Thread: Iraq/Dinar News Before Febuary 12th, 2006

Originally Posted by abbey56

Hi,

It states in the Reuters report and others that the budget is set at 42 billion not 42 trillion, at the moment the CBI are pulling that out of circulation in one day, I calculate and so did someone in a posting yesterday that on a budget of 42 bill it could revalue at about 1.33.

Interesting not all that far off where the Euro/Dollar is currently trading hhmmmmm I hope your right

Originally Posted by bultn

42 trillions would be more than three times the amount of previously printed dinars. If they'd print that much it would cause hyperinflation and the dinar would be absolutely worthless with no chance of ever regaining any value.

Excellent answer, short and very informative!
This has to kill the talk about the re-print once and for all. Atleast i hope it does!

Originally Posted by abbey56

Hi,

It states in the Reuters report and others that the budget is set at 42 billion not 42 trillion, at the moment the CBI are pulling that out of circulation in one day, I calculate and so did someone in a posting yesterday that on a budget of 42 bill it could revalue at about 1.33.

Except that the Reuters report refers to 42 billion USD not 42 billion NID. It also stated an exchange rate of 1260 was used. 42 billion USD at a rate of 1260 NID to 1USD means that their version of the budget amount is 52.93 trillion NID.

As far as the need to print more dinar is concerened I again will point out that their budget for 2006 was 30 billion USD. They handled that budget with the amount of dinars currently in print. The dinars will cycle throughout the economy during the year and they do not have to have the full amount on hand when they start out. Someone mentioned that last year they used USD and this year they will be using NID so they need to print more. However, they will only be using NID for the domestic portion of the budget. Any imports such as contracts for materials and engineering with regards to rebuilding their infrastructure will be in USD or some other foreign currency.

Last year all government employee salaries, government pensions etc were paid out in dinars not USD. Only the politicians got paid in USD. (why I don't know but apparently they did). When it comes to selling their oil, the price may be based on USD but they could request that some of it be paid in the equivalent NID. This would create a demand on the forex markets for the dinars and we all know where there is a nice supply waiting to be cashed in if the value is high enough. Right here at RolClub and other speculators throughtout the world. They are also trying to establish their banking community having electronic payments etc and are encouraging the citizens to start using bank accounts instead of hard currency. If this works then a lot of the transactions will merely be electronic transfers of dinars from one bank account to the other. You don't have to have the physical currency to accomplish this. Just look at the US and all the other major countries. There is far more total value in the activity in the bank accounts, loans, etc than there is hard physical currency.

Originally Posted by Lunar

it is in their best interest to suppress most news regarding the IQD until such a time as they are ready to announce it entering the global markets.

Exactly. Which is why they insisted on a closed door meeting in order to pass the budget.

Voices of Iraq: Parliament-Session-Update 1
Posted by: saleem on Thursday, February 08, 2007 - 10:04 PM

Parliament-Session-Update 1
Parliament passes 2007 national budget
By Santa Michael
Baghdad, Feb 8, (VOI)- Iraq's Parliament approved on Thursday an ID 42,640,000 million (USD 32,200 million) FY 2007 budget.
The budget approval was delayed for almost two weeks for differences among major blocs over two issues, the financial appropriations for the three presidencies and allocations for Iraq's Kurdistan region's guards (peshmerga).
The parliament passed the 2007 budget in Thursday's session with majority after an agreement was reached to move five percent of the total financial appropriations to the parliament presidency office.
Earlier, the parliament speaker today's ordered a private session to give the defense minister, who was present at the session, a chance to answer lawmaker's enquiries openly.
Some legislators asked the Speaker to declare a private session so that the defense minister could answer all enquiries without harming any classified information that he might be mentioning during the session.
Speaker Dr. Mahmoud al-Mashhadani who chaired today's session ordered all journalists out of the parliament hall.
Thursday's session was the last before a month recess.

Originally Posted by Cdn Scrooge

As far as the need to print more dinar is concerened I again will point out that their budget for 2006 was 30 billion USD. They handled that budget with the amount of dinars currently in print. The dinars will cycle throughout the economy during the year and they do not have to have the full amount on hand when they start out. Someone mentioned that last year they used USD and this year they will be using NID so they need to print more. However, they will only be using NID for the domestic portion of the budget. Any imports such as contracts for materials and engineering with regards to rebuilding their infrastructure will be in USD or some other foreign currency.

And as you pointed out in post #549....there were surplus funds in 2006. "Ayad al-Samarrai said the $7.14 billion deficit would be covered through surplus funds from 2006"

Shiite District, Flash Point in Baghdad, Rebuilds

BAGHDAD, Feb. 8 — Just past the main checkpoint into Sadr City, children kick soccer balls at goals with new green nets, on fields where mounds of trash covered the ground last summer. A few blocks away, city workers plant palm trees by the road, while men gather at a cafe nearby to chatter and laugh.

Sadr City, once infamous as a fetid slum and symbol of Shiite subjugation, is recovering, with the help of $41 million in reconstruction funds from the Shiite-led government, all of it spent since May, according to Iraqi officials, and millions more in American assistance.

http://www.nytimes.com/2007/02/09/wo...html?th&emc=th

Originally Posted by Lunar

My first million IQD cost 300$....so I know how time wears on you. Although it's been a long ride we all knew it wouldn't be quick...with all the laws, budget, etc in the final stretch the worst is over. Be patient Paulie.
You have to learn to take most of the news coming out of Iraq with a grain of sand (lol...salt) it is in their best interest to suppress most news regarding the IQD until such a time as they are ready to announce it entering the global markets.
I agree that most times it appears they have no idea what they're doing but it's all a learning process and there isn't anything (unfortunately) we can do to hurry them along.

Ya, be patient Paulie. Otherwise, at the reval party we will be telling those stories about that poor Paulie guy, who just couldn't wait for the reval. Sad, sad story bout a guy that couldn't stand it anymore and sold his investment for a few bucks when he could have had a bundle.....





Sorry Paulie, couldn't resist, but you get the gist right....

Iraq’s No. 2 Health Official Is Held and Accused of Financing Shiite Militants

BAGHDAD, Feb. 8 — Iraqi and American troops arrested the second highest official in the Iraqi Health Ministry on Thursday, charging that he funneled millions of dollars to rogue Shiite militants who kidnapped and killed Iraqi civilians.

The United States military said in a statement that the official was suspected of using his position to run a rogue unit of the Mahdi Army, the Shiite militia that claims loyalty to the cleric Moktada al-Sadr. The statement accused the official of flooding the Health Ministry’s payroll with militants, embezzling American money meant to pay for Iraq’s overworked medical system and using Health Ministry “facilities and services for sectarian kidnapping and murder.”

The military’s statement did not identify the official, but several Iraqi government officials said he was Deputy Health Minister Hakim al-Zamili, a Shiite with longstanding ties to the Sadr organization. An Interior Ministry official said the authorities in recent weeks had come to believe that Mr. Zamili was using government ambulances to ferry weapons and militants across Sadr City, hiding them from American raids.

Mr. Zamili’s detainment was the latest of several high-profile arrests or killings of commanders from the Mahdi Army in recent weeks. He was the fifth Iraqi deputy or cabinet level official to be arrested and charged with corruption since 2003, according to Iraq’s Commission on Public Integrity, and the first known example of a senior Iraqi official charged with directly contributing to the country’s convulsive sectarian violence.

http://www.nytimes.com/2007/02/09/wo...html?th&emc=th

Thursday, February 08, 2007 - 10:04 PM

Parliament-Session-Update 1
Parliament passes 2007 national budget
By Santa Michael
Baghdad, Feb 8, (VOI)-

Iraq's Parliament approved on Thursday an ID 42,640,000 million (USD 32,200 million) FY 2007 budget.

The budget approval was delayed for almost two weeks for differences among major blocs over two issues, the financial appropriations for the three presidencies and allocations for Iraq's Kurdistan region's guards (peshmerga).
The parliament passed the 2007 budget in Thursday's session with majority after an agreement was reached to move five percent of the total financial appropriations to the parliament presidency office.

Earlier, the parliament speaker today's ordered a private session to give the defense minister, who was present at the session, a chance to answer lawmaker's enquiries openly.

Some legislators asked the Speaker to declare a private session so that the defense minister could answer all enquiries without harming any classified information that he might be mentioning during the session.
Speaker Dr. Mahmoud al-Mashhadani who chaired today's session ordered all journalists out of the parliament hall.

Thursday's session was the last before a month recess.