nicklichter

The suggestion that the U.S. has ANY Dinar is rumor, nothing more. Do you have proof that the U.S. or any other nations owns Dinar?

The UN is not in the business of telling private banking institutions to "get their site up instantly." There are many reasons why a website could be down. One thing is for sure, the Central Bank of Iraq's website does not have to be offline on order for the Dinar to be revalued.

You totally missed my point. I was suggesting that this site's administrator/owner could be masquerading (as you) and pumping this investment because he is receiving kick-backs from Dinar dealers. It's not really that far fetched.

Every time I read a post like this I cannot keep myself from wondering if this (and every other) site's owner is masquerading and motivated by kick backs from Dinar dealers. I own a website myself and use the masquerading tool to post real workplace stories as a way to protect my employer and my job.

I move to ban Okie from the site. Can I get a second?

I apologize if this article has already been posted. But in it, Shabibi speaks candidly about the CBI's role with respect to the currency. Sinan Shabibi, CBI Bank Governor ~ Article of Interest Nov. '08' Al-Shibibi says this matter should not be exaggerated, noting that the Iraqi Government, not the Central Bank, has an agreement with the IMF, and the Central Bank implements the government’s monetary policies. He adds that the IMF sets terms in every agreement it signs with every country, and “while negotiating with the IMF, we try to make these terms as easy as possible. At the same time, we try to impose certain matters on the IMF,” explaining that these negotiations aim at reducing 80 per cent of Iraqi debts. He adds that when Iraqi debts are reduced by this percentage, the budget costs will decrease and the speculations concerning its implementation become more certain. He says: “The 80 per cent reduction in debts, which we were able to obtain from the Paris Club, is the highest percentage ever given to a middle-income country in the entire world.” Asked to explain in return for what, he says in return for policies that Iraq should implement. Rahim also notes that the IMF asked the government to raise the price of oil derivatives and to postpone payment of the difference in salaries that was due following the recent salary increase, and he asks Al-Shibibi to explain the Central Bank’s position on this. Al-Shibibi says “the IMF policies were in line with the objective to curb inflation,” explaining that their outcome was for the benefit of Iraq, particularly in strengthening the purchasing power of the Iraqi dinar, which should remain under control at all times. He adds that “the Central Bank’s general monetary policy is not a long-range policy; rather, it is revised every six or three months in order to monitor where things are heading.” Rahim says that what is happening in Iraq today is that local banks are collecting Iraqi dinars from the market and depositing them with the Central Bank in return for a certain interest; thus, making profits at the Central Bank’s expense, while they should be lending money to companies and individuals to invest in various sectors. Al-Shibibi confirms that this is the case, explaining that the Central Bank’s main objective is to maintain the stability of the currency. Asked whether the studies on inflation prepared by the Central Bank conform to the studies prepared by the Iraqi Central Apparatus for Exemption, because some believe that there is a disparity between the two, Al-Shibibi says: “The brothers in this apparatus and the Planning Ministry provide us with data on inflation; we then make our calculations to find out the rate of the core inflation on which we build our monetary policies, which aim at maintaining monitory stability,” adding: “We take this data, but we design the policy.” He explains that while preparing these studies, the Central Bank takes into consideration the outcome of the budget’s expenditures in terms of the production attained from such expenditures. Asked to explain whether recent salary increases approved for civil servants have caused an increase in the cost of living or inflation, Al-Shibibi says inflation should be treated by further spending from the budget,” explaining that “inflation is actually a real fact, rather than a monetary issue,” which means that it is caused by certain sectors that fall under the authority of the Planning and Finance Ministries. He adds that the Central Bank can only interfere when production results from budget expenditures. Asked in what way the Central Bank will interfere, Al-Shibibi says “it can interfere in the monitory policy, such as raising interest rates, holding back liquidity, or raising exchange rates. It is a firm policy in order to handle the current situation.” Rahim notes that the Central Bank has reduced the interest rate to 15 per cent. Al-Shibibi confirms that it has done so, because things have improved. Asked whether this reduction took place as a result of the global economic crisis, Al-Shibibi says it is more related to the efficiency in implementing the budget by the Finance and Planning Ministries as well as the various concerned sectors. He explains that the Central Bank is against adopting strict policies, but is currently doing so until expenditures become more productive. Asked whether the removal of three digits from the Iraqi currency is a step aimed at curbing inflation, Al-Shibibi says this issue has nothing to do with inflation, but the concerned parties are taking this issue into great consideration and giving it precedence over other issues, such as the implementation of certain monetary policies and reserve investments. He adds: “We monitor the value of the Iraqi dinar vis-A-vis the US dollar, which is relatively stronger than the dinar,” noting that the digits issue is currently under serious review. Asked whether there is a timeframe for making a decision on this issue, he denies that there is, explaining that this depends on the circumstances and the exchange rate policies. Rahim notes that the Central Bank has fixed the exchange rate for the US dollar and that it is the only party that controls any increase or decrease in this rate, and he asks Al-Shibibi to confirm this. Al-Shibibi confirms that this is true, “because managing the exchange rate mainly helps in curbing inflation. The system by which we determine the exchange rate is called ‘managed float system,’ which means that the price of the dinar is kept floating but is closely monitored so that it can be managed whenever a tangible change occurs.” He adds that this floating system is linked to the supply and demand for the US dollar, explaining that the Central Bank is obliged to guarantee 100 per cent of the demands by Iraqi banks for the US dollar; otherwise, they might buy it from other local sources at a cheaper price, resulting in the presence of more than one price, which is against the bank’s current policy. Asked whether the Central Bank has sufficient amounts of foreign currency to meet the market’s demand, Al-Shibibi says that the bank is obliged to meet the demand in full, adding: “We believe that our reserves are sufficient to meet such demand.” He explains that any request for foreign currencies that takes place in the currency auction is reviewed carefully before it is approved, requiring the Central Bank to always make foreign currencies available. He notes that the Central Bank receives requests for foreign currency in amounts ranging from 150 to 200 millions daily, [currency not specified], which means that it should be able to meet this demand. He explains that exchange rate fluctuation is more dangerous than any drop in the exchange rate. http://articlesofinterest-kelley.blogspot.com/2010/10/sinan-shabibi-cbi-bank-governor-article.html

Let's follow this logic all the way through to its conclusion. You say that the 25,000 Dinar notes will be forfeited in exchange for 25 Dinar notes. Let's assume I have 40 25,000 Dinar notes (1,000,000 Dinars) and I exchange them for the new 25 Dinar notes as you suggest. I will receive 40,000 25 Dinar notes in exchange for my 40 25,000 Dinar notes. I will still have 1,000,000 Dinars. When they revalue, (we'll use 1:1 to make the math easy) I will have $1,000,000 US. What am I missing? If you are suggesting Iraq will only give me (and everyone else holding 25,000 Dinar notes) one 25 Dinar note for each 25,000 Dinar note in hand, then you are missing an important point. What about all the other notes currently in circulation? Will they hold their value while the bills with the three zeros get devalued by 1,000 percent? I think not.

Having a difficult time trying to quote the initial post. Sorry. Let's follow this logic all the way through to its conclusion. You say that the 25,000 Dinar notes will be forfeited in exchange for 25 Dinar notes. Let's assume I have 1,000,000 Dinar and I exchange them for the new 25 Dinar notes as you suggest. I will receive 40,000 25 Dinar notes in exchange for my 40 25,000 Dinar notes. I will still have 1,000,000 Dinars. When they revalue, (we'll use 1:1 to make the math easy) I will have $1,000,000 US. What am I missing? If you are suggesting Iraq will only give me (and everyone else holding 25,000 Dinar notes) one 25 Dinar note for each 25,000 Dinar note in hand, then you are missing an important point. What about all the other notes currently in circulation? Will they hold their value while the bills with the three zeros get devalued by 1,000 percent? I think not.

The main reason I am interested in whether countries and billionaires own dinar has to do with the possibility of an in-country (Iraq) RV. Iraq is far less likely to "burn" these nations if they do indeed own dinar. And billionaires would be less likely to own dinar if they believed Iraq would screw them with an in-country RV. Anyway, I have only invested as much as I can afford to lose. The guy who shared this opportunity with me encouraged me to investigate it thoroughly and throw some "mad" money at if I was comfortable with what I found. Thanks for the feedback.

Excellent point GIDad. Your probably right about the affect public knowledge would have on the rate. I will take your advice and keep reading. Thanks!

The ONLY thing stopping me from going "all in" on this investment is the total lack of evidence that countries and billionaires have actually invested in this opportunity by purchasing Iraqi Dinars. I have heard RUMORS, with not a shread of evidence, that the U.S., China, Russia, France, UK, Raymond James, Donald Trump, Goldman Sachs and Bill Gates' financial advisor all have "pallets of Dinars" in storage somewhere just waiting to cash-in. Does ANYBODY have ANY proof of this? My main concern is this. If none of these big players actually have the large denoms in their possesion, then what's stopping Iraq from having an "in-country" redenomination of the 25,000 and 5,000 dinar notes? This would shut all of us out of our big payday, yes?

The ONLY thing stopping me from going "all in" on this investment is the total lack of evidence that countries and billionaires have actually invested in this opportunity by purchasing Iraqi Dinars. I have heard RUMORS, with not a shread of evidence, that the U.S., China, Russia, France, UK, Raymond James, Donald Trump, Goldman Sachs and Bill Gates' financial advisor all have "pallets of Dinars" in storage somewhere just waiting to cash-in. Does ANYBODY have ANY proof of this? My main concern is this. If none of these big players actually have the large denoms in their possesion, then what's stopping Iraq from having an "in-country" redenomination of the 25,000 and 5,000 dinar notes? This would shut all of us out of our big payday, yes?

The article states "US $600 million [700 billion Iraqi Dinars]." The writer simply estimated the eqivalent in dinars with today's exchange rate, making this whole thread a waste of everyone's time!!!

Because there is so much chatter about a lop,it seems that electronic funds would be the way to go. Wouldn't a Warka account be a good idea in this scenario? Wouldn't this type of account protect me from a lop? Does anyone know if there are there any US banks that would allow me open an account in dinars? Thanks!