Thread: Dinars Absorbed Into The Cbi

Originally Posted by deepfreeze

what does this mean? is it good news or bad news?

HE says it is good news, I am not exactly sure why. Perhaps it is because everyone is holding their Dinar because something is going to happen, making it harder to obtaing them??? Anyone else have any insight on this?

His english is poor, so I can't talk to him for to long, it starts to become jibberish, but he is excited to say the least.
Time will tell.

As more Dinars are removed by the CBI, it takes up that 'gap' that was once there, making (in most civilized countries) their money worth more on the open market. At one time there was so many dinars available that it was worth squat. I think a lot of us were around back when it was 4000, we are now down in the 1200's. Time is getting closer.

IMHO, these oil companies would not be sitting on the borders waiting and wasting time if something were not going to pop soon. Remember "time is money". There is too many positives which involve outside sources for Iraq not to move forward.

I can't help thinking that this explosion from yesterday, caught them off-guard, and delayed what could have been happening. But that is just my own 2cents.

Take care!

Originally Posted by goldraker

VERYYYYYYYYYY GOOOOOOOOOOD NEWSSSSSSSSSS!!!!!!!!

If these numbers are even just close . . . it means they have removed half, [ 11T Dinar ], of even the highest estimated number, [ 22T Dinar ], that has been estimated to be in circ . . .

Excellent over-all news . . .

Best to all . . . RR . . .

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I just lifted this section of the report from the IMF. I believe it supports what we are discussing on this thread. Thank You.

http://www.imf.org/external/pubs/cat...cfm?sk=20591.0


6. The central bank has tightened monetary policy and allowed the dinar to
appreciate, in order to contain inflation and counter dollarization. The growth of
currency in circulation and reserve money over the first 11 months of 2006 was well below
the inflation rate, reflecting the ongoing dollarization. Since late August, the CBI has started
issuing its own securities, which currently yield a return of 21 percent per annum. It also
raised its policy interest rate in two steps from 12 percent in early November to 20 percent as
of early January. The exchange rate appreciated by some 12½ percent from mid-November,
reaching ID 1,290 per U.S. dollar at end-January 2007. At the same time, gross international
reserves increased to $15.7 billion at end-November.
16. Monetary policy will be tightened further in 2007, if needed to help contain
inflationary pressures, and the CBI will continue to manage the exchange rate with a
view of reducing inflation and reversing dollarization. The central bank is committed to
letting the exchange rate appreciate further in the coming months in line with its November
2006 monetary policy statement, while keeping a close watch on the effectiveness of these
policies.


. Iraq has resolved most of the claims of Paris Club and private creditors. All bilateral
agreements with the Paris Club members except Russia have been signed. By end-July 2006,
Iraq had settled about $19 billion (or 96 percent) of private claims through debt and cash
exchange offers, including the arbitration process. The reconciliation process of the remaining
outstanding claims is ongoing.

Originally Posted by Wm.Knowles

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I just lifted this section of the report from the IMF. I believe it supports what we are discussing on this thread. Thank You.

http://www.imf.org/external/pubs/cat...cfm?sk=20591.0

Iraq has resolved most of the claims of Paris Club and private creditors. All bilateral agreements with the Paris Club members except Russia have been signed. By end-July 2006, Iraq had settled about $19 billion (or 96 percent) of private claims through debt and cash exchange offers, including the arbitration process. The reconciliation process of the remaining outstanding claims is ongoing.

Thanks, William. What do you think this means?

Originally Posted by Pegasus

Thanks, William. What do you think this means?

It may mean they made them an offer for a lesser amount and retired the debt. IMHO.

Being that this addresses 2004, could some of the excess dinars that were absorbed be Saddam dinars which were then replaced in circulation with the NID?

Originally Posted by Kevmo

Being that this addresses 2004, could some of the excess dinars that were absorbed be Saddam dinars which were then replaced in circulation with the NID?

Good question but the answer is no. Iraqis (Or anyone with old Saddam notes) had from October 2003 until January 2004 to exchange for the new IQD. Also, technically the Saddam notes were officially retired in Oct 2003, so the 2004 reports would only refer to "actual" monies in circulation, which would only be the new IQD.

Originally Posted by wellwishes

Good question but the answer is no. Iraqis (Or anyone with old Saddam notes) had from October 2003 until January 2004 to exchange for the new IQD. Also, technically the Saddam notes were officially retired in Oct 2003, so the 2004 reports would only refer to "actual" monies in circulation, which would only be the new IQD.

Excellent! This is a great find then. Thx ww

The exchange rate appreciated by some 12½ percent from mid-November,
reaching ID 1,290 per U.S. dollar at end-January 2007. At the same time, gross international
reserves increased to $15.7 billion at end-November.

What is interesting about this section of the above IMF report is that they have had adequate reserves to conduct the removal of currency from the economy and STILL have impressive currency reserves after having removed over 8 trillion. Impressive, since everone knows what to do about inflation, its just that few countries have the resources to do what is necessary to combat it, and decrease the available supply of currency in the market place. This is almost unheard of in the rest of the world. Thank You.