Thread: Iraq/Dinar News. before Febuary 2nd 2006

Good to hear from you, Wm Knowles. Your input is always a bright spot in the day. It is always nice to get a different and positive perspective to the RV. Thanks.

[QUOTE=rvalreadydang;160951]الربيعيBaghdad Haider spring
.[SIZE="4"]Central Bank Governor Sinan Shabibi said, in turn : that the new budget is an investment budget and the size of a large investment in economic terms. He added during the budget debate this year in the House of Representatives said that the Central Bank's role is to address the imbalance resulting from the development process that will produce changes in the economic structure are basic.
.Shabibi explained that the Central Bank is working on the development of a stable monetary, in addition to the bank concerned by all means and contexts that achieve economic stability and dealing with inflation.
وتابع..He continued Shabibi that our budget for the preservation of resources, and this will be done by the fight against inflation, and we have a number of measures including raising the exchange rate of the dinar. He pointed out that the impact of this measure in the budget through influence in the purchasing power of the government.
وأفاد ..He said that this policy will increase confidence in the dinar will pull some of the money to the banking sector and the rationalization of government expenditure which will limit inflation.
.And that this will lead to the reduction of import prices, such as imports, the private sector and the import of the government's development comes through the transformation of the Iraqi dinar to the dollar.


Great find! I especially liked the part highlighted about the "transformation". The proper understanding of transformation would be in order here, as it could imply transforming from something of little to no value to something of immense value. If I understand the term "transformation" correctly, the implication is an all at once change...as if before our very eyes. I was also thinking yesterday, how it seemed the words that are used in any announcement seem to be carefully selected so as not to be misinterpreted...hince the word "transformation".

Originally Posted by Socata 850

Number of banks 11 -----
Auction price selling dinar / US $ 1295 -----
Auction price buying dinar / US $ ----- -----
Amount sold at auction price (US $) 65.810.000 -----
Amount purchased at Auction price (US $) -----
Total offers for buying (US $) 65.810.000 -----
Total offers for selling (US $) ----- -----


Gooooooooooooood Morning RolClub


I was kind of hoping that the info about the RV being cancelled was false, just to throw the speculators off track. Kind of like China did just before they revaled their curency. But by the numbers at the CBI it looks like business as usual. Like Oz said, one day we'll wake up then just go back to bed and wait for the banks to open. Unfortunately, today is not that day. We are still in the 60+ million dollar daily average at the CBI. That in itself is some encouragement, the more they pull out the tighter the squeeze on the dinars remaining in circulation. The temporary shortage at the US banks like Chase and others seems to have abated, maybe we have to see two or three more cycles like that before the supply is really dried up. To stay positive I just tell myself, "we are one day closer to the reval than we were yesterday." With that, here are today's numbers


1. A 0 point change in the dinar today. Was 1295, now 1295

2. A (net) worth of dinars, IQD - 85,223,950,000 pulled out of circulation today, 1/24/07

3. 11 banks participating today

4. 68th auction since the beginning of CBI's reval plan

5. 116 days into the CBI's reval plan.

6. 3,880,436,080,000 dinars pulled from circulation !!

7. 0 Dinars back into circulation today !!

8. 182 dinar change since Oct 1st (baseline was 1477) 12.322% increase in value of the dinar since beginning of reval plan (Approximatly Oct 1st).

9. 5 point reduction in the rate so far this week. Was at 1300 at the end of last week, 1295 this week.

10. 30 point drop so far in the month of Jan. Ended at 1325 in Dec, now stands at 1295

Exactly! There will be no advance notice or tips. You wake up and check exchange rate on CBI website and then go to bank if you like the rate.

Think Long Term.

Great to hear again from you Mr. Knowles, keep the positives coming.

Senators eye rejection of Bush war plan By ANNE FLAHERTY, Associated Press Writer
35 minutes ago



WASHINGTON - Democrats took the first step toward a wartime repudiation of President Bush on Wednesday, convening a Senate committee to endorse legislation declaring that the deployment of additional troops to Iraq is "not in the national interest."

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"We better be damn sure we know what we're doing, all of us, before we put 22,000 more Americans into that grinder," said Sen. Chuck Hagel (news, bio, voting record) of Nebraska, the only Republican on the committee to announce support for the measure.

Sen. Joseph Biden (news, bio, voting record), D-Del., the panel's chairman, said the legislation is "not an attempt to embarrass the president. ... It's an attempt to save the president from making a significant mistake with regard to our policy in Iraq."

Less than one month after taking control of Congress, there was little doubt Democrats had the votes to prevail. They hold 11 seats on the committee, to 10 for Republicans.

The full Senate is scheduled to begin debate on the measure next week, although Biden has said he is willing to negotiate changes in hopes of attracting support from more Republicans.

Even Republicans opposed to the measure expressed unease with the revised policy involving a war that has lasted nearly four years, claimed the lives of more than 3,000 U.S. troops and helped Democrats win control of Congress in last fall's elections.

"I am not confident that President Bush's plan will succeed," said Sen. Richard Lugar (news, bio, voting record) of Indiana, senior Republican on the committee.

But he also said he would vote against the measure. "It is unclear to me how passing a nonbinding resolution that the president has already said he will ignore will contribute to any improvement or modification of our Iraq policy."

"The president is deeply invested in this plan, and the deployments ... have already begun," Lugar added.

He suggested a more forceful role for Congress, and said lawmakers must ensure the administration is "planning for contingencies, including the failure of the Iraqi government to reach compromises and the persistence of violence despite U.S. and Iraqi government efforts."

Hagel's remarks were among the most impassioned of the day.

"There is no strategy," he said of the Bush administration's war management. "This is a pingpong game with American lives. These young men and women that we put in Anbar province, in Iraq, in Baghdad are not beans; they're real lives. And we better be damn sure we know what we're doing, all of us, before we put 22,000 more Americans into that grinder."

A Vietnam veteran, he fairly lectured fellow senators not to duck a painful debate about a war that has grown increasingly unpopular as it has gone on. "No president of the United States can sustain a foreign policy or a war policy without the sustained support of the American people," Hagel said.

At least eight other Republican senators say they now back legislative proposals registering objections to Bush's decision to boost U.S. military strength in Iraq by 21,500 troops.

The growing list — which includes Sens. Gordon Smith (news, bio, voting record), George Voinovich (news, bio, voting record) and Sam Brownback (news, bio, voting record) — has emboldened Democrats, who are pushing for a vote in the full Senate by next week to rebuke the president's Iraq policy.

In his State of the Union speech Tuesday night, Bush urged skeptical members of Congress to give the plan a chance to work.

Many lawmakers remained reluctant.

"I wonder whether the clock has already run out," said Sen. Susan Collins (news, bio, voting record), R-Maine. She said she was worried that U.S. troops in Iraq are already perceived "not as liberators but as occupiers."

Bush did get a word of support from former New York Mayor Rudy Giuliani, one of the 2008 Republican presidential hopefuls.

"I believe we should give the president the support to do this. I want us to be successful in Iraq," he said Wednesday on NBC's "Today" show. "I know how important it is to the overall war on terror. Success in Iraq means a more peaceful world for America, it means a victory against terrorists. Failure in Iraq means a big defeat against terrorists and the war on terror is going to be tougher for us."

But Sen. Barack Obama (news, bio, voting record), D-Ill., appearing on the same show, said, "I think all of us are talking about a phased redeployment which would leave American troops in the region to send a strong message, not only to the Iraqi government that we want to help them, but also to neighbors, like Iran, that we're not abandoning the field."

The nonbinding resolution being voted on Wednesday by the Foreign Relations Committee was drafted by Biden and Hagel, along with Sens. Olympia Snowe (news, bio, voting record), R-Maine, and Carl Levin (news, bio, voting record), D-Mich.

Some Republicans worried that it would undermine Bush's diplomatic efforts on Iraq. "The worst thing we can do as a Congress is to undercut the president internationally," Sen. Kay Bailey Hutchison (news, bio, voting record), R-Texas, said Wednesday on CNN.

GOP defections for Bush's Iraq policy spell trouble for an administration that has come to rely on congressional Republicans to champion its agenda. While many Bush loyalists remain, including Senate Minority Leader Mitch McConnell (news, bio, voting record), R-Ky., other lawmakers say the president cannot continue down a path the public does not support.

White House officials "realize you can't conduct a war with one party for it and one against it, and we're getting in that type of position," said Brownback, R-Kan. "And that is not a durable position

Originally Posted by Wm.Knowles

Hello everyone. Haven't posted in a while. Been watching the auctions and the other news out there. I would have thought that the CBI was approaching their target level at the end of '06 with having pulled around 3 trillion dinar from the market. But it has surprised me that they apparently found the money to pull another 1 trillion out since the break starting Jan. 9th. What is also interesting is the report that their currency reserves has increased to around 16Billion. This indicates these people have a lot more money than we thought. One explanation for the recent 13 auction removal of the dinar is that they received the 685 billion from the IMF around Dec. 24th. Only speculation and rumor. But if true, that allowed them to take another trillion out of circulation. But in any case, they are removing the money from the economy in a textbook intervention to reduce the base money supply and tackle inflation. Which I think has been their first priorty over and above increasing the exchange rate. How much more can they remove? We don't know. They have surprised us before and they may continue to do the same. But as we have said before, this process can't go on forever. The drying up process is in effect. Although their appears to be remaining pools of dinar out there. This too can't last for much longer if it is true that the large corporations have been buying. The CBI is the ultimate source and they haven't sold any dinar in any appreciable amounts since last Oct. So the supply will continue to dry and the demand will increase as we have seen both here and inside Irag from reports. What is interesting in their (CBI) behavior is that they have pulled so much out in such a short period of time as if they where under a lot of pressure. Somebody is apply the "heat" to get the money out so as to move on the better things. (An RV?). But as we have discussed, the removal of the currency is controled by the CBI and is the very best intervention that they could do at this time. Reduction of the money base is a classic intervention and one we would want them to do prior to any appreciation of the currency. With 5 auctions over 100 million, 2 in Nov. and 3 in Jan. they are not even being subtle about this. Hopefully the goal will be a closely held currency with little in circulation, therefore resulting in an expensive currency similar to Kuwait. Expect a continued decrease in supply and the price of this currency to rise. With over a 12% increase in value, the world knows about this and the feeding frenzy will become more voracious. Everyone be patient. Thank You.

I would like to thank all those who post regularly to keep RC members informed about the progress in this investment.
I am one of those who read everyday but seldom post.
I understand the CBI holds daily auction
But who determines How much dinar would be bought back at each auction
Assume that on an auction day no bank shows up to offer to sell their dinars, what can the CBI do if they are determined to buy dinars back? Lower the rates as an incentive until they find a taker?
Thank you

IMF Managing Director recommends tighter monetary policy in Iraq

--------------------------------------------------------------------------------

MENAFN) The Managing Director at the International Monetary Fund (IMF) said that the Iraqi authorities should move towards a tighter monetary policy, Iraq Economy reported.

He pointed out that strengthening the Iraqi dinar is a positive step towards reducing the rising inflation which posted record rates in 2006. He added that there are ongoing negotiations about the proposed $685 million IMF loan to Iraq.
http://www.menafn.com/qn_news_story...ryId=1093140377

Minister hopes Iraq’s economy will rebound




By Our Special Correspondent

LONDON, Jan 23: Iraq’s Minister for Industries and Minerals Fauzi Hariri, who is here negotiating a deal with the Corus Steel for rehabilitating his country’s steel mill, believes that the cycle of violence in Iraq “will come to an and when that happens Iraq’s economy will rebound very quickly and, therefore, it is business as usual in my ministry.”

Addressing a press conference here on Monday at the Foreign and Commonwealth Office, Mr. Hariri said that his government had decided to adopt free market economy to make the most of the ongoing globalisation.

“In this connection we have plans to privatise the 230 or so factories now under the state control, but before we do that we would like to make them profitable,” he added.He said the shares of the companies to be privatised would first be offered to the workers and then to the 15 governorates (provinces).

He said the money for running these factories before they are privatised would come from both the budget as well as from private sources by way of loans and equity.

He said the major industrial sectors in his country comprised construction, engineering, petrochemicals, food and drugs, textiles and research and development.

All these sectors according to him were self contained and interdependent and “that was why they had sustained even during the sanctions.”

He said he was in the US last week discussing with multinational companies and experts in the fields of Iraq’s interest, “we discussed possibilities of joint ventures and also investment in ventures that would bridge the technological gaps from which Iraq is suffering at present.”

Answering a question he said the US investors were certainly nervous about investing in the war ravaged country, but “they also see the potential of profits if they invest today.”

He said there were only two places in Iraq--Baghdad and Anmbar-- where there is violence. “Most other places are relatively peaceful with occasional disturbances.”

He thought a good chunk of the $700 billion of oil related income, with which the Middle East and Gulf countries are awash at present, would certainly flow to Iraq as the margin of profit in the country is perhaps the highest in the world today “and the reason for that is well known, but if you invest today when things are bad you will reap millions when things get better in the country.”

He said his factories were at the moment running at 30 per cent capacity and making around $200 million annually, “this is commendable considering that most of these factories have been severely damaged by the war and also face shortages of power and fuel as do the people of Iraq generally.”

He said at the moment the 16 cement factories in Iraq were producing 3 million tons of the commodity, “we want to increase this production to 15 million tons, which would still satisfy only half of the annual demand from the construction industry.”

According to him the Iraqi textile industry, which employees about 20,000 people is making about $25 million annually and “its main customers at present are the ministries of defence and interior which need material in increasing quantities to make uniforms.”

He said Turkey, Egypt and the UAE had shown keen interest in investing in Iraq, “but at the moment they too seem to be exploring, waiting and watching.”

Answering a question he said, his government has no plans to sell oil fields and wells, “ we may sell refineries but not oil fields because at the moment we need a lot of financial resources and oil incomes would largely satisfy this demand.”

Minister hopes Iraq’s economy will rebound -DAWN - Business; January 24, 2007

Originally Posted by Wm.Knowles

Hello everyone. Haven't posted in a while. Been watching the auctions and the other news out there. I would have thought that the CBI was approaching their target level at the end of '06 with having pulled around 3 trillion dinar from the market. But it has surprised me that they apparently found the money to pull another 1 trillion out since the break starting Jan. 9th. What is also interesting is the report that their currency reserves has increased to around 16Billion. This indicates these people have a lot more money than we thought. One explanation for the recent 13 auction removal of the dinar is that they received the 685 billion from the IMF around Dec. 24th. Only speculation and rumor. But if true, that allowed them to take another trillion out of circulation. But in any case, they are removing the money from the economy in a textbook intervention to reduce the base money supply and tackle inflation. Which I think has been their first priorty over and above increasing the exchange rate. How much more can they remove? We don't know. They have surprised us before and they may continue to do the same. But as we have said before, this process can't go on forever. The drying up process is in effect. Although their appears to be remaining pools of dinar out there. This too can't last for much longer if it is true that the large corporations have been buying. The CBI is the ultimate source and they haven't sold any dinar in any appreciable amounts since last Oct. So the supply will continue to dry and the demand will increase as we have seen both here and inside Irag from reports. What is interesting in their (CBI) behavior is that they have pulled so much out in such a short period of time as if they where under a lot of pressure. Somebody is apply the "heat" to get the money out so as to move on the better things. (An RV?). But as we have discussed, the removal of the currency is controled by the CBI and is the very best intervention that they could do at this time. Reduction of the money base is a classic intervention and one we would want them to do prior to any appreciation of the currency. With 5 auctions over 100 million, 2 in Nov. and 3 in Jan. they are not even being subtle about this. Hopefully the goal will be a closely held currency with little in circulation, therefore resulting in an expensive currency similar to Kuwait. Expect a continued decrease in supply and the price of this currency to rise. With over a 12% increase in value, the world knows about this and the feeding frenzy will become more voracious. Everyone be patient. Thank You.

Great to see you again Mr, Knowles. I thought we had lost those informative assessment of what the CBI is doing. Keep up the good work.

JT2154

الاقتصاديةEconomic : موازنة عام 2007 من وجهة نظر المختصينBudget 2007 : from the point of view of specialists

The whole poles economic decision that the 2007 budget, which was the largest in the history of Iraq is able to promote our service and physical required if directed allocations, according to a planned carefully and follow-up mechanisms for implementation and supervision of a high official.

With the number of specialists in the economic field for the need to speed up the adoption of the current year budget, and work on what came from allocations for the advancement of the country by residential and service in various fields.
They warned of the failures that may be due to administrative corruption stressing the importance that the government is working on the follow-up mechanisms to implement what was stated in that budget plans and urban health, education and service will be strictly to the upgrading of the Iraqi reality in a comprehensive manner.
In the meantime, the extensive discussions have taken place between members of the House and a number of specialists approval and stand on the key strengths and address the contents of the negative aspects, and had recommended a number of attendees to speed up the adoption of the budget because it contained a large investment funds benefit of Iraq to set up many vital projects which is dire need them.
دعوة للإسراع في المصادقةCall to speed up the ratification
He called on the Minister of Planning and Development Cooperation on Papan the House of Representatives to speed up the ratification of the budget for the current year.
He said during a discussion of the financial budget for the current year in the House of Representatives : that the ratification of the budget will reflect positively on the completion of many projects. The delay in ratification would delay the completion of those projects. Stressing that the government could, in this circumstance is difficult to develop a budget not by any previous government, which is encouraging the completion of the budget plans of all ministries during the current year if implemented carefully. Noting that the Ministry of Planning is now in the light of the slogan calling for the establishment of more investment projects and state benefits, and the priority in these projects. The Papan that some rates of achievement in the past year in some ministries were low because of the security situation facing Iraq.
عام لتنفيذ المشاريع الاستثماريةFor the implementation of investment projects
For his part, Deputy Prime Minister Dr. Barham Salih during discussions on the need to see Iraq through this year, the implementation of the largest possible number of projects that serve the citizens and the Iraqi economy. He pointed out that the last phase of the budget took up most of the financing aspect of security, because it represents the first priority in the lives of citizens, in addition to the financing items ration card, he said, pointing out that last year, not at the level desired by the government or the House of Representatives in terms of the implementation of projects.
And the benefit that the current budget is the largest in the history of Iraq, therefore, it must be this year overview of the implementation of investment projects that will be a factor in lifting the economy and the elimination of unemployment.
Saleh also pointed to the need to feel the improvement in the security situation citizen and service and working to find ways to Pavhamh that the government was working towards raising the standard of living for him.
..Regarding the implementation of the programs and plans of the lag in the implementation of projects not in the lack of appropriate funds, but the imbalance in the administrative corruption and mechanisms wrong is the most important reasons for wasting public money and not put in its proper place.
ميزانية استثماريةBudget investment
Central Bank Governor Sinan Shabibi said, in turn : that the new budget is an investment budget and the size of a large investment in economic terms. He added during the budget debate this year in the House of Representatives said that the Central Bank's role is to address the imbalance resulting from the development process that will produce changes in the economic structure are basic.
Shabibi explained that the Central Bank is working on the development of a stable monetary, in addition to the bank concerned by all means and contexts that achieve economic stability and dealing with inflation.
He continued Shabibi that our budget for the preservation of resources, and this will be done by the fight against inflation, and we have a number of measures including raising the exchange rate of the dinar. He pointed out that the impact of this measure in the budget through influence in the purchasing power of the government.
He said that this policy will increase confidence in the dinar will pull some of the money to the banking sector and the rationalization of government expenditure which will limit inflation.
And that this will lead to the reduction of import prices, such as imports, the private sector and the import of the government's development comes through the transformation of the Iraqi dinar to the dollar.
While many supporters as stated in the details of the budget and the figures put forward, and call for early ratification, but it was met with objections also on some of the points that some considered vague and needed to be amended, the Virtue Party, in the words of President bloc in the parliament hinted that it is very likely that no vote his party on the current year budget of the ambiguity and lack of clarity in some of what was reported in the paragraphs.
And Hassan al-Shamri added in a press statement : There are several observations on the budget include the titles are unclear and ambiguous title of which (social benefits) contained in the budget (the presidency of the republic and the prime minister and the Ministry of Finance), as the allocations for this confusing title (in the words of al-Shamri) 5 trillion and 125 billion and 50 million Iraqi dinars.
He pointed out that this ambiguity and lack of clarity provide an opportunity for embezzlement, theft, in addition to the title (the activity of the State), which has been allocated is also significant.
The Shamari said that the budget pointed to the allocation of grants to the Kurdistan region and the failure to allocate a similar spending for the rest of the governorates and there between the figures for the numbers of sovereign sites earmarked for spending points which are prejudicing the lives of the people and their rights.
He stressed that it is necessary for members of the House of Representatives claim the reasoning behind the views of expenditure by ministries to the Ministry of Finance found in terms of the accuracy of the figures, and the priority points expenditure.
There are several observations on the budget include the titles are unclear and ambiguous title of which (social benefits) contained in the budget (the presidency of the republic and the prime minister and the Ministry of Finance), as the allocations for this confusing title (in the words of al-Shamri) 5 trillion and 125 billion and 50 million Iraqi dinars.
He pointed out that this ambiguity and lack of clarity provide an opportunity for embezzlement, theft, in addition to the title (the activity of the State), which has been allocated is also significant.
The Shamari said that the budget pointed to the allocation of grants to the Kurdistan region and the failure to allocate a similar spending for the rest of the governorates and there between the figures for the numbers of sovereign sites earmarked for spending points which are prejudicing the lives of the people and their rights.
He stressed that it is necessary for members of the House of Representatives claim the reasoning behind the views of expenditure by ministries to the Ministry of Finance found in terms of the accuracy of the figures, and the priority points expenditure.