The difference is the BUY and SELL rates. 2 point difference depending on which on you use. SELL is the one to use.
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Notes
Number of banks 5 -----
Auction price selling dinar / US $ 1338 -----
Auction price buying dinar / US $ 1336 -----
Amount sold at auction price (US $) 2.700.000 -----
Amount purchased at Auction price (US $) 3.820.000
Total offers for buying (US $) 2.700.000 -----
Total offers for selling (US $) 3.820.000
I see the forum is slow. Here is an article from New York Post from today - 12/26/06. It is a long article.
THE BOOM OUTSIDE BAGHDAD By AMIR TAHERI - New York Post Online Edition: Seven
I will post only what I found interesting:
......
When the International Monetary Fund and the World Bank reported two years ago that the Iraqi economy was heading for a boom, skeptics dismissed it as misplaced optimism. Now, however, even some of those who opposed the toppling of Saddam Hussein admit that many Iraqis share that optimism.
Newsweek has just hailed the emergence of a booming market economy in Iraq as "the mother of all surprises," noting that "Iraqis are more optimistic about the future than most Americans are." The reason, of course, is that Iraqis know what is going on in their country while Americans are fed a diet of exclusively negative reporting from Iraq.
The growing dynamism of the Iraqi economy is reflected in the steady increase in the value of the national currency, the dinar, against the three currencies in direct competition with it in the Iraqi marketplace: the Iranian rial, the Kuwaiti dinar and the U.S. dollar, since January 2006.
No doubt, part of the dinar's strength reflects the rise in Iraq's income from oil exports to almost $40 billion in 2006, an all-time record. But oil alone does not explain all, since both Iran and Kuwait are bigger exporters than Iraq.
But a good part of the boom is due to an unexpected flow of foreign capital. This has been facilitated by the prospect of a liberal law on direct foreign investments, which exists only in such free-trade parts of the region as Dubai and Bahrain. None of Iraq's six neighbors offers such guarantee for the free flow of capital to and from the country.
....
"Whatever happens, Iraq is Iraq," says a Kuwaiti businessman, building hotels in the south. "Iraq will always remain the country with the world's largest oil reserves and the Middle East's biggest resources of water."
......
But what about continued terrorist attacks? Most foreign investors coming to make money in Iraq shrug their shoulders. "Doing business in any Arab country is always risky," says a Turkish investor who has set up a trucking company and a taxi service. "In some Arab countries, you risk nationalization or straight confiscation by the ruler. In other Arab countries, you must give a cut to one of the emirs. Here, you face possible terrorist attacks. But such attacks are transitory."
....
THE WHOLE ARTICLE IS A GOOD READ THOUGH.
Much of this sounds very familiar. The concern about the population is only going to get worse because they have a very young population due to the Iran/Iraq war. I'm thinking maybe this once in a lifetime opportunity with the dinar could become a twice in a lifetime opportunity. Hopefully bloodlessly though.
Can you say Rial? At 9,222:1 it's quite a bargin!
Number of banks 5 -----
Auction price selling dinar / US $ 1338 -----
Auction price buying dinar / US $ 1336 -----
Amount sold at auction price (US $) 2.700.000 -----
Amount purchased at Auction price (US $) 3.820.000
Total offers for buying (US $) 2.700.000 -----
Total offers for selling (US $) 3.820.000 -----
Goooooooooooooood Morning RolClub
1338 and not even so much as a "Thank you Mame" on the way by. All the IMF hype and the magical 1345 came and went without much of a fight. I think this sets the stage for an anticlimactic 1260 level and beyond. IMO we're headed for a reval that we've all been waiting for. I'm going to go out on a limb here and say Dec 31st or there abouts should be pretty significant in terms of our investment. As I have stated before, the logical thing would be for them to enact the new budget and the new year with a revalued dinar. Again, logic doesn't seem to be one of the of the Iraqi's strong suits. I didn't say they weren't smart, because this program they are on is amazing, however it does lack some logic from time to time. Maybe when the whole picture is finally unveiled we'll all see the genius behind it, but for now, we live from auction to auction. After all, we are approaching the 10% mark since the dramatic reduction started on or near Nov 1st.
1. The dinar to the dollar is down 7 more points today from 1345 to 1338
2. A negative $1,120,000 (net) worth of dinars, (IQD - 1,496,320,000) out of circulation
3. 5 banks participating.
4. 52nd auction since the beginning of CBI's reval plan
5. 87 days into the CBI's reval plan.
6. 2,858,411,027,000 dinars pulled from circulation !!
7. 1,496,320,000 Dinars back into circulation today !!
8. 139 dinar change since Nov 1st (baseline was 1477) 9.410% increase in value of the dinar since beginning of reval plan.
9. 22 point reduction in the rate so far this week. Was at 1360 at the end of last week, 1338 this week.
10. 97 point drop so far in the month of Dec. Ended at 1435 in Nov, now stands at 1338
And there it goes! :waiting:Quote:
Announcement No.(834)
D.G. of Foreign Exchange Control
The 834 daily currency auction was held in the Central Bank of Iraq day Tuesday 2006 / 12/ 26 so the results were as follows :
Details Notes
Number of banks 5 -----
Auction price selling dinar / US $ 1338 -----
Auction price buying dinar / US $ 1336 -----
Amount sold at auction price (US $) 2.700.000 -----
Amount purchased at Auction price (US $) 3.820.000
Total offers for buying (US $) 2.700.000 -----
Total offers for selling (US $) 3.820.000 -----
I was just reading this article saying that the 2007 budget has been calculated at 1260. Maliki approved it, the president approved it...Could they just change the rate AFTER it is approved by Parliament - like a small detail that has been forgotten??
Could it be one of those "propose amendments on forecast expenditure or income." in this article?
Kuna site|Story page|Parliament to examine state budget after being ble...12/24/2006
Parliament to examine state budget after being blessed by government
ECO-IRAQ-BUDGET
Parliament to examine state budget after being blessed by government
BAGHDAD, Dec 24 (KUNA) -- Presidency of the Iraqi Parliament was notified on Sunday about the 2007 state budget projected to stand at 41 billion US dollars with a hike of USD 11 billion compared to the previous budget, a chief legislator said.
Speaking at a news conference at the Palace of Conferences in the capital, First Deputy Speaker of the Iraqi Parliament Khaled Al-Attiah said the presidency of the assembly received a document outlining the projected budget, adding that it was submitted to the parliamentary committee of economic and investment affairs for examination.
The new budget has been worked out to secure up to 136,000 new jobs, Al-Attiah said.
The projected budget had already been blessed by the government. The parliament has the authority to examine it, propose amendments on forecast expenditure or income.
Minister of State for Parliament Affairs Safaa Eddine Al-Safi said the new budget includes USD 10 billion for investments, USD seven billion for security and USD 2.6 billion for education and teaching, double the allocation for this sector in the previous budget.(end) ah.