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

It cant mean back to the old rate of 1471 because that is not the "Official Rate". If you wanted to get technical the "Official Rate" according to the books is 2004 and was never changed. Im sure our friend OffShoreWealth can back me up on this one but im not exactly sure. But that would be my best guess.

$.30

Originally Posted by kiko

He expected to Yasiri, a bank dealers with the auction in a statement to the News Agency (Voices of Iraq) Independent, to witness the auction, the return of normal circulation during the forthcoming meetings due to equal the official exchange rate with the rate of exchange in the local market.

THANKS KIKO!

If anyone has access to an interpreter this would be a very good one for them to read to be sure nothing is being missed in the translation. Susie?

Here is OFFICIAL VALUE info.

1932 Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86. 1932–1949
1949–1971 Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971. 1959–1967 Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967. 1971 One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began. 1973 Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US$3.39. 1980 It remained at this level until the outbreak of the Iran-Iraq War in 1980. 1982 In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt. 1988 In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US$3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate. 1986–2003 1986–2003 between .33 cents to 1.32 to a dollar. 2001 Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.) 2002 GDP: purchasing power parity — $58 billion (2002 est.) 2002 Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002) 2003 In october 2003, the official Dinar-dollar exchange rate was ID1 to US$0.00027. 2004–2005 August 2004 till 2005, the official dinar-dollar exchange rate is ID1 to US$0.00068. Population: 25,374,691 (July 2004 est.) 2006 As of Jan 1st 2006, the official Iraqi dinar-US dollar exchange rate is ID1 to US$$0.00067.

History of Iraqi Dinar - Iraq Stock Dinar Exchange Rate

Originally Posted by clintstella

On the other hand I hope it doesn't mean a return to the official artificial rate of 1471.

Someone please tell me I'm wrong.

"He expected to Yasiri, a bank dealers with the auction in a statement to the News Agency (Voices of Iraq) Independent, to witness the auction, the return of normal circulation during the forthcoming meetings due to equal the official exchange rate with the rate of exchange in the local market."

The local Iraqis were going to the money changers in the local market and exchanging their NID for USD at a lower rate than the banks were offering. In turn the money changers would then take those dinar in to the banks and exchange them at a higher rate at the banks.
Big gap in the street exchange rate or "real exchange rate". Now that the gap has closed between the two money outlets, the CBI can resume business as usual.

Sorry if this has been posted before.

Watchdog concerned over government media surveillance plans

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14 December 2006 (BBC Monitoring)
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Reporters Without Borders today [12 December] hailed a decision by the Speaker of the Iraqi parliament, Mahmoud Al Mashhadani, to allow journalists to cover its sessions again after a two-week ban. But the organization condemned new restrictions on the media, as well as the murder of cameraman Aswan Ahmed Lutfallah of the US television news agency, Associated Press Television Network (APTN).

"It is *****ic to blame sectarian rioting on the media," Reporters Without Borders said. "While journalists have responsibilities as regards their news coverage, they also have rights which are unfortunately violated more and more in Iraq. Curbing their freedom of movement, closing down media and official threats are all part of the daily lot of Iraqi journalists."

The press freedom organization added: "The latest measures for regulating the media announced by the Iraqi authorities are worrying. The frontier between protection of state security and censorship is fragile. We appeal to the authorities to display restraint and prudence."

The ban on journalists entering parliament and the international press centre located inside it was imposed on 27 November. Live broadcast coverage of parliamentary debates was suspended at the same time, after a stormy debate about ongoing sectarian violence. Several parliamentarians and political parties objected to the ban, calling it unconstitutional. Mashhadani had claimed that press interviews with parliamentarians triggered angry reactions in the population and exacerbated tension.

Created by former US administrator Paul Bremer in 2003, the international press centre was originally meant for foreign journalists covering Iraq. It also offered training for Iraqi journalists. Located in Baghdad's green zone and equipped with internet connections and a modern communications infrastructure, it is now a place where Iraqi journalists can work safely.

Meanwhile, on 30 November, the interior ministry announced the creation of a media surveillance unit empowered to bring legal actions against the press. The ministry warned that it would "take all necessary measures against media that broadcast mendacious reports" and would "not hesitate to prosecute in order to prevent them from diverting Iraqis from the fight against terrorism."

The unit will contact journalists and news media and ask them to publish or broadcast corrections to reports deemed to be false. If they refuse, they could be prosecuted.

In a 27 November communique, the ministry condemned satellite TV stations that "try to disorient public opinion and foster political chaos by broadcasting mendacious reports liable to undermine the public's confidence in the security forces and endanger the unity of Iraq".

[passage omitted]

Source: Reporters Sans Frontieres press release, Paris

Originally Posted by PaulieThaGreat

It cant mean back to the old rate of 1471 because that is not the "Official Rate". If you wanted to get technical the "Official Rate" according to the books is 2004 and was never changed. Im sure our friend OffShoreWealth can back me up on this one but im not exactly sure. But that would be my best guess.

$.30

Didn't the books from 2004 state .30 IQD and not $.30? If so that's a HUGE difference.

Originally Posted by Dinar Cha Ching

Didn't the books from 2004 state .30 IQD and not $.30? If so that's a HUGE difference.

I also thought 0.31 IQD to 1 dollar.
This means: 1 IQD = $ 3.22

Originally Posted by PaulieThaGreat

Well from what the books say the Official rate has been .30 since 2004. So if he does indeed mean returning to the official rate of .30 then this is big.

Woohoo! Hopefully that is the correct interpretation!

When I first read that statement, I assumed they were referring to the Market Rates posted on the Historical Exchange Rate tables from the CBI. The Market Rate on 12/13 was 1427, in contrast to the Auction rate of 1414. I have noticed the trend of dollar purchasing from the participating banks, that when the auction rate is lower than the market rate, more dinar is sold back to the CBI. This market rate has been the benchmark off of which to set the auction rate and reduce circulation.

I too am hoping that they are referring to the book rate of 0.31, but we could be seeing a reference to the market rate as posted on the CBI. Even so, that market rate has been on a steady increase in value for the dinar, in line with the increased auction value of the dinar, so it is still good news, just not as much of an impact as I think we would all like to see.

This is just one thought on the matter, though, so if anyone expand, or even better, contradict my understanding of this market rate, then please elaborate.

Originally Posted by clintstella

On the other hand I hope it doesn't mean a return to the official artificial rate of 1471.

Someone please tell me I'm wrong.

So many news articles would hint that that wouldn't be the case, it would invite inflation to rise again, make all CBI's hard work look useless, ward off investors, ect.

BUT, there does exist the small chance that in a last ditch effort before the big move up, that they would force a staged "setback" as a shakeout tactic, have it stay that way for a few weeks, and then jack it way up. It could happen, and we need to be ready for the unexpected as we know it's bound to happen regardless (the RV that is), and that is certain.

Originally Posted by PaulieThaGreat

Here is OFFICIAL VALUE info.

1932 Currency unit consisting of 1,000 fils or 20 dirhams. When officially introduced at the end of the British mandate (1932), the Iraqi dinar was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86. 1932–1949
1949–1971 Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971. 1959–1967 Iraq officially uncoupled the Iraqi Dinar from the pound sterling as a gesture of independence in 1959, but the Iraqi dinar remained at parity with the pound until the British unit of currency was again devalued in 1967. 1971 One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began. 1973 Upon the devaluation of the United States dollar in 1973, the Iraqi Dinar appreciated to US$3.39. 1980 It remained at this level until the outbreak of the Iran-Iraq War in 1980. 1982 In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt. 1988 In early 1988, the official dinar-dollar exchange rate was still Iraqi dinar (ID)1 to US$3.22; however, with estimates of the nation’s inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar’s real transaction value, or black market exchange rate, was far lower-only about half the 1986 official rate. 1986–2003 1986–2003 between .33 cents to 1.32 to a dollar. 2001 Oil-production: 2.452 million bbl/day (2001 est.); note — production was disrupted as a result of the March-April 2003 war (2001 est.) 2002 GDP: purchasing power parity — $58 billion (2002 est.) 2002 Exports–partners:US 40.9%, Canada 8.2%, France 8.2%, Jordan 7.5%, Netherlands 6.4%, Italy 5.4%, Morocco 4.7%, Spain 4.4% (2002) 2003 In october 2003, the official Dinar-dollar exchange rate was ID1 to US$0.00027. 2004–2005 August 2004 till 2005, the official dinar-dollar exchange rate is ID1 to US$0.00068. Population: 25,374,691 (July 2004 est.) 2006 As of Jan 1st 2006, the official Iraqi dinar-US dollar exchange rate is ID1 to US$$0.00067.

History of Iraqi Dinar - Iraq Stock Dinar Exchange Rate

Doesn't that make it 1492?