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

It's on pg9 in the thread and posted by ordinaryseawomen!

Reply From Mr I At Warka.
I POSTE YESTARDAY THAT MR I HAD NOT ANSWERD MY QUESTION ABOUT THE RECENT STATMENTS ON THE RISE OF THE DINAR,SO I ASKED HIM AGAIN AND THIS IS HIS RESPONCE.

Dear Mr. PEARSE1916

The Government and Central Bank will start a new direction for Iraq such that the people will benefit greatly as they deserve.

With all of the economic hardships that the citizens face daily, something must be done urgently to bring them a better standard of living. The Central Bank will continue to raise the exchange rate to combat inflation and increase the purchasing power of all Iraqis. With the new oil law stipend, budget, eid gift, small business loans… the exchange rate must be improved.

Iraqis have high hopes that the Government will recognize this and increase the exchange rate rapidly to help the citizens begin to rebuild their lives.

Best regards,

Manager
International Foreign Relations Dept.

Originally Posted by panhead

Concur....if it was up to the Kurds it would already have been done.
Not only plan on being on the beach, just might own one!

Man I like the way you think!

Originally Posted by neno

The Euro situtation was the deciding game for the debate we had. But as we wondered about Iran, Syria, S. Arabia and others that are valued very low compared to Kuwait, Jordan and also decided that the NewIraqDinar will have to fall inline there somewhere at that time.

It is just a Interesting Subject that will come to Parr.

Neno, as far as Syria's and Iran's currency being low you are right, but in regard to Saudi Arabia you need to look a little closer. The reason I say this is because the S.A. Riyal is actually on par with the Kuwaiti Dinar. The reason is simple, but let me try to convolute it by explaining it mathmatically. Both the Kuwaiti Dinar and the Saudi Riyal have smaller sub units called fils--->correct? Well, the Kuwaiti Dinar is equal to 1000 K.W. fils, while the Saudi Riyal is equal to 100 S.A. fils. Thus the Kuwaiti Dinar is based upon a 1000 unit subset, while the Saudi Arabian Riyal is based upon a 100 unit subset. The reason the subset is important is due to the exchange rate. Take for example the Kuwaiti Dinar when broken down to its subset:

1 K.W. Dinar = 1000 fils = 3.3 dollars
Thus, 1 fil = 0.0033 dollars

Now lets look at the Saudi Riyal broken down to its subset:

1 S.A. Riyal = 100 fils = 0.27 dollars
Thus, 1 fil = 0.0027 dollars

Now when you break down each currency to the subsets you nearly have equality---->correct. So, the trick is how each of the currencies are set up numerically. Most of the Middle Eastern countries are set up on the 1000 unit subset, while a few like Saudi Arabia are set up on the 100 unit subset. Break them all down to the smallest units and you will see that they are all very close in value. Iraq, by the way is on the 1000 fil system.

As for Syria and Iran, I would bet that they wouldn't be that far off either if they weren't trying to oppose the U.S. Most of their problems stem from political choices rather than economic, and I suspect that sooner than many think, they will begin to come around to what is going to happen in the Middle East, whether the Adamajanincompoops of those countries like it or not.

As they say, the writing (or in this case-mathematics) is on the wall. Anyway, hope that was clear.

Originally Posted by lglwzrd

well if we have a decent peg and a couple of good years...say to 3.22 i dont know of anyone who will still hold nid. at least not in my group. there is a pt in time where there is enough money.

Ya know lgl, it would really depend for me whether or not the U.S. dollar is devalued severely relative to what it can purchase locally. I know you didn't specifically say you'd convert to dollars (more implied by the 3.22 rate), but the reason I say that is because of the changes that are around the corner for the North American continent--->i.e. conversion of the U.S. and Canadian Dollars and Mexican Peso to a single currency---->the Amero. Some of you may have read about this push for the Amero and if you haven't you should, but depending upon what our ever so wise and gracious overlords decide to do in the ever prescient quest to unify the currencies, it could seriously affect how you will profit with this currency investment.

For example, how is Mexico's currency going to be on par with the U.S. and Canadian Dollars. Hmm, maybe by devaluing the dollar and depressing the U.S. economy? Then, increasing the wealth in possession of the Mexican population, hmm, illegal immigration anyone? Wonder why all of those dollars are heading south, never to return??? I'm sure that isn't the whole picture, but its something to consider.

Anyway, back to the original point which is value of the dollar versus the dinar and what a dollar can buy in your local economy. If the dollar is so weak that it cannot buy the same quantity of something in your local economy that it used to, then I would consider keeping my Dinar, or going to something other than the Dollar. Sorry for the runon sentence, but in essence what I am saying is like this, say today you could buy an Acre of land for $10,000 dollars, but down the road in the future it would cost $100,000 dollars for the same acre. In the same manner lets say today it cost you 10,000 Euros for the same land, but down the road in the future it still cost 10,000 Euros, would it be worth it to convert your Dinar to dollars or Euros? Obviously Euros is the answer. I know its an exaggeration, but the point is that it would behoove everyone to pay attention to the purchasing power of whatever currency they are choosing to convert to, be it Dollars, Euros, Ameros, Pesos, etc.

Sorry for thinking outloud. You can beat me now....

Originally Posted by billknows

Reply From Mr I At Warka.
I POSTE YESTARDAY THAT MR I HAD NOT ANSWERD MY QUESTION ABOUT THE RECENT STATMENTS ON THE RISE OF THE DINAR,SO I ASKED HIM AGAIN AND THIS IS HIS RESPONCE.

Dear Mr. PEARSE1916

The Government and Central Bank will start a new direction for Iraq such that the people will benefit greatly as they deserve.

With all of the economic hardships that the citizens face daily, something must be done urgently to bring them a better standard of living. The Central Bank will continue to raise the exchange rate to combat inflation and increase the purchasing power of all Iraqis. With the new oil law stipend, budget, eid gift, small business loans… the exchange rate must be improved.

Iraqis have high hopes that the Government will recognize this and increase the exchange rate rapidly to help the citizens begin to rebuild their lives.

Best regards,

Manager
International Foreign Relations Dept.

Can't get much better than that. He is almost saying "Reval is Imminent"....

Hope this is a real e-mail, as it would be a complete departure from the e-mails that Warka used to send back.

Hold on to your hats folks.

Originally Posted by Wm.Knowles

These are very good questions. There are private banks in Iraq, but most are state owned. i.e. controled by the CBI. My opinion is that the state owned banks are being dictated to by the CBI and have little choice as to how much is transacted and at what price. The auction tells us how many banks participated but not which ones. It may be reasonable to assume that the privately owned banks are able to "run their own program". And may not be selling their dinar to the CBI. Thank You.

According to CBI's Bank list there are 7 State banks and 20 Private banks.

Banks Menu

Originally Posted by TerryTate

Can't get much better than that. He is almost saying "Reval is Imminent"....

Hope this is a real e-mail, as it would be a complete departure from the e-mails that Warka used to send back.

Hold on to your hats folks.

I agree Terry, if it's real, it would be an outstanding response from Warka!

By the way great explanation to neno about the 1000 vs 100 fils. I thought the same thing when I read his post. I'm glad you took the time to explain it because many don't know this and less positive people use it to support their incorrect position. Thumbs up to Bud.

Announcement No.(850)

D.G. of Foreign Exchange Control

The 850 daily currency auction was held in the Central Bank of Iraq day Thursday 2007/ 1/25 so the results were as follows :
Details Notes
Number of banks 14 -----
Auction price selling dinar / US $ 1292 -----
Auction price buying dinar / US $ 1290 -----
Amount sold at auction price (US $) 101.510.000 -----
Amount purchased at Auction price (US $) 10.000.000
Total offers for buying (US $) 101.510.000 -----
Total offers for selling (US $) 10.000.000 -----

Originally Posted by blackwulf

Announcement No.(850)

D.G. of Foreign Exchange Control

The 850 daily currency auction was held in the Central Bank of Iraq day Thursday 2007/ 1/25 so the results were as follows :
Details Notes
Number of banks 14 -----
Auction price selling dinar / US $ 1292 -----
Auction price buying dinar / US $ 1290 -----
Amount sold at auction price (US $) 101.510.000 -----
Amount purchased at Auction price (US $) 10.000.000
Total offers for buying (US $) 101.510.000 -----
Total offers for selling (US $) 10.000.000 -----

Looooking goood friends!! top 5 of highest amount of dinar taking out of circulation and a pretty big drop!!