I believe it's somewhere in the 3.33 USD to one IQD.:smiley:Quote:
Originally Posted by mtgrown
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I believe it's somewhere in the 3.33 USD to one IQD.:smiley:Quote:
Originally Posted by mtgrown
Taking it just a small step further, I was checking out the currency rates this morning in the Wall Street Journal. In the ME currency section there is no currency listed which has a zero as the first digit to the right side of the decimal point except Lebanon. Iran is not listed. We all know what a CF Lebanon is and Iraq is currently in and Iraq is in a similar situation, but I would submit, not as bad.Quote:
Originally Posted by PaulieThaGreat
Iraqi's say they want to return to the former rate. They have the resources to back it up. Barring a total societal meltdown they are going to get there.
The moral of the story, Paulie, dont give up!
Dollars to dinars: We did get the money to Iraq
John B. Taylor
Monday, February 26, 2007
STANFORD, California: Earlier this month, the House Committee on Oversight and Government Reform held a hearing that criticized the decision to ship American currency into Iraq just after Saddam Hussein's government fell.
As the committee's chairman, Henry Waxman of California, put it in his opening statement, "Who in their right mind would send 360 tons of cash into a war zone?" That attracted wide attention, feeding antiwar sentiment and providing material for comedians.
A careful investigation of the facts behind the currency shipment paints a far different picture.
The currency that was shipped into Iraq in the days after the fall of Saddam Hussein's government was part of a successful financial operation that had been carefully planned months before the invasion.
Its aims were to prevent a financial collapse in Iraq, put the financial system on a firm footing and pave the way for a new Iraqi currency.
Contrary to the criticism that such currency shipments were ill-advised or poorly-monitored , this financial plan was carried out with precision and was a complete success.
The plan, which had two stages, was designed to work for Iraq's cash economy, in which checks or electronic funds transfers were virtually unknown and shipments of tons of cash were commonplace.
In the first stage, the United States would pay Iraqi government employees and pensioners in U.S. dollars. These were obtained from Saddam's accounts in American banks, which were frozen after he attacked Kuwait in 1990 and amounted to about $1.7 billion. The second stage was to print a new Iraqi currency for which Iraqis could exchange their old dinars.
The final details of the plan were reviewed President George W. Bush and the National Security Council on March 12, 2003. I attended that meeting.
President Bush approved the plan with the understanding that we would review the options for a new Iraqi currency later, when we knew the situation on the ground.
To carry out the first stage of the plan, President Bush issued an executive order on March 20, 2003, instructing United States banks to relinquish Saddam's frozen dollars. From that money, 237.3 tons in $1, $5, $10 and $20 bills were sent to Iraq.
During April, U.S. Treasury officials in Baghdad worked with the military and the Iraqi Finance Ministry officials — who had painstakingly kept the payroll records despite the looting of the ministry — to make sure the right people were paid.
The Iraqis supplied extensive documentation of each recipient of a pension or paycheck. Treasury officials who watched over the payment process in Baghdad in those first few weeks reported a culture of good record keeping.
On April 29, Jay Garner, the retired lieutenant general who headed the reconstruction effort in Iraq at the time, reported to Washington that the payments had lifted the mood of people in Baghdad during those first few confusing days. Even more important, a collapse of the financial system was avoided.
This success paved the way for the second stage of the plan. In only a few months, 27 planeloads (747 jumbo jets) of new Iraqi currency were flown into Iraq from seven printing plants around the world. Armed convoys delivered the currency to 240 sites around the country, from where it was distributed to 25 million Iraqis in exchange for their old dinars, which were then dyed, collected into trucks, shipped to incinerators and burned or simply buried.
The new currency proved to be very popular. It provided a sound underpinning for the financial system and remains strong, appreciating against the dollar even in the past few months. Hence, the second part of the currency plan was also a success.
The story of the currency plan is one of several that involved large sums of cash. For example, just before the war, Saddam Hussein stole $1 billion from the Iraqi central bank. American soldiers found that money in his palaces and shipped it to a base in Kuwait, where the U.S. Army's 336th Finance Command kept it safe. To avoid any appearance of wrongdoing, American soldiers in Kuwait wore pocket-less shorts and T-shirts whenever they counted the money.
Later, American forces used the found cash to build schools and hospitals, and to repair roads and bridges. General David Petraeus has described these projects as more successful than the broader reconstruction effort.
But that wasn't the only source of dollars. Because the new Iraqi dinar was so popular, the central bank bought billions of U.S. dollars to keep it from appreciating too much. As a result, billions in cash accumulated in the vaults of the central bank. Later, with American help, the Iraqi central bank deposited these billions at the New York Federal Reserve Bank, where they could earn interest.
Finally, when Iraq started to earn dollars selling oil, the United States transferred the cash revenue to the Finance Ministry, where it was used to finance government operations, including salaries and reconstruction.
Many of these transfers occurred in 2004, long after the financial stabilization operation had concluded. Iraqi Finance Ministry officials had already demonstrated that they were serious about keeping the controls they had in place. The 360 tons mentioned by Henry Waxman includes these transfers as well as the 237.2 tons shipped in 2003 in the stabilization.
One of the most successful and carefully planned operations of the war has been held up in this hearing for criticism and even ridicule.
As these facts show, praise rather than ridicule is appropriate: praise for the brave experts in the U.S. Treasury who went to Iraq in April 2003 and established a working Finance Ministry and central bank, praise for the Iraqis in the Finance Ministry who carefully preserved payment records in the face of looting, praise for the American soldiers in the 336th Finance Command who safely kept found money, and yes, even praise for planning and follow-through back in the United States.
Sorry for my english writing but im from Norway!!!!!! Its al over the news in norway to night ....the iraq parliment has finaly agread of the oil law told the iraq vise prim minister Barham Sahli Reuters he says they wil implement it whitin may and in Norway they says it will mean a lot for DNO the Norwegian oil company that has gambeld and drilling foe oil in iraq
WOOT WOOT WOOT
JIIIIIIIIIIIIIIIIIPPPPPPPPPPPPPPPPPIIIIIIIIIIIIIII IIIIII
Thank you posteing! Always good to hear stories from other parts of the globe!Quote:
Originally Posted by simen1
Quote:
Originally Posted by PAn8tv
I love this article. So the first and second stages were major successes...now for the third part. With the HCL going to parliment (god willing) we shall see what the real reason for all of this was and is...
Keep those fingers crossed and the dinar safe....we are in for a rollercoaster ride over the next few months (leading up to the oil summit).
Ok. They say that the Iraq currency during Sadams era is incorrect and that it was an artificial rate set by Sadam himself.
But I have been seing this statement for over 3 years now.
it is the hope of many Iraqis in restoring currency was Mya Yugoslavia and strength they were during Alsafi intents and 1980s, as the official exchange rate of the dinar is more than three de lari one of the dinar
Now looking at this chart PTG provided as:
Quote:
Originally Posted by PaulieThaGreat
To me, it is just another way of the Iraqis saying that they want a high exchange rate and they are referencing the 80's, which is between $3.22 and $3.39, so that there will be no arguement from anyone regarding artificial rate set by Sadam.
Whether they plan to get there from the time they RV or after number of years, it looks to me like they want a final rate to be that high because that chart shows that they have been there before and that know they can be there again!
Just thought of sharing my observation and gut feeling.
Remember, Iraqis are very rpoud people and their exchange rate do really matter to them!
Mtgrown
Iraqi Cabinet Approves Draft of Oil Law
New York Times
By EDWARD WONG
Published: February 26, 2007
BAGHDAD, Feb. 26 — The Iraqi cabinet approved a draft of a law today that would set guidelines for countrywide distribution of oil revenues and foreign investment in the immense oil industry.
The endorsement marked a major agreement among the country’s ethnic and sectarian political blocs on one of Iraq’s most divisive issues.
The draft law approved by the cabinet allows the central government to distribute oil revenues to the provinces or regions by population, which could lessen the economic concerns of the rebellious Sunni Arabs, who fear being cut out of Iraq’s vast potential oil wealth by the dominant Shiites and Kurds.
The law also grants regional oil companies the power to sign contracts with foreign companies for exploration and development of fields, opening the door for investment by foreign oil companies in a country whose oil reserves rank among the world’s top three in size.
Iraq has 80 known fields, 65 of which will be offered up for bids for development contracts once the draft law is approved by the Iraqi Parliament, said Hussain al-Shahristani, the Iraqi oil minister. The 275-member Parliament is in recess but is expected to look at the draft once it reconvenes next month, Mr. Shahristani said. Ahead of today’s cabinet vote, the main Sunni, Shiite and Kurdish political blocs had agreed to work together to ensure that the law passes Parliament in an expeditious manner, he added.
Since last year, senior Bush administration officials and top American commanders here have said a new oil law is crucial to the country’s political and economic development, and they have been pressuring Iraqi leaders to make passage of the law a priority. In recent weeks, Ambassador Zalmay Khalilzad, the senior American envoy here, has been in intense talks with Kurdish leaders in the north to overcome their objections to the draft. Iraqi officials say Mr. Khalilzad’s negotiations were crucial to winning unanimous cabinet approval today.
Since the American-led invasion of 2003, Iraqi politics has often been split bitterly along ethnic and sectarian lines, and that kind of conflict could still stall passage of the oil law in Parliament. Drafts have been debated for months by a committee overseeing the writing of the law before the cabinet finally approved it.
“At the end of the day, we all supported this thing because it’s workable for all the parties and is all-inclusive,” said Barham Salih, a deputy prime minister and the head of the committee.
Several members of the committee said in interviews that they were confident that Parliament would ultimately endorse the law, but perhaps only after heated arguments.
“It will be tough,” Mr. Salih said. “I want to admit it and I want to recognize that. It will be an interesting roller coaster, my friends.”
The writers of the draft law tried to balance regional control of oil versus oversight by the central government, an issue directly tied to the widening violence in Iraq.
The minority Sunni Arabs, who ruled Iraq for decades before the toppling of Saddam Hussein and are now leading the insurgency, have chafed at rule by the Shiites and Kurds partly because they fear those two groups might hoard oil wealth for themselves. Most of Iraq’s crude oil reserves lie in the Shiite south and Kurdish north. Sunni Arab leaders have resisted attempts by the Kurds and some Shiite politicians to create laws allowing for greater regional autonomy.
The draft oil law says that all revenues from current and future oil fields will be collected by the central government and redistributed to regional or provincial governments by population, in theory ensuring an equitable distribution of oil. This could help calm Sunni Arabs hostile to Kurdish and Shiite autonomy.
The attitudes of Sunni Arabs could also soften if more oil exploration is done on their lands. Iraqi officials recently increased their estimates of the amount of oil and natural gas deposits on Sunni Arab territory after paying tens of millions to foreign oil companies to re-examine old seismic data across the country and retrain Iraqi petroleum engineers.
The drafters of the law reached agreement on the principle of revenue-sharing fairly early in the process. Much more contentious was the issue of signing oil contracts. The Kurds, who have enjoyed de facto independence in the mountainous north since the Persian Gulf war ended in 1991, argued strongly for regional governments to have full power in signing contracts with companies to develop oil fields. Sunni Arab leaders insisted on keeping this power in the hands of the Oil Ministry, and the Shiites fell somewhere in the middle.
The draft law has a compromise: regions can enter into contracts, but a powerful new central body called the Federal Oil and Gas Council would have the power to “prevent” the contracts from going forward if they do not meet certain prescribed standards, Mr. Salih said. A panel of oil experts from inside and outside Iraq would advise the federal council on the contracts.
Much of the wrangling over the draft law stemmed from the minutiae of language. Kurdish leaders insisted that the law not give the federal council the power to “approve” contracts signed by the regional governments. The council should only be able to “reject” contracts, the leaders said. In the end, Kurdish and Arab leaders compromised by agreeing to give the federal council the power to “prevent” contracts, Mr. Salih said.
This is the greatest news i've heard. This is all over the major news media. ITs almost as if the cabinet approval outwieghs the actual vote in parliament. I believe that the cabinet approval WAS the big hurdle for a R/V. The oil minster himself says that passage will not only hapen but it will happen quickly. Here i my first woot. WOOOOOTTTTT:party: :party: :beer: :beer:
If they peg the dinar does this mean we can't cash in here we have to go over there Iraq to exchange?
No, if they do it means they then have an "official" exchange rate which should be convertable at any bank in the U.S. that handles foriegn exchange.Quote:
Originally Posted by buddy54