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

Interesting,

Since so many were concerned over lopping vs. lifting translations over the past couple weeks, here is a perfect example of why lopping is needed in rare cases, as in this example, there was a 1,200% inflation rate, a far cry from Iraqi's spike due to removel of fuel susidies which caused a spike of 52%, so I hope this puts the lopping theory to bed once and for all. (g)


Zimbabwe money loses three zeros

Inflation runs at almost 1,200%

Zimbabwe's central bank has announced that three zeros will be taken off every banknote to help consumers deal with inflation of almost 1,200%.
Central bank governor Gideon Gono said Zimbabweans had three weeks to exchange existing banknotes for a new series being issued from this Tuesday.
Mr Gono said people had experienced enormous inconvenience because of banknotes with too many zeros.
Mr Gono also announced what amounted to a 60% devaluation of the currency.
The new official exchange rate will be 250 Zimbabwe dollars - 250,000 of the old Zimbabwe dollars - to the US dollar, as opposed to the previous rate of 101,000 to one.
However, foreign currency fetches at least four times this amount on the parallel market.
Economists said the removal of zeroes in itself did not amount to a revaluation, but was simply aimed at making it easier for people handling increasingly unwieldy wads of banknotes as inflation soars.
Zimbabwe has been issuing so-called bearer cheques in recent months, with increasingly high face values.
Notes to the value of 50,000 and then 100,000 Zimbabwe dollars have appeared since the beginning of the year.
Shortages
The bills are known as bearer cheques since they are promissory notes rather than official legal tender, but are used in Zimbabwe in the same way as money.
The government has announced a National Economic Development Priority Programme (NEDPP) in order to deal with the economic problems.
Zimbabwe is suffering from shortages of food, fuel and foreign currency. In April, inflation passed 1,000% per annum for the first time. President Robert Mugabe blames domestic and foreign enemies for the problems, while his critics point to the collapse of agricultural exports following a controversial land reform programme. The country is struggling to pay civil servants and is thought to owe money to neighbours such as South Africa and Mozambique from whom it has been importing electricity and fuel.

Iraq c.bank boss warns violence spurring inflation

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BAGHDAD, July 31 (Reuters) - Iraq's dire security situation is spurring inflation and hobbling growth, the head of the country's central bank said on Monday, warning that rising prices may provoke another hike in official interest rates.


Governor Sinan al-Shabibi also told Reuters in an interview that the restructuring of the country's two main state-owned banks was an urgent priority and had been agreed with the Ministry of Finance. But he declined to be specific on timing.

As a result, reform is a political hot potato but Shabibi said that the new government of national unity was committed.

"This is a very important task and an immediate priority, he said. "There is some cooperation with the Ministry of Finance and we are going to implement that quite soon."
http://www.alertnet.org/thenews/newsdesk/BUL151778.htm

Originally Posted by cigarman

Iraq c.bank boss warns violence spurring inflation

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Governor Sinan al-Shabibi also told Reuters in an interview that the restructuring of the country's two main state-owned banks was an urgent priority and had been agreed with the Ministry of Finance. But he declined to be specific on timing.


"This is a very important task and an immediate priority, he said. "There is some cooperation with the Ministry of Finance and we are going to implement that quite soon."
http://www.alertnet.org/thenews/newsdesk/BUL151778.htm

I took these two paragraphs as being good news, yes?

I would think so!!! Maybe we're dreaming to hard. LOL

Well, it never hurts to dream, right? We definitely need some good news tomorrow.

the Iraqi Dinar/U.S. Dollar exchange rate has changed. According to the Iraqi Central Bank website (www.cbiraq.org) the exchange rate has changed from:

1476/Dinars to the US Dollar

To

1477*/Dinars to the US Dollar

* as of 7/31/2006 10:05:05 AM CST as per Central Bank of Iraq website

Originally Posted by optimist48

Pippyman, I have to agree with you on this one.....The Israelis did indeed learn the Nazi lesson far too well seeing the way they applied it to Palestinians...Of course most of the western World doesn't say a word, given the HUGE guilt complex due to the Holocaust....So the Israelis are free to use and abuse... Self-defense is fine but they went way too overboard.....And any critique is tagged as anti-jewish.....So they shut you up...

also without taking sides, a journalist acquainted with the area pointed out today that Hezbollah regularly embeds themselves in civilian areas, and prevents them from leaving so that they will provide cover. Some guys, eh? No sacrifice is to great evidently, including their own people, to promote "the cause". It is very complicated and tricky and I think both sides have committed some unthinkable acts, but we aren't there and judging the situation is easier to do 7,000 miles away. The end of politics in dinar thread! I promise!

Originally Posted by ourhouse37

also without taking sides, a journalist acquainted with the area pointed out today that Hezbollah regularly embeds themselves in civilian areas, and prevents them from leaving so that they will provide cover. Some guys, eh? No sacrifice is to great evidently, including their own people, to promote "the cause". It is very complicated and tricky and I think both sides have committed some unthinkable acts, but we aren't there and judging the situation is easier to do 7,000 miles away. The end of politics in dinar thread! I promise!

Agreed,

Sadly, this is the underhanded disregard for children and women that they hide behind, the same tactics being employed in Iraq to a large degree. Too bad this is not made the headlines on all these conflicts. It is so sad to see so many innocent people used as shields, and if I saw this, I would be against whoever side used these tactics, no matter what religion or which country of origin they were. You just cannot get any lower than this in my opinion.

Peace, Mike

Mike,
what is your hunch on the reval? Do you think it will happen in August, or do you think we'll have to wait until September after the holidays? (or even longer? )

I know you can't KNOW for sure, but I value your opinion on this...One hear so many dates thrown around all the time...
I suppose when it finally happens I will be afraid to believe it is true!!!

Originally Posted by karinc

Mike,
what is your hunch on the reval? Do you think it will happen in August, or do you think we'll have to wait until September after the holidays? (or even longer? )

I know you can't KNOW for sure, but I value your opinion on this...One hear so many dates thrown around all the time...
I suppose when it finally happens I will be afraid to believe it is true!!!

Hi Karin,

Wish we didn't have to go through these delays, but in a region like the middle east, you never know what to expect, just look at the Irael and Lebanon fighting which certainly has taken the focus off Iraq.

Knowing what we do about the investment law being passed in Kurdistan region, we know the same will come to pass in Baghdad, but here we had a delay at last minute with no real reason. Granted, it can wait a bit longer, but given the desperate need to attract international investors, just as the north is, it will happen, and in fact, it will be announced this month as the unemployment issues cannot wait.

With so much happening in the past couple weeks, I think this is by design a period of nothing more than taking a break or breather as things have happened a lot faster than anyone thought is would. We saw the world market being tested with release of a few scenarios on revalue, and where they would eventually want to see it return to, and that is a sure sign it is close at hand. I still believe this was all designed as a last hurdle to see who may object and for what reason, and we heard nothing.

You have to remember Iraq is entering into virgin territory, so I can understand why they are holding back a bit as all the pieces are in place now. We have a big press release for Tuesday, and with the meetings ongoing for weeks with all the international players, what we see now is little reason to wait any longer, so we may hear what we all have been waiting for this month. Quiet periods usually are good signs, and hopefully the reinforced troops will get control over Baghdad and finally get this act on the road to revalue announcement which is already defined internally, so hang in there. (g)

Good luck to all, Mike