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

Originally Posted by worf

I find my self woefully unemployed and broke (except for dinars). I can't understand what is taking them so longer either. Come on "Wacky Iraqis" revale already!!!! :) The worf family has some overdue bills to pay!!!

worf

Dont know whether you wer UE before or after this opport. but, nothing is a coincidence, were you have been has brought you to where you are.
I have my own business infact 2. Sometimes it is still a struggle. Soon we will be struggling NO MORE!

When you get to the end of your rope - tie a knot and hang on it!

By Parisa Hafezi
6 minutes ago

Iran offered on Tuesday to help establish security and stability in Iraq after Iraqi Prime Minister Nuri al-Maliki held talks in Tehran on his first official visit to the Islamic Republic.

Maliki's aides said he would tell fellow Shi'ite Islamist leaders in Iran that Tehran should not interfere in Iraqi affairs, a message likely to please Washington which accuses Iran of backing militants fighting U.S. troops in Iraq.

But Maliki and Iranian President Mahmoud Ahmadinejad gave few details about their talks on Tuesday, except to say that the two neighbors which fought a bloody war in the 1980s had agreed to cooperate in political, economic and security fields.

"We will give our full assistance to the Iraqi government to establish security in (Iraq). Strengthening security in Iraq means strengthening security and stability in the region," Ahmadinejad told a joint news conference after their meeting.

Maliki's visit follows trips to Arab states run by Sunni Muslims who view with suspicion Iraq's Shi'ite majority and its ties to its larger non-Arab, Shi'ite neighbor Iran, which gave refuge to many of Iraq's new leaders when they fled Saddam.

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 U.S. general in charge of Iraq's biggest province, Anbar in the western desert, denied his troops had lost control of it to local Sunni rebels, challenging the characterization of a Marine intelligence report leaked to U.S. newspapers this week.

Economic Motives : privatization in developing countries

Muhannad Hamid spring
Not just economic terms is transient and intellectual luxury. or to simulate the experiences of others and tradition, but they represent a package of economic action aimed to meet the conditions of the list laden with problems and dilemmas and major national, addressing imbalances accumulated in the macroeconomic And between economic sectors on the basis of coherent, Therefore, the main task is reflected in the restructuring of the course of economic developments and competing on the basis of a balanced confer on the present and future character of clarity and direction supports integrative and delineate measures and actions required under the process of gradual steps, according to the prospects of limited features.
The phenomenon of privatization (the focus of economic activity, however, the private sector rather than the public sector), one of the most important cases of economic reforms that have emerged in recent decades of the 20th century, as the summit in achieving economic freedoms in the world. Whether privatization stems from the conviction expressed by the national political organizations and professional or is it imposed or dictated to by outsiders, it is the most common method for the transition from a planned economy to a free economy.
Translated version of http://www.alsabaah.com/

full story under "Economic" third down today

By Mariam Karouny

VIENNA, Sept 12 (Reuters) - Iraq and Iran plan to develop oilfields that straddle their border and Iraq will pump crude to its neighbour's refineries, deepening commercial ties between the two oil producers, Iraq's oil minister said on Tuesday.

Iraqi Oil Minister Hussain al-Shahristani told Reuters in an interview that an agreement between Iraq and Iran will be signed in a few months after technicians mark out the common oilfields.

The deal, first explored by Iran and Iraq in the 1970s, entails both countries defining their reserves in the cross-border field and then pumping the crude jointly.

"We have already agreed to the unitisation principles. As soon as the technical people meet and mark the shared field

(with Iran) then we will sign the agreement," he said.

Shahristani said Iraq would forge similar deals involving oilfields straddling borders with Syria and Kuwait.

The impending deal comes as Iraq's Prime Minister Nuri al-Maliki visits Tehran for the first time since he came to office five months ago.

After the Iran deal is struck, Shahristani said the two countries would build a pipeline to carry Iraqi crude to Iran's southern refineries.

"The Iranians said they are even ready to take all their needs for the Abadan refinery from us which is about half a million (barrels a day)," he said. "They want to buy it according to the market price."

Iranian companies were prepared to build the pipeline in as little as nine months, he said.

Shahristani said Iran also wanted to secure 100,000 bpd of Kirkuk crude from Iraq's north and more than 100,000 bpd of additional Basra Light crude in the future. Under a deal agreed in August, Iraq will receive refined products in return.

The two predominantly Shi'ite Muslim countries have been looking to strengthen ties, prompting concern among Iraq's once dominant Sunni minority and other Arab states, as well as in the United States, which has 145,000 troops in Iraq.

Washington, which considers Iran part of an "axis of evil", accuses Tehran of meddling in Iraq.

INTERNATIONAL OIL FIRMS

Shahristani, in Vienna for a meeting of the Organization of Petroleum Exports Countries, was also briefing international oil companies about the latest developments in his country.

He said Iraq would enter into serious talks with them when parliament passed a new hydrocarbon law to regulate investment. This is expected by year-end.

"Most of the international companies, all of them, are seriously interested in working in Iraq and we welcome them," the minister said. "As soon as the hydrocarbon law passes parliament we will begin serious discussions with them and I don't expect they will take a long time."

Iraq needs to attract investment to develop its oilfields and increase production. Big oil firms are waiting until the new investment code is in place before pumping cash into Iraq's giant and largely underdeveloped oilfields.

Shahristani said central government was encouraging the regions to attract investment but policymakers were still debating whether they would be able to sign deals.

"We have agreed that the contracts must be approved by a federal authority," he added.

http://today.reuters.com/news/articl...1-ArticlePage2

hopefully the cooperation between the two countries will help curb some of the extremist actions that are taking place there. If its suspected that Iran has a hand in the violence and there now working with Iraq to produce Oil. it would stand to reason that some of the sabotage that has been taken place may go down as well as both countries have a vested intrest in the production of oil

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?
ISX-Data.com / The Unique Situation of the Iraqi Dinar

Excellent post,

This is exactly what some of us have be reporting for months, and this was the best compilation I have read in a long time, so it is nice to see the truth posted here for all to see in easy to understand language.

Good luck to all, Mike

People on other boards I read have been bringing up this article as well. The problem with this write up is, The CBI does not auction of dinars. The CBI Auctions off dollars. They are actually depleating there reserves, Or growing them very slowly.


The
Ministry of Finance sells dollars from its oil receipts to the CBI, purchasing dinars to pay
for government operations. The CBI then sells some of those dollars in the daily foreign
exchange auctions. Transactions at this auction were typically $10-$15 million a day by
the end of March 2004.

http://www.bos.frb.org/economic/ppdp/2004/ppdp0401.pdf

I am still very Positive with this investment don't get me wrong.




The CBI currently has the following active and passive instruments that affect market liquidity (base money): • Foreign exchange auctions, in which the CBI buys or sells dollars to the market in light of its policy objectives; • A reserve requirement regulation that requires banks to hold in relation to their customers deposits: differentiated levels of deposits with the CBI, vault cash, and MOF securities. • An Overdraft Facility, for banks with reserve account balances at the CBI that are not sufficient to settle their net end of day payment obligations; • A Discount Window for bills of exchange and similar bank paper with a maturity of less than 90 days and at least two endorsements (currently charging 11% for good quality paper); • Lender of Last Resort Facility, which provides individually negotiated loans against collateral, for banks with chronic liquidity problems; • MOF securities Window, at which banks may buy or sell MOF securities at par (i.e. at issued interest rate).

http://www.cbiraq.org/monetary%20policy_EN.pdf


Iraq-Currency
Dollar demand sharply up in Iraqi central bank daily auction
Baghdad, Sept 3, (VOI) – Demand for dollars jumped more than $10 million at the Iraqi Central Bank daily auction on Sunday to $61.150 million compared to $51 million on Thursday.
The bank said in its daily statement it covered all bids which were $36.490 million in cash and $24.660 million in foreign transfers.
A total of 16 banks participated in the auction but none offered to sell dollars, the statement said.
The dollar exchange rate was 1,477 dinars, unchanged from last session.

Originally Posted by Elfwizard

People on other boards I read have been bringing up this article as well. The problem with this write up is, The CBI does not auction of dinars. The CBI Auctions off dollars. They are actually depleating there reserves, Or growing them very slowly.......

Thanks. This has been a source of a lot of misunderstanding and it is great to have a clear discription of what is really happening.

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.

i repeat: AUCTIONING FOREIGN CURRENCIES ETC. FOR NEW DINARS.
NEARLY HALF OF IT'S DAILY AUCTION OF DINARS

Originally Posted by shotgunsusie

i repeat: AUCTIONING FOREIGN CURRENCIES ETC. FOR NEW DINARS.
NEARLY HALF OF IT'S DAILY AUCTION OF DINARS

is that from the CBI pdf ?