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

Originally Posted by frathousemicrowave

I for one found it kinda odd when the CBI started posting they would keep the rate the same for the weekend plus there Monday. Now they are doing it until Wednesday. We all know how things work over there and I can’t help but think there is something delaying what they are trying to do. Don’t know what they’re trying to do but I know what I hope they want to do. With these auctions happening for 3 years or so, they never posted that the rate would stay the same for any number of days and it would not move for weeks. Now that they extended the “hold” until the end of Wednesday I can’t help but think that they wanted to do something today but some one started to cry so we get the extension until Thursday.

Seems to me I read somewhere the " Freeze " was planned or stated awhile back. I'll go to history and see if I can find the article that states this. Cant exactly remeber why, just that it was said.Gloribee

Originally Posted by readytogo

For what it is worth, I really cannot imagine the cbi informing everyone of a major reval right before it happens. Can you imagine the chaos? Everyone and their dog would buy as much as they could. I know it has gotten harder to get ahold of, but still possible.

Lately, I have only seen amounts of 1000 and 1260, and for investors, that is not much to get excited about. It very well maybe wonderful for the citizens of Iraq, but from my limited knowledge, I can't see it being too much of a "woot" for them either.

So to sum it up, I believe these numbers (1000, 1260) are a smoke screen and notice just how often they are put up here lately. Little overkill if you ask me. I'll start to change my mind a little, and just a little, as soon as I see an article that says something of this nature........

"The cbi stated today that they have changed their plan to revalue the dinar to the previous rate of parity with the dollar or at least in parity with surrounding countries. They have now decided to raise the dinar to a value of 1000 dinar to 1 dollar over the next few years. They are very apologetic to have mislead their citizens with hopes of their dinar actually being worth anything in the near future."

Pretty funny. But I would appreciate even some clarity like this over the constant reporting of "what do you want to hear" current philosophy. What do you believe and what do you want to hear about a possible r/v? Do you believe the 1260 -1000 dinars = 1 usd? There are plenty of articles to support this belief. Do you believe 1 dinar = 1 usd? There are plenty of articles (although cryptic in nature) to support this belief. Do you believe 1 dinar = .27 usd? There are plenty of articles stating that they are going to raise the exchange rate of the dinar to at least that of the surrounding Gulf countries.

Do you believe that 1 dinar will = 3.22 usd? There are numerous articles that suggest that is where they want to be. Heck, there are even articles that want to raise the exchange rate of the dinar to where it was before and factor in the costs of inflation over the last several decades bringing it to 1 dinar = 4.49 usd. So there we have it. A summary of some of the more recent (within the last 3 - 6 months) news articles coming from Iraq quoting govt, and cbi high ranking officals concerning thier views of where the dinar is going.

Question is, which way are they going (really), and when will they get there? Sometimes I wonder if even the Iraqis know and at other times I think they know exactly what they are doing. It's no wonder why so many of my fellow RC members refer to smoke and mirrors when refernecing the Iraqi govt and their news sources!! Confused? Maybe that is their intention to throw us off. Maybe they are the ones confused and can't seem to come up with a rate they (the Iraqi govt) can all agree on. My suggestion to my fellow RC members is pick one and see what happens. Time will tell if you were right or wrong. IMO

worf

Originally Posted by Mike5200

The Finance Minister expressed optimism that the possibility of vote on the budget soon
لكل المواطنين
He said the Finance Minister Baqer Jabr Al-Zubaydi that he does not feel optimistic about the possibility to vote soon on a budget in the House of Representatives. Zubaidi explained in a press statement that "it is necessary to put the House in his calculations, every day we fail to seize the opportunity to begin the reconstruction of the country." , Adding that "the government believes that this delay is unjustified and should be held Members of Parliament sit for the completion of the budget because the government is now suspended, and chained unable to work." The minister denied "that the Finance Ministry had previously granted to the financial district councils except his predecessor and one six million dinars for all citizens


Translated version of جريدة المواطن العراقية

finance minister is saying members need to be made to stay until they get the budget done dammit. i tend to agree!!

Originally Posted by wciappetta

I'm fairly certain this comment is being maligned. The three or four year comment is referring to the timeframe that the currency was first issued.

Exactly, I have a friend that is Iraqi and that is exacly what he said about that intire article when it came out. It had to do with when the currency was first issued.

well adster just received a very disturbing emil from warka re the rate. ill let him post it.

Don't know if this has been posted before.

Date: 1/27/07
Iraqis: Oil Law Won't Favor Americans

BAGHDAD, Iraq - Iraqi officials say a hotly debated proposed oil law will not favor Americans but acknowledge that foreign companies will be allowed to take their profits out of the country _ an incentive to draw foreign investment.

The Oil Ministry has been struggling for months to reach a compromise over draft legislation to govern Iraq's most important industry and pave the way for much-needed investment and know-how to revitalize the devastated infrastructure. But the measure faces strong objections by ethnic Kurds and concern about American influence in the sector.

Published reports in the Middle East said the proposal would provide for so-called product sharing agreements that would give international oil firms 70 percent of the oil revenues to recover their initial investments and subsequently allow them 20 percent of the profits without any tax or restrictions on transferring funds abroad.

"Without a decisive military victory, the U.S. occupation of Iraq seems to be about to grab its oil prize by establishing a new sharing arrangement," the English-language Yemen Observer said Saturday, echoing a frequent criticism that the U.S.-led invasion was aimed in part at capturing Iraq's oil.

Iraqi officials denied that the proposed law would favor Americans but stressed that it would set terms aimed at attracting international funds and know-how to an industry that faces a rampant insurgency and struggled even before the war due to sweeping U.N. sanctions imposed after Saddam Hussein's 1990 invasion of Kuwait.

Trade Minister Abed Falah al-Sudani told The Associated Press that American companies will be among those bidding for contracts under the proposed law and the Iraqis will "take the best offer ... and take into consideration the experience of the company."

He did not specify monetary terms but said "foreign companies will be able to win concessions for a long time," without elaborating.

"Iraq's economy has suffered because of the security situation and the economic laws, but we now want to implement laws that reform the country and reform the economy. These laws will increase the growth of the economy," he said.

Prime Minister Nouri al-Maliki has pressed hard for a new oil law to be passed since he came to office on May 20. And President Bush stepped up the pressure on the Iraqis to pass legislation to share oil revenues among all Iraqis in announcing his new Iraq strategy earlier this month.

Iraqi officials also have struggled to overcome strong objections by ethnic Kurds in the oil-rich north who are reluctant to give up regional control.

On Jan. 18, the Oil Ministry said the law was nearly ready to be submitted to the Cabinet and expressed hope it could be ratified by parliament within a month.

But ministry spokesman Assem Jihad said Friday the measure had been delayed by unspecified "differences among some groups." He said the ministry hoped the differences could be overcome so parliament could approve the bill before a monthlong recess Feb. 10.

The distribution of oil revenues and central control over contracts are believed among the key sticking points.

Kurdish lawmaker Mahmoud Othman pointed out that the constitution passed last year provided for a Kurdish federation in the north that would co-manage existing oil fields along with the central government and have full control over new ones. Shiites would control new oil fields in their southern regions _ terms that have drawn objections from the disaffected Sunni minority.

Othman said the Kurds want the final say in signing contracts with foreign oil companies for projects in their area, signaling opposition to plans to give full control over contracts to a central oil committee.

"If they don't amend the law or the current draft or reach a mutual agreement, the Kurdish side will not accept it," Othman said.

Jihad said a Kurdish delegation will visit Baghdad to try to resolve some outstanding issues.

"The Kurds talk about this issue as if they are from another country while they are part of the Iraqi government and parliament. They want bigger share for Kurdistan regarding the oil revenues."

Negotiators also are stuck over taxes and the terms for agreements with international companies, as well as concerns that American and other multinational firms will get a disproportionate share of the profits.

Jihad dismissed claims that the proposed law would allow 70 percent of Iraq's oil to be sold to U.S. or other foreign oil companies but conceded that they would not face restrictions in taking profits outside Iraq.

He said the proposed law would establish that central product sharing agreements, or PSAs, would be negotiated with the companies on an individual basis.

"Some are trying to give a distorted idea about the new law that aims at serving Iraq's interests. Such reports are baseless," he said. "We should differentiate between monopoly and investment."

"The foreign companies can take their profits outside Iraq without any restriction because the aim of the law is to encourage investment," he said.

He said the question of taxes was still being negotiated, adding that the law provides a two-year tax exemption for general investment projects but no decision had been made on whether they should tax oil investments.

"This law protects both the full rights of the investors and of the Iraqi government," he said.

Iraq is believed to be producing around 2.2 million barrels of oil a day and exports about 1.5 million, well below prewar levels of 2.5 to 3 million barrels a day.

Some legislators pointed out that Iraq is desperate and needs all the help it can get.

"Foreign companies are welcome. American companies have the experience and they have people on the ground in Iraq. American companies have the courage to come into the market," said Amrah al-Baldawi, a member of the parliament's economic committee.


FINANCE - Iraqis: Oil Law Won't Favor Americans - Top News - Comcast.net

Is anyone else seeing last Thursdays auction on the CBI site right now? Where is Sunday, Monday's at?

Originally Posted by lglwzrd

well adster just received a very disturbing emil from warka re the rate. ill let him post it.

Do you think that the bankers in Iraq know more about what's going on with there currency then the bankers in the US know about the USD? I don't care if this guy is the owner of Warka, he's just a banker who wouldn't know or if he did wouldn't tell. I don't know why people get hung up on what Warka says, if you talk to any other bank in Iraq I'm sure you would get a bunch of different stories. IT'S NOT THE CBI SAYING IT SO RELAX. It's like saying that Orvil at Chase said something that will happen 6 months down the road so it must be true. Not buying it.

Originally Posted by billknows

Originally Posted by readytogo View Post
For what it is worth, I really cannot imagine the cbi informing everyone of a major reval right before it happens. Can you imagine the chaos? Everyone and their dog would buy as much as they could. I know it has gotten harder to get ahold of, but still possible.

Lately, I have only seen amounts of 1000 and 1260, and for investors, that is not much to get excited about. It very well maybe wonderful for the citizens of Iraq, but from my limited knowledge, I can't see it being too much of a "woot" for them either.

So to sum it up, I believe these numbers (1000, 1260) are a smoke screen and notice just how often they are put up here lately. Little overkill if you ask me. I'll start to change my mind a little, and just a little, as soon as I see an article that says something of this nature........

"The cbi stated today that they have changed their plan to revalue the dinar to the previous rate of parity with the dollar or at least in parity with surrounding countries. They have now decided to raise the dinar to a value of 1000 dinar to 1 dollar over the next few years. They are very apologetic to have mislead their citizens with hopes of their dinar actually being worth anything in the near future."


This is an incredible piece of writing!

In my view, if this is genuine, it is a clear signal of their plan to revalue the dinar to parity with the dollar!

If I read this correctly, this was an opinion stated by one of our members, Readytogo

1229 current.

1289 for tomorrow? 3 pips playing catch up.