U.S. Federal Reserve and cash in for Dollars like we are? Nope, it doesn’t make sense for them to do that. I believe that the will make their money/profit by using it for international trade (not the FX), but if a dinar is now equal to a dollar (just a comparison), why trade it in for a dollar (which is weak) when you have the dinar which should continue to grow and appreciate. This is one case where Apples (dinar) and Oranges (dollars) are the same because they the same value.
I agree that the USGov probably has a large amount (several Trillion?) dinars in the bank. But that doesn’t matter either. The USG will not place a call on the CIB to exchange all the dinars for dollars. They will instead hold them over the long term, or use them sparingly so as not to collapse or affect the Iraqi economy. This holds true for all the other countries that are holding. The WB will also help support and defend the Dinar in the same manner, ensuring that no-one dumps.
I believe that the only people that will affect the CBI by cashing in their Dinars for Dollars is us!!!!! With all the big holders being either Governments (foreign to Iraq) or Banks, I don’t think that they will be willing too, or want to sell off/trade in their dinars for dollars or what ever they call their curency. I think they are truly the long term investors. As in the example above; If a dinar is now worth a dollar, the question is why would I want to trade one currency for another when they are worth the same. I would hold on and use it for international trade (i.e. oil, etc..), and only if the price of something I was buying was in dinars, instead of the expense of trading it in just to change what country this "dollars worth" is from. If I am a bank, that say bought 1 Billion IQD at $0.0068 and it is now worth $1.00 then I have made my investors very, very happy as my electronic bottom line just jumped several thousand percent, and the dinar is still worth a dollar without me ever having to convert it "physically" into dollars. In-other-words at that point a Dinar is a Dollar is a Dinar. The worth is the same no matter where I am at or what the actual physical bill I am holding is. The purchasing power is the same. If I exchange it then I loose the percentage that it cost me to exchange it. Whereas if I buy something that has a dinar price (oil, NG, or to pay Iraqi workers to build a Refinery) on it, I don’t loose that exchange percentage, and have seen full value out of my dinar. (Yes I know that all oil trades are done in dollars, and was just using this as an example, but in the long run the oil in the ground is very much the Bank and future of Iraq).
Likewise the common Iraqi or even the GoI (whose dinars in the wallet, purse, or vault are now also worth a dollar) are using dinars for every day transactions, aren’t going to be selling / exchanging their dinars for dollars, euros, or anything else as the price of bread, or Starbuck Latte in downtown Baghdad is marked in dinar and not dollars. The Iraqi’s except for a very small percentage will not exchange their money (unless they want to by a Chalet in Switzerland), but will continue to use the dinar as their everyday money of choice, especially as it is now worth a dollar in purchasing power.
Look at it from a different point of view: If everyone (other Governments, Banks, individuals) holding U.S. Dollars or having a debt against the U.S. Government decided to force a call on the government / dollar, then Mexico would be setting up fences on their side of the border to keep us out. We would be headed south to pick lettuce. So as long as the GoI can support what ever they say is the value of the Dinar, a revaluation and thus new value will be accepted by the international markets. "If" they do revalue, they will know to the thousands of a penny just how much the market can bear. I also do not think that the U.S. Government, (and really run by us) IMF and WB will let a call or any other kind of run happen to the dinar or the Iraqi economy. So if and when they RV, it will be supported, and this will be just a part of the equation that goes into a final value.
As the IQD is a fixed currency (currently), the GoI/CBI have the ability to revalue their currency at anytime before it hits the FX and becomes an internationally traded commodity. Once, and after they either PEG it to another currency or market basket of commodities / currencies, or let it float on the FX then they the GoI / CBI will have very little control over the value of their currency, as market economics will take over. This is when they really have to show economic progress by getting the oil and NG out of the ground and to the market place, increasing their agricultural exports, and create an industrial base with which to improve and grow the value of Iraq. Let’s not forget that the Big Oil Companies are beating on the doors, not to mention all the other companies (non-oil) that see a golden opportunity. But before all this happens I believe that they are going to have to revalue (RV) to set a standard / set point / value that is close to what they actually think, or know the current market will bear. We all believe that it is undervalued, and so do many others. It is that set-point / value that we are all waiting on. Now if they would just get off their butts and do it!!!!!!!!!!!

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Yes this is what we have all come to know and see. The only thing different I would mention is this Gentelman when saying before it hits the FX (Foreign eXchange, maybe Forex) is the same as we say before the ISX (Iraq Stock eXchange) Opens. So all in all this is what it is.

Originally Posted by pipshurricane

UAE to host meeting of the International Althoudri with Iraq

(Voice of Iraq) - 07-09-2006 | This issue was sent to a friend

UAE to host meeting of the International Althoudri with Iraq

: PUKmedia

The press office of Iraqi Deputy Prime Minister Dr. Barham Salih, would hold preparatory meeting of the International Iraq with the hospitality of the United Arab Emirates in Abu Dhabi on Sunday, September 10, 2006 at the Emirates Palace Hotel, The meeting will be co-chaired by the Iraqi government and the United Nations, The Iraqi delegation will be headed by Dr. Barham Ahmed Salih, accompanied by Deputy Prime Minister and Ministers of Finance Messrs. statement Jabr Al-Zubaydi Oil Minister, and Dr. Hussein Shahrastani and Planning Minister Dr. Ali Baban and trade minister Abd Farmer, the Sudanese National Security Advisor Dr. Muwaffaq Rubaie, the Iraqi Central Bank Governor, As the United Nations delegation will be headed by Mr. Mike Brown, Deputy Secretary-General of the United Nations.

Meeting will be attended by representatives from the World Bank, the European Union and the United States of America, the United Kingdom and the Kingdom of Saudi Arabia, Kuwait, Italy, Germany, France, Spain, Korea, Japan and a number of organizations and other financial institutions.

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All my local contacts and Freinds are seeing this as the Announcement of the FIL and possiblly the r/v at the same time. September 10th will still fall in ShotGunSusie's Statement.

I was just checking out susie on iif and she said something that made my ears perk up. She made the comment that Iraq has to reval before the 17th of Sept to keep their agreement with IMF. She gave a link, I will try and post it here. I could not find what she was talking about. She said nine months from the date of this document???????

http://www.imf.org/external/np/loi/2005/irq/120605.pdf


Who was it on this forum that was posting about this? That after the 17th they would begin to loose money?

Help!!!!! I really, really want to find that post. Is it related to what susie is saying?

Hope so!!!!

Thanks in advance,

Monica

Well, im ready.

Guess that makes a few of us!!!