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

They're giving themselves worthless currency which one day soon wo't be worthless currency. Like top dogs in big companies allow themselves shares in that company, kinda like an incentive. They will always look after themselves these guys, and it looks like they have done. They know full well the dinar will have a REAL value within the next 3 months, they're not stupid.

Originally Posted by pistons

I may be way off in my thinking but, it says "their salaries deducted monthly installments over 36 months". If the dinar was to RV this month, and their salaries adjusted accordingly, how could they possibly repay the loan with deductions from their salary? They would probably not be making 20 million dinars over a 3 year period. I hope I'm missing something.

could be the article was translated wrong.

Originally Posted by CharmedPiper

This is just a guess...but could it be that by securing the loan before the reval and documented that it was taken out before the reval, this would "lock" them in at the current rate at the time. Then when the reval occurs (hopefully tomorrow) that 20 million bumps up to the new value. So their 20 million is actually far more than 20 million. Just like our 1 million dinar we paid $740 for becomes 1 million plus. This is just a guess and sorry if once it is picked apart it makes no sense what-so-ever but my head is swimming, anxiety is through the roof, and anticipation is about to kill me....so it may be an illogical guess....anyway I gave it a shot. Hang in there everybody I feel a big reval in a few hours....(just a hunch!)...

That's kinda what I was thinking initially, but then I started to wonder: In Iraq - 20M Dinar today would still be 20M Dinar tomorrow - Even if a reval happened tonight. I don't believe they deal with currency exchange like we do. Maybe I'm totally off-base, but that's just my opinion...

Of course, I'm not going to dwell over this issue, because I don't have the brain-power to do so. All I know is what the article said: These folks asked for a 20M Dinar loan - That means they want that money for something - That, to me, means they have faith in their currency, and that's really all I need.

Originally Posted by shotgunsusie

"""""11"""""

SGS does that "11" also go for a reval tomorrow 9/28....!!!! Come on give us your opinion.... GO SGS!

Originally Posted by CharmedPiper

This is just a guess...but could it be that by securing the loan before the reval and documented that it was taken out before the reval, this would "lock" them in at the current rate at the time. Then when the reval occurs (hopefully tomorrow) that 20 million bumps up to the new value. So their 20 million is actually far more than 20 million. Just like our 1 million dinar we paid $740 for becomes 1 million plus. This is just a guess and sorry if once it is picked apart it makes no sense what-so-ever but my head is swimming, anxiety is through the roof, and anticipation is about to kill me....so it may be an illogical guess....anyway I gave it a shot. Hang in there everybody I feel a big reval in a few hours....(just a hunch!)...

I think you are SOOOOO CORRECT. It sounds good to me!!!

Many piece are starting to come into play RV SOOONNNN

Originally Posted by MrsCK

This is the link

Here is what it says:

Director of the Exchange Market: the people are in need of a direct edification in Stocks Investment Director of Iraqi Exchange Market: Iraqis are in need of a direct edification in stocks investment
26 September 2006 (Al-Sharq al-Awsat)

Commissioned Director of Iraqi exchange market, Taha Ahmad AbdulSalam, confirmed that Iraqi public has lately participated in the prosperity of the circulated stocks’ prices in the market in spite of the fact that most participants entered it without having the slightest experience.

Taha said that there are several reasons for not circulating some companies’ stocks which are involved in selling and buying processes some of the companies are busy with their general boards’ meetings while others are prevented from circulating.

The last reason is the investor himself; most capital owners think that the best way of investing is to buy stocks and keep them. That is, they do not speculate them because either they are afraid to do so or they have no knowledge and experience in this kind of investment. That is why a large rate of some companies’ stocks is not circulated in the market. Taha confirmed that Iraqi exchange market planned, since its foundation, to educate the investor and whoever wants to enter the market through issuing regular publications about the market and the mechanisms of speculation. There is also the internet service which gives its visitor the access to inquire about almost anything. In addition, to thorough lessons about stocks and the exchange market.

Taha stated that electronic circulation, starting soon, will increase the range of circulation to include the rest of the provinces through agents who will be assigned to manage the speculation process in each province.

About the late revival of the circulated stocks’ prices, he explained that the rate of the increase in prices reached (5.2%) and it is a good one. What is more important is that the market maintained this raise. Taha anticipated that as soon as the electronic circulation begins, it will increase this rate even more and this will certainly revive the Iraqi stocks’ market. There is also the successful works of the participant companies which will eventually be reflected on the circulation prices of their stocks in the market.



My question: is this good or bad?

Implementing electronic circulation is GOOD.

When I was in Iraq in 2004 and the ISX was just starting, they were in a bombed-out restaurant running the exchange on dry-erase boards.

The implementation of electronic circulation does several things: Iraqi's outside of Baghdad can invest easily without having to go to arguably the most dangerous area of the country in order to invest directly.

Yes, I know it's developed since then and other banks have electronic access, but by and large the banking system was as rampant with corruption as the govt, so the major form of 'banking' is the mattress. Another form of 'banking' and transfer of funds is a convoluted very complex mattress-system of cash only network outside the banking system. I can't explain it - would have to research back, but I came across it back then (not long after 9/11) as the explanation as to why it was so difficult for us to track the funding of terrorist organizations - so much is handled in cash/transferred manually (carried by 'mules')/held by trusted individuals instead of banks. Anyway, giving access to the ISX to the individual does several things - they have to deposit their money into a conventional account to participate (which in turn will get those $25,000 notes out of circulation). Also gives them the opportunity to invest in Iraq (motivation not to cut & run with their revalued cash). The money getting dumped into the ISX will increase the demand, driving up the value of the ISX.

In general, the electronic circulation is yet another tool to help stimulate their economy.

Other fallout: as the individual investor reaps the rewards, he will want that computer access in his home instead of the neighborhood internet cafe. He'll need more reliable electricity in order to use that computer, but he'll be able to pay his electric bill in turn, that will then go back into the infrastructure rebuild. And so on.

Originally Posted by WebGuy75903

That's kinda what I was thinking initially, but then I started to wonder: In Iraq - 20M Dinar today would still be 20M Dinar tomorrow - Even if a reval happened tonight. I don't believe they deal with currency exchange like we do. Maybe I'm totally off-base, but that's just my opinion...

Of course, I'm not going to dwell over this issue, because I don't have the brain-power to do so. All I know is what the article said: These folks asked for a 20M Dinar loan - That means they want that money for something - That, to me, means they have faith in their currency, and that's really all I need.

As archangel said, it could be a translation issue. Suppose instead of a 20 million Dinar "handout" it is a 20 million Dinar line of credit...Then when the Dinar revals, the line of credit could be altered to reflect the new exchange rate and prevent the "holder" of the line of credit from getting into a situation where they can not repay. Just a thought...

It's a 20 million dinar loan repayable over 36 months....

Originally Posted by pistons

I may be way off in my thinking but, it says "their salaries deducted monthly installments over 36 months". If the dinar was to RV this month, and their salaries adjusted accordingly, how could they possibly repay the loan with deductions from their salary? They would probably not be making 20 million dinars over a 3 year period. I hope I'm missing something.

I may be wrong, but it seems to me I remember reading somewhere that the Iraqi politicians are paid a salary of $5,000 USD per month. If the loan is established at today's exchange rate 20,000,000 NID would be (as someone earlier posted) about $13,500 USD. So, if they are to repay the original loan by way of deductions from their USD salaries, then the loan side of this deal will not be affected by a reval. However, on the other side of the deal, the buying power of that extra 20,000,000 NID in their hands would increase substantially on a reval.

This make sense? Or is my memory off here as far as their salaries being set in USD?

Maybe the loan was for the equivlant of 20 million dinar in USD so they repay the usd but recieve 20 million dinar instead....? Just a though.