Financial expert calls for the central bank to take the necessary measures to save the Iraqi dinar exchange rate

[dontlop]

this is what ive been hoping for all along .. to use the reserves to back up a rv .. it is possible .. and it can be done .. despite what the losters say .

i can invent something and go get some orders for that roduct at a bank .. just by showing them the orders .. if walmart agreed to buy a coule million .. sears .. k mart .. ect .. and i had the signed orders any bank would loan you the money to roduce those orders ..

 

iraq has roven reserves .. they have the orders for the oil ...

 

the cbi can use that as colatteral to finance a rv .. the country of iraq can take out a loan for 100 years to ay it back .. a country doesnt have a life time to ay off debts .. a country doesnt  die of old age ..

 

but i cant as an individual take out a loan  for 100 years .. the banks know i wont live that long ..

 

a countrys  currency only is backed by its ability to ay off its external debt.. local debt doesnt count .. only dinars that are out of country need be backed ..

 

and backing it with oil is the most logical way to go for an oil roducing country ..

 

it was the external debt that destoyed the iraqi dinar .. saddams debt to gdp was 450% .. he owed way more  externally than he could ayback so his currency was  devalued to cover .. in the end he still had lots of debt most of which was forgiven .. .. the debt to gd is now sustainable and  they are ready to make a move .. theres no doubt about that

[zigmeister]

Interesting concept, isn't this how Kuwait works, the monetized their oil?

[dontlop]

i dont know .. ive been trying to get this piont out for a year or so but been constantly attacked by the lopsters ..i put out the link from the world bank many times  on how this is  a new way of  valuation of nations .. .. i believe you can find that link  off the link i posted abouve off zotas  topic .. i sent it to the cbi about 7 weeks ago and when i saw this article i was floored .. they may of read it .. ..

 

those polititions in iraq are all new to this game and still have alot to learn .. this may be something that they werent aware of ..

 

i hope they did read it and i hope they are discussing it ....or i hope it was the plan all along

 

its the only way iraq will see an overnight rv .... in my opinion

Kuwait Gulf Oil Company (KGOC) and Saudi Arabian Chevron (SAC) signed an EPC contract for the refurbishment of the Wafra Main Gather Center (MGC) at Hilton Resorts Tuesday.
The partitioned zone in Wafra, shared between Saudi Arabia and Kuwait, contains light and heavy oil production, processing, storage and shipping facilities. Oil is gathered through flow lines in Sub-Centers (SC) then processed in the Main Gathering Centre (MGC). The MGC plays a vital role as the center for collecting all the oil produced. It is then treated to separate water, gas and other impurities prior to sending it to KGOC or SAC for export or other uses. The MGC Revamp Project is aimed at replacing the old and obsolete equipments in the facility to enhance the safety of workers and prevent losses.

Project
The project has undergone several stages, the last of which is the awarding stage which was done in accordance with strict compliance with tendering procedures through Joint Operations Tendering Committee represented by both governments and both partners. Saudi Arabia has a 50% interest in the natural resources of the onshore partitioned zone. Chevron operates on its behalf through a joint operation with KGOC, which similarly operates Kuwait’s 50% interest. The event also saw the awarding of the KD 44-million project to SK E&C, estimated to be completed in 900 days. The partitioned zone where the MGC is located produces 700,000 barrels per day of fluid per day. The MGC was constructed in 1961 and upgraded once in 1997. Speaking at the event, Hashim Mustafa Al Rifaai, CEO of KGOC, said the Wafra MGC Revamp Project is a sentinel project in the Partitioned Zone of Kuwait and Saudi Arabia.

Although the project itself is focused mainly on upgrades for safety and reliability, the project also ensures our continued ability to produce the base production of this strategic asset, he added.
“For years, the Partitioned Zone has been a major asset for both our countries. The wells and surface facilities that enable the monetization of the oil and gas resources in this region are essential to the continued growth and prosperity of our two countries.” “In 1964 the first oil was produced in Wafra and over the years that production has continued to grow. Yet this is not the end. With the ability to sustain the base production, arises the opportunity to expand our production further. Large quantities of heavy oil resources still remain underground in Wafra and are waiting for the right technology and process to bring those resources to surface for the betterment of our people and countries.”

Edited May 15, 2013 by dontlop

[zigmeister]

i dont know .. ive been trying to get this iont out for a year or so but been constantly attacked by the lopsters ..i put out the link from the world bank many times  on how this is  a new way of  valuation of nations .. .. i believe you can find that link  off the link i osted abouve off zotas  topic .. i sent it to the cbi about 7 weeks ago and when i saw this article i was floored .. they may of read it .. ..

 

those polititions in iraq are all new to this game and still have alot to learn .. this may be something that they werent aware of ..

 

i hope they did read it and i hope they are discussing it ....or i hope it was the plan all along

 

its the only way iraq will see an overnight rv .... in my opinion

Kuwait Gulf Oil Company (KGOC) and Saudi Arabian Chevron (SAC) signed an EPC contract for the refurbishment of the Wafra Main Gather Center (MGC) at Hilton Resorts Tuesday.

The partitioned zone in Wafra, shared between Saudi Arabia and Kuwait, contains light and heavy oil production, processing, storage and shipping facilities. Oil is gathered through flow lines in Sub-Centers (SC) then processed in the Main Gathering Centre (MGC). The MGC plays a vital role as the center for collecting all the oil produced. It is then treated to separate water, gas and other impurities prior to sending it to KGOC or SAC for export or other uses. The MGC Revamp Project is aimed at replacing the old and obsolete equipments in the facility to enhance the safety of workers and prevent losses.

Project

The project has undergone several stages, the last of which is the awarding stage which was done in accordance with strict compliance with tendering procedures through Joint Operations Tendering Committee represented by both governments and both partners. Saudi Arabia has a 50% interest in the natural resources of the onshore partitioned zone. Chevron operates on its behalf through a joint operation with KGOC, which similarly operates Kuwait’s 50% interest. The event also saw the awarding of the KD 44-million project to SK E&C, estimated to be completed in 900 days. The partitioned zone where the MGC is located produces 700,000 barrels per day of fluid per day. The MGC was constructed in 1961 and upgraded once in 1997. Speaking at the event, Hashim Mustafa Al Rifaai, CEO of KGOC, said the Wafra MGC Revamp Project is a sentinel project in the Partitioned Zone of Kuwait and Saudi Arabia.

Although the project itself is focused mainly on upgrades for safety and reliability, the project also ensures our continued ability to produce the base production of this strategic asset, he added.

“For years, the Partitioned Zone has been a major asset for both our countries. The wells and surface facilities that enable the monetization of the oil and gas resources in this region are essential to the continued growth and prosperity of our two countries.” “In 1964 the first oil was produced in Wafra and over the years that production has continued to grow. Yet this is not the end. With the ability to sustain the base production, arises the opportunity to expand our production further. Large quantities of heavy oil resources still remain underground in Wafra and are waiting for the right technology and process to bring those resources to surface for the betterment of our people and countries.”

Good find dontlop.  I think this is on the table.  They are feeling the pressure with the failing dinar.  It is not just falling it is failing.  Monetizing just might be the ticket.  Not only that it has already been done.  

[dontlop]

ya dont need to monetize all the oil .. a couple   oil fields would help  pay on a rv  loan from the cbi .. who can just print up the money with the help of the govt of iraq .. .just print it and  decree a value  to it ..  and back up external debts with  the reserves .. but all the while they will be developing the private sector of iraq .. its just a way of getting money up front to  rebuild ..

[zigmeister]

I like your plan!  I am hoping they are considering it.

[dontlop]

i do know that its the external debt that effects the value of your currency ..and iraq is and has been experiencing  trade surplusses .. in 2011 and 2012 ,, they have had a 70 billion dollar trade surplus .. which means they are importing less than they are exporting ..a net gain of 70 billion dollars in the last two years ..

 

 a total of 155 billion dollars  since 2005 net gain for iraq

[zigmeister]

around 20 trillion dollars worth in the natural storage facilities   underground 

 

That in itself is amazing to me.

[zigmeister]

I was curious as to who this Jamiel Antonie is, I found an interesting article about him and his views.  This is an older article.

 

Baghdad - شكران the Fatlawi 

Counting an economist Iraq's participation in the Arab Conference of the Union of Arab Banks breakthrough and a good step for the development of the banking business. 

The expert said Bassem Jamil Antoine for "morning," said one of the most recommended by the Arab Conference on strengthening governance, transparency and oversight and the advancement of the banking sector, the possibilities and the international standards in force in the countries of the world, especially the Basel standards, which will be the key to the advancement of banks Iraqi and performance.

Amend the law and noted the need to review and amend the law banks, leading to the liberation from the constraints in order to be launched towards the strengthening of the capacity of the national economy and rise to the level of performance and giving banks advanced in the world and which tend open economy platform her pointing to the small number of banks where they are supposed to be for every 10 thousand people, one bank covers their activities Banking in a while Iraq remains behind in this regard as per 40 thousand people, banks and one is this ratio a major gap in the banking business, he said. ruled Antoine entry of local banks at the present time two branches of public and private to world markets because of the restrictions imposed on Iraq under Chapter VII of the Charter of the United Nations. 

weakness of the relationship between banks and the central and said: that the banks barely meet the needs of the local market to double the performance by the lack of capitalization pointing to the migration of the Iraqi capital abroad due to lack of investment opportunity profitable. 

said Antoine that local banks are still tied at home and need to restructure and develop and this is due to the lack of coordination and joint cooperation between them and the central bank in addition to weak government control over banks noting that all of this end of the movement of banks as being free client from opening credits banking directly only through banks other Arab argument, noting that banks Local has qualified professional high but it needs a banker powered and sophisticated and is equipped with the latest technologies and restructuring, as well as the strengthening of relations of banks with foreign banks and enabling them to access and strongly to markets global banking pointing to the need to work Balki card and Visa card and provided such technology via credit card without the need to carry cash, which is exposed to theft or damage and problems of counterfeit currency. 

restrictions noted Antoine that the restrictions imposed on Iraq under Chapter VII by the United Nations, made ​​the relationship with local banks with global weak except Trade Bank of Iraq, which works in partnership with the American banks as There are banks able to occupies advanced positions such as Bank of Baghdad and the North Bank in this area, pointing out that the Iraqi market for securities are the cornerstone in the trades and the real indicator of the growth and development of economic sectors, financial and banking. and stopped Antoine on the problem of the dollar and considered a setback in the banking business on the grounds that the reality of banks reflects the economic reality in every country where is the cursor is great for the economy in general need to reconsider and coordination between the banks and the central bank to define the mechanisms limiting volatility made ​​in the U.S. dollar exchange rate. specialized banks and recalled Antoine Date of Iraqi banks and how old over 80 years in the mid-twenties of the last century Kalmsrv industrial and agricultural either in the forties was established Bank of the Middle East and occupied an important position, and the Rafidain Bank, then in 1958 - 1964 became the banking business is managed properly and parallel to the economic sector and MLB needs, especially after the establishment of the specialized banks Kalmsrv agricultural and real estate and pointed out that in the year 1964 and after securing Iraqi banks hit by banks setback great included private sector industrial and commercial banking and recalling that in 1990 was the establishment of banking companies Vtasst banks civil in the forefront of the Bank of Baghdad and the Commercial Bank and Bank of the Middle East. Bank joint and concluded by saying that Iraq needs to Bank capital mixed between the public and private sector ranges from 5 to 10 billion Dolaredar mentality and think the private sector and operates according to a market economy to jump-start the Iraqi economy and to contribute to the development of the banking and real equipped with the latest equipment and is managed by the cadres of banking with expertise and high working modern techniques Kalki card and Visa card to reduce of carrying cash, risks and this is contained in Article 25 of the Iraqi law.

 

http://www.iraqenergy.org/news/?detailof=5782&content=-Iraq-Witnesses-Increased-Economic-Growth-Rates

[zigmeister]

After further research the gentleman is one of the people who was against the deletion of zero's plan, the RD.  Apparently he has some clout.

[dontlop]

that was pretty interesting zig ..i wonder if since the oil is  nationalized .. if they could or would sell oil bonds to the open market ..world wide .. i wonder if countrys would buy up those bonds ..like china ..or the us .. ..say they paid 6or 4%  interest .. china always seems to be looking for a place to park some currency ..  the 3 trillion sitting in the fed  at 1/4% may want to move  also ....just like that iraq would have a pile of cash for investing in iraq .

[keepmwlknfny]

Im not even saying that Iraq will or wont RD......lol I dont know what they will do......thats why Im here....I was just stating the fact that Shabibi and his administration at the CBI, had plans on the table (deleting the zeros) to lop the dinar.....

[zigmeister]

I would say that is exactly what is being discussed and may already have been agreed upon.  Imo, what has happened the deletion of zero's was put on hold because more than likely it would not work.  It had some flaws, not only the money laundering, counterfeiting but also a big possibility that Iraqi's would still opt for the dollar.  The redomination of the dinar had more chances of failing than succeeding.  So how do they bring the value of the dinar up without draining Iraq?  This is one way perhaps.

 

One thing I am curious of is why the M1 is still growing?  It seems to me Iraq is already dollarized, rare is the Iraqi who holds dinar.  When they do receive dinar they turn to the money changers and get dollars.  When dinar is replaced are they destroying the old tattered dinars?  Are they keeping them on the books?  Are they printing more dinar?  Are they printing more dinar and selling it to other countries who sell it to people like us?

 

I am no economist and hardly understand the mechanics of what has been suggested by this gentleman.  I do think he has Turki's ear.  I do think they are setting things in place as quickly as they can because they have a real problem here.  The kettle is on the stove and it is heating up.

Im not even saying that Iraq will or wont RD......lol I dont know what they will do......thats why Im here....I was just stating the fact that Shabibi and his administration at the CBI, had plans on the table (deleting the zeros) to lop the dinar.....

 

 

Im not even saying that Iraq will or wont RD......lol I dont know what they will do......thats why Im here....I was just stating the fact that Shabibi and his administration at the CBI, had plans on the table (deleting the zeros) to lop the dinar.....

It is how it began looking to me as well Keep.  What I think happened that pulled the RD off the table, was government instability, counterfeiting and money laundering.  But most likely the realization the Iraqi's would still want the dollar, and not the new IQD.  It has happened in other countries and finally they gave up on RD'ing and then doing it again.  I wish I could remember what country it was, but they initially took on the dollar as their currency because the people would not let go of them.

[SocalDinar]

Still have to wonder why the Shabs stopped the dinar on its obvious upward path at 1170 back in Jan 2009.

 

Shabs quote " Revaluation depends on inflation "

 

 

 

Thanks Yota!

[dontlop]

stand by agreement with imf ? called for dinars to be  exchanged at a program rate  under a stablized arrangement ?

iraq uses a program rate .... to exchange dinars for dollars

II. DEFINITIONS
3. For purposes of monitoring under the program, a program exchange rate will be
used. This program exchange rate will be set at ID 1,170 per U.S. dollar. The program
exchange rate will be used to convert into Iraqi dinars the U.S. dollar value of all CBI foreign
assets and liabilities denominated in U.S. dollars, as required. For CBI assets and liabilities
denominated in SDRs and in foreign currencies other than the U.S. dollar, they will be
converted in U.S. dollars at their respective SDR-exchange rates prevailing as of
December 31, 2010, as published on the IMF’s website.

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-7#ixzz2TPFY3jAw

IX. Exchange rate arrangement:
The Central Bank of Iraq has been conducting foreign exchange auction on a daily basis
since October 4, 2003. The central bank followed a policy of exchange rate stability which
has translated in a de facto peg of the exchange rate since early 2004. However, from
November 2006 until end 2008, the CBI allowed the exchange rate to gradually appreciate.
As a result, the exchange rate arrangement of Iraq was reclassified to the category of
crawling peg effective November 1, 2006. Since the start of 2009, the CBI returned to its
earlier policy of maintaining a stable dinar. Consequently, the exchange rate arrangement of
Iraq was reclassified effective January 1 2009 as a stabilized arrangement.

Read more: http://dinarvets.com/forums/index.php?/topic/92667-iqd-backing/page-7#ixzz2TPG298GY

[dontlop]

the last two imf stand by arrangements with iraq and imf .. the imf issued their findings 3 months after agreement ended... the last one ended feb 28 2013 .. so the 28th of may is 3 months .. im looking for imf report  coming up in the next 2  or 3 weeks ..

 

the last extension of the standby agreement had to do with the exchange regime ..

 

it should be interesting to see whats going on ..im on the e-mailing list from the imf with iraqi reports .. .. but i still look every day ..

[SnowGlobe7]

Im not even saying that Iraq will or wont RD......lol I dont know what they will do......thats why Im here....I was just stating the fact that Shabibi and his administration at the CBI, had plans on the table (deleting the zeros) to lop the dinar.....

 

Keep...what do you feel is the current administrations plan? and Why do you think that?

[blueskyline]

this is what ive been hoping for all along .. to use the reserves to back up a rv .. it is possible .. and it can be done .. despite what the losters say .

i can invent something and go get some orders for that roduct at a bank .. just by showing them the orders .. if walmart agreed to buy a coule million .. sears .. k mart .. ect .. and i had the signed orders any bank would loan you the money to roduce those orders ..

 

iraq has roven reserves .. they have the orders for the oil ...

 

the cbi can use that as colatteral to finance a rv .. the country of iraq can take out a loan for 100 years to ay it back .. a country doesnt have a life time to ay off debts .. a country doesnt  die of old age ..

 

but i cant as an individual take out a loan  for 100 years .. the banks know i wont live that long ..

 

a countrys  currency only is backed by its ability to ay off its external debt.. local debt doesnt count .. only dinars that are out of country need be backed ..

 

and backing it with oil is the most logical way to go for an oil roducing country ..

 

it was the external debt that destoyed the iraqi dinar .. saddams debt to gdp was 450% .. he owed way more  externally than he could ayback so his currency was  devalued to cover .. in the end he still had lots of debt most of which was forgiven .. .. the debt to gd is now sustainable and  they are ready to make a move .. theres no doubt about that

Its How Kuwait backs things ........

[keepmwlknfny]

Keep...what do you feel is the current administrations plan? and Why do you think that?

I dont know....I mean they still talk about deleting the zeros so it seems that plan.has carried on regardless of Shabibi not being there....but it seems the biggest issue is the stability which is why there is opposition. They are worried about counterfeiting as well....

[Cherysh]

I've not miss a Thing...Keep.. just waiting and hanging out on this POP.. If you got some Dinar let's do a Little wager if RD you get mine...If RV I get yours....What you say...you in...

WOW..... lol

[Darin]

That could be an interesting concept or idea. Finance the appreciation of the value of the dinar based upon the thought and prediction that the barrels of oil are only going to be worth more in the future than it is today.

Therefore, why not get some funds to boost the economy and let the future appreciation of the value of crude pay the debt.

 

If you think about.... Lets say you knew you had something that was going to very very likely be worth more in the future in value than it is today... A great example, is land near a vastly growing city that may wish to acquire that land for more than its present day worth in the future. You have the ability to get a loan for a prediction of the future value and pay very low interest along with low value payments. Would you not take that chance?

Think of it like if you were a business... It would be a great way to have some capital to maybe build new stores, hire more employees when/if needed, improve present facilities, etc. etc.

[coorslite21]

Kind of an interesting thread.......I don't usually agree with quez or Keep......however......my opinion is that Shabs was headed for a LOP.......and he was headed there because it was in the best interest of Iraq to do that........he was removed by the world powers because of that...........this is just my opinion based on being invested since 2007.......and having some very knowledgeable people pointing me in that direction........With Shabs out of the mix......I expect about a 1-1 exchange....JMO..

[dontlop]

That could be an interesting concept or idea. Finance the appreciation of the value of the dinar based upon the thought and prediction that the barrels of oil are only going to be worth more in the future than it is today.

Therefore, why not get some funds to boost the economy and let the future appreciation of the value of crude pay the debt.

 

If you think about.... Lets say you knew you had something that was going to very very likely be worth more in the future in value than it is today... A great example, is land near a vastly growing city that may wish to acquire that land for more than its present day worth in the future. You have the ability to get a loan for a prediction of the future value and pay very low interest along with low value payments. Would you not take that chance?

Think of it like if you were a business... It would be a great way to have some capital to maybe build new stores, hire more employees when/if needed, improve present facilities, etc. etc.

they could finance it at half its value and the rest could be profit .. they could finance the dinar based at 50 dollars a barrel .. anything over that would just be  extra reserves

[rken]

I would suspect that the dinar exchange rate to the dollars is being kept low during the removal of the large bills, as a means of paying less for the large bills in circulation. Dollarizing the country on the cheap. Don't worry when they get as much of the large denoms off the street as they want to, we will see an RV. Our holding will not effect the reserves or the cost of activating an RV because the dinar we hold will be held by the US government as reserves and for purchasing oil at $36 a barrel.  Can you say windfall profits. The Gov wins both ways. Increased dinar value and oil on the cheap. lol What a racket. 

[rken]

Hmm,  I don't see my last post, does that mean it wasn't approved.  So as you can see I am not a crack pot, shill or a troll, I have been a holder of dinar longer that most have even been aware of it. So please stop with this restriction stuff. Revbo can vouch for me and the thread I have started on GLP . Now over 66 pages. Or perhaps I can just go some place else. Its really up to you. But I  don't want to continue in this fashion on this board. Your choice. I have made mine. thanks for being a place where Dinar tards as we are called at GLP can come and discuss all things dinar without being hassled. 

Best regards