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

I couldnt agree more....

Originally Posted by jsfletcher

Hi SS, first of all welcome aboard!! Many of us have followed your posts from IIF, and I for one admire your convictions on this situation. In case you have not noticed the population here is a bit more level headed, and rest assured that IF Sept. were to pass with no r/v you will NOT be attacked here. That leads to my question.... With all due respect to you and your convictions, and without revealing the source of your information, what CAN you share with us to put us on the same page with you on an Sept. r/v? Most of us have read the same articles, the same news etc. I am just curious as to what information you are able to share with jeopordizing (spelling?) your source. And to let you know for sure this is not an attack forum. We all KNOW this will happen.


John

they MUST have it done by the time they begin the compact which starts on September 18th. if they revalue shortly before it begins it tends to make it look worse than if they did it a week in advance of that. thats why logistically it should be this week.

Still pretty sure of this week then, but by the 18th for sure?

Just a question, is this a source or inside info, or are you putting 2 and 2 together to come up with this?

Thanks

Right on!!!

Originally Posted by shotgunsusie

they MUST have it done by the time they begin the compact which starts on September 18th. if they revalue shortly before it begins it tends to make it look worse than if they did it a week in advance of that. thats why logistically it should be this week.

Originally Posted by Jetsa1

The MoF and the CBI Governor will make the announcment. This is embedded in an article I read somewhere.

pdf on the cbi site.

Hey shot gun I must tell you, your one tough cookie!!!!!!

Abu Dhabi-Sabah
Research Vice President Aldectoradl Abdul-Mahdi, His Highness Sheikh Khalifa Bin Zayed, President of the State of Emirates yesterday, many of the files, including the security file and file and economic reconstruction of Iraq.

Abdel Mahdi, who is an official visit to the United Arab Emirates expressed his country's keenness to enhance and strengthen the relations and ties between Iraq on one side and the Gulf states on the other hand, pointing to his government's efforts in opening up new prospects for the future with the Arab and regional states. The transfer of the Vice-President the greetings of President Jalal Talabani Dr. Prime Minister Nuri al-Maliki to the President of the United Arab Emirates. The meeting was attended by His Highness Sheikh (Hamdan Bin Zayed) Deputy Prime Minister and His Highness Sheikh Saif bin Zayed, Minister of the Interior and a number of the Ministers of State Policies


Baghdad-Sabah
Will the Prime Minister, Mr. Nouri Al-Maliki day official visit to the Islamic Republic of Iran by two days to three days. A source in the Prime Minister's Office for the "morning" that Maliki headed a delegation including Minister of Water Resources and State for Parliamentary Affairs, immigrants and migrants

Dr. Muwaffaq Rubaie, the national security adviser and a number of members of the House of Representatives.
The Iraqi Ambassador to Iran Mohammed Majid Sheikh announced yesterday, the first Sunday that the visit was to be carried out by al-Maliki yesterday, Monday, were postponed without giving new date or reason for the postponement.
In the Romanian capital of Bucharest, said Foreign Minister Hoshyar Zebari, who is on a visit yesterday : The postponement of a visit to Iran, Al-Maliki was not for political reasons.
The Zebari in a press conference that the reasons for some of the concerns of the owners of the official was behind the postponement of the visit. This will be the visit of al-Maliki if started today, the first visit to Iran since he became prime minister last May. Al-Maliki will discuss during the visit of the political and security ties with its neighbor Iran, which Zebari also said it : it is important for the country of Iraq, which it has diplomatic relations good.


Baghdad and the provinces / Sabah AFP

Iraqi security forces have arrested six terrorists and (25) of the suspects during a raid on nests of terrorists in different parts of the country. With multinational forces arrested (49) terrorist in the military operations carried out on Wednesday and Friday, two in Baghdad and its surroundings

Originally Posted by shotgunsusie

they MUST have it done by the time they begin the compact which starts on September 18th. if they revalue shortly before it begins it tends to make it look worse than if they did it a week in advance of that. thats why logistically it should be this week.

What would be the consequences if they don't reval by the 18th?

Originally Posted by Elfwizard

Still pretty sure of this week then, but by the 18th for sure?

Just a question, is this a source or inside info, or are you putting 2 and 2 together to come up with this?

Thanks

the fact of the 18th and the compact is known stuff from the news and articles and documentation. yes they need to have the dinar revalued by then.

The Unique Situation of the Iraqi Dinar
A backgrounder on the Iraqi dinar, including details on why the Iraqi dinar is positioned for a huge rise in value.
09/11/2006

The Iraq Dinar is set up in a very simple, almost crude fashion. The set up was a quick fix after the invasion, seeing that the banking sector in Iraq was about as developed as a model T. Without a modern bank system in place, the "crude and simple" was chosen as a workable interim model.

A Brief History of the Dinar
With Saddam's face plastered all over it, the old dinar had to go. The Saddam dinar also was of very low quality, and could be easily forged on a simple copy machine.

After the invasion, new bills were immediately ordered, but due to the enormous amount needed, some of the old Saddam dinars continued to be printed and circulated until the new ones arrived.

The new dinar bills started to arrive, and they brought with them all the modern safety features one would expect. A wide spread of denominations was chosen, both to make the daily handling easier, and to cover for value variations in it's exchange. Finally, a reasonable time period was granted in order to allow the citizens of Iraq to swap the old Saddam, and "Swiss" dinar in.

The Central Bank of Iraq (CBI)
The Central Bank of Iraq (CBI) was set up as an auction system, with the CBI sitting on the newly printed currency, auctioning older outdated dinars and other foreign currencies with Iraqi banks for new dinars. Now that the currency exchange has been completed, the CBI also sends nearly half of it's daily auction of dinars to foreign banks in Kuwait, Jordan and beyond.


If you go to the CBI official website you will see the daily auction, the currency is now primarily sold in exchange for US dollars. The CBI is slowly but surely acquiring US dollars to help back the worth of the dinar. Everyday the amount of dollars in it's vaults increases.

The exact number of dinars in print, in circulation or on hold at the CBI is exactly known. By doing some very simple steps, full control is achieved through:

Limit the amount a person can bring with him if he is leaving Iraq, to a very small amount (in this case, 100,000 dinar);
Knowing the exact amount sold to banks outside of Iraq.
Once you know the amount of dinars out there, viola, you have complete control over it's fate. The CBI simply sells more or less to hold the dinar in a position exactly where they want it to be.

Given this situation, the dinar will not strictly be pegged. It has been called 'pegged' by some, but in reality you will have some small fluctuations on the dinar value, which you have likely noticed if you have followed it over time. These fluctuations are a balancing act by the CBI.

Simply put, truly pegged currencies don't move from the currency it is pegged to.

This is the basic Iraqi dinar system. Now some may already be asking, that if the Dinar is endlessly sold, wouldn't it flood the market, making them worthless? No, because you have exchanged your US dollars for your dinar, which helps to back the dinar through the above explained CBI mechanism.

Now, this is a very temporary system. Interested readers will of course note that any currency that is not free flowing is a hindrance to full economic development. This fall, new Iraq investment laws are suppose to be passed by the elected Iraqi parliament, allowing international investment companies (read: Big Oil) to invest.

At this very moment, oil company survey and geological teams are crisscrossing the desert, testing grounds, staking claims and hopefully not giving each other a black eye. Again, this is not Iraq government, US government, US Government contractors, US armed forces, etc. running around, this is oil companies. The future mega investment in Iraq which will help drive the economy forward.

A Question of Priorities
Some may ask if we shouldn't take care of the violence first. If Joe Everyman is building a house, is it relevant that his young children are fighting? The short answer is that 'Big Oil' is operating in many areas of the world where violence is the norm, not the exception.

By last June it was announced that no more printing of the dinar is necessary, meaning that we are most probably in the end part of the 'first stage', and are ready for the dinar revaluation. It would be an suicidal economically to leave the dinar in it's current low range, and let the oil companies come in 'on the cheap'. The dinar MUST have a much higher value at that time, otherwise Iraqi will be sold off for literally pennies, or dinars, on the dollar.

While the exact arrangement of the investment law is not yet settled, deals have already been made in how the oil revenue will be shared amongst the different regions and groups in Iraq. So things are moving forward.

It is not yet known if the revaluing of the dinar will be an overnight thing, with no previous announcements, or if it will be a gradual increase as necessary. It should be pointed out that the value of many oilfields in Iraq is also not fully known, because actual modern geological surveys have not been done for decades, if at all, but even with this lack of recent study, the known reserve in the ground rivals that of Saudi Arabia. It is hoped that in the next decade, Iraq will achieve the same oil output as its southern neighbor. Nobody can deny that the potential is there.


From the time the pumps start working, Iraqi society will start getting more and more benefits from the oil revenue. The finances will be available for roads, schools, the electric grid, social programs, new equipment, better computers, etc. These oil-funded infrastructure improvements will help drive manufacturing, and in turn, generate more jobs. Social unrest is handled with police and justice, but it must also be handled with economics. A prosperous nation is a happy nation.

Finally, Iraq has been blessed with something very few Arab countries have. Water. The agricultural heartland of Iraq have one of the highest potentials of big development. With proper development, it could be the Iraqi equivalent of the orchards and fields of California's central valley. This development and the potential of it will only strengthen the dinar now and in the future.

Exciting Times, a Positive Direction
For the dinar, these are exciting times, but even more interesting when it comes to investing in the Iraq stock exchange, because as the oil revenue will start making things possible in Iraq, the opportunities to be in on the ground floor on different investment start ups, will increase. Knowing this is a nation destined for great wealth it makes it even more exciting.

Saudi Arabia, Dubai, the Arab Emirates and Kuwait; are they rich and prosperous states? Of course they are. Why are they wealthy? Oil. Oil is money. Iraq is practically floating on oil. When do the oil companies want to start pumping? ... Yesterday.

Will Iraq continue to be a poor nation? Will the dinar continue to be at it's all time low?
http://www.isx-data.com/opinion/140/...he-iraqi-dinar