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

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Bombs kill at least 80 as Shiites mark anniversary of mosque attack
(2/12/07 - BAGHDAD, Iraq) - Thunderous explosions and dense black smoke swirled through the center of Baghdad Monday when at least two car bombs -- one parked in an underground garage -- tore through a crowded marketplace, setting off dozens of secondary explosions and killing at least 71 people, police said. Another bombing nearby killed at least nine.


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The blasts shattered the city center on the first anniversary, according to the Muslim lunar calendar, of the bombing of the important Shiite Golden Dome shrine in Samarra. That attack by al-Qaida in Iraq militants set off the torrent of sectarian bloodletting that has turned Baghdad and much of central Iraq into a battleground.

A column of smoke hundreds of feet wide billowed a thousand feet into the air above the market near the east bank of the Tigris River and near the Central Bank building.

Ambulances and pickup trucks rushed many of the wounded to nearby al-Kindi hospital in the largely Shiite region that has been hit by a series of deadly bombings since the first of the year.

The worst carnage occurred about 12:25 p.m. shortly after the Iraqi government called for a 15-minute period of commemoration for the bombing of the golden domed shrine in Samarra a year ago.

The blast obliterated the shops and stalls in a central building in the Shorja market district and billowing smoke blackened the entire area. Police said at least 71 people were killed.

Debris and clothing mannequins were scattered in thick pools of blood on the floor of the warehouse-type building while men tossed plastic chairs onto piles. Two men carried the limp body of one of the victims, while small fires burned in the rubble on the street outside the building.

A shop owner whose business was set on fire said one of the cars was parked in a garage under a two-story market called Al-Arabi, next to the Iraqi central bank. Mohammed Najaim said flames were coming out of the garage, which holds hundreds of cars.

About half an hour earlier, a bomb hidden in a bag exploded in a crowded area near a popular takeaway falafel restaurant in the Bab al-Sharqi area, not far from Shorja, police said, adding that at least nine people were killed and 19 wounded in that blast.

The attacks, which occurred in busy market districts on the east side of the Tigris River, also came despite stepped up security in the capital as U.S. and Iraqi forces have launched a new operation aimed at stopping the sectarian violence that has been on the rise since the Feb. 22 bombing of the mosque in Samarra.

Some storekeepers were trying to salvage merchandise while others were taking their money in small bags. Police and soldiers were deployed in force, and armed men in civilian clothes were searching and questioning people coming to the scene.

Elsewhere in Baghdad, some roads and bridges in Baghdad were cordoned off after Prime Minister Nouri al-Maliki called for a 15-minute sit-in to commemorate the bombing of the al-Askariya or Golden Dome shrine in Samarra, 60 miles north of Baghdad.

"The explosion of the holy shrine pushed the country into blind violence, in which tens of thousands of innocents were killed," Grand Ayatollah Ali al-Sistani, Iraq's top Shiite cleric, said in a statement issued Monday before the bombings. "No one knows by Allah when this tragedy will be over."

Al-Sistani urged the Iraqi government to rebuild the shrine, whose golden dome was partially torn off by last year's blast. The compound has since been locked and guarded by Iraqi police. But he also called for restraint among those observing Monday's anniversary.

"We call on the believers to express their emotions but to be cautious and act disciplined, and not to do anything to hurt our brothers the Sunnis, as they are not responsible for this awful crime," he said.

About 16,000 demonstrators flooded the main street of the southern city of Karbala, 50 miles south of Baghdad, marching toward two Shiite shrines there. Participants rallied with placards reading, "No to terrorism" and "Iraqis are one people, whether Shiite or Sunni."

Hundreds of policemen guarded the area, and no violence was reported.

Muqtada al-Sadr, the anti-American cleric who commands one of Iraq's most notorious Shiite militias, the Mahdi Army, was scheduled to speak to supporters in the holy city of Najaf later Monday.

In 2006 alone, the United Nations reported that 34,452 civilians were killed in violence that has left Iraq battered and divided along sectarian lines.

On Monday, Iraqi President Jalal Talabani called the shrine bombing that sparked a year of killings "a crime against humanity and Islam together."

"This horrible crime drives us to toward more solidarity and brotherhood," Talabani said in a speech in Baghdad.

"We will stay with you until we accomplish a secured, democratic, federal and stable Iraq away from the darkness of terrorism, dictatorship."

Iraqi Vice President Adil Abdul-Mahdi accused al-Qaida of using the Samarra bombing to "stir sectarianism" and urged Iraqis to rebuild their country.

"We should not stand thwarted. All Iraqis -- Arabs, Kurds, Turkomen and others -- have to move forward to rebuild the new Iraq after it was ruined for decades," he said.

"There is nothing in front of us except to share society together."

Economic reports : Central Bank to intervene to stop the decline of the dinar against father and Laar

MENAFN : The Central Bank of Egypt to the American dollar decline m Iraqi dinar according to the program by the Ministry cut across i conjunction with the Central Bank for the purpose of eliminating the preparer Latt inflation in the domestic market and the adoption of the policy new cash in a bid to improve the rate of the dinar Mega but the dollar after he purchased in the auction of Damocles j inaugurated in the Central seven Iraqi banks and a price key to the yacht by the auction sale Wednesday 14 30 and the purchase price of 1428 dinars to the dollar.

He said the central in a statement that it sold the amount of six million and 500 thousand He bought the amount of $ 1 million and 930 thousand dollars. The Elbe Jan that the quantity sold abroad six Mullah Yin and $ 500 thousand reveals reluctance of the local market for u behind the dollar and Osaka banks purchased for the purpose of conversion He added that the cash sale price is 1441 dinars to the dollar 1. On the other hand, Minister of Finance said that the Iraqi government e expects the increase in the price of the dinar by 13% against the American dollars at the beginning of 2007, after raising the rate of interest to curb the use of the dollar in the economy.

He said the government aimed at the exchange rate to 126 0 dinars to the dollar in the first three months of 200 7 from the current level of 1500 dinars to the dollar, He pointed out that the budget for 2007 and 41 ml of size Yar dollars at the exchange rate assumed in 1260 dinars against father Laar, and that the budget will be established on the basis of the rate of 1260 dinars. a per dollar and 50 dollars per barrel of oil.

He added that the Central Bank has started to raise interest rates from in 12% to 16% and that there were no immediate plans to further raise a for the benefit and that the Iraqi dinar is used instead m n the dollar also increased the value and will contribute to alleviating inflation, which now stands at 56%. noting that the aim of raising interest rates is to promote a for dinars against the dollar and curb inflation and to strengthen the confidence of a for the Iraqis in the local currency.

older i think but still good and referring to budget of 2007

Books : nakr2004 on Monday, February 12, 2007-5:24 PM BT
We : budget 2007 allocated three trillion of oil and trillion of Cher B
Baghdad - (Voices of Iraq)

A Unadim Kana, a member of the Committee on Investment and Construction in the G7 Les House today, Monday, Balancing 2007 allocated w for Atha trillion Iraqi dinars to the Ministry of Oil, while dedicated T. more than one trillion dinars to the Ministry of Electricity.
"He added, we News Agency (Voices of Iraq) Independent , "The budget approved by the House of Representatives week, the pain Lage for 2007 allocated three trillion Iraqi dinars Luz Are oil and trillion to the Ministry of Electricity. "
"He said, "while the budget allocated to the Ministry of Education the amount of (2295) billion Iraqi dinars and the Ministry of Agriculture (137) billion Iraqi dinars to the works and municipalities (466) Milli TR and the Ministry of Environment (17) billion. "
The Council approved its majority in the House of Representatives on Thursday last year's budget (2007) before he raised Alberlma n sittings for a month, the end of the second legislative chapter.
"The Chairman of the Finance Committee of Parliament, Dr. A. Yad Samurai earlier (the voices of Iraq) that "the the Iraqi budget for the current year is estimated at 2007 (42) T. Relion dinars (42 thousand billion dinars), while the expenditure (51.7) trillion deficit hit less than ten trillion dinars. "

Translated version of http://www.aswataliraq.info/

Originally Posted by kiko

Guys I was watching the news saturday evening 10/2/2007.

It was about Iraq. They interviewed and followed a poor lady and filmed her house etc.

This was what catched my eye, almost fell of my chair.

She was telling that she bought Gas for 2 Dinars!!

Now I found this article of today VOI.
I quote:


So if official price is 3000 dinar right now at for example rate of budget of 1260:1, then gas cylinder cost $ 2.38

How the hell is it possible that she buys it for 2 dinars.
Could it be that it RV already in Iraq???

Then 1 dinar = about $ 1.20

Thanks Kiko,
I thought we had someone on this site in Iraq (military) can we get any confirmation from them as to the cost of goods changing in Iraq?

Thanks
JD

WmKnowles: I have not seen the CBI fail to cover bids before. I would value your opinion on this.
Thanks

Iraq-Currency Bank fails to cover bids for dollar in Iraqi auction-trader By Dergham Mohammed Ali Baghdad, Feb 12, (VOI) - Dollar demand was sharply lower on Monday in the central bank daily auction to $33.380 million compared to $63.200 million on Sunday as the bank failed to cover bids for dollar. In its daily statement on Monday the bank said it only covered bids which were $33.365 million in cash at an exchange rate of 1,288 dinars per dollar, unchanged from Tuesday. The bank said in the statement it failed to cover bids for $15,000 in today's session. Fifteen banks participated in Monday's auction and none offered to sell dollar. Ali al-Yaseri, a trader at the auction, blamed the decline in today's demand for dollar for what he described as "the central bank's failure to cover bids made in the daily auction for dollar."

Originally Posted by AlwaysDreaming

WmKnowles: I have not seen the CBI fail to cover bids before. I would value your opinion on this.
Thanks

Iraq-Currency Bank fails to cover bids for dollar in Iraqi auction-trader By Dergham Mohammed Ali Baghdad, Feb 12, (VOI) - Dollar demand was sharply lower on Monday in the central bank daily auction to $33.380 million compared to $63.200 million on Sunday as the bank failed to cover bids for dollar. In its daily statement on Monday the bank said it only covered bids which were $33.365 million in cash at an exchange rate of 1,288 dinars per dollar, unchanged from Tuesday. The bank said in the statement it failed to cover bids for $15,000 in today's session. Fifteen banks participated in Monday's auction and none offered to sell dollar. Ali al-Yaseri, a trader at the auction, blamed the decline in today's demand for dollar for what he described as "the central bank's failure to cover bids made in the daily auction for dollar."

Maybe the CBI is out of dollars?

Think We're Losing Iraq? Take a Look at the Dinar
By YOUSSEF IBRAHIM
January 19, 2007


War rages in Iraq. America is preparing to launch an offensive in Baghdad, Iranians are infiltrating the country, and, according to the United Nations, civilians in Iraq are dying at a rate of 100 people a day.

Yet the Iraqi currency is rising in value.

Tuesday, the rate of exchange had reached 1,308 dinars to the American dollar — up from 1,470 last November. Money changers in Baghdad say they cannot keep up with the demand and that Iraqis who used to hang on to their American dollars for dear life are rushing to exchange them.

What gives?

The answers are as murky as anything in Iraq, and the actions of both good and bad guys seem to be helping the dinar.

[Continued from page 1 of 3]

On the good guys' side, the Iraqi Central Bank is getting its act together after having built foreign currency and gold reserves of at least $16 billion, up from a mere $5 billion in 2005. That is serious enough to create a strong backbone for the local currency. On its Web site, the central bank noted that it has increased its main interest rate to 16% from 12% — a move that has boosted the dinar, too.

For its part, the American Army, or some units of it, is beginning to pay contractors in "dinar checks" instead of dollars. That has the double benefit of reviving the moribund banking system — you've got to go to a bank to cash it — while boosting the local currency.

Bad guys are doing their bit too, interestingly.

Corruption is said to account for perhaps as much as 500,000 barrels of daily oil production "disappearing," which means stolen. Even when disposed of at a discount, this stolen oil would fetch a minimum of $20 million American dollars a day for those corrupt officials siphoning it off. Experts are certain that not all of this leaves the country, however. At least half the money ends up being "recycled" into the Iraqi black economy to buy loyalties, services, arms, protection, and villas with swimming pools. In the end, this money creates jobs and demand for more dinars.

Ironically, both Iran and Syria, which are working hard to undermine Iraq, are boosting the dinar too. By pumping millions of dollars to support Shiites and Sunni insurgents, buy arms, and make bombs, they are also ratcheting up demand for dinars, since the fighters, the militias, and the secret cells all need to be paid in local currencies instead of dollars so as to keep a lower profile.

The biggest spender in town, the American Army, seems to be deliberately helping with the new pay-in-dinar policy, as noted by Major Richard Santiago, commander of 3rd Finance Company, 3rd Soldier Support Battalion, Division Support Brigade. "Issuing dinar check payments improves the economic and financial stability of Iraq by promoting the Iraqi banks while using their local currency. It also decreases the cash requirements our finance offices need in order to meet mission requirements," Major Santiago told the defense-oriented Web site GlobalSecurity.org a few days ago.

Continued from page 2 of 3]

Of course, the dinar has a long way to go against the dollar. In its heyday in the 1980s, one dinar fetched almost three dollars compared to the present — reverse — ratio of one dollar to more than 1,300 dinars.

How long this is going to last is anyone's guess.

It could be argued that, in a sinister way, everything terrible that could have happened in Iraq has happened, so what else could sap confidence in the dinar — short of an abrupt American withdrawal? A good point indeed.

The same logic applies to oil, which has been falling in price like a rock even though demand has not diminished. As with oil, the dinar was pushed by psychological factors that attached a monetary premium devaluing it. As Iraqis get used to the fear, the premium lifts.

Should a whole new batch of catastrophes hit the country, though, the dinar may tumble again, as other experts firmly believe.

"It is a major train wreck waiting to happen," co-director of the Institute for Applied Economics and the Study of Business Enterprise at Johns Hopkins University in Baltimore, Steve Hanke, told Fox News.


Think We're Losing Iraq? Take a Look at the Dinar - January 19, 2007 - The New York Sun

RockyBB

Bank to encourage Iraqis build houses through loans

By Mohammed Hameed

Azzaman, February 12, 2007

The government has announced its willingness to extend loans to Iraqis willing to build new houses.

The state-run Real Estate Bank has promised to cover up to 75% of the cost and that the loans will be available to all Iraqis without discrimination.

The decision comes shortly after the parliament passed this year’s budget of $42 billion dollars, which the government says is the biggest in Iraq’s history.

Economists praised the move, saying it may reinvigorate the property market following years of stagnation.

There is a shortage of vacancies in the country particularly in areas enjoying relative security such the Kurdish north and some cities in southern Iraq.

However, even in violence-hit areas, many families still share one house and it is normal in the country for one family to live in one single room.

The bank has said it will pay up to 30 million dinars (approx. $23,000) to Iraqi families who meet its conditions.

The bank has not specified its terms but apparently it is considering procedures to secure that the beneficiaries will pay back.

A source at the bank said it would prefer initially to extend loans to government employees.

“Our aim is to contribute to the solving of the housing crisis,” the source, refusing to be named, said.

http://www.azzaman.com/english/index...02-12\kurd.htm

Here is article from budget at 1260 + $ 0.50 oil, was asked for it!

Strike expected increase dinar rate

Baghdad December 11 December / Reuters /-Minister said a for the financial Iraqi government expects that the increase in the price of a for dinars by 13% against the dollar by Awa Fal 2007 after raising interest rates to curb the use of dollars in the economy and curb inflation.

The Minister informed the statement Baqir Jabr strike today, the Reuters two that the government aimed at the rate of exchange to 12 60 dinars to the dollar in the first three months of 20 07 from the current level of 1500 dinars to the dollar.

He said that the size of the budget in 2007 to 14 billion dollars assumes the exchange rate at 1260 dinars to the dollar host a that the Cabinet would discuss the draft budget on Els a decision in the hope of lifting to the parliament next week.

He said in an interview that the budget will be based on the price of 12 60 dinars and $ .5 dollars per barrel of oil with you Age 1.7 million barrels per day.

He added that the Central Bank started raising the interest rate of 12 P j% to 16% currently.

Jabr said that there were no immediate plans to further raise Alfad e. According to the bank's Internet site has grown S. Er prime rate to 16% from 12% P j November 8th November.

He said that the aim of raising interest rates is to promote religion dollarization left to fight and curb inflation and to strengthen the confidence of Abra Kien in the local currency.

He said that any economy depends on the dollar is weak.
He added that the Iraqi dinar is now used instead of a dollar value increase and will contribute to the all eviation of a for inflation, which now stands at 56%.

The rate of inflation in Iraq 76.6% in August August.
But the sectarian violence claiming the lives of more than 100 Iraqi Yu Mya and threatens to plunge the country into civil war. Widespread violence and prevent the entry of foreign investments in the oil-rich country.

A report recently issued by the United Nations that rates a unemployment and poverty are escalating in Iraq. Corruption was also rampant and the state-owned industries fulfilled recognizing efficiency. Oil is the main source of income but sector suffers from years of mismanagement and violence.

The Iraqi minister said that there is also a psychological terms Iraqis need to trust in the currency when m which will approve or high.

He also warned the International Monetary Fund, which is supporting the Baghdad agreement conditional loan worth 685 million of that aggravation Altdkh m may undermine the economy and hamper the goal of improving conditions brilliance Shih Iraqi citizens.

The government is also facing another problem is the high contagious l unemployment, especially among young people. Officials say that the unemployment rate between 30% and .4%.

Jabr said he was not worried about the repercussions of possible negative Laar Tva dinar because the Central Bank reserves Ka to support the currency.

He went on to say that the dinar is strong and the Central Bank of Abra Afterward one of the best central banks in the region with the exception of a the central banks in the Gulf as it has reserves estimated Ha 15 billion dollars of hard currency to the exclusion of Damocles Tom is dedicated to the support of the dinar

This was a great read and something I have been waiting to see. I know most are hoping for an over night 1:1 but this method is more realistic. It seems that they have a plan in place and that a reval is already in the PROCESS.