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Idaho seizes Iraqi dinars in investment scheme case.
http://www.spokesman.com/stories/2009/jul/01/idaho-seizes-iraqi-dinars-in-investment-scheme/
Man promised victims they’d get big payoff when currency rose in value, state says
The state of Idaho has seized about $1 million worth of Iraqi dinars purchased in a Coeur d’Alene man’s investment scheme.
Jack Lee Smiley purportedly promised to turn a $1,000 investment into a $1 million windfall for investors who’d give him money to buy up Iraqi dinars. He told investors the dinars would increase in value when a new currency – backed by the United States, England and Israel and tied to oil contracts – was issued in late 2007, court records said.
Smiley ran the promotion from 2004 until April 2007, despite a 2005 cease-and-desist order issued by the …
One more for you.
http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=237500&version=1&template_id=48&parent_id=28
Iraq central bank takes steps to ‘rebase dinar’
BAGHDAD: The Central Bank of Iraq has taken steps to rebase the Iraqi dinar and issue new banknotes, a senior official at the bank has said.
“We have reached a conclusion that we should take off three zeroes from the current Iraqi dinar banknotes,” Mudher Qasim, the bank’s senior advisor, told Dow Jones Newswires in an exclusive interview.
“The process is progressing and we have taken some steps,” Qasim said. “We will issue a decision in due time.”
Qasim didn’t give a timeframe when that decision would be taken, but said printing new banknotes and fully replacing old notes would take two years from the time the decision is taken.
Iraqi Finance Minister Bayan Jabor said his ministry had suggested to the central bank to take off three zeroes from the current Iraqi dinar banknotes. “The Central Bank governor (Sinan Al-Shabibi) has informed me that the bank is in the process of taking that decision,” Jabor told the state-run Al-Iraqia Satellite Channel this week.
“The Central Bank of Iraq supports what the finance minister was saying,” Qasim said.
If the rebase decision is taken, it means a current 25,000 Iraqi dinar banknote will become 25 dinars, for example. When three zeroes are knocked off the Iraqi dinar, a dollar will equal only 1.20 dinars.
Currency rebasings are usually monetarily neutral and are introduced to make commercial calculations and cash dealing easier and cheaper. Turkey knocked six zeroes off its lira currency January 1, 2005, for example. Russia did the same for its currency.
“In a country like Iraq where cash consists 80% of money dealing, we need smaller bank notes,” Qasim said, adding that current Iraqi banknotes were difficult to store and need strict security measures when moving money from one place to another.
There are now some 20tn Iraqi dinar banknotes in use in the market, which is a very big amount and if Iraq knocked 3 zeroes it would become 20bn dinars which is a reasonable amount, he said.
Qasim also said one of the reasons for rebasing the Iraqi dinar is because the bank has managed to reduce the country’s high rates of inflation. The inflation rate fell to 14.7% in May this year from a record high of 60% in late 2006.
In July 2004, the now dissolved US civilian authority in Iraq decided to print the current Iraqi banknotes replacing those used to bear the picture of the former Iraqi leader Saddam Hussein. Iraqis then had three months to swap their old dinars with the new ones.
“This time we aren’t in hurry, if it takes two years to swap the new currency with the old one, then let it so,” Qasim said.
The current banknotes were printed by Britain’s De La Rue, the world’s biggest commercial printer of bank notes.
Jabor said in November last year that the central bank would rebase the dinar in early 2008. – Dow Jones Newswires
http://www.iraqdirectory.com/DisplayNews.aspx?id=6980
The Central Back of Iraq stresses on zeros lopping
The Central Back of Iraq stresses on zeros lopping
Translated by IRAQdirectory.com - [9/29/2008]
The Central Bank of Iraq consultant, stressed last Wednesday, on the bank's determination to proceed with the project to delete the zeros of the Iraqi dinar to convert thousand dinars to one dinar, referring to the adoption of long-term plan for the project, which would be reluctant to the huge cash in Iraq.
Dr. Modhir Mohammad Saleh, added that "the bank will rely, in any case, on a long-term plan for the implementation of the project, in order to avoid any disruption reflected in the cash arena, which will move on based studies and slow and accurate resolution of all problems in the trading bloc committed a result of enormity of bulging cash in the Iraqi market. "
The factors of this action, which he described as very important by saying that "Iraq is one of the countries hit by hyper-inflation in more than two decades ago, reflected in monetary hyperinflation, for example, the monetary issuance increased of approximately 25 billion dinars in the early nineties, to be in 2003 Six thousand billion. "
He added, "If we add significant structural changes on the size of the budget that is the source of expansion in the monetary bloc, we can say that the country does not have the ability to stand such circulations in a large amount of cash currency units, a legacy of a hyper-inflation."
And that "many countries of the world suffered from this problem and turned their economies towards relative stability, it must find a solution to curb the enormous mass of cash to facilitate exchange of cash in Iraqi society, which mainly deal with cash money rather than the use of advanced banking payment."
He added, "This means we need urgently to the availability of substantial monetary of value and with small-scale to return to the easy system of payments and lead to facilitate transactions."
He cites the example of the saying that the category of 25 dinar in 1980 was equivalent to more than $ 75, the largest category of cash at the time, while in the highest category at present is the key category of 25 thousand dinars, and equals only $ 23. "
He added "to notice the difference .. that Iraq needs to have banknotes with high value and small size to facilitate the exchange and perform the functions of the various money."
Saleh continued of clarifying the problems impeding the performance of existing cash, saying: "One of the problems is " dollarisation "the Iraqi economy, the demand for one hundred dollars category to facilitate large transactions paid in cash, which represents about 120 thousand dinars, which means that the actual Iraqi economy needs to Category or categories of high value cash to facilitate the exchange especially in large deals. "
And about the contentment of the Bank's approach to the deletion of zeros, the central bank consultant said "the studies intend in this regard to circulate a new categories gradually and comfortably, and not limited to the replacement."
He noted that "this will give a lot of prosperity and stability in the availability of high and strong liquidity to facilitate transactions in line with the stage of growth and optimistic economic prosperity that Iraq will see in the months or years to come." He added, that "relatively long-term project would be included in the cash economy gradually that to add a lot of comfort and harmony in the economic situation."
The "trend is the deletion of three zeroes, instead of dealing with monetary issuance of $ 18 trillion dinars, our economy will deal with not more than 15 billion dinars, a mass of different categories to facilitate criticism, circulation and encourages banks to accept cash deposits."
"We know for example that one of the biggest problems at the present time the problem of counting and verification of counterfeit currency or the offense, and this burden to the banking system, and a burden on the citizen as well."
The central bank consultant concluded to say that "low cost counting and other leads to a decline in inflation by an estimated rate of 3%, resulting from the cost of cash transactions of large deals, as a citizen in Basra for example, wants to transfer funds cash to Baghdad through the category of dollar, he has to burden and costs of commissions coming from the conversion process. The cost added to the prices of transactions inevitably
Can't get much cleare than that highlighted part. From Trllion to Billions, that's a LOP!
couple of the old articles
http://kurdistanstockexchange.services.officelive.com/Documents/MEI2%20Review%203%20Iraq%20Chapter.pdf
As of end of 2008, the Central Bank of Iraq is considering readjusting its national currency to levels similar to realities and feasibility for economic development, so the Central Bank is considering dropping three zeros to its currency and to diminish dollar dependencies as US troops leave and Iraqi army takes over security control of the country.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://en.aswataliraq.info/%3Fp%3D101904
CBI described the removal of 3 inflation-generated 0's from Iraqi banknotes “a normal procedure by most central banks in countries that have gone through long periods of high inflation…
Yes... of course. LOL... are you kidding???? You've been living in penny stock land too long... where companies come out and tell you their stock is going to soar and you fall for it.
This is the real world... countries DO NOT come out and announce that their currency is going to go up 100,000%.
It is a joke to even consider that the case.
On the other hand, lops are neutral... no gain, no loss. So it's no big deal to talk about it.
As he stated... this was decided a while back. There were 6 or 7 articles about it back last fall. It was clear they were talking about a lop. They even said it would be just like they did in Turkey, Russia, and Afghanistan. Those countries lopped, they did not do a large RV. No one has ever or ever will do a huge RV like that.
That one I might believe... we all know how MJ was with his money.
Over the years it's not only been Trump... the pumpers have claimed Warren Buffet was a big investor. Hillary Clinton supposedly bought a bunch. Of course Bush and Cheney have a big stash. I think they even had Oprah buying some.
3 zero lop still coming.
Investment Law should be amended .. Minister of Finance of the (term): We are still working
legislation enacted prior to (23) years
Astuser three times in
Iraq after the change, took up his duties as minister of housing and reconstruction,
and thus the Interior, and now
the Ministry of Finance. ا
Has sparked debate
in the Iraqi street, through the alleged prevention of the recruitment
and the low salaries of retirees
and its ministries Petrciq budget all
these questions and other campaign
themes (term) in a guest Thursday, Iraqi Finance Minister Bayan Jabr, stressing that it has completed 80% of
Finance of the proposed law to increase salaries Retired Associate
Director-General of the degree or below.
The files on the
administrative corruption in the ministry, said Zubeidi: first that the
ministries of Finance, which sent Deputy Minister and three directors to two years imprisonment, as well as
the seizure of 67 trucks at the border gates to their involvement with issues of corruption,
administrative and finance staff
are on the operationalization of the investment law, the minister said that the
law needs to be some of the most important changes of ownership of the land on
which the investor held the project argued that the capital and a coward in the case of alleged failure to ensure that
the allocations given by the Prime Minister of writers, journalists and artists, the Minister noted that Finance has not
issued a decision of the House of Representatives legislative position PROFILE
regardless of that award, because without the law is contrary to the legal
department, with the following
text of the interview: The need to increase the rates of
export of oil
*Q: Do you find the budget adequate for the advancement by the country?
- budget year, affected by the global crisis
eased important for two reasons
first, the decline of our exports of oil and it is the second reduction in oil prices, at a time when the price of a barrel of oil to $ 147 at the end of last year 2008, dropped to the price
of 30 dollars and 37 dollars, at the present time there is an improvement
However, the budget drawn up and set
the height of the crisis in the financial sector has been affected and thus investing in provincial ministries, while the funds allocated to the investment of 20 billion dollars to 14 billion dollars
this undoubtedly will have an impact on the actual investment of the country.
* Q:
So, enough of the budget?
- Yes, enough
of the reality if we are to promote the
service and investment in the
country's high budget, so we get the proportion of the export of oil production
and not to re-If we could make of the 3-4
million barrels per day, we have provided an ambitious budgets of up to 100
billion dollars then we can We say that we are able to meet Baltazamtna.
Approve a
supplementary budget is very limited
*Q: Are there any supplementary budget Mahgmeha
Ptsourkm after the improvement in the prices of oil?
- - Yes, there are
improved, but oscillatory, the price rise to find the proportion of 65 and then
back down, so we are watching closely the rates and the rates of export prices, when there is a tendency to
feel that a real rise in export volumes as well as high prices turn to approve
the budget is very limited to not
more than 5% of of the current budget, the investment law will need to be
amended.
* Q: How do you create and foster a safe legal environment for investment and realistic?
- - Investment environment needs to be valid depends on
multiple grounds, first, security and stability, because the capital coward, II should make changes to many
of the laws, both in the investment law, relating to Awalqguanin other
investors to protect the
investment law No. 13 of the laws
of good and is one of the best laws investment in the region, but some points
that need to be adjustments.
*م Q:
What is the most prominent of those points?
- -
Inter alia, that the investor owns the land, because if investors started
to build housing units and the land on behalf of the Government has generated a
kind of fear and anxiety in
neighboring countries, for example, when the investor owns half of the land to
him. So that it can sell if the investor wanted to build a hotel of five stars
or Hospital must be advanced on behalf of the land and the hospital or housing complex or hotel Tstrdjah after
fifty years if the lease refers to "Therefore, I submitted a proposal to
the Council of Ministers and approved
by the Council, which the investor's
ownership of the land rather than for foreign ownership, but ownership for
investment and those projects will
belong to Iraq because he is non-movable building and the investor can not transfer by plane, for example.
We're still
working on the law initiated by 23 years
*Q: Are there any other constraints on investment?
- - I think that security and law envoy advent of the investor and the investment code and working effectively and we now have an investment project of building a
five-star hotel.
*We do not need hotels, but the housing complexes?
- - For residential complexes there is a lot of projects
in the provinces on the parks, but obstructs the work of the law is complex,
and there is for example the law of 32
for the year 1986 the law was initiated
23 years ago and still we are to
now, we need new laws, and we have some
to the House of Representatives We wish the Council to speed up delivery of
land titling for investors to
start implementing the projects.
*How long the
remainder funded by the State budget of some public sector projects with proven
ineffective?
-
- Totally agree with you in this
vision, and tell us to leave the
public sector companies, or at the direction of privatization Almsatahp as in
the three cement plants operating now, which is able to produce that work
to protect the company, we commit to give
wages are always the same and the
previous wage or more. We have to set of laws to protect the
unemployed workers in these institutions and the government has to leave the public sector
and give it to the private sector
for the purpose of investment, but if the case is now on what we will pay
the balance of the money was supposed to hit in the country. *Do you feel the level of exchange for the Iraqi
dinar with the foreign currencies in the level of ambition, or that there was a
sign that Astqguaih again?
- After the fall
of the dollar was equal to three thousand dinars and then settled on the 1500
and now has stabilized between 1170 -
1180, and this signals that the
price of a good and proper
and was required to guide us is the
central bank in brackets because it
is not independent of the ministry,
the need to raise the Talibnah zeroes, to be Iraqi dinar equivalent of 1.01
dollars, or the limits of an attempt to restore the real value of the dinar as a country to the Iraqi oil.
*هIs it possible to note that soon?
- Yes, very possible, the Board of Directors of the Central Bank made the decision
in this regard, but the implementation process needs time. We allocate the
staff to eliminate some of them
executed and the other jailed*وDo you find Rtkm Loza immune from corruption?
- I regret to say we inherited a corrupt financially
and administratively from the previous
regime under the false and absurd
policies by the regime, wars, siege, and was born the so-called rampant corruption in state institutions, what
we expect of one of his monthly salary of three dollars, of course, be forced
to take refuge in a box of financial
and administrative corruption ,
and now, praise God and the good salaries are now already in the activation of
its oversight role and the prosecution
of the corrupt and anti-corruption,
and if we talked about the Ministry of Finance, we have held important meetings
with the Legal Department and the Inspector
General and found there a law
allowing the Minister to sack the
corrupt official concerned more here
http://translate.google.com/translate?hl=en&langpair=ar|en&u=http://almadapaper.net/paper.php%3Fsource%3Dakbar%26mlf%3Dinterpage%26sid %3D70108&prev=/translate_s%3Fhl%3Den%26q%3Dthe%2Bneed%2Bto%2Brais e%2Bthe%2B%2Bzeroes,%2Bto%2Bbe%2BIraqi%2Bdinar%2Be quivalent%2Bof%2B%26sl%3Den%26tl%3Dar
http://translate.google.com/translate?hl=en&langpair=ar|en&u=http://209.85.225.102/search%3Fq%3Dcache:EHvs8MsgitAJ:almadapaper.net/paper.php%253Fsource%253Dakbar%2526mlf%253Dinterpa ge%2526sid%253D70108%26hl%3Den%26ct%3Dclnk%26cd%3D 6&prev=/translate_s%3Fhl%3Den%26q%3Dthe%2Bneed%2Bto%2Brais e%2Bthe%2B%2Bzeroes,%2Bto%2Bbe%2BIraqi%2Bdinar%2Be quivalent%2Bof%2B%26sl%3Den%26tl%3Dar
LOLOLOL.... that's the same Boston Globe article that had these statements.... wonder why the dinar pumper didn't include these...
http://www.bostonmagazine.com/articles/a_fistful_of_dinars/
Jeffrey Frankel, a Harvard economics professor
To critics, the fact that the dinar’s resale value relies on the enthusiasm of other speculators makes it little more than a collectible—or worse, the central element in an elaborate pyramid scheme. Jeffrey Frankel, a Harvard economics professor, calls the activity “pretend currency trading.” “I’ve received a large number of e-mails from people saying, ‘I understand you’re an expert on Iraq. Do you have any views? Can you advise me?’” he says. “I get the feeling that all these people doing this shouldn’t be. They’re little people, they don’t know what they’re doing, and they’re going to lose a lot of money.”
I like the quote from the dinar dealer in last paragraph.
Then, as he stands to see me to the door, Canavan perks up again. Lately, he says, he’s been looking into a new business venture, one that promises to be quite interesting. If the zero lop does happen, investors across the United States will be looking to cut their losses—there will be “pandemonium,” a “mad scramble” to get billions of dinars back to Baghdad. It’ll be difficult work, chaotic, fraught with danger and uncertainty. Canavan is confident that he’d be the man for the job.
LOL... thanks for your "baseless" opinion.
More "DINAR" info from AC. This is not about a newspaper or a power plant or a loan or a bank or a meeting that has nothing to do with the dinar. This is about the dinar... some might not like it and think that dinar info should not be posted on this site.
http://www.americancontractor.com/2009/06/cbi_and_treasury_bills.html#more
RV UPDATE
There is still no evidence of a shift of the Iraq Dinar currency anytime soon especially when the Central Bank of Iraq has to execute the sale of the Iraqi government 2.8 Billion Treasury Bills. You have to consider also the meeting next month with the United Nations SC. Oil Contracts, serving arrest warrants for corrupt figures, acting Trade Ministry, first 30 days of oil exporting from northern Iraq.
The U.S. Dollar is still alive and well inside Iraq. Just maybe the CBI is creating the scarcity of the dollar in order to devalue the dinar...just thinking out loud.
In my next post I will talk about the already happening pricing and 3 digits it is interesting something no one mentions any where.
More to Follow...
LOL… 90 percent of the post people put on here are totally irrelevant to the dinar, and I’ve yet to see you complain about one of them. Here I post a link that is directly speaking of the dinar and you have a cow… all because it’s not what you want to here. Yeah… there is no link, give it a day or two and maybe it will be repeated by other media sources… maybe it wont. I don’t care… again… just posting a link to a mention of the dinar.
If American Contractor is correct. Rick is right on.
http://www.americancontractor.com/
June 18, 2009
Central Bank of Iraq - 17 June 2009
Iraqi Central Bank discusses possibility of removing zeros from Iraqi currency to increase dinar's morale value without affecting its real value.
Just reported in Arab Media...
Posted by American Contractor at 12:35 AM
That's a lop.
You are correct. The banks need dollars because their customers, businesses in particular, need the dollars to conduct international business. Nobody outside of Iraq will accept dinars, so they need dollars for all international transactions.
The Iraqi government needs the dinars to fund the budget. The Iraq budget for 2009 was about $60 Billion… or 70 Trillion dinars. There was an article out a while back that stated Iraq’s budget expenditures are about 70% dinar and the rest dollars. So they need 70% of 70 Trillion just for the budget. That’s basically 50 Trillion dinars. Since they have very little revenue in dinars, they must get all that dinar from the auctions. That’s 4 Trillion a month they need to buy back just to break even on the budget. They aren’t buying that much back, so that’s why the M2 numbers keep going up. They would be going up at a much faster rate if not for the auctions though. This all explains perfectly that article that Rasica has posted 100 or so times. Yes, they are buying back 1 to 1.5 billion dollars worth back every month. That doesn’t even cover what they need for the budget. That’s why the M2 and currency in circ numbers have grown for the entire year he has been posting that article.
Just for info… The US has about a 3 trillion dollar a year budget. It is paid for with about 3 Trillion dollars a year tax revenues. At least that’s the way it’s supposed to work. Obviously those numbers have gotten pretty screwed up lately. Iraq doesn’t work like that, they don’t generate much tax revenue. 90-95% of their revenue is dollars from oil.
They both are posted on Learning Markets... Nasdaq just happened to pick up part one.
Did I miss something Tim? Did someone claim it talked about a lop?
There is nothing in that story about a RV. Nothing at all. He's just pumping and making stuff up as usual.
The chart is so simple a second grader can understand it. The street rate is clearly going up. Even you can’t deny that. There were a number of articles that stated it, and now the CBI chart has been updated to show it. When the street rate moves away from the CBI rate, that absolutely is pressure on the CBI to do something about it. If the street rate devalues, then the pressure is to devalue the dinar. If the street rate increases in value beyond that of the CBI rate, then that is pressure to increase the CBI rate for the dinar.
The CBI main goal is to provide stability in the dinar, that has been stated 1000’s of times. When the street rate diverges from the official rate, that is instability. The CBI then acts to get the two rates back close together. They have different mechanisms to do that. They can do it through the auctions, or they can just change the rate. In this latest case, they are trying to do it through auctions. The rate went up because of a lack of dollars in the market. So the CBI pumped out more dollars in the auctions. If that doesn’t work they will be forced to raise the rate.
LOL.. My chart? You mean the Central Bank of Iraq chart is wrong? The CBI doesn't know what's happening with the exchange rate in Iraq?
Pressure to DEvalue the dinar.
From the Central Bank of Iraq.
You lose that comparison even worse. They have to support the entire money supply, that's why I use that number, but if you want to talk currency in circ, then let's do it.
http://www.cbi.iq/xl&wr/key%20financial.xls
Line 65.
Iraq currency in circulation is actually 20 Trillion as of last report. Not surprised you would have the wrong figure. I've only provided the link and shown you where to find it about 100 times.
Now look at Kuwaits currency in circ.
http://www.cbk.gov.kw/cbkweb/servlet/cbkmain?Action=mtbl&archive=200904&tbl=RM02
Yes... that is 771 MILLION... MILLION, not billions and certainly not trillions.
LOLOLOL... Iraq has 25940 times more currency in circulation.... yes that is basically 26 THOUSAND times more currency in circulation.
Iraq has 37 trillion dinars to support.
Kuwait has about 20 Billion dinars to support.
So Iraq has almost 2000 times more currency. That's 200,000% percent more.
Why can you not understand that part of the equation?
Current GDP vs Money Supply.
Iraq is right where they are supposed to be.
SA has 1st GDP, 382B… and 1st money supply $240B
UAE is 2 GDP, 190B… and 2 money supply, $220B
Kuwait 3 GDP, 115B… and 3 money supply, $77B
Qatar is 4 GDP,73B… and 4 money supp, $41B
Iraq is 5 in GDP, 50B… and 5 money supply, $26B
Oman is 6 GDP, 40B… but 7 money supply $19.5B
Bahrain is 7 GDP, 17B… but 6 money supply $21B
Facts again prove you wrong.
LOL... you claim "Hogwash" yet you don't dispute one single thing in my post. In what way am I wrong?
You must be the only person in the world that still thinks Iraq has a budget surplus.
If Iraq sold every bit of oil they have in the ground, about 200 billion barrels. If they could somehow sell it all at once, at say $80 a barrel. That would get them a one year GDP of $16 trillion. Then their GDP would plunge back to about $5- $10 billion a year after that.
The United States GDP is about $12 or $13 TRILLION every year.
Iraq also has the problem that they have 4 times more currency to support than does the US.
The reality is that Iraq’s GDP is currently at about $80 billion a year.
That is 160 times smaller than the US. That means they need a 16000% increase in GDP just to equal the US GDP, and since they have 4 times more currency, the really need about a 64000% increase to get the currency to 1:1. That would be a GDP of about $52 trillion.
LOLOLOLOL… the whole world GDP right now is about $70 trillion. Do you really think Iraq’s GDP is going to equal the rest of the world put together. LOLOLOLOLOL.
Can’t wait for “the Dinar will be let loose (free Float) with the GDP/GNP.”
I’m calling that $700 billion debt number BS… and anyone invested in dinar better hope I’m correct.
Iraq only had about $330 billion in total debt after the war from what I read, and a large part of that was forgiven. Right now Iraq is running a deficit, and asking the IMF for a $7 billion loan. How long do think it would take to pay back a $700 billion debt.
Can you dispute on thing I’ve posted????
I’ll leave it at that.
$700 Billion??? Something aint rght there. It would take them a hundred years to pay that off.
Global crisis delays removal of 3 zeros.
Views and ideas: the effects of the global financial crisis on the Central Bank of Iraq
Maithem Laibi Ismail
Civilized dialogue
Do you sacrifice the stability and the central bank raising the zeros?
Some believe that the financial crisis affected the Iraqi economy only through the reflection caused by the decline in oil prices in the successive reductions in the budget of 2009, and as Iraq's economy is dependent on the oil yield in the financing of expenditures, it is their view here that the repercussions of the crisis on the financial instruments of public only, and there are no implications for monetary instruments, and this team goes beyond that to argue that Iraq did not acquire the securities market with the advanced capitalist market economy has further adverse effects on total, which faced many of the economies.
Say that the financial crisis affected the world as a whole, the effects on the Iraqi economy are deeper than those effects, the question we ask here is: The financial crisis will affect and change the outlook for the monetary authority of the representative of the Central Bank of Iraq?
The answer to this research requires more than trying to changing the central control, to be one of the most important of these variables is the local currency and value, from here we will focus on two axes in this regard, the first relates to the system of the exchange rate applied, and the second is linked to the decision to be the three zeros done in the future.
Say; and fairness, that central to a large extent able to choose a proper drainage system, which was able to maintain the stability of the value of local currency against the dollar, through the use of daily currency auction, which the buyer down the Central Bank of the dinar in exchange for pumping dollars into the market, and improve Iraqi dinar gradually and continuously, thus a guarantor power of the Iraqi dinar and expelled him from the specter of fluctuations, which was facing the Iraqi dinar, which was prior to 2003 reflected the volatility of the economy as a whole, from here say that the CBE has been successful in the exchange rate policy, and for such period, the only remaining question challenge now is to what extent can the Bank to maintain and support the lifting of the value of the Iraqi currency against the dollar? Here, jump to mind the nature of the relationship between the global financial crisis and the Central Bank of Iraq, there is a strong link between the Central Bank and the global crisis and the resulting decline in oil prices, the goods financed by the President, the Central Bank of dollars, those dollars through the Bank managed the composition of foreign reserves which amounts to more than 21 billion dollars, which obviously worked in the promotion and strengthening of the Bank's stance in maintaining the value of the Iraqi currency, and in the same dollars that the bank manages the daily currency auction, we say here that the central bank and to the continuation of the fiscal crisis and the resulting survival oil prices in the low levels, it would be two possibilities, one is prejudice and sacrifice Bahtiatath which accumulated in foreign currency, warn of the danger of this is a red line which we consider unacceptable the crossing, the local currency will be open and without cover, the other possibility is to sacrifice to preserve and improve the stability of the dinar through the sacrifice of the Iraqi currency auction, and this is unacceptable to the other of Rjuana might bring to the situation of chaos in the exchange market, the Iraqis before 2003, both of which affect; outcome, a negative impact on the role of the Central Bank of Lesotho guest grants stability and performance in the national economy.
The task of the central bank is not easy, in a range of parameters such as the global financial crisis and management of the economy of oil in the state, ramping up to a free market economy and emerging from the womb of the worst political crises and internal security.
From here on, the central careful search for a way out of this crisis, and the selection of a stable exchange rate system more flexible and more responsive to the requirements phase, we are here not to go too far in a campaign central to the policy which we consider prudent over the past years; also to do so multilaterally Now, we squeeze by the central in the search for novel ways wise and long-term goal of combining economic stability, which is the inherent purpose and goals of the approach flexible exchange rate regimes and managed.
Another question that jumps to mind is: Is there any effects of the global crisis to review the project three zeros from the lifting of the Iraqi dinar, which the parties had begun to promote a number, such as the Central Bank of Iraq and the Ministry of Finance? . It seems that the answer to this question will not be easy, I say this because the implications of the crisis on the Iraqi economy is difficult to monitor the state of the final results of which, besides the impact of the crisis on the decline in oil prices has led to serious implications was the review of the general budget in terms of restructuring expenses and the reduction of such expenditures to more than once in the 2009 budget, it is difficult to predict the effects of such crisis on the Iraqi reality.
Is well known that it was a proposal from the Ministry of Finance to the Central Bank to lift the three zeros from Iraqi dinar, which has been approved by the Central Bank, where he spoke on the last long-term strategy aimed at improving the situation of the Iraqi currency, through the deletion of three zeroes, and the strengthening of systems of payments Consistent with the economic development in the country.
The question now is, "Will this project still exists and could come into effect under conditions of global crisis? That the answer is likely to be negative, the global situation is in a state of instability and financial crisis caused tremors among the key economic life of Iraq, while the decision to lift the zeros must be in a stable economic environment, and such a decision is not only already After experiencing the currency Thassanna and stable in value, both of which is not available in light of the crisis and its repercussions, the economic Valmngirat likely continue to be unstable for some time which may extend to the end of 2010, and as long as the lifting of zeros on the dinar, as the promoters Essentially, the idea, had nothing to do with inflation and it is just a psychological issue, we believe that any action by the Central Bank in this regard under the circumstances of global psychological shipped will not even achieve the desired objective.
So, it seems that the central and financial re-consider the matter, and before we ask, does the Iraqi economy has already arrived to the hyperinflation crisis enough to warrant the deletion of zeros? Say that the answer to that would have been negative as well, and our guide on this is simple and comes from the nature of the decision to lift the three zeroes itself, and I (three) zeros, this means that the value of the Iraqi dinar did not amount to a serious deterioration, did not pass the Iraqi economy varying from hyper-inflation, has also seen some of the States embarked on this experiment, such as Turkey, which was deleted (six) zeros from the Turkish lira to one million Turkish lira lira equal to one, but on the contrary, we find that inflation in the Iraqi economy has started to take a very moderate rates especially after the years 2005 and 2006 which saw the biggest waves of inflation.
http://translate.google.com/translate?hl=en&langpair=ar%7Cen&u=http://www.alitthad.com/paper.php%3Fname%3DNews%26file%3Darticle%26sid%3D53313&prev=/translate_s%3Fhl%3Den%26q%3Diraq%2Bdinar%2Bremove%2Bzeros%26sl%3Den%26tl%3Dar&rurl=translate.google.com
Iraq begging for 7 billion dollars.
http://translate.google.com/translate?hl=en&sl=ar&u=http://www.alsabaah.com/&ei=cN8NSuDRFKWCtgOZlOH7Ag&sa=X&oi=translate&resnum=1&ct=result&prev=/search%3Fq%3Dal%2Bsabah%2Bnewspaper%26hl%3Den%26client%3Dfirefox%26rls%3Dcom.yahoo:en-US:official%26hs%3Dv1P%26sa%3DG
Why would a country that supposedly is rich enough to RV almost 40 trillion dinar to a value of 1$ each... why would a country so rich have to beg for $7 billion? $7 billion would be pocket change for a country that can support a $40 trillion m oney supply.
If this happens, more DEVALUE pressure
Iraq cenbank tells govt not to spend FX reserves
http://asia.news.yahoo.com/rtrs/20090524/tbs-iraq-cenbank-reserves-955c2a1.html
Pressure to DEVALUE the dinar.
The street rate of the dinar has recovered a little. But it's still 1180.
If the dinar was truly due for a large increase as some would try to dupe you into believing, then the street rate would be much higher. The people of Iraq are smart enough to know there is no large RV in the waiting and currently they don't even have faith the CBI can maintain the 1170 rate.
http://translate.google.com/translate?js=n&prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Far.aswataliraq.info%2F%3Fp%3D146252+&sl=ar&tl=en&history_state0=
No mention of anything that would lead one to believe in a large RV.
No lop for now according to U.S. Treasury
http://www.sigir.mil/reports/quarterlyreports/Apr09/pdf/Report_-_April_2009.pdf
Macroeconomic Trends
As of April 2, 2009, the Iraqi dinar (ID) exchange
rate was 1,170 ID to one U.S. dollar (USD)—a
2.7% appreciation from April 2008, when the dinar
was valued at 1,203 ID per USD. In addition,
core inflation has stabilized to near 0%.447 Dinar
appreciation has strengthened purchasing power
in Iraq and contributed to declining inflation,
providing a more stable environment for privatesector
growth.448
In the past, Iraq had considered rebasing the
Iraqi dinar to bring its base value closer to that
of one USD. However, recent data indicates that
the venture would prove too costly to make
rebasing worthwhile, and the U.S. Treasury
reports that there are currently no specific plans
to rebase the dinar
Executive Order 13303
Executive Order Protecting the Development Fund for Iraq and Certain Other Property in Which Iraq Has An Interest
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act, as amended (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), section 5 of the United Nations Participation Act, as amended (22 U.S.C. 287c) (UNPA), and section 301 of title 3, United States Code,
I, GEORGE W. BUSH, President of the United States of America, find that the threat of attachment or other judicial process against the Development Fund for Iraq, Iraqi petroleum and petroleum products, and interests therein, and proceeds, obligations, or any financial instruments of any nature whatsoever arising from or related to the sale or marketing thereof, and interests therein, obstructs the orderly reconstruction of Iraq, the restoration and maintenance of peace and security in the country, and the development of political, administrative, and economic institutions in Iraq. This situation constitutes an unusual and extraordinary threat to the national security and foreign policy of the United States and I hereby declare a national emergency to deal with that threat.
I hereby order:
Section 1. Unless licensed or otherwise authorized pursuant to this order, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is prohibited, and shall be deemed null and void, with respect to the following:
(a) the Development Fund for Iraq, and
(b) all Iraqi petroleum and petroleum products, and interests therein, and proceeds, obligations, or any financial instruments of any nature whatsoever arising from or related to the sale or marketing thereof, and interests therein, in which any foreign country or a national thereof has any interest, that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of United States persons.
Sec. 2. (a) As of the effective date of this order, Executive Order 12722 of August 2, 1990, Executive Order 12724 of August 9, 1990, and Executive Order 13290 of March 20, 2003, shall not apply to the property and interests in property described in section 1 of this order.
(b) Nothing in this order is intended to affect the continued effectiveness of any rules, regulations, orders, licenses or other forms of administrative action issued, taken, or continued in effect heretofore or hereafter under Executive Orders 12722, 12724, or 13290, or under the authority of IEEPA or the UNPA, except as hereafter terminated, modified, or suspended by the issuing Federal agency and except as provided in section 2(a) of this order.
Sec. 3. For the purposes of this order:
(a) The term "person" means an individual or entity;
(b) The term "entity" means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;
(c) The term "United States person" means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any juris-diction within the United States (including foreign branches), or any person in the United States;
(d) The term "Iraqi petroleum and petroleum products" means any petroleum, petroleum products, or natural gas originating in Iraq, including any Iraqi-origin oil inventories, wherever located; and
(e) The term "Development Fund for Iraq" means the fund established on or about May 22, 2003, on the books of the Central Bank of Iraq, by the Administrator of the Coalition Provisional Authority responsible for the temporary governance of Iraq and all accounts held for the fund or for the Central Bank of Iraq in the name of the fund.
Sec. 4. (a) The Secretary of the Treasury, in consultation with the Secretary of State and the Secretary of Defense, is hereby authorized to take such actions, including the promulga-tion of rules and regulations, and to employ all powers granted to the President by IEEPA and the UNPA as may be necessary to carry out the purposes of this order. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government. All agencies of the United States Government are hereby directed to take all appropriate measures within their statutory authority to carry out the provisions of this order.
(b) Nothing contained in this order shall relieve a person from any requirement to obtain a license or other authorization in compliance with applicable laws and regulations.
Sec. 5. This order is not intended to, and does not, create any right, benefit, or privilege, substantive or procedural, enforceable at law or in equity by a party against the United States, its departments, agencies, entities, officers, employees, or agents, or any other person.
Sec. 6. This order shall be transmitted to the Congress and published in the Federal Register.
GEORGE W. BUSH
THE WHITE HOUSE,
May 22, 2003.
Why don't you read 13303 and see for yourself what it says instead of copying this crap of some dealers sight. It's a very short document.
From Wiki.
Executive Order 13303 was issued on May 22, 2003 by United States President George W. Bush to protect the Development Fund for Iraq for the rebuilding of Iraq from any legal attachments or liens. Further, it protects Iraqi oil products and interests and ownership by US persons (defined to include US corporations) from attachment as well. Executive Order 13303 also terminates sanctions specified in EO 12722, EO 12724, EO 13290, as it applies to the development fund. In effect, EO 13303 provides an extraordinarily broad legal shield for any and all contractors and mercenaries working in Iraq on behalf of US corporations in any oil related enterprise.
Executive Order 13303
http://georgewbush-whitehouse.archives.gov/news/releases/2003/05/print/20030522-15.html
or
http://www.reclaimdemocracy.org/articles_2003/executive_order_13303.html
Seems they have to make a request via e-mail.
Street value of dinar falling. Warka kills electronic transfers.
Yes... the value of the dinar is falling in Iraq, due to a couple things. So what does Warka bank do? According to some Warka customers posting on another board, Warka has taken away your ability to easily get out of dinar. Welcome to investing in IRAQ.
Street rate of Dinar weakening.
Iraqi Central Bank denied its intention to change the mechanism adopted in the sale of the U.S. dollar for the banks to cover the needs of the Iraqi private sector.
A source at the bank, told a news briefing that the current price of the dollar amount (1170) dinars, he noted that the bank during the past two days, an increase in the exchange rate of the dollar in the domestic market.
The source pointed out that the Central Bank now covers the private sector imports, without any limitations, at the price declared by the Central Bank, through Iraqi banks.
The local market over the past two days have seen an increase in the price of the dollar, as the price of exchange (1200) dinars to the dollar.
http://translate.google.com/translate?hl=en&sl=ar&tl=en&u=http://radionawa.com/(X(1)A(uiqD5MUFygEkAAAANTA0NTMwN2QtYzBmMS00MTBjLWEzNmYtYzY1Njk1MzdkYjZmAyLYNLYQy7w7iCr1Si2oE9xwt4E1))/Ar/NewsDetailN.aspx%3Fid%3D42855%26LinkID%3D105