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

don't they get screwed if they don't rv by the 18th the IMF will make them pay back loans and won't the IMF get to pick what there worth and be pegged at that.

Originally Posted by bultn

What would be the consequences if they don't reval by the 18th?

they are asking international countries to invest in the country starting on the 18th. thats going to be difficult with a country that has no international currency, or, opening the currency at .00068 is rather redundant as well.
and yes hopefull you are right.

Originally Posted by Hope Full

The Unique Situation of the Iraqi Dinar
A backgrounder on the Iraqi dinar, including details on why the Iraqi dinar is positioned for a huge rise in value.
09/11/2006

The Iraq Dinar is set up in a very simple, almost crude fashion. The set up was a quick fix after the invasion, seeing that the banking sector in Iraq was about as developed as a model T. Without a modern bank system in place, the "crude and simple" was chosen as a workable interim model.

A Brief History of the Dinar
With Saddam's face plastered all over it, the old dinar had to go. The Saddam dinar also was of very low quality, and could be easily forged on a simple copy machine.

After the invasion, new bills were immediately ordered, but due to the enormous amount needed, some of the old Saddam dinars continued to be printed and circulated until the new ones arrived.

The new dinar bills started to arrive, and they brought with them all the modern safety features one would expect. A wide spread of denominations was chosen, both to make the daily handling easier, and to cover for value variations in it's exchange. Finally, a reasonable time period was granted in order to allow the citizens of Iraq to swap the old Saddam, and "Swiss" dinar in.

The Central Bank of Iraq (CBI)
The Central Bank of Iraq (CBI) was set up as an auction system, with the CBI sitting on the newly printed currency, auctioning older outdated dinars and other foreign currencies with Iraqi banks for new dinars. Now that the currency exchange has been completed, the CBI also sends nearly half of it's daily auction of dinars to foreign banks in Kuwait, Jordan and beyond.


If you go to the CBI official website you will see the daily auction, the currency is now primarily sold in exchange for US dollars. The CBI is slowly but surely acquiring US dollars to help back the worth of the dinar. Everyday the amount of dollars in it's vaults increases.

The exact number of dinars in print, in circulation or on hold at the CBI is exactly known. By doing some very simple steps, full control is achieved through:

Limit the amount a person can bring with him if he is leaving Iraq, to a very small amount (in this case, 100,000 dinar);
Knowing the exact amount sold to banks outside of Iraq.
Once you know the amount of dinars out there, viola, you have complete control over it's fate. The CBI simply sells more or less to hold the dinar in a position exactly where they want it to be.

Given this situation, the dinar will not strictly be pegged. It has been called 'pegged' by some, but in reality you will have some small fluctuations on the dinar value, which you have likely noticed if you have followed it over time. These fluctuations are a balancing act by the CBI.

Simply put, truly pegged currencies don't move from the currency it is pegged to.

This is the basic Iraqi dinar system. Now some may already be asking, that if the Dinar is endlessly sold, wouldn't it flood the market, making them worthless? No, because you have exchanged your US dollars for your dinar, which helps to back the dinar through the above explained CBI mechanism.

Now, this is a very temporary system. Interested readers will of course note that any currency that is not free flowing is a hindrance to full economic development. This fall, new Iraq investment laws are suppose to be passed by the elected Iraqi parliament, allowing international investment companies (read: Big Oil) to invest.

At this very moment, oil company survey and geological teams are crisscrossing the desert, testing grounds, staking claims and hopefully not giving each other a black eye. Again, this is not Iraq government, US government, US Government contractors, US armed forces, etc. running around, this is oil companies. The future mega investment in Iraq which will help drive the economy forward.

A Question of Priorities
Some may ask if we shouldn't take care of the violence first. If Joe Everyman is building a house, is it relevant that his young children are fighting? The short answer is that 'Big Oil' is operating in many areas of the world where violence is the norm, not the exception.

By last June it was announced that no more printing of the dinar is necessary, meaning that we are most probably in the end part of the 'first stage', and are ready for the dinar revaluation. It would be an suicidal economically to leave the dinar in it's current low range, and let the oil companies come in 'on the cheap'. The dinar MUST have a much higher value at that time, otherwise Iraqi will be sold off for literally pennies, or dinars, on the dollar.

While the exact arrangement of the investment law is not yet settled, deals have already been made in how the oil revenue will be shared amongst the different regions and groups in Iraq. So things are moving forward.

It is not yet known if the revaluing of the dinar will be an overnight thing, with no previous announcements, or if it will be a gradual increase as necessary. It should be pointed out that the value of many oilfields in Iraq is also not fully known, because actual modern geological surveys have not been done for decades, if at all, but even with this lack of recent study, the known reserve in the ground rivals that of Saudi Arabia. It is hoped that in the next decade, Iraq will achieve the same oil output as its southern neighbor. Nobody can deny that the potential is there.


From the time the pumps start working, Iraqi society will start getting more and more benefits from the oil revenue. The finances will be available for roads, schools, the electric grid, social programs, new equipment, better computers, etc. These oil-funded infrastructure improvements will help drive manufacturing, and in turn, generate more jobs. Social unrest is handled with police and justice, but it must also be handled with economics. A prosperous nation is a happy nation.

Finally, Iraq has been blessed with something very few Arab countries have. Water. The agricultural heartland of Iraq have one of the highest potentials of big development. With proper development, it could be the Iraqi equivalent of the orchards and fields of California's central valley. This development and the potential of it will only strengthen the dinar now and in the future.

Exciting Times, a Positive Direction
For the dinar, these are exciting times, but even more interesting when it comes to investing in the Iraq stock exchange, because as the oil revenue will start making things possible in Iraq, the opportunities to be in on the ground floor on different investment start ups, will increase. Knowing this is a nation destined for great wealth it makes it even more exciting.

Saudi Arabia, Dubai, the Arab Emirates and Kuwait; are they rich and prosperous states? Of course they are. Why are they wealthy? Oil. Oil is money. Iraq is practically floating on oil. When do the oil companies want to start pumping? ... Yesterday.

Will Iraq continue to be a poor nation? Will the dinar continue to be at it's all time low?
http://www.isx-data.com/opinion/140/...he-iraqi-dinar

the owner of that site is a regular at iif. ive seen him post about it.

Originally Posted by shotgunsusie

the owner of that site is a regular at iif. ive seen him post about it.

that would explain alot

Iraq Sentenced to Imprisonment : Deputy Minister of Planning and the number of workers in the ministry
Baghdad morning
The Central Criminal Court of investigating the issues of integrity sentences against Deputy Minister of Planning, and a number of general managers in the ministry in the case of mine-sweepers.



The carp on the official spokesperson for the chairman of the public integrity that prison sentences were issued for a period of two years in accordance with Article (340) s PF charge of public money deliberately against anyone Behnam Elias Butros and Deputy Minister of Planning and Magda Mohamed Abdullah, Director of the Legal Service Agency, Haidar Hussein Makki director of the technical department in the National Commission for clearance and excellent Khalil Salman, a member of the technical committee, sentenced in absentia and sentenced to two fugitive supporter of the right of the accused Sabir Majeed, director general of the National Commission for clearance.
It is noteworthy that the Ministry of Planning and Development Cooperation concluded contracts for the purchase of mine-sweepers with companies Doknk Croatian and Regmon Falun British and German, which proved investigations to materials used and re-qualify on the basis that it is new, which is a violation of the terms of the contract.
In the same context reported on carp Spokesperson for the President of the public integrity that the Central Criminal Court issued arrest warrants against the accused in the case of the establishment of the National Security Organization for the Protection of Iraq would fuel tanks from Basra to central governorates.
The carp that the organization is accused of stealing a shipment of gasoline is estimated price of the official liquidator about (750) million Iraqi dinars, The arrest warrants were issued against them and inquiry under Article 444 / 11 s p (theft of state funds).
He pointed out that the defendants issued in agreement with the company Carper Bajat forged to carry arms and movement on behalf of the Council of Ministers of all employees of the organization's (572), and issued arrest warrants against them and inquiry in accordance with resolution 160 of 1983 (impersonating a character) were seized all the instruments and equipment used in the process of forgery and impounded.

He added that the organization had used modern cars similar to those used by the security agencies in their movements and have automatic weapons and modern Aistbaad that those totals involved in a lot of security incidents occur in Baghdad and other governorates

For today.

By NEDRA PICKLER, Associated Press Writer
9 minutes ago

WASHINGTON - President Bush is invoking the memory of the Sept. 11 victims killed five years ago to argue for a continued military campaign in Iraq before a skeptical American public, drawing protests from Democrats who say he has politicized a national day of mourning.

"If we do not defeat these enemies now, we will leave our children to face a Middle East overrun by terrorist states and radical dictators armed with nuclear weapons," Bush said. "We are in a war that will set the course for this new century and determine the destiny of millions across the world."

Whatever mistakes have been made in Iraq, the worst mistake would be to think that if we pulled out, the terrorists would leave us alone," Bush said from the Oval Office, with a photo of his twin daughters and the American flag behind him. "They will not leave us alone. They will follow us. The safety of America depends on the outcome of the battle in the streets of Baghdad."

"I am often asked why we are in Iraq when Saddam Hussein was not responsible for the 9/11 attacks," Bush said. "The answer is that the regime of Saddam Hussein was a clear threat.

"America did not ask for this war, and every American wishes it were over. So do I," Bush said. "But the war is not over, and it will not be over until either we or the extremists emerge victorious."

Although his administration has been criticized for trying to link Osama bin Laden to Baghdad, Bush made further comparisons between the al-Qaida leader and Iraq. The president quoted bin Laden as saying the battle in Iraq is the "Third World War" that could bring America's "defeat and disgrace forever."

"If we yield Iraq to men like bin Laden," Bush said, "our enemies will be emboldened, they will gain a new safe haven, and they will use Iraq's resources to fuel their extremist movement. We will not allow this to happen."

Bush delivered a message to bin Laden and other terrorists who are still on the run. "No matter how long it takes, America will find you, and we will bring you to justice," Bush said.

Bush uses 9-11 to argue for Iraq war - Yahoo! News

September 11, 2006

BAGHDAD - Iraqi Prime Minister Nuri al-Maliki will deliver a blunt message to fellow Shi'ite Islamists in Tehran on Tuesday that they should not interfere in Iraq's affairs.

It is a message that may please Maliki's sponsors in the United States, who accuse Iran of funding and training militants fighting US forces in Iraq, possibly in response to mounting US pressure on Tehran to halt its nuclear program.

Maliki's spokesman told Reuters Iraqis no longer wanted to suffer for "messages between the United States and Iran."

While officially encouraging Iraq's new, warm ties to Washington's adversary, there is unease in the United States at Iranian influence over the Shi'ite leaders brought to power in elections that followed the US overthrow of Saddam Hussein.

Since forming a national unity government four months ago, Maliki has vowed to curb militant Shi'ite factions, some of whom also have links with movements in Iran, as part of efforts to avert civil war with Saddam's once-dominant Sunni minority.

Stopping short of explicitly endorsing US accusations of Iranian "meddling" in Iraq, government spokesman Ali al-Dabbagh said on Monday: "We want to pass a message to the Iranian leaders that Iraq needs good relations with neighboring countries, without interference in our internal affairs."

Under Saddam's Sunni-dominated secular regime Iraq fought a bloody eight-year war with Iran in the 1980s.

US and British officials say high-powered explosives used against their troops in the past year have been supplied through Iran, though not necessarily with government approval.

Some leaders in Tehran are also close to the likes of radical, young cleric Moqtada al-Sadr, whose Mehdi Army militia is seen as particularly hostile to the occupying forces.

Saying Maliki would meet both President Mahmoud Ahmadinejad and Supreme Leader Ayatollah Ali Khamenei on his first official visit, Dabbagh told Reuters: "He wants to pass the message that Iraq needs stability, non-interference. If any country cannot play a positive role in Iraq they should not bring a negative."

Dabbagh said Baghdad saw Khamenei playing a key role in relations with Iraq and stressed security would top the agenda.

Mediation

Amid tension over Tehran's nuclear program, some analysts believe Iran sees fostering violence against the 145,000 US troops in Iraq as part of its leverage in negotiations.

Dabbagh would not be drawn on whether the Iraqi government believed that: "There is no official decision," he said.

But he added: "We understand that the violence in Iraq is being fed and financed by others. Some of them are countries, some are groups ... We'd like neighboring countries to share in stopping such things coming to Iraq."

Some Iraqi Shi'ite leaders have offered to mediate between Iran and Washington, which have not had diplomatic relations since Tehran's Islamic revolution in 1979.

Asked whether such mediation would feature in Maliki's talks, Dabbagh said: "Iraqis would like to see a normal relationship between the United States and Iran.

"This situation, we are paying for it in Iraq. Iraq has been used to pass messages between the United States and Iran. We want to avoid all tension."

Maliki's visit, first announced for Monday, follows trips to Arab states run by Sunni Muslims who view with suspicion Iraq's Shi'ite majority and its ties to non-Arab, Shi'ite Iran.

Should Iraq's sectarian conflict descend into all-out civil war, some analysts say other regional powers would be drawn in, with Iran backing the Shi'ites and the likes of Saudi Arabia and the Gulf states providing help to the insurgent Sunni minority.

The subsequent rise of the Shi'ite majority has brought to power in Iraq many leaders who spent long years in exile in Iran. Though Maliki was mostly based in Syria, many of those close to him in the Dawa party found refuge in Iran. Reuters

ABS-CBN Interactive
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Originally Posted by www.xealthy.com

Wasnt a MoF arrested for misappropriation (maybe that was not the term) along with some others.
Also, awhile back on a conference call involoving Dr. Q there was speculation as to whether or not Shabibi, of the CBI, would be a possible replacement given his education in finance.

marlene

Yes for starting the loping of zeros rumor.

Originally Posted by shotgunsusie

pdf on the cbi site.

Yes, this is my thinking as well. It is where it is listed now.