Rv Very Soon!!!!

This E-mail came to me this morning, it is from the people that hold the conference call. There is alot of good info here, take it with a grain of salt. Alot say that everything they talk about is all BS. But isnt everything in these forums speculation from infomation that we gather.

RV VERY SOON

please post your thoughts and any other info


our Ompus / Fr**D***** Members,



As many of you know we haven’t bought any Dinar since we stopped our sales. That was on October 17th, so other than rumors of Dinar being harder for other dealers to get we really didn’t have any first hand knowledge. However over the last few days we have found that the cost of Dinar has risen and has become harder to get.



The question you have to ask yourself is why? The answer is what we have been waiting for. The Dinar revaluation is upon us! But don’t take our word for it; take a look for yourself…



On November 13th, the Central Bank of Iraq issued a statement regarding increasing the value of the Dinar. An official source with the CBI said, “…the Iraqi Central Bank will adopt a tight monetary policy…aimed at reducing the inflation base through improved exchange rate of the Iraqi dinar and raise the purchasing power of the Iraqi dinar and make cash more attractive means…” You can read the full article HERE.



We have also noticed a trend at the Central Bank of Iraq that goes hand-in-hand with a revaluation. Since November 1st of this year the Central Bank of Iraq has bought back Iraqi Dinar from their local banks at a tune of over $720 Million Dollars! That’s over 1 Trillion Iraqi Dinar (1,055,373,700 to be exact). This means that they have taken a large chunk of their currency out of circulation. They have also been improving the exchange rate from 1470 Dinars to the Dollar to 1454 as of yesterday. LINK



Why would they do this? Well if you were the Central Bank of Iraq, which is operated similar to the United States Treasury, and you knew that your currency was about to increase in value, for whatever reason, you would want to pull as much out of circulation as possible before it cost you more. This is one of the reasons we believe that we have seen this dramatic move from the CBI. We also know from the statement by the CBI, that they have tried all other means to combat inflation, and that they are going to improve the exchange rate.



However, does a move from 1470 to 1454 do enough? Let’s look at this from an Iraqi’s point of view. Lets say a child’s pair of shoes in Iraq cost around $6.99 USD. At the old rate of 1470 that’s 10,275 Dinars. With the new rate of 1454, those shoes are now 10,163 Dinars. If you convert it the other way, it brings the shoes down to $6.91 for a total savings of 8 cents. Is that enough of an increase in the rate to combat inflation? No way…



We believe that this slight change in the exchange rate is just to attract the local banks to sell back their Dinar. At over $720 million bought by the CBI, the combined profit for the banks could be as high as 8 million dollars.



If the Dinar was going to increase, then why would the banks sell theirs back. Wouldn’t they stand to make much more than 8 million? The answer is that the local banks need US dollars for project funding. Most if not all of the reconstruction projects are paid in US dollars, not to mention ALL of their imports. Of course this will change once the Dinar becomes internationally traded.



One other thing to note, a recent article in an Iraqi paper alludes to the release of the lower denominations. This same article also states that the CBI has no plans to change the currency. Here is a snippet: “According to an official source at the Central Bank of Iraq…there is no intention at this time to change the Iraqi currency is expected that the issuance of new categories of transactions…” This is a rough Google translation, but when we hear, “new categories of transactions”, we think this is in regards to the lower denominations. You can read the article HERE.



Here are a few other links to news of interest..



Bush Meeting with Iraq Panel Offers Hope



Norway Finds Huge Amounts of Oil in Iraq!



CBI Officials Attend Advanced Training this Week



Dollar Demand Down at the CBI

And let’s not forget this important link in regards to Monday’s big trade meeting between Iraq and the European Union LINK