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

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I thought I would post this about Kuwait to see if there is anything that we may glean from it....

CBK Changes KD Dollar Exchange Rate (11/5/2006)


H.E. the Governor of the Central Bank of Kuwait (CBK), Sheikh Salem Abdulaziz Al- Al-Sabah announced a rise in the exchange rate of the Kuwaiti dinar against the US dollar to 289.14 fils/dollar from 292 fils/dollar, as of 11/5/2006. H.E. the Governor explained that the decision reflects CBK's eagerness to preserve the purchasing power of the Kuwaiti dinar against the currencies of the trading partners of the State of Kuwait, thereby contributing to the containment of imported inflationary pressures. In this connection, H.E. the Governor noted the upward trend witnessed in the general levels of domestic prices, as expressed by the price indices prepared by the Ministry of Planning, mentioning that data on both the Consumer Price Index -a measure of the general cost of living- and the Wholesale Price Index, especially in regard to imported goods, showed a marked acceleration during 2005, which was owed in large part to the decline in the exchange rate of the US dollar against other major currencies; noting also that the Kuwaiti dinar is pegged to the US dollar within specified margins. In light of the above, the decision to raise the exchange rate of the Kuwaiti dinar against the US dollar aimed at enhancing the purchasing power of the KD against the other currencies, so as to curb the inflationary pressures resulting from the rise in the exchange rate of these currencies against the US dollar.

H.E. the Governor clarified that the above rise in the exchange rate of the KD against the US dollar exhausts the allowed margin of movement of ±3.5% around the parity rate of the KD against the US dollar set at 299.63 fils/dollar in accordance with the decision of CBK's Governor issued on 5 January 2003. Within this context, H.E. the Governor confirmed that CBK will continue monitoring all developments of relevance to the purchasing power of the Kuwaiti dinar, particularly the developments in the exchange rates of the Kuwaiti dinar against the other major currencies, and will not hesitate to apply the instruments available to it for enhancing the stability of these exchange rates and curbing imported inflationary pressures so as to preserve the purchasing power of the national currency.

Furthermore, H.E. the Governor of the Central Bank of Kuwait announced that the CBK decided to raise its intervention interest rate which influences the interest rates on customer deposits with local banks, by a quarter percentage point as of 11/5/2006, while keeping its discount rate, to which are linked the maximum interest rates on loans extended by the local banking and financial units to their customers, unchanged at 6%. H.E. the Governor explained that the discount rate represents a pivotal rate to which are linked, within specific margins, the maximum interest rates on KD-lending transactions at the local banking and financial units, and has no direct bearing on interest rates on deposits. Accordingly, keeping the discount rate unchanged necessarily maintains the maximum interest rates on contracted loans at their levels since November 2005, bearing in mind that the interest rates on contracted loans may not reach these maximum limits. H.E. the Governor noted that no change was made to the discount rate of 6% since November 2005; accordingly, no change occurred in the maximum interest rates on KD-lending transactions at the local banking and financial sector units since that date.

H.E. the Governor explained that the intervention interest rate is the rate which CBK applies in dealing with local banking and financial units in regard to accepting deposits from them, within its efforts towards managing domestic liquidity. Through moving the intervention interest rate, the CBK seeks to influence the interest rates applied by local banks on customer deposits. H.E. the Governor added that the CBK moves the intervention interest rate to enhance the competitiveness and attractiveness of the KD as a store of national savings, thereby solidifying the base of KD deposits with the local banking and financial sector units, noting that these units draw on these deposits to meet the financing requirements of the various sectors of the national economy. H.E. the Governor also mentioned that the interest rates on the various monetary policy instruments available to CBK, encompassing the Public Debt instruments, CBK's Bonds, and repurchase operations, are linked to the intervention interest rate and move along with it.

H.E. the Governor clarified that the CBK repeatedly raised the intervention interest rate without changing the discount rate since November 2005, to provide an incentive for local banks to attract customers' KD deposits. These raises of the intervention interest rate were accompanied with intensive monitoring by CBK of local banks' performance in this regard, and resulted in a clear improvement of interest rates on KD customers' deposits with local banks, and a tangible growth in the balances of these deposits.

H.E. the Governor noted that this last increase in the intervention interest rate was in pursuance of CBK's efforts towards ensuring the conformity of the domestic interest rates with the upward trend in interest rates on major currencies, particularly the US dollar, so as to ensure the competitiveness and attractiveness of the KD as a store of national savings. H.E. also confirmed CBK's readiness to move again, if need be, to influence domestic interest rates so as to maintain such conformity, while taking into consideration the domestic economic, monetary and banking developments.

H.E. the Governor concluded his statement by confirming that the CBK was keen on fulfilling its role in maintaining monetary stability in the national economy, preserving the purchasing power of the national currency, and enhancing its competitiveness and attractiveness as a store of national savings.


Hope this is helpful in some way.

Cheers!
DayDream

Canoe.ca, Canada - 18 hours ago

Iraq central bank buys up currency to fight inflation

BAGHDAD (AP) - Iraq's dinar currency has risen to a nearly two-year high against the U.S. dollar, as the nation's central bank tries to fend off skyrocketing inflation by buying up the currency with dollars at its daily auctions.

Most of the money the Iraqi government earns is in U.S. dollars because oil exports are the main source of its income, and the bank has about US$14 billion in foreign assets, said Mudher Qassim, the Central Bank of Iraq's director of statistics.

On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million U.S. dollars sold by about a dozen banks, the central bank said. Even larger amounts of dollars were sold during 10 of the auctions in November.

"Our goal is to reduce inflation, which is now running at about 50 per cent, by improving the dinar and thereby making imported goods cheaper," Qassim said in a telephone interview, adding that more than 80 per cent of all Iraq's tradable goods are imported, he said.

In a report in August, the International Monetary Fund also said inflation was escalating in Iraq. The 12-month rate of inflation ended 2005 at 31.7 per cent, but inflation then accelerated, with 12-month inflation reaching 58 per cent in May 2006, the report said.

Iraq's Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 per cent from 12 per cent. Wednesday's report from the bipartisan U.S. Iraq Study Group said that by the end of 2006, the bank will raise rates to 20 per cent and appreciate the dinar by 10 per cent.

The Central Bank's fight against inflation could prove to be an uphill battle, however, since many observers believe the leading contributor to inflation is the high cost of security involved in distributing goods throughout the country.

On Thursday, the dinar was trading at the central bank's auction price of 1,424 against the U.S. dollar, according to the bank's website, its strongest price since March 23, 2004, when it was at 1,420.

Between Nov. 29 and Thursday, the Iraqi currency traded widely at a market price between 1,410 to 1,442 to the dollar, the best market price the dinar had seen Jan. 26, 2005, when it traded at 1,405.

"The dinar has steadily increased against the dollar because of the central bank's efforts to stabilize the currency and control inflation," said Hussein al-Uzri, president of the state-owned Trade Bank of Iraq.

"Iraqi consumers get oil and food that is government subsidized, so the rise in the dinar won't have an immediate effect on them and the economy. It will take some time. But as Iraqis realize the value of the dinar is rising, they will stop immediately exchanging their currency into dollars," he told The Associated Press.

It looks like the dinar is getting world-wide attention. The last few articles I posted are all hours apart but say the same thing and this is from different news sources all over the world....Looks like the cat is out of the bag....TIME TO REVAL FOLKS!!!

ChronicleHerald.ca, Canada - 4 hours ago

Dinar soars: Iraqi currency hits 2-year high

BAGHDAD, Iraq (AP) — Iraq’s dinar currency has risen to a nearly two-year high against the U.S. dollar, as the nation’s central bank tries to fend off skyrocketing inflation by buying up the currency with dollars at its daily auctions.

The ChronicleHerald.ca

Originally Posted by neno

I am getting pm after pm on this. So please leave the Misery with the Misery. Not wanted here anylonger. I will delete anything else from there. One of Rolclubs rules is to not bring anything copied from other Forums and not to take here there as well. In the TOS rules. http://www.rolclub.com/rolclub-rules...rules-tos.html Thanks.

then i suggest we need to do some thinning out of members since there are a few who insist on taking our information over to the other forums. you know who you are nellies.

Anybody got a woot for the trend I see here!!!!!WOOOOOOOOOOOOT!

Wall Street Journal (subscription), NY - 18 hours ago
AP. BAGHDAD, Iraq -- Iraq's dinar has risen to a nearly two-year high against the US dollar, as the nation's central bank tries to ..

ChronicleHerald.ca, Canada - 4 hours ago
BAGHDAD, Iraq (AP) — Iraq’s dinar currency has risen to a nearly two-year high against the US dollar, as the nation’s central bank tries to fend off ...

Canadian Business, Canada - 18 hours ago
Iraq Central Bank Buys Up Currency to Fight Inflation; Dinar at 2-Year High Vs. Dollar. BAGHDAD, Iraq (AP) - Iraq's dinar currency ...

FXstreet.com The Futures Market, Spain - 13 hours ago
On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million US dollars sold by ...

International Herald Tribune, France - Dec 7, 2006
AP. BAGHDAD, Iraq: Iraq's dinar currency has risen to a nearly two-year high against the US dollar, thanks to trading by the central ...

Houston Chronicle, United States - 19 hours ago
By THOMAS WAGNER AP Writer. © 2006 AP. BAGHDAD, Iraq — Iraq's dinar currency has risen to a nearly two-year high against the US ...

Originally Posted by CharmedPiper

Anybody got a woot for the trend I see here!!!!!WOOOOOOOOOOOOT!

Wall Street Journal (subscription), NY - 18 hours ago
AP. BAGHDAD, Iraq -- Iraq's dinar has risen to a nearly two-year high against the US dollar, as the nation's central bank tries to ..

ChronicleHerald.ca, Canada - 4 hours ago
BAGHDAD, Iraq (AP) — Iraq’s dinar currency has risen to a nearly two-year high against the US dollar, as the nation’s central bank tries to fend off ...

Canadian Business, Canada - 18 hours ago
Iraq Central Bank Buys Up Currency to Fight Inflation; Dinar at 2-Year High Vs. Dollar. BAGHDAD, Iraq (AP) - Iraq's dinar currency ...

FXstreet.com The Futures Market, Spain - 13 hours ago
On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million US dollars sold by ...

International Herald Tribune, France - Dec 7, 2006
AP. BAGHDAD, Iraq: Iraq's dinar currency has risen to a nearly two-year high against the US dollar, thanks to trading by the central ...

Houston Chronicle, United States - 19 hours ago
By THOMAS WAGNER AP Writer. © 2006 AP. BAGHDAD, Iraq — Iraq's dinar currency has risen to a nearly two-year high against the US ...

Yes this is going to create more demand.....and if you have more demand then you have more of the supply being bought up. Thats what we want!

This is the most detailed article I have found relating to the above articles. We are so close.....Way too much publicity now....!!!

Iraq Central Bank Buys Up Currency to Fight Inflation; Dinar at 2-Year High Vs. Dollar
Thomas Wagner

December 8, 2006 - 2:13 p.m.

BAGHDAD, Iraq (AP) - Iraq's dinar currency has risen to a nearly two-year high against the U.S. dollar, as the nation's central bank tries to fend off skyrocketing inflation by buying up the currency with dollars at its daily auctions.

Most of the money the Iraqi government earns is in U.S. dollars because oil exports are the main source of its income, and the bank has about $14 billion in foreign assets, said Mudher Qassim, the Central Bank of Iraq's director of statistics.

On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million U.S. dollars sold by about a dozen banks, the central bank said. Even larger amounts of dollars were sold during 10 of the auctions in November.

"Our goal is to reduce inflation, which is now running at about 50 percent, by improving the dinar and thereby making imported goods cheaper," Qassim said in a telephone interview, adding that more than 80 percent of all Iraq's tradable goods are imported, he said.

In a report in August, the International Monetary Fund also said inflation was escalating in Iraq. The 12-month rate of inflation ended 2005 at 31.7 percent, but inflation then accelerated, with 12-month inflation reaching 58 percent in May 2006, the report said.

Iraq's Central Bank also is trying to fight inflation by raising interest rates. In November it raised its key policy rate to 16 percent from 12 percent. Wednesday's report from the bipartisan U.S. Iraq Study Group said that by the end of 2006, the bank will raise rates to 20 percent and appreciate the dinar by 10 percent.

The Central Bank's fight against inflation could prove to be an uphill battle, however, since many observers believe the leading contributor to inflation is the high cost of security involved in distributing goods throughout the country.

On Thursday, the dinar was trading at the central bank's auction price of 1,424 against the U.S. dollar, according to the bank's Web site, its strongest price since March 23, 2004, when it was at 1,420.

Between Nov. 29 and Thursday, the Iraqi currency traded widely at a market price between 1,410 to 1,442 to the dollar, the best market price the dinar had seen Jan. 26, 2005, when it traded at 1,405.

"The dinar has steadily increased against the dollar because of the central bank's efforts to stabilize the currency and control inflation," said Hussein al-Uzri, president of the state-owned Trade Bank of Iraq.

"Iraqi consumers get oil and food that is government subsidized, so the rise in the dinar won't have an immediate effect on them and the economy. It will take some time. But as Iraqis realize the value of the dinar is rising, they will stop immediately exchanging their currency into dollars," he told The Associated Press.

Two money changers in Baghdad said Thursday said their businesses haven't been affected by the central bank's intervention yet, but some consumers were watching to see what will happen to the dinar next.

Government employees who are paid in dinars already are benefiting by getting a better deal at the many Iraqi stores that import products such as electronic goods and sell them in dollars only, said one money changer.
The other trader said the many poor and unemployed Iraqis who survive by receiving U.S. dollars from relatives overseas — and Iraqis who work for foreign companies and are paid in dollars — are worse off.

Both money changers spoke on condition of anonymity to protect their security in Baghdad, where many people are killed in sectarian violence between Sunni Arab insurgent and Shiite militias. Businessmen and store owners often are kidnapped by common criminals seeking ransoms from their relatives.
Iraq Central Bank Buys Up Currency to Fight Inflation; Dinar at 2-Year High Vs. Dollar | Markets | Market News | Canadian Business Online

Originally Posted by OneShotOneKill

I am trying to figure this out. How is that 5 days?

OSOK

friday, saturday, sunday, monday, tuesday = 5 days
saturday, sunday, monday, tuesday, wednesday = 5 days
sunday, monday, tuesday, wednesday, thursday = 5 days

you pick which scenario you want them to get the oil law done in. they have 3 options if they can MAKE QUORUM.

Sure looks like they are baiting speculators. Advertising at it's finest, drop the little fishy off the line for a bigger one.

Your news articles are awesome Charmed, you really take the effort to break them down and highlight whats important, saving us time in reading what's not. Thanks for your hard work, I'm sure you'll see your payoff soon.

Originally Posted by CharmedPiper

Anybody got a woot for the trend I see here!!!!!WOOOOOOOOOOOOT!

Wall Street Journal (subscription), NY - 18 hours ago
AP. BAGHDAD, Iraq -- Iraq's dinar has risen to a nearly two-year high against the US dollar, as the nation's central bank tries to ..

ChronicleHerald.ca, Canada - 4 hours ago
BAGHDAD, Iraq (AP) — Iraq’s dinar currency has risen to a nearly two-year high against the US dollar, as the nation’s central bank tries to fend off ...

Canadian Business, Canada - 18 hours ago
Iraq Central Bank Buys Up Currency to Fight Inflation; Dinar at 2-Year High Vs. Dollar. BAGHDAD, Iraq (AP) - Iraq's dinar currency ...

FXstreet.com The Futures Market, Spain - 13 hours ago
On Thursday, the last day of the work week in Baghdad, the central bank led the way at its daily currency auction, which saw 25 million US dollars sold by ...

International Herald Tribune, France - Dec 7, 2006
AP. BAGHDAD, Iraq: Iraq's dinar currency has risen to a nearly two-year high against the US dollar, thanks to trading by the central ...

Houston Chronicle, United States - 19 hours ago
By THOMAS WAGNER AP Writer. © 2006 AP. BAGHDAD, Iraq — Iraq's dinar currency has risen to a nearly two-year high against the US ...