Thread: Iraq/Dinar News. 09/05 to 01/14/07

For two days they have moved an unusal amount of USDs into the local banks. Maybe we'll see the same thing in the next auction. This is what you would expect them to do prior to a RV. There will be a demand for USD should the dinar rise in value. Put yourself in their place. Would you not want to have some dollars just like people in other countries like mexico ect.? Iraqis will want USDs (to some extent) and that is why currency reserves were so important in previous discussions. However, once the first RV takes place, there WILL be many that WILL expect the dinar to rise further and will elect to hold. So the demand for the USD may or may not be huge. Another issue is that this reduces the amount of dinar in the economy which helps to reduce inflation. And is probably the first step in taking the large denominations out of circulation. So lets watch the upcoming auctions in the next few days. There is no other reason for this amount of USDs to be moved to the local banks. Thank you.

Originally Posted by Wm.Knowles

For two days they have moved an unusal amount of USDs into the local banks. Maybe we'll see the same thing in the next auction. This is what you would expect them to do prior to a RV. There will be a demand for USD should the dinar rise in value. Put yourself in their place. Would you not want to have some dollars just like people in other countries like mexico ect.? Iraqis will want USDs (to some extent) and that is why currency reserves were so important in previous discussions. However, once the first RV takes place, there WILL be many that WILL expect the dinar to rise further and will elect to hold. So the demand for the USD may or may not be huge. Another issue is that this reduces the amount of dinar in the economy which helps to reduce inflation. And is probably the first step in taking the large denominations out of circulation. So lets watch the upcoming auctions in the next few days. There is no other reason for this amount of USDs to be moved to the local banks. Thank you.

I think you are right about that.
Here is an very good article about Iraq and IMF that quotes:

Economic Warfare: Iraq and the I.M.F. | Voices for Creative Nonviolence

...it remains important that the C.B.I. [Central Bank of Iraq] take decisive measures to contain it before inflationary expectations become entrenched, either by an effective tightening of monetary conditions and / or by exchange rate action. The C.B.I. will need to tighten monetary conditions further if inflation does not start to come down soon.

Adster recently also noticed this in the offical IMF documents.

Now we know the inflation is extremely high and has to be handled right now.
I think that what we see by these auctions is that they have started the actions according to these statements and started with tightening the monetary conditions.

So they are reducing the inflation by these auctions and I think they are preparing the second statement the exchange rate action which will be our RV.

Just a thought! Again I am not an expert on this!

I would also like to add that the CBI will not let those USDs remain out in local banks for an extended period. There is no need for this amount of USDs to be out there in the local banks, so one could surmise that this move is for the short term. Is an RV close at hand? In my opinion, YES.

I have the feeling that Iraq is doing everything to make a whole fresh start from 1/1/2007.

We know all the laws will be enacted and ICI enacted, we see the world wanting to come in and do big business over there.

I believed the fiscal years are also changed. The new fiscal year start on the 1/1/2007.

And they want to make the Saddam regime history by executing the death penalty by the end of the current year. Here is the link:

Sotaliraq.com

We see preparations now regarding the economy by the CBI and I do believe the RV will come and come soon.

I really hope that Iraq can make a whole new fresh start from 1/1/2007!!

So everybody hang in there because the end of the year will be very nice for all of us and the Iraqi people.

Could someone xplain to me what all this means, please? I am a little dumb..

I thought that in case of an RV, the DINARS would be bought back ...meaning...I get the dinars that are out there on the market back ( most of it large denoms), I revalue, I let small denoms out at revalued rate. Wouldn't that be logical?

Why would I buy US dollars if I know that my dinar will revalue?

Please enlighten me....

Did anyone see these value?

Number of banks 20 -----
Auction price selling dinar / US $ 1466 -----
Auction price buying dinar / US $ 1464 -----
Amount sold at auction price (US $) 97.010.000 -----
Amount purchased at Auction price (US $) 3.000.000
Total offers for buying (US $) 97.010.000 -----
Total offers for selling (US $) 3.000.000

Originally Posted by kiko

I have the feeling that Iraq is doing everything to make a whole fresh start from 1/1/2007.

We know all the laws will be enacted and ICI enacted, we see the world wanting to come in and do big business over there.

I believed the fiscal years are also changed. The new fiscal year start on the 1/1/2007.

And they want to make the Saddam regime history by executing the death penalty by the end of the current year. Here is the link:

Sotaliraq.com

We see preparations now regarding the economy by the CBI and I do believe the RV will come and come soon.

I really hope that Iraq can make a whole new fresh start from 1/1/2007!!

So everybody hang in there because the end of the year will be very nice for all of us and the Iraqi people.

In my opinion they can't wait until 1/1/2007. According to the International Compact they have to be able to prove they can support themselves and prosper. They cannot do this with worthless currency. Also the big investors are ready to come in now.....every day that they are not there is lost revenue. Also according to the compact, the debt that remains is between Iraq and the creditor country...Iraq is responsible for making those payments. They can't pay with worthless currency and they need big oil companies to come in and develop the untapped reservoirs of oil and natural gas reserves. Everyday that Iraq sits on their hands without increasing their currency value or allowing foreign investment in causes a loss of phenomenal amounts of revenue. I think somebody forgot to tell the Iraqi movers and shakers that they are a wealthy nation but they have to open the doors and value their currency what it is worth.

Originally Posted by CharmedPiper

In my opinion they can't wait until 1/1/2007. According to the International Compact they have to be able to prove they can support themselves and prosper. They cannot do this with worthless currency. Also the big investors are ready to come in now.....every day that they are not there is lost revenue. Also according to the compact, the debt that remains is between Iraq and the creditor country...Iraq is responsible for making those payments. They can't pay with worthless currency and they need big oil companies to come in and develop the untapped reservoirs of oil and natural gas reserves. Everyday that Iraq sits on their hands without increasing their currency value or allowing foreign investment in causes a loss of phenomenal amounts of revenue. I think somebody forgot to tell the Iraqi movers and shakers that they are a wealthy nation but they have to open the doors and value their currency what it is worth.

I agree with you on that. For poverty, inflation they have to do it now.
What, it already should have done!!

But don´t forget that they can delay as no other. First the poverty was 20% now 60% and they haven´t done anything yet.

I hope on actions this week but it is still Iraq.

Why would an Iraqi trade his dinars for USDs. The American dollar is still thought to be a hedge against economic disruptions in many countries. They will want to have dollars just like some of us might want to have a portion of our money is swiss franks. If you have been in other countries you will always find a quick acceptance of the american dollar. Why would you buy dollars if you thought the dinar was going to continue to revalue? Many in other countries have seen their currency inflate, deflate and sometimes become worthless (as in Iraq). People in other countries are more aware of currency movements than most in america. They have learned that the value of money can go either way. Again, there is no way to predict the demand for USDs, it might be small, but this is what the CBI is doing. They are pre-positioning dollars into the local banks in anticipation of an increased demand for dollars, just what wold probably take place should they RV the currency.

COMPARISON OF LAST 3 AUCTIONS....ANY IDEAS OR THOUGHTS.

Number of banks:
11/2/07 (16)
11/7/07 (14)
11/8/07 (20)

Auction price selling dinar / US
11/2/07 $1470
11/7/07 $1468
11/8/06 $1466

Auction price buying dinar / US
11/2/06 $ ----- -----
11/7/06 $1466
11/8/06 $1464

Amount sold at auction price (US $)
11/2/06 70.245.000
11/7/06 109.150.000
11/8/06 97.010.000

Amount purchased at Auction price (US $)
11/2/06 -----
11/7/06 3.000.000
11/8/06 3.000.000

Total offers for buying (US $)
11/2/06 70.245.000
11/7/06 109.150.000
11/8/06 97.010.000

Total offers for selling (US $)
11/2/06 ----- -----
11/7/06 3.000.000
11/8/06 3.000.000

US Dollar
USD
11/2/06 1470.000
11/2/06 1469.265
11/7/06 1470.000
11/7/06 1469.265
11/8/06 1468.000
11/8/06 1467.266

Originally Posted by CharmedPiper

COMPARISON OF LAST 3 AUCTIONS....ANY IDEAS OR THOUGHTS.

Number of banks:
11/2/07 (16)
11/7/07 (14)
11/8/07 (20)

Auction price selling dinar / US
11/2/07 $1470
11/7/07 $1468
11/8/06 $1466

Auction price buying dinar / US
11/2/06 $ ----- -----
11/7/06 $1466
11/8/06 $1464

Amount sold at auction price (US $)
11/2/06 70.245.000
11/7/06 109.150.000
11/8/06 97.010.000

Amount purchased at Auction price (US $)
11/2/06 -----
11/7/06 3.000.000
11/8/06 3.000.000

Total offers for buying (US $)
11/2/06 70.245.000
11/7/06 109.150.000
11/8/06 97.010.000

Total offers for selling (US $)
11/2/06 ----- -----
11/7/06 3.000.000
11/8/06 3.000.000

US Dollar
USD
11/2/06 1470.000
11/2/06 1469.265
11/7/06 1470.000
11/7/06 1469.265
11/8/06 1468.000
11/8/06 1467.266

Could be no RV at all just a slow steady rise in the price in country first