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Passed by Cabinet... not passed by parliament.
Kurds to 'block' Iraq oil law.
http://www.iraqupdates.com/p_articles.php/article/16914
Good news. Iraq IS reducing money supply.
http://www.cbiraq.org/key%20financial.xls
Line 66, M2... They have revised the Jan. numbers. It was about 21.4 Trillion, they have revised it to 18.3 trillion and have added the Feb numbers… now 18.8 trillion.
Line 60 is currency outside of banks, or currency in circulation as people like to say. That number is still steady and still growing slightly. Dec-10.9T, Jan-11.2T, Feb 11.4T
Line 67- component deposits of M2... That number was revised downward by 3 Trillion. It went from 10T down to 7T.
That is a huge amount.
What could it be from… I read that last year, Iraqs budget, they had money left over because they couldn’t spend it. They had wanted to spend the money, but because of issues, probably security, they weren’t able to spend the money. I’m wondering if this could be the same thing. Iraq could have earmarked this 3 trillion to be spent on budgetary items and for whatever reason they were not able to spend the money, so it had to be removed from the books so to speak. Pure speculation on my part.
Or… OR as lot’s of people hope… maybe they are burning it. Figuratively of course… remember the bank deposit number in the number that went down. Also pure speculation. We shall see.
Can you elaborate on what resources Iraq is giving away for sub-pennies? Sounds like something I might want to invest in.
Do you not believe that the dinar is still a good gamble? Considering a small wager COULD pay off hugely.
Sorry. I once thought that. I bought into the dinar hoping for a penny to a nickle. My wildest dreams were that it would revalue to about 30 cents. It was once the dealers started the 1:1 and higher rumors that I called BS… and then really started to dig for information myself. Every bit of information I found was not good.
Do you think that a reval has to happen in order for the company (Iraq) to play on the level playing surface that is the World stage? How will Iraq trade globally in stocks and oil without having a serious currency?
Not sure why people claim it not a serious currency. There was a country that for years and years had an exchange rate of 1500:1. That country had one of the largest economies/GDPs in the world. They did not suffer any of the pitfalls expected for Iraq. Their country and companies were not bought out for pennies. That country… Italy… the currency… the Lira. Was that not a serious currency?
How do you see an alternative to the reval?
I don’t see it appreciating to anything better than 1000:1.
INOP…. The only way there will be a substantial revalue is if they lop also.
There are many examples of countries removing inflation generated zeros from their currency by lopping. Iraqs zeros are inflation generated.
There are only about 11 currencies in the world that have a an exchange rate of 1:1 or better. Throw out the Euro (no way comparable to the Dinar) and the Great Britain Pound (I couldn’t find figures for it) Bermuda and Bahamas (they use the dollar) and that leaves the likes of Jordan, Kuwait, Latvia, Malta, Oman and Bahrain. Every one of those currencies has a money supply in the 10 to 30 billion range. Iraq has over 20 Trillion. In other words 1000 times more currency than those countries. That explains why they have an exchange rate 1000 times higher and also shows how they can raise their exchange rate to that of the other countries… reduce their money supply by 1000 times.
Why is an r/v not credible in this case when other precedents have been set in the past?
Wish you would have named those precedents, beause there really are none.
Germany maybe?? The Marshall plan… that was a zero lop.
Kuwait… I posted this about Kuwait awhile back.
Kuwait was invaded Aug 2nd 1990, they were liberated on Feb 27th 1991,
That’s 7 months. One month later on March 24th, they rolled out a new currency at the new rate.
So 8 month from the start of the invasion to the currency back to it's old rate.
From wiki: After the liberation, a fourth series was issued on 24 March 1991 with the aims of replacing the previous withdrawn series as quickly as possible and guaranteeing the country's swift economic recovery. This fourth series was legal tender until 16 February 1995. Denominations were ¼, ½, 1, 5, 10 and 20 dinar.
The Kuwait Central Bank only reports back to 1994… but at that time, in 1994, Kuwait had a whopping total of 371 million… not trillion, not even billion… dinars in circulation.
Also from the Central Bank website… Exchange rates.
Average Exchange Rate of Kuwait Dinar Against U.S. Dollar (Fils)
Period Exchange Rate
1986 290.53
1987 278.86
1988 278.94
1989 293.74
1990 291.24
1991 289.19
1992 293.30
1993 301.32
1994 297.62
1995 298.46
1996 299.42
1997 303.36
1998 304.79
1999 304.38
2000 306.79
2001 306.54
2002 303.97
2003 298.046
2004 294.07
2005 292.00
As you can see… that 10 cent exchange rate people like to quote… it wasn’t even a blip on the screen.
In fact… I’ve never seen where the exchange rate officially changed. (Other than dinar dealer claims) The only thing that happened was the people lost confidence in it, panicked, and sold it off at a street value something less than the official value. Unless you were walking around on the streets of Kuwait with money willing to buy peoples dinars, you didn’t make out.
Comparing Iraqs situation… Currency has been out for 3 full years, 10 trillion in circulation, another 10 trillion in banks that has to be supported…. It replaced a currency that Saddam had destroyed by increasing the supply from 20 billion to over 4 trillion.... Comparing that to Kuwaits situation… 7 month conflict, loss of confidence in currency, street selloff, less than 400 million dinars…. Well… there is no comparison.
I was also interested in your opinion on dinars bought by the CBI but am not sure I understand it?
They buy back dinar to fund their budget. To pay for government salaries, for gov programs. They either have to buy it back or print more. Be glad that they are buying it back.
So you would prefer blatant lies go unchallenged?
Why do you not question the people who spend all day on Dinar forums pumping obvious lies?
I always find responses like yours interesting. You and many others never dispute the facts. You just want to attack my existence. What is the purpose of your post? It has absolutely nothing to do with the facts about the dinar. Why I’m here doesn’t change the info that I post. Accusations and speculation about my personality has ZERO impact on the validity of the links and the information contained in those links.
Anyway…. Here‘s my answer… I was heavily invested in the dinar. Just like most who invested, I bought into the “it’s gonna happen any day now” pump. So I sat on a big pile of dinar while I spent a lot of time doing real DD on the dinar and many other comparable currencies. Reading the latest from dealer sites and forum pumpers is not DD.
So even if I’m not still heavily invested in the dinar, after spending so much time and effort to understand it, I am still very interested in the subject and to see how it all plays out. It’s really that simple and it really doesn’t take that much time.
I bet those pumpers won’t give you an honest answer.
Iraq oil law no closer to completion
http://www.iraqupdates.com/p_articles.php/article/16787
BAGHDAD, 25 April 2007 (UPI)
Iraq's oil minister said a draft law governing its oil would head to Parliament this week, but major roadblocks still need to be overcome.
Iraqi officials in oil meet
http://www.ameinfo.com/117874.html
Kurdish officials last week called some annexes to the draft law 'unconstitutional'.
Apparently Neno, Secret Key and Shotgunsusie know something that UPI and Reuters don't.
The same people that publish the auction amounts also publish the answer to your question.
The CBI.
http://www.cbiraq.org/key%20financial.xls
Line 65...
Look at the latest monthly figure. .. Jan, 21.479 Trillion
They should be publishing Feb numbers any day now. They are always 2 months behind on the monthly figures.
They report weekly figures out to the right, but the weekly figures do not contain all components, so they are always lower than the monthly figures, I’ve been watching this chart for 2 years and the numbers always grow when moved to the monthly columns.
This PROVES that dinar bought back at auction is put back into circulation.
It’s simple, the government spends money, a lot of it has to spent as dinar. Almost all of Iraq’s revenues are in dollars from oil sales. They have to convert those dollars into dinars to fund the countries budget. They do that through the auctions.
Iraq has a money supply of over 21 trillion and growing.
Any thinking person knows that is a huge barrier to any significant revalue.
So many refuse to think about it. It ruins the dream.
These figures are the Saddam dictated rates to the IMF. They were nothing more than show.
http://www.usip.org/library/oh/sops/iraq/sec/tant.pdf
But, in the great majority of the country, they had the Saddam dinar with Saddam's face
on it. There were basically only two denominations of that: there was a 10,000-dinar
note, which was worth about $5, and there was a 250-dinar note, which was worth about
12.5 cents, 12 cents. The reason its value had dropped so low was because of Saddam’s
inflationary monetary policy. In comparison, back in the '80s, before the Saddam dinar
came about, the rate of exchange was about $3 to one dinar. But because of Saddam
there was now a total upside-down situation where one dollar was worth about 2,300
dinar.
They were only using 250 and 10,000 dinar notes. Does anyone really think they had an exchange rate of 3 dollars per dinar. So Iraqis walked around with bills worth $750 and $30,000 in their pocket… and nothing smaller.
So in the LATEST big rumor… has Iraq supposedly filed a new or revised letter of intent?
Letter of Intent.
http://www.imf.org/external/np/exr/facts/howlend.htm
The process of IMF lending
An IMF loan is usually provided under an "arrangement," which stipulates the specific policies and measures a country has agreed to implement to resolve its balance of payments problem. The economic program underlying an arrangement is formulated by the country in consultation with the IMF, and is presented to the Fund's Executive Board in a "Letter of Intent." Once an arrangement is approved by the Board, the loan is released in phased installments as the program is carried out.
From Iraq’s Letter of Intent.
http://www.imf.org/External/NP/LOI/2007/irq/022307.pdf
The following item is a Letter of Intent of the government of Iraq, which
describes the policies that Iraq intends to implement in the context of its request
for financial support from the IMF. The document, which is the property of Iraq,
is being made available on the IMF website by agreement with the member as a
service to users of the IMF website.
(A letter of intent is part of the process for requesting a loan from the IMF. Within the letter of intent they are required to state what their economical plans are.)
Also from Iraqs letter of Intent…
5. We have tightened our exchange rate and monetary policies to fight inflation. The exchange rate of the Iraqi dinar was pegged to the U.S. dollar through most of the year at a rate close to ID 1,477 per U.S. dollar. From mid-November this policy has been adjusted to permit a gradual appreciation of the dinar; the daily auction-rate declined to ID 1,325 per U.S. dollar at end-December and reached ID 1,290 per U.S. dollar by end-January. Net international reserves continued to grow and reached a level of $15.3 billion at end- November 2006. The CBI also raised its policy interest rate to 16 percent on November 12, 2006, and further to 20 percent as of January 7, 2007.
11. To help curb inflation the CBI will continue its tight monetary policy stance and
allow the exchange rate to appreciate gradually, assuming the inflationary situation warrants a continuation of this policy. The CBI also stands ready to further increase its policy interest rate, if needed and effective to bring inflation down.
It's all about the Oil
Iraq targets 3 mln bpd 2007 oil production-oilmin
SEOUL, April 12 (Reuters) - Iraq is targeting oil production of more than 3 million barrels per day in 2007, its oil minister said on Thursday.
"Iraq wishes to exceed producing 3 million barrels a day in 2007 -- this is achievable by repairing the northern pipeline that connects to the Mediterranean," Hussain al-Shahristani told Reuters on the sidelines of a meeting with South Korean energy officials.
Baghdad is struggling in the face of sabotage and outdated infrastructure to produce 2 million bpd, down from nearly 3 million bpd before the U.S.-led invasion in 2003.
Hmmmmmmm..... got any idea how much oil the United States produces per day?
http://www.indexmundi.com/united_states/oil_production.html
7.6 miilion barrels a day.
So Iraq HOPES to get to almost half of the US oil production sometime this year.
Iraq has 3 times more money supply than the US.
US GDP = 13 triilion, Iraq GDP 50 billion. That's 260 times more.
Currently 1/3 the Oil production
260 times less GDP.
3 times more currency.
1:1??????? More?????????
RJ…I appreciate you letting me post here….
I try to just stick to the facts and avoid personal comments… but those last posts of Mary’s are a bit hard to ignore. I… like tmcc will not even engage in the conspiracy theory stuff. But I have to say, for someone to post this. “it is your patriotic duty to buy these dinars. it is your patriotic duty to buy vnd also.” as Mary did. That’s ludicrous.
Remember this… Buying up a foreign currency for speculative purposes is not the same as investing in a country.
Are you Shotgunsuzie?
She posted this this statement almost word for word before.
"don't bother asking me where i get all this info. i read 80 hours a week all over, everywhere i can on everything about iraq"
Amazing that people go through such mental gymnastics to try to come up with a figure that the CBI is tracking and reports to the IMF.
http://www.cbiraq.org/key%20financial.xls
Line 66... As of Jan 07... 21.479 Trillion.
That takes into account everything. Government expenditures, buying and selling at auctions, everything. The number does not include the missing denominations, they have yet to be introduced, so they are not part of this figure. The CBI could have 100 trillion dinar sitting in vaults for future use… it is not figured in the M2 amount.
It’s obvious that people seem to understand that 21.5 Trillion dinar is a huge figure and an obvious obstacle standing in the way of a substantial increase… so they are determined to try to disprove or discredit a number compiled and reported by the Central Bank of Iraq and submitted to and accepted by the IMF. Read the IMF reports. They speak of transparency over and over.
2007 Letter of Intent to IMF.
http://www.imf.org/External/NP/LOI/2007/irq/022307.pdf
5. We have tightened our exchange rate and monetary policies to fight inflation. The exchange rate of the Iraqi dinar was pegged to the U.S. dollar through most of the year at a rate close to ID 1,477 per U.S. dollar. From mid-November this policy has been adjusted to permit a gradual appreciation of the dinar; the daily auction-rate declined to ID 1,325 per U.S. dollar at end-December and reached ID 1,290 per U.S. dollar by end-January. Net international reserves continued to grow and reached a level of $15.3 billion at end- November 2006. The CBI also raised its policy interest rate to 16 percent on November 12, 2006, and further to 20 percent as of January 7, 2007.
11. To help curb inflation the CBI will continue its tight monetary policy stance and
allow the exchange rate to appreciate gradually, assuming the inflationary situation warrants a continuation of this policy. The CBI also stands ready to further increase its policy interest rate, if needed and effective to bring inflation down.
20. Due to delays in completing the 2005 CBI audit, the GoI was not able to recapitalize the central bank to the stipulated ID 100 billion (structural benchmark for end-December 2006). We are committed to doing so in 2007 and the MoF has already sent a letter to the CBI reflecting our commitment.
I really want to know what that “recapitalize the central bank to the stipulated ID 100 billion” means.
Last time… just like this time… you simply proclaimed it to be true.
Your response to me then when I asked for a link was…..
“got to start somewhere. go to the rolclub and do some dd. you will find it. roll up your sleeves and put in your home work like i did. i don't need to prove jack to you. i have some 63 plus million dinar and another 10m coming and i am satisfied a marshall plan is in the works ,but the reval may not come the most think that it will. go call ali and dinartrade and ask him about your real concerns. he is holding 1billion nid for himself for reval.”
You do know the Marshall plan was a zero lop don’t you?
On the billions at the fed… my guess is it came from this article… or one like it because I’ve seen the same thing a few times myself. They all say the same thing.
http://www.nytimes.com/2007/02/27/opinion/27taylor.html?ex=1330232400&en=c099c6b1423f5666&ei...
“But that wasn’t the only source of dollars. Because the new Iraqi dinar was so popular, the central bank bought billions of United States dollars to keep it from appreciating too much. As a result, billions in cash accumulated in the vaults of the central bank. Later, with American help, the Iraqi central bank deposited these billions at the New York Federal Reserve Bank, where they could earn interest.”
This and no other article states that the Fed has one single dinar. It says that Iraq purchased dollars/ sold dinars (remember the daily auctions) to the tune of $5 billion and the dollars were deposited in the fed bank. Now then, since it does not state where the dollars came from, we can’t be sure, but I provided an article earlier that implicitly stated that the US Government did not sell them dollars. The acticle talks about the popularity of the dinar, and I’ve shown many articles that talk about buying frenzies all over the world. So it is my opinion that the dollars were raised from the currency auctions selling them to banks that received request for dinars from dealers who took them out and sold them to the world.
lol... Obviously you don't have the proof of the fed holding dinar. Because there is none.
I can see how that would irritate you.
This is where Iraq got the $5 billion.
I would love to see the proof you have that the US fed reserve is holding dinars.
All the article says is that Iraq purchased $5 billion (which is the same as saying Iraq sold $5 billion worth of dinar) and that the money was put in the NY fed reserves bank.
There are many more articles out there about buying frenzies all over the world. Here’s just a few I found within minutes.
http://www.atimes.com/atimes/Middle_East/FF17Ak01.html
"Many people sold anything they could to buy Iraqi dinars," Mohammed al-Abyad, chairman of the Egyptian Foreign Exchange Association told IPS. "
“Many foreigners in Iraq are also buying up dinars in the hope that it will recover strongly.”
http://www.latimes.com/business/la-fi-dinar11dec11,0,771392.story?coll=la-headlines-business&tra...
Alhajji says he watched teenagers in Jordan and Saudi Arabia respond to the e-mail, buying up the currency.
"They seriously think they can gain money by buying Iraqi dinars. This has become like a fever over there,"
“At Dinar Trade in Brentwood, Tenn. (formerly Bakersfield), sales dropped off during the last few months but picked up again in the last two weeks as many of its 54,000 customers took a renewed interest in the dinar, an employee said.”
http://www.irinnews.org/report.aspx?reportid=22824
“small-time Pakistani investors and even ordinary people are flocking to currency dealers to buy the new Iraqi dinar”
“ reports of large-scale smuggling to several Gulf states as well as to South Asia”
http://www.newsline.com.pk/NewsFeb2004/economy2feb2004.htm
“The daily trading volume of Iraqi currency is still enormous as compared to other currencies.”
http://www.iraqidinars.org/158/iraqi-dinar-purchases-approved-by-israel/
“Despite Trading with the Enemy Act prohibiting trade in enemy currency, finance minister approves trade in Iraqi dinar for another year.”
I would love to see Ali’s response to this. I would love to get his estimate on the number of dinars sold.
Here’s your answer… supplied not by me… but from the Central Bank of Iraq.
http://www.cbiraq.org/Binder4.pdf
Look at table 2. Iraq had a money supply 24.6 billion in 1991.
Scroll down to table Ten and you’ll see what the true exchange rates were during that time when you know who was running things.
Saddam told the CBI to list the exchange rate at a certain amount. Because they supplied no economic information to the IMF to substantiate the Exchange rate… it went untested… no one did business with Iraq at those Saddam dictated exchange rates. They were for show only.
This is how the CBI describes the document.
The Department of Research and Statistics was always the one to publish statistical information about various Iraqi economic activities. This put key information into the hands of researchers and economists for analysis and economic studies, to say nothing of the importance of formulating national monetary and fiscal policy, with benefit of the quarterly bulletins and the annual reports which the Central Bank of Iraq issued. However, the negative conditions that the country experienced and the harsh constraints on publishing any information that were imposed by the previous regime caused the Central Bank to halt publishing any information, thereby reducing its statistical and research activitie At present, with the end of those circumstances and with the desire of the Central Bank to have full transparency in publication, the environment has become conducive to the Central Bank’s conducting research and publishing relevant information in a timely manner.On this occasion, the Department of Research and Statistics is pleased to publish this Special Issue of the Statistical Bulletin of the Central Bank of Iraq, to provide information available for the period of 1991 through June 2003. This is the starting point for regular publication of the Quarterly Bulletin and the Annual Report of the economy of the new Iraq.
It's not me... the IMF says that oil in the ground is not a suitable currency reserve. Take it up with them.
And once again you are misinforming people.
Yes Iraq bought $5 billion, and yes they deposited them at the Fed in N.Y.
But the did not buy them from the US government and the US government did not receive any dinar.
It’s a myth that has been spread over and over on the dinar boards.
http://www.iraqdevelopmentprogram.org/idp/news/new680.htm
“He said the dollars had been accumulated by the Iraqis since the creation of the new Iraqi dinar and not sold to them by Washington”
The IMF says this about currency reserves.
9. To ensure that reserves are available at the times when they are needed most, liquidity-which is the ability to convert quickly reserve assets into foreign exchange-usually receives the highest priority, albeit with a cost that usually involves accepting lower yielding investment instruments. Closely following is the need for the management and control of risks to ensure that asset values are protected. Market and credit risks, for instance, can lead to sudden losses and impair liquidity. Finally, earnings are an important outcome of the management of reserve assets. For some countries, they play a role in offsetting the costs associated with other central bank policies and domestic monetary operations, which among other things fund the acquisition of reserves. In other cases, such as where reserves are borrowed in foreign markets, earnings play an important role in minimizing the carrying costs of reserve assets. Accordingly, achieving an acceptable level of earnings should be a priority within clearly defined liquidity and risk constraints.
http://www.imf.org/external/np/mae/ferm/eng/index.htm
I'm not maiking up the rules here... but oil in the ground is a VERY VERY un-liquid asset.
At 2 million barrels a day, it will take Iraq 157 years to get that 115 billion proven reserves. That’s not liquid. Even if they double output to 4 million a day, that’s still 78 years.
Also… as I said before. Iraq can only apply budget surplus to foreign currency reserves.
http://www.imf.org/external/np/pdr/debtres/index.htm
More good info.
Saddam plundered all of Iraq foreign currency reserves. That coupled with fact that he increased the money supply from about 20 billion to 4.5 trillion is why the exchange rate went to poop. Once the NID was established, Iraq started selling it, the money they got for it was put into foreign currency reserves. They also had money that had been frozen in other countries returned and that was added to foreign currency reserves.
They might have taken some oil profits and added to it also. But it’s now about $19 billion. As that amount has grown, that’s what has allowed them to increase their exchange rate. They have announced that they have tightened the money supply, meaning they are probably done dumping large amounts of dinar on the market. The only way they can add to their reserves now is if they have budget surplus. That could happen with the way oil prices are. But adding a couple billion here or there will not make a huge difference in the reserves to money supply ratio. The whopper in that ratio is the other side… the 21 trillion money supply.
Plain and simple.
Any and all pegged currencies require foreign currency reserves to back them up.
Foreign currency reserves, as defined by the IMF, are liquid assets. While oil is liquid… oil in the ground is absolutely not a liquid asset.
Emerging markets with a pegged currency require very large amounts of foreign currency reserves.
Iraq is an emerging market with a pegged currency.
Iraqs currency has been on the market for 3 full years now. They have a money supply of about 21 trillion dinars, they have currency reserves of about 19 billion dollars.
19 billion divided by 21 trillion equals .0009 or 1105. I guess it’s just a coincidence that’s about what their exchange rate is.
It’s only a coincidence is you ignore the fact that Iraq has told the IMF that they are FULLY supporting the dinar with reserves and they have told the IMF that they plan to continue FULLY support the dinar with reserves in the future.
In the far of future… when/if Iraq gets their act together… then maybe they could be like Saudi Arabia.
Saudi Arabia… which, compared to Iraq, has a rock solid economy and currency. Saudi Arabia is on the very low end of currency reserves for middle eastern countries. Most are at or near 100%. SA is only at 25%. So even if Iraq was as stable, they are nowhere near, as SA… maybe they could only back 25%. That would mean they could support an exchange rate of .0036 or 276
But… and this is humongous colossal ginormous BUT… Iraq has another problem that SA does not. Iraq for 3 years has been selling dinars. Selling dinars to dealers and speculators. Three solid years of hundres and hundreds of internet dinar dealers selling dinar. Just did a search on yahoo for “buy dinar”… 22,500 hits. The dinar is massively over speculated. That is a huge problem that Iraq has to deal with.
Is there any proof that there was a meeting on Sat about the exchange rate? I keep seeing this stated as if it was a fact.
Not trying to start an argument here... just wondering if I missed something.
Nowhere was it stated that the CBI would be closed till Thursday. It’s a made up statement by the usual crowd, some like to call it rumor. The only thing ever stated was that the exchange rate was fixed until Thursday. As you can see, they’ve still been holding auctions. They are not closed.
Well... if I am right... Dannny and his buddies must be pretty disappointed. Check out the volume on SBRV lately. Zero, nada, zip. The dinaraholics are not falling for it.
This is perfect… lol
When a dinar dealer creates a rumor it always about a revalue that will happen in about 2 to 4 weeks. That gives the buyers plenty of time to order more.
Now Daniel Duffy (known lying con man) has hit on something new here. His rumors are of a revalue that will happen within a day or two. Wonder why??? Maybe because a buyer wouldn’t have time to buy more dinar.. But they surely have time to buy stock in his company.
For Iraq and any fixed exchange rate country there are 2 parts to the exchange rate equation. One is money supply (m2), the other is Foreign Currency Reserves.
Iraq had practically zero in foreign currency reserves because Saddam had taken it all. The NID started at 4000:1 because of that lack of reserves. So even as Iraq increased money supply they were able to improve the exchange rate because they were increasing foreign currency reserves at a faster pace... ratio wise of course.
The perfect example is what’s going on in Kuwait and other middle eastern countries. We’ve seen the articles lately about pressure to raise the exchange rates in those countries. That pressure is not because they are reducing money supply, it’s because they have been increasing foreign currency reserves for the last couple years because of higher oil prices.
LOL… amazing. You accuse me of being a liar.
Daniel Duffy is a known con man and scam artist. He put blatant lies in his press release about the dinar and he’s practically illiterate… but Daniel Duffy gets up every morning and thanks his lucky stars for people like you.
He stated this in a press release…
“Iraq news sources, state that a revalue of the Iraq currency is in the near future”
If that’s true he should be able to provide at least one link to one of those news sources.
BULLSHIT!
Kuwait has a money supply of 10 Billion.
Iraq has a money supply of 21 Trillion.
Iraq has 2100 times more currency to support.
If you spent a little more time doing real DD instead of trying to come up with cute personal attacks maybe you wouldn’t appear quite so ignorant.
They are buying back dinar to run the country. They have a 2007 budget of 50 trillion dinars. A large part of their government expenditures are in dinars. Almost all of their revenues are in dollars from oil sales. So they sell dollars… buy back dinars… so they can run the country. There is no proof at all that they are retiring any. Look at the numbers, if they were retiring them the money supply number would be going down… it’s not.
What you and many other seem not to be able to grasp is that exchange rate has absolutely nothing to do with how wealthy the people are.
A long time ago I dug into and found out that the even back in the old glory days of supposed 1:3 exchange rates, the average Iraqi made the equivalent of about $1000 a year. That means they only made about 300 dinars a year. Now they still only make about $1000 a year, but now they get 1,280,000 dinars a year. It’s the same…. Nothing has changed. This notion that Iraqis used to make a lot of money and now don’t because of the exchange rate is a fallacy.
The people of Iraq will benefit when the Economy grows and incomes rise. Incomes will not magically rise if they increase the exchange rate to 1:1. They would still make the same amount… $1000.. Now it would be 1000 dinars. No change.
Please take a second and look at Italy. Before Italy joined the European Union they had an exchange rate of 1500:1. Italy not only survived, they thrived with an exchange rate of 1500:1. They had the 5th largest GDP/economy in the world with a 1500:1 exchange rate. How about these names… Ferrari, Maserati, Alfa Romeo, Lamborghini, Ducati, Armani, Dolce, Gucci, Prada, Versace… they all came from a 1500:1 exchange rate.
From the CBI website
go to table 2, it shows amoney supply of 24.670 billion in 1991. While your there… scroll down to Table 10. That will dispel a few dealer myths also.
http://www.cbiraq.org/Binder4.pdf
Now for current numbers scroll down to Money Supply... look at the latest monthly figure. It's around 21 Trillion. The weekly numbers to the right do not contain all components, thats why they are a little less.
http://www.cbiraq.org/key%20financial.xls
Straight from the Central Bank of Iraq. Looks like about a 1000 times increase to me. Maybe you can provide some links to back up your claim that I’m a liar.
How much did you pay for your dinar?
Most paid between $800 to $1000 per million or more. So that leaves most still in the hole.
I notice you didn’t dispute what I posted.
It’s not dissention…. It’s fact.
Iraq's 'gold' mostly copper
By Reuters, 8/2/2003
WASHINGTON -- Gold-colored bars seized by US forces in Iraq appear to be melted-down shell casings made mostly of copper, rather than gold, the White House said in a report obtained yesterday.
The US military announced the discovery of truckloads of the gold-colored bars in May.
One haul was estimated to be worth as much as $500 million. Another was estimated at $100 million, though the driver said the bars were actually copper.
In a report to Congress detailing US reconstruction efforts, the White House budget office said 1,100 gold-colored bars were recovered in Iraq and that samples were taken to Kuwait for testing.
The report said the bars were 64 percent copper and 34 percent zinc.
This story ran on page A12 of the Boston Globe on 8/2/2003.
Classic pumper board here. Delete the truth when it doesn’t fit your spin.
6. 7,336,486,246,000 dinars pulled from circulation !!
7. "0" Dinars back into circulation today
This is very misleading.
There is no proof that the 7,336,486,246,000 dinars pulled from circulation through the auctions have remained out of circulation. In fact… the truth is quite the opposite. The CBI web site shows that the money supply has increased, not decreased. That is a pretty hard cold fact that dinars pulled in the auctions are being circulated right back into circulation.
To say that “"0" Dinars back into circulation today” is also misleading. While it may be a true statement that 0 dinars were put into circulation today through the auctions. It’s pretty obvious that all government spending did not cease for the day. Government wages and spending introduce those auction bought dinars right back into circulation.
Basically… Iraq applies to the IMF for a funding/loan arrangement. They are required to present a very detailed look at their economic situation and what their plans are in the future.
From the IMF web site
Stand-By Arrangements (SBA). The SBA is designed to help countries address short-term balance of payments problems. Stand-bys have provided the greatest amount of IMF resources. The length of a SBA is typically 12-24 months, and repayment is normally expected within 2¼-4 years. Surcharges apply to high access levels.
Iraq or any country can request an arrangement with the IMF… it is done with a “Letter of Intent”.
“The following item is a Letter of Intent of the government of Iraq, which describes the policies that Iraq intends to implement in the context of its request for financial support from the IMF. The document, which is the property of Iraq, is being made available on the IMF website by agreement with the member as a service to users of the IMF website.”
2004 letter
http://www.imf.org/External/NP/LOI/2004/irq/01/index.htm
End of 2005 letter to IMF. There is a ton of info here.
http://www.imf.org/external/pubs/ft/scr/2006/cr0615.pdf
“Monetary policy will continue to be based on the framework of a de facto
exchange rate peg. The exchange rate peg has proved a valuable anchor of stability for Iraq.
Although inflation has been volatile (mainly reflecting periodic supply shortages), it has been
on a downward trend. Apart from temporary pressures in the spring and early summer of
2005, moreover, the peg has not been seriously tested, and the CBI has been able to maintain
it while still accumulating international reserves. In part, this is because of the prohibition on
net lending to the government, which ensures that the money supply can only increase
through increases in international reserves. The program includes a ceiling (performance
criterion) in 2006 of zero new claims by the CBI on either the government or private sector.15.”
Note this line…. ensures that the money supply can only increase
through increases in international reserves."
Revaluing the dinar to 1:1 would be the same as increasing the money supply 1277 times.
So unless they can increase international reserves 1277 times… well… they say it wont happen.
Mid 2006 report.
http://www.imf.org/external/pubs/ft/scr/2006/cr06301.pdf
There is nothing in any of these 3 reports that talks about an “artificial rate” It was something that sounded good, so people ran with.
So you don't even understand your own post…
Well… I guess this helps explain how crap like this gets spread around the internet.