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

Originally Posted by bluezzguy

Took the words right out of my mouth Cigarman..

btw.. check your pms..:)

Randy

Nothing in my pm file, resubmit as it was full and I cleared it all.

At the time they did the exchange old currency for new currency 4.5 trillion was exchanged this is all I could find right now.

Originally Posted by Cyberkhan

This makes absolutely no sense. Why would they go to the trouble of reissuing this VERY expensive DE LA RUE currency with the intention of converting to Euros only a few years later and then to transfer to the GCC unified currency a year or two following that.

I put no interest into this article. IMHO this is just someone elses opinion.

Ok,

This is from 2003. What they were trying to show was the options that Iraq had for founding a new economy.

This has no bearing on what is actually going on...this was just an educated inquiry into what was possible to get things rolling over there.

Originally Posted by CharmedPiper

At the time they did the exchange old currency for new currency 4.5 trillion was exchanged this is all I could find right now.

the 4.5 trillion was what was in circulation, and I also remember 9 trillion total printed. Good work Charmed, I thought I remembered correctly, do you have a link to that article?

Originally Posted by cigarman

They even have yesterdays press release on the CBI site! Somethings definetly happening, just don't know what. By the way H2O, not trying to be smart, I just have a hard time explaining things at times because my brain moves faster than my fingers.

Where on the site can i find it?

Originally Posted by cigarman

They even have yesterdays press release on the CBI site! Somethings definetly happening, just don't know what. By the way H2O, not trying to be smart, I just have a hard time explaining things at times because my brain moves faster than my fingers.

Cigarman,

Can't find it on the CBI site. Can you point me or publish a link? If this is on the site....then something is definitely about to happen!!

Originally Posted by H2O_Lover

Iraq-Currency
Dollar demand down amid central bank’s measures to decrease inflation
By Dergham Mohammed Ali
Baghdad, Nov 14, (VOI) – Demand for dollars was lower at the Iraqi Central Bank daily auction on Tuesday to $62.540 million from $110 million in Monday’s auction.
The central bank said in its daily statement it covered all bids which were $32.910 million in cash and $29.630 million in foreign transfers.
The dollar exchange rate was 1,460 dinars , five ticks lower than Monday.
None of the 16 banks that participated in the auction offered to sell dollars.
Mr. Ali al-Yasseri, exchange company owner, told the independent news agency Voices of Iraq (VOI) “the central bank offered to sell dollar today with an exchange rate of 1,460 dinars, five ticks lower than Monday’s, in a bid to decrease the local liquidity amid a series of tough measures by the bank to bring down inflation.”
The Iraqi central bank, Mr. Yasseri said, “made every effort to ensure that banks participating in the central bank daily auction would not offer dollars for sell.”
“Banks’ offers to sell dollars mean letting more local currency to the market,” he added.

Anyone care to comment on this ...sorry i dont have the link it was sent to me in PM...

My understanding is that they, the local banks, sell their dollars then they would get dinars, from the CBI, which of course would be released into the local economy, mainly. The CBI is the banks bank. They, the CBI, sell dollars to the banks to obtain the dinars out of the local economy.
CLM

If you are correct in saying that the CBI has removed one trillion dinar from
circulation in just about one week, leaving approximately 3.5 trillion outstanding, what's to prevent their taking another 3 trillion out of circulation
in the next month, thereby leaving just 500 billion in circulation?

This is a very interesting question. I would think that before the CBI could reduce the quanity of the money supply to this level market forces would come to play and make the currency too expensive. There continues to be a disageement on how much money was printed and how much is in circulation. I remember a report I think was from Chalibi that said 9 trillion was printed. How much is in circulation has been reported around 4.5 trillion. I have also read some extremely larger numbers. In any case, the position that we are watching a very aggressive effort to remove dinar from the economy is still a valid position. Regardless of how much is truly in circulation is not an issue we can control. We can continue to observe the trend and should feel good that the CBI is acting in a responsible way concerning monetary policy. Although I still feel the interventions over the last few auctions have been very dramatic if not a "panic" action. If removal of the dinar was to be monetary policy of the CBI, once they exceded the suggested currency reserves in the original SBA with the IMF they could then have begin removing excess dinar from the economy. As I have said before, I don't think they are stupid, but I do think they are inexperienced. And as I always say, the next couple of days this week are going to continue to be very interesting.

Originally Posted by cigarman

the 4.5 trillion was what was in circulation, and I also remember 9 trillion total printed. Good work Charmed, I thought I remembered correctly, do you have a link to that article?

Currency Exchange Ends

Issued Jointly by the Central Bank of Iraq and the Coalition Provisional Authority

January 15, 2004

Iraqi Currency Exchange: The Facts

Weights and measures

To date around 4.5 trillion new Iraqi dinars ($3 billion) are estimated to be in circulation.

A full box of the new notes (as carried into bank vaults around Iraq) weighs a backbreaking 110lb.

Around one-third of the 10000 tonnes-plus of old currency (around 300,000 sacks) gathered in the course of the exchange has now been verified (checked) and incinerated.

Originally Posted by Drjansson

Where on the site can i find it?

look under the news section.