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

Question on the Swiss Dinar, the exchange was 150 old Swiss Dinar to 1 NID and 1 old Saddam Dinar to 1 NID
So if a reval of $1 would happen that means in reality that the replaced Swiss was worth $150.00 to one NID and a $3 reval would make it $450.00 per dinar? Something not balanced here.

Originally Posted by Inscrutable

Question on the Swiss Dinar, the exchange was 150 old Swiss Dinar to 1 NID and 1 old Saddam Dinar to 1 NID
So if a reval of $1 would happen that means in reality that the replaced Swiss was worth $150.00 to one NID and a $3 reval would make it $450.00 per dinar? Something not balanced here.

I could be wrong, but I don't think the Swiss Dinar is legal tender anymore - Hence the need to exchange it in. But someone correct me if that's inaccurate. That's what I always thought, though.

Originally Posted by WebGuy75903

I could be wrong, but I don't think the Swiss Dinar is legal tender anymore - Hence the need to exchange it in. But someone correct me if that's inaccurate. That's what I always thought, though.

Thats correct. Plus they were given 150 NID for 1 Swiss Dinar.

IF THIS HAS BEEN POSTED BEFORE SORRY.........

The Central Bank denies reducing the rate of the dollar against the dinar

14 December 2006 (Iraq Directory)

The Iraqi Central Bank denied rumors on its quest to determine the rate of the American dollar against the Iraqi dinar value of one thousand dinars. Dr. Madhhar Mohammad Saleh, Head of Research and Statistics in the Central Bank, said in a meeting with reporters and Iraqi economists last Sunday: that the issue of determining the exchange rate of the dollar against the Iraqi dinar is not possible, now, for two reasons: first, the reserve capacity of the bank is not absolute, and second is the factor of the price increase.

He added: observing the general trends point to higher prices in return for a lack of improvement, which makes the dollar reduction to this value impossible at the present time, in addition to the limited financial capabilities of the Bank.

He explained: that the significant decline in the dollar, directly after the fall of the previous regime, was caused by the flow of billions of dollars to Iraq and distributing them among employees as well as opening exchange and restrictions. He pointed out: that at the present time and because of the deterioration of security and the high rate of inflation, the devaluation of the dollar is not expected at all.

Thoughts!!!!

Could the CBI simply be waiting for the start of a new fiscal year .... JANUARY 1, 2007 before they rv??

Originally Posted by eosirl2

You have to ask yourself where does the CBI get all the USD to sell and extract dinar from circulation?

CBI gets the USD to auctions from Govt oil sales, and in turn, the dinar it gets from the banks from the auctions, is paid to the Iraqi Govt (minus a fee for selling the USD), This dinar then is used to pay for the govt expense and projects etc. and thus that dinar is recirculated back into the Iraqi economy.

So bottom-line is, we see one part of the CBI's transaction, but not the other part --- its transaction with the GOI.
So really we can't conclude what the net amount is withdrawn as that would be CBI profit, and the CBI is a non-profit organization.

Been trying to get this through to the people here for about a month. Finally someone else that sees what I am talking about.

Originally Posted by cathyb

Could the CBI simply be waiting for the start of a new fiscal year .... JANUARY 1, 2007 before they rv??

Didn't someone state that the fiscal year starts on Dec 15th? Or is it Jan 1st? Either way, no one has a clue when it comes to the behaviour of the CBI!

Ok finalllllllly read the last 14 hours of post - farm jig all morning read some more - farm jig - read - farm jig. OK so it took me awhile - AWESOME STUFF!!!!!!!!!

So question is this FUN OR WHAT?? OH YEAH!!

here is something I have been waiting on that make a huge!! hmmmm the IMF website HAS NOT POST Novembers Iraq: Financial Position in the Fund

October Link


WHAT'S THE HOLD UP??????? HMMMMMM

PS Well we didn't RV today Dec. 14th so what is our next date Dec. 16th by the talk in the news/posts?? SOUNDS GOOD TO ME - FARMMMMMMMMMMMM JIGGGGGGGGGGG TO DEC. 16TH!!!
(yes my family thinks i have lost my mind with excitement everyday)

Originally Posted by worf

postcon writes: "This ploy of shaving off 2 or 3 dinars a day i.e., approx 15 a week is totally meaningless given the pressing economic situation in Iraq. They have ample reserves to support a higher value. The question is : why are they not going for a bold adjustment? Why do they seem hellbent on meaningless deductions of 2 to 3 dinars a dady? There must an underlying reason for this."

That's the multimillion dollar question!! Why continue to risk everything when its so obvious as to what they should do? Somebody out of country is calling the shots. But why?....

worf

Any hindrance to economic progress is a direct result of political inefficiency. I say this because Iraq is sitting on a pot of gold, which it refuses to utilise to further economic progress and aid prosperity for the entire nation. Wrangling amongst the politicians who actually bother to turn up in Parliament has stalled progress. It just doesn't make sense why it hasn't RV yet. It's like having the winning lottery ticket but refusing to cash it in!

Originally Posted by WebGuy75903

I could be wrong, but I don't think the Swiss Dinar is legal tender anymore - Hence the need to exchange it in. But someone correct me if that's inaccurate. That's what I always thought, though.

My understanding from a Kurdish person on another forum is that the Kurdish region still recognizes the Swiss dinar in areas as well as Kurdish coins.

I am aware that it no longer a legal tender and is not considered such in the currency world but the balance was what concerned me with any significant reval.