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

Originally Posted by njd2004

Quote from SGS: [I hear in line with jordan as well from some. more like 1.46 to make the movement of the decimal placement on goods and services more simple. faster changeover that way]

Now, that makes a lot of sense and seems extremely credible...............

Okay, question: Does it matter what they reval it to? Is the Jordan globally traded? Will we have a problem exchanging if it does reval to the jordan money?

Forgive my ignorance.

Monica

Well, Monica what SGS meant was that it will reval in the line of Jordan, around the rate that they have at the moment, not that it will reval in jordan money!

The Iraqi economy must be kept isolated from the global economy interconnections and the openness that found controls and restrictions dictated by the state to regulate this process.

Can anyone give an elaboration on what this means, in more simplistic terms.

Perhaps they are considering not becoming part of the WTO?
Or does anyone thinck that Iraq is now oligated and that all of this internal negotiations are encircling the stipulations set forth by the WTO agreement?

Originally Posted by Raditz

Well, Monica what SSG meant was that it will reval in the line of Jordan, around the rate that they have at the moment, not that it will reval in jordan money!

Oh! Gosh, sure am glad to have you guys splainin' this stuff to me or I would be in a heap o' trouble!

Thanks Raditz. Don't laugh too hard at me.

susie You have always come up with the best REVAL numbers. Keep pushing them up. LOL

I had found this old post by goldraker in the IIF archives and pulled it out and reposted it there for comments. I'm posting it here because of SGS comments about moving the decimal and making it 1.46. Wouldnt moving the decimal 3 zeros off the exchange rate of 0.00068 make it .68 instead of 1.46?? That would fall in line with this old post......

The highlighted countries above, collectively have a land mass six times that of Iraq, and yet IRAQ has MORE natural resources then all these five COUNTRIES COMBINED !
Before the Gulf War,Iraq had the highest currency value in this region.Compared to the U.S. Dollar, each dinar was worth$3.22 cents and this is when oil was $28/barrel. Today, Iraq now has the LOWEST currency value of any of these oil exporting countries, and the price of oil has increased 239% ( when you read below, YOU WILL UNDERSTAND WHY ! )
Below are present currency values (taken from theCIA world fact book of 2005) of mid east oil producing countriessurroundingIraq along with their proven oil reserves in "billions ofbarrels"

Kuwait
$3.42 to 1 Kuwaiti Dinar
96.5b bbls 100% Surveyed
Oman
$2.60 to 1Oman Riyal
16.0b bbls 100% Surveyed
Bahrain
$2.65 to 1Bahrain Riyal
126.0b bbls 100% Surveyed
Jordan
$1.40 to 1Jordan Dinar
.5b bbls 100% Surveyed
Saudi Arabia
$0.27 to 1 Saudi Riyal
261.0b bbls 100% Surveyed
UAE
$0.27 to 1 UAE Dirham
97.8b bbls 100% Surveyed
Qatar
$0.27 to 1 QRiyal
16.0b bbl 100% Surveyed


Iraq

$.00068 to 1Iraq Dinar*

**
115.5 bbl 10% SURVEYED

* The internationally recognized pre warvalue of theIraq Dinar was $.33cents to 1 dinar and that was with United Nationsanctions.and before the1991 United Nations sanctions, the Dinar was $3.22 to1
** Benito Livigni,a manager of ENI and the United States’ Gulf Oil Company,"Iraqi’s oil reserves are estimated at 400 billion barrels, farmore than the known figure of 116 billion.", "this would make Iraqthe largest oil producer in the world, ahead of Saudi Arabia, the reportsays"(enough to supply theworld with 5 million barrels a day for 200 years which is double the 2.3 BPDoutput when the Iraqi currency was $3.22 per dinar in1986 and oil was $23.00 per barrel. Currently the price of oil is nearing$70.00/barrel with expectations reaching $100/barrel. )
***Iraq the powerful new "SwingProducer" of Oil
Arab News -3/23/2006
"Iraq seems to bethe new swing producer in OPEC," says John Kingston, global director of oil at Platts."WhileIraq's geological upside is enormous, theinfrastructure of the industry remains threadbare, and it is obviously an easytarget of insurgency. At this point, it's difficult to imagine a jump of severalhundred thousandbarrels per day of output, but it's not thatdifficult to imagine a decline of that magnitude,"Kingston argues.Baghdad currentlyplays only a marginal role in the global oil markets, for obvious reasons. Yetits role in the industry cannot be marginalized for ever. The war-torn countrytoday sits on 11 percent of the worldwide proven oil reserves of 1,050 billionbarrels. This enhances its potential longterm significance for international oil supplies. Experts believeIraq's share of oilreserves might even be higher. If potential reserves are to be included, and ifat least some of theUS projectionsand forecasts aboutIraq are to bebelieved,**Baghdad could boast ofholding as much as 432 billionbarrels."The role of a swingproducer may thus benefitBaghdad this newstature".
http://www.menafn.com/qn_news_story_...StoryId=130224
1)ShortTermInvestmentRange –Iraq has met ALL of the International Monetary Funds(IMF) pre-requirements for acceptance of their initial "Stand By Arrangement" granted onDecember 23rd 2005 for the amount of $685million dollars. The IMF which is 60% owned by the USA has awarded theselow interest loans that are solely for the specific purpose to bolster,"backstopping" & strengthening the Iraqi dinarcurrency.
a)Currentlythe dinar trades at the rate of approximately 1,472New Iraqi Dinar for each (1) U.S. dollar, which is 1/485thof its value of 30 months ago. The IMF’s"Emergency Post Conflict Assistance" (EPCA) program of 2005,required an "artificial baseline exchange rate" for the purpose of retrieving and monitoring data from the 26 state and government banks, and to use this artificial exchange rate as a starting reference point. They declaredthey would set this artificial exchange rate for the period that theU.S. contracted auditors, Ernst & Young would need tocomplete their audit of the Central and Regional banks of Iraq ending December 31st 2005. It has now been extended until Ernst & Youngwould submit these audits to the New Iraqi Government & the United States Government .


As we know Ernst & Young have completed their audit. Any thoughts?

Cheers!
DayDream

Well, I don't know if I am thinking completely wrong...but I was thinking that maybe it's like this: NOW 1$ is 1466 "ish" dinars... If you then move the decimal on that, you would get 1$= 1,46 dinars? But then it would not be 0.93 Euro...

Karinc, I thought they were talking about its value relative to Jordan money (
and I have no idea what the current/proposed exchange rate with Jordan is).
Susie, please invite your friends dejavu and H2Olover over from the iif forum. As for those doom and gloomers, however, let's leave them over there with stephanie so they can take turns raining on each others clouds:))

Originally Posted by karinc

Well, I don't know if I am thinking completely wrong...but I was thinking that maybe it's like this: NOW 1$ is 1466 "ish" dinars... If you then move the decimal on that, you would get 1$= 1,46 dinars? But then it would not be 0.93 Euro...

Karinc.. I read somewhere that that equation would then change to something like $.49 = 0.98 Euro :)