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

Originally Posted by readytogo

Tell me please! Are we talking about the same thing here? Exchange rate for dinars or is it all just tied in together?

I don't believe it has anything to do with Iraq..it's an IPO offering for the Dubai financial Exchange....here is the quote that spells it out:

"Earlier this year there were rumours in the financial services community that Dubai International Financial Exchange (DIFX) is planning to merge with DFM to create a larger exchange. However, both exchanges denied any such move. Currently, there are 39 stocks listed on DFM."



But Hey, Bagdad's looking good!!! Look at it this way: Increased security within Bagdad as well as getting in and out of the city...Hmm, a possible scenario is the reval is announced, and the banks are gonna get alot busier, and anyone contemplating a heist ain't gonna get far, JMHO

Originally Posted by shotgunsusie

(security was to be beefed up for announcement as they were expecting some uproar, hmmm.)

Was there a link for this. I would like to read it.

Thanks

Originally Posted by Elfwizard

Was there a link for this. I would like to read it.

Thanks

But not the article yet.

IRAQTV.COM

There was an important news article IMO posted at IIF by Scuba Diver in the speculation forum under the heading Shotgun Susie could be right. I don' think I saw it posted here-It came from Al-MADA Daily news paper. I don't know how to transfer news articles or get translations.I think its a good read if someone could retrieve it.

Global economy ‘resilient but inflation threat looms’ - Middle East Business news related to travel, food, hotel, real estate, health, oil and more

Global economy ‘resilient but inflation threat looms’
Posted: Thursday, September 14, 2006
Singapore
The world economy is headed for its strongest expansion for three decades but simmering inflation, high oil prices, a US economic slowdown and rising interest rates pose growing dangers, the IMF said.

In its twice-yearly World Economic Outlook, the IMF lifted its 2006 forecast for global growth to 5.1 per cent from an April forecast of 4.9 per cent and predicted 4.9 percent growth in 2007 versus a previous projection of 4.7 per cent.

There is a one in six chance that global growth could fall to 3.25 per cent or less in 2007, the IMF said.

If the forecast in 2006 materialises, it will be the fourth straight year global growth has topped 4 per cent, underpinned by robust emerging economies, especially in China and India.

'Growth has been maintained in the face of headwinds such as soaring commodity prices,' IMF chief economist Raghuram Rajan told a news conference to discuss the outlook.

He said as inflationary pressures built up and a slowdown in US housing started, it was appropriate that the US Federal reserve had halted a two-year string of interes rate hikes in August.

However, pausing too long while inflationary pressures and unit labour costs rose was risky, he added.

'The Fed may soon be on the horns of a dilemma and monetary policy will need to be skilfully managed if the economy is not to be gored,' Rajan said.

The IMF said a growing peril was that the US housing market could cool more abruptly.

'The forecasts for a housing slowdown are well and truly here, with house price appreciation close to zero by most metrics,' Rajan said.

'Importantly, the slowdown in housing has yet to translate into significantly lower consumption,' he said.

The fund estimated the US economy would grow 3.4 per cent in 2006 but it revised down its previous forecast for 2007 growth by 0.4 percentage point to 2.9 per cent.

In the euro area, growth is likely to pick up in 2006 and then moderate next year, while in Japan the economy should continue to expand, the IMF said.

In emerging Asia, the IMF said the outlook was for continued strong growth of 8.3 per cent in 2006-07 -- half a percentage point higher than projected in April.

The IMF said near-term risks to the outlook for Asia were broadly balanced but it said there was a possibility of even faster growth than projected in China and India.

The IMF voiced mild concern about the possibility of a disorderly unwinding of global economic imbalances.

'A smooth, market-led unwinding of these imbalances is the most likely outcome, although investors would need to continue increasing the share of US assets in their portfolios for many years to allow this to happen,' it said.

Later Rajan said the IMF's language on global imbalance concerns had changed slightly but it did not mean the fund was less concerned.

'The risk of an abrupt unwinding is not in our view a very high probability event but it is a very costly event if it occurs,' Rajan said.

It said the depth and sophistication of US markets had allowed large trade imbalances to be financed. But there was a risk of a disorderly adjustment, which could impose heavy costs on the global economy, it added.

The IMF has previously warned that if imbalances unwound quickly and in a disorderly way, it could force an adjustment in the US dollar.

The fund said the dollar's recent decline appeared to reflect expectations that US economic growth would moderate and that the dollar's interest rate premium over other currencies would probably narrow.

In real effective terms, the US dollar is now close to its average level since 1980, while the euro is somewhat above its long-run average and the yen somewhat below, the IMF said.

A spell of emerging market turmoil in May and June would not seriously affect the global economy, although growth in some countries such as Turkey may have been dampened, the fund said, 'For the most part, asset price declines seem to have represented corrections after major run-ups rather than a fundamental reassessment of economic risks,' it added.

Originally Posted by Mike5200

There was an important news article IMO posted at IIF by Scuba Diver in the speculation forum under the heading Shotgun Susie could be right. I don' think I saw it posted here-It came from Al-MADA Daily news paper. I don't know how to transfer news articles or get translations.I think its a good read if someone could retrieve it.

The facts on the table long table inflationary situation. Current trends of inflation in Iraq

...a continuing decline in the production of goods and services sector, which generates inflationary pressures, including the doubling of international pressure The real exchange rate according to the economic impact alias Effect Blassa - Samulson

the way to confront the current state of inflation is achieved via one of the constants derived from maximize the purchasing power of the Iraqi dinar through oil revenues linked to a basket of Tautness instead of the current economic situation.

And to achieve the desired economic stability must be done through a single and stable equivalent to the value of Numeraire It is the Iraqi dinar and their importance in building the value of the monetary unit at the Iraqi foreign currency.

As experience has shown exercised by monetary policy in the past few years in the use of means to achieve stability and the successes that came across a number of forms of auctions that would be built by the Central Bank of Iraq and where a circulation of various financial assets to control the levels of cash and to achieve stability and the reduction of inflation.

However, the foreign currency auction, which comes on top of those auctions, The unit has become ineffective and the ability to absorb the currency bloc export rate one and a half times during the year one without affecting the international reserves of Iraq.

This means that there is a strong control on the growth of cash flow and calming of inflationary pressures through the activities of the exchange market and the central role in the inflation targeting.
Inflation comes from the expansion of the money supply

Of the above, the answer to that adding, in addressing inflation through the strengthening of the exchange rate of the Iraqi dinar, after taking into account the fact that inflation and sustain in the long term (regardless of the sources, and causes in the short term, especially staying supply sector Supply shocks That Noakpha now), exporters in the end growth and the expansion of the money supply and reducing inflation to ايتم only through control of monetary phenomenon and the stability of monetary growth rates in such a way as to achieve the economic stability that is the responsibility of the monetary policy also says Melten Friedman. but such superfluous to address inflation by raising the value of the Iraqi dinar in the market the exchange would have to take into account the following :

The precarious nature of the demand for money through foreign currency hedging individuals promised last buffer stable value and appropriate means to protect their wealth, led Economic Iraqi society to adopt habits coffers and Aktnazih variety of wealth comes in the forefront of the high level of hedging foreign currency, which strengthened from the dollarization phenomenon Dollarization Various trends.
It is well known that the so-called shift to targeting the money supply to inflation targeting itself by targeting an exchange rate. the result was based on fundamental factors function of the nature of the monetary demand and the factors affecting the availability and foremost a commensurate level of economic activity and price to make money-to-income ratio to grow in a stable and consistent financial growth and macroeconomic stability.


Therefore, the targeting of inflation by targeting the exchange rate Targeting Foreign Exchange Even in the framework of the program announced for monetary policy means that the nominal area currently approved Nominal Anchor Changed from one level to another level and will have an impact two-way :

The first is that expectations rationality to the public will be affected immediately by the growing degree of replacement of the dinar to the dollar in order to avoid any possible losses Prince Windfull Losses And the other is the exchange rate system would be a more flexible system of its current and would work towards the gradual rise in the interest of the Iraqi dinar Flexible upward.

The risk of public panic Panic Abandon the assets of foreign currency immediately in the interest of the Iraqi dinar and retain the dollar as marginal, I mean that there was a state of panic anti-dollarizing Dedollarization In the interest of the dinar Dinarization. Although such behavior will monetary policy before the forestry sudden growth in the money supply due to the rapid replacement or replacement cash referred to above which is the opposite direction will be to achieve the goal of stability, particularly in the short or medium-sized generators cash inflationary pressures may ease of the resistance. concurrently, the strong rise in the demand for cash in Iraqi dinars.

Finally, in order to preserve the economic welfare of the community through the availability of a stable monetary, as well as the importance of preserving the wealth of public knowledge of foreign assets and the protection of different and maximized their contracts to match the objective of raising the rate of the Iraqi dinar, reducing inflation, require the availability of additional tools and the means of monetary policy is essential in providing the necessary precaution to the public and lend at the same time stable demand function cash and avoid any losses to individuals obtain surprises arising from the adverse change in the pattern and the objectives of monetary policy and the transformation of the Iraqi economy, the uncertainty in a phenomenon inflationary dead the origin and details of its components to provide a stable economic climate of optimism and prosperity and growth are more evident in accordance with the requirements of the next stage.

Translated version of http://almadapaper.com/sub/09-767/p19.htm

Hey guys,

Saw this in IIF. Good news for us if it is correct. Wish I had a link for it. Seems to be a new bill passed in 2003 to promote investing in Iraq! Hope it covers us! What do you think?


Posted by pimpmaximus:

The 2003 Tax Bill provision signed into law by President Bush gradually reduces the tax liabilities incurred by investors. This year its still 10% on long term capital gains. Next year its 5%, and in 2008, it will be 0%. So by default, everyone who has bought Dinar before today will fall into that category in 2008 (long term refers to holdings of over a year).

Bad news is that unless the law is renewed, the rates reset in 2009, back to 20% long term I believe. But that still gives you an entire year to reap rewards.

Many have speculated that this law was devised to coincide with a timeframe when many people will be able to cash out of a certain investment. I'll let you guess which one..........

Gotta apologize Howler, it is 15% this year, thats for folks in the 25% or higher bracket. For folks in the 15% or lower bracket it's 5%. Quite late here........

Originally Posted by neno

But not the article yet.

IRAQTV.COM

Did you watch it also? Says I have to pay. Who cuaght this live?

Thanks

Originally Posted by Elfwizard

Did you watch it also? Says I have to pay. Who cuaght this live?

Thanks

NO. I didn't. Got tied up with my Pool Man. Sorry. I was just trying to help find where she got that from. Didn't realise you had to pay until now. I got Satalite, I will check to see if I can find something.

Btw, Looks Nice Marek. I like the New Look!!!!

Invest in Iraqi

US envoy to Iraq urges Americans to invest in Kurdistan - Yahoo! News



The news just keeps getting better and better!!!!