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

Our Christmas wish for a very Merry Christmas

We Wish you a Merry Christmas and a Happy New Year!

Originally Posted by Adster

Well this is Iraq we're talking about. I was told back in May/June everything was ready to go for a reval and they delayed it, and here we are still. You never know with these people, but their time is running out.....

The song above at the site on "angelfire" is for the "DinarGang"!
So maybe this weekend we start this "reval"; no more "delays"!

Let press on with the RV party !

Originally Posted by Adster

Nope! Every day you have to guess what it will be the following day. There will be clues, todays from Mrs A is 'where we had our honeymoon'. Go have a go, 2k to be won, noone guesses it right it'll go to 3k, 4k etc!!!

Just guessing! It's so sweet that you'd want to share this...

Originally Posted by Big Beaut

Just guessing! It's so sweet that you'd want to share this...

There are some close guesses, fraid this isn't one of them lol.

Come on folks, get your guesses in below!!!

http://www.rolclub.com/iraqi-dinar-d...lity-game.html

Originally Posted by CharmedPiper

Goldraker.......you know better than to listen to the garbage they feed you over at IIF......We will see the reval this weekend and may be announced today (Friday), the implementation of the foreign investment law is a go.....no big deal on the HCL as far as holding everything else up......Stay over here Goldraker if you want the facts.....and go over to Never-Neverland for the fiction!!!!!!

......We will see the reval this weekend and may be announced today (Friday)

Dam CharmedPiper I hope you are corect in this as I need some $ to help people in Bicol (Philippines) with some money for rise & medics after the typhoon yesterday!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!

I´ll ewen put all profits I make selling Dong´s to help the people there!!

Originally Posted by Adster

There are some close guesses, fraid this isn't one of them lol.

Come on folks, get your guesses in below!!!

http://www.rolclub.com/iraqi-dinar-d...lity-game.html

My first thought was Madagascar but I rejected that for whatever reason. Is this "closer" or do we each get but one guess per day?

Folks,

Here's an interesting report on how the Kurds view inflation:

========================

link: LawkSalih.Com - Inflation in Kurdistan

Inflation in Kurdistan
Posted on Thursday, November 30 @ 07:46:51 PST
Topic: Kurdistan
By Dr. Abdulnasser Hatemi-J

Inflation is defined as percentage increase in the aggregate price level in an economy.

A high inflation rate is harmful to society and affects economic growth negatively by increasing uncertainty in the economy, thereby reducing the long-run investment that is necessary for sustainable growth. Inflation also increases the gap between rich and poor. That is why developed countries implement economic policy to keep inflation at 2%. The current inflation in the Kurdistan region, which seems to be much higher than 2%, can be explained by the following factors. Some potential remedies are also suggested.

Increase in money supply. If money supply grows higher than the production of goods and services in the economy then high inflation will prevail. The money supply is beyond the control of the Kurdistan Regional Government (KRG) and it is up to the Iraq Federal Government (IFG) to determine the optimal level of money supply. However, KRG can promote regional policies that can increase domestic production. The increase in production of goods and services in Kurdistan will increase the supply of these products to the market. This in turn will reduce inflation.

Structural factors and markup. If the price of production factors (like wages) increases, then producers will charge higher prices, which means higher inflation rate. Another cause of inflation is high markup or marginal profit (the difference between selling price and cost of producing each unit of a product). This is especially the case if the market for the product is not free. A remedy for this could be that KRG introduces policy measures to limit the profit level for products (such as oil, sugar, bread and rice) provided by KRG. An introduction of capital income tax might also be considered. The capital tax rate is around 30% in some developed countries.

Imported inflation. If the price of commodities in the source countries increases, then the price level in Kurdistan will also increase. One potential remedy is to import from other countries that might have lower prices for similar goods. It is also important to diversify importing channels to avoid becoming dependent.

Currency depreciation. If the Iraqi dinar depreciates against the American dollar (or other important currencies), then inflation will increase. The exchange rate policy is beyond the control of KRG and it is up to the Iraqi central bank to formulate and implement optimal exchange rate policy.

Oil prices effect. The oil prices have almost tripled during the last years. The consequence of this is increased money supply in the market. If domestic production of goods and services does not increase, then the increase in money due to rising oil prices means a direct increase in price levels. However, if the resources that are generated by oil income are used for investing in productive sectors of the economy, then the amount of goods and services in the economy will increase, in turn pushing down prices.

Low competition. If the number of suppliers of domestically produced or imported goods is limited, then the suppliers will have the possibility to charge higher prices, which will result in higher inflation rate. Thus, increasing competition in both production and distribution channels will press down the prices in Kurdistan.

Increasing demand. If the demand for a product increases, then the price of that product tends to increase. An example of that is the current cost of renting or buying houses in Hawler. Due to massive population flow from rural to urban areas, the demand for housing as an investment object or to rent has increased both housing prices and rents. A potential remedy could be to increase the stock of housing and control rent levels. The supply of housing could be increased through public investment (state or municipality) in housing. For example, rents or prices could be cost-based per m2. Differences in prices because of location could be adjusted by imposing special tax rates on housing in attractive areas and subsidizing rent in less attractive areas and households with low income. This will also contribute to a more even income distribution in the region.

Low level of production. The regional economy is currently an almost consumption-based economy, which needs to become more productive. There is a negative relationship between production and inflation. If domestic production is low, it will not be able to meet the needs and demands of the consumers, thereby causing prices to rise. Increasing the production of goods in Kurdistan is crucial not only for controlling and reducing inflation but also for regional self-efficiency.

War and Instability. There is also a positive relationship between war and inflation, because war destroys the productive capability of a country and increases the risk of investment. Despite the fact that the Kurdistan region is safe due to the well-organized security provided by the regional army, the Peshmarga forces, the region is still affected by insecurity and instability that prevails in other parts of Iraq.

In order to quantify the magnitude of each underlying factor mentioned above, empirical estimations are necessary. However, these estimations require data (statistics) on a regular basis. Such data is missing currently in the Kurdistan region, and it is important to start the processes of collecting, storing and processing data on a continuous basis as time series.

KRG, led by his Excellency Nechirvan Barzani the Prime Minister, is very active in building the infrastructures of the economy. The efforts to increase the domestic production, to modernize the education system and build new institutions, and to improve the trade balance are steps taken in the right direction. These efforts will result in not only controlling the inflation rate but also developing the potential of the regional economy in the future. Given that the Kurdistan region has been neglected for decades by the former regime, everything had to be built almost from scratch.

Originally Posted by funwit

I Am Sliding Around Kansas City With My Wooottt Skates Own. I Am Going To Say Malta.

The game has its own thread please don't fillup the news thread with the game

Originally Posted by Mike5200

The game has its own thread please don't fillup the news thread with the game

Wow you read my mind !

Stop Being So Picky..i Made An Error And I Was Trying To Delete It When Smarty Pants Added His Comment.

Folks,

I reported this earlier on the wrong thread... sorry. Anyway, here's an interesting report on how the Kurds view inflation:

link:
LawkSalih.Com - Inflation in Kurdistan


Inflation in Kurdistan
Posted on Thursday, November 30 @ 07:46:51 PST
Topic: Kurdistan
By Dr. Abdulnasser Hatemi-J
Inflation is defined as percentage increase in the aggregate price level in an economy.

A high inflation rate is harmful to society and affects economic growth negatively by increasing uncertainty in the economy, thereby reducing the long-run investment that is necessary for sustainable growth. Inflation also increases the gap between rich and poor. That is why developed countries implement economic policy to keep inflation at 2%. The current inflation in the Kurdistan region, which seems to be much higher than 2%, can be explained by the following factors. Some potential remedies are also suggested.

Increase in money supply. If money supply grows higher than the production of goods and services in the economy then high inflation will prevail. The money supply is beyond the control of the Kurdistan Regional Government (KRG) and it is up to the Iraq Federal Government (IFG) to determine the optimal level of money supply. However, KRG can promote regional policies that can increase domestic production. The increase in production of goods and services in Kurdistan will increase the supply of these products to the market. This in turn will reduce inflation.

Structural factors and markup. If the price of production factors (like wages) increases, then producers will charge higher prices, which means higher inflation rate. Another cause of inflation is high markup or marginal profit (the difference between selling price and cost of producing each unit of a product). This is especially the case if the market for the product is not free. A remedy for this could be that KRG introduces policy measures to limit the profit level for products (such as oil, sugar, bread and rice) provided by KRG. An introduction of capital income tax might also be considered. The capital tax rate is around 30% in some developed countries.

Imported inflation. If the price of commodities in the source countries increases, then the price level in Kurdistan will also increase. One potential remedy is to import from other countries that might have lower prices for similar goods. It is also important to diversify importing channels to avoid becoming dependent.

Currency depreciation. If the Iraqi dinar depreciates against the American dollar (or other important currencies), then inflation will increase. The exchange rate policy is beyond the control of KRG and it is up to the Iraqi central bank to formulate and implement optimal exchange rate policy.

Oil prices effect. The oil prices have almost tripled during the last years. The consequence of this is increased money supply in the market. If domestic production of goods and services does not increase, then the increase in money due to rising oil prices means a direct increase in price levels. However, if the resources that are generated by oil income are used for investing in productive sectors of the economy, then the amount of goods and services in the economy will increase, in turn pushing down prices.

Low competition. If the number of suppliers of domestically produced or imported goods is limited, then the suppliers will have the possibility to charge higher prices, which will result in higher inflation rate. Thus, increasing competition in both production and distribution channels will press down the prices in Kurdistan.

Increasing demand. If the demand for a product increases, then the price of that product tends to increase. An example of that is the current cost of renting or buying houses in Hawler. Due to massive population flow from rural to urban areas, the demand for housing as an investment object or to rent has increased both housing prices and rents. A potential remedy could be to increase the stock of housing and control rent levels. The supply of housing could be increased through public investment (state or municipality) in housing. For example, rents or prices could be cost-based per m2. Differences in prices because of location could be adjusted by imposing special tax rates on housing in attractive areas and subsidizing rent in less attractive areas and households with low income. This will also contribute to a more even income distribution in the region.

Low level of production. The regional economy is currently an almost consumption-based economy, which needs to become more productive. There is a negative relationship between production and inflation. If domestic production is low, it will not be able to meet the needs and demands of the consumers, thereby causing prices to rise. Increasing the production of goods in Kurdistan is crucial not only for controlling and reducing inflation but also for regional self-efficiency.

War and Instability. There is also a positive relationship between war and inflation, because war destroys the productive capability of a country and increases the risk of investment. Despite the fact that the Kurdistan region is safe due to the well-organized security provided by the regional army, the Peshmarga forces, the region is still affected by insecurity and instability that prevails in other parts of Iraq.

In order to quantify the magnitude of each underlying factor mentioned above, empirical estimations are necessary. However, these estimations require data (statistics) on a regular basis. Such data is missing currently in the Kurdistan region, and it is important to start the processes of collecting, storing and processing data on a continuous basis as time series.

KRG, led by his Excellency Nechirvan Barzani the Prime Minister, is very active in building the infrastructures of the economy. The efforts to increase the domestic production, to modernize the education system and build new institutions, and to improve the trade balance are steps taken in the right direction. These efforts will result in not only controlling the inflation rate but also developing the potential of the regional economy in the future. Given that the Kurdistan region has been neglected for decades by the former regime, everything had to be built almost from scratch.