In Light of New Article.....

[dinartank]

Iraqi dinar continues gains against the dollar


Central Bank raises quantities of the American currency lower than market price



Exploits the Iraqi market long holidays, stopping auction currency official at the Central Bank of Iraq to restore its control of the currency exchange market and to complete all dealings according to exchange rates similar to those that were adopted before the start of bank's plan to strengthen the value of the dinar against the dollar, which had greatly affected the transactions commercial for the local market, in the best season, which precedes the holidays.
After the dollar exchange rate 1221 1214 dinars / dollar, which forced the market to match the prices of the bank managing the descent towards the dollar value against the dinar, and this policy will not stop at this one roof by workers in the auction exchange, but will raise the value of the dinar in the next few days to levels much higher than the current But gradually, in order to prevent fluctuations in the domestic market, which depends primarily in dealings in the dollar.
The Iraqi dinar has become a cover well and it was time to return to the previous value, and that this step aims to improve the standard of living of the Iraqi people and increase real incomes Most salaries in Iraqi dinars are also keen to make the government State budget also dinars, and this will reduce the size of the costs of projects and heading to the Government, which believes the dollar will be cheaper when the conversion.
However, the central bank denied, in a statement that some rumors to the effect by making the dollar value equal to 1000 Iraqi dinars, or less than current market prices by 22 points, and stressed the bank ceased operations after purchase through auction, and he is watching with great interest the phenomenon of low demand for the dollar in In the local exchange markets under a wave of rumors inaccurate So the dollar standing at the roof of a specific increase or decrease or even change categories currency lifting zeroes or other stressing that some promotes such rumors for commercial gain emergency is in the pockets of beneficiaries at the expense of the public campaign of foreign currency especially small savers.
He assured that the Central Bank monetary policy designed to improve the current exchange rate of the Iraqi dinar, which comes in the framework of economic policy for the country and the fight against inflation and economic stability and boost growth and the development of economic activity in the right context and harmonious away from imbalances or harmful speculation based on incorrect information base objective providing a favourable climate encouraging exploitation and speculation interests of the public at the same time stressing that the exchange rate is currently approved stable at the current level and not in any change will lead to adverse surprises audience and that any bank is ready to buy dollars from customers through increased daily rates and stable, according to policies adopted to him. He criticized the Shiite Mohamed Al Yacoubi such policies which seek to achieve the bank said in a statement yesterday, Thursday, «that there is an apparent contradiction between the financial policies supervised by the Ministry of Finance and monetary policies administered by the Central Bank, the former led to the rise in inflation and the second worked to promote exchange rates dinar against the dollar and suddenly have caused unusual volatility led to a great loss to many people and the accession of other segments to the poor class.

He said the Office of the sun banking, Abdul-Rahman al-Shamri told «Middle East» that the Iraqi market boomed and the short period of time during the holidays and vacation days previous, but has stopped deteriorating for three days for fear of the central bank put another dollar amounts below with the highest rates market, and here will be double the losses this time it has been forced to sell the dollar before the holidays when he arrived at the exchange rate 1106 1226 1220 1114, and concerned that look for the quick losses suffered by the commercial sector during the period of two weeks, as well as loss Mdechri hard currency. Auction the past two days witnessed a great recession in the demand for dollar buying banks participated in a few speculative operations all refrained from buying because of a currency by the bank at a lower price than the market and this is not in the interest of customers because the local market would be forced to change their prices according to the price of the auction and possibly lower than when buying from public, although the bank was able to sell 12 million and 800 thousand dollars at 1214 dinars / dollars, and also entered the purchaser as it purchased $ 390 million and A $ same price but adopted in the last sale price in cash sold 1226 dinars bought with less than deducting commission dinars one for every dollar sold or buyer.

Finance Minister Jabr Iraqi statement said Zubaidi told media recently that Iraq now has more than $ 21 billion and a huge quantity of gold to support the Iraqi currency, and the Iraqi dinar today is much better than some currencies because behind large amounts of gold and hard currency, stressing the Meanwhile, some zeroes on the lifting of the Iraqi currency, he made this proposal after assuming office in the Ministry of the Week and presented this proposal to officials in monetary policy at the Central Bank and then the central bank reluctant to accept this idea, but it became a strong dinar against the dollar ( 1250) after the (1400) I heard «that the Central Bank will meet to discuss the lifting of the three zeroes are positive atmosphere within the bank to accept this idea».

For his part, the bank denied the existence of such intentions and that the currently existing currency is adopted will remain in local dealings, but in the intention to withdraw all of coins from circulation and replaced but the same categories of paper and include the categories (25,50,100) dinars.

http://72.14.203.104/translate_c?hl=...px%3Fid%3D5223
I saw this article what do you guys think. I post here cause it seems this is the only place people look at,

[dinartank]

Now this in sense suggest to me they will not lop and this would be a 2nd conformation that the coins 25 and 100 dinar will be turned in and redistributed in paper notes of 25 and 100 dinar bills. Where they mention it is in the last line of doing so in the above article. "For his part, the bank denied the existence of such intentions and that the currently existing currency is adopted will remain in local dealings, but in the intention to withdraw all of coins from circulation and replaced but the same categories of paper and include the categories (25,50,100) dinars." Boy this are getting interesting. However with this said this comes from the iraqdirectory.com and they are always a week behind or two on recent news that i have seen before in the past. There was an article a week back stating that they would replace all coins with paper note. Now with that said does this not sugest a lop?? I mean why would they lop if they are going through the hassle of printing lower denoms or if they are already printed a while back now read to release. I know this forum dosen't get a lot of discussion but it would be nice to hear from some of you. OSW I'd like to hear from you..... as well as Mr. Knowells if your out there. Also Ive asked this before. IS there any currency that has depreciated overnight like the IQD and you can even factor in an issuance of new currency but later without a loop. Is this a unique situation or could it be as there policy isn't leaning twards it IMO?? That a currency fell off the cliff and was nothing the next day and later down the road a new currency was introduced and then later WITH OUT A LOOP? I know there was the german mark that happened during the world war but it was turned in and a new currency was introduced and it was not given 1-1 as a variation occured, but I forget the ratio what was given for an old mark for a new one. There was profit in it that was made off that venture from what I have read in the past but it wasnt 10,000 or 100,000 percent made. Im just looking to see how unique the iraqi currency situation is. Has a currency devalued like this...as I have not heard of this before with out a loop Ex Turkey, Afganistan. This article listed above dose not suggest a loop to me. Would be interesting to hear your thought and if anyone can explain this situation or disprove or prove a currency devaluation then a loop . Tank

[dinartank]

117 views not 1 reply thanks guys now I know why I don't post as much on this forum. Nobody wants to contribute this was a hot topic at another place and great news confirming a rise in the dinar as the article states and the removing of coins and bring bills to replace them. This is HUGE news. but i guess nobody cares or gives a rats a@$.

[livefree]

Almost closing out 2007 does anyone think the rate will soon move to one US dollar per 1000 Iraqi dinar as has been mentioned several times this year?

[Offshore-Wealth.com]

Interesting,

I was wondering the same thing when the news of removing current coinage from street, this doesn't seem to register with most, but this is what shook the street in Iraq a few weeks ago when this very news leaked out, so the street is not usually wrong in Iraq. When you go back over the years, there has never been a rumor on the street that was baseless, in fact, we heard very few rumors overall from Iraq, it was always from speculators or on forums, but never from Iraq streets.

It has been quiet other than the first denial over revalue when the rates on the street spiked, and now we hear that coinage is being replaced, and to me, it is just one more piece of the puzzle. Yes, there has been talk on the street about restoring the value of dinar, and rarely as wide spread as it was a few weeks back, so this is news. Even with gov. and CBI denials, you can't ignore that this was unusual, and since we already know the gov. and CBI have never been right with anything they have ever announced, makes you wonder what is going on. lol

Common sense indicates there would be no reason to pull coins off market when they are the lowest denoms at present. Certainly, a lop is not going to benefit from this move, so as most of us know, this is just not going to happen if you have been following it for years like most here have. Now think about this, replacing these coins with paper sets the stage for a restoration in value in my opinion. How else could they accomplish this than to start with smallest denoms, makes complete sense as this is the currency that is used the most by the street. Most do not have 10K and 25K notes in their pockets, so these will certainly be less important in first phase, in fact, they will simply be phased out slowly over time, so ignore these for now.

OK, so we hear this will be completed in Jan., again, why only a month? This too is unusual time frame, so again, makes you wonder what is going on. If they remove coins, they have to replace it with something, and I think we can all agree it won't be 10K and 25K coins. lol So what will we see? Iraqi's are all conditioned on using coins, so we know ther will be lower currencies, it is the only logical strategy to prepare for a restoration to former value, or revalue, if you will, so I like what we are finally seeing, something, rather than nothing, now that is different. lol

I am looking forward to a great 2008, how about everyone else? (g)

Happy, Healthy and Wealthy New Year to all,

[YogiBrood]

for that "re" valued viewpoint.... Mike

Pre 2008 has already begun since the turn of the summer and I look very much for 2008 too...

At least, that is what the Chinese astronomy had speculated pretty good and well so far with FengShui added to the surroundings ....

[Seaview]

Posted from Mr I from Warka Bank

Dear Warka Investors,

I would like bring to your kind attention that 25 and 100 Dinar coins will be removed from circulation on the 31st of January 2008.

Best regards,

Mr. I
Deputy Managing Director
International Affairs

follow up from Mr I........

"The coins will be replaced with the current denominations. No plan to print any new notes!"

[dinartank]

Thats good news to hear even though a few weeks back we were all hearing the 3rd or 4th of January and now we have a bank conformation of the 31st. This is HUGE news cause here will come the smaller denoms. They have to have them cause if a person were to bring in 525 dinar in coins they cold give him all 50 notes but what about the left over 25 dinar??? there has to be a bill to replace it. Thanks Seaview for the post

[benzboy]

Buddy I have been away for a few days and did not get to read your article til just now. Please dont be all bitter table for one! what you say is huge. I have been hearing through other friends on other forums, that they feel this is the month for the lower denom's to be issued and then...... All body are crossed here and thankyu for your effort and your great post, if I had an hour to myself and a uterus, I would bare you a child LOL
benzboy

[dinartank]

Buddy I have been away for a few days and did not get to read your article til just now. Please dont be all bitter table for one! what you say is huge. I have been hearing through other friends on other forums, that they feel this is the month for the lower denom's to be issued and then...... All body are crossed here and thankyu for your effort and your great post, if I had an hour to myself and a uterus, I would bare you a child LOL
benzboy

While I have been believing the same that its very possible the lower denoms are to come out this month is so huge! I just wish the forum here was more populated and or willing, wishing to share thoughts here as there used to be a lot of great minds with great thoughts and opinions, however in my searches on other forums I have heard no conformation of this new Email out from Mr.I from Warka??? Seaview where did you get this from??? Did you get this email personally?? I hear that warka communication is down and has been very slow. If this email sent out is true than its huge if not its a pump with hype, which I hate and despise. I hate when folks make up BS just to get there jollies or create some attention. By no means seaview am Im saying you created this or are wanting to post false info as I apprecaite what you posted...thank you so much...as a moderator I respect ..just wanna know if this first hand or some 2nd hand info/rumor thats floating around. Tank