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

hey Danny51 how you doing - have any good news to share.

Danny, thanks for your reply, I accept your comment regarding the previously wealthier Iraqi's receiving just compensation, and although you say that the average Iraqi does not have any savings, he/she wouldn't need to have... just a 25K note in the back pocket from last months salary would suffice.

We have covered the richer and poorer ends of the scale, but there must be a good number in the more comfortable middle position, who maybe do have 3 or 4 million under the floorboards.

So, I'm sure that there are enough of them to be instant Dollar millionaires if there is a significant reval. There then remains the question as to whether this will happen, and if so, what impact would it have?

Neil

Originally Posted by njd2004

With reference to the recent post by Tim410, I know it has been challenged as either old or total rubbish, but there is one line that does concern me, and I would therefore like someone here to address it.

The line in question is this:

Quote [Imagine the average Iraq citizen instantly becoming a USD millionaire]

This point has been at the back of my mind even though I'm quite positive.

Let's say we get the reval we all want at $1.15 for example, the above is then an extremely valid point. Yes, prices and salaries would be immediately adjusted, but anyone in Iraq holding a bundle of dinars would instantly become wealthy... and they wouldn't have to be holding much.

Considering this, is a reval a realistic possibilty, over and above a zero lop or a float at current rates, and if so, what impact would the above scenario have?

Neil

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I don't think this is a probable scenario...because the reval will NOT have any bearing on the locals (except in the long run; better prices, supplies etc).
Because for WHAT would the locals exchange their dinars?
I don't know where you live, but say you are in the USA. When the dollar revaluates (which it does now and then because it is floating), you don't go and exchange it...You COULD exchange for another currency of course, but couln't use that in the US...so eventually you would have to exchange it back to dollars - and pay the higher price for them.
So a reval is really only good for people who exchange it for OTHER currencies...
/Karin
Ps. Anybody - correct me if I am wrong!

TEHRAN (Reuters) - The first official visit to Iran by Iraq's Shi'ite prime minister, Nuri al-Maliki, that was due to take place on Monday will be delayed for a day or more, Iraqi and Iranian officials said on Sunday.

"It was scheduled that he arrive in Tehran tomorrow (Monday), but due to some technical reasons he cannot come tomorrow," Mohammad Majid al-Sheikh, Iraq's ambassador to Iran, told Iranian state television. He did not give details but said the trip could go ahead on Tuesday or later.

In the United Arab Emirates, Iraqi Deputy Prime Minister Barham Salih told Reuters the reasons for the delay were "purely logistical and technical".

"Mr Maliki has some engagements that lead to the delay. There is no other reason. I personally was in Tehran two days ago," he said, without setting a new date for the visit.

Iraq and non-Arab Iran fought a war in the 1980s under Saddam Hussein's Sunni-dominated rule. But ties have warmed since Iraq's Shi'ite majority won elections, unsettling Iraq's minority Sunni Arabs and many Sunni-dominated states distrustful of the influence of Tehran's Shi'ite clerical establishment.

Analysts have pointed out Iran's increasing influence in post-war Iraq since the empowerment of its Shi'ite majority. The United States has long complained about what it says is Iranian meddling in Iraqi affairs.

http://today.reuters.com/news/articl...C3-worldNews-3

The Associated Press

Published: September 10, 2006
ABU DHABI, United Arab Emirates With Iraq gripped by deepening sectarian chaos, a dozen top Iraqi officials came here Sunday to plead for economic and political support from the world's richest countries and international organizations.

Iraqi officials including Deputy Prime Minister Barham Saleh said international backing was critical for reconciliation among Iraq's warring groups and for economic reforms meant to integrate Baghdad into the global economy.

"This is a pledge on our part to take action on the economic and political situations," Saleh told participants in the United Nations- and U.S.-led International Compact for Iraq talks. "This is also in the interest of the security of the region at large."

The one-day gathering at the opulent Emirates Palace hotel in the Emirates capital Abu Dhabi brought together officials from the U.S., Europe, Japan, Korea and Iraq's Arab neighbors along with the U.N., World Bank and International Monetary Fund.

Participants said the gathering was being held in the Emirates — hundreds of miles from Iraq — because Iraq was too unsafe. Potential donors were looking for assurance from Iraqis that foreign investments in Iraq would not be squandered in the face of relentless unrest that threatens to topple the fledgling government and break up the country.

Speakers seemed unsure whether well-targeted international aid could wrest Iraq from its spiraling chaos.

U.N. Deputy Secretary-General Mark Malloch-Brown said huge efforts creating democratic institutions appeared to be having little effect on deepening strife.

"We've had a constitution, elections and a democratic government in place and still there's a rising tide of sectarian violence," Malloch-Brown said. "For ordinary Iraqis there is a crisis of confidence in their futures. We must support the Iraqi government in embarking on a process of radical reform."

Daniel Weygandt, economic counselor at US embassy in Baghdad, said on the sidelines that Iraq needed to make clear to potential donors that was willing to tackle tough reforms in return for urgent aid. But Weygandt said backing for Iraq was still valuable now, no matter what the future holds.

"Whoever gets the upper hand in Iraq would prefer to get the upper hand in a country that is prosperous," Weygandt said. "The question is to what extent is the international community willing to invest in Iraq."

The International Compact for Iraq is a five-year plan to bring peace and development to violence-wracked Iraq, while ensuring the government has the funds to survive and carry out urgent economic reforms.

The most urgent reforms sought by the international donors are a hydrocarbons law that would outline ownership — and foreign investment — in Iraq's oil reserves and a reduction of government's subsidies for food and gasoline, participants said.

Sunday's Abu Dhabi meeting was in preparation for twin Sept. 18th summits on Iraq. In New York, Iraqi Prime Minister Nouri al-Maliki and Secretary-General Kofi Annan are expected to discuss Baghdad's political reforms, while global finance ministers discuss economic proposals in Singapore on the sidelines of a World Bank and IMF meeting.

Among those in attendance were U.S. Ambassador to Iraq Zalmay Khalilzad and U.S. Deputy Treasury Secretary Robert Kimmitt, President George W. Bush's special envoy on the Compact talks.

Participants are working to estimate the amount of financial support Iraq needs through 2012 to rebuild its economy. The estimate includes money that Iraq can be expected to raise, primarily through oil exports. Any deficit would be made up by international donors.

France and Germany, two countries that opposed the U.S.-led Iraq war, sent participants, as did Spain, Italy, Japan, Korea and several Arab states.

jk-wnt

Iraq tries to convince international donors it's worthy of investment - Africa & Middle East - International Herald Tribune

maliki isnt goin to iran. hes gotta stay home and revalue the dinar. lol

Originally Posted by pipshurricane

TEHRAN (Reuters) - The first official visit to Iran by Iraq's Shi'ite prime minister, Nuri al-Maliki, that was due to take place on Monday will be delayed for a day or more, Iraqi and Iranian officials said on Sunday.

"It was scheduled that he arrive in Tehran tomorrow (Monday), but due to some technical reasons he cannot come tomorrow," Mohammad Majid al-Sheikh, Iraq's ambassador to Iran, told Iranian state television. He did not give details but said the trip could go ahead on Tuesday or later.

In the United Arab Emirates, Iraqi Deputy Prime Minister Barham Salih told Reuters the reasons for the delay were "purely logistical and technical".

"Mr Maliki has some engagements that lead to the delay. There is no other reason. I personally was in Tehran two days ago," he said, without setting a new date for the visit.

Iraq and non-Arab Iran fought a war in the 1980s under Saddam Hussein's Sunni-dominated rule. But ties have warmed since Iraq's Shi'ite majority won elections, unsettling Iraq's minority Sunni Arabs and many Sunni-dominated states distrustful of the influence of Tehran's Shi'ite clerical establishment.

Analysts have pointed out Iran's increasing influence in post-war Iraq since the empowerment of its Shi'ite majority. The United States has long complained about what it says is Iranian meddling in Iraqi affairs.

http://today.reuters.com/news/articl...C3-worldNews-3

but tuesday the 19th, not this coming tuesday. he will be too busy in baghdad THIS week ;)

Originally Posted by shotgunsusie

but tuesday the 19th, not this coming tuesday. he will be too busy in baghdad ;)

Hope so :)) BTW welcome aboard susie great to see you right here with all of us !!!

Originally Posted by shotgunsusie

maliki isnt goin to iran. hes gotta stay home and revalue the dinar. lol

Hey shotgunsusie

Welcome here. I saw where the Kurds have just released their oil law. Very interesting document. Is your contact or source connected in upper government or is the contact just someone who happens to be "in the know"? Just curious if you could elaborate....Thanks!

Look, if the average Iraqi has say, oh I don't know, a thousand NID's and the revalue is placed at 1.19 like we all wish, now he or she has $1190 USD's, how does that change the Iraqi's life. In a very positive way I would say, because even though prices will be adjusted accordingly, I don't think the Iraqi will have to pay a $100.00 USD for a loaf of bread. He or she may have to pay 2, 3 or even 4 or 5 dollars if inflation is really high but even at $5.00 a loaf, you can buy a lot of bread with a thousand USD or it's equivalent.

The point I'm trying to make is, whether an Iraqi has a 1000 NID's or a 1,000,000 NID's when the revalue happens he or she will be much better off than before just as we all will if this all plays out like we hope.

Lets take Mexico for example. Now their currency usually gets devalued but lets just say for arguments sake that suddenly, over night their Peso is made equal to the Dollar. Prices would likey be adjusted but every Mexican would be much better off than before because their money has increased in value, no matter if they had a little or a lot.

Think of what happens in the USA when the Dollar is strong. Other countrys want to trade with the US, that is they want to sell things to them because the Dollar has such a high value. They don't particularly like to buy from us during high dollar value because their currency won't go very far but investments look good because of the strong currency value, knowing that what ever investment they have will be paid out in USD's which is strong and when converted to their own currency, it will covert into much more because of the dollars srtength.

When the dollar is high, travel abroad is much more fun because if a hotel cost a 100 or 200 a night in that countrys currency it may be only 50 or a 100 in USD's. Think of how far your money goes when you visit Mexico, that is as long as you stay out of the tourist sections where prices are inflated but I think you get my point.

I apologize, I think I'm rambling. Look, Some Iraqi's may be able to retire after the revalue but by far the greater number will not, any more than if Mexicos peso suddenly became equal to the dollar.

Having said all of that, I personally think that even though I can see how the revalue could easily be placed at a $1.19 or even more because the currency will be backed by the countrys oil reserves which we all know are huge, I still think that it's likely that the currency will be allowed to float like all other internationally traded currencies and if that is what happens don't worry, that will be a very good thing. The price may not start out where we would like but it will get to where like, I think very quickly because, I believe that Iraq will very soon be stable just as much so if not much more so than any other middle east country and the value of it's currency will refect that and we will all be very happy indeed.

There, I've said enough.