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

Economic : action Central Bank to raise the value of the dinar against the dollar convergence welcome economists

Some considered an important step towards reducing inflation

Baghdad Haider spring

Many economists specializing in finance and monetary actions the Iraqi Central Bank to lower the rate of the dinar against the dollar sale an important step on the road to control the volume of inflation.

They emphasized the importance of raising the interest rate of up to 12% in achieving the goal of curbing inflation would in the short term to stabilize the acceptable price prevailing in the Iraqi market.

It noted that the (morning) depression, and the upheaval of this action on the stock sale and purchase rates in most of the stores are banking Baghdad must follow this dangerous turn in the capital market in the Iraqi press statements, a number of different Concerned importance of the matter and the enemy of a remarkable step towards reducing inflation and raise the value of Iraqi dinar and reduce prices Els Alaa and services.

.When he said Ghalib Baban, Minister of Planning of the benefits of this procedure in Deflator, , which he also : The decision of the Central Bank, which came after extensive study by the stakeholders also aims to encourage holders of capital in addition to citizens in general on saving.
For his part, Governor of the Central Bank Sinan Shabibi : The aim of the Central Bank is currently limited in the fight against inflation, which reached about 76% and reduce the height by providing better conditions for economic development and improving the performance of the banking sector and provide stability.

The Shabibi said that among the reasons inflation is increasing cash in circulation, what required a new monetary policy aimed at improving the dollar's exchange rate towards reducing its price several points in the auction, organized by the Central Bank every day to sell the dollar to withdraw currency from circulation.
With the general director of research at the Central Bank of Iraq, Dr Mohamed Saleh appearance that the Central Bank is responsible by virtue of Law No. 56 of 2004 to cope with inflation and reducing levels as a basis of this principle adopted by the monetary policy in the performance of their duties, On this basis, he has the Central Bank to establish policy priorities, We are speaking here of monetary policy to combat inflationary activities using the tools available.

He adds : Saleh located in front of monetary policy variables and intermediate or intermediate objectives reflect on the relationship between the impact of these variables to reduce the general level of prices and contain inflation. Among these variables of interest rates stabilizing "long-term" and stabilizing the exchange rate, or investigative, and the levels prevailing exchange, Noting that these variables can control directly unless they are being singled through similar variables and the variables or operational objectives are references or means Acharateh or information be used to influence stability in the cash market.

Among these references technique interest rate, the Central Bank of Iraq, a price indication would be tantamount compass navigation to influence the behavior of interest rates, as determined by which the Central Bank lends Why? What banks deposited in the Central Bank? Under the control of the volume of cash as it is believed that whatever the confiscation of inflation, he eventually monetary phenomenon, Accordingly, the priorities are stability to the crisis logical to build and stimulate the economy.

Shows favor on this basis the inflation mainly to increase speed of money circulation and to abandon what leads to weak demand cash and the growing demand for goods and services as counterproductive, In order to maintain the cohesion of demand and maximize cash levels in order not to turn into strong spending on goods and services to the Central Bank, the use of tools in raising the interest rate has to stimulate the interest rate structure and maintaining the coherence of savings and maximize their purchasing power helps monetary policy to address the levels of flooding e high, contained within the monetary market "bank" without becoming bloc cash adrift direction of goods and services.

In the light of Matqdm highlights many of the questions in the forefront Can a Central Bank unit of curbing inflation and control the volume of cash and Majdoi raise the level of interest at the high prices?

Economists stressed the importance of the oldest in the Iraqi Central Bank of procedures to control the volume of inflation, which reached the high figures exceeded 70% through the reduction of dollar selling prices against the Iraqi dinar and raising the interest rate up to 12% from 10%, which generated a remarkable stability in prices in all the markets Iraqi recession in the selling and buying of the dollar in the banking most of the stores in Baghdad.

The economists also stressed the importance that the Central Bank will continue this approach, which would curb inflation, which now threatens the stability of all the situation in Iraq, including security and social addition to the economic situation.

The observers speculate that the rise in the value of the Iraqi dinar against the dollar would reduce inflation and revive the economic situation of Iraqi families, which has suffered greatly because of the high rate of inflation, which was born the burden of large households now borne citizen addition to the deterioration of the level of savings is clear Which prompted the Central Bank to take this action, which many observers several step towards a comprehensive reform of the Iraqi economy.

Translated version of http://www.alsabaah.com/

Cheers!
DayDream

Originally Posted by DayDream

I created it from a painting...inserted the figures.

Cheers!
DayDream

Thats a Thomas Kinkaid print. I have one just like minus the add on art work.

You know with all the new news articles that have come out in last couple of days.
A lot of them today, THIS BABY COULD HAPPEN ANY DAY NOW
It's funny no news for so long,
and then BANG, Like their openly saying HERE IT IS

President Bush Meets with His Eminence Abdul-Aziz Al-Hakim, Leader of the Supreme Council for the Islamic Revolution in Iraq
PRESIDENT BUSH: Your Eminence, welcome back to the Oval Office. This is the second opportunity I've had to meet with one of the distinguished leaders of a free Iraq. This is a man whose family suffered unbelievable violence at the hands of the dictator, Saddam Hussein. He lost nearly 60 family members, and yet rather than being bitter, he's involved with helping the new government succeed.

We talked about a lot of important issues. I appreciate so very much His Eminence's commitment to a unity government. I assured him the United States supports his work and the work of the Prime Minister to unify the country. Part of unifying Iraq is for the elected leaders and society leaders to reject the extremists that are trying to stop the advance of this young democracy. I appreciated very much His Eminence's strong position against the murder of innocent life.

We talked about the need to give the government of Iraq more capability, as quickly as possible, so that the elected government of Iraq can do that which the Iraqi people want, which is to secure their country from the extremists and murderers. I told His Eminence that I was proud of the courage of the Iraqi people. I told him that we're not satisfied with the pace of progress in Iraq, and that we want to continue to work with the sovereign government of Iraq to accomplish our mutual objectives, which is a free country that can govern itself, sustain itself, and defend itself; a free country which will serve as an ally in the war against the extremists and radicals and terrorists.

So, Your Eminence, welcome back. Thank you for the very constructive conversation we had.

SCIRI LEADER HAKIM: In the name of God, the merciful, the passionate, and blessing upon Prophet Mohammed and his purified family and his loyal companions. My meeting with President Bush today emerges from our shared commitment to continue dialogue and consultation among us and also on the basis of our conviction that the Iraqi issue is a mutual interest. It's an issue that requires coordination between the two sides in a way that concerns both of us politically and from a security point of view and economic point of view, as well.

Therefore, our conversation today focused on ways to advance the work of the Iraqi government, the elected government, as well as to advance the whole situation in Iraq and move it forward. Also, we have discussed ways in order to provide all the necessities that the Iraqi armed forces will need, in terms of armament, in terms of trainings, in order to be in a position to assume the security file.

The Iraqi situation has been subjected to a great deal of defamation, and the true picture is not being presented in order to show a dark side of what's happening in Iraq. We see the attempts to defame and distort the situation in Iraq not taking into consideration the democratic steps that that country has taken, writing the constitution and establishing a state that depends heavily on the constitution, that it is unified and that it is strong. There are attempts to show the sectarian strife in an attempt to weaken the position in Iraq.

The U.S. interests, the Iraqi interests, the regional interests, they are all linked. Therefore, it is very important when we deal with this issue, we look at the interests of the Iraqi people. If we don't, this whole issue could backfire and could harm the interests of the region, the United States, and Iraq, as well.

Therefore, we believe that the Iraqi issue should be solved by the Iraqis with the help of friends everywhere. But we reject any attempts to have a regional or international role in solving the Iraqi issue. We cannot bypass the political process. Iraq should be in a position to solve Iraqi problems. We welcome any effort that could enhance the democratic reality in Iraq and protect the constitutional role of that state.

We have gone a long way to establish a democratic and pluralistic society in Iraq. We have given a great deal of sacrifice to achieving the objective. We cherish all the sacrifices that took place for the liberation and the freedom of Iraq, sacrifices by the Iraqi people, as well as friendly nations, and on top of that list, sacrifices by the Americans. We have now an elected government in Iraq, a government that is so determined to combat both violence and terror, a government that it is -- strongly believes in the unity of that government and of that country and the society, a government that deals and will deal with all the sources of terrorism regardless where they come from.

We will work very hard and seek all forms of cooperation at the international level and the regional level in order to defeat terrorism that it is trying to use Iraq as a base in order to sabotage the future of that nation.

Thank you very much, Mr. President, for allowing me this opportunity to meet with you. I would like to take this opportunity also to thank the American people and their sympathy toward Iraq, those who helped Iraq to get rid of a brutal dictatorship and to enjoy freedom and liberties.

PRESIDENT BUSH: Thank you all.

Cheers!
DayDream

Originally Posted by day dreamer

You know with all the new news articles that have come out in last couple of days.
A lot of them today, THIS BABY COULD HAPPEN ANY DAY NOW
It's funny no news for so long,
and then BANG, Like their openly saying HERE IT IS

Are you kin to Charmed Piper? lol

Here's one for you, Next years budget is 42 billion dollars ( 59 trillion dinars ), how can they do that with only 20 trillion dinars printed? Answer, they can't!!!
THIS BABY IS GOING TO HIT BIG!!!!

Originally Posted by day dreamer
You know with all the new news articles that have come out in last couple of days.
A lot of them today, THIS BABY COULD HAPPEN ANY DAY NOW
It's funny no news for so long,
and then BANG, Like their openly saying HERE IT IS

Originally Posted by cigarman

Are you kin to Charmed Piper? lol

OF COURSE,
DID YOU FORGET WE'RE ALL ONE BIG HAPPY FAMILY HERE

Originally Posted by CharmedPiper

30% of oil revenue to distribute among citizens

Baghdad, Dec. 6,

P. 1

Some of MP's become engaged in establishment a draft law would imposes on Government to distribute 30% of oil revenues monthly among citizens, MP Noorudeen Alhiali saidHe added that principles of the draft law discussed with Minister of Planning Ali Baban and head of economical committee of Cabinet Dr. Haider Alibadi.

Economists estimate Iraq oil revenues annually to exceed 30 billion dollars which means distribution 10 billion dollars among citizens as monthly salaries.

Alhiali said that draft law would divide people into three classes.He added that that quota is different from

ÌÑíÏÉ ÇáÕÈÇÍ - 30% of oil revenue to distribute among citizens

Hmmm, let's see. As of 29 November, total oil sales was $29B. That's about an average of $2.6B per month. So let's say for the entire year of 2006, they made $32B. 30% of $32B is $9.6B. $9.6B divided by 12 = $800M per month that they're going to distribute to the Iraqis. At the current exchange rate of 1424/USD, $800M is worth 1,139,200,000,000 IQD per month that they're going to distribute. They're going to flood Iraq with IQDs at that rate, they're going to need the printing presses running. They're going to supply over 12T IQD in a year, that took them almost 3 years to circulate. Not gonna happen.

Here is a copy of the IAMB extension. If this has been extended then we could expect a reval anytime now and not necessarily until after the meeting of the IAMB....am I right in this thinking???

United Nations S/RES/1723 (2006)
Security Council
Distr.: General
28 November 2006
06-63235 (E)
*0663235*
Resolution 1723 (2006)
Adopted by the Security Council at its 5574th meeting on
28 November 2006
The Security Council,
Welcoming the formation of a national unity government in Iraq with a detailed
political, economic and security programme and a strong national reconciliation
agenda and looking forward to the day Iraqi forces assume full responsibility for the
maintenance of security and stability in their country, thus allowing the completion of the multinational force mandate and the end of its presence in Iraq, Welcoming the progress made to date in the training and equipping of Iraqi security forces as well as in the transfer of security responsibilities to those forces in Muthanna and Dhi Qar provinces and looking forward to the continuation of that process during 2007, Recalling all of its previous relevant resolutions on Iraq, Reaffirming the independence, sovereignty, unity, and territorial integrity of Iraq, Reaffirming also the right of the Iraqi people freely to determine their own political future and control their own national resources, Welcoming the continuing work of the Government of Iraq towards a federal, democratic, pluralistic, and unified Iraq, in which there is full respect for human rights, Welcoming the vital role played by the Government of Iraq in continuing to promote national dialogue and reconciliation in pursuit of an atmosphere in which sectarianism is totally rejected, including the National Reconciliation Plan announced by Iraqi Prime Minister al-Maliki, stressing the importance of the rapid implementation of the plan, and reaffirming the willingness of the international community to work closely with the Government of Iraq to assist these reconciliation efforts, Recognizing the International Compact with Iraq, an initiative of the Government of Iraq to create a new partnership with the international community and to build a strong framework for Iraq’s continued political, security and economic transformation and integration into the regional and global economy, and
welcoming the important role that the United Nations is playing by jointly chairing the Compact with the Government of Iraq, S/RES/1723 (2006)
2 06-63235 Calling upon the international community, particularly countries in the region and Iraq’s neighbours, to support the Iraqi people in their pursuit of peace, stability, security, democracy, and prosperity, and noting that the successful implementation of this resolution will contribute to regional stability, Demanding those who use violence in an attempt to subvert the political process should lay down their arms and participate in the political process, and encouraging the Government of Iraq to continue to engage with all those who renounce violence, Reaffirming that acts of terrorism must not be allowed to disrupt Iraq’s political and economic transition, and further reaffirming the obligations of Member States under resolution 1618 (2005) of 4 August 2005 and other relevant resolutions and international conventions with respect, inter alia, to terrorist activities in and from Iraq or against its citizens, Recognizing the request conveyed in the letter of 11 November 2006 from the Prime Minister of Iraq to the President of the Council, which is annexed to this resolution, to retain the presence of the multinational force in Iraq, and affirming the common goals therein: Iraqi assumption of recruiting, training, equipping, and arming of the Iraqi Security Forces; Iraqi assumption of command and control over Iraqi forces; and the transfer of responsibility for security to the Government of Iraq, Recognizing the importance of consent of the sovereign government of Iraq for
the presence of the multinational force and of close coordination and partnership between the multinational force and that government,
Welcoming the willingness of the multinational force to continue efforts to
contribute to the maintenance of security and stability in Iraq, including
participating in the provision of humanitarian and reconstruction assistance, as described in the letter of 17 November 2006 from the United States Secretary of State to the President of the Council, which is annexed to this resolution, Recognizing the tasks and arrangements set out in letters annexed to resolution 1546 (2004) of 8 June 2004 and the cooperative implementation by the Government of Iraq and the multinational force of those arrangements, Affirming the importance for all forces promoting the maintenance of security and stability in Iraq to act in accordance with international law, including obligations under international humanitarian law, and to cooperate with the relevant international organizations, and welcoming their commitments in this regard, Recalling the establishment of the United Nations Assistance Mission for Iraq (UNAMI) on 14 August 2003, and affirming that the United Nations should continue to play a leading role in assisting the Iraqi people and government with further political and economic development, including advising and supporting the Government of Iraq, providing strong support in developing the International Compact with Iraq, contributing to coordination and delivery of reconstruction, development and humanitarian assistance, and promoting the protection of human rights, national reconciliation, as well as judicial and legal reform in order to
strengthen the rule of law in Iraq, Recognizing that international support for security and stability is essential to the well-being of the people of Iraq as well as the ability of all concerned, including S/RES/1723 (2006) 06-63235 3
the United Nations, to carry out their work on behalf of the people of Iraq, and expressing appreciation for Member State contributions in this regard under resolution 1483 (2003), resolution 1511 (2003), resolution 1546 (2004) and resolution 1637 (2005), Recognizing that the Government of Iraq will continue to have the primary role in coordinating international assistance to Iraq and reaffirming the importance of international assistance and evelopment of the Iraqi economy and the importance of coordinated donor assistance, Recognizing the significant role of the Development Fund for Iraq and the International Advisory and Monitoring Board in helping the Government of Iraq to ensure that Iraq’s resources are being used transparently and equitably for the benefit of the people of Iraq,
Stressing the responsibility of the Iraqi authorities to undertake all appropriate
steps to prevent attacks on the diplomatic personnel accredited in Iraq in accordance with the Vienna Convention on Diplomatic Relations of 1961,
Determining that the situation in Iraq continues to constitute a threat to
international peace and security, Acting under Chapter VII of the Charter of the United Nations,

1. Notes that the presence of the multinational force in Iraq is at the request of the Government of Iraq and reaffirms the authorization for the multinational force as set forth in resolution 1546 (2004) and decides to extend the mandate of the multinational force as set forth in that resolution until 31 December 2007, taking into consideration the Iraqi Prime Minister’s letter dated 11 November 2006 and the United States Secretary of State’s letter dated 17 November 2006;

2. Decides further that the mandate for the multinational force shall be
reviewed at the request of the Government of Iraq or no later than 15 June 2007, and declares that it will terminate this mandate earlier if requested by the Government of Iraq;

3. Decides to extend until 31 December 2007 the arrangements established
in paragraph 20 of resolution 1483 (2003) for the depositing into the Development Fund for Iraq of proceeds from export sales of petroleum, petroleum products, and natural gas and the arrangements referred to in paragraph 12 of resolution 1483 (2003) and paragraph 24 of resolution 1546 (2004) for the monitoring of the Development Fund for Iraq by the International Advisory and Monitoring Board;


4. Decides further that the provisions in the above paragraph for the deposit
of proceeds into the Development Fund for Iraq and for the role of the International Advisory and Monitoring Board shall be reviewed at the request of the Government of Iraq or no later than 15 June 2007;

5. Requests that the Secretary-General continue to report to the Council on
UNAMI operations in Iraq on a quarterly basis;

6. Requests that the United States, on behalf of the multinational force,
continue to report to the Council on the efforts and progress of this force on a quarterly basis;

7. Decides to remain actively seized of the matter.

Originally Posted by "GK"

Hmmm, let's see. As of 29 November, total oil sales was $29B. That's about an average of $2.6B per month. So let's say for the entire year of 2006, they made $32B. 30% of $32B is $9.6B. $9.6B divided by 12 = $800M per month that they're going to distribute to the Iraqis. At the current exchange rate of 1424/USD, $800M is worth 1,139,200,000,000 IQD per month that they're going to distribute. They're going to flood Iraq with IQDs at that rate, they're going to need the printing presses running. They're going to supply over 12T IQD in a year, that took them almost 3 years to circulate. Not gonna happen.

EXACTLY!!!! And they are not going to give this money in USD because they said they wand to AVOID dollarization