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

Originally Posted by Nomrah I

Just a question - Why would they stock local Iraqi banks with dollars? If it RV's would the Iraqi people want dollars? Talk me through this folks, I'm a bit slow today. I understand the concept of removing the dinar from circulation - but having plenty of usd on hand doesn't really make sense to me unless it's just a byproduct of removing dinar? Help?

Best guess...
US contractors, and Service Members are gonna want the green stuff, and Iraq (CBI) is gonna want those dinars back.

Originally Posted by worf

I am kind of wondering the same thing. My fear is that they are going to let go to the other cbi rate announced earlier this year of 1 dollar = 1365 dinars by the end of 2006 without actually r/ving big time. I hope they aren't going to do that because as already discussed at ROLclub, it would be way too little too late. Hopefully what, this is really showing is, as they pull excess dinar out of the market, the value is increasing. If this is true, it makes me wonder why in the !@#$% did they wait so long and cause so much suffering and chaos?? A far better scenario would be to pull out liquidity from the economy as discussed by WM., and then r/v to a really good high rate!!! That is what I hope for anyway!!!

worf

Interesting. I speculate that the CBI will continue this circulation contraction until they overtake the inflationary pressure. At that point it might be possible to RV.

Even though inflation will be subdued they still have the "Black Market" issue to Contend with. As long smugglers can take undervalued goods and sell them in bordering nations for huge profits they will continue to do so until they can make those profits in Iraq. Those goods may be expensive in Iraq but those prices are undervalued compared to the regional pricing. The Good part is that the Government already recognizes this issue and RV with pricing parity fixes it.

Originally Posted by Offshore-Wealth.com

Interesting,

No word from the Kurd's on 10K, so another day, another no dinar day for Iraqi's, sure is strange, but a good strange.

Good luck to all, Mike

Very strange. How many times have they said they've giving it out but haven't followed though???

All i can say is this non-compliance (no 10k distribution) must have some other significance to it than just giving out 10k dinar...

Originally Posted by $onedaysoon$

what is Article 140??

Maliki : Our government is committed to apply all the items of the constitution, including Article 140

محمد إحسان للمالكي: المادة 140 نص دستوري ويجب تنفيذها خلال المدة المحددة لهاMohammad Ahsan of the owners : article 140 constitutional text must be implemented within the period specified



19:45 2006.19:45 2006. 11 .11. 15 15

PUKmedia هيمن امين/ اربيل:PUKmedia dominated Secretary / Irbil :

Dr. Mohammad Ahsan met with the Minister for areas outside the territory Cordstan - Cordstan representative in the territory of the Supreme Committee for the implementation of Article 140 of the Iraqi Constitution - with Dr. Nouri Al-Maliki the Prime Minister of Iraq, the presence of Ms. Nermin Othman, Minister of the Environment of the Iraqi government.

At the meeting yesterday, 14 / 11 Dr. Mohammad Ihsan, Ms. Nermin Othman opinion on the people Corstan hindrances and obstacles impeding the implementation of Article 140 of the Iraqi Constitution and the normalization of the situation in the city of Kirkuk to Dr. Nouri Al-Maliki, emphasizing the need to learn the presidency of the Iraqi Council of Ministers that there are obstacles Toe faced Committee for the Implementation of this article and the need to speed up the development of appropriate solutions and radical them.

Crossed and in the meeting expressed their rejection of any change occurs in the formation of the Higher Committee for the implementation of Article 140 and any change or interference in the work of the Committee by Sitng big problems and will raise the wrath of the people Cordstan.
Wali Muhammad Ahsan of the owners that the implementation of Article 140 is constitutional text must be implemented within the period specified.

For his part, Dr. Nuri al-Maliki of Iraqi Prime Minister full support for the implementation of Article 140, saying that his government is committed to the implementation of all items of the Iraqi constitution, including the implementation of Article 140 and was not even convinced some.

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Article 140
It's on page 42

Originally Posted by MOM2TWO

Would someone kindly explain to me why the Saudi Arabia currency is worth about a US quarter when the have the largest oil reseves in the world? I am confused as usual. Thanks in advance!!

I assume you're meaning my post from earlier....

Well, it looks that way because 1 Saudi riyal = 0.266645335 USD.

So, 1 USD = 4 SAR (Saudi Arabia Dollars).

Hope this makes sense...

Originally Posted by wciappetta

Interesting. I speculate that the CBI will continue this circulation contraction until they overtake the inflationary pressure. At that point it might be possible to RV.

Even though inflation will be subdued they still have the "Black Market" issue to Contend with. As long smugglers can take undervalued goods and sell them in bordering nations for huge profits they will continue to do so until they can make those profits in Iraq. Those goods may be expensive in Iraq but those prices are undervalued compared to the regional pricing. The Good part is that the Government already recognizes this issue and RV with pricing parity fixes it.

Ward,
I think your on to something.....might just be that with all the buybacks they are trying to significantly remove dinar from circulation and have it held within the CBI and system. Allowing them to reduce the burden on the system, once everything else is inplace for the R/V.
LIT

Originally Posted by Treater

So how far back can you see in the history? I see it starting from April of 2006.

The doc. are containing 21 pages. January 1-2004 are the first date.

Originally Posted by Nomrah I

Just a question - Why would they stock local Iraqi banks with dollars? If it RV's would the Iraqi people want dollars? Talk me through this folks, I'm a bit slow today. I understand the concept of removing the dinar from circulation - but having plenty of usd on hand doesn't really make sense to me unless it's just a byproduct of removing dinar? Help?

This is a very good question. The banks will want dollars for a couple of reasons. First having the dollars in case of a RV will allow Iraqis to go to a banks and change thier dinars for USDs. Just like we can change from one currency to another at most international banks. Local banks does not "dollarize" the economy. In a previous post I explained that a bank (after expenses) only has two options for its excess money. One is loan demand. they simply loan money to credit worthy cusomers. The second is that banks buy bonds and securities. This is referred to as secondary liquidity. The CBI exchanges dollars for excess dinar and the banks take those dollars and buy t-bills, GOI bonds etc. While I was in the securities business this is excatly what I did, sell US Gov obligations to banks whose local loan demand was weak. This is good news for those who own bank stock. It implies that the local banks have been/are making money.

Originally Posted by MrsCK

This mystery get more nuts every day or either that I am.

At the IAMB website under the Document tab is a 31 page document (third on down) that just SHOWED UP hmmmm. Ok there is no DATE of this document (wonder why) But after reading all 31 pages there was a statement of Letter on Sept. 21, 2006. So this document must have been wrote after 9/21. Plus in the link it has 103006 - so would this mean 10/30/06 like most pdf files have the date in them? All I do know is it just showed up today - unless someone has seen it before.

This really made me go - FARM JIG!!
Page 12
G - DFI accounts at FRB NY
We agree with observation on establishing bank accounts for the DFI based on letters of former CPA dated 28-11-2003. Ministry of finance and the CBI have no details about the movement and source of these funds. CBI had written to the FRB NY several times to obtain detailed information about accounts since the beginning of its opening and the party which did that without getting any response but utimately E & Y Corporation was porvided with the required information and sending a copy to CBI. CBI approached the FRB NY to close these accounts and transfer their balances to DFI account according to CBI letter no.5/11729 after acquiring approval from ministry of finance according to its letter no. (11564) in 3/9/2006 - Sept. 9th wow

So CBI want control of the money - hmmm

Here is the PDF file

CBI and every part of Iraq is talked about in this document.
This is way to much fun!!

Nice find MrsCK.

I also saw the post of wm.knowles that he also thinks they are already running their own program. I got the feeling this last IAMB meeting is only a formality but that it is all arranged behind those doors.

Think about it. They had the ICI final meetings on the 30/31 of october. At this point they also planned the IMF Article VIII which was first planned in december.

After these meetings we hear about enacting/implementing the ICI in December but we never heard about Article VIII which lifts the restrictions off the currency.

Then comes out that they will negotiate with the EU on the 20th november. Negotiating is the last step to a full membership which requires an international currency.

Then we also had the FIL passed and should be enacted within a month. This FIL is ready but will be announced together with the RV. I am certain of it.

Then we see for the last week that the CBI is buying back dinars and removing from circulation and see movement in the exchange rate, last two days 5 points a day.

Then the CBI and Minister of Finance starts talking about improving the exchange rate and monetary policy.

I know it is speculation, but as mr.knowles already said, there is only 1 more auction this week and there is sunday. He also told us that he felt it like a panic action to buy as much back in a short period.

I personally think that the CBI will do the same tommorow and maybe even Sunday but I think the RV is in process and that it will come this weekend before the EU negotiations on the 20th.

And there is also the BoA that started selling (some and some not but it is a start) and an email from Warka posted today that there will be no ISX trading session also on Monday the 20th.

Hmmmmm, nice and strange things are happening right now, more and more good news is coming out.

This could be our weekend!!!

Originally Posted by CharmedPiper

August and October are indeed missing.

Humm . . . I hope Indira's phone call earlier today [On Page #5] . . .didn't cause them to start to cover up stuff & their butts . . . LOL . . .